Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Nov. 19, 2014 | Mar. 31, 2014 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Sep-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'CBT | ' | ' |
Entity Registrant Name | 'CABOT CORP | ' | ' |
Entity Central Index Key | '0000016040 | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 64,047,874 | ' |
Entity Public Float | ' | ' | $3,774,867,798 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' |
Net sales and other operating revenues | $3,647 | $3,456 | $3,291 |
Cost of sales | 2,926 | 2,823 | 2,647 |
Gross profit | 721 | 633 | 644 |
Selling and administrative expenses | 326 | 297 | 281 |
Research and technical expenses | 60 | 68 | 72 |
Income from operations | 335 | 268 | 291 |
Interest and dividend income | 3 | 5 | 4 |
Interest expense | -55 | -62 | -46 |
Other income (expense) | 25 | -1 | -3 |
Income from continuing operations before income taxes and equity in (loss) earnings of affiliated companies | 308 | 210 | 246 |
Provision for income taxes | -92 | -60 | -55 |
Equity in earnings of affiliated companies, net of tax | ' | 11 | 11 |
Income from continuing operations | 216 | 161 | 202 |
Income (loss) from discontinued operations, net of tax of $2, $(6) and $116 | 2 | -1 | 204 |
Net income | 218 | 160 | 406 |
Net income attributable to noncontrolling interests, net of tax of $5, $5 and $7 | 19 | 7 | 18 |
Net income attributable to Cabot Corporation | $199 | $153 | $388 |
Weighted-average common shares outstanding, in millions: | ' | ' | ' |
Basic | 64.4 | 63.8 | 63.4 |
Diluted | 65.1 | 64.5 | 64.2 |
Basic: | ' | ' | ' |
Income from continuing operations attributable to Cabot Corporation | $3.04 | $2.39 | $2.88 |
Income (loss) from discontinued operations | $0.02 | ($0.01) | $3.19 |
Net income attributable to Cabot Corporation | $3.06 | $2.38 | $6.07 |
Diluted: | ' | ' | ' |
Income from continuing operations attributable to Cabot Corporation | $3.01 | $2.37 | $2.84 |
Income (loss) from discontinued operations | $0.02 | ($0.01) | $3.15 |
Net income attributable to Cabot Corporation | $3.03 | $2.36 | $5.99 |
Dividends per common share | $0.84 | $0.80 | $0.76 |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' |
Income (loss) from discontinued operations, tax amount | $2 | ($6) | $116 |
Net income attributable to noncontrolling interests, tax amount | $5 | $5 | $7 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' |
Net income | $218 | $160 | $406 |
Other comprehensive (loss) income, net of tax | ' | ' | ' |
Foreign currency translation adjustment (net of tax (benefit) provision of $(10), $(12), $2) | -131 | -10 | 3 |
Unrealized holding gains (losses) arising during the period (net of tax provision of $-, $1, $-) | 0 | 2 | -1 |
Pension and other postretirement benefit liability adjustments | ' | ' | ' |
Pension and other postretirement benefit liability adjustments arising during the period (net of tax (benefit) provision of $(1), $13, $(9)) | -40 | 20 | -18 |
Amortization of net loss and prior service credit included in net periodic pension cost (net of tax provision of $-, $-, $-) | 0 | 2 | 1 |
Other comprehensive (loss) income | -171 | 14 | -15 |
Comprehensive income | 47 | 174 | 391 |
Net income attributable to noncontrolling interests, (net of tax provision of $5, $5, $7) | 19 | 7 | 18 |
Noncontrolling interests foreign currency translation adjustment | -4 | 3 | -1 |
Comprehensive income attributable to noncontrolling interests | 15 | 10 | 17 |
Comprehensive income attributable to Cabot Corporation | $32 | $164 | $374 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' |
Foreign currency translation adjustment, tax provision (benefit) | ($10) | ($12) | $2 |
Unrealized holding gains (losses) arising during the period, tax provision | 0 | 1 | 0 |
Pension and other postretirement benefit liability adjustments arising during the period, tax provision (benefit) | -1 | 13 | -9 |
Amortization of net loss and prior service credit included in net periodic pension cost, tax provision | 0 | 0 | 0 |
Net income attributable to noncontrolling interests, tax provision | $5 | $5 | $7 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $67 | $95 |
Accounts and notes receivable, net of reserve for doubtful accounts of $7 and $8 | 688 | 633 |
Inventories | 498 | 455 |
Prepaid expenses and other current assets | 69 | 58 |
Notes receivable from sale of business | 0 | 214 |
Deferred income taxes | 42 | 36 |
Current assets held for sale | 0 | 4 |
Total current assets | 1,364 | 1,495 |
Property, plant and equipment | 3,710 | 3,663 |
Accumulated depreciation | -2,129 | -2,063 |
Net property, plant and equipment | 1,581 | 1,600 |
Goodwill | 536 | 502 |
Equity affiliates | 68 | 119 |
Intangible assets, net | 347 | 308 |
Assets held for rent | 56 | 49 |
Deferred income taxes | 80 | 68 |
Other assets | 52 | 83 |
Noncurrent assets held for sale | 0 | 9 |
Total assets | 4,084 | 4,233 |
Current liabilities: | ' | ' |
Notes payable | 44 | 264 |
Accounts payable and accrued liabilities | 512 | 534 |
Income taxes payable | 49 | 30 |
Deferred income taxes | 1 | 2 |
Current portion of long-term debt | 24 | 14 |
Total current liabilities | 630 | 844 |
Long-term debt | 1,004 | 1,020 |
Deferred income taxes | 68 | 21 |
Other liabilities | 291 | 265 |
Redeemable Preferred Stock | 27 | 0 |
Commitments and contingencies (Note S) | ' | ' |
Preferred stock: | ' | ' |
Authorized: 2,000,000 shares of $1 par value Issued and Outstanding: None and none | ' | ' |
Common stock: | ' | ' |
Authorized: 200,000,000 shares of $1 par value Issued: 64,634,731 and 64,223,985 shares Outstanding: 64,382,366 and 63,970,502 shares | 64 | 64 |
Less cost of 252,365 and 253,483 shares of common treasury stock | -7 | -8 |
Additional paid-in capital | 49 | 39 |
Retained earnings | 1,900 | 1,755 |
Deferred employee benefits | ' | -2 |
Accumulated other comprehensive (loss) income | -64 | 103 |
Total Cabot Corporation stockholders' equity | 1,942 | 1,951 |
Noncontrolling interests | 122 | 132 |
Total stockholders' equity | 2,064 | 2,083 |
Total liabilities and stockholders' equity | $4,084 | $4,233 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts and notes receivable, reserve for doubtful accounts | $7 | $8 |
Preferred stock, authorized shares | 2,000,000 | 2,000,000 |
Preferred stock, par value | $1 | $1 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, authorized shares | 200,000,000 | 200,000,000 |
Common stock, par value | $1 | $1 |
Common stock, issued shares | 64,634,731 | 64,223,985 |
Common stock, outstanding shares | 64,382,366 | 63,970,502 |
Common treasury stock, shares | 252,365 | 253,483 |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Flows from Operating Activities: | ' | ' | ' |
Net income | $218 | $160 | $406 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 201 | 190 | 154 |
Impairment of assets | 4 | 16 | 2 |
Deferred tax provision (benefit) | 8 | -9 | -6 |
Gain on existing investment in NHUMO | -29 | ' | ' |
Gain on sale of business | -4 | ' | -191 |
Equity in earnings of affiliated companies | ' | -11 | -11 |
Non-cash compensation | 14 | 16 | 18 |
Other, net | 18 | 2 | 4 |
Changes in assets and liabilities: | ' | ' | ' |
Accounts and notes receivable | -54 | 34 | 6 |
Inventories | -56 | 64 | -30 |
Prepaid expenses and other assets | 2 | 5 | 26 |
Accounts payable and accrued liabilities | -29 | -18 | 100 |
Income taxes payable | 15 | -29 | -13 |
Other liabilities | -14 | -11 | -38 |
Cash dividends received from equity affiliates | 25 | 8 | 6 |
Other | -4 | 2 | -18 |
Cash provided by operating activities | 315 | 419 | 415 |
Cash Flows from Investing Activities: | ' | ' | ' |
Additions to property, plant and equipment | -171 | -264 | -281 |
Proceeds from sale of business | 20 | ' | 181 |
Receipts from notes receivable from sale of business | 215 | 39 | 23 |
Acquisition of business, net of cash acquired | -73 | ' | -1,104 |
Proceeds from sales of property, plant and equipment | ' | ' | 2 |
Change in assets held for rent | -7 | -2 | -1 |
Cash used in investing activities | -16 | -227 | -1,180 |
Cash Flows from Financing Activities: | ' | ' | ' |
Borrowings under financing arrangements | 13 | 6 | 84 |
Repayments under financing arrangements | -17 | -33 | -88 |
(Repayment) Proceeds from issuance of commercial paper, net | -211 | 241 | ' |
Proceeds from long-term debt, net of issuance costs | 17 | 117 | 911 |
Repayments of long-term debt | -23 | -442 | -172 |
Decrease in notes payable, net | -4 | -12 | -42 |
Settlement of derivatives | ' | -31 | ' |
Proceeds from cash contributions received from noncontrolling stockholders | ' | 13 | 4 |
Purchases of common stock | -18 | -6 | -36 |
Proceeds from sales of common stock | 14 | 9 | 10 |
Cash dividends paid to noncontrolling interests | -19 | -17 | -16 |
Cash dividends paid to common stockholders | -54 | -51 | -49 |
Cash (used in) provided by financing activities | -302 | -206 | 606 |
Effect of exchange rate changes on cash | -25 | -11 | -7 |
Decrease in cash and cash equivalents | -28 | -25 | -166 |
Cash and cash equivalents at beginning of year | 95 | 120 | 286 |
Cash and cash equivalents at end of year | 67 | 95 | 120 |
Income taxes paid | 53 | 84 | 73 |
Interest paid | 47 | 51 | 39 |
Non-cash additions to property, plant and equipment | ' | ' | $4 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Stockholders' Equity (USD $) | Total | Common Stock, Net of Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Deferred Employee Benefits [Member] | Accumulated Other Comprehensive Income [Member] | Total Cabot Corporation Stockholders' Equity [Member] | Non-Controlling Interests [Member] |
In Millions, except Share data in Thousands | ||||||||
Beginning Balance at Sep. 30, 2011 | $1,616 | $63 | $18 | $1,314 | ($14) | $106 | $1,487 | $129 |
Beginning Balance, Shares at Sep. 30, 2011 | ' | 63,861 | ' | ' | ' | ' | ' | ' |
Net income attributable to Cabot Corporation | 388 | ' | ' | 388 | ' | ' | 388 | ' |
Net Income attributable to non-controlling interests | 18 | ' | ' | ' | ' | ' | ' | 18 |
Total other comprehensive income (loss) | -15 | ' | ' | ' | ' | -14 | -14 | -1 |
Noncontrolling interest-other | 4 | ' | ' | ' | ' | ' | ' | 4 |
Noncontrolling interest-dividends | -24 | ' | ' | ' | ' | ' | ' | -24 |
Cash dividends paid to common stockholders | -49 | ' | ' | -49 | ' | ' | -49 | ' |
Issuance of stock under employee compensation plans | 15 | 2 | 13 | ' | ' | ' | 15 | ' |
Issuance of stock under employee compensation plans, Shares | ' | 611 | ' | ' | ' | ' | ' | ' |
Amortization of share-based compensation | 15 | ' | 15 | ' | ' | ' | 15 | ' |
Purchase and retirement of common and treasury stock | -36 | -9 | -27 | ' | ' | ' | -36 | ' |
Purchase and retirement of common and treasury stock, Shares | ' | -1,124 | ' | ' | ' | ' | ' | ' |
Principal payment by Employee Stock Ownership Plan under guaranteed loan | 6 | ' | ' | ' | 6 | ' | 6 | ' |
Notes receivable for restricted stock-payments | 1 | ' | 1 | ' | ' | ' | 1 | ' |
Ending Balance at Sep. 30, 2012 | 1,939 | 56 | 20 | 1,653 | -8 | 92 | 1,813 | 126 |
Ending Balance, Shares at Sep. 30, 2012 | ' | 63,348 | ' | ' | ' | ' | ' | ' |
Net income attributable to Cabot Corporation | 153 | ' | ' | 153 | ' | ' | 153 | ' |
Net Income attributable to non-controlling interests | 7 | ' | ' | ' | ' | ' | ' | 7 |
Total other comprehensive income (loss) | 14 | ' | ' | ' | ' | 11 | 11 | 3 |
Contribution from noncontrolling interests | 13 | ' | ' | ' | ' | ' | ' | 13 |
Noncontrolling interest-dividends | -17 | ' | ' | ' | ' | ' | ' | -17 |
Cash dividends paid to common stockholders | -51 | ' | ' | -51 | ' | ' | -51 | ' |
Issuance of stock under employee compensation plans | 12 | ' | 12 | ' | ' | ' | 12 | ' |
Issuance of stock under employee compensation plans, Shares | ' | 784 | ' | ' | ' | ' | ' | ' |
Amortization of share-based compensation | 13 | ' | 13 | ' | ' | ' | 13 | ' |
Purchase and retirement of common and treasury stock | -6 | ' | -6 | ' | ' | ' | -6 | ' |
Purchase and retirement of common and treasury stock, Shares | ' | -161 | ' | ' | ' | ' | ' | ' |
Principal payment by Employee Stock Ownership Plan under guaranteed loan | 6 | ' | ' | ' | 6 | ' | 6 | ' |
Ending Balance at Sep. 30, 2013 | 2,083 | 56 | 39 | 1,755 | -2 | 103 | 1,951 | 132 |
Ending Balance, Shares at Sep. 30, 2013 | ' | 63,971 | ' | ' | ' | ' | ' | ' |
Net income attributable to Cabot Corporation | 199 | ' | ' | 199 | ' | ' | 199 | ' |
Net Income attributable to non-controlling interests | 19 | ' | ' | ' | ' | ' | ' | 19 |
Total other comprehensive income (loss) | -171 | ' | ' | ' | ' | -167 | -167 | -4 |
Noncontrolling interest-other | -1 | ' | ' | ' | ' | ' | ' | -1 |
Noncontrolling interest-dividends | -24 | ' | ' | ' | ' | ' | ' | -24 |
Cash dividends paid to common stockholders | -54 | ' | ' | -54 | ' | ' | -54 | ' |
Issuance of stock under employee compensation plans | 14 | 1 | 13 | ' | ' | ' | 14 | ' |
Issuance of stock under employee compensation plans, Shares | ' | 758 | ' | ' | ' | ' | ' | ' |
Amortization of share-based compensation | 14 | ' | 14 | ' | ' | ' | 14 | ' |
Purchase and retirement of common and treasury stock | -17 | ' | -17 | ' | ' | ' | -17 | ' |
Purchase and retirement of common and treasury stock, Shares | ' | -346 | ' | ' | ' | ' | ' | ' |
Principal payment by Employee Stock Ownership Plan under guaranteed loan | 2 | ' | ' | ' | 2 | ' | 2 | ' |
Ending Balance at Sep. 30, 2014 | $2,064 | $57 | $49 | $1,900 | ' | ($64) | $1,942 | $122 |
Ending Balance, Shares at Sep. 30, 2014 | ' | 64,383 | ' | ' | ' | ' | ' | ' |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Significant Accounting Policies | ' | ||||||||||||
Note A. Significant Accounting Policies | |||||||||||||
The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States. The significant accounting policies of Cabot Corporation (“Cabot” or “the Company”) are described below. | |||||||||||||
In January 2012, the Company completed the sale of its Supermetals business and in July 2014, the Company completed the sale of its Security Materials business. The results of these businesses for all periods presented are reflected as discontinued operations in the Consolidated Statements of Operations. | |||||||||||||
In July 2012, the Company completed the acquisition of Norit N.V. (“Purification Solutions”). The financial position, results of operations and cash flows of Purification Solutions are included in the Consolidated Financial Statements from the date of acquisition. | |||||||||||||
In November 2013, the Company purchased all of Grupo Kuo S.A.B. de C.V.’s (“KUO”) common stock in NHUMO, S.A. de C.V. (“NHUMO”), a carbon black joint venture between the Company and KUO in Mexico, which represented approximately 60% of the outstanding common stock of NHUMO (the “NHUMO transaction”). Prior to this transaction, the Company owned approximately 40% of the outstanding common stock of NHUMO, and the NHUMO entity was accounted for as an equity affiliate of the Company. The financial position, results of operations and cash flows of NHUMO are included in the Company’s consolidated financial statements from the date of acquisition. | |||||||||||||
Unless otherwise indicated, all disclosures and amounts in the Notes to Consolidated Financial Statements relate to the Company’s continuing operations. | |||||||||||||
Principles of Consolidation | |||||||||||||
The consolidated financial statements include the accounts of Cabot and its wholly-owned subsidiaries and majority-owned and controlled U.S. and non-U.S. subsidiaries. Additionally, Cabot considers consolidation of entities over which control is achieved through means other than voting rights, of which there were none in the periods presented. Intercompany transactions have been eliminated in consolidation. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
Cash equivalents include all highly liquid investments with a maturity of three months or less at date of acquisition. Cabot continually assesses the liquidity of cash equivalents and, as of September 30, 2014, has determined that they are readily convertible to cash. | |||||||||||||
Inventories | |||||||||||||
Inventories are stated at the lower of cost or market. The cost of all carbon black inventories in the U.S. is determined using the last-in, first-out (“LIFO”) method. The cost of Specialty Fluids inventories, which are classified as assets held for rent, is determined using the average cost method. The cost of other U.S. and non-U.S. inventories is determined using the first-in, first-out (“FIFO”) method. | |||||||||||||
Cabot reviews inventory for both potential obsolescence and potential declines in anticipated selling prices. In this review, the Company makes assumptions about the future demand for and market value of the inventory, and based on these assumptions estimates the amount of any obsolete, unmarketable, slow moving, or overvalued inventory. Cabot writes down the value of these inventories by an amount equal to the difference between the cost of the inventory and its estimated market value. | |||||||||||||
Investments | |||||||||||||
The Company has investments in equity affiliates and marketable securities. As circumstances warrant, all investments are subject to periodic impairment reviews. Unless consolidation is required, investments in equity affiliates, where Cabot generally owns between 20% and 50% of the affiliate, are accounted for using the equity method. Cabot records its share of the equity affiliate’s results of operations based on its percentage of ownership of the affiliate. Dividends declared from equity affiliates are a return on investment and are recorded as a reduction to the equity investment value. At September 30, 2014 and 2013, Cabot had equity affiliate investments of $68 million and $119 million, respectively. Dividends declared and received from these investments were $25 million, $8 million and $6 million in fiscal 2014, 2013 and 2012, respectively. | |||||||||||||
All investments in marketable securities are classified as available-for-sale and are recorded at fair value with the corresponding unrealized holding gains or losses, net of taxes, recorded as a separate component of Other comprehensive income (loss) within stockholders’ equity. Unrealized losses that are determined to be other-than-temporary, based on current and expected market conditions, are recognized in earnings. The fair value of marketable securities is determined based on quoted market prices at the balance sheet dates. The cost of marketable securities sold is determined by the specific identification method. The Company’s investment in marketable securities was immaterial as of both September 30, 2014 and 2013. | |||||||||||||
Property, Plant and Equipment | |||||||||||||
Property, plant and equipment are recorded at cost. Depreciation of property, plant and equipment is calculated using the straight-line method over the estimated useful lives. The depreciable lives for buildings, machinery and equipment, and other fixed assets are twenty to twenty-five years, ten to twenty-five years, and three to twenty-five years, respectively. The cost and accumulated depreciation for property, plant and equipment sold, retired, or otherwise disposed of are removed from the Consolidated Balance Sheets and resulting gains or losses are included in earnings in the Consolidated Statements of Operations. Expenditures for repairs and maintenance are charged to expenses as incurred. Expenditures for major renewals and betterments, which significantly extend the useful lives of existing plant and equipment, are capitalized and depreciated. | |||||||||||||
Cabot capitalizes interest costs when they are part of the historical cost of acquiring and constructing certain assets that require a period of time to prepare for their intended use. During fiscal 2014, 2013 and 2012, Cabot capitalized $3 million, $5 million and $4 million of interest costs, respectively. These amounts will be amortized over the lives of the related assets. | |||||||||||||
Intangible Assets and Goodwill | |||||||||||||
The Company records tangible and intangible assets acquired and liabilities assumed in business combinations under the acquisition method of accounting. Amounts paid for an acquisition are allocated to the assets acquired and liabilities assumed based on their fair values at the date of acquisition. Goodwill is comprised of the purchase price of business acquisitions in excess of the fair value assigned to the net tangible and identifiable intangible assets acquired. Goodwill is not amortized, but is reviewed for impairment annually as of May 31, or when events or changes in the business environment indicate that the carrying value of the reporting unit may exceed its fair value. A reporting unit, for the purpose of the impairment test, is at or below the operating segment level, and constitutes a business for which discrete financial information is available and regularly reviewed by segment management. The separate businesses included within Performance Materials are considered separate reporting units. The goodwill balance relative to this segment is recorded in the Fumed Metal Oxides reporting unit within Performance Materials. | |||||||||||||
For the purpose of the goodwill impairment test, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If an initial qualitative assessment identifies that it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value, an additional quantitative evaluation is performed under the two-step impairment test. Alternatively, the Company may elect to proceed directly to the quantitative goodwill impairment test. If based on the quantitative evaluation the fair value of the reporting unit is less than its carrying amount, the Company performs an analysis of the fair value of all assets and liabilities of the reporting unit. If the implied fair value of the reporting unit’s goodwill is determined to be less than its carrying amount, an impairment is recognized for the difference. The fair value of a reporting unit is based on discounted estimated future cash flows. The fair value is also benchmarked against a market approach using the guideline public companies method. The assumptions used to estimate fair value include management’s best estimates of future growth rates, operating cash flows, capital expenditures and discount rates over an estimate of the remaining operating period at the reporting unit level. Should the fair value of any of the Company’s reporting units decline because of reduced operating performance, market declines, changes in the discount rate, or other indicators of impairment, charges for impairment may be necessary. Based on the Company’s most recent annual goodwill impairment test performed as of May 31, 2014, the fair values of the Reinforcement Materials and Fumed Metal Oxides reporting units were substantially in excess of their carrying values. The fair value of the Purification Solutions reporting unit exceeded its carrying value by approximately 9%. At September 30, 2014, the Purification Solutions reporting unit had the most significant goodwill balance, in the amount of $458 million. The future growth in the Purification Solutions business is highly dependent on achieving the expected volumes and margins in the activated carbon based mercury removal business. These volumes and margins are highly dependent on demand for mercury removal products and the Company’s successful realization of its anticipated share of volumes in this segment over the next 3 years. The demand for mercury removal products significantly depends on: (1) the implementation and enforcement of environmental laws and regulations, particularly those that would require U.S. based coal fired electrical utilities to reduce the quantity of air pollutants they release, including mercury, to comply with the Mercury and Air Toxics Standards that become effective beginning in April 2015 and (2) other factors such as the anticipated usage of activated carbon in the coal fired energy units. Recently, the U.S. Supreme Court agreed to consider whether the EPA appropriately considered costs in determining whether it is necessary and appropriate to regulate hazardous air pollutants emitted by electric utilities. It is not possible to predict the outcome of the Supreme Court’s review of this matter. | |||||||||||||
The Company uses assumptions and estimates in determining the fair value of assets acquired and liabilities assumed in a business combination. The determination of the fair value of intangible assets requires the use of significant judgment with regard to assumptions used in the valuation model. The Company estimates the fair value of identifiable acquisition-related intangible assets principally based on projections of cash flows that will arise from these assets. The projected cash flows are discounted to determine the fair value of the assets at the dates of acquisition. | |||||||||||||
Definite-lived intangible assets, which are comprised of customer relationships and developed technologies, are amortized over their estimated useful lives and are reviewed for impairment when indication of potential impairment exists, such as a significant reduction in cash flows associated with the assets. The Company evaluates indefinite-lived intangible assets, which are comprised of the trademarks of Purification Solutions, for impairment annually or when events occur or circumstances change that may reduce the fair value of the asset below its carrying amount. The annual review is performed as of May 31. The Company may first perform a qualitative assessment to determine whether it is necessary to perform the quantitative impairment test or bypass the qualitative assessment and proceed directly to performing the quantitative impairment test. The quantitative impairment test is based on discounted estimated future cash flows. The assumptions used to estimate fair value include management’s best estimates of future growth rates and discount rates over an estimate of the remaining operating period at the unit of accounting level. These future growth rates depend on achieving the expected volumes and pricing levels of the products of Purification Solutions. | |||||||||||||
Assets Held for Rent | |||||||||||||
Assets held for rent represent Specialty Fluids cesium formate product that is available to customers in the normal course of business. Assets held for rent are stated at average cost. | |||||||||||||
Asset Retirement Obligations | |||||||||||||
Cabot estimates incremental costs for special handling, removal and disposal of materials that may or will give rise to conditional asset retirement obligations (“ARO”) and then discounts the expected costs back to the current year using a credit adjusted risk free rate. Cabot recognizes ARO liabilities and costs when the timing and/or settlement can be reasonably estimated. The ARO reserves were $15 million and $16 million at September 30, 2014 and 2013, respectively. | |||||||||||||
Impairment of Long-Lived Assets | |||||||||||||
Cabot’s long-lived assets primarily include property, plant and equipment, long-term investments, and assets held for rent and sale. The carrying values of long-lived assets are reviewed for impairment whenever events or changes in business circumstances indicate that the carrying amount of an asset may not be recoverable. To test for impairment of assets we generally use a probability-weighted estimate of the future undiscounted net cash flows of the assets over their remaining lives to determine if the value of the asset is recoverable. Long-lived assets are grouped with other assets and liabilities at the lowest level for which independent identifiable cash flows are determinable. Cabot’s estimates reflect management’s assumptions about selling prices, production and sales volumes, costs and market conditions over an estimate of the remaining operating period. If an impairment is indicated, the asset is written down to fair value. If the asset does not have a readily determinable market value, a discounted cash flow model may be used to determine the fair value of the asset. The key inputs to the discounted cash flow would be the same as the undiscounted cash flow noted above, with the addition of the discount rate used. In circumstances when an asset does not have separate identifiable cash flows, an impairment charge is recorded when Cabot no longer intends to use the asset. | |||||||||||||
Foreign Currency Translation | |||||||||||||
The functional currency of the majority of Cabot’s foreign subsidiaries is the local currency in which the subsidiary operates. Assets and liabilities of foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at the balance sheet dates. Income and expense items are translated at average monthly exchange rates during the year. Unrealized currency translation adjustments are included as a separate component of Accumulated other comprehensive (loss) income within stockholders’ equity. | |||||||||||||
Realized and unrealized foreign currency gains and losses arising from transactions denominated in currencies other than the subsidiary’s functional currency are reflected in earnings with the exception of (i) intercompany transactions considered to be of a long-term investment nature; and (ii) foreign currency borrowings designated as net investment hedges. Gains or losses arising from these transactions are included as a component of other comprehensive income. In fiscal 2014, 2013 and 2012, net foreign currency transaction losses of $2 million, gains of $2 million, and losses of $2 million, respectively, are included in Other income (expense) in the Consolidated Statements of Operations as part of continuing operations. | |||||||||||||
Financial Instruments | |||||||||||||
Cabot’s financial instruments consist primarily of cash and cash equivalents, accounts and notes receivable, investments, notes receivable from the sale of a business, accounts payable and accrued liabilities, short-term and long-term debt, and derivative instruments. The carrying values of Cabot’s financial instruments approximate fair value with the exception of fixed rate long-term debt, which is recorded at amortized cost. The fair values of the Company’s financial instruments are based on quoted market prices, if such prices are available. In situations where quoted market prices are not available, the Company relies on valuation models to derive fair value. Such valuation takes into account the ability of the financial counterparty to perform. | |||||||||||||
Cabot uses derivative financial instruments primarily for purposes of hedging exposures to fluctuations in foreign currency exchange rates, which exist as part of its on-going business operations. Cabot does not enter into derivative contracts for speculative purposes, nor does it hold or issue any derivative contracts for trading purposes. All derivatives are recognized on the Consolidated Balance Sheets at fair value. Where Cabot has a legal right to offset derivative settlements under a master netting agreement with a counterparty, derivatives with that counterparty are presented on a net basis. The changes in the fair value of derivatives are recorded in either earnings or Accumulated other comprehensive (loss) income, depending on whether or not the instrument is designated as part of a hedge transaction and, if designated as part of a hedge transaction, the type of hedge transaction. The gains or losses on derivative instruments reported in Accumulated other comprehensive (loss) income are reclassified to earnings in the period in which earnings are affected by the underlying hedged item. The ineffective portion of all hedges is recognized in earnings during the period in which the ineffectiveness occurs. | |||||||||||||
In accordance with Cabot’s risk management strategy, the Company may enter into certain derivative instruments that may not be designated as hedges for hedge accounting purposes. Although these derivatives are not designated as hedges, the Company believes that such instruments are closely correlated with the underlying exposure, thus managing the associated risk. The Company records in earnings the gains or losses from changes in the fair value of derivative instruments that are not designated as hedges. Cash movements associated with these instruments are presented in the Consolidated Statement of Cash Flows as Cash Flows from Operating Activities because the derivatives are designed to mitigate risk to the Company’s cash flow from operations. The cash flows related to the principal of these instruments are presented in the Cash Flows from Financing Activities section of the Consolidated Statement of Cash Flows. | |||||||||||||
Revenue Recognition | |||||||||||||
Cabot recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. Cabot generally is able to ensure that products meet customer specifications prior to shipment. If the Company is unable to determine that the product has met the specified objective criteria prior to shipment or if title has not transferred because of sales terms, the revenue is considered “unearned” and is deferred until the revenue recognition criteria are met. | |||||||||||||
Shipping and handling charges related to sales transactions are recorded as sales revenue when billed to customers or included in the sales price. | |||||||||||||
The following table shows the relative size of the revenue recognized in each of the Company’s reportable segments | |||||||||||||
Years ended September 30 | |||||||||||||
2014 | 2013 | 2012(1) | |||||||||||
Reinforcement Materials | 58 | % | 57 | % | 63 | % | |||||||
Performance Materials | 27 | % | 27 | % | 29 | % | |||||||
Advanced Technologies | 6 | % | 6 | % | 6 | % | |||||||
Purification Solutions | 9 | % | 10 | % | 2 | % | |||||||
(1) | Fiscal 2012 includes two months of revenue for Purification Solutions, which the Company acquired on July 31, 2012. | ||||||||||||
Cabot derives the substantial majority of its revenues from the sale of products in Reinforcement Materials and Performance Materials. Revenue from these products is typically recognized when the product is shipped and title and risk of loss have passed to the customer. The Company offers certain of its customers cash discounts and volume rebates as sales incentives. The discounts and volume rebates are recorded as a reduction in sales at the time revenue is recognized and are estimated based on historical experience and contractual obligations. Cabot periodically reviews the assumptions underlying its estimates of discounts and volume rebates and adjusts its revenues accordingly. | |||||||||||||
Revenue in Advanced Technologies, excluding the Specialty Fluids business, is typically recognized when the product is shipped and title and risk of loss have passed to the customer. Depending on the nature of the contract with the customer, a portion of the revenue may be recognized using proportional performance. | |||||||||||||
A significant portion of the revenue in the Specialty Fluids business, included in Advanced Technologies, arises from the rental of cesium formate. This revenue is recognized throughout the rental period based on the contracted rental terms. Customers are also billed and revenue is recognized, typically at the end of the job, for cesium formate product that is not returned. The Company also generates revenues from cesium formate sold outside of a rental process and revenue is recognized upon delivery of the fluid. | |||||||||||||
Revenue in Purification Solutions is typically recognized when the product is shipped and title and risk of loss have passed to the customer. For major activated carbon injection systems projects, revenue is recognized using the percentage-of-completion method. | |||||||||||||
Cost of Sales | |||||||||||||
Cost of sales consists of the cost of raw and packaging materials, direct manufacturing costs, depreciation, internal transfer costs, inspection costs, inbound and outbound freight and shipping and handling costs, plant purchasing and receiving costs and other overhead expenses necessary to manufacture the products. | |||||||||||||
Accounts and Notes Receivable | |||||||||||||
Trade receivables are recorded at the invoiced amount and generally do not bear interest. Trade receivables in China may at certain times be settled with the receipt of bank issued non-interest bearing notes. These notes totaled 193 million Chinese Renminbi (“RMB”) ($31 million) and 148 million RMB ($24 million) as of September 30, 2014 and 2013, respectively, and are included in accounts and notes receivable. Cabot periodically sells a portion of the trade receivables in China and other customer receivables at a discount and such sales are accounted for as asset sales. The Company does not have any continuing involvement with the notes after the sale. The difference between the proceeds from the sale and the carrying value of the receivables is recognized as a loss on the sale of receivables and is included in Other income (expense) in the accompanying Consolidated Statements of Operations. During fiscal 2014, 2013 and 2012, the Company recorded charges of $3 million, $4 million, and $2 million, respectively, for the sale of these receivables. | |||||||||||||
Cabot maintains allowances for doubtful accounts based on an assessment of the collectability of specific customer accounts, the aging of accounts receivable and other economic information on both a historical and prospective basis. Customer account balances are charged against the allowance when it is probable the receivable will not be recovered. There were no material changes in the allowance for any of the years presented. There is no material off-balance sheet credit exposure related to customer receivable balances. | |||||||||||||
Notes Receivable from Sales of business | |||||||||||||
The Company’s Notes receivable from sale of business are derived from the sale of the Supermetals business to Global Advanced Metals Pty Ltd., an Australian company (“GAM”) as discussed in Note D. The notes were carried at amortized cost and the carrying value was $214 million at September 30, 2013. During fiscal 2014, Cabot received the final payment on these notes in the amount of $215 million. | |||||||||||||
Stock-based Compensation | |||||||||||||
Cabot recognizes compensation expense for stock-based awards granted to employees using the fair value method. Under the fair value recognition provisions, stock-based compensation cost is measured at the grant date based on the fair value of the award, and is recognized as expense over the service period, which generally represents the vesting period, and includes an estimate of the awards that will be forfeited, and an estimate of what level of performance the Company will achieve for Cabot’s performance-based stock awards. Cabot calculates the fair value of its stock options using the Black-Scholes option pricing model. The fair value of restricted stock units is determined using the closing price of Cabot stock on the day of the grant. | |||||||||||||
Selling and Administrative Expenses | |||||||||||||
Selling and administrative expenses consist of salaries and fringe benefits of sales and office personnel, general office expenses and other expenses not directly related to manufacturing operations. | |||||||||||||
Research and Technical Expenses | |||||||||||||
Research and technical expenses include salaries, equipment and material expenditures, and contractor fees and are expensed as incurred. | |||||||||||||
Income Taxes | |||||||||||||
Deferred income taxes are determined based on the estimated future tax effects of differences between financial statement carrying amounts and the tax bases of existing assets and liabilities. Deferred tax assets are recognized to the extent that realization of those assets is considered to be more likely than not. | |||||||||||||
A valuation allowance is established for deferred taxes when it is more likely than not that all or a portion of the deferred tax assets will not be realized. Provisions are made for the U.S. income tax liability and additional non-U.S. taxes on the undistributed earnings of non-U.S. subsidiaries, except for amounts Cabot has designated to be indefinitely reinvested. | |||||||||||||
Cabot records benefits for uncertain tax positions based on an assessment of whether the position is more likely than not to be sustained by the taxing authorities. If this threshold is not met, no tax benefit of the uncertain tax position is recognized. If the threshold is met, the tax benefit that is recognized is the largest amount that is greater than 50% likely of being realized upon ultimate settlement. This analysis presumes the taxing authorities’ full knowledge of the positions taken and all relevant facts, but does not consider the time value of money. The Company also accrues for interest and penalties on its uncertain tax positions and includes such charges in its income tax provision in the Consolidated Statements of Operations. | |||||||||||||
Accumulated Other Comprehensive Income | |||||||||||||
Accumulated other comprehensive (loss) income, which is included as a component of stockholders’ equity, includes unrealized gains or losses on available-for-sale marketable securities and derivative instruments, currency translation adjustments in foreign subsidiaries, translation adjustments on foreign equity securities and minimum pension liability adjustments. | |||||||||||||
Environmental Costs | |||||||||||||
Cabot accrues environmental costs when it is probable that a liability has been incurred and the amount can be reasonably estimated. When a single liability amount cannot be reasonably estimated, but a range can be reasonably estimated, Cabot accrues the amount that reflects the best estimate within that range or the low end of the range if no estimate within the range is better. The amount accrued reflects Cabot’s assumptions about remediation requirements at the contaminated site, the nature of the remedy, the outcome of discussions with regulatory agencies and other potentially responsible parties at multi-party sites, and the number and financial viability of other potentially responsible parties. Cabot discounts certain of its long-term environmental liabilities to reflect the time value of money if the amount of the liability and the amount and timing of cash payments for the liability are fixed and reliably determinable. The liability will be discounted at a rate that will produce an amount at which the liability theoretically could be settled in an arm’s length transaction with a third party. This discounted rate may not exceed the risk-free rate for maturities comparable to those of the liability. Cabot does not reduce its estimated liability for possible recoveries from insurance carriers. Proceeds from insurance carriers are recorded when realized by either the receipt of cash or a contractual agreement. | |||||||||||||
Use of Estimates | |||||||||||||
The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States requires management to make certain estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Sep. 30, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Note B. Recent Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board (FASB) issued a new standard related to the “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. The standard requires, unless certain conditions exist, an unrecognized tax benefit or a portion of an unrecognized tax benefit be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, similar to a tax loss or a tax credit carryforward. This standard is applicable for fiscal years beginning after December 15, 2013, and for interim periods within those years. The Company adopted this standard on October 1, 2014 and the implementation of the new standard did not have a material impact on its consolidated financial statements. | |
In April 2014, the FASB issued a new standard related to the “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. The standard requires discontinued operations treatment for disposals of a component or group of components that represents a strategic shift that has or will have a major impact on an entity’s operations or financial results and requires additional disclosures for discontinued operations and new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. This standard is applicable for fiscal years beginning after December 15, 2014 and for interim periods within those years with early adoption permitted, but only for disposals that have not been reported in financial statements previously issued. The Company expects to adopt this standard beginning on October 1, 2015. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. | |
In May 2014, the FASB issued a new standard related to the “Revenue from Contracts with Customers” which amends the existing accounting standards for revenue recognition. The standard requires entities to recognize revenue when they transfer promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. This standard is applicable for fiscal years beginning after December 15, 2016 and for interim periods within those years and early adoption is not permitted. The Company expects to adopt this standard on October 1, 2017. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. |
Acquisition_of_NHUMO
Acquisition of NHUMO | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||
Acquisition of NHUMO | ' | ||||||||||||
Note C. Acquisition of NHUMO | |||||||||||||
In November 2013, the Company purchased all of KUO’s common stock in the NHUMO joint venture, which represented approximately 60% of the outstanding common stock of the joint venture. Prior to this transaction, the Company owned approximately 40% of the outstanding common stock of NHUMO, and the NHUMO entity was accounted for as an equity affiliate of the Company. | |||||||||||||
At the close of the transaction, the Company paid KUO $80 million in cash and NHUMO issued redeemable preferred stock to KUO with a redemption value of $25 million. The preferred stock accumulates dividends at a fixed rate of 6% annually and is redeemable at the option of KUO or the Company for $25 million starting in November 2018 or upon the occurrence of certain other conditions. Annual payment by NHUMO of the dividends will be contingent on NHUMO achieving a minimum EBITDA (earnings before interest, taxes, depreciation and amortization) level and if such minimum EBITDA is not achieved in any year, the dividend will be accumulated and paid at the time the preferred shares are redeemed. The minimum EBITDA was achieved in 2014 and the dividend payout of $1.5 million will be made in December 2014. As a result, $1.5 million of the preferred stock liability was classified in current liabilities. The preferred stock issued in connection with the transaction is not mandatorily redeemable and has embedded put and call rights at the fixed redemption price. Accordingly, the instrument is accounted for as a financing obligation and has been separately presented in the Consolidated Balance Sheets as a long-term liability. Upon acquisition, the Company began consolidating NHUMO into its consolidated financial statements. Prior to closing, the Company received a $14 million dividend from NHUMO. | |||||||||||||
