View Filing Data

Selling and administrative expenses

^[1]

$ 846

$ 836

$ 2,452

$ 2,269

Cost of sales

671

684

1,961

1,852

Gross profit

175

152

491

417

199

186

Research and technical expenses

Income from operations

238

182

Interest and dividend income

Interest expense

(11)

(9)

(30)

(29)

Other (expense) income

(2)

(5)

(2)

Income from continuing operations before income taxes and equity in net earnings of affiliated companies

^[2]

209

156

Provision for income taxes

(16)

(10)

(55)

(4)

Equity in net earnings of affiliated companies

Income from continuing operations

162

158

Income from discontinued operations, net of tax

204

Net income

366

203

Net income attributable to noncontrolling interests, net of tax

Weighted-average common shares outstanding, in millions:

$ 66

$ 60

$ 352

$ 186

Basic

63.4

64.7

63.3

64.6

Diluted

64.3

65.6

64.2

65.4

Basic:

Income from continuing operations attributable to Cabot Corporation

$ 0.97

$ 0.74

$ 2.32

$ 2.16

0.07

0.19

3.18

0.68

Income from continuing operations attributable to Cabot Corporation

1.04

0.93

5.50

2.84

Diluted:

0.96

0.73

2.29

2.13

0.06

0.19

3.14

0.68

Dividends per common share

1.02

0.92

5.43

2.81

$ 0.20

$ 0.18

$ 0.56

$ 0.54

[1]	Unallocated and Other reflects royalties paid by equity affiliates, external shipping and handling fees, and other operating revenues, which includes the impact of the corporate adjustment for unearned revenue.
[2]	Unallocated and Other includes certain items and eliminations that are not allocated to the operating segments. Management does not consider these items necessary for an understanding of the operating results of these segments and such amounts are excluded in the segment reporting to the Chief Operating Decision Maker.

Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2012	Sep. 30, 2011
Current assets:
Cash and cash equivalents	$ 407	$ 286
Accounts and notes receivable, net of reserve for doubtful accounts of $4 and $4	710	659
Inventories:
Raw materials	113	120
Work in process	3	3
Finished goods	255	233
Other	40	37
Total inventories	411	393
Prepaid expenses and other current assets	64	76
Deferred income taxes	25	35
Current assets held for sale		106
Total current assets	1,617	1,555
Property, plant and equipment, net	1,073	1,036
Goodwill	40	40
Equity affiliates	69	60
Assets held for rent	47	46
Notes receivable from sale of business	243
Deferred income taxes	187	261
Other assets	93	104
Noncurrent assets held for sale		39
Total assets	3,369	3,141
Current liabilities:
Notes payable to banks	102	86
Accounts payable and accrued liabilities	440	461
Income taxes payable	43	34
Deferred income taxes	7	6
Current portion of long-term debt	38	57
Current liabilities held for sale		12
Total current liabilities	630	656
Long-term debt	559	556
Deferred income taxes	10	8
Other liabilities	280	299
Noncurrent liabilities held for sale		6
Commitments and contingencies (Note F)
Stockholders' equity:
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: 63,538,821 and 63,894,443 shares Outstanding: 63,284,702 and 63,860,777 shares	64	64
Less cost of 254,119 and 33,666 shares of common treasury stock	(8)	(1)
Additional paid-in capital	16	18
Retained earnings	1,630	1,314
Deferred employee benefits	(10)	(14)
Accumulated other comprehensive income	71	106
Total Cabot Corporation stockholders' equity	1,763	1,487
Noncontrolling interests	127	129
Total stockholders' equity	1,890	1,616
Total liabilities and stockholders' equity	$ 3,369	$ 3,141

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2012	Sep. 30, 2011
Accounts and notes receivable, reserve for doubtful accounts	$ 4	$ 4
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	63,538,821	63,894,443
Common stock, outstanding shares	63,284,702	63,860,777
Common treasury stock, shares	254,119	33,666