The Company incurred acquisition costs of approximately $2 million through September 30, 2014 associated with the transaction, which are included in Selling and administrative expenses in the Consolidated Statements of Operations. | |||||||||||||
As of September 2014, the Company completed the valuation of its assets acquired and liabilities assumed. The allocation of the purchase price is based on the fair value of assets acquired and liabilities assumed, and Cabot’s previously held equity interest in NHUMO as of the acquisition date. During fiscal 2014, the Company recorded certain measurement period adjustments which are presented in the table below. The measurement period adjustments and the related tax impact were immaterial to the Company’s consolidated financial statements. The following table presents the components and allocation of the purchase price, including the measurement period adjustments: | |||||||||||||
At Acquisition Date | Measurement | At Acquisition Date | |||||||||||
(October 31, 2013) | Period | (As adjusted at | |||||||||||
Adjustments | September 30, 2014) | ||||||||||||
(Dollars in millions) | |||||||||||||
Assets | |||||||||||||
Cash | $ | 7 | $ | — | $ | 7 | |||||||
Accounts receivable | 33 | — | 33 | ||||||||||
Inventories | 14 | — | 14 | ||||||||||
Property, plant and equipment | 48 | — | 48 | ||||||||||
Other non-current assets | 1 | — | 1 | ||||||||||
Intangible assets | 57 | 6 | 63 | ||||||||||
Goodwill | 51 | (6 | ) | 45 | |||||||||
Total assets acquired | 211 | — | 211 | ||||||||||
Liabilities | |||||||||||||
Accounts payable, accruals and other liabilities | (18 | ) | (2 | ) | (20 | ) | |||||||
Deferred tax liabilities—long-term | (31 | ) | 2 | (29 | ) | ||||||||
Total liabilities assumed | (49 | ) | — | (49 | ) | ||||||||
Net assets acquired | $ | 162 | $ | — | $ | 162 | |||||||
Cash consideration paid | $ | 80 | |||||||||||
Fair value of redeemable preferred stock | 28 | ||||||||||||
Previously held equity interest in NHUMO | 54 | ||||||||||||
Total | $ | 162 | |||||||||||
As a result of the acquisition, the Company recorded a gain of $29 million for the difference between the carrying value and the fair value of the previously held equity interest in NHUMO, which was included in Other income (expense). The fair value of $54 million for the previously held equity interest was determined based on the fair value of Cabot’s pre-existing interest in NHUMO as adjusted for a control premium derived from synergies gained as a result of the Company obtaining control of NHUMO. | |||||||||||||
As part of the purchase price allocation, the Company determined that a separately identifiable intangible asset was customer relationships in the amount of $63 million, which is being amortized over a period of 20 years. The Company estimated the fair value of the identifiable acquisition-related intangible asset based on projections of cash flows that will arise from the asset. The projected cash flows are discounted to determine the fair value of the asset at the date of acquisition. The determination of the fair value of the intangible asset acquired required the use of significant judgment with regard to assumptions in the discounted cash flow model used. | |||||||||||||
The fair value of the redeemable preferred stock was determined based on a discounted cash flow model, using the expected timing of the cash flows and an appropriate discount rate. | |||||||||||||
The excess of the purchase price over the fair value of the tangible net assets and intangible asset acquired, the issuance of redeemable preferred stock and the previously held equity interest in NHUMO was recorded as goodwill. The goodwill recognized is attributable to the expected growth and operating synergies that the Company expects to realize from this acquisition. Goodwill generated from the acquisition will not be deductible for tax purposes. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||
Discontinued Operations | ' | ||||||||||||
Note D. Discontinued Operations | |||||||||||||
In July 2014, the Company sold its Security Materials business, which was reported in the Advanced Technologies segment, to SICPA SA for approximately $20 million in cash. The Company recorded a gain in discontinued operations as a result of this transaction. | |||||||||||||
In January 2012, the Company sold its Supermetals business to GAM for $452 million, including cash consideration of $175 million received on the closing date and notes receivable (“GAM Notes”) totaling $277 million payable at various dates through March 2014. In fiscal 2014, Cabot received the final payment on the GAM Notes in the amount of $215 million. | |||||||||||||
The following table summarizes the results from discontinued operations: | |||||||||||||
Years Ended September 30 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in millions) | |||||||||||||
Net sales and other operating revenues | $ | 5 | $ | 7 | $ | 55 | |||||||
(Loss) income from operations before income taxes | (3 | ) | (5 | ) | 20 | ||||||||
Provision for (benefit from) income taxes on operations | 1 | 2 | (7 | ) | |||||||||
(Loss) income from operations, net of tax | $ | (2 | ) | $ | (3 | ) | $ | 13 | |||||
Gain (loss) on sale of discontinued operations | 7 | (2 | ) | 300 | |||||||||
(Provision for) benefit from income taxes on gain (loss) on sale | (3 | ) | 4 | (109 | ) | ||||||||
Gain on sale of discontinued operations, net of tax | 4 | 2 | 191 | ||||||||||
Income (loss) from discontinued operations, net of tax | $ | 2 | $ | (1 | ) | $ | 204 | ||||||
The following table summarizes the assets and the liabilities held for sale in the Company’s Consolidated Balance Sheet as of September 30, 2013: | |||||||||||||
September 30, 2013 | |||||||||||||
(in millions) | |||||||||||||
Assets | |||||||||||||
Inventories | $ | 3 | |||||||||||
Other current assets | 1 | ||||||||||||
Total current assets held for sale | $ | 4 | |||||||||||
Property, plant and equipment, net | 5 | ||||||||||||
Goodwill | 2 | ||||||||||||
Intangible assets, net | 2 | ||||||||||||
Total noncurrent assets held for sale | $ | 9 | |||||||||||
Inventories
Inventories | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Note E. Inventories | |||||||||
Inventories, net of LIFO, obsolete, unmarketable and slow moving reserves, are as follows: | |||||||||
September 30 | |||||||||
2014 | 2013 | ||||||||
(Dollars in millions) | |||||||||
Raw materials | $ | 111 | $ | 100 | |||||
Work in process | 2 | 2 | |||||||
Finished goods | 341 | 309 | |||||||
Other | 44 | 44 | |||||||
Total | $ | 498 | $ | 455 | |||||
Inventories valued under the LIFO method comprised approximately 5% of total inventories at both September 30, 2014 and 2013. At September 30, 2014 and 2013, the LIFO reserve was $52 million and $55 million, respectively. Other inventory is comprised of certain spare parts and supplies. | |||||||||
During fiscal 2013 and 2012, inventory quantities carried on a LIFO basis were decreased at the Company’s U.S. carbon black sites. These reductions led to liquidations of LIFO inventory quantities and resulted in a decrease of Cost of sales of $1 million and an increase in consolidated Net income of $1 million ($0.01 per diluted common share) in both fiscal years. No such reductions occurred in fiscal 2014. | |||||||||
Cabot reviews inventory for both potential obsolescence and potential loss of value periodically. In this review, Cabot makes assumptions about the future demand for and market value of the inventory and, based on these assumptions, estimates the amount of obsolete, unmarketable or slow moving inventory. The inventory reserves were $14 million and $15 million, respectively, as of September 30, 2014 and 2013. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment | ' | ||||||||
Note F. Property, Plant and Equipment | |||||||||
Property, plant and equipment consists of the following: | |||||||||
September 30 | |||||||||
2014 | 2013 | ||||||||
(Dollars in millions) | |||||||||
Land and land improvements | $ | 132 | $ | 138 | |||||
Buildings | 536 | 507 | |||||||
Machinery and equipment | 2,593 | 2,504 | |||||||
Other | 233 | 236 | |||||||
Construction in progress | 216 | 278 | |||||||
Total property, plant and equipment | 3,710 | 3,663 | |||||||
Less: accumulated depreciation | (2,129 | ) | (2,063 | ) | |||||
Net property, plant and equipment | $ | 1,581 | $ | 1,600 | |||||
Depreciation expense was $184 million, $175 million and $152 million for fiscal 2014, 2013 and 2012, respectively. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||||||||||
Note G. Goodwill and Other Intangible Assets | |||||||||||||||||||||||||
Cabot had goodwill balances of $536 million and $502 million at September 30, 2014 and 2013, respectively. The carrying amount of goodwill attributable to each reportable segment with goodwill balances and the changes in those balances during the years ended September 30, 2014 and 2013 are as follows: | |||||||||||||||||||||||||
Reinforcement | Performance | Purification | Total | ||||||||||||||||||||||
Materials | Materials | Solutions | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Balance at September 30, 2012 | $ | 28 | $ | 11 | $ | 439 | $ | 478 | |||||||||||||||||
Measurement period adjustments(1) | — | — | 22 | 22 | |||||||||||||||||||||
Foreign currency impact | (3 | ) | — | 5 | 2 | ||||||||||||||||||||
Balance at September 30, 2013 | $ | 25 | $ | 11 | $ | 466 | $ | 502 | |||||||||||||||||
Goodwill acquired(2) | 45 | — | — | 45 | |||||||||||||||||||||
Foreign currency impact | (2 | ) | (1 | ) | (8 | ) | (11 | ) | |||||||||||||||||
Balance at September 30, 2014 | $ | 68 | $ | 10 | $ | 458 | $ | 536 | |||||||||||||||||
(1) | Measurement period adjustments relate to the acquisition of Purification Solutions in July 2012. | ||||||||||||||||||||||||
(2) | Goodwill acquired relates to the NHUMO transaction as described in Note C. | ||||||||||||||||||||||||
Goodwill impairment tests are performed at least annually. The Company performed its last annual impairment assessment as of May 31, 2014 and determined there was no impairment. | |||||||||||||||||||||||||
The following table provides information regarding the Company’s intangible assets: | |||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Intangible | Carrying | Amortization | Intangible | ||||||||||||||||||||
Value | Assets | Value | Assets | ||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Intangible assets with finite lives | |||||||||||||||||||||||||
Developed technology | $ | 152 | $ | (16 | ) | $ | 136 | $ | 154 | $ | (9 | ) | $ | 145 | |||||||||||
Customer relationships(1) | 171 | (17 | ) | 154 | 113 | (7 | ) | 106 | |||||||||||||||||
Total intangible assets, finite lives | $ | 323 | $ | (33 | ) | $ | 290 | $ | 267 | $ | (16 | ) | $ | 251 | |||||||||||
Trademarks, indefinite lives | 57 | — | 57 | 57 | — | 57 | |||||||||||||||||||
Total intangible assets | $ | 380 | $ | (33 | ) | $ | 347 | $ | 324 | $ | (16 | ) | $ | 308 | |||||||||||
(1) | The change in the gross carrying value of the Customer relationships intangible asset is primarily due to the NHUMO transaction as described in Note C. | ||||||||||||||||||||||||
Intangible assets with finite lives are amortized over their estimated useful lives, which range from sixteen to twenty years, with a weighted average amortization period of approximately nineteen years. Amortization expense for the years ended September 30, 2014, 2013 and 2012 was $17 million, $14 million and $3 million, respectively, and is included in Cost of sales and Selling and administrative expenses in the Consolidated Statements of Operations. Total amortization expense is estimated to be approximately $17 million each year for the next five fiscal years. Intangible assets with indefinite lives are evaluated for impairment at least annually. The Company performed its annual impairment assessment as of May 31, 2014, and determined there was no impairment. |
Accounts_Payable_Accrued_Liabi
Accounts Payable, Accrued Liabilities and Other Liabilities | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accounts Payable, Accrued Liabilities and Other Liabilities | ' | ||||||||
Note H. Accounts Payable, Accrued Liabilities and Other Liabilities | |||||||||
Accounts payable and accrued liabilities included in current liabilities consist of the following: | |||||||||
September 30 | |||||||||
2014 | 2013 | ||||||||
(Dollars in millions) | |||||||||
Accounts payable | $ | 351 | $ | 398 | |||||
Accrued employee compensation | 48 | 41 | |||||||
Other accrued liabilities | 113 | 95 | |||||||
Total | $ | 512 | $ | 534 | |||||
Other long-term liabilities consist of the following: | |||||||||
September 30 | |||||||||
2014 | 2013 | ||||||||
(Dollars in millions) | |||||||||
Employee benefit plan liabilities | $ | 174 | $ | 149 | |||||
Non-current tax liabilities | 33 | 47 | |||||||
Other accrued liabilities | 84 | 69 | |||||||
Total | $ | 291 | $ | 265 | |||||
Debt_and_Other_Obligations
Debt and Other Obligations | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Debt and Other Obligations | ' | ||||||||||||
Note I. Debt and Other Obligations | |||||||||||||
Long-term Obligations | |||||||||||||
The Company’s long-term obligations, the fiscal year in which they mature and their respective interest rates are summarized below: | |||||||||||||
September 30 | |||||||||||||
2014 | 2013 | ||||||||||||
(Dollars in millions) | |||||||||||||
Variable Rate Debt: | |||||||||||||
$750 million Revolving Credit Facility, expires 2016 | $ | — | $ | — | |||||||||
Chinese Renminbi Notes, due through 2016, 6.15%—6.77% | 28 | 47 | |||||||||||
Total variable rate debt | 28 | 47 | |||||||||||
Fixed Rate Debt: | |||||||||||||
5% Notes due 2017 | $ | 300 | $ | 300 | |||||||||
2.55% Notes due 2018 | 250 | 250 | |||||||||||
3.7% Notes due 2022 | 350 | 350 | |||||||||||
Medium Term Notes: | |||||||||||||
Notes due 2019, 7.42% | 30 | 30 | |||||||||||
Notes due 2022, 8.35%—8.47% | 15 | 15 | |||||||||||
Notes due 2028, 6.57%—7.28% | 8 | 8 | |||||||||||
Total Medium Term Notes | $ | 53 | $ | 53 | |||||||||
ESOP Note, 8.29% | — | 2 | |||||||||||
Chinese Renminbi Notes, due through 2018, 4.63%—6.15% | 31 | 16 | |||||||||||
Total fixed rate debt | 984 | 971 | |||||||||||
Capital lease obligations, due through 2031 | 17 | 18 | |||||||||||
Unamortized debt discount | (1 | ) | (2 | ) | |||||||||
Total debt | 1,028 | 1,034 | |||||||||||
Less current portion of long-term debt | (24 | ) | (14 | ) | |||||||||
Total long-term debt | $ | 1,004 | $ | 1,020 | |||||||||
$750 million Revolving Credit Facility—The amount available for borrowing under the revolving credit agreement, after consideration of letters of credit and commercial paper outstanding, was $720 million as of September 30, 2014. Effective October 3, 2014, the Company entered into a new revolving credit agreement that amended and extended the $750 million revolving credit agreement, which was scheduled to mature on August 25, 2016. The new revolving credit agreement, which matures on October 3, 2019, subject to two one-year options to extend after the first and second anniversaries of the effective date, continues to support our commercial paper program. Borrowings under the new revolving credit agreement may be used for working capital, letters of credit and other general corporate purposes. The new revolving credit agreement contains affirmative and negative covenants, a single financial covenant (debt-to-EBITDA) and events of default customary for financings of this type. | |||||||||||||
Chinese Renminbi Debt—The Company’s consolidated Chinese subsidiaries had $59 million and $63 million of unsecured long-term debt outstanding as of September 30, 2014 and September 30, 2013, respectively. | |||||||||||||
5% Notes due fiscal 2017—In fiscal 2009, Cabot issued $300 million in registered notes with a coupon of 5% that will mature on October 1, 2016. These notes are unsecured and pay interest on April 1 and October 1. The net proceeds of this offering were $296 million after deducting discounts and issuance costs. The discount of approximately $2 million was recorded at issuance and is being amortized over the life of the notes. | |||||||||||||
2.55% Notes due fiscal 2018—In July 2012, Cabot issued $250 million in registered notes with a coupon of 2.55% that will mature on January 15, 2018. These notes are unsecured and pay interest on January 15 and July 15. The net proceeds of this offering were $248 million after deducting discounts and issuance costs. The discount of less than $1 million was recorded at issuance and is being amortized over the life of the notes. | |||||||||||||
3.7% Notes due fiscal 2022—In July 2012, Cabot issued $350 million in registered notes with a coupon of 3.7% that will mature on July 15, 2022. These notes are unsecured and pay interest on January 15 and July 15. The net proceeds of this offering were $347 million after deducting discounts and issuance costs. The discount of less than $1 million was recorded at issuance and is being amortized over the life of the notes. | |||||||||||||
Medium Term Notes—At both September 30, 2014 and 2013, there were $53 million of unsecured medium term notes outstanding issued to numerous lenders with various fixed interest rates and maturity dates. The weighted average maturity of the total outstanding medium term notes is 7 years with a weighted average interest rate of 7.65%. | |||||||||||||
ESOP Debt—In November 1988, Cabot’s Employee Stock Ownership Plan (“ESOP”) borrowed $75 million from an institutional lender in order to finance its purchase of Cabot shares. This debt bore interest at 8.29% per annum and matured on December 31, 2013. Cabot, as guarantor, has reflected the outstanding balance of $2 million at September 30, 2013. An equal amount, representing deferred employee benefits, has been recorded as a reduction to stockholders’ equity. Cabot contributed $1 million to the ESOP to service the debt during fiscal 2014, $4 million during fiscal 2013, and $5 million during fiscal 2012. Dividends on ESOP shares used for debt service were less than $1 million for fiscal 2014 and $2 million in fiscal years 2013 and 2012. In addition, interest incurred on the ESOP debt was less than $1 million during fiscal 2014 and 2013 and $1 million during fiscal 2012. | |||||||||||||
Capital Lease Obligations—Cabot had capital lease obligations for certain equipment and buildings with a recorded value of $17 million and $18 million at September 30, 2014 and 2013, respectively. Cabot will make payments totaling $39 million over the next 17 years, including $11 million of imputed interest. At September 30, 2014 and 2013, the original cost of capital lease assets was $22 million and $24 million, respectively, and the associated accumulated depreciation of assets under capital leases was $9 million at both September 30, 2014 and 2013. The amortization related to those assets under capital lease is included in depreciation expense. | |||||||||||||
Future Years Payment Schedule | |||||||||||||
The aggregate principal amounts of long-term debt and capital lease obligations due in each of the five years from fiscal 2015 through 2019 are as follows: | |||||||||||||
Fiscal Years Ending | Principal payments | Payments on | Total | ||||||||||
on long-term | Capital Lease | ||||||||||||
debt | Obligations | ||||||||||||
(Dollars in millions) | |||||||||||||
2015 | $ | 23 | $ | 4 | $ | 27 | |||||||
2016 | 7 | 4 | 11 | ||||||||||
2017 | 314 | 4 | 318 | ||||||||||
2018 | 265 | 3 | 268 | ||||||||||
2019 | 30 | 3 | 33 | ||||||||||
Thereafter | 373 | 21 | 394 | ||||||||||
Less: executory costs and interest | — | (22 | ) | (22 | ) | ||||||||
Total | $ | 1,012 | $ | 17 | $ | 1,029 | |||||||
Standby letters of credit—At September 30, 2014, the Company had provided standby letters of credit that were outstanding and not drawn totaling $10 million, which expire through fiscal 2015. | |||||||||||||
Short-term Obligations | |||||||||||||
Short-term Notes Payable—The Company had unsecured short-term notes of $44 million and $264 million as of September 30, 2014 and 2013, respectively, with maturities of less than one year. The weighted-average interest rate on short-term notes payable, including commercial paper, was 3.9% and 0.7% as of September 30, 2014 and 2013, respectively. | |||||||||||||
In January 2013, Cabot entered into agreements to initiate a commercial paper program under which Cabot may issue unsecured commercial paper. The maximum aggregate balance of commercial paper and the revolving credit facility may not exceed the current maximum size of the revolving credit facility, $750 million. The proceeds from the issuance of the commercial paper have been used for general corporate purposes, which may include working capital, refinancing existing indebtedness, capital expenditures, share repurchases, and acquisitions. The revolving credit facility is available to repay the outstanding commercial paper, if necessary. The commercial paper will typically be sold at a discount from par at rates that will vary based upon market conditions at the time of the issuance of the commercial paper. The maturities of the commercial paper will vary, but may not exceed 364 days from the date of issue. The definitive documents relating to the commercial paper program contain customary representations, warranties, default and indemnification provisions. | |||||||||||||
The outstanding balance of commercial paper, included within the Notes payable caption on the Consolidated Balance Sheets, was $30 million as of September 30, 2014 bearing a weighted-average interest rate of 0.25% with a weighted-average maturity of 1 day. The outstanding balance of commercial paper was $241 million as of September 30, 2013 bearing a weighted-average interest rate of 0.32% with a weighted-average maturity of 28 days. |
Financial_Instruments_and_Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Fair Value Disclosures [Abstract] | ' | ||||||
Financial Instruments and Fair Value Measurements | ' | ||||||
Note J. Financial Instruments and Fair Value Measurements | |||||||
The FASB authoritative guidance on fair value measurements defines fair value, provides a framework, for measuring fair value in generally accepted accounting principles, and requires certain disclosures about fair value measurements. The disclosures focus on the inputs used to measure fair value. The guidance establishes the following hierarchy for categorizing these inputs: | |||||||
Level 1 | — | Quoted market prices in active markets for identical assets or liabilities | |||||
Level 2 | — | Significant other observable inputs (e.g., quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and market-corroborated inputs) | |||||
Level 3 | — | Significant unobservable inputs | |||||
There were no transfers of financial assets or liabilities measured at fair value between Level 1 and Level 2, or transfers into or out of Level 3, during fiscal 2014 or 2013. | |||||||
At September 30, 2014 and 2013, the fair value of Guaranteed investment contracts, included in Other assets on the Consolidated Balance Sheets, was $13 million and $14 million, respectively. Guaranteed investment contracts were classified as Level 2 instruments within the fair value hierarchy as the fair value determination was based on other observable inputs. | |||||||
At September 30, 2014 and 2013, the fair values of cash and cash equivalents, accounts and notes receivable, accounts payable and accrued liabilities, and notes payable and variable rate debt approximated their carrying values due to the short-term nature of these instruments. The carrying value and fair value of the long-term fixed rate debt were $0.98 billion and $1.05 billion, respectively, as of September 30, 2014. The carrying value and fair value of the long-term fixed rate debt were $0.97 billion and $1.01 billion, respectively, as of September 30, 2013. The fair values of Cabot’s fixed rate long-term debt and capital lease obligations are estimated based on comparable quoted market prices at the respective period ends. The carrying amounts of Cabot’s floating rate long-term debt and capital lease obligations approximate their fair values. All such measurements are based on observable inputs and are classified as Level 2 within the fair value hierarchy. The valuation technique used is the discounted cash flow model. |
Derivatives
Derivatives | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||
Derivatives | ' | ||||||||
Note K. Derivatives | |||||||||
Risk Management | |||||||||
Cabot’s business operations are exposed to changes in interest rates, foreign currency exchange rates and commodity prices because Cabot finances certain operations through long and short-term borrowings, denominates transactions in a variety of foreign currencies and purchases certain commoditized raw materials. Changes in these rates and prices may have an impact on future cash flows and earnings. The Company manages these risks through normal operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. | |||||||||
The Company has policies governing the use of derivative instruments and does not enter into financial instruments for trading or speculative purposes. | |||||||||
By using derivative instruments, Cabot is subject to credit and market risk. If a counterparty fails to fulfill its performance obligations under a derivative contract, Cabot’s credit risk will equal the fair value of the derivative. Generally, when the fair value of a derivative contract is positive, the counterparty owes Cabot, thus creating a payment risk for Cabot. The Company minimizes counterparty credit (or repayment) risk by entering into transactions with major financial institutions of investment grade credit rating. As of September 30, 2014, the counterparties with which the Company has executed derivatives carried a Standard and Poor’s credit rating between A- and AA-, inclusive. Cabot’s exposure to market risk is not hedged in a manner that completely eliminates the effects of changing market conditions on earnings or cash flow. No significant concentration of credit risk existed at September 30, 2014. | |||||||||
Interest Rate Risk Management | |||||||||
Cabot’s objective is to maintain a certain fixed-to-variable interest rate mix on the Company’s debt obligations. Cabot may enter into interest rate swaps as a hedge of the underlying debt instruments to effectively change the characteristics of the interest rate without changing the debt instrument. As of both September 30, 2014 and 2013, there were no derivatives held to manage interest risk. | |||||||||
Foreign Currency Risk Management | |||||||||
Cabot’s international operations are subject to certain risks, including currency exchange rate fluctuations and government actions. Cabot endeavors to match the currency in which debt is issued to the currency of the Company’s major, stable cash receipts. In some situations Cabot has issued debt denominated in U.S. dollars and then entered into cross currency swaps that exchange the dollar principal and interest payments into a currency where the Company expects long-term, stable cash receipts. | |||||||||
Additionally, the Company has foreign currency exposure arising from its net investments in foreign operations. Cabot, from time to time, enters into cross-currency swaps to mitigate the impact of currency rate changes on the Company’s net investments. | |||||||||
The Company also has foreign currency exposure arising from the denomination of monetary assets and liabilities in foreign currencies other than the functional currency of a given subsidiary as well as the risk that currency fluctuations could affect the dollar value of future cash flows generated in foreign currencies. Accordingly, Cabot uses short-term forward contracts to minimize the exposure to foreign currency risk. | |||||||||
In certain situations where the Company has forecasted purchases under a long-term commitment or forecasted sales denominated in a foreign currency, Cabot may enter into appropriate financial instruments in accordance with the Company’s risk management policy to hedge future cash flow exposures. | |||||||||
The following table provides details of the derivatives held as of September 30, 2014 and 2013 to manage foreign currency risk. | |||||||||
Notional Amount | |||||||||
Description | Borrowing | September 30, 2014 | September 30, 2013 | Hedge | |||||
Designation | |||||||||
Forward Foreign Currency | N/A | USD 32 million | USD 31 million | No designation | |||||
Contracts (1) | |||||||||
(1) | Cabot’s forward foreign exchange contracts are denominated primarily in the British pound sterling, Brazilian real, Chinese renminbi, Czech koruna and Indian rupee. | ||||||||
Accounting for Derivative Instruments and Hedging Activities | |||||||||
The Company determines the fair value of financial instruments using quoted market prices whenever available. When quoted market prices are not available for various types of financial instruments (such as forwards, options and swaps), the Company uses standard models with market-based inputs, which take into account the present value of estimated future cash flows and the ability of the financial counterparty to perform. For interest rate and cross-currency swaps, the significant inputs to these models are interest rate curves for discounting future cash flows. For forward foreign currency contracts, the significant inputs are interest rate curves for discounting future cash flows, and exchange rate curves of the foreign currency for translating future cash flows. | |||||||||
Fair Value Hedge | |||||||||
For derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in current period earnings. | |||||||||
Cash Flow Hedge | |||||||||
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is recorded in Accumulated other comprehensive (loss) income and reclassified to earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current period earnings. | |||||||||
Other Derivative Instruments | |||||||||
From time to time, the Company may enter into certain derivative instruments that may not be designated as hedges for accounting purposes, which include cross currency swaps, foreign currency forward contracts and commodity derivatives. For cross currency swaps and foreign currency forward contracts not designated as hedges, the Company uses standard models with market-based inputs. The significant inputs to these models are interest rate curves for discounting future cash flows, and exchange rate curves of the foreign currency for translating future cash flows. In determining the fair value of the commodity derivatives, the significant inputs to valuation models are quoted market prices of similar instruments in active markets. Although these derivatives do not qualify for hedge accounting, Cabot believes that such instruments are closely correlated with the underlying exposure, thus managing the associated risk. The gains or losses from changes in the fair value of derivative instruments that are not accounted for as hedges are recognized in current period earnings. | |||||||||
During fiscal 2014, there were no derivatives designated as hedges. During fiscal 2013 and 2012, for derivatives designated as hedges, the change in unrealized gains in Accumulated other comprehensive (loss) income, the hedge ineffectiveness recognized in earnings, the realized gains or losses reclassified from Accumulated other comprehensive (loss) income, and the losses reclassified from Accumulated other comprehensive (loss) income to earnings were immaterial. | |||||||||
During fiscal 2013 and 2012, respectively, a gain of $4 million and a loss of $10 million were recognized in earnings as a result of the remeasurement to Euros of the $175 million bond held by one of Cabot’s European subsidiaries. Both the gain and loss were recognized in earnings through Other income (expense) within the Consolidated Statements of Operations. The 2013 gain was offset by a loss of $2 million and the 2012 loss was offset by a gain of $12 million, both from Cabot’s cross currency swaps that are not designated as hedges, but which Cabot entered into to offset the foreign currency remeasurement exposure on the debt. Additionally, during fiscal 2013 and 2012, Cabot recognized in earnings through Other income (expenses) within the Consolidated Statements of Operations, gains of $5 million and $10 million, respectively, related to its foreign currency forward contracts, which were not designated as hedges. | |||||||||
At both September 30, 2014 and 2013, the fair value of derivative instruments were immaterial and were presented in Prepaid expenses and other current assets and Accounts payable and accrued liabilities on the Consolidated Balance Sheets. |
Venezuela
Venezuela | 12 Months Ended |
Sep. 30, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | ' |
Venezuela | ' |
Note L. Venezuela | |
Cabot owns 49% of an operating carbon black affiliate in Venezuela, which is accounted for as an equity affiliate, through wholly-owned subsidiaries that carry the investment and receive its dividends. As of September 30, 2014, these subsidiaries carried the operating affiliate investment of $17 million and held 19 million bolivars (less than $1 million) in cash. | |
During fiscal 2014, 2013 and 2012, the operating affiliate declared dividends in the amounts of $5 million, $3 million and $6 million, respectively, which were paid in U.S. dollars and repatriated to the Company’s wholly-owned subsidiaries. | |
During the second quarter of fiscal 2014, the Venezuelan government enacted several changes to Venezuela’s foreign exchange regime, introducing a multi-tier foreign exchange system whereby there are now three exchange rate mechanisms available to convert Venezuelan bolivars to U.S. dollars. In March 2014, the Venezuelan government created a currency exchange mechanism referred to as SICAD 2 (Supplementary System for the Administration of Foreign Currency) and allowed its use by all entities for all transactions. The exchange rate on March 31, 2014 under SICAD 2 was 50.8 bolivars to the U.S. dollar (B/$) compared to the previously used official exchange rate of 6.3 B/$. A significant portion of the Company’s operating affiliate’s sales are exports denominated in U.S. dollars. The Venezuelan government mandates that a certain percentage of the dollars collected from these sales be converted into bolivars. Since the exchange rate that was made available to the Company when converting these dollars into bolivars was the SICAD 2 exchange rate, the operating affiliate remeasured its bolivar denominated monetary accounts at that rate. The negative impact of the exchange rate devaluation on the operating affiliate’s results was $8 million, of which Cabot’s share was $4 million as of September 30, 2014. The SICAD 2 rate at September 30, 2014 was 50.0 B/$. | |
In addition, in the second quarter of fiscal 2014, the Company remeasured the bolivar denominated monetary accounts in its wholly-owned subsidiaries at the SICAD 2 rate as it was determined that this exchange mechanism is applicable to these subsidiaries. This resulted in the recognition of a $2 million loss which was recorded within Other income (expense) within the Consolidated Statements of Operations. The Company also recognized a tax benefit of $2 million from a reduction in its bolivar denominated deferred tax liability due to the impact of the devaluation of the bolivar on unremitted earnings. | |
The operating entity has generally been profitable and has significant export operations from which it is entitled to retain a certain percentage of the foreign currency that it collects, which is principally the U.S. dollar. The Company continues to closely monitor developments in Venezuela and their potential impact on the recoverability of its equity affiliate investment. | |
The Company closely monitors its ability to convert its bolivar holdings into U.S. dollars, as the Company intends to convert substantially all bolivars held by its wholly-owned subsidiaries in Venezuela to U.S. dollars as soon as practical. Any future change in the SICAD 2 rate or opening of additional parallel markets could cause the Company to change the exchange rate it uses and result in gains or losses on the bolivar denominated assets held by its operating affiliate and wholly-owned subsidiaries. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Note M. Employee Benefit Plans | |||||||||||||||||||||||||||||||||||||||||||||||||
The information below provides detail concerning the Company’s benefit obligations under the defined benefit and postretirement benefit plans it sponsors. The information included in this footnote and the related tables also includes amounts pertaining to the Company’s former Supermetals business, unless indicated otherwise. | |||||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit plans provide pre-determined benefits to employees that are distributed upon retirement. Cabot is making all required contributions to these plans. The accumulated benefit obligation was $173 million for the U.S. defined benefit plans and $462 million for the foreign plans as of September 30, 2014 and $170 million for the U.S. defined benefit plans and $412 million for the foreign plans as of September 30, 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||
In addition to benefits provided under the defined benefit and postretirement benefit plans, the Company provided benefits under defined contribution plans. One of these plans included an Employee Stock Ownership Plan (“ESOP”) component, which is described below. Cabot recognized expenses related to these plans, not including the expenses related to the ESOP, of $14 million in fiscal 2014, $9 million in fiscal 2013 and $7 million in fiscal 2012. | |||||||||||||||||||||||||||||||||||||||||||||||||
Employee Stock Ownership Plan | |||||||||||||||||||||||||||||||||||||||||||||||||
In the first quarter of fiscal 2014, all shares that remained available for distribution under the ESOP were allocated to participant accounts and no further contributions under the plan have been or will be made. Compensation expense related to the ESOP, which is based on the fair value of the shares on the date of allocation was $1 million in fiscal 2014, $4 million in fiscal 2013 and $5 million in fiscal 2012. | |||||||||||||||||||||||||||||||||||||||||||||||||
The following provides information about benefit obligations, plan assets, the funded status and weighted-average assumptions of the defined benefit pension and postretirement benefit plans: | |||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Change in Benefit Obligations: | |||||||||||||||||||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 170 | $ | 439 | $ | 195 | $ | 423 | $ | 55 | $ | 17 | $ | 64 | $ | 18 | |||||||||||||||||||||||||||||||||
Service cost | 2 | 9 | 6 | 9 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Interest cost | 7 | 16 | 6 | 15 | 2 | 1 | 2 | 1 | |||||||||||||||||||||||||||||||||||||||||
Plan participants’ contribution | — | 2 | — | 2 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Foreign currency exchange rate changes | — | (28 | ) | — | — | — | — | — | (1 | ) | |||||||||||||||||||||||||||||||||||||||
Loss (gain) from changes in actuarial assumptions | 6 | 75 | (19 | )(1) | 12 | (3 | ) | — | (6 | ) | — | ||||||||||||||||||||||||||||||||||||||
Benefits paid(2) | (11 | ) | (18 | ) | (11 | ) | (17 | ) | (4 | ) | (1 | ) | (5 | ) | (1 | ) | |||||||||||||||||||||||||||||||||
Settlements or curtailment gain | — | (7 | ) | (7 | ) | (2 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Acquisition / business combination | — | 3 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Divestiture of Supermetals business | — | — | — | (5 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Other | (1 | ) | — | — | 2 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Benefit obligation at end of year | $ | 173 | $ | 491 | $ | 170 | $ | 439 | $ | 50 | $ | 17 | $ | 55 | $ | 17 | |||||||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Change in Plan Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 155 | $ | 375 | $ | 149 | $ | 356 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Actual return on plan assets | 21 | 41 | 17 | 22 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Employer contribution | 3 | 12 | — | 13 | 4 | 1 | 5 | — | |||||||||||||||||||||||||||||||||||||||||
Plan participants’ contribution | — | 2 | — | 2 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Foreign currency exchange rate changes | — | (20 | ) | — | 4 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Benefits paid(2) | (11 | ) | (18 | ) | (10 | ) | (17 | ) | (4 | ) | (1 | ) | (5 | ) | — | ||||||||||||||||||||||||||||||||||
Settlements | — | (4 | ) | — | (1 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Acquisition / business combination | — | 1 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Divestiture of Supermetals business | — | — | — | (3 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Expenses paid from assets | (1 | ) | (1 | ) | (1 | ) | (1 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 167 | $ | 388 | $ | 155 | $ | 375 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Funded status | $ | (6 | ) | $ | (103 | ) | $ | (15 | ) | $ | (64 | ) | $ | (50 | ) | $ | (17 | ) | $ | (55 | ) | $ | (17 | ) | |||||||||||||||||||||||||
Recognized liability | $ | (6 | ) | $ | (103 | ) | $ | (15 | ) | $ | (64 | ) | $ | (50 | ) | $ | (17 | ) | $ | (55 | ) | $ | (17 | ) | |||||||||||||||||||||||||
-1 | During fiscal 2013, the Company approved the freezing of the U.S. pension plan that resulted in the remeasurement of the plan assets and liabilities. The remeasurement decreased the net pension obligation of the plan, which is included within the Other liabilities caption on the Consolidated Balance Sheets, by $19 million and increased Accumulated other comprehensive (loss) income by $13 million, net of tax. The impact to the Company’s Net periodic benefit cost was less than $1 million. | ||||||||||||||||||||||||||||||||||||||||||||||||
-2 | Included in this amount is $7 million that the Company paid directly to the participants in its defined benefit plans in both fiscal 2014 and 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||
Pension Assumptions and Strategy | |||||||||||||||||||||||||||||||||||||||||||||||||
The following assumptions were used to determine the pension benefit obligations at September 30: | |||||||||||||||||||||||||||||||||||||||||||||||||
Assumptions as of September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||||||||||||||||||||||||||||
Actuarial assumptions as of the year-end measurement date: | |||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4 | % | 3 | % | 4.5 | % | 3.8 | % | 3.5 | % | 3.6 | % | |||||||||||||||||||||||||||||||||||||
Rate of increase in compensation | N/A | 2.8 | % | 3 | % | 3.1 | % | 3.5 | % | 3.1 | % | ||||||||||||||||||||||||||||||||||||||
Actuarial assumptions used to determine net periodic benefit cost during the year: | |||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4.5 | % | 3.8 | % | 3.5 | % | 3.6 | % | 4.5 | % | 4.8 | % | |||||||||||||||||||||||||||||||||||||
Expected long-term rate of return on plan assets | 7.8 | % | 5.3 | % | 7.8 | % | 5.3 | % | 7.8 | % | 5.3 | % | |||||||||||||||||||||||||||||||||||||
Rate of increase in compensation | 3 | % | 3.1 | % | 3.5 | % | 3.1 | % | 3.8 | % | 3.2 | % | |||||||||||||||||||||||||||||||||||||
Postretirement Assumptions and Strategy | |||||||||||||||||||||||||||||||||||||||||||||||||
The following assumptions were used to determine the postretirement benefit obligations at September 30: | |||||||||||||||||||||||||||||||||||||||||||||||||
Assumptions as of September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Postretirement Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||||||||||||||||||||||||||||
Actuarial assumptions as of the year-end measurement date: | |||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 3.8 | % | 3.9 | % | 4 | % | 4.4 | % | 3.3 | % | 3.9 | % | |||||||||||||||||||||||||||||||||||||
Initial health care cost trend rate | 7 | % | 7.1 | % | 7.5 | % | 7.5 | % | 8 | % | 7.4 | % | |||||||||||||||||||||||||||||||||||||
Actuarial assumptions used to determine net cost during the year: | |||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4 | % | 4.4 | % | 3.3 | % | 3.9 | % | 4.5 | % | 4.9 | % | |||||||||||||||||||||||||||||||||||||
Initial health care cost trend rate | 7.5 | % | 7.5 | % | 8 | % | 7.4 | % | 8.5 | % | 7.9 | % | |||||||||||||||||||||||||||||||||||||
Cabot uses discount rates as of September 30, the plans’ measurement date, to determine future benefit obligations under its U.S. and foreign defined benefit plans. The discount rates for the defined benefit plans in the U.S., Canada, Mexico, UAE, Euro-zone, Japan, Switzerland and the U.K. are derived from yield curves that reflect high quality corporate bond yield or swap rate information in each region and reflect the characteristics of Cabot’s employee benefit plans. The discount rates for the defined benefit plans in the Czech Republic and Indonesia are based on government bond indices that best reflect the durations of the plans, adjusted for credit spreads presented in selected AA corporate bond indices. The rates utilized are selected because they represent long-term, high quality, fixed income benchmarks that approximate the long-term nature of Cabot’s pension obligations and related payouts. | |||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net Amounts Recognized in the Consolidated Balance Sheets: | |||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent assets | $ | — | $ | 4 | $ | — | $ | 4 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Current liabilities | — | (1 | ) | — | (1 | ) | (5 | ) | — | (5 | ) | — | |||||||||||||||||||||||||||||||||||||
Noncurrent liabilities | (6 | ) | (106 | ) | (15 | ) | (67 | ) | (45 | ) | (17 | ) | (50 | ) | (17 | ) | |||||||||||||||||||||||||||||||||
Amounts recognized in Accumulated other comprehensive income (loss) at September 30, 2014 and 2013 were as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial (gain) loss | $ | (9 | ) | $ | 118 | $ | (4 | ) | $ | 78 | $ | (7 | ) | $ | 2 | $ | (3 | ) | $ | 3 | |||||||||||||||||||||||||||||
Net prior service (credit) | — | — | — | — | (3 | ) | — | (7 | ) | — | |||||||||||||||||||||||||||||||||||||||
Balance in accumulated other comprehensive income, pretax | $ | (9 | ) | $ | 118 | $ | (4 | ) | $ | 78 | $ | (10 | ) | $ | 2 | $ | (10 | ) | $ | 3 | |||||||||||||||||||||||||||||
In fiscal 2015, the Company expects an estimated net loss of $5 million will be amortized from Accumulated other comprehensive (loss) income to net periodic benefit cost. In addition, the Company expects prior service credits of $3 million for other postretirement benefits will be amortized from Accumulated other comprehensive (loss) income to net periodic benefit costs in fiscal 2015. | |||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Future Benefit Payments | |||||||||||||||||||||||||||||||||||||||||||||||||
The Company expects that the following benefit payments will be made to plan participants in the years from 2015 to 2024: | |||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended: | |||||||||||||||||||||||||||||||||||||||||||||||||
2015 | $ | 12 | $ | 16 | $ | 4 | $ | 1 | |||||||||||||||||||||||||||||||||||||||||
2016 | 12 | 14 | 4 | 1 | |||||||||||||||||||||||||||||||||||||||||||||
2017 | 14 | 15 | 4 | 1 | |||||||||||||||||||||||||||||||||||||||||||||
2018 | 13 | 16 | 5 | 1 | |||||||||||||||||||||||||||||||||||||||||||||
2019 | 12 | 16 | 5 | 1 | |||||||||||||||||||||||||||||||||||||||||||||
2020-2024 | 61 | 97 | 19 | 4 | |||||||||||||||||||||||||||||||||||||||||||||
Postretirement medical benefits are unfunded and impact Cabot’s cash flows as benefits become due. The Company expects to contribute less than $1 million to its U.S. pension plan and $9 million to its foreign pension plan in fiscal 2015. | |||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic defined benefit pension and other postretirement benefit costs include the following components: | |||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 2 | $ | 9 | $ | 6 | $ | 9 | $ | 5 | $ | 7 | $ | — | $ | — | $ | — | $ | — | $ | 1 | $ | — | |||||||||||||||||||||||||
Interest cost | 7 | 16 | 6 | 15 | 7 | 11 | 2 | 1 | 2 | 1 | 2 | 1 | |||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (10 | ) | (19 | ) | (10 | ) | (18 | ) | (9 | ) | (13 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of prior service cost | — | — | — | — | — | — | (3 | ) | — | (3 | ) | — | (3 | ) | — | ||||||||||||||||||||||||||||||||||
Net losses | — | 3 | 1 | 4 | 1 | 3 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Settlements or Curtailments cost (income) | — | — | 1 | 2 | 1 | 1 | — | — | — | — | (1 | ) | — | ||||||||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | (1 | ) | $ | 9 | $ | 4 | $ | 12 | $ | 5 | $ | 9 | $ | (1 | ) | $ | 1 | $ | (1 | ) | $ | 1 | $ | (1 | ) | $ | 1 | |||||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income are as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net (gains) losses | $ | (4 | ) | $ | 50 | $ | (32 | ) | $ | 8 | $ | (3 | ) | $ | 27 | $ | (4 | ) | $ | — | $ | (6 | ) | $ | — | $ | 1 | $ | 1 | ||||||||||||||||||||
Prior service cost | — | — | — | — | (1 | ) | — | 3 | — | 3 | — | 1 | — | ||||||||||||||||||||||||||||||||||||
Amortization of prior service credit | — | — | — | — | — | — | — | — | — | — | 3 | — | |||||||||||||||||||||||||||||||||||||
Amortization of prior unrecognized loss | — | (3 | ) | (2 | ) | (4 | ) | (1 | ) | (3 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Other | — | (1 | ) | — | (4 | ) | — | 1 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total other Comprehensive (income) loss | $ | (4 | ) | $ | 46 | $ | (34 | ) | $ | — | $ | (5 | ) | $ | 25 | $ | (1 | ) | $ | — | $ | (3 | ) | $ | — | $ | 5 | $ | 1 | ||||||||||||||||||||
Curtailments and settlements of employee benefit plans | |||||||||||||||||||||||||||||||||||||||||||||||||
In recent years, the Company incurred curtailments and settlements of certain of its employee benefit plans. Associated with these curtailments and settlements, the Company recognized net losses of less than $1 million, $3 million, and $1 million in fiscal 2014, 2013 and 2012, respectively. Effective October 1, 2014, the Company transferred the defined benefit obligations and pension plan assets in one of its foreign defined benefit plans to a multi-employer plan. As a result of the transfer an estimated pre-tax charge of $18 million will be recorded in the first quarter of fiscal 2015. | |||||||||||||||||||||||||||||||||||||||||||||||||
Sensitivity Analysis | |||||||||||||||||||||||||||||||||||||||||||||||||
Measurement of postretirement benefit expense is based on actuarial assumptions used to value the postretirement benefit liability at the beginning of the year. Assumed health care cost trend rates have an effect on the amounts reported for the health care plans. The fiscal 2014 weighted-average assumed health care cost trend rate is 7.5% for U.S. plans and for foreign plans. The ultimate weighted-average health care cost trend rate has been designated as 5% for U.S. plans and 6.6% for foreign plans, and is anticipated to be achieved during 2018 and 2016, respectively. A one percentage point change in the 2014 assumed health care cost trend rate would have the following effects: | |||||||||||||||||||||||||||||||||||||||||||||||||
1-Percentage-Point | |||||||||||||||||||||||||||||||||||||||||||||||||
Increase | Decrease | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Effect on postretirement benefit obligation | $ | — | $ | 3 | $ | (1 | ) | $ | (2 | ) | |||||||||||||||||||||||||||||||||||||||
Plan Assets | |||||||||||||||||||||||||||||||||||||||||||||||||
The Company’s defined benefit pension plans weighted-average asset allocations at September 30, 2014 and 2013, by asset category, are as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||
Pension Assets | |||||||||||||||||||||||||||||||||||||||||||||||||
September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||||||||||||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | 55 | % | 37 | % | 63 | % | 41 | % | |||||||||||||||||||||||||||||||||||||||||
Debt securities | 45 | % | 47 | % | 37 | % | 54 | % | |||||||||||||||||||||||||||||||||||||||||
Cash and other securities | — | 16 | % | — | 5 | % | |||||||||||||||||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||||||||||||||||
To develop the expected long-term rate of return on plan assets assumption, the Company used a capital asset pricing model. The model considers the current level of expected returns on risk-free investments comprised of government bonds, the historical level of the risk premium associated with the other asset classes in which the portfolio is invested, and the expectations for future returns for each asset class. The expected return for each asset class was then weighted based on the target asset allocation to develop the expected long-term rate of return for each plan. | |||||||||||||||||||||||||||||||||||||||||||||||||
Cabot’s investment strategy for each of its defined benefit plans in the U.S. and abroad is generally based on a set of investment objectives and policies that cover time horizons and risk tolerance levels consistent with plan liabilities. Periodic studies are performed to determine the asset mix that will meet pension obligations at a reasonable cost to the Company. The assets of the defined benefit plans are comprised principally of investments in equity and high quality fixed income securities, which are broadly diversified across the capitalization and style spectrum and are managed using both active and passive strategies. The weighted average target asset allocation for the U.S. plans is 60% in equity and 40% in fixed income and for the foreign plans is 36% in equity, 55% in fixed income, 4% in real estate and 5% in cash and other securities. | |||||||||||||||||||||||||||||||||||||||||||||||||
For pension plan assets classified as Level 1 measurements (measured using quoted prices in active markets), total fair value is either the price of the most recent trade at the time of the market close or the official close price, as defined by the exchange on which the asset is most actively traded on the last trading day of the period, multiplied by the number of units held without consideration of transaction costs. | |||||||||||||||||||||||||||||||||||||||||||||||||
For pension plan assets classified as Level 2 measurements, where the security is frequently traded in less active markets, fair value is based on the closing price at the end of the period; where the security is less frequently traded, fair value is based on the price a dealer would pay for the security or similar securities, adjusted for any terms specific to that asset or liability. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance/quality checks. | |||||||||||||||||||||||||||||||||||||||||||||||||
The fair value of the Company’s pension plan assets at September 30, 2014 and 2013 by asset category is as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||
Quoted Prices in | Significant | Total | Quoted Prices in | Significant | Total | ||||||||||||||||||||||||||||||||||||||||||||
Active Markets | Observable | Active Markets | Observable | ||||||||||||||||||||||||||||||||||||||||||||||
for Identical | Inputs | for Identical | Inputs | ||||||||||||||||||||||||||||||||||||||||||||||
Assets | (Level 2) | Assets | (Level 2) | ||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) | (Level 1) | ||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash | $ | 69 | $ | — | $ | 69 | $ | 2 | $ | 1 | $ | 3 | |||||||||||||||||||||||||||||||||||||
Direct investments: | |||||||||||||||||||||||||||||||||||||||||||||||||
U.S. equity securities | 22 | — | 22 | 21 | — | 21 | |||||||||||||||||||||||||||||||||||||||||||
Non-U.S. equity securities | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Non-U.S. government bonds | — | — | — | 52 | — | 52 | |||||||||||||||||||||||||||||||||||||||||||
Non-U.S. corporate bonds | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Total direct investments | $ | 22 | $ | — | $ | 22 | $ | 73 | $ | — | $ | 73 | |||||||||||||||||||||||||||||||||||||
Investment funds: | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity funds(1) | 68 | 120 | 188 | 132 | 101 | 233 | |||||||||||||||||||||||||||||||||||||||||||
Fixed income funds(2) | 90 | 163 | 253 | 93 | 111 | 204 | |||||||||||||||||||||||||||||||||||||||||||
Real estate funds(3) | — | 9 | 9 | — | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||
Common and collective investment trust funds(4) | — | 1 | 1 | — | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||
Money market funds | — | — | — | 3 | — | 3 | |||||||||||||||||||||||||||||||||||||||||||
Total investment funds | 158 | $ | 293 | $ | 451 | $ | 228 | $ | 214 | $ | 442 | ||||||||||||||||||||||||||||||||||||||
Alternative investments: | |||||||||||||||||||||||||||||||||||||||||||||||||
Insurance contracts(5) | — | 13 | 13 | — | 12 | 12 | |||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Total alternative investments | — | $ | 13 | $ | 13 | $ | — | $ | 12 | $ | 12 | ||||||||||||||||||||||||||||||||||||||
Total pension plan assets | $ | 249 | $ | 306 | $ | 555 | $ | 303 | $ | 227 | $ | 530 | |||||||||||||||||||||||||||||||||||||
(1) | The equity funds asset class includes funds that invest in U.S. equities as well as equity securities issued by companies incorporated, listed or domiciled in countries in developed and/or emerging markets. These companies may be in the small-, mid- or large-cap categories. | ||||||||||||||||||||||||||||||||||||||||||||||||
(2) | The fixed income funds asset class includes investments in high quality funds. High quality fixed income funds primarily invest in low risk U.S. and non-U.S. government securities, investment-grade corporate bonds, mortgages and asset-backed securities. A significant portion of the fixed income funds include investment in long-term bond funds. | ||||||||||||||||||||||||||||||||||||||||||||||||
(3) | The real estate funds asset class includes funds that primarily invest in entities which are principally engaged in the ownership, acquisition, development, financing, sale and/or management of income-producing real estate properties, both commercial and residential. These funds typically seek long-term growth of capital and current income that is above average relative to public equity funds. | ||||||||||||||||||||||||||||||||||||||||||||||||
-4 | The investment objective of the portfolio of this common and collective investment trust is to achieve long-term, total return in excess of the MSCI World Index Benchmark by investing in equity securities of companies worldwide, emphasizing those with above-average potential for capital appreciation. | ||||||||||||||||||||||||||||||||||||||||||||||||
-5 | Insurance contracts held by the Company’s non-U.S. plans are issued by well-known, highly rated insurance companies. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||||||||||||
Note N. Stock-Based Compensation | |||||||||||||||||||||||||||||
The Company has established equity compensation plans that provide stock-based compensation to eligible employees. The 2009 Long-Term Incentive Plan (the “2009 Plan”), which was approved by Cabot’s stockholders on March 12, 2009 and amended on March 8, 2012, authorizes the issuance of approximately 8.9 million shares of common stock. This is the Company’s only equity incentive plan under which awards may currently be made to employees. | |||||||||||||||||||||||||||||
The terms of awards made under Cabot’s equity compensation plans are generally determined by the Compensation Committee of Cabot’s Board of Directors. The 2009 Plan allows for grants of stock options, restricted stock, restricted stock units and other stock-based awards to employees. The awards made in fiscal 2014, 2013 and 2012 under the 2009 Plan consist of grants of stock options, time-based restricted stock units, performance-based restricted stock units, and restricted stock units that will be settled in cash. The options were issued with an exercise price equal to 100% of the market price of Cabot’s common stock on the date of grant, vest over a three year period (30% on each of the first and second anniversaries of the date of grant and 40% on the third anniversary of the date of grant) and have a ten-year term. The restricted stock units vest three years from the date of the grant. The number of shares issuable, if any, when a performance-based restricted stock unit award vests will depend on the degree of achievement (threshold, target or maximum performance) of the corporate performance metrics for each year within the three-year performance period of the award. Accordingly, future compensation costs associated with outstanding awards of performance-based restricted stock units may increase or decrease based on the probability of the Company achieving the performance metrics. | |||||||||||||||||||||||||||||
As of September 30, 2014, there were 42,110 outstanding time-based and performance-based restricted stock units which will be settled by the payment of cash. Compensation expense related to these awards is remeasured throughout the vesting period and until ultimate settlement of the award. Cumulative compensation expense and the associated liability is recorded equal to the fair value of Cabot common stock multiplied by the applicable vesting percentage. The Company recorded liabilities associated with these cash settled awards of $1 million at both September 30, 2014 and 2013. | |||||||||||||||||||||||||||||
Stock-based employee compensation expense was $9 million, $8 million and $10 million, after tax, for fiscal 2014, 2013 and 2012, respectively. The Company recognized the full impact of its stock-based employee compensation expense in the Consolidated Statements of Operations for fiscal 2014, 2013 and 2012 and did not capitalize any such costs on the Consolidated Balance Sheets because those that qualified for capitalization were not material. The following table presents stock-based compensation expenses included in the Company’s Consolidated Statements of Operations: | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Cost of sales | $ | 5 | $ | 4 | $ | 5 | |||||||||||||||||||||||
Selling and administrative expenses | 8 | 7 | 9 | ||||||||||||||||||||||||||
Research and technical expenses | 1 | 1 | 1 | ||||||||||||||||||||||||||
Stock-based compensation expense | 14 | 12 | 15 | ||||||||||||||||||||||||||
Income tax benefit | (5 | ) | (4 | ) | (5 | ) | |||||||||||||||||||||||
Net stock-based compensation expense | $ | 9 | $ | 8 | $ | 10 | |||||||||||||||||||||||
As of September 30, 2014, Cabot has $12 million and $3 million of total unrecognized compensation cost related to restricted stock units and options, respectively, granted under the Company’s equity incentive plans. These costs are expected to be recognized over a weighted-average period of 1.2 years and 0.8 years for restricted stock units and options, respectively. | |||||||||||||||||||||||||||||
Equity Incentive Plan Activity | |||||||||||||||||||||||||||||
The following table summarizes the total stock option, restricted stock, and restricted stock unit activity in the equity incentive plans for fiscal 2014: | |||||||||||||||||||||||||||||
Stock Options | Restricted Stock | Restricted Stock Units | |||||||||||||||||||||||||||
Total | Weighted | Weighted | Restricted | Weighted | Restricted | Weighted | |||||||||||||||||||||||
Options | Average | Average | Stock | Average | Stock | Average | |||||||||||||||||||||||
Exercise | Grant Date | Grant Date | Units(1) | Grant Date | |||||||||||||||||||||||||
Price | Fair Value | Fair Value | Fair Value | ||||||||||||||||||||||||||
(Shares in thousands) | |||||||||||||||||||||||||||||
Outstanding at September 30, 2013 | 1,623 | $ | 26.93 | $ | 8.71 | 1 | $ | 9.56 | 1,039 | $ | 34.39 | ||||||||||||||||||
Granted | 203 | 47.62 | 18.37 | — | — | 322 | 47.63 | ||||||||||||||||||||||
Performance-based adjustment(2) | — | — | — | — | — | (25 | ) | 39.76 | |||||||||||||||||||||
Exercised / Vested(3) | (403 | ) | 22.18 | 6.49 | (1 | ) | 9.56 | (344 | ) | 34.79 | |||||||||||||||||||
Cancelled / Forfeited | (2 | ) | 35.25 | 12.46 | — | — | (46 | ) | 36.99 | ||||||||||||||||||||
Outstanding at September 30, 2014 | 1,421 | 31.22 | 10.71 | — | — | 946 | 39.31 | ||||||||||||||||||||||
Exercisable at September 30, 2014 | 895 | 26.34 | |||||||||||||||||||||||||||
Vested and expected to vest(4) | 1,411 | 31.16 | |||||||||||||||||||||||||||
(1) | The number granted represents the number of shares issuable upon vesting of time-based restricted stock units and performance-based restricted stock units, assuming the Company performs at the target performance level in each year of the three-year performance period. | ||||||||||||||||||||||||||||
(2) | Represents the number of units cancelled upon vesting of outstanding performance-based restricted stock units, based on the Company’s actual performance against the performance targets for the 2014 performance period of the outstanding units. | ||||||||||||||||||||||||||||
(3) | Exercised / Vested includes 122,119 restricted stock units that vested during the year ended September 30, 2014 but were withheld at the request of the award recipient to cover withholding taxes associated with the vesting. These units were added back to the shares available for future issuance under our 2009 Long-Term Incentive Plan. | ||||||||||||||||||||||||||||
(4) | Stock options vested and expected to vest in the future, net of estimated forfeitures, have a weighted average remaining contractual life of 6.7 years. | ||||||||||||||||||||||||||||
Stock Options | |||||||||||||||||||||||||||||
The following table summarizes information related to the outstanding and vested options on September 30, 2014: | |||||||||||||||||||||||||||||
Total | Exercisable | Vested and | |||||||||||||||||||||||||||
Options | Options | Expected | |||||||||||||||||||||||||||
Outstanding | to Vest | ||||||||||||||||||||||||||||
Aggregate Intrinsic Value (in millions) | $ | 28 | $ | 22 | $ | 28 | |||||||||||||||||||||||
Weighted Average Remaining Contractual Term (in years) | 6.7 | 5.8 | 6.7 | ||||||||||||||||||||||||||
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value, based on the Company’s closing common stock price of $50.77 on September 30, 2014, which would have been received by the option holders had all option holders exercised their options and immediately sold their shares on that date. | |||||||||||||||||||||||||||||
The intrinsic value of options exercised during fiscal 2014, 2013 and 2012 was $12 million, $5 million and $9 million, respectively, and the Company received cash of $9 million, $5 million and $9 million, respectively, from these exercises. | |||||||||||||||||||||||||||||
The Company uses the Black-Scholes option-pricing model to estimate the fair value of the options at the grant date. The estimated weighted average grant date fair values of options granted during fiscal 2014, 2013 and 2012 was $18.36, $12.51, and $11.64 per option, respectively. The fair values on the grant date were calculated using the following weighted-average assumptions: | |||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Expected stock price volatility | 45 | % | 46 | % | 45 | % | |||||||||||||||||||||||
Risk free interest rate | 1.9 | % | 0.9 | % | 1.3 | % | |||||||||||||||||||||||
Expected life of options (years) | 6 | 6 | 6 | ||||||||||||||||||||||||||
Expected annual dividends per year | $ | 0.8 | $ | 0.8 | $ | 0.72 | |||||||||||||||||||||||
The expected stock price volatility assumption was determined using the historical volatility of the Company’s common stock over the expected life of the option. The expected term reflects the anticipated time period between the measurement date and the exercise date or post-vesting cancellation date. | |||||||||||||||||||||||||||||
Restricted Stock Units | |||||||||||||||||||||||||||||
The value of restricted stock unit awards is the closing stock price at the date of the grant. The estimated weighted average grant date fair values of restricted stock unit awards granted during fiscal 2014, 2013 and 2012 was $47.63, $35.28 and $33.15, respectively. The intrinsic value of restricted stock units (meaning the fair value of the units on the date of vest) that vested during fiscal 2014, 2013 and 2012 were $17 million, $16 million and $1 million, respectively. | |||||||||||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||||||||||
The fair value of restricted stock awards is derived by calculating the difference between the share price and the purchase price at the date of the grant. There were no restricted stock awards granted during fiscal 2014, 2013 or 2012. The intrinsic value of restricted stock that vested during each of fiscal 2014, 2013 and 2012 was less than $1 million. | |||||||||||||||||||||||||||||
Supplemental 401(k) Plan | |||||||||||||||||||||||||||||
Cabot’s Deferred Compensation and Supplemental Retirement Plan (“SERP 401(k)”) provides benefits to highly compensated employees in circumstances in which the maximum limits established under ERISA and the Internal Revenue Code prevent them from receiving all of the Company matching and retirement contributions that would otherwise be provided under the qualified 401(k) plan. The SERP 401(k) is non-qualified and unfunded. Contributions under the SERP 401(k) are treated as if invested in Cabot common stock. The majority of the distributions made under the SERP 401(k) are required to be paid with shares of Cabot common stock. The remaining distributions, which relate to certain grandfathered accounts, will be paid in cash based on the market price of Cabot common stock at the time of distribution. The aggregate value of the accounts that will be paid out in stock, which is equivalent to approximately 146,000 and 133,000 shares of Cabot common stock as of September 30, 2014 and 2013, respectively, is reflected at historic cost in stockholders’ equity, and the aggregate value of the accounts that will be paid in cash, which is $1 million as of both September 30, 2014 and 2013, is reflected in other long-term liabilities and marked-to-market quarterly. |
Restructuring
Restructuring | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||||||||||
Restructuring | ' | ||||||||||||||||||||||||
Note O. Restructuring | |||||||||||||||||||||||||
Cabot’s restructuring activities were recorded in the Consolidated Statements of Operations as follows: | |||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Cost of sales | $ | 12 | $ | 28 | $ | 13 | |||||||||||||||||||
Selling and administrative expenses | 17 | 7 | 2 | ||||||||||||||||||||||
Research and technical expenses | — | — | — | ||||||||||||||||||||||
Total | $ | 29 | $ | 35 | $ | 15 | |||||||||||||||||||
Details of these restructuring activities and the related reserves for fiscal 2014 and 2013 were as follows: | |||||||||||||||||||||||||
Severance | Environmental | Asset | Asset | Other | Total | ||||||||||||||||||||
and | Remediation | Impairment | Sales | ||||||||||||||||||||||
Employee | and | ||||||||||||||||||||||||
Benefits | Accelerated | ||||||||||||||||||||||||
Depreciation | |||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Reserve at September 30, 2012 | $ | 2 | $ | 1 | $ | — | $ | — | $ | 2 | $ | 5 | |||||||||||||
Charges | 11 | 1 | 19 | — | 4 | 35 | |||||||||||||||||||
Costs charged against assets and other | — | — | (19 | ) | — | (2 | ) | (21 | ) | ||||||||||||||||
Cash paid | (6 | ) | — | — | — | (3 | ) | (9 | ) | ||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | |||||||||||||||||||
Reserve at September 30, 2013 | $ | 7 | $ | 2 | $ | — | $ | — | $ | 1 | $ | 10 | |||||||||||||
Charges | 18 | 1 | 4 | 1 | 5 | 29 | |||||||||||||||||||
Costs charged against assets and other | — | — | (4 | ) | — | — | (4 | ) | |||||||||||||||||
Cash paid | (8 | ) | (1 | ) | — | (1 | ) | (5 | ) | (15 | ) | ||||||||||||||
Foreign currency translation adjustment | (1 | ) | — | — | — | — | (1 | ) | |||||||||||||||||
Reserve at September 30, 2014 | $ | 16 | $ | 2 | $ | — | $ | — | $ | 1 | $ | 19 | |||||||||||||
Business Service Center Transition | |||||||||||||||||||||||||
In January 2014, the Company announced its intention to open a new Europe, Middle East and Africa (“EMEA”) business service center in Riga, Latvia, and to close its Leuven, Belgium site, subject to the Belgian information and consultation process, which was successfully completed in June 2014. These actions were developed following an extensive evaluation of the Company’s business service capabilities in the EMEA region and a determination that the future EMEA business service center will enable the Company to provide the highest quality of service at the most competitive cost. | |||||||||||||||||||||||||
The Company has recorded $18 million of charges during fiscal 2014 related to this plan, comprised primarily of employee severance costs. The Company expects that the majority of actions related to the transition of the business service center will be completed by the end of fiscal 2015 and result in total cash charges of approximately $25 million comprised of $18 million of severance charges and $7 million of other transition costs including training costs and redundant salaries. Through September 30, 2014, the Company has made $3 million in cash payments related to this plan, mainly related to transition costs, and expects to make cash payments of approximately $22 million, comprised of $18 million of severance costs and $4 million of other transition costs, in fiscal 2015. | |||||||||||||||||||||||||
As of September 30, 2014, Cabot has $14 million of accrued restructuring costs in the Consolidated Balance Sheet related to this closure which is mainly comprised of accrued severance charges. | |||||||||||||||||||||||||
Closure of Port Dickson, Malaysia Manufacturing Facility | |||||||||||||||||||||||||
On April 26, 2013, the Company announced that the Board of its carbon black joint venture, Cabot Malaysia Sdn. Bhd. (“CMSB”), decided to cease production at its Port Dickson, Malaysia facility. The facility ceased production in June 2013. The Company holds a 50.1 percent equity share in CMSB. The decision, which affected approximately 90 carbon black employees, was driven by the facility’s manufacturing inefficiencies and raw materials costs. | |||||||||||||||||||||||||
During fiscal 2014 and fiscal 2013, the Company recorded pre-tax restructuring charges related to this plan of $2 million and $18 million, respectively. These pre-tax restructuring costs were comprised mainly of accelerated depreciation and asset write-offs of $15 million, severance charges of $2 million, site demolition, clearing and environmental remediation charges of $2 million, and other closure related charges of $1 million. CMSB’s net income or loss is attributable to Cabot Corporation and to the noncontrolling interest in the joint venture. The portion of the charges that are allocable to the noncontrolling interest in CMSB (49.9%) are recorded within Net income (loss) attributable to noncontrolling interests, net of tax, in the Consolidated Statements of Operations. | |||||||||||||||||||||||||
The majority of actions related to closure of the plant have been completed in fiscal 2014 with future environmental charges of $3 million forecasted for fiscal 2015. | |||||||||||||||||||||||||
Cumulative net cash outlays related to this plan are expected to be approximately $8 million comprised primarily of $5 million for site demolition, clearing and environmental remediation, $2 million for severance, and $1 million for other closure related charges. Through September 30, 2014, CMSB has made approximately $4 million in cash payments related to this plan related mainly to severance and site demolition and clearing costs. | |||||||||||||||||||||||||
CMSB expects to make net cash payments of $4 million during fiscal 2015 and thereafter mainly comprised of site demolition, clearing and environmental remediation costs. These amounts exclude any proceeds that may be received from the sale of land or other manufacturing assets. | |||||||||||||||||||||||||
As of September 30, 2014, Cabot has $1 million of accrued restructuring costs in the Consolidated Balance Sheets related to this closure which is mainly comprised of accrued environmental and other charges. | |||||||||||||||||||||||||
Other Activities | |||||||||||||||||||||||||
The Company has recorded pre-tax charges of approximately $8 million, $13 million and $1 million during fiscal 2014, 2013 and 2012, respectively, related to restructuring activities at several other locations. Fiscal 2014 charges are comprised of accelerated depreciation and asset write-offs of $5 million and severance charges of $3 million. Fiscal 2013 costs are comprised of $8 million of severance charges, $3 million of accelerated depreciation and asset write-offs and $2 million of other expenses. Fiscal 2012 is comprised mainly of severance charges. The Company anticipates that it will record additional charges of $2 million in fiscal 2015 related to these actions. | |||||||||||||||||||||||||
Through September 30, 2014, Cabot has made cash payments of $18 million related to these activities and expects to pay $3 million in fiscal 2015 mainly for severance and other closure related costs at the impacted locations. | |||||||||||||||||||||||||
As of September 30, 2014, Cabot has $1 million of accrued severance and other closure related costs in the Consolidated Balance Sheets related to these activities. | |||||||||||||||||||||||||
Previous Actions and Sites Pending Sale | |||||||||||||||||||||||||
Beginning in fiscal 2009, the Company entered into several different restructuring plans which have been substantially completed, pending the sale of former manufacturing sites in Thane, India, Stanlow, U.K. and Hong Kong. The Company has incurred total cumulative pre-tax charges of approximately $163 million related to these plans through September 30, 2014, comprised of $67 million for severance charges, $65 million for accelerated depreciation and asset impairments, $10 million for environmental, demolition and site clearing costs, and $22 million of other closure related charges partially offset by gains on asset sales of $1 million. These amounts do not include any gain that may be recorded if the Company successfully sells its land rights and certain manufacturing related assets in India and Hong Kong or its land in the U.K. | |||||||||||||||||||||||||
Pre-tax restructuring expenses related to these plans were approximately $1 million, $3 million and $14 million during fiscal 2014, 2013 and 2012, respectively. Fiscal 2014 charges are comprised mainly of environmental charges and other post closure costs. Fiscal 2013 charges are comprised mainly of severance, accelerated depreciation and other expenses. Fiscal 2012 charges are comprised of $6 million of accelerated depreciation and impairment charges, $3 million of severance charges, $3 million of environmental, demolition and site clearing costs and $2 million of net other charges. | |||||||||||||||||||||||||
Since fiscal 2009, Cabot has made net cash payments of $85 million related to these plans and expects to pay approximately $3 million in fiscal 2015 and thereafter. The remaining payments consist mainly of environmental and other closure related costs. These amounts do not include any proceeds that may be received if the Company successfully sells its land rights and certain manufacturing related assets in India and Hong Kong or its land in the U.K. | |||||||||||||||||||||||||
As of September 30, 2014, Cabot has $3 million of accrued environmental, severance and other closure related costs in the Consolidated Balance Sheets related to these activities. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Accumulated Other Comprehensive (Loss) Income | ' | ||||||||||||||||
Note P. Accumulated Other Comprehensive (Loss) Income | |||||||||||||||||
Comprehensive income combines net income and other comprehensive income items, which are reported as components of stockholders’ equity in the accompanying Consolidated Balance Sheets. | |||||||||||||||||
Changes in each component of Accumulated other comprehensive (loss) income, net of tax, are as follows for fiscal 2013: | |||||||||||||||||
Currency | Unrealized | Pension and Other | Total | ||||||||||||||
Translation | Gains on | Postretirement | |||||||||||||||
Adjustment | Investment | Benefit Liability | |||||||||||||||
Adjustment | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Balance at September 30, 2012 attributable to Cabot Corporation | $ | 167 | $ | — | $ | (75 | ) | $ | 92 | ||||||||
Other comprehensive loss before reclassifications | (10 | ) | 2 | 20 | 12 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | 2 | 2 | |||||||||||||
Net other comprehensive items | 157 | 2 | (53 | ) | 106 | ||||||||||||
Less: Noncontrolling interest | 3 | — | — | 3 | |||||||||||||
Balance at September 30, 2013 attributable to Cabot Corporation | $ | 154 | $ | 2 | $ | (53 | ) | $ | 103 | ||||||||
Changes in each component of Accumulated other comprehensive (loss) income, net of tax, are as follows for fiscal 2014: | |||||||||||||||||
Currency | Unrealized | Pension and Other | Total | ||||||||||||||
Translation | Gains on | Postretirement | |||||||||||||||
Adjustment | Investment | Benefit Liability | |||||||||||||||
Adjustment | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Balance at September 30, 2013 attributable to Cabot Corporation | $ | 154 | $ | 2 | $ | (53 | ) | $ | 103 | ||||||||
Other comprehensive loss before reclassifications | (131 | ) | — | (40 | ) | (171 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | — | — | |||||||||||||
Net other comprehensive items | 23 | 2 | (93 | ) | (68 | ) | |||||||||||
Less: Noncontrolling interest | (4 | ) | — | — | (4 | ) | |||||||||||
Balance at September 30, 2014 attributable to Cabot Corporation | $ | 27 | $ | 2 | $ | (93 | ) | $ | (64 | ) | |||||||
The amounts reclassified out of Accumulated other comprehensive (loss) income and into the Statements of Operations for the fiscal year ended September 30, 2014, 2013 and 2012 are as follows: | |||||||||||||||||
Affected Line Item in the Consolidated | September 30 | ||||||||||||||||
Statements of Operations | 2014 | 2013 | 2012 | ||||||||||||||
(Dollars in Millions) | |||||||||||||||||
Pension and other postretirement benefit liability adjustment | |||||||||||||||||
Amortization of actuarial losses | Net Periodic Benefit Cost- see | $ | 3 | $ | 5 | $ | 4 | ||||||||||
Note M for details | |||||||||||||||||
Amortization of prior service cost | Net Periodic Benefit Cost- see | (3 | ) | (3 | ) | (3 | ) | ||||||||||
Note M for details | |||||||||||||||||
Total before tax | — | 2 | 1 | ||||||||||||||
Tax impact | Provision for income taxes | — | — | — | |||||||||||||
Total after tax | $ | — | $ | 2 | $ | 1 | |||||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share | ' | ||||||||||||
Note Q. Earnings Per Share | |||||||||||||
The following tables summarize the components of the basic and diluted earnings per common share computations: | |||||||||||||
Years Ended September 30 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In millions, except per share amounts) | |||||||||||||
Basic EPS: | |||||||||||||
Net income attributable to Cabot Corporation | $ | 199 | $ | 153 | $ | 388 | |||||||
Less: Dividends and dividend equivalents to participating securities | 1 | — | — | ||||||||||
Less: Undistributed earnings allocated to participating securities(1) | 1 | 1 | 3 | ||||||||||
Earnings allocated to common shareholders (numerator) | $ | 197 | $ | 152 | $ | 385 | |||||||
Weighted average common shares and participating securities outstanding | 65 | 64.4 | 64 | ||||||||||
Less: Participating securities(1) | 0.6 | 0.6 | 0.6 | ||||||||||
Adjusted weighted average common shares (denominator) | 64.4 | 63.8 | 63.4 | ||||||||||
Per share amounts—basic: | |||||||||||||
Income from continuing operations attributable to Cabot Corporation | $ | 3.04 | $ | 2.39 | $ | 2.88 | |||||||
Income (loss) from discontinued operations | 0.02 | (0.01 | ) | 3.19 | |||||||||
Net income attributable to Cabot Corporation | $ | 3.06 | $ | 2.38 | $ | 6.07 | |||||||
Diluted EPS: | |||||||||||||
Earnings allocated to common shareholders | $ | 197 | $ | 152 | $ | 385 | |||||||
Plus: Earnings allocated to participating securities | 1 | 1 | 3 | ||||||||||
Less: Adjusted earnings allocated to participating securities(2) | (1 | ) | (1 | ) | (3 | ) | |||||||
Earnings available to common shares (numerator) | $ | 197 | $ | 152 | $ | 385 | |||||||
Adjusted weighted average common shares outstanding | 64.4 | 63.8 | 63.4 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Common shares issuable(3) | 0.7 | 0.7 | 0.8 | ||||||||||
Adjusted weighted average common shares (denominator) | 65.1 | 64.5 | 64.2 | ||||||||||
Per share amounts—diluted: | |||||||||||||
Income from continuing operations attributable to Cabot Corporation | $ | 3.01 | $ | 2.37 | $ | 2.84 | |||||||
Income (loss) from discontinued operations | 0.02 | (0.01 | ) | 3.15 | |||||||||
Net income attributable to Cabot Corporation | $ | 3.03 | $ | 2.36 | $ | 5.99 | |||||||
(1) | Participating securities consist of shares of unvested restricted stock, vested restricted stock awards held by employees in which Cabot has a security interest, and unvested time-based restricted stock units. | ||||||||||||
Undistributed earnings are the earnings which remain after dividends declared during the period are assumed to be distributed to the common and participating shareholders. Undistributed earnings are allocated to common and participating shareholders on the same basis as dividend distributions. The calculation of undistributed earnings is as follows: | |||||||||||||
Years Ended September 30 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in millions) | |||||||||||||
Calculation of undistributed earnings: | |||||||||||||
Net income attributable to Cabot Corporation | $ | 199 | $ | 153 | $ | 388 | |||||||
Less: Dividends declared on common stock | 54 | 51 | 49 | ||||||||||
Less: Dividends and dividend equivalents to participating securities | 1 | — | — | ||||||||||
Undistributed earnings | $ | 144 | $ | 102 | $ | 339 | |||||||
Allocation of undistributed earnings: | |||||||||||||
Undistributed earnings allocated to common shareholders | $ | 143 | $ | 101 | $ | 336 | |||||||
Undistributed earnings allocated to participating securities | 1 | 1 | 3 | ||||||||||
Undistributed earnings | $ | 144 | $ | 102 | $ | 339 | |||||||
(2) | Undistributed earnings are adjusted for the assumed distribution of dividends to the dilutive securities, which are described in (3) below, and then reallocated to participating securities. | ||||||||||||
(3) | Represents incremental shares of common stock from the (i) assumed exercise of stock options issued under Cabot’s equity incentive plans; (ii) assumed issuance of shares to employees pursuant to the Company’s Supplemental 401(k) Plan; and (iii) assumed issuance of shares for outstanding and achieved performance-based stock unit awards issued under Cabot’s equity incentive plans using the treasury stock method. For fiscal 2014, 2013 and 2012, respectively, 197,072, 301,328 and 395,532 incremental shares of common stock were not included in the calculation of diluted earnings per share because the inclusion of these shares would have been antidilutive. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
Note R. Income Taxes | |||||||||||||
Income from continuing operations before income taxes and equity in net earnings of affiliated companies was as follows: | |||||||||||||
Years ended September 30 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in millions) | |||||||||||||
Income from continuing operations: | |||||||||||||
Domestic | $ | 50 | $ | 40 | $ | 14 | |||||||
Foreign | 258 | 170 | 232 | ||||||||||
Total | $ | 308 | $ | 210 | $ | 246 | |||||||
Tax provision (benefit) for income taxes consisted of the following: | |||||||||||||
Years ended September 30 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in millions) | |||||||||||||
U.S. federal and state: | |||||||||||||
Current | $ | (4 | ) | $ | (3 | ) | $ | (1 | ) | ||||
Deferred | (4 | ) | (6 | ) | (8 | ) | |||||||
Total | (8 | ) | (9 | ) | (9 | ) | |||||||
Foreign: | |||||||||||||
Current | 86 | 70 | 62 | ||||||||||
Deferred | 14 | (1 | ) | 2 | |||||||||
Total | 100 | 69 | 64 | ||||||||||
Total U.S. and foreign | $ | 92 | $ | 60 | $ | 55 | |||||||
The provision (benefit) for income taxes differed from the provision for income taxes as calculated using the U.S. statutory rate as follows: | |||||||||||||
Years ended September 30 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in millions) | |||||||||||||
Computed tax expense at the federal statutory rate | $ | 108 | $ | 74 | $ | 85 | |||||||
Foreign income: | |||||||||||||
Impact of taxation at different rates, repatriation and other | (29 | ) | (27 | ) | (28 | ) | |||||||
Impact of increase in valuation allowance on deferred taxes | 20 | — | — | ||||||||||
Impact of investment incentive credits | — | (1 | ) | — | |||||||||
Impact of foreign losses for which a current tax benefit is not available | 7 | 9 | 5 | ||||||||||
Impact of non-deductible net currency losses | — | 18 | — | ||||||||||
U.S. and state benefits from research and experimentation activities | — | (4 | ) | (2 | ) | ||||||||
Tax settlements | (7 | ) | (6 | ) | (2 | ) | |||||||
Reversal of state tax valuation allowance | — | — | (8 | ) | |||||||||
Nontaxable gain on existing equity investment | (10 | ) | — | — | |||||||||
Permanent differences, net | 3 | (4 | ) | 5 | |||||||||
State taxes, net of federal effect | — | 1 | — | ||||||||||
Total | $ | 92 | $ | 60 | $ | 55 | |||||||
Significant components of deferred income taxes were as follows: | |||||||||||||
September 30 | |||||||||||||
2014 | 2013 | ||||||||||||
(Dollars in millions) | |||||||||||||
Deferred tax assets: | |||||||||||||
Deferred expenses | $ | 37 | $ | 29 | |||||||||
Inventory | 11 | — | |||||||||||
Other | 20 | 28 | |||||||||||
Pension and other benefits | 74 | 71 | |||||||||||
Net operating loss carry-forwards | 171 | 187 | |||||||||||
Foreign tax credit carry-forwards | 40 | 49 | |||||||||||
R&D credit carry-forwards | 28 | 28 | |||||||||||
Other business credit carry-forwards | 38 | 32 | |||||||||||
Subtotal | 419 | 424 | |||||||||||
Valuation allowances | (186 | ) | (166 | ) | |||||||||
Total deferred tax assets | $ | 233 | $ | 258 | |||||||||
September 30 | |||||||||||||
2014 | 2013 | ||||||||||||
(Dollars in millions) | |||||||||||||
Deferred tax liabilities: | |||||||||||||
Intangible assets | $ | (37 | ) | $ | (28 | ) | |||||||
Property, plant and equipment | (143 | ) | (149 | ) | |||||||||
Total deferred tax liabilities | $ | (180 | ) | $ | (177 | ) | |||||||
In the fiscal 2014 tax provision, Cabot recorded $17 million of net discrete tax charges including a $20 million charge for a valuation allowance on deferred tax assets in a foreign jurisdiction, a $2 million charge for return to provision adjustments, a $2 million charge for interest on uncertain tax positions and a $4 charge for miscellaneous tax items, offset by an $11 million net tax benefit for tax audit settlements. | |||||||||||||
In the fiscal 2013 tax provision, Cabot recorded $3 million of net discrete tax charges including a $13 million foreign currency charge, offset by $10 million of net tax benefit related to tax settlements, renewal of the U.S. research and experimentation credit, and other miscellaneous tax items. | |||||||||||||
In the fiscal 2012 tax provision, Cabot recorded $11 million of net discrete tax benefits including an $8 million state tax benefit from the release of a valuation allowance and $3 million related to settlements and other miscellaneous tax items. | |||||||||||||
Approximately $752 million of net operating loss carryforwards (“NOLs”) and $106 million of other tax credit carryforwards remain at September 30, 2014. The benefits of these carryforwards are dependent upon taxable income during the carryforward period in the jurisdictions in which they arose. Accordingly, a valuation allowance has been provided where management has determined that it is more likely than not that the carryforwards will not be utilized. The following table provides detail surrounding the expiration dates of these carryforwards: | |||||||||||||
NOLs | Credits | ||||||||||||
(Dollars in millions) | |||||||||||||
Expiration periods | |||||||||||||
2015 to 2021 | $ | 393 | $ | 45 | |||||||||
2022 and thereafter | 65 | 37 | |||||||||||
Indefinite carry-forwards | 294 | 24 | |||||||||||
Total | $ | 752 | $ | 106 | |||||||||
As of September 30, 2014, provisions have not been made for U.S. income taxes or non-U.S. withholding taxes on approximately $1.4 billion of undistributed earnings of non-U.S. subsidiaries, as these earnings are considered indefinitely reinvested. Cabot continually reviews the financial position and forecasted cash flows of its U.S. consolidated group and foreign subsidiaries in order to reaffirm the Company’s intent and ability to continue to indefinitely reinvest earnings of its foreign subsidiaries or whether such earnings will need to be repatriated in the foreseeable future. Such review encompasses operational needs and future capital investments. From time to time, however, the Company’s intentions relative to specific indefinitely reinvested amounts change because of certain unique circumstances. These earnings could become subject to U.S. income taxes and non-U.S. withholding taxes if they were remitted as dividends, were loaned to Cabot Corporation or a U.S. subsidiary, or if Cabot should sell its stock in the subsidiaries with the reinvested earnings. | |||||||||||||