Consolidated Statements Of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash Flows from Operating Activities:
Net income	$ 366	$ 203
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	111	105
Deferred tax provision (benefit)	18	(16)
Gain on sale of business, net of tax	(190)
Loss on sale of property, plant and equipment	3	3
Equity in net earnings of affiliated companies	(8)	(6)
Non-cash compensation	16	16
Changes in assets and liabilities:
Accounts and notes receivable	(75)	(96)
Inventories	(55)	(46)
Prepaid expenses and other current assets	21	2
Accounts payable and accrued liabilities	5	(39)
Income taxes payable	(23)	(14)
Other liabilities	(2)
Cash dividends received from equity affiliates	4	4
Other	(7)	1
Cash provided by operating activities	184	117
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(176)	(129)
Proceeds from sale of business	181
Receipts from notes receivable from sale of business	22
Increase in assets held for rent		(7)
Investment in equity affiliate		(2)
Cash used in investing activities	27	(138)
Cash Flows from Financing Activities:
Borrowings under financing arrangements	69	43
Repayments under financing arrangements	(62)	(35)
Proceeds from long-term debt	8
Repayments of long-term debt	(24)	(20)
Increase in notes payable to banks, net	9	23
Proceeds from cash contributions received from noncontrolling stockholders	4
Purchases of common stock	(36)	(9)
Proceeds from sales of common stock	9	4
Cash dividends paid to noncontrolling interests	(16)	(9)
Cash dividends paid to common stockholders	(36)	(35)
Proceeds from restricted stock loan payments	1	3
Cash used in financing activities	(74)	(35)
Effect of exchange rate changes on cash	(16)	13
Increase (decrease) in cash and cash equivalents	121	(43)
Cash and cash equivalents at beginning of period	286	387
Cash and cash equivalents at end of period	$ 407	$ 344

Consolidated Statement Of Changes In Stockholders' Equity And Comprehensive Income - USD ($)
$ in Millions

Total

Common Stock

Additional Paid-in Capital

Retained Earnings

Deferred Compensation, Share-based Payments

Accumulated Other Comprehensive Income

Cabot Corporation Stockholders' Equity

Noncontrolling Interest

Comprehensive Income

Beginning Balance at Sep. 30, 2010

$ 1,417

$ 63

$ 46

$ 1,125

$ (20)

$ 88

$ 1,302

$ 115

Beginning Balance, Shares at Sep. 30, 2010

65,370,000

Foreign currency translation adjustment, net of tax

186

$ 186

Change in unrealized loss on investments and derivatives, net of tax

(1)

Total other comprehensive income (loss)

Comprehensive income attributable to Cabot Corporation, net of tax

^[1]

224

Net income attributable to noncontrolling interests, net of tax

(17)

Noncontrolling interests foreign currency adjustment

Comprehensive income attributable to noncontrolling interests, net of tax

^[1]

Comprehensive income

^[1]

245

Noncontrolling interests - dividends

(11)

Cash dividends paid to common stockholders

(35)

Issuance of stock under employee compensation plans, net of forfeitures

$ 1

Issuance of stock under employee compensation plans, net of forfeitures, Shares

268,000

Amortization of share-based compensation

Purchase and retirement of common and treasury stock

(9)

Purchase and retirement of common and treasury stock, Shares

(232,000)

Notes receivable for restricted stock - payments

Principal payment by Employee Stock Ownership Plan under guaranteed loan

Ending Balance at Jun. 30, 2011

1,635

$ 64

1,276

(16)

126

1,510

125

Ending Balance, Shares at Jun. 30, 2011

65,406,000

Beginning Balance at Sep. 30, 2011

1,616

$ 63

1,314

(14)

106

1,487

129

Beginning Balance, Shares at Sep. 30, 2011

63,861

Foreign currency translation adjustment, net of tax

352

(32)

Comprehensive income attributable to Cabot Corporation, net of tax

^[2]

317

Net income attributable to noncontrolling interests, net of tax

(14)

Noncontrolling interests foreign currency adjustment

(3)

Comprehensive income attributable to noncontrolling interests, net of tax

^[2]

Comprehensive income

^[2]

328

Noncontrolling interests - dividends

(17)

Cash dividends paid to common stockholders

(36)

Issuance of stock under employee compensation plans, net of forfeitures

$ 2

Issuance of stock under employee compensation plans, net of forfeitures, Shares

546,000

Amortization of share-based compensation

Purchase and retirement of common and treasury stock

(28)

$ (1)

(27)

(28)

Purchase and retirement of common and treasury stock, Shares

(872,000)

Notes receivable for restricted stock - payments

Principal payment by Employee Stock Ownership Plan under guaranteed loan

Ending Balance at Jun. 30, 2012

1,890

$ 56

$ 16

$ 1,630

$ (10)

1,763

127

Ending Balance, Shares at Jun. 30, 2012

63,285,000

Change in employee benefit plans, net of tax

$ (3)

(3)

Total other comprehensive income (loss)

$ (35)

Contribution from noncontrolling interests

$ 4

Purchase of common stock held in treasury

$ (8)

Purchase of common stock held in treasury, Shares

(250,000)

[1]	Comprehensive income for the three months ended June 30, 2011 was $86 million, which consists of comprehensive income attributable to Cabot Corporation, net of tax, of $78 million and comprehensive income attributable to noncontrolling interests, net of tax, of $8 million.
[2]	Comprehensive income for the three months ended June 30, 2012 was $29 million, which consists of comprehensive income attributable to Cabot Corporation, net of tax, of $29 million.

Consolidated Statement Of Changes In Stockholders' Equity And Comprehensive Income (Parenthetical) - USD ($)
$ in Millions

3 Months Ended

9 Months Ended

Jun. 30, 2012

Jun. 30, 2011

Jun. 30, 2012

^[1]

Jun. 30, 2011

^[2]

Comprehensive income

$ 29

$ 86

$ 328

$ 245

Comprehensive income net of tax attributable to noncontrolling interests

Comprehensive income attributable to Cabot Corporation, net of tax

$ 29

$ 78

[1]	Comprehensive income for the three months ended June 30, 2012 was $29 million, which consists of comprehensive income attributable to Cabot Corporation, net of tax, of $29 million.
[2]	Comprehensive income for the three months ended June 30, 2011 was $86 million, which consists of comprehensive income attributable to Cabot Corporation, net of tax, of $78 million and comprehensive income attributable to noncontrolling interests, net of tax, of $8 million.

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to noncontrolling interests. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the economic entity, including both controlling (parent) and noncontrolling interests. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, including any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

Basis of Presentation

9 Months Ended

Jun. 30, 2012

Basis of Presentation

A. Basis of Presentation

The consolidated financial statements include the accounts of Cabot Corporation (“Cabot” or the “Company”) 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.

The unaudited consolidated financial statements have been prepared in accordance with the requirements of Form 10-Q and consequently do not include all disclosures required by Form 10-K. Additional information may be obtained by referring to Cabot’s Annual Report on Form 10-K for the fiscal year ended September 30, 2011 (“2011 10-K”).

The financial information submitted herewith is unaudited and reflects all adjustments which are, in the opinion of management, necessary to provide a fair statement of the results for the interim periods ended June 30, 2012 and 2011. All such adjustments are of a normal recurring nature. The results for interim periods are not necessarily indicative of the results to be expected for the fiscal year.

In January 2012, Cabot sold substantially all of the assets of its Supermetals Business to Global Advanced Metals Pty Ltd., an Australian company (“GAM”), in accordance with a Sale and Purchase Agreement. The Consolidated Statements of Operations for all periods presented have been recast to reflect the presentation of discontinued operations. Unless otherwise indicated, all disclosures and amounts in the Notes to the Consolidated Financial Statements relate to the Company’s continuing operations.

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Number 94-6
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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Significant Accounting Policies

Significant Accounting Policies

9 Months Ended

Jun. 30, 2012

B. Significant Accounting Policies

Revenue Recognition and Accounts Receivable

Cabot recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the sales price is fixed or determinable and collectibility 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:


	Three months ended June 30						Nine months ended June 30
	2012			2011			2012			2011
Core Segment		63	%		65	%		65	%		65	%
Performance Segment		30	%		30	%		29	%		30	%
New Business Segment		4	%		4	%		3	%		4	%
Specialty Fluids Segment		3	%		1	%		3	%		1	%

Cabot derives substantially all of its revenues from the sale of products in the Core and Performance Segments. 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 the New Business Segment 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 segment’s revenue may be recognized using proportional performance.

A significant portion of the revenue in the Specialty Fluids Segment 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 the sale of cesium formate outside of a rental process and revenue is recognized upon delivery of the fluid.

Cabot maintains allowances for doubtful accounts based on an assessment of the collectibility 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. Changes in the allowance during the first nine months of fiscal 2012 and 2011 were immaterial. There is no off-balance sheet credit exposure related to customer receivable balances.