As of September 30, 2014, net deferred tax assets of $76 million are in the U.S. Management believes that the Company’s history of generating domestic profits provides adequate evidence that it is more likely than not that all of the U.S. net deferred tax assets will be realized in the normal course of business. U.S. income from continuing operations adjusted for U.S. permanent differences was a profit of $74 million for the year ended September 30, 2014 and was a cumulative profit of $189 million for the three years ended September 30, 2014 including dividends from non-U.S. subsidiaries. Realization of deferred tax assets is dependent upon future taxable income generated over an extended period of time. | |||||||||||||
As of September 30, 2014, the Company needs to generate approximately $218 million in cumulative future U.S. taxable income at various times over approximately 20 years to realize all of its net U.S. deferred tax assets. The Company reviews its forecast in relation to actual results and expected trends on a quarterly basis. Failure to achieve operating income targets may change the Company’s assessment regarding the realization of Cabot’s deferred tax assets and such change could result in a valuation allowance being recorded against some or all of the Company’s deferred tax assets. Any increase in a valuation allowance would result in additional income tax expense, lower stockholders’ equity and could have a significant impact on Cabot’s earnings in future periods. | |||||||||||||
The valuation allowances at September 30, 2014 and 2013 represent management’s best estimate of the non-realizable portion of the deferred tax assets. The valuation allowance increased by $20 million in 2014 primarily due to the uncertainty of the ultimate realization of certain future tax benefits and net operating losses generated or acquired that are included in deferred tax assets. The valuation allowance decreased by $3 million in 2013 due to the expiration and utilization of net operating carryforwards in certain tax jurisdictions. | |||||||||||||
Cabot has filed its tax returns in accordance with the tax laws in each jurisdiction and recognizes tax benefits for uncertain tax positions when the position would more likely than not be sustained based on its technical merits and recognizes measurement adjustments when needed. As of September 30, 2014, the total amount of unrecognized tax benefits was $41 million, of which $26 million was recorded in the Company’s Consolidated Balance Sheet and $15 million of deferred tax assets, principally related to state net operating loss carry-forwards, have not been recorded. In addition, accruals of $1 million and $11 million have been recorded for penalties and interest, respectively, as of September 30, 2014 and $2 million and $14 million, respectively, as of September 30, 2013. Total penalties and interest recorded in the tax provision in the Consolidated Statement of Operations was $3 million in each of fiscal years 2014, 2013, and 2012. If the unrecognized tax benefits were recognized at a given point in time, there would be approximately $35 million favorable impact on the Company’s tax provision before consideration of the impact of the potential need for valuation allowances. | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal years 2014, 2013 and 2012 is as follows: | |||||||||||||
Years ended September 30 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in millions) | |||||||||||||
Balance at beginning of the year | $ | 50 | $ | 55 | $ | 65 | |||||||
Additions based on tax provisions related to the current year | 1 | 1 | 4 | ||||||||||
Additions for tax positions of prior years | — | 2 | — | ||||||||||
Reductions of tax provisions of prior years | (1 | ) | (5 | ) | (10 | ) | |||||||
Reductions related to settlements | (5 | ) | — | — | |||||||||
Reductions from lapse of statute of limitations | (4 | ) | (3 | ) | (4 | ) | |||||||
Balance at end of the year | $ | 41 | $ | 50 | $ | 55 | |||||||
Certain Cabot subsidiaries are under audit in jurisdictions outside of the U.S. In addition, certain statutes of limitations are scheduled to expire in the near future. It is reasonably possible that a further change in the unrecognized tax benefits may occur within the next twelve months related to the settlement of one or more of these audits or the lapse of applicable statutes of limitations; however, an estimated range of the impact on the unrecognized tax benefits cannot be quantified at this time. | |||||||||||||
During fiscal 2014, the Company settled an uncertain tax benefit of $14 million, arising from losses included in cumulative translation adjustment that did not impact the effective tax rate. | |||||||||||||
Cabot files U.S. federal and state and non-U.S. income tax returns in jurisdictions with varying statutes of limitations. The 2007 through 2013 tax years generally remain subject to examination by the IRS and various tax years from 2005 through 2013 remain subject to examination by the respective state tax authorities. In significant non-U.S. jurisdictions, various tax years from 2002 through 2013 remain subject to examination by their respective tax authorities. As of September 30, 2014, Cabot’s significant non-U.S. jurisdictions include Canada, China, France, Germany, Italy, Japan, and the Netherlands. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||||||||||||||
Note S. Commitments and Contingencies | |||||||||||||||||||||||||||||
Operating Lease Commitments | |||||||||||||||||||||||||||||
Cabot leases certain transportation vehicles, warehouse facilities, office space, machinery and equipment under cancelable and non-cancelable operating leases, most of which expire within ten years and may be renewed by Cabot. Escalation clauses, lease payments dependent on existing rates/indexes and other lease concessions are included in the minimum lease payments and such lease payments are recognized on a straight-line basis over the minimum lease term. Rent expense under such arrangements for fiscal 2014, 2013 and 2012 totaled $26 million, $23 million and $15 million, respectively. Future minimum rental commitments under non-cancelable leases are as follows: | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
2015 | $ | 24 | |||||||||||||||||||||||||||
2016 | 19 | ||||||||||||||||||||||||||||
2017 | 13 | ||||||||||||||||||||||||||||
2018 | 11 | ||||||||||||||||||||||||||||
2019 | 10 | ||||||||||||||||||||||||||||
2020 and thereafter | 70 | ||||||||||||||||||||||||||||
Total future minimum rental commitments | $ | 147 | |||||||||||||||||||||||||||
Other Long-Term Commitments | |||||||||||||||||||||||||||||
Cabot has entered into long-term purchase agreements primarily for the purchase of raw materials. Under certain of these agreements, the quantity of material being purchased is fixed, but the price paid changes as market prices change. Raw materials purchased under these agreements by segment for fiscal 2014, 2013 and 2012 are as follows: | |||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Reinforcement Materials | $ | 354 | $ | 371 | $ | 312 | |||||||||||||||||||||||
Performance Materials | 43 | 34 | 47 | ||||||||||||||||||||||||||
Purification Solutions(1) | 32 | 34 | 4 | ||||||||||||||||||||||||||
Advanced Technologies | — | — | 6 | ||||||||||||||||||||||||||
Other | 3 | 2 | 1 | ||||||||||||||||||||||||||
Total | $ | 432 | $ | 441 | $ | 370 | |||||||||||||||||||||||
(1) | The year ended September 30, 2012 includes two months of purchases for Purification Solutions. | ||||||||||||||||||||||||||||
Included in the table above are raw materials purchases from noncontrolling shareholders of consolidated subsidiaries. These purchases were $241 million, $150 million and $116 million during fiscal 2014, 2013 and 2012, respectively, and accounts payable and accrued liabilities owed to noncontrolling shareholders as of September 30, 2014 and 2013, were $16 million and $11 million, respectively. | |||||||||||||||||||||||||||||
The purchase commitments for Reinforcement Materials, Performance Materials, Purification Solutions and Advanced Technologies covered by these agreements are with various suppliers and purchases are expected to take place as follows: | |||||||||||||||||||||||||||||
Payments Due by Fiscal Year | |||||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Reinforcement Materials | $ | 302 | $ | 254 | $ | 233 | $ | 226 | $ | 220 | $ | 2,308 | $ | 3,543 | |||||||||||||||
Performance Materials | 43 | 35 | 30 | 30 | 29 | 168 | 335 | ||||||||||||||||||||||
Purification Solutions | 21 | 12 | 10 | 10 | 9 | 14 | 76 | ||||||||||||||||||||||
Advanced Technologies | 2 | 1 | 1 | 1 | 1 | — | 6 | ||||||||||||||||||||||
Total | $ | 368 | $ | 302 | $ | 274 | $ | 267 | $ | 259 | $ | 2,490 | $ | 3,960 | |||||||||||||||
These commitments have been estimated using current market prices. As noted above, these will fluctuate based on the actual market price at the time of purchase. | |||||||||||||||||||||||||||||
Guarantee Agreements | |||||||||||||||||||||||||||||
Cabot has provided certain indemnities pursuant to which it may be required to make payments to an indemnified party in connection with certain transactions and agreements. In connection with certain acquisitions and divestitures, Cabot has provided routine indemnities with respect to such matters as environmental, tax, insurance, product and employee liabilities. In connection with various other agreements, including service and supply agreements with customers, Cabot has provided indemnities for certain contingencies and routine warranties. Cabot is unable to estimate the maximum potential liability for these types of indemnities as a maximum obligation is not explicitly stated in most cases and the amounts, if any, are dependent upon the outcome of future contingent events, the nature and likelihood of which cannot be reasonably estimated. The duration of the indemnities vary, and in many cases are indefinite. Cabot has not recorded any liability for these indemnities in the consolidated financial statements, except as otherwise disclosed. | |||||||||||||||||||||||||||||
Self-Insurance and Retention for Certain Contingencies | |||||||||||||||||||||||||||||
The Company is partially self-insured for certain third-party liabilities globally, as well as workers’ compensation and employee medical benefits in the United States. The third-party and workers’ compensation liabilities are managed through a wholly-owned insurance captive and the related liabilities are included in the consolidated financial statements. The employee medical obligations are managed by a third-party provider and the related liabilities are included in the consolidated financial statements. To limit Cabot’s potential liabilities for these risks, however, the Company purchases insurance from third-parties that provides individual and aggregate stop-loss protection. The aggregate self-insured liability in fiscal 2014 for combined U.S. third-party liabilities and U.S. workers’ compensation was $6 million, and the retention for medical costs in the United States is at most $225,000 per person per annum. | |||||||||||||||||||||||||||||
Contingencies | |||||||||||||||||||||||||||||
Cabot is a defendant, or potentially responsible party, in various lawsuits and environmental proceedings wherein substantial amounts are claimed or at issue. | |||||||||||||||||||||||||||||
Environmental Matters | |||||||||||||||||||||||||||||
As of September 30, 2014 and September 30, 2013, Cabot had $17 million and $5 million, respectively, reserved for environmental matters, substantially all of which is accounted for on an undiscounted basis. These environmental matters mainly relate to closed sites. These reserves represent Cabot’s best estimates of the probable costs to be incurred at those sites where costs are reasonably estimable based on the Company’s analysis of the extent of clean up required, alternative clean-up methods available, abilities of other responsible parties to contribute and its interpretation of laws and regulations applicable to each site. In fiscal 2014 and 2013, there was $4 million and $2 million in Accounts payable and accrued liabilities and $13 million and $3 million in Other liabilities, respectively, in the Consolidated Balance Sheets for environmental matters. Cabot reviews the adequacy of the reserves as circumstances change at individual sites and adjusts the reserves as appropriate. Almost all of Cabot’s environmental issues relate to sites that are mature and have been investigated and studied and, in many cases, are subject to agreed upon remediation plans. However, depending on the results of future testing, changes in risk assessment practices, remediation techniques and regulatory requirements, newly discovered conditions, and other factors, it is reasonably possible that the Company could incur additional costs in excess of environmental reserves currently recorded. Management estimates, based on the latest available information, that any such future environmental remediation costs that are reasonably possible to be in excess of amounts already recorded would be immaterial to the Company’s consolidated financial statements. | |||||||||||||||||||||||||||||
Charges for environmental expense were $15 million, $1 million, and $3 million in fiscal 2014, 2013 and 2012, respectively, which are included in Cost of sales in the Consolidated Statements of Operations. Cash payments related to these environmental matters were $3 million in fiscal 2014, and $2 million in each of fiscal 2013 and 2012. | |||||||||||||||||||||||||||||
The operation and maintenance component of the $17 million reserve for environmental matters was $7 million at September 30, 2014. Cabot expects to make payments of $4 million in fiscal 2015, $6 million in fiscal 2016, less than $1 million in each of fiscal 2017 through 2019, and a total of $4 million thereafter. | |||||||||||||||||||||||||||||
When deemed appropriate, the Company discounts its liability for environmental matters. A weighted average risk free rate of 3% was used for the environmental liability at September 30, 2014. The book value of the liabilities will be accreted up to the undiscounted liability value through interest expense over the expected period of cash flows. The accreted interest expense was less than $1 million for each of fiscal 2014, 2013 and 2012. | |||||||||||||||||||||||||||||
In November 2013, Cabot entered into a Consent Decree with the United States Environmental Protection Agency (“EPA”) and the Louisiana Department of Environmental Quality (“LDEQ”) regarding Cabot’s three carbon black manufacturing facilities in the United States. This settlement is related to EPA’s national enforcement initiative focused on the U.S. carbon black manufacturing sector alleging non-compliance with certain regulatory and permitting requirements under The Clean Air Act, including the New Source Review (“NSR”) construction permitting requirements. Pursuant to this settlement, Cabot paid a combined $975,000 civil penalty to EPA and LDEQ, will fund $450,000 in environmental mitigation projects in the three communities where the plants are located, and will install technology controls for sulfur dioxide and nitrogen oxide. The Company expects that the capital costs to install these controls will total approximately $85 million through calendar year 2020. | |||||||||||||||||||||||||||||
Other Matters | |||||||||||||||||||||||||||||
Respirator Liabilities | |||||||||||||||||||||||||||||
Cabot has exposure in connection with a safety respiratory products business that a subsidiary acquired from American Optical Corporation (“AO”) in an April 1990 asset purchase transaction. The subsidiary manufactured respirators under the AO brand and disposed of that business in July 1995. In connection with its acquisition of the business, the subsidiary agreed, in certain circumstances, to assume a portion of AO’s liabilities, including costs of legal fees together with amounts paid in settlements and judgments, allocable to AO respiratory products used prior to the 1990 purchase by the Cabot subsidiary. In exchange for the subsidiary’s assumption of certain of AO’s respirator liabilities, AO agreed to provide to the subsidiary the benefits of: (i) AO’s insurance coverage for the period prior to the 1990 acquisition and (ii) a former owner’s indemnity of AO holding it harmless from any liability allocable to AO respiratory products used prior to May 1982. | |||||||||||||||||||||||||||||
Generally, these respirator liabilities involve claims for personal injury, including asbestosis, silicosis and coal worker’s pneumoconiosis, allegedly resulting from the use of respirators that are alleged to have been negligently designed and/or labeled. Neither Cabot, nor its past or present subsidiaries, at any time manufactured asbestos or asbestos-containing products. At no time did this respiratory product line represent a significant portion of the respirator market. | |||||||||||||||||||||||||||||
The subsidiary transferred the business to Aearo Corporation (“Aearo”) in July 1995. Cabot agreed to have the subsidiary retain certain liabilities associated with exposure to asbestos and silica while using respirators prior to the 1995 transaction so long as Aearo paid, and continues to pay, Cabot an annual fee of $400,000. Aearo can discontinue payment of the fee at any time, in which case it will assume the responsibility for and indemnify Cabot against those liabilities which Cabot’s subsidiary had agreed to retain. The Company anticipates that it will continue to receive payment of the $400,000 fee from Aearo and thereby retain these liabilities for the foreseeable future. Cabot has no liability in connection with any products manufactured by Aearo after 1995. | |||||||||||||||||||||||||||||
In addition to Cabot’s subsidiary and as described above, other parties are responsible for significant portions of the costs of respirator liabilities, leaving Cabot’s subsidiary with a portion of the liability in only some of the pending cases. These parties include Aearo, AO, AO’s insurers, another former owner and its insurers and a third-party manufacturer of respirators formerly sold under the AO brand (collectively, with the Company’s subsidiary, the “Payor Group”). | |||||||||||||||||||||||||||||
As of September 30, 2014 and 2013, there were approximately 41,000 and 42,000 claimants, respectively, in pending cases asserting claims against AO in connection with respiratory products. Cabot has contributed to the Payor Group’s defense and settlement costs with respect to a percentage of pending claims depending on several factors, including the period of alleged product use. In order to quantify Cabot’s estimated share of liability for pending and future respirator liability claims, Cabot has engaged, through counsel, the assistance of Hamilton, Rabinovitz & Alschuler, Inc. (“HR&A”), a leading consulting firm in the field of tort liability valuation. The methodology used by HR&A addresses the complexities surrounding Cabot’s potential liability by making assumptions about future claimants with respect to periods of asbestos, silica and coal mine dust exposure and respirator use. Using those and other assumptions, HR&A estimates the number of future asbestos, silica and coal mine dust claims that will be filed and the related costs that would be incurred in resolving both currently pending and future claims. On this basis, HR&A then estimates the value of the share of these liabilities that reflect Cabot’s period of direct manufacture and Cabot’s contractual obligations. Based on the HR&A estimates, Cabot has recorded a $13 million reserve to accrue for its estimated share of liability for pending and future respirator claims. The Company made payments related to its respirator liability of $2 million in each of fiscal 2014, 2013 and 2012. | |||||||||||||||||||||||||||||
The Company’s current estimate of the cost of its share of existing and future respirator liability claims is based on facts and circumstances existing at this time. Developments that could affect the Company’s estimate include, but are not limited to, (i) significant changes in the number of future claims, (ii) changes in the rate of dismissals without payment of pending silica and non-malignant asbestos claims, (iii) significant changes in the average cost of resolving claims, (iv) significant changes in the legal costs of defending these claims, (v) changes in the nature of claims received, (vi) changes in the law and procedure applicable to these claims, (vii) the financial viability of members of the Payor Group, (viii) a change in the availability of AO’s insurance coverage or the indemnity provided by AO’s former owner, (ix) changes in the allocation of costs among the Payor Group and (x) a determination that the assumptions that were used to estimate the Company’s share of liability are no longer reasonable. The Company cannot determine the impact of these potential developments on its current estimate of its share of liability for existing and future claims. Accordingly, the actual amount of these liabilities for existing and future claims could be different than the reserved amount. | |||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
The Company has various other lawsuits, claims and contingent liabilities arising in the ordinary course of its business and with respect to the Company’s divested businesses. In the opinion of the Company, although final disposition of some or all of these other suits and claims may impact the Company’s consolidated financial statements in a particular period, they are not expected in the aggregate to have a material adverse effect on the Company’s consolidated financial position. |
Concentration_of_Credit_Risk
Concentration of Credit Risk | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||
Concentration of Credit Risk | ' | ||||||||
Note T. Concentration of Credit Risk | |||||||||
Credit risk represents the loss that would be recognized if counterparties failed to completely perform as contracted. Financial instruments that subject Cabot to credit risk consist principally of cash and cash equivalents, investments, trade receivables and derivatives. Cabot maintains financial instruments with major banks and financial institutions. The Company has not experienced any material credit losses related to these instruments held at these financial institutions. Furthermore, concentrations of credit risk exist for groups of customers when they have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions. | |||||||||
No customer individually represented 10% or more of consolidated net sales for fiscal 2014, 2013 and 2012. | |||||||||
Tire manufacturers comprise a significant portion of Cabot’s trade receivable balance. The accounts receivable balance for these significant customers as a group are as follows: | |||||||||
September 30 | |||||||||
2014 | 2013 | ||||||||
(Dollars in millions) | |||||||||
Tire manufacturers | $ | 311 | $ | 298 | |||||
Cabot has not experienced significant losses in the past from these customers. Cabot monitors its exposure to customers to manage potential credit losses. |
Financial_Information_by_Segme
Financial Information by Segment & Geographic Area | 12 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||
Financial Information by Segment & Geographic Area | ' | ||||||||||||||||||||||||||||
Note U. Financial Information by Segment & Geographic Area | |||||||||||||||||||||||||||||
Segment Information | |||||||||||||||||||||||||||||
The Company identifies a business as an operating segment if: i) it engages in business activities from which it may earn revenues and incur expenses; ii) its operating results are regularly reviewed by the Chief Operating Decision Maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance; and iii) it has available discrete financial information. The Company has determined that all of its businesses are operating segments. The CODM reviews financial information at the operating segment level to allocate resources and to assess the operating results and financial performance for each operating segment. Operating segments are aggregated into a reportable segment if the operating segments are determined to have similar economic characteristics and if the operating segments are similar in the following areas: i) nature of products and services; ii) nature of production processes; iii) type or class of customer for their products and services; iv) methods used to distribute the products or provide services; and v) if applicable, the nature of the regulatory environment. | |||||||||||||||||||||||||||||
The Company has four reportable segments: Reinforcement Materials, Performance Materials, Advanced Technologies and Purification Solutions. Reinforcement Materials represents the Company’s Rubber Blacks business. Purification Solutions represents the Company’s Activated Carbon business. Performance Materials is an aggregation of the Specialty Carbons and Compounds and Fumed Metal Oxides businesses, which are similar in terms of economic characteristics, nature of products, processes, customer class and product distribution methods. | |||||||||||||||||||||||||||||
The Company has combined and disclosed four of its operating segments (Specialty Fluids, Inkjet Colorants, Aerogel and Elastomer Composites) in its Advanced Technologies segment. The Security Materials business was previously included in the Advanced Technologies reportable segment. In fiscal 2014, as discussed in Note D, the Company sold its Security Materials business. Accordingly, results of the Security Materials business for all periods presented have been recast as discontinued operations. | |||||||||||||||||||||||||||||
Reportable segment operating profit (loss) before interest and taxes (“Segment EBIT”) is presented for each reportable segment in the financial information by the reportable segment table below on the line entitled Income (loss) from continuing operations before taxes. Segment EBIT excludes certain items, meaning items management does not consider representative of segment results. In addition, Segment EBIT includes Equity in earnings of affiliated companies, net of tax, the full operating results of a contractual joint venture in Purification Solutions, royalties, Net income attributable to noncontrolling interests, net of tax, and discounting charges for certain Notes receivable, but excludes Interest expense, foreign currency transaction gains and losses, interest income, dividend income, unearned revenue, the effects of LIFO accounting for inventory, general unallocated expense and unallocated corporate costs. Segment assets exclude cash, short-term investments, cost investments, income taxes receivable, deferred taxes and headquarters’ assets, which are included in unallocated and other. Expenditures for additions to long-lived assets include total equity and other investments (including available-for-sale securities) and property, plant and equipment. | |||||||||||||||||||||||||||||
In 2014, a reclassification has been made in the Purification Solutions segment information to include shipping and handling costs in Revenue from external customers in order to align the presentation with that of the Company’s other businesses. There is no impact on Segment EBIT as a result of the reclassification. Historical periods have been adjusted to reflect this reclassification. | |||||||||||||||||||||||||||||
Reinforcement Materials | |||||||||||||||||||||||||||||
Rubber blacks are used in tires and industrial products. These products have traditionally been used in the tire industry as a rubber reinforcing agent and are also used as a performance additive. In industrial products such as hoses, belts, extruded profiles and molded goods, rubber blacks are used to improve the physical performance of the product. | |||||||||||||||||||||||||||||
Performance Materials | |||||||||||||||||||||||||||||
Performance Materials is comprised of two businesses that sell the following products: specialty grades of carbon black and thermoplastic concentrates and compounds (the Specialty Carbons and Compounds business); and fumed silica, fumed alumina and dispersions thereof (the Fumed Metal Oxides business). The net sales from each of these businesses for fiscal 2014, 2013 and 2012 are as follows: | |||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Specialty Carbons and Compounds | $ | 647 | $ | 622 | $ | 664 | |||||||||||||||||||||||
Fumed Metal Oxides | 300 | 282 | 250 | ||||||||||||||||||||||||||
Total Performance Materials | $ | 947 | $ | 904 | $ | 914 | |||||||||||||||||||||||
Cabot’s specialty grades of carbon black are used to impart color, provide rheology control, enhance conductivity and static charge control, provide UV protection, enhance mechanical properties, and provide formulation flexibility through surface treatment. These products are used in a wide variety of applications, such as inks, coatings, cables, pipes, toners and electronics. In addition, Cabot manufactures and sources thermoplastic concentrates and compounds that are marketed to the plastics industry. | |||||||||||||||||||||||||||||
Fumed silica is an ultra-fine, high-purity particle used as a reinforcing, thickening, abrasive, thixotropic, suspending or anti-caking agent in a wide variety of products produced for the automotive, construction, microelectronics, and consumer products industries. These products include adhesives, sealants, cosmetics, inks, toners, silicone rubber, coatings, polishing slurries and pharmaceuticals. Fumed alumina, also an ultra-fine, high-purity particle, is used as an abrasive, absorbent or barrier agent in a variety of products, such as inkjet media, lighting, coatings, cosmetics and polishing slurries. | |||||||||||||||||||||||||||||
Advanced Technologies | |||||||||||||||||||||||||||||
The net sales from each of the Advanced Technologies businesses are as follows: | |||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Inkjet Colorants | $ | 62 | $ | 64 | $ | 66 | |||||||||||||||||||||||
Aerogel | 13 | 21 | 18 | ||||||||||||||||||||||||||
Elastomer Composites | 32 | 29 | 23 | ||||||||||||||||||||||||||
Specialty Fluids | 98 | 101 | 94 | ||||||||||||||||||||||||||
Total Advanced Technologies | $ | 205 | $ | 215 | $ | 201 | |||||||||||||||||||||||
The Inkjet Colorants business produces and sells aqueous inkjet colorants primarily to the inkjet printing market. Cabot’s inkjet colorants serve various inkjet printing applications, including commercial printing, small office/home office, and corporate office, as well as other niche applications that require a high level of dispersibility and colloidal stability. Cabot also sells inks with its pigment-based colorant dispersions into the emerging commercial printing segment for digital print. | |||||||||||||||||||||||||||||
Aerogel is a hydrophobic, silica-based particle with a high surface area that is used in a variety of thermal insulation and specialty chemical applications. Aerogel has several applications in the building and construction, oil and gas and specialty chemicals industries mainly as an insulative and thickening material for use in a variety of applications. | |||||||||||||||||||||||||||||
Cabot has developed a patented elastomer composites manufacturing process that is used to manufacture compounds of natural latex rubber and carbon black that improve abrasion/wear resistance, reduce fatigue and reduce rolling resistance compared to natural rubber/carbon black compounds made by conventional methods. The Elastomer Composites business has licensed this process to Manufacture Francaise des Pneumatiques Michelin for their exclusive use in tire applications. | |||||||||||||||||||||||||||||
The Specialty Fluids business principally produces and markets cesium formate as a drilling and completion fluid for use primarily in high pressure and high temperature oil and gas well construction. The fluid is resistant to high temperatures, minimizes damage to producing reservoirs and is readily biodegradable in accordance with testing guidelines set by the Organization for Economic Cooperation and Development. The business also manufactures and sells fine cesium chemicals that are used in a wide range of applications, including catalysts and brazing fluxes. | |||||||||||||||||||||||||||||
Purification Solutions | |||||||||||||||||||||||||||||
The Company’s activated carbon products are used for the purification of water, air, food and beverages, pharmaceuticals and other liquids and gases, as either a colorant or a decoloring agent in the production of products for food and beverage applications and as a chemical carrier in slow release applications. In gas and air applications, one of the uses of activated carbon is for the removal of mercury in flue gas streams. In certain applications, used activated carbon can be reactivated for further use by removing the contaminants from the pores of the activated carbon product. In addition to activated carbon production and reactivation, the Company also provides activated carbon solutions through on-site equipment and services, including delivery systems for activated carbon injection in coal-fired utilities, mobile water filter units and carbon reactivation services. Purification Solutions Segment EBIT includes in fiscal 2013 and 2014 an allocation of corporate administrative and functional support costs. In fiscal 2012, these allocations were reflected in unallocated corporate costs and other segment results. Revenue in fiscal 2014 includes $9 million of insurance proceeds related to business interruption and property damage insurance recoveries for operating issues the business experienced in late fiscal 2013 and early fiscal 2014. | |||||||||||||||||||||||||||||
Financial information by reportable segment is as follows: | |||||||||||||||||||||||||||||
Reinforcement | Performance | Advanced | Purification | Segment | Unallocated | Consolidated | |||||||||||||||||||||||
Materials | Materials | Technologies | Solutions | Total | and | Total | |||||||||||||||||||||||
Other(1), (3) | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Revenues from external customers(2) | $ | 2,076 | $ | 947 | $ | 205 | $ | 315 | $ | 3,543 | $ | 104 | $ | 3,647 | |||||||||||||||
Depreciation and amortization | 87 | 50 | 10 | 54 | 201 | — | 201 | ||||||||||||||||||||||
Equity in earnings of affiliated companies | (3 | ) | 1 | — | 6 | 4 | (4 | ) | — | ||||||||||||||||||||
Income (loss) from continuing operations before taxes(3) | 242 | 158 | 66 | (19 | ) | 447 | (139 | ) | 308 | ||||||||||||||||||||
Assets(4) | 1,628 | 670 | 180 | 1,389 | 3,867 | 217 | 4,084 | ||||||||||||||||||||||
Total expenditures for additions to long-lived assets(5) | 65 | 28 | 8 | 64 | 165 | 6 | 171 | ||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Revenues from external customers(2) | $ | 1,902 | $ | 904 | $ | 215 | $ | 328 | $ | 3,349 | $ | 107 | $ | 3,456 | |||||||||||||||
Depreciation and amortization | 81 | 49 | 10 | 54 | 194 | (4 | ) | 190 | |||||||||||||||||||||
Equity in earnings of affiliated companies | 9 | 2 | — | 4 | 15 | (4 | ) | 11 | |||||||||||||||||||||
Income (loss) from continuing operations before taxes(3) | 188 | 132 | 70 | (4 | ) | 386 | (176 | ) | 210 | ||||||||||||||||||||
Assets(4) | 1,512 | 688 | 185 | 1,388 | 3,773 | 460 | 4,233 | ||||||||||||||||||||||
Total expenditures for additions to long-lived assets(5) | 172 | 46 | 5 | 38 | 261 | 3 | 264 | ||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Revenues from external customers(2) | $ | 2,019 | $ | 914 | $ | 201 | $ | 61 | $ | 3,195 | $ | 96 | $ | 3,291 | |||||||||||||||
Depreciation and amortization | 82 | 47 | 12 | 8 | 149 | 5 | 154 | ||||||||||||||||||||||
Equity in earnings of affiliated companies | 9 | 1 | — | 1 | 11 | — | 11 | ||||||||||||||||||||||
Income (loss) from continuing operations before taxes(3) | 227 | 128 | 50 | 5 | 410 | (164 | ) | 246 | |||||||||||||||||||||
Assets(4) | 1,527 | 717 | 198 | 1,433 | 3,875 | 524 | 4,399 | ||||||||||||||||||||||
Total expenditures for additions to long-lived assets(5) | 163 | 87 | 16 | 350 | 616 | 6 | 622 | ||||||||||||||||||||||
(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) | Revenue from external customers that are categorized as Unallocated and Other reflects royalties, other operating revenues, external shipping and handling fees, 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. | ||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(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 | $ | (7 | ) | $ | 5 | $ | 11 | ||||||||||||||||||||||
Shipping and handling fees | 111 | 102 | 85 | ||||||||||||||||||||||||||
Total | $ | 104 | $ | 107 | $ | 96 | |||||||||||||||||||||||
(3) | Income (loss) from continuing operations before taxes that are categorized as Unallocated and Other includes: | ||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Interest expense | $ | (55 | ) | $ | (62 | ) | $ | (46 | ) | ||||||||||||||||||||
Total certain items, pre-tax(a) | (28 | ) | (54 | ) | (51 | ) | |||||||||||||||||||||||
Equity in earnings of affiliated companies, net of tax(b) | — | (11 | ) | (11 | ) | ||||||||||||||||||||||||
Unallocated corporate costs(c) | (54 | ) | (48 | ) | (56 | ) | |||||||||||||||||||||||
General unallocated expense(d) | (2 | ) | (1 | ) | — | ||||||||||||||||||||||||
Total | $ | (139 | ) | $ | (176 | ) | $ | (164 | ) | ||||||||||||||||||||
(a) | Certain items are items that management does not consider representative of operating segment results and they are, therefore, excluded from Segment EBIT. Certain items, pre-tax, for fiscal 2014 primarily include $29 million related to global restructuring activities, $7 million for acquisition and integration-related charges, $18 million for legal and environmental matters and reserves and $3 million of certain foreign currency gains recorded by foreign subsidiaries offset by a $29 million non-cash gain recognized on the Company’s pre-existing investment in NHUMO as a result of the NHUMO transaction. Certain items, pre-tax, for fiscal 2013 primarily include $35 million related to global restructuring activities, $21 million for acquisition and integration-related charges (consisting of $10 million for certain other one-time integration costs and $11 million of additional charges related to acquisition accounting adjustments for the acquired inventory) and $1 million for legal and environmental matters and reserves offset by $3 million of certain foreign currency gains recorded by foreign subsidiaries. Certain items, pre-tax, for fiscal 2012 primarily include $17 million related to global restructuring activities, $26 million for acquisition and integration-related charges (consisting of $14 million of legal and professional fees, $3 million for certain other one-time integration costs and $9 million of additional charges related to acquisition accounting adjustments for the acquired inventory), and $8 million for legal and environmental matters and reserves. | ||||||||||||||||||||||||||||
(b) | Equity in earnings 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 expense 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. | ||||||||||||||||||||||||||||
(4) | Unallocated and Other assets includes cash, marketable securities, cost investments, income taxes receivable, deferred taxes, headquarters’ assets, and current and non-current assets held for sale. | ||||||||||||||||||||||||||||
(5) | Expenditures for additions to long-lived assets include total equity and other investments (including available-for-sale securities) and property, plant and equipment. | ||||||||||||||||||||||||||||
Geographic Information | |||||||||||||||||||||||||||||
Sales are attributed to the United States and to all foreign countries based on the location from which the sale originated. Revenues from external customers and long-lived assets attributable to an individual country, other than the United States, China and The Netherlands, were not material for disclosure. | |||||||||||||||||||||||||||||
Revenues from external customers and long-lived asset information by geographic area are summarized as follows: | |||||||||||||||||||||||||||||
United States | China | The | Other Foreign | Consolidated | |||||||||||||||||||||||||
Netherlands | Countries | Total | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Years Ended September 30, | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Revenues from external customers | $ | 847 | $ | 628 | $ | 220 | $ | 1,952 | $ | 3,647 | |||||||||||||||||||
Net property, plant and equipment | $ | 496 | $ | 355 | $ | 197 | $ | 533 | $ | 1,581 | |||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Revenues from external customers | $ | 818 | $ | 558 | $ | 224 | $ | 1,856 | $ | 3,456 | |||||||||||||||||||
Net property, plant and equipment | $ | 488 | $ | 385 | $ | 211 | $ | 516 | $ | 1,600 | |||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Revenues from external customers | $ | 686 | $ | 543 | $ | 131 | $ | 1,931 | $ | 3,291 | |||||||||||||||||||
Net property, plant and equipment | $ | 481 | $ | 305 | $ | 208 | $ | 553 | $ | 1,547 | |||||||||||||||||||
Unaudited_Quarterly_Financial_
Unaudited Quarterly Financial Information | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||
Unaudited Quarterly Financial Information | ' | ||||||||||||||||||||
Note V. Unaudited Quarterly Financial Information | |||||||||||||||||||||
Unaudited financial results by quarter for fiscal 2014 and 2013 are summarized below: | |||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||
December | March | June | September | Year | |||||||||||||||||
(Dollars in millions, except per share amounts) | |||||||||||||||||||||
Fiscal 2014 | |||||||||||||||||||||
Consolidated Net Income | |||||||||||||||||||||
Net sales and other operating revenues | $ | 898 | $ | 898 | $ | 940 | $ | 911 | $ | 3,647 | |||||||||||
Gross profit | 179 | 176 | 184 | 182 | 721 | ||||||||||||||||
Selling and administrative expenses | 77 | 92 | 76 | 81 | 326 | ||||||||||||||||
Research and technical expenses | 15 | 16 | 15 | 14 | 60 | ||||||||||||||||
Income from operations | 87 | 68 | 93 | 87 | 335 | ||||||||||||||||
Net interest expense and other charges | 22 | (20 | ) | (13 | ) | (16 | ) | (27 | ) | ||||||||||||
Income from continuing operations before taxes and equity earnings of affiliated companies | 109 | 48 | 80 | 71 | 308 | ||||||||||||||||
Provision for income taxes | (24 | ) | (7 | ) | (20 | ) | (41 | ) | (92 | ) | |||||||||||
Equity in earnings of affiliated companies | 2 | (2 | ) | (2 | ) | 2 | — | ||||||||||||||
(Loss) income from discontinued operations, net of tax | (1 | ) | — | (1 | ) | 4 | 2 | ||||||||||||||
Net income | 86 | 39 | 57 | 36 | 218 | ||||||||||||||||
Net income attributable to noncontrolling interests, net of tax | 6 | 3 | 5 | 5 | 19 | ||||||||||||||||
Net income attributable to Cabot Corporation | $ | 80 | $ | 36 | $ | 52 | $ | 31 | $ | 199 | |||||||||||
Income per share—basic: | |||||||||||||||||||||
Income from continuing operations | $ | 1.25 | $ | 0.56 | $ | 0.8 | $ | 0.43 | $ | 3.04 | |||||||||||
Income from discontinued operations | (0.01 | ) | (0.01 | ) | (0.01 | ) | 0.05 | 0.02 | |||||||||||||
Net income attributable to Cabot Corporation | $ | 1.24 | $ | 0.55 | $ | 0.79 | $ | 0.48 | $ | 3.06 | |||||||||||
Income per share—diluted: | |||||||||||||||||||||
Income from continuing operations | $ | 1.24 | $ | 0.55 | $ | 0.79 | $ | 0.43 | $ | 3.01 | |||||||||||
Income from discontinued operations | (0.01 | ) | (0.01 | ) | (0.01 | ) | 0.05 | 0.02 | |||||||||||||
Net income attributable to Cabot Corporation | $ | 1.23 | $ | 0.54 | $ | 0.78 | $ | 0.48 | $ | 3.03 | |||||||||||
Quarter Ended | |||||||||||||||||||||
December | March | June | September | Year | |||||||||||||||||
(Dollars in millions, except per share amounts) | |||||||||||||||||||||
Fiscal 2013 | |||||||||||||||||||||
Consolidated Net Income | |||||||||||||||||||||
Net sales and other operating revenues | $ | 819 | $ | 840 | $ | 901 | $ | 896 | $ | 3,456 | |||||||||||
Gross profit | 147 | 143 | 176 | 167 | 633 | ||||||||||||||||
Selling and administrative expenses | 73 | 77 | 72 | 75 | 297 | ||||||||||||||||
Research and technical expenses | 17 | 16 | 17 | 18 | 68 | ||||||||||||||||
Income from operations | 57 | 50 | 87 | 74 | 268 | ||||||||||||||||
Net interest expense and other charges | (14 | ) | (13 | ) | (13 | ) | (18 | ) | (58 | ) | |||||||||||
Income from continuing operations before taxes and equity earnings of affiliated companies | 43 | 37 | 74 | 56 | 210 | ||||||||||||||||
Provision for income taxes | (20 | ) | (16 | ) | (16 | ) | (8 | ) | (60 | ) | |||||||||||
Equity in earnings of affiliated companies | 3 | 3 | 3 | 2 | 11 | ||||||||||||||||
(Loss) income from discontinued operations, net of tax | (2 | ) | (1 | ) | 1 | 1 | (1 | ) | |||||||||||||
Net income | 24 | 23 | 62 | 51 | 160 | ||||||||||||||||
Net income (loss) attributable to noncontrolling interests, net of tax | 4 | (4 | ) | 3 | 4 | 7 | |||||||||||||||
Net income attributable to Cabot Corporation | $ | 20 | $ | 27 | $ | 59 | $ | 47 | $ | 153 | |||||||||||
Income per share—basic: | |||||||||||||||||||||
Income from continuing operations | $ | 0.35 | $ | 0.43 | $ | 0.88 | $ | 0.73 | $ | 2.39 | |||||||||||
(Loss) income from discontinued operations | (0.04 | ) | (0.01 | ) | 0.04 | — | (0.01 | ) | |||||||||||||
Net income attributable to Cabot Corporation | $ | 0.31 | $ | 0.42 | $ | 0.92 | $ | 0.73 | $ | 2.38 | |||||||||||
Income per share—diluted: | |||||||||||||||||||||
Income from continuing operations | $ | 0.35 | $ | 0.43 | $ | 0.87 | $ | 0.72 | $ | 2.37 | |||||||||||
(Loss) income from discontinued operations | (0.04 | ) | (0.01 | ) | 0.03 | 0.01 | (0.01 | ) | |||||||||||||
Net income attributable to Cabot Corporation | $ | 0.31 | $ | 0.42 | $ | 0.9 | $ | 0.73 | $ | 2.36 |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Principles of Consolidation | ' | ||||||||||||
Principles of Consolidation | |||||||||||||
The consolidated financial statements include the accounts of Cabot and its wholly-owned subsidiaries and majority-owned and controlled U.S. and non-U.S. subsidiaries. Additionally, Cabot considers consolidation of entities over which control is achieved through means other than voting rights, of which there were none in the periods presented. Intercompany transactions have been eliminated in consolidation. | |||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||
Cash and Cash Equivalents | |||||||||||||
Cash equivalents include all highly liquid investments with a maturity of three months or less at date of acquisition. Cabot continually assesses the liquidity of cash equivalents and, as of September 30, 2014, has determined that they are readily convertible to cash. | |||||||||||||
Inventories | ' | ||||||||||||
Inventories | |||||||||||||
Inventories are stated at the lower of cost or market. The cost of all carbon black inventories in the U.S. is determined using the last-in, first-out (“LIFO”) method. The cost of Specialty Fluids inventories, which are classified as assets held for rent, is determined using the average cost method. The cost of other U.S. and non-U.S. inventories is determined using the first-in, first-out (“FIFO”) method. | |||||||||||||
Cabot reviews inventory for both potential obsolescence and potential declines in anticipated selling prices. In this review, the Company makes assumptions about the future demand for and market value of the inventory, and based on these assumptions estimates the amount of any obsolete, unmarketable, slow moving, or overvalued inventory. Cabot writes down the value of these inventories by an amount equal to the difference between the cost of the inventory and its estimated market value. | |||||||||||||
Investments | ' | ||||||||||||
Investments | |||||||||||||
The Company has investments in equity affiliates and marketable securities. As circumstances warrant, all investments are subject to periodic impairment reviews. Unless consolidation is required, investments in equity affiliates, where Cabot generally owns between 20% and 50% of the affiliate, are accounted for using the equity method. Cabot records its share of the equity affiliate’s results of operations based on its percentage of ownership of the affiliate. Dividends declared from equity affiliates are a return on investment and are recorded as a reduction to the equity investment value. At September 30, 2014 and 2013, Cabot had equity affiliate investments of $68 million and $119 million, respectively. Dividends declared and received from these investments were $25 million, $8 million and $6 million in fiscal 2014, 2013 and 2012, respectively. | |||||||||||||
All investments in marketable securities are classified as available-for-sale and are recorded at fair value with the corresponding unrealized holding gains or losses, net of taxes, recorded as a separate component of Other comprehensive income (loss) within stockholders’ equity. Unrealized losses that are determined to be other-than-temporary, based on current and expected market conditions, are recognized in earnings. The fair value of marketable securities is determined based on quoted market prices at the balance sheet dates. The cost of marketable securities sold is determined by the specific identification method. The Company’s investment in marketable securities was immaterial as of both September 30, 2014 and 2013. | |||||||||||||
Property, Plant and Equipment | ' | ||||||||||||
Property, Plant and Equipment | |||||||||||||
Property, plant and equipment are recorded at cost. Depreciation of property, plant and equipment is calculated using the straight-line method over the estimated useful lives. The depreciable lives for buildings, machinery and equipment, and other fixed assets are twenty to twenty-five years, ten to twenty-five years, and three to twenty-five years, respectively. The cost and accumulated depreciation for property, plant and equipment sold, retired, or otherwise disposed of are removed from the Consolidated Balance Sheets and resulting gains or losses are included in earnings in the Consolidated Statements of Operations. Expenditures for repairs and maintenance are charged to expenses as incurred. Expenditures for major renewals and betterments, which significantly extend the useful lives of existing plant and equipment, are capitalized and depreciated. | |||||||||||||
Cabot capitalizes interest costs when they are part of the historical cost of acquiring and constructing certain assets that require a period of time to prepare for their intended use. During fiscal 2014, 2013 and 2012, Cabot capitalized $3 million, $5 million and $4 million of interest costs, respectively. These amounts will be amortized over the lives of the related assets. | |||||||||||||
Intangible Assets and Goodwill | ' | ||||||||||||
Intangible Assets and Goodwill | |||||||||||||
The Company records tangible and intangible assets acquired and liabilities assumed in business combinations under the acquisition method of accounting. Amounts paid for an acquisition are allocated to the assets acquired and liabilities assumed based on their fair values at the date of acquisition. Goodwill is comprised of the purchase price of business acquisitions in excess of the fair value assigned to the net tangible and identifiable intangible assets acquired. Goodwill is not amortized, but is reviewed for impairment annually as of May 31, or when events or changes in the business environment indicate that the carrying value of the reporting unit may exceed its fair value. A reporting unit, for the purpose of the impairment test, is at or below the operating segment level, and constitutes a business for which discrete financial information is available and regularly reviewed by segment management. The separate businesses included within Performance Materials are considered separate reporting units. The goodwill balance relative to this segment is recorded in the Fumed Metal Oxides reporting unit within Performance Materials. | |||||||||||||
For the purpose of the goodwill impairment test, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If an initial qualitative assessment identifies that it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value, an additional quantitative evaluation is performed under the two-step impairment test. Alternatively, the Company may elect to proceed directly to the quantitative goodwill impairment test. If based on the quantitative evaluation the fair value of the reporting unit is less than its carrying amount, the Company performs an analysis of the fair value of all assets and liabilities of the reporting unit. If the implied fair value of the reporting unit’s goodwill is determined to be less than its carrying amount, an impairment is recognized for the difference. The fair value of a reporting unit is based on discounted estimated future cash flows. The fair value is also benchmarked against a market approach using the guideline public companies method. The assumptions used to estimate fair value include management’s best estimates of future growth rates, operating cash flows, capital expenditures and discount rates over an estimate of the remaining operating period at the reporting unit level. Should the fair value of any of the Company’s reporting units decline because of reduced operating performance, market declines, changes in the discount rate, or other indicators of impairment, charges for impairment may be necessary. Based on the Company’s most recent annual goodwill impairment test performed as of May 31, 2014, the fair values of the Reinforcement Materials and Fumed Metal Oxides reporting units were substantially in excess of their carrying values. The fair value of the Purification Solutions reporting unit exceeded its carrying value by approximately 9%. At September 30, 2014, the Purification Solutions reporting unit had the most significant goodwill balance, in the amount of $458 million. The future growth in the Purification Solutions business is highly dependent on achieving the expected volumes and margins in the activated carbon based mercury removal business. These volumes and margins are highly dependent on demand for mercury removal products and the Company’s successful realization of its anticipated share of volumes in this segment over the next 3 years. The demand for mercury removal products significantly depends on: (1) the implementation and enforcement of environmental laws and regulations, particularly those that would require U.S. based coal fired electrical utilities to reduce the quantity of air pollutants they release, including mercury, to comply with the Mercury and Air Toxics Standards that become effective beginning in April 2015 and (2) other factors such as the anticipated usage of activated carbon in the coal fired energy units. Recently, the U.S. Supreme Court agreed to consider whether the EPA appropriately considered costs in determining whether it is necessary and appropriate to regulate hazardous air pollutants emitted by electric utilities. It is not possible to predict the outcome of the Supreme Court’s review of this matter. | |||||||||||||
The Company uses assumptions and estimates in determining the fair value of assets acquired and liabilities assumed in a business combination. The determination of the fair value of intangible assets requires the use of significant judgment with regard to assumptions used in the valuation model. The Company estimates the fair value of identifiable acquisition-related intangible assets principally based on projections of cash flows that will arise from these assets. The projected cash flows are discounted to determine the fair value of the assets at the dates of acquisition. | |||||||||||||
Definite-lived intangible assets, which are comprised of customer relationships and developed technologies, are amortized over their estimated useful lives and are reviewed for impairment when indication of potential impairment exists, such as a significant reduction in cash flows associated with the assets. The Company evaluates indefinite-lived intangible assets, which are comprised of the trademarks of Purification Solutions, for impairment annually or when events occur or circumstances change that may reduce the fair value of the asset below its carrying amount. The annual review is performed as of May 31. The Company may first perform a qualitative assessment to determine whether it is necessary to perform the quantitative impairment test or bypass the qualitative assessment and proceed directly to performing the quantitative impairment test. The quantitative impairment test is based on discounted estimated future cash flows. The assumptions used to estimate fair value include management’s best estimates of future growth rates and discount rates over an estimate of the remaining operating period at the unit of accounting level. These future growth rates depend on achieving the expected volumes and pricing levels of the products of Purification Solutions. | |||||||||||||
Assets Held for Rent | ' | ||||||||||||
Assets Held for Rent | |||||||||||||
Assets held for rent represent Specialty Fluids cesium formate product that is available to customers in the normal course of business. Assets held for rent are stated at average cost. | |||||||||||||
Asset Retirement Obligations | ' | ||||||||||||
Asset Retirement Obligations | |||||||||||||
Cabot estimates incremental costs for special handling, removal and disposal of materials that may or will give rise to conditional asset retirement obligations (“ARO”) and then discounts the expected costs back to the current year using a credit adjusted risk free rate. Cabot recognizes ARO liabilities and costs when the timing and/or settlement can be reasonably estimated. The ARO reserves were $15 million and $16 million at September 30, 2014 and 2013, respectively. | |||||||||||||
Impairment of Long-Lived Assets | ' | ||||||||||||
Impairment of Long-Lived Assets | |||||||||||||
Cabot’s long-lived assets primarily include property, plant and equipment, long-term investments, and assets held for rent and sale. The carrying values of long-lived assets are reviewed for impairment whenever events or changes in business circumstances indicate that the carrying amount of an asset may not be recoverable. To test for impairment of assets we generally use a probability-weighted estimate of the future undiscounted net cash flows of the assets over their remaining lives to determine if the value of the asset is recoverable. Long-lived assets are grouped with other assets and liabilities at the lowest level for which independent identifiable cash flows are determinable. Cabot’s estimates reflect management’s assumptions about selling prices, production and sales volumes, costs and market conditions over an estimate of the remaining operating period. If an impairment is indicated, the asset is written down to fair value. If the asset does not have a readily determinable market value, a discounted cash flow model may be used to determine the fair value of the asset. The key inputs to the discounted cash flow would be the same as the undiscounted cash flow noted above, with the addition of the discount rate used. In circumstances when an asset does not have separate identifiable cash flows, an impairment charge is recorded when Cabot no longer intends to use the asset. | |||||||||||||
Foreign Currency Translation | ' | ||||||||||||
Foreign Currency Translation | |||||||||||||
The functional currency of the majority of Cabot’s foreign subsidiaries is the local currency in which the subsidiary operates. Assets and liabilities of foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at the balance sheet dates. Income and expense items are translated at average monthly exchange rates during the year. Unrealized currency translation adjustments are included as a separate component of Accumulated other comprehensive (loss) income within stockholders’ equity. | |||||||||||||
Realized and unrealized foreign currency gains and losses arising from transactions denominated in currencies other than the subsidiary’s functional currency are reflected in earnings with the exception of (i) intercompany transactions considered to be of a long-term investment nature; and (ii) foreign currency borrowings designated as net investment hedges. Gains or losses arising from these transactions are included as a component of other comprehensive income. In fiscal 2014, 2013 and 2012, net foreign currency transaction losses of $2 million, gains of $2 million, and losses of $2 million, respectively, are included in Other income (expense) in the Consolidated Statements of Operations as part of continuing operations. | |||||||||||||
Financial Instruments | ' | ||||||||||||
Financial Instruments | |||||||||||||
Cabot’s financial instruments consist primarily of cash and cash equivalents, accounts and notes receivable, investments, notes receivable from the sale of a business, accounts payable and accrued liabilities, short-term and long-term debt, and derivative instruments. The carrying values of Cabot’s financial instruments approximate fair value with the exception of fixed rate long-term debt, which is recorded at amortized cost. The fair values of the Company’s financial instruments are based on quoted market prices, if such prices are available. In situations where quoted market prices are not available, the Company relies on valuation models to derive fair value. Such valuation takes into account the ability of the financial counterparty to perform. | |||||||||||||
Cabot uses derivative financial instruments primarily for purposes of hedging exposures to fluctuations in foreign currency exchange rates, which exist as part of its on-going business operations. Cabot does not enter into derivative contracts for speculative purposes, nor does it hold or issue any derivative contracts for trading purposes. All derivatives are recognized on the Consolidated Balance Sheets at fair value. Where Cabot has a legal right to offset derivative settlements under a master netting agreement with a counterparty, derivatives with that counterparty are presented on a net basis. The changes in the fair value of derivatives are recorded in either earnings or Accumulated other comprehensive (loss) income, depending on whether or not the instrument is designated as part of a hedge transaction and, if designated as part of a hedge transaction, the type of hedge transaction. The gains or losses on derivative instruments reported in Accumulated other comprehensive (loss) income are reclassified to earnings in the period in which earnings are affected by the underlying hedged item. The ineffective portion of all hedges is recognized in earnings during the period in which the ineffectiveness occurs. | |||||||||||||
In accordance with Cabot’s risk management strategy, the Company may enter into certain derivative instruments that may not be designated as hedges for hedge accounting purposes. Although these derivatives are not designated as hedges, the Company believes that such instruments are closely correlated with the underlying exposure, thus managing the associated risk. The Company records in earnings the gains or losses from changes in the fair value of derivative instruments that are not designated as hedges. Cash movements associated with these instruments are presented in the Consolidated Statement of Cash Flows as Cash Flows from Operating Activities because the derivatives are designed to mitigate risk to the Company’s cash flow from operations. The cash flows related to the principal of these instruments are presented in the Cash Flows from Financing Activities section of the Consolidated Statement of Cash Flows. | |||||||||||||
Revenue Recognition | ' | ||||||||||||
Revenue Recognition | |||||||||||||
Cabot recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. Cabot generally is able to ensure that products meet customer specifications prior to shipment. If the Company is unable to determine that the product has met the specified objective criteria prior to shipment or if title has not transferred because of sales terms, the revenue is considered “unearned” and is deferred until the revenue recognition criteria are met. | |||||||||||||
Shipping and handling charges related to sales transactions are recorded as sales revenue when billed to customers or included in the sales price. | |||||||||||||
The following table shows the relative size of the revenue recognized in each of the Company’s reportable segments | |||||||||||||
Years ended September 30 | |||||||||||||
2014 | 2013 | 2012(1) | |||||||||||
Reinforcement Materials | 58 | % | 57 | % | 63 | % | |||||||
Performance Materials | 27 | % | 27 | % | 29 | % | |||||||
Advanced Technologies | 6 | % | 6 | % | 6 | % | |||||||
Purification Solutions | 9 | % | 10 | % | 2 | % | |||||||
(1) | Fiscal 2012 includes two months of revenue for Purification Solutions, which the Company acquired on July 31, 2012. | ||||||||||||
Cabot derives the substantial majority of its revenues from the sale of products in Reinforcement Materials and Performance Materials. Revenue from these products is typically recognized when the product is shipped and title and risk of loss have passed to the customer. The Company offers certain of its customers cash discounts and volume rebates as sales incentives. The discounts and volume rebates are recorded as a reduction in sales at the time revenue is recognized and are estimated based on historical experience and contractual obligations. Cabot periodically reviews the assumptions underlying its estimates of discounts and volume rebates and adjusts its revenues accordingly. | |||||||||||||
Revenue in Advanced Technologies, excluding the Specialty Fluids business, is typically recognized when the product is shipped and title and risk of loss have passed to the customer. Depending on the nature of the contract with the customer, a portion of the revenue may be recognized using proportional performance. | |||||||||||||
A significant portion of the revenue in the Specialty Fluids business, included in Advanced Technologies, arises from the rental of cesium formate. This revenue is recognized throughout the rental period based on the contracted rental terms. Customers are also billed and revenue is recognized, typically at the end of the job, for cesium formate product that is not returned. The Company also generates revenues from cesium formate sold outside of a rental process and revenue is recognized upon delivery of the fluid. | |||||||||||||
Revenue in Purification Solutions is typically recognized when the product is shipped and title and risk of loss have passed to the customer. For major activated carbon injection systems projects, revenue is recognized using the percentage-of-completion method. | |||||||||||||
Cost of Sales | ' | ||||||||||||
Cost of Sales | |||||||||||||
Cost of sales consists of the cost of raw and packaging materials, direct manufacturing costs, depreciation, internal transfer costs, inspection costs, inbound and outbound freight and shipping and handling costs, plant purchasing and receiving costs and other overhead expenses necessary to manufacture the products. | |||||||||||||
Accounts and Notes Receivable | ' | ||||||||||||
Accounts and Notes Receivable | |||||||||||||
Trade receivables are recorded at the invoiced amount and generally do not bear interest. Trade receivables in China may at certain times be settled with the receipt of bank issued non-interest bearing notes. These notes totaled 193 million Chinese Renminbi (“RMB”) ($31 million) and 148 million RMB ($24 million) as of September 30, 2014 and 2013, respectively, and are included in accounts and notes receivable. Cabot periodically sells a portion of the trade receivables in China and other customer receivables at a discount and such sales are accounted for as asset sales. The Company does not have any continuing involvement with the notes after the sale. The difference between the proceeds from the sale and the carrying value of the receivables is recognized as a loss on the sale of receivables and is included in Other income (expense) in the accompanying Consolidated Statements of Operations. During fiscal 2014, 2013 and 2012, the Company recorded charges of $3 million, $4 million, and $2 million, respectively, for the sale of these receivables. | |||||||||||||
Cabot maintains allowances for doubtful accounts based on an assessment of the collectability of specific customer accounts, the aging of accounts receivable and other economic information on both a historical and prospective basis. Customer account balances are charged against the allowance when it is probable the receivable will not be recovered. There were no material changes in the allowance for any of the years presented. There is no material off-balance sheet credit exposure related to customer receivable balances. | |||||||||||||
Notes Receivable from Sales of business | ' | ||||||||||||
Notes Receivable from Sales of business | |||||||||||||
The Company’s Notes receivable from sale of business are derived from the sale of the Supermetals business to Global Advanced Metals Pty Ltd., an Australian company (“GAM”) as discussed in Note D. The notes were carried at amortized cost and the carrying value was $214 million at September 30, 2013. During fiscal 2014, Cabot received the final payment on these notes in the amount of $215 million. | |||||||||||||
Stock-Based Compensation | ' | ||||||||||||
Stock-based Compensation | |||||||||||||
Cabot recognizes compensation expense for stock-based awards granted to employees using the fair value method. Under the fair value recognition provisions, stock-based compensation cost is measured at the grant date based on the fair value of the award, and is recognized as expense over the service period, which generally represents the vesting period, and includes an estimate of the awards that will be forfeited, and an estimate of what level of performance the Company will achieve for Cabot’s performance-based stock awards. Cabot calculates the fair value of its stock options using the Black-Scholes option pricing model. The fair value of restricted stock units is determined using the closing price of Cabot stock on the day of the grant. | |||||||||||||
Selling and Administrative Expenses | ' | ||||||||||||
Selling and Administrative Expenses | |||||||||||||
Selling and administrative expenses consist of salaries and fringe benefits of sales and office personnel, general office expenses and other expenses not directly related to manufacturing operations. | |||||||||||||
Research and Technical Expenses | ' | ||||||||||||
Research and Technical Expenses | |||||||||||||
Research and technical expenses include salaries, equipment and material expenditures, and contractor fees and are expensed as incurred. | |||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes | |||||||||||||
Deferred income taxes are determined based on the estimated future tax effects of differences between financial statement carrying amounts and the tax bases of existing assets and liabilities. Deferred tax assets are recognized to the extent that realization of those assets is considered to be more likely than not. | |||||||||||||
A valuation allowance is established for deferred taxes when it is more likely than not that all or a portion of the deferred tax assets will not be realized. Provisions are made for the U.S. income tax liability and additional non-U.S. taxes on the undistributed earnings of non-U.S. subsidiaries, except for amounts Cabot has designated to be indefinitely reinvested. | |||||||||||||
Cabot records benefits for uncertain tax positions based on an assessment of whether the position is more likely than not to be sustained by the taxing authorities. If this threshold is not met, no tax benefit of the uncertain tax position is recognized. If the threshold is met, the tax benefit that is recognized is the largest amount that is greater than 50% likely of being realized upon ultimate settlement. This analysis presumes the taxing authorities’ full knowledge of the positions taken and all relevant facts, but does not consider the time value of money. The Company also accrues for interest and penalties on its uncertain tax positions and includes such charges in its income tax provision in the Consolidated Statements of Operations | |||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||
Accumulated Other Comprehensive Income | |||||||||||||
Accumulated other comprehensive (loss) income, which is included as a component of stockholders’ equity, includes unrealized gains or losses on available-for-sale marketable securities and derivative instruments, currency translation adjustments in foreign subsidiaries, translation adjustments on foreign equity securities and minimum pension liability adjustments. | |||||||||||||
Environmental Costs | ' | ||||||||||||
Environmental Costs | |||||||||||||
Cabot accrues environmental costs when it is probable that a liability has been incurred and the amount can be reasonably estimated. When a single liability amount cannot be reasonably estimated, but a range can be reasonably estimated, Cabot accrues the amount that reflects the best estimate within that range or the low end of the range if no estimate within the range is better. The amount accrued reflects Cabot’s assumptions about remediation requirements at the contaminated site, the nature of the remedy, the outcome of discussions with regulatory agencies and other potentially responsible parties at multi-party sites, and the number and financial viability of other potentially responsible parties. Cabot discounts certain of its long-term environmental liabilities to reflect the time value of money if the amount of the liability and the amount and timing of cash payments for the liability are fixed and reliably determinable. The liability will be discounted at a rate that will produce an amount at which the liability theoretically could be settled in an arm’s length transaction with a third party. This discounted rate may not exceed the risk-free rate for maturities comparable to those of the liability. Cabot does not reduce its estimated liability for possible recoveries from insurance carriers. Proceeds from insurance carriers are recorded when realized by either the receipt of cash or a contractual agreement. | |||||||||||||
Use of Estimates | ' | ||||||||||||
Use of Estimates | |||||||||||||
The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States requires management to make certain estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Segment Reporting Revenue Percentage | ' | ||||||||||||
The following table shows the relative size of the revenue recognized in each of the Company’s reportable segments | |||||||||||||
Years ended September 30 | |||||||||||||
2014 | 2013 | 2012 (1) | |||||||||||
Reinforcement Materials | 58 | % | 57 | % | 63 | % | |||||||
Performance Materials | 27 | % | 27 | % | 29 | % | |||||||
Advanced Technologies | 6 | % | 6 | % | 6 | % | |||||||
Purification Solutions | 9 | % | 10 | % | 2 | % | |||||||
(1) | Fiscal 2012 includes two months of revenue for Purification Solutions, which the Company acquired on July 31, 2012. |
Acquisition_of_NHUMO_Tables
Acquisition of NHUMO (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||
Components and Allocation of Purchase Price | ' | ||||||||||||
The following table presents the components and allocation of the purchase price, including the measurement period adjustments: | |||||||||||||
At Acquisition Date | Measurement | At Acquisition Date | |||||||||||
(October 31, 2013) | Period | (As adjusted at | |||||||||||
Adjustments | September 30, 2014) | ||||||||||||
(Dollars in millions) | |||||||||||||
Assets | |||||||||||||
Cash | $ | 7 | $ | — | $ | 7 | |||||||
Accounts receivable | 33 | — | 33 | ||||||||||
Inventories | 14 | — | 14 | ||||||||||
Property, plant and equipment | 48 | — | 48 | ||||||||||
Other non-current assets | 1 | — | 1 | ||||||||||
Intangible assets | 57 | 6 | 63 | ||||||||||
Goodwill | 51 | (6 | ) | 45 | |||||||||
Total assets acquired | 211 | — | 211 | ||||||||||
Liabilities | |||||||||||||
Accounts payable, accruals and other liabilities | (18 | ) | (2 | ) | (20 | ) | |||||||
Deferred tax liabilities—long-term | (31 | ) | 2 | (29 | ) | ||||||||
Total liabilities assumed | (49 | ) | — | (49 | ) | ||||||||
Net assets acquired | $ | 162 | $ | — | $ | 162 | |||||||
Cash consideration paid | $ | 80 | |||||||||||
Fair value of redeemable preferred stock | 28 | ||||||||||||
Previously held equity interest in NHUMO | 54 | ||||||||||||
Total | $ | 162 | |||||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||
Components of Discontinued Operations | ' | ||||||||||||
The following table summarizes the results from discontinued operations: | |||||||||||||
Years Ended September 30 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in millions) | |||||||||||||
Net sales and other operating revenues | $ | 5 | $ | 7 | $ | 55 | |||||||
(Loss) income from operations before income taxes | (3 | ) | (5 | ) | 20 | ||||||||
Provision for (benefit from) income taxes on operations | 1 | 2 | (7 | ) | |||||||||
(Loss) income from operations, net of tax | $ | (2 | ) | $ | (3 | ) | $ | 13 | |||||
Gain (loss) on sale of discontinued operations | 7 | (2 | ) | 300 | |||||||||
(Provision for) benefit from income taxes on gain (loss) on sale | (3 | ) | 4 | (109 | ) | ||||||||
Gain on sale of discontinued operations, net of tax | 4 | 2 | 191 | ||||||||||
Income (loss) from discontinued operations, net of tax | $ | 2 | $ | (1 | ) | $ | 204 | ||||||
Summary of Assets and Liabilities Held for Sale | ' | ||||||||||||
The following table summarizes the assets and the liabilities held for sale in the Company’s Consolidated Balance Sheet as of September 30, 2013: | |||||||||||||
September 30, 2013 | |||||||||||||
(in millions) | |||||||||||||
Assets | |||||||||||||
Inventories | $ | 3 | |||||||||||
Other current assets | 1 | ||||||||||||
Total current assets held for sale | $ | 4 | |||||||||||
Property, plant and equipment, net | 5 | ||||||||||||
Goodwill | 2 | ||||||||||||
Intangible assets, net | 2 | ||||||||||||
Total noncurrent assets held for sale | $ | 9 | |||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Components of Company's Inventories | ' | ||||||||
Inventories, net of LIFO, obsolete, unmarketable and slow moving reserves, are as follows: | |||||||||
September 30 | |||||||||
2014 | 2013 | ||||||||
(Dollars in millions) | |||||||||
Raw materials | $ | 111 | $ | 100 | |||||
Work in process | 2 | 2 | |||||||
Finished goods | 341 | 309 | |||||||
Other | 44 | 44 | |||||||
Total | $ | 498 | $ | 455 | |||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Components of Property, Plant and Equipment | ' | ||||||||
Property, plant and equipment consists of the following: | |||||||||
September 30 | |||||||||
2014 | 2013 | ||||||||
(Dollars in millions) | |||||||||
Land and land improvements | $ | 132 | $ | 138 | |||||
Buildings | 536 | 507 | |||||||
Machinery and equipment | 2,593 | 2,504 | |||||||
Other | 233 | 236 | |||||||
Construction in progress | 216 | 278 | |||||||
Total property, plant and equipment | 3,710 | 3,663 | |||||||
Less: accumulated depreciation | (2,129 | ) | (2,063 | ) | |||||
Net property, plant and equipment | $ | 1,581 | $ | 1,600 | |||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Goodwill Balances | ' | ||||||||||||||||||||||||
The carrying amount of goodwill attributable to each reportable segment with goodwill balances and the changes in those balances during the years ended September 30, 2014 and 2013 are as follows: | |||||||||||||||||||||||||
Reinforcement | Performance | Purification | Total | ||||||||||||||||||||||
Materials | Materials | Solutions | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Balance at September 30, 2012 | $ | 28 | $ | 11 | $ | 439 | $ | 478 | |||||||||||||||||
Measurement period adjustments(1) | — | — | 22 | 22 | |||||||||||||||||||||
Foreign currency impact | (3 | ) | — | 5 | 2 | ||||||||||||||||||||
Balance at September 30, 2013 | $ | 25 | $ | 11 | $ | 466 | $ | 502 | |||||||||||||||||
Goodwill acquired(2) | 45 | — | — | 45 | |||||||||||||||||||||
Foreign currency impact | (2 | ) | (1 | ) | (8 | ) | (11 | ) | |||||||||||||||||
Balance at September 30, 2014 | $ | 68 | $ | 10 | $ | 458 | $ | 536 | |||||||||||||||||
(1) | Measurement period adjustments relate to the acquisition of Purification Solutions in July 2012. | ||||||||||||||||||||||||
(2) | Goodwill acquired relates to the NHUMO transaction as described in Note C. | ||||||||||||||||||||||||
Schedule of Intangible Assets | ' | ||||||||||||||||||||||||
The following table provides information regarding the Company’s intangible assets: | |||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Intangible | Carrying | Amortization | Intangible | ||||||||||||||||||||
Value | Assets | Value | Assets | ||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Intangible assets with finite lives | |||||||||||||||||||||||||
Developed technology | $ | 152 | $ | (16 | ) | $ | 136 | $ | 154 | $ | (9 | ) | $ | 145 | |||||||||||
Customer relationships(1) | 171 | (17 | ) | 154 | 113 | (7 | ) | 106 | |||||||||||||||||
Total intangible assets, finite lives | $ | 323 | $ | (33 | ) | $ | 290 | $ | 267 | $ | (16 | ) | $ | 251 | |||||||||||
Trademarks, indefinite lives | 57 | — | 57 | 57 | — | 57 | |||||||||||||||||||
Total intangible assets | $ | 380 | $ | (33 | ) | $ | 347 | $ | 324 | $ | (16 | ) | $ | 308 | |||||||||||
(1) | The change in the gross carrying value of the Customer relationships intangible asset is primarily due to the NHUMO transaction as described in Note C. |
Accounts_Payable_Accrued_Liabi1
Accounts Payable, Accrued Liabilities and Other Liabilities (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Components of Accounts Payable and Accrued Liabilities | ' | ||||||||
Accounts payable and accrued liabilities included in current liabilities consist of the following: | |||||||||
September 30 | |||||||||
2014 | 2013 | ||||||||
(Dollars in millions) | |||||||||
Accounts payable | $ | 351 | $ | 398 | |||||
Accrued employee compensation | 48 | 41 | |||||||
Other accrued liabilities | 113 | 95 | |||||||
Total | $ | 512 | $ | 534 | |||||
Components of Other Long-Term Liabilities | ' | ||||||||
Other long-term liabilities consist of the following: | |||||||||
September 30 | |||||||||
2014 | 2013 | ||||||||
(Dollars in millions) | |||||||||
Employee benefit plan liabilities | $ | 174 | $ | 149 | |||||
Non-current tax liabilities | 33 | 47 | |||||||
Other accrued liabilities | 84 | 69 | |||||||
Total | $ | 291 | $ | 265 | |||||
Debt_and_Other_Obligations_Tab
Debt and Other Obligations (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Schedule of Long-Term Obligations | ' | ||||||||||||
The Company’s long-term obligations, the fiscal year in which they mature and their respective interest rates are summarized below: | |||||||||||||
September 30 | |||||||||||||
2014 | 2013 | ||||||||||||
(Dollars in millions) | |||||||||||||
Variable Rate Debt: | |||||||||||||
$750 million Revolving Credit Facility, expires 2016 | $ | — | $ | — | |||||||||
Chinese Renminbi Notes, due through 2016, 6.15%—6.77% | 28 | 47 | |||||||||||
Total variable rate debt | 28 | 47 | |||||||||||
Fixed Rate Debt: | |||||||||||||
5% Notes due 2017 | $ | 300 | $ | 300 | |||||||||
2.55% Notes due 2018 | 250 | 250 | |||||||||||
3.7% Notes due 2022 | 350 | 350 | |||||||||||
Medium Term Notes: | |||||||||||||
Notes due 2019, 7.42% | 30 | 30 | |||||||||||
Notes due 2022, 8.35%—8.47% | 15 | 15 | |||||||||||
Notes due 2028, 6.57%—7.28% | 8 | 8 | |||||||||||
Total Medium Term Notes | $ | 53 | $ | 53 | |||||||||
ESOP Note, 8.29% | — | 2 | |||||||||||
Chinese Renminbi Notes, due through 2018, 4.63%—6.15% | 31 | 16 | |||||||||||
Total fixed rate debt | 984 | 971 | |||||||||||
Capital lease obligations, due through 2031 | 17 | 18 | |||||||||||
Unamortized debt discount | (1 | ) | (2 | ) | |||||||||
Total debt | 1,028 | 1,034 | |||||||||||
Less current portion of long-term debt | (24 | ) | (14 | ) | |||||||||
Total long-term debt | $ | 1,004 | $ | 1,020 | |||||||||
Schedule of Future Years Payment | ' | ||||||||||||
The aggregate principal amounts of long-term debt and capital lease obligations due in each of the five years from fiscal 2015 through 2019 are as follows: | |||||||||||||
Fiscal Years Ending | Principal payments | Payments on | Total | ||||||||||
on long-term | Capital Lease | ||||||||||||
debt | Obligations | ||||||||||||
(Dollars in millions) | |||||||||||||
2015 | $ | 23 | $ | 4 | $ | 27 | |||||||
2016 | 7 | 4 | 11 | ||||||||||
2017 | 314 | 4 | 318 | ||||||||||
2018 | 265 | 3 | 268 | ||||||||||
2019 | 30 | 3 | 33 | ||||||||||
Thereafter | 373 | 21 | 394 | ||||||||||
Less: executory costs and interest | — | (22 | ) | (22 | ) | ||||||||
Total | $ | 1,012 | $ | 17 | $ | 1,029 | |||||||
Derivatives_Tables
Derivatives (Tables) (Forward Foreign Currency Contracts [Member]) | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Forward Foreign Currency Contracts [Member] | ' | ||||||||
Schedule of Derivatives Foreign Currency | ' | ||||||||
The following table provides details of the derivatives held as of September 30, 2014 and 2013 to manage foreign currency risk. | |||||||||
Notional Amount | |||||||||
Description | Borrowing | September 30, 2014 | September 30, 2013 | Hedge | |||||
Designation | |||||||||
Forward Foreign Currency | N/A | USD 32 million | USD 31 million | No designation | |||||
Contracts (1) | |||||||||
(1) | Cabot’s forward foreign exchange contracts are denominated primarily in the British pound sterling, Brazilian real, Chinese renminbi, Czech koruna and Indian rupee. |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Change in Benefit Obligations and Change in Plan Assets | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
The following provides information about benefit obligations, plan assets, the funded status and weighted-average assumptions of the defined benefit pension and postretirement benefit plans: | |||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Change in Benefit Obligations: | |||||||||||||||||||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 170 | $ | 439 | $ | 195 | $ | 423 | $ | 55 | $ | 17 | $ | 64 | $ | 18 | |||||||||||||||||||||||||||||||||
Service cost | 2 | 9 | 6 | 9 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Interest cost | 7 | 16 | 6 | 15 | 2 | 1 | 2 | 1 | |||||||||||||||||||||||||||||||||||||||||
Plan participants’ contribution | — | 2 | — | 2 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Foreign currency exchange rate changes | — | (28 | ) | — | — | — | — | — | (1 | ) | |||||||||||||||||||||||||||||||||||||||
Loss (gain) from changes in actuarial assumptions | 6 | 75 | (19 | )(1) | 12 | (3 | ) | — | (6 | ) | — | ||||||||||||||||||||||||||||||||||||||
Benefits paid(2) | (11 | ) | (18 | ) | (11 | ) | (17 | ) | (4 | ) | (1 | ) | (5 | ) | (1 | ) | |||||||||||||||||||||||||||||||||
Settlements or curtailment gain | — | (7 | ) | (7 | ) | (2 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Acquisition / business combination | — | 3 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Divestiture of Supermetals business | — | — | — | (5 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Other | (1 | ) | — | — | 2 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Benefit obligation at end of year | $ | 173 | $ | 491 | $ | 170 | $ | 439 | $ | 50 | $ | 17 | $ | 55 | $ | 17 | |||||||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Change in Plan Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 155 | $ | 375 | $ | 149 | $ | 356 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Actual return on plan assets | 21 | 41 | 17 | 22 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Employer contribution | 3 | 12 | — | 13 | 4 | 1 | 5 | — | |||||||||||||||||||||||||||||||||||||||||
Plan participants’ contribution | — | 2 | — | 2 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Foreign currency exchange rate changes | — | (20 | ) | — | 4 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Benefits paid(2) | (11 | ) | (18 | ) | (10 | ) | (17 | ) | (4 | ) | (1 | ) | (5 | ) | — | ||||||||||||||||||||||||||||||||||
Settlements | — | (4 | ) | — | (1 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Acquisition / business combination | — | 1 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Divestiture of Supermetals business | — | — | — | (3 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Expenses paid from assets | (1 | ) | (1 | ) | (1 | ) | (1 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 167 | $ | 388 | $ | 155 | $ | 375 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Funded status | $ | (6 | ) | $ | (103 | ) | $ | (15 | ) | $ | (64 | ) | $ | (50 | ) | $ | (17 | ) | $ | (55 | ) | $ | (17 | ) | |||||||||||||||||||||||||
Recognized liability | $ | (6 | ) | $ | (103 | ) | $ | (15 | ) | $ | (64 | ) | $ | (50 | ) | $ | (17 | ) | $ | (55 | ) | $ | (17 | ) | |||||||||||||||||||||||||
-1 | During fiscal 2013, the Company approved the freezing of the U.S. pension plan that resulted in the remeasurement of the plan assets and liabilities. The remeasurement decreased the net pension obligation of the plan, which is included within the Other liabilities caption on the Consolidated Balance Sheets, by $19 million and increased Accumulated other comprehensive (loss) income by $13 million, net of tax. The impact to the Company’s Net periodic benefit cost was less than $1 million. | ||||||||||||||||||||||||||||||||||||||||||||||||
-2 | Included in this amount is $7 million that the Company paid directly to the participants in its defined benefit plans in both fiscal 2014 and 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||
Assumptions Used to Determine Pension Benefit Obligations | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Pension Assumptions and Strategy | |||||||||||||||||||||||||||||||||||||||||||||||||
The following assumptions were used to determine the pension benefit obligations at September 30: | |||||||||||||||||||||||||||||||||||||||||||||||||
Assumptions as of September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||||||||||||||||||||||||||||
Actuarial assumptions as of the year-end measurement date: | |||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4 | % | 3 | % | 4.5 | % | 3.8 | % | 3.5 | % | 3.6 | % | |||||||||||||||||||||||||||||||||||||
Rate of increase in compensation | N/A | 2.8 | % | 3 | % | 3.1 | % | 3.5 | % | 3.1 | % | ||||||||||||||||||||||||||||||||||||||
Actuarial assumptions used to determine net periodic benefit cost during the year: | |||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4.5 | % | 3.8 | % | 3.5 | % | 3.6 | % | 4.5 | % | 4.8 | % | |||||||||||||||||||||||||||||||||||||
Expected long-term rate of return on plan assets | 7.8 | % | 5.3 | % | 7.8 | % | 5.3 | % | 7.8 | % | 5.3 | % | |||||||||||||||||||||||||||||||||||||
Rate of increase in compensation | 3 | % | 3.1 | % | 3.5 | % | 3.1 | % | 3.8 | % | 3.2 | % | |||||||||||||||||||||||||||||||||||||
Postretirement Assumptions and Strategy | |||||||||||||||||||||||||||||||||||||||||||||||||
The following assumptions were used to determine the postretirement benefit obligations at September 30: | |||||||||||||||||||||||||||||||||||||||||||||||||
Assumptions as of September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Postretirement Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||||||||||||||||||||||||||||
Actuarial assumptions as of the year-end measurement date: | |||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 3.8 | % | 3.9 | % | 4 | % | 4.4 | % | 3.3 | % | 3.9 | % | |||||||||||||||||||||||||||||||||||||
Initial health care cost trend rate | 7 | % | 7.1 | % | 7.5 | % | 7.5 | % | 8 | % | 7.4 | % | |||||||||||||||||||||||||||||||||||||
Actuarial assumptions used to determine net cost during the year: | |||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4 | % | 4.4 | % | 3.3 | % | 3.9 | % | 4.5 | % | 4.9 | % | |||||||||||||||||||||||||||||||||||||
Initial health care cost trend rate | 7.5 | % | 7.5 | % | 8 | % | 7.4 | % | 8.5 | % | 7.9 | % | |||||||||||||||||||||||||||||||||||||
Net Amounts Recognized in Consolidated Balance Sheets | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
The rates utilized are selected because they represent long-term, high quality, fixed income benchmarks that approximate the long-term nature of Cabot’s pension obligations and related payouts. | |||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net Amounts Recognized in the Consolidated Balance Sheets: | |||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent assets | $ | — | $ | 4 | $ | — | $ | 4 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Current liabilities | — | (1 | ) | — | (1 | ) | (5 | ) | — | (5 | ) | — | |||||||||||||||||||||||||||||||||||||
Noncurrent liabilities | (6 | ) | (106 | ) | (15 | ) | (67 | ) | (45 | ) | (17 | ) | (50 | ) | (17 | ) | |||||||||||||||||||||||||||||||||
Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Amounts recognized in Accumulated other comprehensive income (loss) at September 30, 2014 and 2013 were as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial (gain) loss | $ | (9 | ) | $ | 118 | $ | (4 | ) | $ | 78 | $ | (7 | ) | $ | 2 | $ | (3 | ) | $ | 3 | |||||||||||||||||||||||||||||
Net prior service (credit) | — | — | — | — | (3 | ) | — | (7 | ) | — | |||||||||||||||||||||||||||||||||||||||
Balance in accumulated other comprehensive income, pretax | $ | (9 | ) | $ | 118 | $ | (4 | ) | $ | 78 | $ | (10 | ) | $ | 2 | $ | (10 | ) | $ | 3 | |||||||||||||||||||||||||||||
Estimated Future Benefit Payments | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
The Company expects that the following benefit payments will be made to plan participants in the years from 2015 to 2024: | |||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended: | |||||||||||||||||||||||||||||||||||||||||||||||||
2015 | $ | 12 | $ | 16 | $ | 4 | $ | 1 | |||||||||||||||||||||||||||||||||||||||||
2016 | 12 | 14 | 4 | 1 | |||||||||||||||||||||||||||||||||||||||||||||
2017 | 14 | 15 | 4 | 1 | |||||||||||||||||||||||||||||||||||||||||||||
2018 | 13 | 16 | 5 | 1 | |||||||||||||||||||||||||||||||||||||||||||||
2019 | 12 | 16 | 5 | 1 | |||||||||||||||||||||||||||||||||||||||||||||
2020-2024 | 61 | 97 | 19 | 4 | |||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Defined Benefit Pension and Other Postretirement Benefit Costs | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic defined benefit pension and other postretirement benefit costs include the following components: | |||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 2 | $ | 9 | $ | 6 | $ | 9 | $ | 5 | $ | 7 | $ | — | $ | — | $ | — | $ | — | $ | 1 | $ | — | |||||||||||||||||||||||||
Interest cost | 7 | 16 | 6 | 15 | 7 | 11 | 2 | 1 | 2 | 1 | 2 | 1 | |||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (10 | ) | (19 | ) | (10 | ) | (18 | ) | (9 | ) | (13 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of prior service cost | — | — | — | — | — | — | (3 | ) | — | (3 | ) | — | (3 | ) | — | ||||||||||||||||||||||||||||||||||
Net losses | — | 3 | 1 | 4 | 1 | 3 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Settlements or Curtailments cost (income) | — | — | 1 | 2 | 1 | 1 | — | — | — | — | (1 | ) | — | ||||||||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | (1 | ) | $ | 9 | $ | 4 | $ | 12 | $ | 5 | $ | 9 | $ | (1 | ) | $ | 1 | $ | (1 | ) | $ | 1 | $ | (1 | ) | $ | 1 | |||||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, Pre-Tax | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income are as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net (gains) losses | $ | (4 | ) | $ | 50 | $ | (32 | ) | $ | 8 | $ | (3 | ) | $ | 27 | $ | (4 | ) | $ | — | $ | (6 | ) | $ | — | $ | 1 | $ | 1 | ||||||||||||||||||||
Prior service cost | — | — | — | — | (1 | ) | — | 3 | — | 3 | — | 1 | — | ||||||||||||||||||||||||||||||||||||
Amortization of prior service credit | — | — | — | — | — | — | — | — | — | — | 3 | — | |||||||||||||||||||||||||||||||||||||
Amortization of prior unrecognized loss | — | (3 | ) | (2 | ) | (4 | ) | (1 | ) | (3 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Other | — | (1 | ) | — | (4 | ) | — | 1 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total other Comprehensive (income) loss | $ | (4 | ) | $ | 46 | $ | (34 | ) | $ | — | $ | (5 | ) | $ | 25 | $ | (1 | ) | $ | — | $ | (3 | ) | $ | — | $ | 5 | $ | 1 | ||||||||||||||||||||
Sensitivity Analysis | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
A one percentage point change in the 2014 assumed health care cost trend rate would have the following effects: | |||||||||||||||||||||||||||||||||||||||||||||||||
1-Percentage-Point | |||||||||||||||||||||||||||||||||||||||||||||||||
Increase | Decrease | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
Effect on postretirement benefit obligation | $ | — | $ | 3 | $ | (1 | ) | $ | (2 | ) | |||||||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans Weighted-Average Asset Allocations | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
The Company’s defined benefit pension plans weighted-average asset allocations at September 30, 2014 and 2013, by asset category, are as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||
Pension Assets | |||||||||||||||||||||||||||||||||||||||||||||||||
September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||||||||||||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | 55 | % | 37 | % | 63 | % | 41 | % | |||||||||||||||||||||||||||||||||||||||||
Debt securities | 45 | % | 47 | % | 37 | % | 54 | % | |||||||||||||||||||||||||||||||||||||||||
Cash and other securities | — | 16 | % | — | 5 | % | |||||||||||||||||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||||||||||||||||
Fair Value of Pension Plan Assets by Asset Category | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
The fair value of the Company’s pension plan assets at September 30, 2014 and 2013 by asset category is as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||
Quoted Prices in | Significant | Total | Quoted Prices in | Significant | Total | ||||||||||||||||||||||||||||||||||||||||||||
Active Markets | Observable | Active Markets | Observable | ||||||||||||||||||||||||||||||||||||||||||||||
for Identical | Inputs | for Identical | Inputs | ||||||||||||||||||||||||||||||||||||||||||||||
Assets | (Level 2) | Assets | (Level 2) | ||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) | (Level 1) | ||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash | $ | 69 | $ | — | $ | 69 | $ | 2 | $ | 1 | $ | 3 | |||||||||||||||||||||||||||||||||||||
Direct investments: | |||||||||||||||||||||||||||||||||||||||||||||||||
U.S. equity securities | 22 | — | 22 | 21 | — | 21 | |||||||||||||||||||||||||||||||||||||||||||
Non-U.S. equity securities | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Non-U.S. government bonds | — | — | — | 52 | — | 52 | |||||||||||||||||||||||||||||||||||||||||||
Non-U.S. corporate bonds | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Total direct investments | $ | 22 | $ | — | $ | 22 | $ | 73 | $ | — | $ | 73 | |||||||||||||||||||||||||||||||||||||
Investment funds: | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity funds(1) | 68 | 120 | 188 | 132 | 101 | 233 | |||||||||||||||||||||||||||||||||||||||||||
Fixed income funds(2) | 90 | 163 | 253 | 93 | 111 | 204 | |||||||||||||||||||||||||||||||||||||||||||
Real estate funds(3) | — | 9 | 9 | — | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||
Common and collective investment trust funds(4) | — | 1 | 1 | — | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||
Money market funds | — | — | — | 3 | — | 3 | |||||||||||||||||||||||||||||||||||||||||||
Total investment funds | 158 | $ | 293 | $ | 451 | $ | 228 | $ | 214 | $ | 442 | ||||||||||||||||||||||||||||||||||||||
Alternative investments: | |||||||||||||||||||||||||||||||||||||||||||||||||
Insurance contracts(5) | — | 13 | 13 | — | 12 | 12 | |||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Total alternative investments | — | $ | 13 | $ | 13 | $ | — | $ | 12 | $ | 12 | ||||||||||||||||||||||||||||||||||||||
Total pension plan assets | $ | 249 | $ | 306 | $ | 555 | $ | 303 | $ | 227 | $ | 530 | |||||||||||||||||||||||||||||||||||||
(1) | The equity funds asset class includes funds that invest in U.S. equities as well as equity securities issued by companies incorporated, listed or domiciled in countries in developed and/or emerging markets. These companies may be in the small-, mid- or large-cap categories. | ||||||||||||||||||||||||||||||||||||||||||||||||
(2) | The fixed income funds asset class includes investments in high quality funds. High quality fixed income funds primarily invest in low risk U.S. and non-U.S. government securities, investment-grade corporate bonds, mortgages and asset-backed securities. A significant portion of the fixed income funds include investment in long-term bond funds. | ||||||||||||||||||||||||||||||||||||||||||||||||
(3) | The real estate funds asset class includes funds that primarily invest in entities which are principally engaged in the ownership, acquisition, development, financing, sale and/or management of income-producing real estate properties, both commercial and residential. These funds typically seek long-term growth of capital and current income that is above average relative to public equity funds. | ||||||||||||||||||||||||||||||||||||||||||||||||
-4 | The investment objective of the portfolio of this common and collective investment trust is to achieve long-term, total return in excess of the MSCI World Index Benchmark by investing in equity securities of companies worldwide, emphasizing those with above-average potential for capital appreciation. | ||||||||||||||||||||||||||||||||||||||||||||||||
-5 | Insurance contracts held by the Company’s non-U.S. plans are issued by well-known, highly rated insurance companies. |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||||||
Stock-Based Compensation Expenses | ' | ||||||||||||||||||||||||||||
The following table presents stock-based compensation expenses included in the Company’s Consolidated Statements of Operations: | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Cost of sales | $ | 5 | $ | 4 | $ | 5 | |||||||||||||||||||||||
Selling and administrative expenses | 8 | 7 | 9 | ||||||||||||||||||||||||||
Research and technical expenses | 1 | 1 | 1 | ||||||||||||||||||||||||||
Stock-based compensation expense | 14 | 12 | 15 | ||||||||||||||||||||||||||
Income tax benefit | (5 | ) | (4 | ) | (5 | ) | |||||||||||||||||||||||
Net stock-based compensation expense | $ | 9 | $ | 8 | $ | 10 | |||||||||||||||||||||||
Equity Incentive Plan Activity | ' | ||||||||||||||||||||||||||||
The following table summarizes the total stock option, restricted stock, and restricted stock unit activity in the equity incentive plans for fiscal 2014: | |||||||||||||||||||||||||||||
Stock Options | Restricted Stock | Restricted Stock Units | |||||||||||||||||||||||||||
Total | Weighted | Weighted | Restricted | Weighted | Restricted | Weighted | |||||||||||||||||||||||
Options | Average | Average | Stock | Average | Stock | Average | |||||||||||||||||||||||
Exercise | Grant Date | Grant Date | Units(1) | Grant Date | |||||||||||||||||||||||||
Price | Fair Value | Fair Value | Fair Value | ||||||||||||||||||||||||||
(Shares in thousands) | |||||||||||||||||||||||||||||
Outstanding at September 30, 2013 | 1,623 | $ | 26.93 | $ | 8.71 | 1 | $ | 9.56 | 1,039 | $ | 34.39 | ||||||||||||||||||
Granted | 203 | 47.62 | 18.37 | — | — | 322 | 47.63 | ||||||||||||||||||||||
Performance-based adjustment(2) | — | — | — | — | — | (25 | ) | 39.76 | |||||||||||||||||||||
Exercised / Vested(3) | (403 | ) | 22.18 | 6.49 | (1 | ) | 9.56 | (344 | ) | 34.79 | |||||||||||||||||||
Cancelled / Forfeited | (2 | ) | 35.25 | 12.46 | — | — | (46 | ) | 36.99 | ||||||||||||||||||||
Outstanding at September 30, 2014 | 1,421 | 31.22 | 10.71 | — | — | 946 | 39.31 | ||||||||||||||||||||||
Exercisable at September 30, 2014 | 895 | 26.34 | |||||||||||||||||||||||||||
Vested and expected to vest(4) | 1,411 | 31.16 | |||||||||||||||||||||||||||
(1) | The number granted represents the number of shares issuable upon vesting of time-based restricted stock units and performance-based restricted stock units, assuming the Company performs at the target performance level in each year of the three-year performance period. | ||||||||||||||||||||||||||||
(2) | Represents the number of units cancelled upon vesting of outstanding performance-based restricted stock units, based on the Company’s actual performance against the performance targets for the 2014 performance period of the outstanding units. | ||||||||||||||||||||||||||||
(3) | Exercised / Vested includes 122,119 restricted stock units that vested during the year ended September 30, 2014 but were withheld at the request of the award recipient to cover withholding taxes associated with the vesting. These units were added back to the shares available for future issuance under our 2009 Long-Term Incentive Plan. | ||||||||||||||||||||||||||||
(4) | Stock options vested and expected to vest in the future, net of estimated forfeitures, have a weighted average remaining contractual life of 6.7 years. | ||||||||||||||||||||||||||||
Stock Options Outstanding and Vested Options | ' | ||||||||||||||||||||||||||||
The following table summarizes information related to the outstanding and vested options on September 30, 2014: | |||||||||||||||||||||||||||||
Total | Exercisable | Vested and | |||||||||||||||||||||||||||
Options | Options | Expected | |||||||||||||||||||||||||||
Outstanding | to Vest | ||||||||||||||||||||||||||||
Aggregate Intrinsic Value (in millions) | $ | 28 | $ | 22 | $ | 28 | |||||||||||||||||||||||
Weighted Average Remaining Contractual Term (in years) | 6.7 | 5.8 | 6.7 | ||||||||||||||||||||||||||
Weighted-Average Assumptions | ' | ||||||||||||||||||||||||||||
The fair values on the grant date were calculated using the following weighted-average assumptions: | |||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Expected stock price volatility | 45 | % | 46 | % | 45 | % | |||||||||||||||||||||||
Risk free interest rate | 1.9 | % | 0.9 | % | 1.3 | % | |||||||||||||||||||||||
Expected life of options (years) | 6 | 6 | 6 | ||||||||||||||||||||||||||
Expected annual dividends per year | $ | 0.8 | $ | 0.8 | $ | 0.72 |
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||||||||||
Recorded Restructuring Activities | ' | ||||||||||||||||||||||||
Cabot’s restructuring activities were recorded in the Consolidated Statements of Operations as follows: | |||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Cost of sales | $ | 12 | $ | 28 | $ | 13 | |||||||||||||||||||
Selling and administrative expenses | 17 | 7 | 2 | ||||||||||||||||||||||
Research and technical expenses | — | — | — | ||||||||||||||||||||||
Total | $ | 29 | $ | 35 | $ | 15 | |||||||||||||||||||
Restructuring Activities and Related Reserves | ' | ||||||||||||||||||||||||
Details of these restructuring activities and the related reserves for fiscal 2014 and 2013 were as follows: | |||||||||||||||||||||||||
Severance | Environmental | Asset | Asset | Other | Total | ||||||||||||||||||||
and | Remediation | Impairment | Sales | ||||||||||||||||||||||
Employee | and | ||||||||||||||||||||||||
Benefits | Accelerated | ||||||||||||||||||||||||
Depreciation | |||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Reserve at September 30, 2012 | $ | 2 | $ | 1 | $ | — | $ | — | $ | 2 | $ | 5 | |||||||||||||
Charges | 11 | 1 | 19 | — | 4 | 35 | |||||||||||||||||||
Costs charged against assets and other | — | — | (19 | ) | — | (2 | ) | (21 | ) | ||||||||||||||||
Cash paid | (6 | ) | — | — | — | (3 | ) | (9 | ) | ||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | |||||||||||||||||||
Reserve at September 30, 2013 | $ | 7 | $ | 2 | $ | — | $ | — | $ | 1 | $ | 10 | |||||||||||||
Charges | 18 | 1 | 4 | 1 | 5 | 29 | |||||||||||||||||||
Costs charged against assets and other | — | — | (4 | ) | — | — | (4 | ) | |||||||||||||||||
Cash paid | (8 | ) | (1 | ) | — | (1 | ) | (5 | ) | (15 | ) | ||||||||||||||
Foreign currency translation adjustment | (1 | ) | — | — | — | — | (1 | ) | |||||||||||||||||
Reserve at September 30, 2014 | $ | 16 | $ | 2 | $ | — | $ | — | $ | 1 | $ | 19 | |||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Changes in Each Component of Accumulated Other Comprehensive (Loss) Income, Net of Tax | ' | ||||||||||||||||
Changes in each component of Accumulated other comprehensive (loss) income, net of tax, are as follows for fiscal 2013: | |||||||||||||||||
Currency | Unrealized | Pension and Other | Total | ||||||||||||||
Translation | Gains on | Postretirement | |||||||||||||||
Adjustment | Investment | Benefit Liability | |||||||||||||||
Adjustment | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Balance at September 30, 2012 attributable to Cabot Corporation | $ | 167 | $ | — | $ | (75 | ) | $ | 92 | ||||||||
Other comprehensive loss before reclassifications | (10 | ) | 2 | 20 | 12 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | 2 | 2 | |||||||||||||
Net other comprehensive items | 157 | 2 | (53 | ) | 106 | ||||||||||||
Less: Noncontrolling interest | 3 | — | — | 3 | |||||||||||||
Balance at September 30, 2013 attributable to Cabot Corporation | $ | 154 | $ | 2 | $ | (53 | ) | $ | 103 | ||||||||
Changes in each component of Accumulated other comprehensive (loss) income, net of tax, are as follows for fiscal 2014: | |||||||||||||||||
Currency | Unrealized | Pension and Other | Total | ||||||||||||||
Translation | Gains on | Postretirement | |||||||||||||||
Adjustment | Investment | Benefit Liability | |||||||||||||||
Adjustment | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Balance at September 30, 2013 attributable to Cabot Corporation | $ | 154 | $ | 2 | $ | (53 | ) | $ | 103 | ||||||||
Other comprehensive loss before reclassifications | (131 | ) | — | (40 | ) | (171 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | — | — | |||||||||||||
Net other comprehensive items | 23 | 2 | (93 | ) | (68 | ) | |||||||||||
Less: Noncontrolling interest | (4 | ) | — | — | (4 | ) | |||||||||||
Balance at September 30, 2014 attributable to Cabot Corporation | $ | 27 | $ | 2 | $ | (93 | ) | $ | (64 | ) | |||||||
Amounts Reclassified Out of Accumulated Other Comprehensive (Loss) Income | ' | ||||||||||||||||
The amounts reclassified out of Accumulated other comprehensive (loss) income and into the Statements of Operations for the fiscal year ended September 30, 2014, 2013 and 2012 are as follows: | |||||||||||||||||
Affected Line Item in the Consolidated | September 30 | ||||||||||||||||
Statements of Operations | 2014 | 2013 | 2012 | ||||||||||||||
(Dollars in Millions) | |||||||||||||||||
Pension and other postretirement benefit liability adjustment | |||||||||||||||||
Amortization of actuarial losses | Net Periodic Benefit Cost- see | $ | 3 | $ | 5 | $ | 4 | ||||||||||
Note M for details | |||||||||||||||||
Amortization of prior service cost | Net Periodic Benefit Cost- see | (3 | ) | (3 | ) | (3 | ) | ||||||||||
Note M for details | |||||||||||||||||
Total before tax | — | 2 | 1 | ||||||||||||||
Tax impact | Provision for income taxes | — | — | — | |||||||||||||
Total after tax | $ | — | $ | 2 | $ | 1 | |||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Components of Basic and Diluted Earnings Per Common Share | ' | ||||||||||||
The following tables summarize the components of the basic and diluted earnings per common share computations: | |||||||||||||
Years Ended September 30 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In millions, except per share amounts) | |||||||||||||
Basic EPS: | |||||||||||||
Net income attributable to Cabot Corporation | $ | 199 | $ | 153 | $ | 388 | |||||||
Less: Dividends and dividend equivalents to participating securities | 1 | — | — | ||||||||||
Less: Undistributed earnings allocated to participating securities(1) | 1 | 1 | 3 | ||||||||||
Earnings allocated to common shareholders (numerator) | $ | 197 | $ | 152 | $ | 385 | |||||||
Weighted average common shares and participating securities outstanding | 65 | 64.4 | 64 | ||||||||||
Less: Participating securities(1) | 0.6 | 0.6 | 0.6 | ||||||||||
Adjusted weighted average common shares (denominator) | 64.4 | 63.8 | 63.4 | ||||||||||
Per share amounts—basic: | |||||||||||||
Income from continuing operations attributable to Cabot Corporation | $ | 3.04 | $ | 2.39 | $ | 2.88 | |||||||
Income (loss) from discontinued operations | 0.02 | (0.01 | ) | 3.19 | |||||||||
Net income attributable to Cabot Corporation | $ | 3.06 | $ | 2.38 | $ | 6.07 | |||||||
Diluted EPS: | |||||||||||||
Earnings allocated to common shareholders | $ | 197 | $ | 152 | $ | 385 | |||||||
Plus: Earnings allocated to participating securities | 1 | 1 | 3 | ||||||||||
Less: Adjusted earnings allocated to participating securities(2) | (1 | ) | (1 | ) | (3 | ) | |||||||
Earnings available to common shares (numerator) | $ | 197 | $ | 152 | $ | 385 | |||||||
Adjusted weighted average common shares outstanding | 64.4 | 63.8 | 63.4 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Common shares issuable(3) | 0.7 | 0.7 | 0.8 | ||||||||||
Adjusted weighted average common shares (denominator) | 65.1 | 64.5 | 64.2 | ||||||||||
Per share amounts—diluted: | |||||||||||||
Income from continuing operations attributable to Cabot Corporation | $ | 3.01 | $ | 2.37 | $ | 2.84 | |||||||
Income (loss) from discontinued operations | 0.02 | (0.01 | ) | 3.15 | |||||||||
Net income attributable to Cabot Corporation | $ | 3.03 | $ | 2.36 | $ | 5.99 | |||||||
(1) | Participating securities consist of shares of unvested restricted stock, vested restricted stock awards held by employees in which Cabot has a security interest, and unvested time-based restricted stock units. | ||||||||||||
Calculation of Undistributed Earnings | ' | ||||||||||||
The calculation of undistributed earnings is as follows: | |||||||||||||
Years Ended September 30 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in millions) | |||||||||||||
Calculation of undistributed earnings: | |||||||||||||
Net income attributable to Cabot Corporation | $ | 199 | $ | 153 | $ | 388 | |||||||
Less: Dividends declared on common stock | 54 | 51 | 49 | ||||||||||
Less: Dividends and dividend equivalents to participating securities | 1 | — | — | ||||||||||
Undistributed earnings | $ | 144 | $ | 102 | $ | 339 | |||||||
Allocation of undistributed earnings: | |||||||||||||
Undistributed earnings allocated to common shareholders | $ | 143 | $ | 101 | $ | 336 | |||||||
Undistributed earnings allocated to participating securities | 1 | 1 | 3 | ||||||||||
Undistributed earnings | $ | 144 | $ | 102 | $ | 339 | |||||||
(2) | Undistributed earnings are adjusted for the assumed distribution of dividends to the dilutive securities, which are described in (3) below, and then reallocated to participating securities. | ||||||||||||
(3) | Represents incremental shares of common stock from the (i) assumed exercise of stock options issued under Cabot’s equity incentive plans; (ii) assumed issuance of shares to employees pursuant to the Company’s Supplemental 401(k) Plan; and (iii) assumed issuance of shares for outstanding and achieved performance-based stock unit awards issued under Cabot’s equity incentive plans using the treasury stock method. For fiscal 2014, 2013 and 2012, respectively, 197,072, 301,328 and 395,532 incremental shares of common stock were not included in the calculation of diluted earnings per share because the inclusion of these shares would have been antidilutive. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Before Income Taxes | ' | ||||||||||||
Income from continuing operations before income taxes and equity in net earnings of affiliated companies was as follows: | |||||||||||||
Years ended September 30 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in millions) | |||||||||||||
Income from continuing operations: | |||||||||||||
Domestic | $ | 50 | $ | 40 | $ | 14 | |||||||
Foreign | 258 | 170 | 232 | ||||||||||
Total | $ | 308 | $ | 210 | $ | 246 | |||||||
Provision (Benefit) for Income Taxes | ' | ||||||||||||
Tax provision (benefit) for income taxes consisted of the following: | |||||||||||||
Years ended September 30 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in millions) | |||||||||||||
U.S. federal and state: | |||||||||||||
Current | $ | (4 | ) | $ | (3 | ) | $ | (1 | ) | ||||
Deferred | (4 | ) | (6 | ) | (8 | ) | |||||||
Total | (8 | ) | (9 | ) | (9 | ) | |||||||
Foreign: | |||||||||||||
Current | 86 | 70 | 62 | ||||||||||
Deferred | 14 | (1 | ) | 2 | |||||||||
Total | 100 | 69 | 64 | ||||||||||
Total U.S. and foreign | $ | 92 | $ | 60 | $ | 55 | |||||||
Reconciliation Using U.S. Statutory Rate | ' | ||||||||||||
The provision (benefit) for income taxes differed from the provision for income taxes as calculated using the U.S. statutory rate as follows: | |||||||||||||
Years ended September 30 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in millions) | |||||||||||||
Computed tax expense at the federal statutory rate | $ | 108 | $ | 74 | $ | 85 | |||||||
Foreign income: | |||||||||||||
Impact of taxation at different rates, repatriation and other | (29 | ) | (27 | ) | (28 | ) | |||||||
Impact of increase in valuation allowance on deferred taxes | 20 | — | — | ||||||||||
Impact of investment incentive credits | — | (1 | ) | — | |||||||||
Impact of foreign losses for which a current tax benefit is not available | 7 | 9 | 5 | ||||||||||
Impact of non-deductible net currency losses | — | 18 | — | ||||||||||
U.S. and state benefits from research and experimentation activities | — | (4 | ) | (2 | ) | ||||||||
Tax settlements | (7 | ) | (6 | ) | (2 | ) | |||||||
Reversal of state tax valuation allowance | — | — | (8 | ) | |||||||||
Nontaxable gain on existing equity investment | (10 | ) | — | — | |||||||||
Permanent differences, net | 3 | (4 | ) | 5 | |||||||||
State taxes, net of federal effect | — | 1 | — | ||||||||||
Total | $ | 92 | $ | 60 | $ | 55 | |||||||
Components of Deferred Income Taxes | ' | ||||||||||||
Significant components of deferred income taxes were as follows: | |||||||||||||
September 30 | |||||||||||||
2014 | 2013 | ||||||||||||
(Dollars in millions) | |||||||||||||
Deferred tax assets: | |||||||||||||
Deferred expenses | $ | 37 | $ | 29 | |||||||||
Inventory | 11 | — | |||||||||||
Other | 20 | 28 | |||||||||||
Pension and other benefits | 74 | 71 | |||||||||||
Net operating loss carry-forwards | 171 | 187 | |||||||||||
Foreign tax credit carry-forwards | 40 | 49 | |||||||||||
R&D credit carry-forwards | 28 | 28 | |||||||||||
Other business credit carry-forwards | 38 | 32 | |||||||||||
Subtotal | 419 | 424 | |||||||||||
Valuation allowances | (186 | ) | (166 | ) | |||||||||
Total deferred tax assets | $ | 233 | $ | 258 | |||||||||
September 30 | |||||||||||||
2014 | 2013 | ||||||||||||
(Dollars in millions) | |||||||||||||
Deferred tax liabilities: | |||||||||||||
Intangible assets | $ | (37 | ) | $ | (28 | ) | |||||||
Property, plant and equipment | (143 | ) | (149 | ) | |||||||||
Total deferred tax liabilities | $ | (180 | ) | $ | (177 | ) | |||||||
Expiration Dates of Carryforwards | ' | ||||||||||||
The following table provides detail surrounding the expiration dates of these carryforwards: | |||||||||||||
NOLs | Credits | ||||||||||||
(Dollars in millions) | |||||||||||||
Expiration periods | |||||||||||||
2015 to 2021 | $ | 393 | $ | 45 | |||||||||
2022 and thereafter | 65 | 37 | |||||||||||
Indefinite carry-forwards | 294 | 24 | |||||||||||
Total | $ | 752 | $ | 106 | |||||||||
Reconciliation of Unrecognized Tax Benefits | ' | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal years 2014, 2013 and 2012 is as follows: | |||||||||||||
Years ended September 30 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in millions) | |||||||||||||
Balance at beginning of the year | $ | 50 | $ | 55 | $ | 65 | |||||||
Additions based on tax provisions related to the current year | 1 | 1 | 4 | ||||||||||
Additions for tax positions of prior years | — | 2 | — | ||||||||||
Reductions of tax provisions of prior years | (1 | ) | (5 | ) | (10 | ) | |||||||
Reductions related to settlements | (5 | ) | — | — | |||||||||
Reductions from lapse of statute of limitations | (4 | ) | (3 | ) | (4 | ) | |||||||
Balance at end of the year | $ | 41 | $ | 50 | $ | 55 | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Commitments under Non-Cancelable Leases | ' | ||||||||||||||||||||||||||||
Future minimum rental commitments under non-cancelable leases are as follows: | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
2015 | $ | 24 | |||||||||||||||||||||||||||
2016 | 19 | ||||||||||||||||||||||||||||
2017 | 13 | ||||||||||||||||||||||||||||
2018 | 11 | ||||||||||||||||||||||||||||
2019 | 10 | ||||||||||||||||||||||||||||
2020 and thereafter | 70 | ||||||||||||||||||||||||||||
Total future minimum rental commitments | $ | 147 | |||||||||||||||||||||||||||
Schedule of Raw Material Purchased under Long Term Purchase Agreements | ' | ||||||||||||||||||||||||||||
Cabot has entered into long-term purchase agreements primarily for the purchase of raw materials. Under certain of these agreements, the quantity of material being purchased is fixed, but the price paid changes as market prices change. Raw materials purchased under these agreements by segment for fiscal 2014, 2013 and 2012 are as follows: | |||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Reinforcement Materials | $ | 354 | $ | 371 | $ | 312 | |||||||||||||||||||||||
Performance Materials | 43 | 34 | 47 | ||||||||||||||||||||||||||
Purification Solutions(1) | 32 | 34 | 4 | ||||||||||||||||||||||||||
Advanced Technologies | — | — | 6 | ||||||||||||||||||||||||||
Other | 3 | 2 | 1 | ||||||||||||||||||||||||||
Total | $ | 432 | $ | 441 | $ | 370 | |||||||||||||||||||||||
(1) | The year ended September 30, 2012 includes two months of purchases for Purification Solutions. | ||||||||||||||||||||||||||||
Schedule of Components of Purchase Commitments | ' | ||||||||||||||||||||||||||||
The purchase commitments for Reinforcement Materials, Performance Materials, Purification Solutions and Advanced Technologies covered by these agreements are with various suppliers and purchases are expected to take place as follows: | |||||||||||||||||||||||||||||
Payments Due by Fiscal Year | |||||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Reinforcement Materials | $ | 302 | $ | 254 | $ | 233 | $ | 226 | $ | 220 | $ | 2,308 | $ | 3,543 | |||||||||||||||
Performance Materials | 43 | 35 | 30 | 30 | 29 | 168 | 335 | ||||||||||||||||||||||
Purification Solutions | 21 | 12 | 10 | 10 | 9 | 14 | 76 | ||||||||||||||||||||||
Advanced Technologies | 2 | 1 | 1 | 1 | 1 | — | 6 | ||||||||||||||||||||||
Total | $ | 368 | $ | 302 | $ | 274 | $ | 267 | $ | 259 | $ | 2,490 | $ | 3,960 |
Concentration_of_Credit_Risk_T
Concentration of Credit Risk (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||
Schedule of Account Receivable | ' | ||||||||
Tire manufacturers comprise a significant portion of Cabot’s trade receivable balance. The accounts receivable balance for these significant customers as a group are as follows: | |||||||||
September 30 | |||||||||
2014 | 2013 | ||||||||
(Dollars in millions) | |||||||||
Tire manufacturers | $ | 311 | $ | 298 |
Financial_Information_by_Segme1
Financial Information by Segment & Geographic Area (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Performance Segment | ' | ||||||||||||||||||||||||||||
The net sales from each of these businesses for fiscal 2014, 2013 and 2012 are as follows: | |||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Specialty Carbons and Compounds | $ | 647 | $ | 622 | $ | 664 | |||||||||||||||||||||||
Fumed Metal Oxides | 300 | 282 | 250 | ||||||||||||||||||||||||||
Total Performance Materials | $ | 947 | $ | 904 | $ | 914 | |||||||||||||||||||||||
Schedule of Advanced Technologies Business Segment | ' | ||||||||||||||||||||||||||||
The net sales from each of the Advanced Technologies businesses are as follows: | |||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Inkjet Colorants | $ | 62 | $ | 64 | $ | 66 | |||||||||||||||||||||||
Aerogel | 13 | 21 | 18 | ||||||||||||||||||||||||||
Elastomer Composites | 32 | 29 | 23 | ||||||||||||||||||||||||||
Specialty Fluids | 98 | 101 | 94 | ||||||||||||||||||||||||||
Total Advanced Technologies | $ | 205 | $ | 215 | $ | 201 | |||||||||||||||||||||||
Financial Information by Reportable Segment | ' | ||||||||||||||||||||||||||||
Financial information by reportable segment is as follows: | |||||||||||||||||||||||||||||
Reinforcement | Performance | Advanced | Purification | Segment | Unallocated | Consolidated | |||||||||||||||||||||||
Materials | Materials | Technologies | Solutions | Total | and | Total | |||||||||||||||||||||||
Other(1), (3) | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Revenues from external customers(2) | $ | 2,076 | $ | 947 | $ | 205 | $ | 315 | $ | 3,543 | $ | 104 | $ | 3,647 | |||||||||||||||
Depreciation and amortization | 87 | 50 | 10 | 54 | 201 | — | 201 | ||||||||||||||||||||||
Equity in earnings of affiliated companies | (3 | ) | 1 | — | 6 | 4 | (4 | ) | — | ||||||||||||||||||||
Income (loss) from continuing operations before taxes(3) | 242 | 158 | 66 | (19 | ) | 447 | (139 | ) | 308 | ||||||||||||||||||||
Assets(4) | 1,628 | 670 | 180 | 1,389 | 3,867 | 217 | 4,084 | ||||||||||||||||||||||
Total expenditures for additions to long-lived assets(5) | 65 | 28 | 8 | 64 | 165 | 6 | 171 | ||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Revenues from external customers(2) | $ | 1,902 | $ | 904 | $ | 215 | $ | 328 | $ | 3,349 | $ | 107 | $ | 3,456 | |||||||||||||||
Depreciation and amortization | 81 | 49 | 10 | 54 | 194 | (4 | ) | 190 | |||||||||||||||||||||
Equity in earnings of affiliated companies | 9 | 2 | — | 4 | 15 | (4 | ) | 11 | |||||||||||||||||||||
Income (loss) from continuing operations before taxes(3) | 188 | 132 | 70 | (4 | ) | 386 | (176 | ) | 210 | ||||||||||||||||||||
Assets(4) | 1,512 | 688 | 185 | 1,388 | 3,773 | 460 | 4,233 | ||||||||||||||||||||||
Total expenditures for additions to long-lived assets(5) | 172 | 46 | 5 | 38 | 261 | 3 | 264 | ||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Revenues from external customers(2) | $ | 2,019 | $ | 914 | $ | 201 | $ | 61 | $ | 3,195 | $ | 96 | $ | 3,291 | |||||||||||||||
Depreciation and amortization | 82 | 47 | 12 | 8 | 149 | 5 | 154 | ||||||||||||||||||||||
Equity in earnings of affiliated companies | 9 | 1 | — | 1 | 11 | — | 11 | ||||||||||||||||||||||
Income (loss) from continuing operations before taxes(3) | 227 | 128 | 50 | 5 | 410 | (164 | ) | 246 | |||||||||||||||||||||
Assets(4) | 1,527 | 717 | 198 | 1,433 | 3,875 | 524 | 4,399 | ||||||||||||||||||||||
Total expenditures for additions to long-lived assets(5) | 163 | 87 | 16 | 350 | 616 | 6 | 622 | ||||||||||||||||||||||
(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) | Revenue from external customers that are categorized as Unallocated and Other reflects royalties, other operating revenues, external shipping and handling fees, 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. | ||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(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 | $ | (7 | ) | $ | 5 | $ | 11 | ||||||||||||||||||||||
Shipping and handling fees | 111 | 102 | 85 | ||||||||||||||||||||||||||
Total | $ | 104 | $ | 107 | $ | 96 | |||||||||||||||||||||||
(3) | Income (loss) from continuing operations before taxes that are categorized as Unallocated and Other includes: | ||||||||||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Interest expense | $ | (55 | ) | $ | (62 | ) | $ | (46 | ) | ||||||||||||||||||||
Total certain items, pre-tax(a) | (28 | ) | (54 | ) | (51 | ) | |||||||||||||||||||||||
Equity in earnings of affiliated companies, net of tax(b) | — | (11 | ) | (11 | ) | ||||||||||||||||||||||||
Unallocated corporate costs(c) | (54 | ) | (48 | ) | (56 | ) | |||||||||||||||||||||||
General unallocated expense(d) | (2 | ) | (1 | ) | — | ||||||||||||||||||||||||
Total | $ | (139 | ) | $ | (176 | ) | $ | (164 | ) | ||||||||||||||||||||
(a) | Certain items are items that management does not consider representative of operating segment results and they are, therefore, excluded from Segment EBIT. Certain items, pre-tax, for fiscal 2014 primarily include $29 million related to global restructuring activities, $7 million for acquisition and integration-related charges, $18 million for legal and environmental matters and reserves and $3 million of certain foreign currency gains recorded by foreign subsidiaries offset by a $29 million non-cash gain recognized on the Company’s pre-existing investment in NHUMO as a result of the NHUMO transaction. Certain items, pre-tax, for fiscal 2013 primarily include $35 million related to global restructuring activities, $21 million for acquisition and integration-related charges (consisting of $10 million for certain other one-time integration costs and $11 million of additional charges related to acquisition accounting adjustments for the acquired inventory) and $1 million for legal and environmental matters and reserves offset by $3 million of certain foreign currency gains recorded by foreign subsidiaries. Certain items, pre-tax, for fiscal 2012 primarily include $17 million related to global restructuring activities, $26 million for acquisition and integration-related charges (consisting of $14 million of legal and professional fees, $3 million for certain other one-time integration costs and $9 million of additional charges related to acquisition accounting adjustments for the acquired inventory), and $8 million for legal and environmental matters and reserves. | ||||||||||||||||||||||||||||
(b) | Equity in earnings 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 expense 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. | ||||||||||||||||||||||||||||
(4) | Unallocated and Other assets includes cash, marketable securities, cost investments, income taxes receivable, deferred taxes, headquarters’ assets, and current and non-current assets held for sale. | ||||||||||||||||||||||||||||
(5) | Expenditures for additions to long-lived assets include total equity and other investments (including available-for-sale securities) and property, plant and equipment. | ||||||||||||||||||||||||||||
Revenues from External Customers and Long-Lived Asset Information by Geographic Area | ' | ||||||||||||||||||||||||||||
Revenues from external customers and long-lived asset information by geographic area are summarized as follows: | |||||||||||||||||||||||||||||
United States | China | The | Other Foreign | Consolidated | |||||||||||||||||||||||||
Netherlands | Countries | Total | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Years Ended September 30, | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Revenues from external customers | $ | 847 | $ | 628 | $ | 220 | $ | 1,952 | $ | 3,647 | |||||||||||||||||||
Net property, plant and equipment | $ | 496 | $ | 355 | $ | 197 | $ | 533 | $ | 1,581 | |||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Revenues from external customers | $ | 818 | $ | 558 | $ | 224 | $ | 1,856 | $ | 3,456 | |||||||||||||||||||
Net property, plant and equipment | $ | 488 | $ | 385 | $ | 211 | $ | 516 | $ | 1,600 | |||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Revenues from external customers | $ | 686 | $ | 543 | $ | 131 | $ | 1,931 | $ | 3,291 | |||||||||||||||||||
Net property, plant and equipment | $ | 481 | $ | 305 | $ | 208 | $ | 553 | $ | 1,547 | |||||||||||||||||||
Unaudited_Quarterly_Financial_1
Unaudited Quarterly Financial Information (Tables) | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||
Schedule of Quarterly Financial Information | ' | ||||||||||||||||||||
Unaudited financial results by quarter for fiscal 2014 and 2013 are summarized below: | |||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||
December | March | June | September | Year | |||||||||||||||||
(Dollars in millions, except per share amounts) | |||||||||||||||||||||
Fiscal 2014 | |||||||||||||||||||||
Consolidated Net Income | |||||||||||||||||||||
Net sales and other operating revenues | $ | 898 | $ | 898 | $ | 940 | $ | 911 | $ | 3,647 | |||||||||||
Gross profit | 179 | 176 | 184 | 182 | 721 | ||||||||||||||||
Selling and administrative expenses | 77 | 92 | 76 | 81 | 326 | ||||||||||||||||
Research and technical expenses | 15 | 16 | 15 | 14 | 60 | ||||||||||||||||
Income from operations | 87 | 68 | 93 | 87 | 335 | ||||||||||||||||
Net interest expense and other charges | 22 | (20 | ) | (13 | ) | (16 | ) | (27 | ) | ||||||||||||
Income from continuing operations before taxes and equity earnings of affiliated companies | 109 | 48 | 80 | 71 | 308 | ||||||||||||||||
Provision for income taxes | (24 | ) | (7 | ) | (20 | ) | (41 | ) | (92 | ) | |||||||||||
Equity in earnings of affiliated companies | 2 | (2 | ) | (2 | ) | 2 | — | ||||||||||||||
(Loss) income from discontinued operations, net of tax | (1 | ) | — | (1 | ) | 4 | 2 | ||||||||||||||
Net income | 86 | 39 | 57 | 36 | 218 | ||||||||||||||||
Net income attributable to noncontrolling interests, net of tax | 6 | 3 | 5 | 5 | 19 | ||||||||||||||||
Net income attributable to Cabot Corporation | $ | 80 | $ | 36 | $ | 52 | $ | 31 | $ | 199 | |||||||||||
Income per share—basic: | |||||||||||||||||||||
Income from continuing operations | $ | 1.25 | $ | 0.56 | $ | 0.8 | $ | 0.43 | $ | 3.04 | |||||||||||
Income from discontinued operations | (0.01 | ) | (0.01 | ) | (0.01 | ) | 0.05 | 0.02 | |||||||||||||
Net income attributable to Cabot Corporation | $ | 1.24 | $ | 0.55 | $ | 0.79 | $ | 0.48 | $ | 3.06 | |||||||||||
Income per share—diluted: | |||||||||||||||||||||
Income from continuing operations | $ | 1.24 | $ | 0.55 | $ | 0.79 | $ | 0.43 | $ | 3.01 | |||||||||||
Income from discontinued operations | (0.01 | ) | (0.01 | ) | (0.01 | ) | 0.05 | 0.02 | |||||||||||||
Net income attributable to Cabot Corporation | $ | 1.23 | $ | 0.54 | $ | 0.78 | $ | 0.48 | $ | 3.03 | |||||||||||
Quarter Ended | |||||||||||||||||||||
December | March | June | September | Year | |||||||||||||||||
(Dollars in millions, except per share amounts) | |||||||||||||||||||||
Fiscal 2013 | |||||||||||||||||||||
Consolidated Net Income | |||||||||||||||||||||
Net sales and other operating revenues | $ | 819 | $ | 840 | $ | 901 | $ | 896 | $ | 3,456 | |||||||||||
Gross profit | 147 | 143 | 176 | 167 | 633 | ||||||||||||||||
Selling and administrative expenses | 73 | 77 | 72 | 75 | 297 | ||||||||||||||||
Research and technical expenses | 17 | 16 | 17 | 18 | 68 | ||||||||||||||||
Income from operations | 57 | 50 | 87 | 74 | 268 | ||||||||||||||||
Net interest expense and other charges | (14 | ) | (13 | ) | (13 | ) | (18 | ) | (58 | ) | |||||||||||
Income from continuing operations before taxes and equity earnings of affiliated companies | 43 | 37 | 74 | 56 | 210 | ||||||||||||||||
Provision for income taxes | (20 | ) | (16 | ) | (16 | ) | (8 | ) | (60 | ) | |||||||||||
Equity in earnings of affiliated companies | 3 | 3 | 3 | 2 | 11 | ||||||||||||||||
(Loss) income from discontinued operations, net of tax | (2 | ) | (1 | ) | 1 | 1 | (1 | ) | |||||||||||||
Net income | 24 | 23 | 62 | 51 | 160 | ||||||||||||||||
Net income (loss) attributable to noncontrolling interests, net of tax | 4 | (4 | ) | 3 | 4 | 7 | |||||||||||||||
Net income attributable to Cabot Corporation | $ | 20 | $ | 27 | $ | 59 | $ | 47 | $ | 153 | |||||||||||
Income per share—basic: | |||||||||||||||||||||
Income from continuing operations | $ | 0.35 | $ | 0.43 | $ | 0.88 | $ | 0.73 | $ | 2.39 | |||||||||||
(Loss) income from discontinued operations | (0.04 | ) | (0.01 | ) | 0.04 | — | (0.01 | ) | |||||||||||||
Net income attributable to Cabot Corporation | $ | 0.31 | $ | 0.42 | $ | 0.92 | $ | 0.73 | $ | 2.38 | |||||||||||
Income per share—diluted: | |||||||||||||||||||||
Income from continuing operations | $ | 0.35 | $ | 0.43 | $ | 0.87 | $ | 0.72 | $ | 2.37 | |||||||||||
(Loss) income from discontinued operations | (0.04 | ) | (0.01 | ) | 0.03 | 0.01 | (0.01 | ) | |||||||||||||
Net income attributable to Cabot Corporation | $ | 0.31 | $ | 0.42 | $ | 0.9 | $ | 0.73 | $ | 2.36 | |||||||||||
Significant_Accounting_Policie3
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Nov. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
USD ($) | USD ($) | USD ($) | Other Expense [Member] | Other Expense [Member] | Other Expense [Member] | Purification Solutions [Member] | Purification Solutions [Member] | Purification Solutions [Member] | GAM Notes [Member] | GAM Notes [Member] | GAM Notes [Member] | NHUMO [Member] | China [Member] | China [Member] | China [Member] | China [Member] | Buildings [Member] | Buildings [Member] | Machinery and Equipment [Member] | Machinery and Equipment [Member] | Other Fixed Assets [Member] | Other Fixed Assets [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | USD ($) | CNY | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage prior to acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity affiliate investments | $68,000,000 | $119,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends declared | 25,000,000 | 8,000,000 | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Useful life of property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '20 years | '25 years | '10 years | '25 years | '3 years | '25 years |
Capitalized interest | 3,000,000 | 5,000,000 | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 536,000,000 | 502,000,000 | 478,000,000 | ' | ' | ' | 458,000,000 | 466,000,000 | 439,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate percentage of fair value of reporting unit exceeds carrying value | ' | ' | ' | ' | ' | ' | 9.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Successful realization of anticipated market share, years | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset retirement obligation reserve | 15,000,000 | 16,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency transaction gains (losses) | ' | ' | ' | -2,000,000 | 2,000,000 | -2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts and notes receivable, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,000,000 | 193,000,000 | 24,000,000 | 148,000,000 | ' | ' | ' | ' | ' | ' |
Charges on sale of notes receivables | 3,000,000 | 4,000,000 | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes in allowance | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment recorded | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes receivable from sale of business | 0 | 214,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 214,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cabot received final payment on GAM Notes | $215,000,000 | $39,000,000 | $23,000,000 | ' | ' | ' | ' | ' | ' | $215,000,000 | $215,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Chance of utilizing the associated benefit for valuation allowances, maximum | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Significant_Accounting_Policie4
Significant Accounting Policies - Segment Reporting Revenue Percentage (Detail) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Reinforcement Materials [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue, by segment | 58.00% | 57.00% | 63.00% |
Performance Materials [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue, by segment | 27.00% | 27.00% | 29.00% |
Advanced Technologies [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue, by segment | 6.00% | 6.00% | 6.00% |
Purification Solutions [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue, by segment | 9.00% | 10.00% | 2.00% |
Acquisition_of_NHUMO_Additiona
Acquisition of NHUMO - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Nov. 30, 2013 | Sep. 30, 2014 |
Customer Relationships [Member] | NHUMO [Member] | NHUMO [Member] | |||
Loans At Acquisition Date [Line Items] | ' | ' | ' | ' | ' |
Percentage acquisition | ' | ' | ' | 60.00% | ' |
Ownership percentage prior to acquisition | ' | ' | ' | 40.00% | ' |
Cash paid on acquisition | ' | ' | ' | $80 | ' |
Preferred stock redemption amount | 27 | 0 | ' | 25 | ' |
Dividend percentage of preferred stock | ' | ' | ' | 6.00% | ' |
Preferred stock issued on acquisition | ' | ' | ' | 25 | ' |
Other current liabilities | ' | ' | ' | 1.5 | ' |
Dividend payout | ' | ' | ' | 1.5 | ' |
Dividend received from NHUMO | ' | ' | ' | 14 | ' |
Acquisition costs | 2 | ' | ' | ' | ' |
Gain on acquisition | 29 | ' | ' | ' | 29 |
Previously held equity interest in NHUMO | ' | ' | ' | ' | 54 |
Intangible asset | ' | ' | $63 | ' | ' |
Amortized period | ' | ' | '20 years | ' | ' |
Acquisition_of_NHUMO_Component
Acquisition of NHUMO - Components and Allocation of Purchase Price (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 |
In Millions, unless otherwise specified | Norit N.V. [Member] | Norit N.V. [Member] | Norit N.V. [Member] | |||
Measurement Period Adjustments [Member] | ||||||
Assets | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | $7 | $7 | ' |
Accounts receivable | ' | ' | ' | 33 | 33 | ' |
Inventories | ' | ' | ' | 14 | 14 | ' |
Property, plant and equipment | ' | ' | ' | 48 | 48 | ' |
Other non-current assets | ' | ' | ' | 1 | 1 | ' |
Intangible assets | ' | ' | ' | 57 | 63 | 6 |
Goodwill | 536 | 502 | 478 | 51 | 45 | -6 |
Total assets acquired | ' | ' | ' | 211 | 211 | ' |
Liabilities | ' | ' | ' | ' | ' | ' |
Accounts payable, accruals and other liabilities | ' | ' | ' | -18 | -20 | -2 |
Deferred tax liabilities - long term | ' | ' | ' | -31 | -29 | 2 |
Total liabilities assumed | ' | ' | ' | -49 | -49 | ' |
Net assets acquired | ' | ' | ' | 162 | 162 | ' |
Cash consideration paid | ' | ' | ' | 80 | ' | ' |
Fair value of redeemable preferred stock | 27 | 0 | ' | 28 | ' | ' |
Previously held equity interest in NHUMO | ' | ' | ' | 54 | ' | ' |
Total | ' | ' | ' | $162 | ' | ' |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jan. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 31, 2014 | Jun. 30, 2014 | Sep. 30, 2014 |
GAM Notes [Member] | GAM Notes [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Total consideration from sale of business | $452 | ' | ' | ' | ' | ' | ' |
Cash consideration received on sale of discontinued operations | 175 | ' | ' | ' | ' | ' | ' |
Notes receivable received on sale of discontinued operations | 277 | ' | ' | ' | ' | ' | ' |
GAM promissory notes and inventory note, final maturity date | '2014-03 | ' | ' | ' | ' | ' | ' |
Company received payment under the GAM Notes | ' | 215 | 39 | 23 | ' | 215 | 215 |
Approximate cash on sale of Security Materials business to SICPA | ' | ' | ' | ' | $20 | ' | ' |
Discontinued_Operations_Compon
Discontinued Operations - Components of Discontinued Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Discontinued Operations and Disposal Groups [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and other operating revenues | ' | ' | ' | ' | ' | ' | ' | $5 | $7 | $55 |
(Loss) income from operations before income taxes | ' | ' | ' | ' | ' | ' | ' | -3 | -5 | 20 |
Provision for (benefit from) income taxes on operations | ' | ' | ' | ' | ' | ' | ' | 1 | 2 | -7 |
(Loss) income from operations, net of tax | ' | ' | ' | ' | ' | ' | ' | -2 | -3 | 13 |
Gain (loss) on sale of discontinued operations | ' | ' | ' | ' | ' | ' | ' | 7 | -2 | 300 |
(Provision for) benefit from income taxes on gain (loss) on sale | ' | ' | ' | ' | ' | ' | ' | -3 | 4 | -109 |
Gain on sale of discontinued operations, net of tax | ' | ' | ' | ' | ' | ' | ' | 4 | 2 | 191 |
Income (loss) from discontinued operations, net of tax | $4 | ($1) | ($1) | $1 | $1 | ($1) | ($2) | $2 | ($1) | $204 |
Discontinued_Operations_Summar
Discontinued Operations - Summary of Assets and Liabilities Held for Sale (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Long Lived Assets Held-for-sale [Line Items] | ' | ' |
Current assets held for sale | $0 | $4 |
Noncurrent assets held for sale | 0 | 9 |
Inventories [Member] | ' | ' |
Long Lived Assets Held-for-sale [Line Items] | ' | ' |
Current assets held for sale | ' | 3 |
Other Current Assets [Member] | ' | ' |
Long Lived Assets Held-for-sale [Line Items] | ' | ' |
Current assets held for sale | ' | 1 |
Property, Plant and Equipment, Net [Member] | ' | ' |
Long Lived Assets Held-for-sale [Line Items] | ' | ' |
Noncurrent assets held for sale | ' | 5 |
Goodwill [Member] | ' | ' |
Long Lived Assets Held-for-sale [Line Items] | ' | ' |
Noncurrent assets held for sale | ' | 2 |
Intangible Assets, Net [Member] | ' | ' |
Long Lived Assets Held-for-sale [Line Items] | ' | ' |
Noncurrent assets held for sale | ' | $2 |
Inventories_Components_of_Comp
Inventories - Components of Company's Inventories (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $111 | $100 |
Work in process | 2 | 2 |
Finished goods | 341 | 309 |
Other | 44 | 44 |
Total | $498 | $455 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Inventory Disclosure [Abstract] | ' | ' | ' |
Inventory valued under the LIFO method | 5.00% | 5.00% | ' |
Inventory, LIFO reserve | $52 | $55 | ' |
Decrease in cost of sales | 0 | 1 | 1 |
Effect of LIFO inventory liquidation on income | 0 | 1 | 1 |
Liquidation of LIFO inventory, resulted per diluted common share | $0 | $0.01 | $0.01 |
Obsolete inventory reserve | $14 | $15 | ' |
Property_Plant_and_Equipment_C
Property, Plant and Equipment - Components of Property, Plant and Equipment (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | |||
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Land and land improvements | $132 | $138 | ' |
Buildings | 536 | 507 | ' |
Machinery and equipment | 2,593 | 2,504 | ' |
Other | 233 | 236 | ' |
Construction in progress | 216 | 278 | ' |
Total property, plant and equipment | 3,710 | 3,663 | ' |
Less: accumulated depreciation | -2,129 | -2,063 | ' |
Net property, plant and equipment | $1,581 | $1,600 | $1,547 |
Property_Plant_and_Equipment_A
Property, Plant and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Depreciation expense | $184 | $175 | $152 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||
31-May-14 | 31-May-14 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Cost of Sales and Selling and Administrative Expenses [Member] | Cost of Sales and Selling and Administrative Expenses [Member] | Cost of Sales and Selling and Administrative Expenses [Member] | Minimum [Member] | Maximum [Member] | Weighted Average [Member] | ||||||
Goodwill And Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | $536,000,000 | $502,000,000 | $478,000,000 | ' | ' | ' | ' | ' | ' |
Goodwill annual impairment | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Useful life of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | '16 years | '20 years | '19 years |
Amortization of intangible assets | ' | ' | ' | ' | ' | 17,000,000 | 14,000,000 | 3,000,000 | ' | ' | ' |
Amortization expense estimated for year one | ' | ' | 17,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense estimated for year two | ' | ' | 17,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense estimated for year three | ' | ' | 17,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense estimated for year four | ' | ' | 17,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense estimated for year five | ' | ' | 17,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Asset impairment charges | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill Balances (Detail) (USD $) | 12 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 |
Reinforcement Materials [Member] | Reinforcement Materials [Member] | Performance Materials [Member] | Performance Materials [Member] | Purification Solutions [Member] | Purification Solutions [Member] | |||
Goodwill And Other Intangible Asset [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | $502 | $478 | $25 | $28 | $11 | $11 | $466 | $439 |
Goodwill acquired | 45 | ' | 45 | ' | 0 | ' | 0 | ' |
Measurement period adjustments | ' | 22 | ' | ' | ' | ' | ' | 22 |
Foreign currency impact | -11 | 2 | -2 | -3 | -1 | ' | -8 | 5 |
Ending balance | $536 | $502 | $68 | $25 | $10 | $11 | $458 | $466 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value, finite lives | $323 | $267 |
Gross Carrying Value | 380 | 324 |
Accumulated Amortization | -33 | -16 |
Net Intangible Assets, finite lives | 290 | 251 |
Net Intangible Assets | 347 | 308 |
Developed Technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value, finite lives | 152 | 154 |
Accumulated Amortization | -16 | -9 |
Net Intangible Assets, finite lives | 136 | 145 |
Customer Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value, finite lives | 171 | 113 |
Accumulated Amortization | -17 | -7 |
Net Intangible Assets, finite lives | 154 | 106 |
Trademarks, Indefinite Lives [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value, Trademarks, indefinite lives | 57 | 57 |
Accumulated Amortization | ' | ' |
Net Intangible Assets, Trademarks, indefinite lives | $57 | $57 |
Accounts_Payable_Accrued_Liabi2
Accounts Payable, Accrued Liabilities and Other Liabilities - Components of Accounts Payable and Accrued Liabilities (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Accounts payable | $351 | $398 |
Accrued employee compensation | 48 | 41 |
Other accrued liabilities | 113 | 95 |
Total | $512 | $534 |
Accounts_Payable_Accrued_Liabi3
Accounts Payable, Accrued Liabilities and Other Liabilities - Components of Other Long-Term Liabilities (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Employee benefit plan liabilities | $174 | $149 |
Non-current tax liabilities | 33 | 47 |
Other accrued liabilities | 84 | 69 |
Total | $291 | $265 |
Debt_and_Other_Obligations_Sch
Debt and Other Obligations - Schedule of Long-Term Obligations (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2009 | Sep. 30, 2014 | Sep. 30, 2013 | Jul. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Jul. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Revolving Credit Facility Expiry August 2016 [Member] | Revolving Credit Facility Expiry August 2016 [Member] | Chinese Renminbi Notes, Due Through 2016, 6.15%-6.77% [Member] | Chinese Renminbi Notes, Due Through 2016, 6.15%-6.77% [Member] | 5% Notes Due 2017 [Member] | 5% Notes Due 2017 [Member] | 5% Notes Due 2017 [Member] | 2.55% Notes Due 2018 [Member] | 2.55% Notes Due 2018 [Member] | 2.55% Notes Due 2018 [Member] | 3.7% Notes Due 2022 [Member] | 3.7% Notes Due 2022 [Member] | 3.7% Notes Due 2022 [Member] | Notes Due 2019, 7.42% [Member] | Notes Due 2019, 7.42% [Member] | Notes Due 2022, 8.35% - 8.47% [Member] | Notes Due 2022, 8.35% - 8.47% [Member] | Notes Due 2028, 6.57%-7.28% [Member] | Notes Due 2028, 6.57%-7.28% [Member] | Guarantee Of Employee Stock Option Plan Note 8.29% [Member] | Chinese Renminbi Notes, Due Through 2018, 4.63%-6.15% [Member] | Chinese Renminbi Notes, Due Through 2018, 4.63%-6.15% [Member] | Capital Lease Obligations, Due Through 2031 [Member] | Capital Lease Obligations, Due Through 2031 [Member] | ||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit | ' | ' | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes | ' | ' | ' | ' | 28 | 47 | 300 | 300 | ' | 250 | 250 | ' | 350 | 350 | ' | ' | ' | ' | ' | ' | ' | ' | 31 | 16 | ' | ' |
Total variable rate debt | 28 | 47 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Medium Term Notes | 53 | 53 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30 | 30 | 15 | 15 | 8 | 8 | ' | ' | ' | ' | ' |
ESOP Note, 8.29% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' |
Total debt | 984 | 971 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital lease obligations, due through 2031 | 17 | 18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17 | 18 |
Unamortized debt discount | -1 | -2 | ' | ' | ' | ' | ' | ' | -2 | ' | ' | -1 | ' | ' | -1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total debt | 1,028 | 1,034 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total debt | 1,028 | 1,034 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less current portion of long-term debt | -24 | -14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long-term debt | $1,004 | $1,020 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_and_Other_Obligations_Sch1
Debt and Other Obligations - Schedule of Long-Term Obligations (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Revolving Credit Facility Expiry August 2016 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, face amount | $750 | $750 |
Debt instrument due, year | '2016 | '2016 |
Chinese Renminbi Notes, Due Through 2016, 6.15%-6.77% [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument interest rate, minimum | 6.15% | 6.15% |
Debt instrument interest rate, maximum | 6.77% | 6.77% |
Debt instrument maturity, maximum range | '2016 | '2016 |
5% Notes Due 2017 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, interest rate | 5.00% | 5.00% |
Debt instrument due, year | '2017 | '2017 |
2.55% Notes Due 2018 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, interest rate | 2.55% | 2.55% |
Debt instrument due, year | '2018 | '2018 |
3.7% Notes Due 2022 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, interest rate | 3.70% | 3.70% |
Debt instrument due, year | '2022 | '2022 |
Notes Due 2019, 7.42% [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, interest rate | 7.42% | 7.42% |
Debt instrument due, year | '2019 | '2019 |
Notes Due 2022, 8.35% - 8.47% [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument interest rate, minimum | 8.35% | 8.35% |
Debt instrument interest rate, maximum | 8.47% | 8.47% |
Debt instrument due, year | '2022 | '2022 |
Notes Due 2028, 6.57%-7.28% [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument interest rate, minimum | 6.57% | 6.57% |
Debt instrument interest rate, maximum | 7.28% | 7.28% |
Debt instrument due, year | '2028 | '2028 |
Guarantee Of Employee Stock Option Plan Note 8.29% [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, interest rate | 8.29% | 8.29% |
Chinese Renminbi Notes, Due Through 2018, 4.63%-6.15% [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument interest rate, minimum | 4.63% | 4.63% |
Debt instrument interest rate, maximum | 6.15% | 6.15% |
Debt instrument due, year | '2018 | '2018 |
Capital Lease Obligations, Due Through 2031 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument maturity, maximum range | '2031 | '2031 |
Debt_and_Other_Obligations_Add
Debt and Other Obligations - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Jan. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2009 | Sep. 30, 2014 | Sep. 30, 2009 | Jul. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Jul. 31, 2012 | Jul. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Jul. 31, 2012 | Nov. 30, 1988 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 |
Scenario, Previously Reported [Member] | Revolving Credit Agreement [Member] | Commercial Paper [Member] | Commercial Paper [Member] | Commercial Paper [Member] | Standby Letters of Credit [Member] | Chinese Renminbi Notes [Member] | Chinese Renminbi Notes [Member] | 5% Notes Due 2017 [Member] | 5% Notes Due 2017 [Member] | 5% Notes Due 2017 [Member] | 5% Notes Due 2017 [Member] | 5% Notes Due 2017 [Member] | 2.55% Notes Due 2018 [Member] | 2.55% Notes Due 2018 [Member] | 2.55% Notes Due 2018 [Member] | 2.55% Notes Due 2018 [Member] | 2.55% Notes Due 2018 [Member] | 3.7% Notes Due 2022 [Member] | 3.7% Notes Due 2022 [Member] | 3.7% Notes Due 2022 [Member] | 3.7% Notes Due 2022 [Member] | 3.7% Notes Due 2022 [Member] | ESOP Note, Due 2013, 8.29% [Member] | ESOP Note, Due 2013, 8.29% [Member] | ESOP Note, Due 2013, 8.29% [Member] | ESOP Note, Due 2013, 8.29% [Member] | ESOP Note, Due 2013, 8.29% [Member] | ESOP Note, Due 2013, 8.29% [Member] | ||||
Fixed Rate Debt [Member] | Fixed Rate Debt [Member] | Fixed Rate Debt [Member] | Fixed Rate Debt [Member] | Fixed Rate Debt [Member] | Fixed Rate Debt [Member] | Maximum [Member] | Fixed Rate Debt [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, committed amount | $750 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit and commercial paper outstanding | 720 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit agreement maturity date | 3-Oct-19 | ' | ' | 25-Aug-16 | 3-Oct-19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | 1,012 | ' | ' | ' | ' | ' | ' | ' | ' | 59 | 63 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 8 | ' | ' |
Debt maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Oct-16 | ' | ' | ' | ' | ' | 15-Jan-18 | ' | ' | ' | ' | 15-Jul-22 | ' | ' | ' | ' | 31-Dec-13 | ' | ' | ' | ' |
Debt instrument, interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 5.00% | ' | ' | 5.00% | ' | 2.55% | 2.55% | ' | 2.55% | ' | 3.70% | 3.70% | ' | 3.70% | ' | ' | ' | ' | ' | 8.29% |
Registered notes issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300 | ' | ' | 250 | ' | ' | ' | ' | 350 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of notes, discount recorded | 1 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | 1 | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of debt notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 296 | ' | ' | ' | ' | ' | 248 | ' | ' | ' | ' | 347 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument due, year | ' | ' | ' | ' | ' | ' | ' | ' | '2015 | ' | ' | '2017 | '2017 | ' | '2017 | ' | ' | '2018 | '2018 | '2018 | ' | ' | '2022 | '2022 | '2022 | ' | ' | ' | ' | ' | ' | '2013 |
Unsecured medium term notes outstanding issued | 53 | 53 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity of the total outstanding medium term notes, years | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest of medium term notes | 7.65% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Funds borrowed to purchase of Cabot shares | 17 | 117 | 911 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75 | ' | ' | ' | ' | ' |
Employer contribution to ESOP to service the debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 4 | 5 | ' | ' |
Dividends paid to ESOP | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 2 | 1 | ' |
Interest payments from ESOP | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | 1 | ' |
Capital lease obligations | 17 | 18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of long-term capital lease obligations | 39 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment period of capital lease obligation, years | '17 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment towards imputed interest | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Original cost of capital lease assets | 22 | 24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated depreciation of assets under capital leases | 9 | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Standby letters of credit, outstanding amount | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured short term notes payable to bank | 44 | 264 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument maturity date | '1 year | ' | ' | ' | ' | '364 days | '1 day | '28 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average interest rate | 3.90% | 0.70% | ' | ' | ' | ' | 0.25% | 0.32% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commercial paper notes outstanding | $44 | $264 | ' | ' | ' | ' | $30 | $241 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_and_Other_Obligations_Sch2
Debt and Other Obligations - Schedule of Future Years Payment (Detail) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
2015 | $23 |
2016 | 7 |
2017 | 314 |
2018 | 265 |
2019 | 30 |
Thereafter | 373 |
Total | 1,012 |
2015 | 4 |
2016 | 4 |
2017 | 4 |
2018 | 3 |
2019 | 3 |
Thereafter | 21 |
Less: executory costs and interest | -22 |
Total | 17 |
2015 | 27 |
2016 | 11 |
2017 | 318 |
2018 | 268 |
2019 | 33 |
Thereafter | 394 |
Less: executory costs and interest | -22 |
Total | 1,029 |
Total | 1,029 |
Total | 1,012 |
Total | $17 |
Financial_Instruments_and_Fair1
Financial Instruments and Fair Value Measurements - Additional Information (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value, liabilities, Level 2 to Level 1 transfers, amount | $0 | $0 |
Fair value, assets, Level 2 to Level 1 transfers, amount | 0 | 0 |
Fair value, liabilities, Level 1 to Level 2 transfers, amount | 0 | 0 |
Fair value, assets, Level 1 to Level 2 transfers, amount | 0 | 0 |
Fair value, assets, transfers into Level 3, amount | 0 | 0 |
Fair value, assets, transfers out of Level 3, amount | 0 | 0 |
Fair value, liabilities, transfers into Level 3, amount | 0 | 0 |
Fair value, liabilities, transfers out of Level 3, amount | 0 | 0 |
Fair value of long-term debt | 1,050,000,000 | 1,010,000,000 |
Significant Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other assets in the Consolidated Balance Sheets | 13,000,000 | 14,000,000 |
Fixed Rate Debt [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Carrying value of long-term debt | $980,000,000 | $970,000,000 |
Derivative_Additional_Informat
Derivative - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | |
Derivative [Line Items] | ' | ' | ' |
Significant concentration of credit risk associated with our derivative instruments | ' | ' | $0 |
Derivatives designated as hedges | ' | ' | 0 |
Gain (loss) on foreign currency derivatives recorded in earnings | 4,000,000 | -10,000,000 | ' |
Bond held by one of Cabot's European subsidiaries | 175,000,000 | 175,000,000 | ' |
Fair Value Hedging [Member] | Interest Rate Swap-Fixed to Variable [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Derivatives held to manage interest rate risk | 0 | ' | 0 |
Currency Swaps [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments | -2,000,000 | 12,000,000 | ' |
Forward Foreign Currency Contracts [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments | $5,000,000 | $10,000,000 | ' |
Derivatives_Schedule_of_Deriva
Derivatives - Schedule of Derivatives Foreign Currency (Detail) (Not Designated as Hedging Instrument [Member], Forward Foreign Currency Contracts [Member], USD $) | Sep. 30, 2014 | Sep. 30, 2013 | ||
Not Designated as Hedging Instrument [Member] | Forward Foreign Currency Contracts [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Notional amount of forward foreign currency contract no designation hedge derivatives | $32,000,000 | [1] | $31,000,000 | [1] |
[1] | Cabot's forward foreign exchange contracts are denominated primarily in the British pound sterling, Brazilian real, Chinese renminbi, Czech koruna and Indian rupee. |
Venezuela_Additional_Informati
Venezuela - Additional Information (Detail) | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2014 | Sep. 30, 2014 |
USD ($) | USD ($) | USD ($) | VEF | Maximum [Member] | Operating Affiliate, Venezuela [Member] | SICAD 2 Currency Exchange Mechanism [Member] | SICAD 2 Currency Exchange Mechanism [Member] | Subsidiaries [Member] | Subsidiaries [Member] | Subsidiaries [Member] | Operating Affiliate [Member] | Operating Affiliate [Member] | ||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Operating Affiliate, Venezuela [Member] | |||||||||
USD ($) | ||||||||||||||
Nature Of Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity method investment, ownership percentage | ' | ' | ' | ' | ' | ' | 49.00% | ' | ' | ' | ' | ' | ' | ' |
Operating affiliate investment | $17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due from affiliates, dividends cash | ' | ' | ' | 19 | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividends received from subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 3 | 6 | ' | ' |
Conversion of Bolivars to USD | ' | ' | ' | ' | 6.3 | ' | ' | 50 | 50.8 | ' | ' | ' | ' | ' |
Negative impact of exchange rate devaluation | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 |
Currency denomination, remeasurement loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' |
Tax benefit due to reduction of deferred tax liability | $8 | ($9) | ($6) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2 | ' |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Scenario, Forecast [Member] | Scenario, Forecast [Member] | U.S. Defined Benefit Plans [Member] | U.S. Defined Benefit Plans [Member] | U.S. Defined Benefit Plans [Member] | U.S. Defined Benefit Plans [Member] | Foreign Plans [Member] | Foreign Plans [Member] | Foreign Plans [Member] | Foreign Plans [Member] | Foreign Plans [Member] | Foreign Plans [Member] | U.S. Pension Benefits [Member] | U.S. Pension Benefits [Member] | U.S. Pension Benefits [Member] | Foreign Pension Benefits [Member] | Foreign Pension Benefits [Member] | Foreign Pension Benefits [Member] | ||||
Equity [Member] | Fixed Income Funds [Member] | Equity [Member] | Fixed Income Funds [Member] | Cash and Other Securities [Member] | Real Estate Funds [Member] | Maximum [Member] | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated benefit obligation | ' | ' | ' | ' | ' | $173 | $170 | ' | ' | $462 | $412 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined contribution plans, expenses not related to ESOP | 0 | 9 | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense related to the ESOP | 1 | 4 | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss amortized from accumulated other comprehensive income to net periodic benefit cost | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of estimated prior service credits | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected contribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 9 | ' | ' |
Curtailments gain (loss) | -1 | -3 | -1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -7 | -1 | ' | -7 | -2 | -1 |
Transfer of estimated charge | ' | ' | ' | $18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average assumed health care cost trend rate | ' | ' | ' | ' | ' | 7.50% | ' | ' | ' | 7.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ultimate weighted-average health care cost trend rate | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | 6.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ultimate weighted-average health care cost trend rate, anticipated achievement year | ' | ' | ' | ' | ' | '2018 | ' | ' | ' | '2016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of weighted-average target asset allocation | ' | ' | ' | ' | ' | ' | ' | 60.00% | 40.00% | ' | ' | 36.00% | 55.00% | 5.00% | 4.00% | ' | ' | ' | ' | ' | ' |
Employee_Benefit_Plans_Change_
Employee Benefit Plans - Change in Benefit Obligations and Change in Plan Assets (Detail) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Settlements or curtailment gain | ($1) | ($3) | ($1) | ||
Fair value of plan assets at beginning of year | 530 | ' | ' | ||
Fair value of plan assets at end of year | 555 | 530 | ' | ||
U.S. Pension Benefits [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Benefit obligation at beginning of year | 170 | 195 | ' | ||
Service cost | 2 | 6 | 5 | ||
Interest cost | 7 | 6 | 7 | ||
Loss (gain) from changes in actuarial assumptions | 6 | -19 | [1] | ' | |
Benefits paid | -11 | [2] | -11 | [2] | ' |
Settlements or curtailment gain | ' | -7 | -1 | ||
Other | -1 | ' | ' | ||
Benefit obligation at end of year | 173 | 170 | 195 | ||
Fair value of plan assets at beginning of year | 155 | 149 | ' | ||
Actual return on plan assets | 21 | 17 | ' | ||
Employer contribution | 3 | ' | ' | ||
Benefits paid | -11 | [2] | -10 | [2] | ' |
Expenses paid from assets | -1 | -1 | ' | ||
Fair value of plan assets at end of year | 167 | 155 | 149 | ||
Funded status | -6 | -15 | ' | ||
Recognized liability | -6 | -15 | ' | ||
Foreign Pension Benefits [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Benefit obligation at beginning of year | 439 | 423 | ' | ||
Service cost | 9 | 9 | 7 | ||
Interest cost | 16 | 15 | 11 | ||
Plan participants' contribution | 2 | 2 | ' | ||
Foreign currency exchange rate changes | -28 | ' | ' | ||
Loss (gain) from changes in actuarial assumptions | 75 | 12 | ' | ||
Benefits paid | -18 | [2] | -17 | [2] | ' |
Settlements or curtailment gain | -7 | -2 | -1 | ||
Acquisition / business combination | 3 | ' | ' | ||
Divestiture of Supermetals business | ' | -5 | ' | ||
Other | ' | 2 | ' | ||
Benefit obligation at end of year | 491 | 439 | 423 | ||
Fair value of plan assets at beginning of year | 375 | 356 | ' | ||
Actual return on plan assets | 41 | 22 | ' | ||
Employer contribution | 12 | 13 | ' | ||
Plan participants' contribution | 2 | 2 | ' | ||
Foreign currency exchange rate changes | -20 | 4 | ' | ||
Benefits paid | -18 | [2] | -17 | [2] | ' |
Settlements | -4 | -1 | ' | ||
Acquisition / business combination | 1 | ' | ' | ||
Divestiture of Supermetals business | ' | -3 | ' | ||
Expenses paid from assets | -1 | -1 | ' | ||
Fair value of plan assets at end of year | 388 | 375 | 356 | ||
Funded status | -103 | -64 | ' | ||
Recognized liability | -103 | -64 | ' | ||
U. S. Postretirement Benefits [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Benefit obligation at beginning of year | 55 | 64 | ' | ||
Service cost | ' | ' | 1 | ||
Interest cost | 2 | 2 | 2 | ||
Loss (gain) from changes in actuarial assumptions | -3 | -6 | ' | ||
Benefits paid | -4 | [2] | -5 | [2] | ' |
Settlements or curtailment gain | ' | ' | 1 | ||
Benefit obligation at end of year | 50 | 55 | 64 | ||
Employer contribution | 4 | 5 | ' | ||
Benefits paid | -4 | [2] | -5 | [2] | ' |
Funded status | -50 | -55 | ' | ||
Recognized liability | -50 | -55 | ' | ||
Foreign Postretirement Benefits [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Benefit obligation at beginning of year | 17 | 18 | ' | ||
Interest cost | 1 | 1 | 1 | ||
Foreign currency exchange rate changes | ' | -1 | ' | ||
Benefits paid | -1 | [2] | -1 | [2] | ' |
Benefit obligation at end of year | 17 | 17 | 18 | ||
Employer contribution | 1 | ' | ' | ||
Benefits paid | -1 | [2] | ' | ' | |
Funded status | -17 | -17 | ' | ||
Recognized liability | ($17) | ($17) | ' | ||
[1] | During fiscal 2013, the Company approved the freezing of the U.S. pension plan that resulted in the remeasurement of the plan assets and liabilities. The remeasurement decreased the net pension obligation of the plan, which is included within the Other liabilities caption on the Consolidated Balance Sheets, by $19 million and increased Accumulated other comprehensive (loss) income by $13 million, net of tax. The impact to the Company's Net periodic benefit cost was less than $1 million. | ||||
[2] | Included in this amount is $7 million that the Company paid directly to the participants in its defined benefit plans in both fiscal 2014 and 2013. |
Employee_Benefit_Plans_Change_1
Employee Benefit Plans - Change in Benefit Obligations and Change in Plan Assets (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Increase decrease in pension obligation plans | ($14) | ($11) | ($38) | ||
Accumulated other comprehensive income loss on pension plan, net of tax | -68 | 106 | ' | ||
Change in Assumptions for Pension Plans [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Benefits paid | 7 | 7 | ' | ||
U.S. Pension Benefits [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Increase decrease in pension obligation plans | ' | -19 | ' | ||
Accumulated other comprehensive income loss on pension plan, net of tax | ' | 13 | ' | ||
Benefits paid | 11 | [1] | 11 | [1] | ' |
Maximum [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Company's Net periodic benefit cost | ' | $1 | ' | ||
[1] | Included in this amount is $7 million that the Company paid directly to the participants in its defined benefit plans in both fiscal 2014 and 2013. |
Employee_Benefit_Plans_Assumpt
Employee Benefit Plans - Assumptions Used to Determine Pension Benefit Obligations (Detail) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
U.S. Pension Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 4.00% | 4.50% | 3.50% |
Initial health care cost trend rate | ' | 3.00% | 3.50% |
Discount rate | 4.50% | 3.50% | 4.50% |
Expected long-term rate of return on plan assets | 7.80% | 7.80% | 7.80% |
Initial health care cost trend rate | 3.00% | 3.50% | 3.80% |
Foreign Pension Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 3.00% | 3.80% | 3.60% |
Initial health care cost trend rate | 2.80% | 3.10% | 3.10% |
Discount rate | 3.80% | 3.60% | 4.80% |
Expected long-term rate of return on plan assets | 5.30% | 5.30% | 5.30% |
Initial health care cost trend rate | 3.10% | 3.10% | 3.20% |
U. S. Postretirement Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 3.80% | 4.00% | 3.30% |
Initial health care cost trend rate | 7.00% | 7.50% | 8.00% |
Discount rate | 4.00% | 3.30% | 4.50% |
Initial health care cost trend rate | 7.50% | 8.00% | 8.50% |
Foreign Postretirement Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 3.90% | 4.40% | 3.90% |
Initial health care cost trend rate | 7.10% | 7.50% | 7.40% |
Discount rate | 4.40% | 3.90% | 4.90% |
Initial health care cost trend rate | 7.50% | 7.40% | 7.90% |
Employee_Benefit_Plans_Net_Amo
Employee Benefit Plans - Net Amounts Recognized in Consolidated Balance Sheets (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Noncurrent liabilities | ($174) | ($149) |
U.S. Pension Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Noncurrent liabilities | -6 | -15 |
Foreign Pension Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Noncurrent assets | 4 | 4 |
Current liabilities | -1 | -1 |
Noncurrent liabilities | -106 | -67 |
U. S. Postretirement Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Current liabilities | -5 | -5 |
Noncurrent liabilities | -45 | -50 |
Foreign Postretirement Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Noncurrent liabilities | ($17) | ($17) |
Employee_Benefit_Plans_Amounts
Employee Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
U.S. Pension Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Net actuarial (gain) loss | ($9) | ($4) |
Balance in accumulated other comprehensive income, pretax | -9 | -4 |
Foreign Pension Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Net actuarial (gain) loss | 118 | 78 |
Balance in accumulated other comprehensive income, pretax | 118 | 78 |
U. S. Postretirement Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Net actuarial (gain) loss | -7 | -3 |
Net prior service cost (credit) | -3 | -7 |
Balance in accumulated other comprehensive income, pretax | -10 | -10 |
Foreign Postretirement Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Net actuarial (gain) loss | 2 | 3 |
Balance in accumulated other comprehensive income, pretax | $2 | $3 |
Employee_Benefit_Plans_Estimat
Employee Benefit Plans - Estimated Future Benefit Payments (Detail) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
U.S. Pension Benefits [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2015 | $12 |
2016 | 12 |
2017 | 14 |
2018 | 13 |
2019 | 12 |
2020-2024 | 61 |
Foreign Pension Benefits [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2015 | 16 |
2016 | 14 |
2017 | 15 |
2018 | 16 |
2019 | 16 |
2020-2024 | 97 |
U. S. Postretirement Benefits [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2015 | 4 |
2016 | 4 |
2017 | 4 |
2018 | 5 |
2019 | 5 |
2020-2024 | 19 |
Foreign Postretirement Benefits [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2015 | 1 |
2016 | 1 |
2017 | 1 |
2018 | 1 |
2019 | 1 |
2020-2024 | $4 |
Employee_Benefit_Plans_Net_Per
Employee Benefit Plans - Net Periodic Defined Benefit Pension and Other Postretirement Benefit Costs (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Settlements or curtailments cost (income) | $1 | $3 | $1 |
U.S. Pension Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | 2 | 6 | 5 |
Interest cost | 7 | 6 | 7 |
Expected return on plan assets | -10 | -10 | -9 |
Net losses | ' | 1 | 1 |
Settlements or curtailments cost (income) | ' | 7 | 1 |
Net periodic benefit cost | -1 | 4 | 5 |
Foreign Pension Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | 9 | 9 | 7 |
Interest cost | 16 | 15 | 11 |
Expected return on plan assets | -19 | -18 | -13 |
Net losses | 3 | 4 | 3 |
Settlements or curtailments cost (income) | 7 | 2 | 1 |
Net periodic benefit cost | 9 | 12 | 9 |
U. S. Postretirement Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | ' | ' | 1 |
Interest cost | 2 | 2 | 2 |
Amortization of prior service cost | -3 | -3 | -3 |
Settlements or curtailments cost (income) | ' | ' | -1 |
Net periodic benefit cost | -1 | -1 | -1 |
Foreign Postretirement Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Interest cost | 1 | 1 | 1 |
Net periodic benefit cost | $1 | $1 | $1 |
Employee_Benefit_Plans_Other_C
Employee Benefit Plans - Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, Pre-Tax (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
U.S. Pension Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Net (gains) losses | ($4) | ($32) | ($3) |
Prior service cost | ' | ' | -1 |
Amortization of prior unrecognized loss | ' | -2 | -1 |
Total other comprehensive (income) loss | -4 | -34 | -5 |
Foreign Pension Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Net (gains) losses | 50 | 8 | 27 |
Amortization of prior unrecognized loss | -3 | -4 | -3 |
Other | -1 | -4 | 1 |
Total other comprehensive (income) loss | 46 | ' | 25 |
U. S. Postretirement Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Net (gains) losses | -4 | -6 | 1 |
Prior service cost | 3 | 3 | 1 |
Amortization of prior service credit | ' | ' | 3 |
Total other comprehensive (income) loss | -1 | -3 | 5 |
Foreign Postretirement Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Net (gains) losses | ' | ' | 1 |
Total other comprehensive (income) loss | ' | ' | $1 |
Employee_Benefit_Plans_Sensiti
Employee Benefit Plans - Sensitivity Analysis (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
U. S. Postretirement Benefits [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
1 -Percent-Point Decrease, Effect on postretirement benefit obligation | ($1) |
Foreign Postretirement Benefits [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
1 -Percent-Point Increase, Effect on postretirement benefit obligation | 3 |
1 -Percent-Point Decrease, Effect on postretirement benefit obligation | ($2) |
Employee_Benefit_Plans_Defined
Employee Benefit Plans - Defined Benefit Pension Plans Weighted-Average Asset Allocations (Detail) | Sep. 30, 2014 | Sep. 30, 2013 |
U.S. Pension Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Equity securities | 55.00% | 63.00% |
Debt securities | 45.00% | 37.00% |
Total | 100.00% | 100.00% |
Foreign Pension Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Equity securities | 37.00% | 41.00% |
Debt securities | 47.00% | 54.00% |
Cash and other securities | 16.00% | 5.00% |
Total | 100.00% | 100.00% |
Employee_Benefit_Plans_Fair_Va
Employee Benefit Plans - Fair Value of Pension Plan Assets by Asset Category (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | ||
In Millions, unless otherwise specified | ||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | $555 | $530 | ||
Total Direct Investments [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 22 | 73 | ||
Total Investment Funds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 451 | 442 | ||
Alternative Investments [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 13 | 12 | ||
Cash [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 69 | 3 | ||
U.S. Equity Securities [Member] | Total Direct Investments [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 22 | 21 | ||
Non-U.S. Government Bonds [Member] | Total Direct Investments [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | ' | 52 | ||
Equity Funds [Member] | Total Investment Funds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 188 | [1] | 233 | [1] |
Fixed Income Funds [Member] | Total Investment Funds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 253 | [2] | 204 | [2] |
Real Estate Funds [Member] | Total Investment Funds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 9 | [3] | 1 | [3] |
Common and Collective Investment Trust Funds [Member] | Total Investment Funds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 1 | [4] | 1 | [4] |
Money Market Funds [Member] | Total Investment Funds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | ' | 3 | ||
Insurance Contracts [Member] | Alternative Investments [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 13 | [5] | 12 | [5] |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 249 | 303 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Total Direct Investments [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 22 | 73 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Total Investment Funds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 158 | 228 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 69 | 2 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Equity Securities [Member] | Total Direct Investments [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 22 | 21 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Non-U.S. Government Bonds [Member] | Total Direct Investments [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | ' | 52 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Funds [Member] | Total Investment Funds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 68 | [1] | 132 | [1] |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Income Funds [Member] | Total Investment Funds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 90 | [2] | 93 | [2] |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money Market Funds [Member] | Total Investment Funds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | ' | 3 | ||
Significant Observable Inputs (Level 2) [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 306 | 227 | ||
Significant Observable Inputs (Level 2) [Member] | Total Investment Funds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 293 | 214 | ||
Significant Observable Inputs (Level 2) [Member] | Alternative Investments [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 13 | 12 | ||
Significant Observable Inputs (Level 2) [Member] | Cash [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | ' | 1 | ||
Significant Observable Inputs (Level 2) [Member] | Equity Funds [Member] | Total Investment Funds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 120 | [1] | 101 | [1] |
Significant Observable Inputs (Level 2) [Member] | Fixed Income Funds [Member] | Total Investment Funds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 163 | [2] | 111 | [2] |
Significant Observable Inputs (Level 2) [Member] | Real Estate Funds [Member] | Total Investment Funds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 9 | [3] | 1 | [3] |
Significant Observable Inputs (Level 2) [Member] | Common and Collective Investment Trust Funds [Member] | Total Investment Funds [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | 1 | [4] | 1 | [4] |
Significant Observable Inputs (Level 2) [Member] | Insurance Contracts [Member] | Alternative Investments [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Total pension plan assets | $13 | [5] | $12 | [5] |
[1] | During fiscal 2013, the Company approved the freezing of the U.S. pension plan that resulted in the remeasurement of the plan assets and liabilities. The remeasurement decreased the net pension obligation of the plan, which is included within the Other liabilities caption on the Consolidated Balance Sheets, by $19 million and increased Accumulated other comprehensive (loss) income by $13 million, net of tax. The impact to the Company's Net periodic benefit cost was less than $1 million. | |||
[2] | The fixed income funds asset class includes investments in high quality funds. High quality fixed income funds primarily invest in low risk U.S. and non-U.S. government securities, investment-grade corporate bonds, mortgages and asset-backed securities. A significant portion of the fixed income funds include investment in long-term bond funds. | |||
[3] | The real estate funds asset class includes funds that primarily invest in entities which are principally engaged in the ownership, acquisition, development, financing, sale and/or management of income-producing real estate properties, both commercial and residential. These funds typically seek long-term growth of capital and current income that is above average relative to public equity funds. | |||
[4] | The investment objective of the portfolio of this common and collective investment trust is to achieve long-term, total return in excess of the MSCI World Index Benchmark by investing in equity securities of companies worldwide, emphasizing those with above-average potential for capital appreciation. | |||
[5] | Insurance contracts held by the Company's non-U.S. plans are issued by well-known, highly rated insurance companies. |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 08, 2012 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||
Common stock, authorized shares | ' | ' | ' | 8,900,000 | ||
Percentage of vesting in first anniversary | 30.00% | ' | ' | ' | ||
Percentage of vesting in second anniversary | 30.00% | ' | ' | ' | ||
Percentage of vesting in third anniversary | 40.00% | ' | ' | ' | ||
Stock based compensation outstanding units | 42,110 | ' | ' | ' | ||
Cash settled awards | $1 | $1 | ' | ' | ||
Net stock-based compensation expense | 9 | 8 | 10 | ' | ||
Closing common stock price | $50.77 | ' | ' | ' | ||
Estimated weighted average grant date fair values of options granted | $18.37 | ' | ' | ' | ||
Stock Options [Member] | ' | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||
Percentage of exercise price equal to market price on the date of grant | 100.00% | ' | ' | ' | ||
Vesting period (in years) | '3 years | ' | ' | ' | ||
Expiration period, years | '10 years | ' | ' | ' | ||
Unrecognized compensation cost | 3 | ' | ' | ' | ||
Weighted-average period, years | '9 months 18 days | ' | ' | ' | ||
Intrinsic value of options exercised | 12 | 5 | 9 | ' | ||
Cash received from exercises | 9 | 5 | 9 | ' | ||
Estimated weighted average grant date fair values of options granted | $18.36 | $12.51 | $11.64 | ' | ||
Restricted Stock [Member] | ' | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||
Vesting period (in years) | '3 years | ' | ' | ' | ||
Stock based compensation outstanding units | 0 | 1,000 | ' | ' | ||
Estimated weighted average grant date fair value | $0 | ' | ' | ' | ||
Awards granted | 0 | 0 | 0 | ' | ||
Restricted Stock [Member] | Maximum [Member] | ' | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||
Intrinsic value of restricted stock units vested | 1 | 1 | 1 | ' | ||
Supplemental 401(k) Plan [Member] | ' | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||
Supplemental retirement savings plan, aggregate value of the accounts, shares | 146,000 | 133,000 | ' | ' | ||
Supplemental retirement savings plan aggregate value of the accounts paid in cash | 1 | 1 | ' | ' | ||
Restricted Stock Units [Member] | ' | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||
Vesting period (in years) | '3 years | ' | ' | ' | ||
Stock based compensation outstanding units | 946,000 | [1] | 1,039,000 | [1] | ' | ' |
Unrecognized compensation cost | 12 | ' | ' | ' | ||
Weighted-average period, years | '1 year 2 months 12 days | ' | ' | ' | ||
Estimated weighted average grant date fair value | $47.63 | $35.28 | $33.15 | ' | ||
Intrinsic value of restricted stock units vested | $17 | $16 | $1 | ' | ||
Awards granted | 322,000 | [1] | ' | ' | ' | |
[1] | The number granted represents the number of shares issuable upon vesting of time-based restricted stock units and performance-based restricted stock units, assuming the Company performs at the target performance level in each year of the three-year performance period. |
StockBased_Compensation_StockB
Stock-Based Compensation - Stock-Based Compensation Expenses (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' |
Stock-based compensation expense before tax | $14 | $12 | $15 |
Income tax benefit | -5 | -4 | -5 |
Net stock-based compensation expense | 9 | 8 | 10 |
Cost of Sales [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' |
Stock-based compensation expense before tax | 5 | 4 | 5 |
Selling and Administrative Expenses [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' |
Stock-based compensation expense before tax | 8 | 7 | 9 |
Research and Technical Expenses [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' |
Stock-based compensation expense before tax | $1 | $1 | $1 |
StockBased_Compensation_Equity
Stock-Based Compensation - Equity Incentive Plan Activity (Detail) (USD $) | 12 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ||
Stock Options, Total Options, Outstanding at September 30, 2013 | 1,623,000 | ' | ' | ||
Stock Options, Total Options, Granted | 203,000 | ' | ' | ||
Stock Options, Total Options, Performance-based adjustment | 0 | [1] | ' | ' | |
Stock Options, Total Options, Exercised / Vested | -403,000 | [1],[2] | ' | ' | |
Stock Options, Total Options, Cancelled / Forfeited | -2,000 | ' | ' | ||
Stock Options, Total Options, Outstanding at September 30, 2014 | 1,421,000 | ' | ' | ||
Stock Options, Total Options, Exercisable at September 30, 2014 | 895,000 | ' | ' | ||
Vested or expected to vest | 1,411,000 | [3] | ' | ' | |
Stock Options, Weighted Average Exercise Price, Outstanding at September 30, 2013 | $26.93 | ' | ' | ||
Stock Options, Weighted Average Exercise Price, Granted | $47.62 | ' | ' | ||
Stock Options, Weighted Average Exercise Price, Performance-based adjustment | $0 | [1] | ' | ' | |
Stock Options, Weighted Average Exercise Price, Exercised / Vested | $22.18 | [2] | ' | ' | |
Stock Options, Weighted Average Exercise Price, Cancelled / Forfeited | $35.25 | ' | ' | ||
Stock Options, Weighted Average Exercise Price, Outstanding at September 30, 2014 | $31.22 | ' | ' | ||
Exercisable at September 30, 2014 | $26.34 | ' | ' | ||
Vested or expected to vest | $31.16 | [3] | ' | ' | |
Stock Options, Weighted Average Grant Date Fair Value, Outstanding at September 30, 2013 | $8.71 | ' | ' | ||
Stock Options, Weighted Average Grant Date Fair Value, Granted | $18.37 | ' | ' | ||
Stock Options, Weighted Average Grant Date Fair Value, Performance-based adjustment | $0 | [1] | ' | ' | |
Stock Options, Weighted Average Grant Date Fair Value, Exercised / Vested | $6.49 | [2] | ' | ' | |
Stock Options, Weighted Average Grant Date Fair Value, Cancelled / Forfeited | $12.46 | ' | ' | ||
Stock Options, Weighted Average Grant Date Fair Value, Outstanding at September 30, 2014 | $10.71 | ' | ' | ||
Restricted Stock / Units, Outstanding at September 30, 2014 | 42,110 | ' | ' | ||
Restricted Stock [Member] | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ||
Restricted Stock / Units, Outstanding at September 30, 2013 | 1,000 | ' | ' | ||
Restricted Stock / Units, Granted | 0 | 0 | 0 | ||
Restricted Stock / Units, Performance-based adjustment | 0 | [1] | ' | ' | |
Restricted Stock / Units, Exercised / Vested | -1,000 | [2] | ' | ' | |
Restricted Stock / Units, Cancelled / Forfeited | 0 | ' | ' | ||
Restricted Stock / Units, Outstanding at September 30, 2014 | 0 | 1,000 | ' | ||
Restricted Stock / Units, Weighted Average Grant Date Fair Value, Outstanding at September 30, 2013 | $9.56 | ' | ' | ||
Restricted Stock / Units, Weighted Average Grant Date Fair Value, Granted | $0 | ' | ' | ||
Restricted Stock / Units, Weighted Average Grant Date Fair Value, Performance-based adjustment | 0 | [1] | ' | ' | |
Restricted Stock / Units, Weighted Average Grant Date Fair Value, Exercised / Vested | $9.56 | [2] | ' | ' | |
Restricted Stock / Units, Weighted Average Grant Date Fair Value, Cancelled / Forfeited | $0 | ' | ' | ||
Restricted Stock / Units, Weighted Average Grant Date Fair Value, Outstanding at September 30, 2014 | $0 | $9.56 | ' | ||
Restricted Stock Units [Member] | ' | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ||
Restricted Stock / Units, Outstanding at September 30, 2013 | 1,039,000 | [4] | ' | ' | |
Restricted Stock / Units, Granted | 322,000 | [4] | ' | ' | |
Restricted Stock / Units, Performance-based adjustment | -25,000 | [1],[4] | ' | ' | |
Restricted Stock / Units, Exercised / Vested | -344,000 | [2],[4] | ' | ' | |
Restricted Stock / Units, Cancelled / Forfeited | -46,000 | [4] | ' | ' | |
Restricted Stock / Units, Outstanding at September 30, 2014 | 946,000 | [4] | 1,039,000 | [4] | ' |
Restricted Stock / Units, Weighted Average Grant Date Fair Value, Outstanding at September 30, 2013 | $34.39 | ' | ' | ||
Restricted Stock / Units, Weighted Average Grant Date Fair Value, Granted | $47.63 | $35.28 | 33.15 | ||
Restricted Stock / Units, Weighted Average Grant Date Fair Value, Performance-based adjustment | 39.76 | [1] | ' | ' | |
Restricted Stock / Units, Weighted Average Grant Date Fair Value, Exercised / Vested | $34.79 | [2] | ' | ' | |
Restricted Stock / Units, Weighted Average Grant Date Fair Value, Cancelled / Forfeited | $36.99 | ' | ' | ||
Restricted Stock / Units, Weighted Average Grant Date Fair Value, Outstanding at September 30, 2014 | $39.31 | $34.39 | ' | ||
[1] | Represents the net number of units cancelled upon vesting of outstanding performance-based restricted stock units, based on the Company's actual performance against the performance targets for the 2014 performance period of the outstanding units. | ||||
[2] | Exercised / Vested includes 122,119 restricted stock units that vested during the year ended September 30, 2014 but were withheld at the request of the award recipient to cover withholding taxes associated with the vesting. These units were added back to the shares available for future issuance under our 2009 Long-Term Incentive Plan. | ||||
[3] | Stock options vested and expected to vest in the future, net of estimated forfeitures, have a weighted average remaining contractual life of 6.7 years. | ||||
[4] | The number granted represents the number of shares issuable upon vesting of time-based restricted stock units and performance-based restricted stock units, assuming the Company performs at the target performance level in each year of the three-year performance period. |
StockBased_Compensation_Equity1
Stock-Based Compensation - Equity Incentive Plan Activity (Parenthetical) (Detail) | 12 Months Ended |
Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Stock options expected to vest in the future, net of estimated forfeitures, weighted average remaining contractual life, in years | '6 years 8 months 12 days |
Restricted Stock Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares vested during the period | 122,119 |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares vested during the period | 122,119 |
StockBased_Compensation_Stock_
Stock-Based Compensation - Stock Options Outstanding and Vested Options (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Total Options Outstanding, Aggregate Intrinsic Value | $28 |
Total Options Outstanding, Weighted Average Remaining Contractual Term (in years) | '6 years 8 months 12 days |
Exercisable Options, Aggregate Intrinsic Value | 22 |
Exercisable Options, Weighted Average Remaining Contractual Term (in years) | '5 years 9 months 18 days |
Vested or Expected to Vest, Aggregate Intrinsic Value | $28 |
Vested or Expected to Vest, Weighted Average Remaining Contractual Term (in years) | '6 years 8 months 12 days |
StockBased_Compensation_Weight
Stock-Based Compensation - Weighted-Average Assumptions (Detail) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Expected stock price volatility | 45.00% | 46.00% | 45.00% |
Risk free interest rate | 1.90% | 0.90% | 1.30% |
Expected life of options (years) | '6 years | '6 years | '6 years |
Expected annual dividends per year | $0.80 | $0.80 | $0.72 |
Restructuring_Recorded_Restruc
Restructuring - Recorded Restructuring Activities (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring reserve, period expense | $29 | $35 | $15 |
Cost of Sales [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring reserve, period expense | 12 | 28 | 13 |
Selling and Administrative Expenses [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring reserve, period expense | $17 | $7 | $2 |
Restructuring_Restructuring_Ac
Restructuring - Restructuring Activities and Related Reserves (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Reserve balance | $10 | $5 | ' |
Charges | 29 | 35 | 15 |
Costs charged against assets and other | -4 | -21 | ' |
Cash paid | -15 | -9 | ' |
Foreign currency translation adjustment | -1 | ' | ' |
Reserve balance | 19 | 10 | 5 |
Severance and Employee Benefits [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Reserve balance | 7 | 2 | ' |
Charges | 18 | 11 | ' |
Cash paid | -8 | -6 | ' |
Foreign currency translation adjustment | -1 | ' | ' |
Reserve balance | 16 | 7 | ' |
Environmental Remediation [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Reserve balance | 2 | 1 | ' |
Charges | 1 | 1 | ' |
Cash paid | -1 | ' | ' |
Reserve balance | 2 | 2 | ' |
Asset Impairment and Accelerated Depreciation [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Charges | 4 | 19 | ' |
Costs charged against assets and other | -4 | -19 | ' |
Asset Sales [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Charges | 1 | ' | ' |
Cash paid | -1 | ' | ' |
Other [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Reserve balance | 1 | 2 | ' |
Charges | 5 | 4 | ' |
Costs charged against assets and other | ' | -2 | ' |
Cash paid | -5 | -3 | ' |
Reserve balance | $1 | $1 | ' |
Restructuring_Additional_Infor
Restructuring - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2015 | Apr. 26, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2015 |
Severance and Employee Benefits [Member] | Severance and Employee Benefits [Member] | Severance and Employee Benefits [Member] | Environmental Remediation [Member] | Environmental Remediation [Member] | Environmental Remediation [Member] | Previous Actions and Sites Pending Sale [Member] | Previous Actions and Sites Pending Sale [Member] | Previous Actions and Sites Pending Sale [Member] | Shared Service Center Transition [Member] | Shared Service Center Transition [Member] | Shared Service Center Transition [Member] | Shared Service Center Transition [Member] | Closure of Port Dickson [Member] | Closure of Port Dickson [Member] | Closure of Port Dickson [Member] | Closure of Port Dickson [Member] | Closure of Port Dickson [Member] | Closure of Port Dickson [Member] | Closure of Port Dickson [Member] | Closure of Port Dickson [Member] | Restructuring Activities Other [Member] | Restructuring Activities Other [Member] | Restructuring Activities Other [Member] | Restructuring Activities Other [Member] | Restructuring Activities Other [Member] | Restructuring Activities Other [Member] | ||||
Scenario, Forecast [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Employees | Severance and Employee Benefits [Member] | Environmental Remediation [Member] | Facility Closure Costs [Member] | Severance Costs [Member] | Scenario, Forecast [Member] | Severance Costs [Member] | Previous Actions and Sites Pending Sale [Member] | Scenario, Forecast [Member] | |||||||||||||||||||
Severance and Employee Benefits [Member] | Other Activity [Member] | Severance Costs [Member] | Severance Costs [Member] | |||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | $29 | $35 | $15 | $18 | $11 | ' | $1 | $1 | ' | $1 | $3 | $14 | $18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected restructuring charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | 163 | ' | ' | 25 | 22 | ' | ' | ' | 2 | 18 | ' | ' | ' | ' | ' | 8 | 13 | 1 | ' | ' | ' |
Severance charges | 3 | 3 | ' | ' | ' | ' | ' | ' | ' | 67 | ' | 3 | 18 | ' | 18 | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other charges | ' | 2 | ' | ' | ' | ' | ' | ' | ' | 22 | ' | 2 | 7 | ' | ' | 4 | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash payments | 15 | 9 | ' | 8 | 6 | ' | 1 | ' | ' | 85 | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 4 | ' | ' | ' | 18 | ' | 3 |
Restructuring costs in accrued expenses | 19 | 10 | 5 | 16 | 7 | 2 | 2 | 2 | 1 | ' | ' | ' | 14 | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity share in CMSB | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Affected employees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accelerated depreciation and asset write-offs | 5 | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portion of the charges that are allocable to the noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Site demolition, clearing and environmental remediation costs | 15 | 1 | 3 | ' | ' | ' | ' | ' | ' | 10 | ' | 3 | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Environmental charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' |
Expected cumulative net cash outlays related to plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | 2 | 5 | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Additional restructuring charges after current fiscal | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued severance charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 3 | ' |
Restructuring accelerated depreciation and asset impairments | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65 | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of asset | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charges during fiscal 2015 and thereafter | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive (Loss) Income - Changes in Each Component of Accumulated Other Comprehensive (Loss) Income, Net of Tax (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Balance attributable to Cabot Corporation | $103 | $92 |
Other comprehensive loss before reclassifications | -171 | 12 |
Amounts reclassified from accumulated other comprehensive income | 0 | 2 |
Other comprehensive (loss) income | -68 | 106 |
Less: Noncontrolling interest | -4 | 3 |
Balance attributable to Cabot Corporation | -64 | 103 |
Currency Translation Adjustment [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Balance attributable to Cabot Corporation | 154 | 167 |
Other comprehensive loss before reclassifications | -131 | -10 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Other comprehensive (loss) income | 23 | 157 |
Less: Noncontrolling interest | -4 | 3 |
Balance attributable to Cabot Corporation | 27 | 154 |
Unrealized Gains on Investments [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Balance attributable to Cabot Corporation | 2 | 0 |
Other comprehensive loss before reclassifications | 0 | 2 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Other comprehensive (loss) income | 2 | 2 |
Less: Noncontrolling interest | 0 | 0 |
Balance attributable to Cabot Corporation | 2 | 2 |
Pension and Other Postretirement Benefit Liability Adjustments [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Balance attributable to Cabot Corporation | -53 | -75 |
Other comprehensive loss before reclassifications | -40 | 20 |
Amounts reclassified from accumulated other comprehensive income | 0 | 2 |
Other comprehensive (loss) income | -93 | -53 |
Less: Noncontrolling interest | 0 | 0 |
Balance attributable to Cabot Corporation | ($93) | ($53) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive (Loss) Income - Amounts Reclassified Out of Accumulated Other Comprehensive (Loss) Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations before income taxes and equity in (loss) earnings of affiliated companies | $71 | $80 | $48 | $109 | $56 | $74 | $37 | $43 | $308 | $210 | $246 |
Tax impact | 41 | 20 | 7 | 24 | 8 | 16 | 16 | 20 | 92 | 60 | 55 |
Income from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 216 | 161 | 202 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations before income taxes and equity in (loss) earnings of affiliated companies | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 2 | 1 |
Tax impact | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Income from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 2 | 1 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension and Other Postretirement Benefit Liability Adjustment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of actuarial losses | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 5 | 4 |
Amortization of prior service cost | ' | ' | ' | ' | ' | ' | ' | ' | ($3) | ($3) | ($3) |
Earnings_Per_Share_Components_
Earnings Per Share - Components of Basic and Diluted Earnings Per Common Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Basic: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to Cabot Corporation | $31 | $52 | $36 | $80 | $47 | $59 | $27 | $20 | $199 | $153 | $388 |
Less: Dividends and dividend equivalents to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Less: Undistributed earnings allocated to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | 3 |
Earnings allocated to common shareholders (numerator) | ' | ' | ' | ' | ' | ' | ' | ' | 197 | 152 | 385 |
Weighted average common shares and participating securities outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 65 | 64.4 | 64 |
Less: Participating securities | ' | ' | ' | ' | ' | ' | ' | ' | 0.6 | 0.6 | 0.6 |
Adjusted weighted average common shares (denominator) | ' | ' | ' | ' | ' | ' | ' | ' | 64.4 | 63.8 | 63.4 |
Income from continuing operations attributable to Cabot Corporation | $0.43 | $0.80 | $0.56 | $1.25 | $0.73 | $0.88 | $0.43 | $0.35 | $3.04 | $2.39 | $2.88 |
Income (loss) from discontinued operations | $0.05 | ($0.01) | ($0.01) | ($0.01) | ' | $0.04 | ($0.01) | ($0.04) | $0.02 | ($0.01) | $3.19 |
Net income attributable to Cabot Corporation | $0.48 | $0.79 | $0.55 | $1.24 | $0.73 | $0.92 | $0.42 | $0.31 | $3.06 | $2.38 | $6.07 |
Diluted: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings allocated to common shareholders | ' | ' | ' | ' | ' | ' | ' | ' | 197 | 152 | 385 |
Plus: Earnings allocated to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | 3 |
Less: Adjusted earnings allocated to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -1 | -3 |
Earnings available to common shares (numerator) | ' | ' | ' | ' | ' | ' | ' | ' | $197 | $152 | $385 |
Adjusted weighted average common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 64.4 | 63.8 | 63.4 |
Common shares issuable | ' | ' | ' | ' | ' | ' | ' | ' | 0.7 | 0.7 | 0.8 |
Adjusted weighted average common shares (denominator) | ' | ' | ' | ' | ' | ' | ' | ' | 65.1 | 64.5 | 64.2 |
Income from continuing operations attributable to Cabot Corporation | $0.43 | $0.79 | $0.55 | $1.24 | $0.72 | $0.87 | $0.43 | $0.35 | $3.01 | $2.37 | $2.84 |
Income (loss) from discontinued operations | $0.05 | ($0.01) | ($0.01) | ($0.01) | $0.01 | $0.03 | ($0.01) | ($0.04) | $0.02 | ($0.01) | $3.15 |
Net income attributable to Cabot Corporation | $0.48 | $0.78 | $0.54 | $1.23 | $0.73 | $0.90 | $0.42 | $0.31 | $3.03 | $2.36 | $5.99 |
Earnings_Per_Share_Calculation
Earnings Per Share - Calculation of Undistributed Earnings (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to Cabot Corporation | $31 | $52 | $36 | $80 | $47 | $59 | $27 | $20 | $199 | $153 | $388 |
Less: Dividends declared on common stock | ' | ' | ' | ' | ' | ' | ' | ' | 54 | 51 | 49 |
Less: Dividends and dividend equivalents to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Undistributed earnings | ' | ' | ' | ' | ' | ' | ' | ' | 144 | 102 | 339 |
Undistributed earnings allocated to common shareholders | ' | ' | ' | ' | ' | ' | ' | ' | 143 | 101 | 336 |
Undistributed earnings allocated to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | $1 | $1 | $3 |
Earnings_Per_Share_Calculation1
Earnings Per Share - Calculation of Undistributed Earnings (Parenthetical) (Detail) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Earnings Per Share [Abstract] | ' | ' | ' |
Incremental shares of common stock | 197,072 | 301,328 | 395,532 |
Income_Taxes_Income_Before_Inc
Income Taxes - Income Before Income Taxes (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Domestic | ' | ' | ' | ' | ' | ' | ' | ' | $50 | $40 | $14 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 258 | 170 | 232 |
Income from continuing operations before income taxes and equity in (loss) earnings of affiliated companies | $71 | $80 | $48 | $109 | $56 | $74 | $37 | $43 | $308 | $210 | $246 |
Income_Taxes_Provision_Benefit
Income Taxes - Provision (Benefit) for Income Taxes (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
U.S. federal and state, Current | ' | ' | ' | ' | ' | ' | ' | ' | ($4) | ($3) | ($1) |
U.S. federal and state, Deferred | ' | ' | ' | ' | ' | ' | ' | ' | -4 | -6 | -8 |
U.S. federal and state, Total | ' | ' | ' | ' | ' | ' | ' | ' | -8 | -9 | -9 |
Foreign, Current | ' | ' | ' | ' | ' | ' | ' | ' | 86 | 70 | 62 |
Foreign, Deferred | ' | ' | ' | ' | ' | ' | ' | ' | 14 | -1 | 2 |
Foreign, Total | ' | ' | ' | ' | ' | ' | ' | ' | 100 | 69 | 64 |
Total U.S and foreign | $41 | $20 | $7 | $24 | $8 | $16 | $16 | $20 | $92 | $60 | $55 |
Income_Taxes_Reconciliation_Us
Income Taxes - Reconciliation Using U.S. Statutory Rate (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Computed tax expense at the federal statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | $108 | $74 | $85 |
Impact of taxation at different rates, repatriation and other | ' | ' | ' | ' | ' | ' | ' | ' | -29 | -27 | -28 |
Impact of increase in valuation allowance on deferred taxes | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' |
Impact of investment incentive credits | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | ' |
Impact of foreign losses for which a current tax benefit is not available | ' | ' | ' | ' | ' | ' | ' | ' | 7 | 9 | 5 |
Impact of non-deductible net currency losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18 | ' |
U.S. and state benefits from research and experimentation activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4 | -2 |
Tax settlements | ' | ' | ' | ' | ' | ' | ' | ' | -7 | -6 | -2 |
Reversal of state tax valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -8 |
Nontaxable gain on existing equity investment | ' | ' | ' | ' | ' | ' | ' | ' | -10 | ' | ' |
Permanent differences, net | ' | ' | ' | ' | ' | ' | ' | ' | 3 | -4 | 5 |
State taxes, net of federal effect | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Total U.S and foreign | $41 | $20 | $7 | $24 | $8 | $16 | $16 | $20 | $92 | $60 | $55 |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Income Taxes (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Deferred expenses | $37 | $29 |
Inventory | 11 | ' |
Other | 20 | 28 |
Pension and other benefits | 74 | 71 |
Net operating loss carry-forwards | 171 | 187 |
Foreign tax credit carry-forwards | 40 | 49 |
R&D credit carry-forwards | 28 | 28 |
Other business credit carry-forwards | 38 | 32 |
Subtotal | 419 | 424 |
Valuation allowances | -186 | -166 |
Total deferred tax assets | 233 | 258 |
Intangible assets | -37 | -28 |
Property, plant and equipment | -143 | -149 |
Total deferred tax liabilities | ($180) | ($177) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | 36 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2011 | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Net discrete tax benefits (charges) related to tax settlements | ($17,000,000) | ($3,000,000) | $11,000,000 | ' | ' |
Charge for valuation allowance on deferred tax assets in foreign jurisdiction | 186,000,000 | 166,000,000 | ' | 186,000,000 | ' |
Charge for return to provision adjustments | 2,000,000 | ' | ' | ' | ' |
Charge for interest on uncertain tax positions | 2,000,000 | ' | ' | ' | ' |
Miscellaneous tax items | 4,000,000 | ' | ' | ' | ' |
Offset of net tax benefit related to tax settlements | 11,000,000 | 10,000,000 | ' | ' | ' |
Foreign currency charge related to tax settlements | ' | 13,000,000 | ' | ' | ' |
Tax benefits from repatriation of high taxed income | ' | ' | 8,000,000 | ' | ' |
Tax settlements | ' | ' | 3,000,000 | ' | ' |
Net operating loss carryforwards | 752,000,000 | ' | ' | 752,000,000 | ' |
Other tax credit carryforwards | 106,000,000 | ' | ' | 106,000,000 | ' |
Undistributed earnings | 1,400,000,000 | ' | ' | 1,400,000,000 | ' |
Tax credits | 74,000,000 | ' | ' | 189,000,000 | ' |
Required future taxable operating income | 218,000,000 | ' | ' | ' | ' |
Expected term to realize deferred tax asset, years | '20 years | ' | ' | ' | ' |
Increased/(decreased) valuation allowance | 20,000,000 | 20,000,000 | ' | ' | ' |
Unrecognized tax benefits | 41,000,000 | 50,000,000 | 55,000,000 | 41,000,000 | 65,000,000 |
Unrecognized tax benefits, recorded | 26,000,000 | ' | ' | 26,000,000 | ' |
Unrecognized tax benefits, not recorded | 15,000,000 | ' | ' | 15,000,000 | ' |
Accruals for penalties | 1,000,000 | 2,000,000 | ' | 1,000,000 | ' |
Accruals for interest | 11,000,000 | 14,000,000 | ' | 11,000,000 | ' |
Favorable impact on tax provision | 35,000,000 | ' | ' | ' | ' |
Total penalties and interest | 3,000,000 | 3,000,000 | 3,000,000 | ' | ' |
U.S. Management [Member] | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Net deferred tax assets | 76,000,000 | ' | ' | 76,000,000 | ' |
U.S. federal [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Years remains subject to examination | '2007 | ' | ' | ' | ' |
U.S. federal [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Years remains subject to examination | '2013 | ' | ' | ' | ' |
State Tax Authorities [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Years remains subject to examination | '2005 | ' | ' | ' | ' |
State Tax Authorities [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Years remains subject to examination | '2013 | ' | ' | ' | ' |
Non-U.S. Jurisdictions [Member] | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Charge for valuation allowance on deferred tax assets in foreign jurisdiction | $20,000,000 | ' | ' | $20,000,000 | ' |
Non-U.S. Jurisdictions [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Years remains subject to examination | '2002 | ' | ' | ' | ' |
Non-U.S. Jurisdictions [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Years remains subject to examination | '2013 | ' | ' | ' | ' |
Income_Taxes_Expiration_Dates_
Income Taxes - Expiration Dates of Carryforwards (Detail) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | ' |
NOLs | $752 |
Credits | 106 |
2015 to 2021 [Member] | ' |
Significant Tax Attributes And Dates Of Expiration [Line Items] | ' |
NOLs | 393 |
Credits | 45 |
2022 and thereafter [Member] | ' |
Significant Tax Attributes And Dates Of Expiration [Line Items] | ' |
NOLs | 65 |
Credits | 37 |
Indefinite Carry-Forwards [Member] | ' |
Significant Tax Attributes And Dates Of Expiration [Line Items] | ' |
NOLs | 294 |
Credits | $24 |
Income_Taxes_Expiration_Dates_1
Income Taxes - Expiration Dates of Carryforwards (Parenthetical) (Detail) | 12 Months Ended |
Sep. 30, 2014 | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | ' |
Expiration periods | '2022 |
Minimum [Member] | ' |
Significant Tax Attributes And Dates Of Expiration [Line Items] | ' |
Expiration periods | '2015 |
Maximum [Member] | ' |
Significant Tax Attributes And Dates Of Expiration [Line Items] | ' |
Expiration periods | '2021 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Balance at beginning of the year | $50 | $55 | $65 |
Additions based on tax provisions related to the current year | 1 | 1 | 4 |
Additions for tax positions of prior years | ' | 2 | ' |
Reductions of tax provisions of prior years | -1 | -5 | -10 |
Reductions related to settlements | -5 | ' | ' |
Reductions from lapse of statute of limitations | -4 | -3 | -4 |
Balance at end of the year | $41 | $50 | $55 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Community | ||||
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Lease expiration period, years | ' | '10 years | ' | ' |
Rent expense under such operating lease agreement | ' | $26,000,000 | $23,000,000 | $15,000,000 |
Aggregate self-insured liability | ' | 6,000,000 | ' | ' |
Charges for environmental expense | ' | 15,000,000 | 1,000,000 | 3,000,000 |
Interest expense | ' | 55,000,000 | 62,000,000 | 46,000,000 |
Non-Controlling Interests [Member] | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Raw materials purchases | ' | 241,000,000 | 150,000,000 | 116,000,000 |
Accounts payable and accrued liabilities | ' | 16,000,000 | 11,000,000 | ' |
Maximum [Member] | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Retention for medical costs per person per annum | ' | 225,000 | ' | ' |
Environmental Matters [Member] | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Reserve for environmental matters | ' | 17,000,000 | 5,000,000 | ' |
Reserve for environmental matters included in accrued expenses | ' | 4,000,000 | 2,000,000 | ' |
Reserve for environmental matters included in other liabilities | ' | 13,000,000 | 3,000,000 | ' |
Cash payments for environmental reserves | ' | 3,000,000 | 2,000,000 | 2,000,000 |
Weighted average risk free rate for environmental liability | ' | 3.00% | ' | ' |
Civil penalty paid by cabot to EPA and LDEQ | 975,000 | ' | ' | ' |
Amount of fund paid by Cabot in environmental mitigation projects | 450,000 | ' | ' | ' |
Expected capital cost to install controls | 85,000,000 | ' | ' | ' |
Number of communities funded under environmental mitigation projects | 3 | ' | ' | ' |
Environmental Matters [Member] | Operating and Maintenance Component [Member] | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Reserve for environmental matters | ' | 7,000,000 | ' | ' |
Expected future payments, 2015 | ' | 4,000,000 | ' | ' |
Expected future payments, 2016 | ' | 6,000,000 | ' | ' |
Expected future payments, thereafter | ' | 4,000,000 | ' | ' |
Environmental Matters [Member] | Maximum [Member] | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Interest expense | ' | 1,000,000 | 1,000,000 | 1,000,000 |
Environmental Matters [Member] | Maximum [Member] | Operating and Maintenance Component [Member] | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Expected future payments, 2017 | ' | 1,000,000 | ' | ' |
Expected future payments, 2018 | ' | 1,000,000 | ' | ' |
Expected future payments, 2019 | ' | 1,000,000 | ' | ' |
Respirator Liabilities [Member] | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Annual fees paid by transferee to transferor company | ' | 400,000 | ' | ' |
Number of claimants | ' | 41,000 | 42,000 | ' |
Respirator reserve | ' | 13,000,000 | ' | ' |
Cash payments for respirator reserves | ' | $2,000,000 | $2,000,000 | $2,000,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Rental Commitments under Non-Cancelable Leases (Detail) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
2015 | $24 |
2016 | 19 |
2017 | 13 |
2018 | 11 |
2019 | 10 |
2020 and thereafter | 70 |
Total future minimum rental commitments | $147 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Schedule of Raw Material Purchased under Long Term Purchase Agreements (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Raw Material Purchased Under Long Term Purchase Agreements [Line Items] | ' | ' | ' |
Raw material purchased | $432 | $441 | $370 |
Reinforcement Materials [Member] | ' | ' | ' |
Raw Material Purchased Under Long Term Purchase Agreements [Line Items] | ' | ' | ' |
Raw material purchased | 354 | 371 | 312 |
Performance Materials [Member] | ' | ' | ' |
Raw Material Purchased Under Long Term Purchase Agreements [Line Items] | ' | ' | ' |
Raw material purchased | 43 | 34 | 47 |
Purification Solutions [Member] | ' | ' | ' |
Raw Material Purchased Under Long Term Purchase Agreements [Line Items] | ' | ' | ' |
Raw material purchased | 32 | 34 | 4 |
Advanced Technologies [Member] | ' | ' | ' |
Raw Material Purchased Under Long Term Purchase Agreements [Line Items] | ' | ' | ' |
Raw material purchased | ' | ' | 6 |
Other [Member] | ' | ' | ' |
Raw Material Purchased Under Long Term Purchase Agreements [Line Items] | ' | ' | ' |
Raw material purchased | $3 | $2 | $1 |
Commitments_and_Contingencies_4
Commitments and Contingencies - Schedule of Components of Purchase Commitments (Detail) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Long-term Purchase Commitment [Line Items] | ' |
Payments Due by Fiscal Year 2015 | $368 |
Payments Due by Fiscal Year 2016 | 302 |
Payments Due by Fiscal Year 2017 | 274 |
Payments Due by Fiscal Year 2018 | 267 |
Payments Due by Fiscal Year 2019 | 259 |
Payments Due Thereafter | 2,490 |
Payments Due, Total | 3,960 |
Reinforcement Materials [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Payments Due by Fiscal Year 2015 | 302 |
Payments Due by Fiscal Year 2016 | 254 |
Payments Due by Fiscal Year 2017 | 233 |
Payments Due by Fiscal Year 2018 | 226 |
Payments Due by Fiscal Year 2019 | 220 |
Payments Due Thereafter | 2,308 |
Payments Due, Total | 3,543 |
Performance Materials [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Payments Due by Fiscal Year 2015 | 43 |
Payments Due by Fiscal Year 2016 | 35 |
Payments Due by Fiscal Year 2017 | 30 |
Payments Due by Fiscal Year 2018 | 30 |
Payments Due by Fiscal Year 2019 | 29 |
Payments Due Thereafter | 168 |
Payments Due, Total | 335 |
Purification Solutions [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Payments Due by Fiscal Year 2015 | 21 |
Payments Due by Fiscal Year 2016 | 12 |
Payments Due by Fiscal Year 2017 | 10 |
Payments Due by Fiscal Year 2018 | 10 |
Payments Due by Fiscal Year 2019 | 9 |
Payments Due Thereafter | 14 |
Payments Due, Total | 76 |
Advanced Technologies [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Payments Due by Fiscal Year 2015 | 2 |
Payments Due by Fiscal Year 2016 | 1 |
Payments Due by Fiscal Year 2017 | 1 |
Payments Due by Fiscal Year 2018 | 1 |
Payments Due by Fiscal Year 2019 | 1 |
Payments Due Thereafter | ' |
Payments Due, Total | $6 |
Concentration_of_Credit_Risk_S
Concentration of Credit Risk - Schedule of Account Receivable (Detail) (Tire Manufacturers [Member], USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Tire Manufacturers [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Accounts receivable | $311 | $298 |
Financial_Information_by_Segme2
Financial Information by Segment & Geographic Area - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment | |||
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of reportable segment | 4 | ' | ' |
Number of operating segments | 4 | ' | ' |
Insurance proceeds | $9 | ' | ' |
Restructuring charges | 29 | 35 | 15 |
Acquisition and integration related charges | 2 | ' | ' |
Reserve for environmental matters | 15 | 1 | 3 |
Performance Materials [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of business activity | 2 | ' | ' |
Certain Item [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Restructuring charges | 29 | 35 | 17 |
Acquisition and integration related charges | 7 | 21 | 26 |
One-time integration costs | ' | 10 | 3 |
Acquisition of accounting adjustments for acquired inventory | ' | 11 | 9 |
Reserve for environmental matters | 18 | 1 | ' |
Foreign currency exchange rate, re measurement income (loss) | 3 | 3 | ' |
Environmental reserves and legal settlements | ' | ' | 14 |
Certain Item [Member] | 2009 Global Restructuring Plan [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Environmental reserves and legal settlements | ' | ' | $8 |
Financial_Information_by_Segme3
Financial Information by Segments & Geographic Area - Schedule of Performance Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Performance Materials [Member] | Performance Materials [Member] | Performance Materials [Member] | Performance Materials [Member] | Performance Materials [Member] | Performance Materials [Member] | Performance Materials [Member] | Performance Materials [Member] | Performance Materials [Member] | |||||||||||
Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Specialty Carbons and Compounds [Member] | Specialty Carbons and Compounds [Member] | Specialty Carbons and Compounds [Member] | Fumed Metal Oxides [Member] | Fumed Metal Oxides [Member] | Fumed Metal Oxides [Member] | |||||||||||
Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | ||||||||||||||
Sales Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $911 | $940 | $898 | $898 | $896 | $901 | $840 | $819 | $3,647 | $3,456 | $947 | $904 | $914 | $647 | $622 | $664 | $300 | $282 | $250 |
Financial_Information_by_Segme4
Financial Information by Segment - Schedule of Advanced Technologies Business Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Inkjet Colorants [Member] | Inkjet Colorants [Member] | Inkjet Colorants [Member] | Aerogel [Member] | Aerogel [Member] | Aerogel [Member] | Elastomer Composites [Member] | Elastomer Composites [Member] | Elastomer Composites [Member] | Specialty Fluids [Member] | Specialty Fluids [Member] | Specialty Fluids [Member] | |||||||||||
Advanced Technologies [Member] | Advanced Technologies [Member] | Advanced Technologies [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | |||||||||||
Advanced Technologies [Member] | Advanced Technologies [Member] | Advanced Technologies [Member] | Advanced Technologies [Member] | Advanced Technologies [Member] | Advanced Technologies [Member] | Advanced Technologies [Member] | Advanced Technologies [Member] | Advanced Technologies [Member] | Advanced Technologies [Member] | Advanced Technologies [Member] | Advanced Technologies [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $911 | $940 | $898 | $898 | $896 | $901 | $840 | $819 | $3,647 | $3,456 | $205 | $215 | $201 | $62 | $64 | $66 | $13 | $21 | $18 | $32 | $29 | $23 | $98 | $101 | $94 |
Financial_Information_by_Segme5
Financial Information by Segments & Geographic Area - Financial Information by Reportable Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external customers | ' | ' | ' | ' | ' | ' | ' | ' | $3,647 | $3,456 | $3,291 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 201 | 190 | 154 |
Equity in earnings of affiliated companies | 2 | -2 | -2 | 2 | 2 | 3 | 3 | 3 | ' | 11 | 11 |
Income (loss) from continuing operations before taxes | 71 | 80 | 48 | 109 | 56 | 74 | 37 | 43 | 308 | 210 | 246 |
Assets | 4,084 | ' | ' | ' | 4,233 | ' | ' | ' | 4,084 | 4,233 | 4,399 |
Total expenditures for additions to long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | 171 | 264 | 622 |
Unallocated and Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external customers | ' | ' | ' | ' | ' | ' | ' | ' | 104 | 107 | 96 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4 | 5 |
Equity in earnings of affiliated companies | ' | ' | ' | ' | ' | ' | ' | ' | -4 | -4 | -11 |
Income (loss) from continuing operations before taxes | ' | ' | ' | ' | ' | ' | ' | ' | -139 | -176 | -164 |
Assets | 217 | ' | ' | ' | 460 | ' | ' | ' | 217 | 460 | 524 |
Total expenditures for additions to long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | 6 | 3 | 6 |
Reinforcement Materials [Member] | Operating Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external customers | ' | ' | ' | ' | ' | ' | ' | ' | 2,076 | 1,902 | 2,019 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 87 | 81 | 82 |
Equity in earnings of affiliated companies | ' | ' | ' | ' | ' | ' | ' | ' | -3 | 9 | 9 |
Income (loss) from continuing operations before taxes | ' | ' | ' | ' | ' | ' | ' | ' | 242 | 188 | 227 |
Assets | 1,628 | ' | ' | ' | 1,512 | ' | ' | ' | 1,628 | 1,512 | 1,527 |
Total expenditures for additions to long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | 65 | 172 | 163 |
Performance Materials [Member] | Operating Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external customers | ' | ' | ' | ' | ' | ' | ' | ' | 947 | 904 | 914 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 50 | 49 | 47 |
Equity in earnings of affiliated companies | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 2 | 1 |
Income (loss) from continuing operations before taxes | ' | ' | ' | ' | ' | ' | ' | ' | 158 | 132 | 128 |
Assets | 670 | ' | ' | ' | 688 | ' | ' | ' | 670 | 688 | 717 |
Total expenditures for additions to long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | 28 | 46 | 87 |
Advanced Technologies [Member] | Operating Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external customers | ' | ' | ' | ' | ' | ' | ' | ' | 205 | 215 | 201 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 10 | 10 | 12 |
Income (loss) from continuing operations before taxes | ' | ' | ' | ' | ' | ' | ' | ' | 66 | 70 | 50 |
Assets | 180 | ' | ' | ' | 185 | ' | ' | ' | 180 | 185 | 198 |
Total expenditures for additions to long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 5 | 16 |
Purification Solutions [Member] | Operating Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external customers | ' | ' | ' | ' | ' | ' | ' | ' | 315 | 328 | 61 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 54 | 54 | 8 |
Equity in earnings of affiliated companies | ' | ' | ' | ' | ' | ' | ' | ' | 6 | 4 | 1 |
Income (loss) from continuing operations before taxes | ' | ' | ' | ' | ' | ' | ' | ' | -19 | -4 | 5 |
Assets | 1,389 | ' | ' | ' | 1,388 | ' | ' | ' | 1,389 | 1,388 | 1,433 |
Total expenditures for additions to long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | 64 | 38 | 350 |
Segment Total [Member] | Operating Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from external customers | ' | ' | ' | ' | ' | ' | ' | ' | 3,543 | 3,349 | 3,195 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 201 | 194 | 149 |
Equity in earnings of affiliated companies | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 15 | 11 |
Income (loss) from continuing operations before taxes | ' | ' | ' | ' | ' | ' | ' | ' | 447 | 386 | 410 |
Assets | 3,867 | ' | ' | ' | 3,773 | ' | ' | ' | 3,867 | 3,773 | 3,875 |
Total expenditures for additions to long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | $165 | $261 | $616 |
Financial_Information_by_Segme6
Financial Information by Segments & Geographic Area - Royalties Paid by Equity Affiliates, External Shipping and Handling Fees, Impact of Corporate Adjustment for Unearned Revenue and Notes Receivable Reflected by Unallocated and Other (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Unallocated and Other [Member] | Unallocated and Other [Member] | Unallocated and Other [Member] | Unallocated and Other [Member] | Unallocated and Other [Member] | Unallocated and Other [Member] | Unallocated and Other [Member] | Unallocated and Other [Member] | Unallocated and Other [Member] | |||||||||||
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 [Member] | 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 [Member] | 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 [Member] | Shipping and Handling Costs [Member] | Shipping and Handling Costs [Member] | Shipping and Handling Costs [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $911 | $940 | $898 | $898 | $896 | $901 | $840 | $819 | $3,647 | $3,456 | $104 | $107 | $96 | ($7) | $5 | $11 | $111 | $102 | $85 |
Financial_Information_by_Segme7
Financial Information by Segment & Geographic Area - Schedule of Income (Loss) from Continuing Operations before Taxes for Unallocated and Other (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ($55) | ($62) | ($46) |
Equity in earnings of affiliated companies, net of tax | 2 | -2 | -2 | 2 | 2 | 3 | 3 | 3 | ' | 11 | 11 |
Income from continuing operations before income taxes and equity in (loss) earnings of affiliated companies | 71 | 80 | 48 | 109 | 56 | 74 | 37 | 43 | 308 | 210 | 246 |
Unallocated and Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -55 | -62 | -46 |
Total certain items, pre-tax | ' | ' | ' | ' | ' | ' | ' | ' | -28 | -54 | -51 |
Equity in earnings of affiliated companies, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | -4 | -4 | -11 |
Unallocated corporate costs | ' | ' | ' | ' | ' | ' | ' | ' | -54 | -48 | -56 |
General unallocated expense | ' | ' | ' | ' | ' | ' | ' | ' | -2 | -1 | ' |
Income from continuing operations before income taxes and equity in (loss) earnings of affiliated companies | ' | ' | ' | ' | ' | ' | ' | ' | ($139) | ($176) | ($164) |
Financial_Information_by_Segme8
Financial Information by Segment & Geographic Area - Revenue from External Customers and Long-Lived Asset Information by Geographic Area (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Sales Information [Line Items] | ' | ' | ' |
Revenues from external customers | $3,647 | $3,456 | $3,291 |
Net property, plant and equipment | 1,581 | 1,600 | 1,547 |
United States [Member] | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' |
Revenues from external customers | 847 | 818 | 686 |
Net property, plant and equipment | 496 | 488 | 481 |
China [Member] | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' |
Revenues from external customers | 628 | 558 | 543 |
Net property, plant and equipment | 355 | 385 | 305 |
The Netherlands [Member] | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' |
Revenues from external customers | 220 | 224 | 131 |
Net property, plant and equipment | 197 | 211 | 208 |
Other Foreign Countries [Member] | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' |
Revenues from external customers | 1,952 | 1,856 | 1,931 |
Net property, plant and equipment | $533 | $516 | $553 |
Unaudited_Quarterly_Financial_2
Unaudited Quarterly Financial Information - Schedule of Quarterly Financial Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and other operating revenues | $911 | $940 | $898 | $898 | $896 | $901 | $840 | $819 | $3,647 | $3,456 | ' |
Gross profit | 182 | 184 | 176 | 179 | 167 | 176 | 143 | 147 | 721 | 633 | 644 |
Selling and administrative expenses | 81 | 76 | 92 | 77 | 75 | 72 | 77 | 73 | 326 | 297 | 281 |
Research and technical expenses | 14 | 15 | 16 | 15 | 18 | 17 | 16 | 17 | 60 | 68 | 72 |
Income from operations | 87 | 93 | 68 | 87 | 74 | 87 | 50 | 57 | 335 | 268 | 291 |
Net interest expense and other charges | -16 | -13 | -20 | 22 | -18 | -13 | -13 | -14 | -27 | -58 | ' |
Income from continuing operations before income taxes and equity in (loss) earnings of affiliated companies | 71 | 80 | 48 | 109 | 56 | 74 | 37 | 43 | 308 | 210 | 246 |
Provision for income taxes | -41 | -20 | -7 | -24 | -8 | -16 | -16 | -20 | -92 | -60 | -55 |
Equity in earnings of affiliated companies | 2 | -2 | -2 | 2 | 2 | 3 | 3 | 3 | ' | 11 | 11 |
(Loss) income from discontinued operations, net of tax | 4 | -1 | ' | -1 | 1 | 1 | -1 | -2 | 2 | -1 | 204 |
Net income | 36 | 57 | 39 | 86 | 51 | 62 | 23 | 24 | 218 | 160 | 406 |
Net income (loss) attributable to noncontrolling interests, net of tax | 5 | 5 | 3 | 6 | 4 | 3 | -4 | 4 | 19 | 7 | 18 |
Net income attributable to Cabot Corporation | $31 | $52 | $36 | $80 | $47 | $59 | $27 | $20 | $199 | $153 | $388 |
Income per share-basic: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations | $0.43 | $0.80 | $0.56 | $1.25 | $0.73 | $0.88 | $0.43 | $0.35 | $3.04 | $2.39 | $2.88 |
(Loss) income from discontinued operations | $0.05 | ($0.01) | ($0.01) | ($0.01) | ' | $0.04 | ($0.01) | ($0.04) | $0.02 | ($0.01) | $3.19 |
Net income attributable to Cabot Corporation | $0.48 | $0.79 | $0.55 | $1.24 | $0.73 | $0.92 | $0.42 | $0.31 | $3.06 | $2.38 | $6.07 |
Income per share-diluted: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations | $0.43 | $0.79 | $0.55 | $1.24 | $0.72 | $0.87 | $0.43 | $0.35 | $3.01 | $2.37 | $2.84 |
(Loss) income from discontinued operations | $0.05 | ($0.01) | ($0.01) | ($0.01) | $0.01 | $0.03 | ($0.01) | ($0.04) | $0.02 | ($0.01) | $3.15 |
Net income attributable to Cabot Corporation | $0.48 | $0.78 | $0.54 | $1.23 | $0.73 | $0.90 | $0.42 | $0.31 | $3.03 | $2.36 | $5.99 |