Cost of Sales

Cost of sales consists of 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 expense necessary to manufacture the products.

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.

Goodwill

Goodwill is comprised of the cost 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, or when events or changes in the business environment indicate that the carrying value of the reporting unit may exceed its fair value.

Goodwill is tested for impairment at the reporting unit level annually, or more frequently when events or changes in circumstances indicate that the fair value of a reporting unit has more likely than not declined below its carrying value. The Company has three reporting units that carry goodwill balances: Rubber Blacks, Fumed Metal Oxides, and Security Materials. During fiscal 2012, the Company adopted the authoritative guidance that simplifies how entities test goodwill for impairment and permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value amount and as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. Alternatively, the Company may elect to proceed directly to the two-step goodwill impairment test. 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, additional quantitative evaluation is performed under the two-step 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 Company primarily utilizes a discounted cash flow methodology to calculate the fair value of its reporting units. See Note E for further information on goodwill.

Financial Instruments

Cabot’s financial instruments consist primarily of cash and cash equivalents, accounts and notes receivable, investments, notes receivable from the sale of 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 long-term debt that has not been designated as part of a fair value hedge. The non-hedged long-term debt 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 interest rates and 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 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 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.

Income Tax in Interim Periods

The Company records its tax provision or benefit on an interim basis using an estimated annual effective tax rate. This rate is applied to the current period ordinary income or loss to determine the income tax provision or benefit allocated to the interim period. Losses from jurisdictions for which no benefit can be recognized and the income tax effects of unusual or infrequent items are excluded from the estimated annual effective tax rate and are recognized in the impacted interim period.

Valuation allowances are provided against the future tax benefits that arise from the deferred tax assets in jurisdictions for which no benefit can be recognized. The estimated annual effective tax rate may be significantly impacted by nondeductible expenses and the Company’s projected earnings mix by tax jurisdiction. Adjustments to the estimated annual effective income tax rate are recognized in the period when such estimates are revised.

Inventory Valuation

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. Had the Company used the first-in, first-out (“FIFO”) method instead of the LIFO method for such inventories, the value of those inventories would have been $52 million and $53 million higher as of June 30, 2012 and September 30, 2011, respectively. The cost of Specialty Fluids inventories is determined using the average cost method. The cost of other U.S. and all non-U.S. inventories is determined using the FIFO method.

During the three and nine months ended June 30, 2012, inventory quantities were reduced at the Company’s U.S. Rubber Blacks and Performance Products sites. These reductions led to liquidations of LIFO inventory quantities and resulted in a decrease of cost of goods sold of $1 million and an increase in net income of $1 million ($0.01 per diluted common share). No such reductions occurred in either the three or nine months ended June 30, 2011.

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. There were no significant write-downs in either the three or nine months ended June 30, 2012 or 2011.

Discontinued Operations

9 Months Ended

Jun. 30, 2012

Discontinued Operations

C. Discontinued Operations

In January 2012, the Company completed the sale of its Supermetals Business to Global Advanced Metals Pty Ltd., an Australian company (“GAM”), pursuant to a Sale and Purchase Agreement (“SPA”) entered into between the Company and GAM in August 2011. The total minimum consideration for the sale was approximately $450 million, including cash consideration of $175 million received on the closing date. In addition, the Company (i) received two-year promissory notes, which may be prepaid by GAM at any time prior to maturity, for total aggregate payments of $215 million (consisting of principal, imputed interest and a prepayment penalty, if applicable), secured by liens on the property and assets of the acquired business and guaranteed by the GAM corporate group and (ii) will receive quarterly cash payments in each calendar quarter that the promissory notes are outstanding in an amount equal to 50% of cumulative year to date adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) of the acquired business for the relevant calendar quarter. Regardless of the Adjusted EBITDA generated, a minimum payment of $11.5 million is guaranteed in the first year following the closing of the transaction pursuant to one-year promissory notes. Together, these notes are referred to as the “GAM Promissory Notes”. The Company has accounted for the Adjusted EBITDA payments as part of the notes as the required payments are not freestanding instruments, and are connected with the repayment of the GAM Promissory Notes.

Included in the $450 million minimum consideration the Company will receive for the sale of the business is approximately $50 million for the excess Supermetals inventory the Company sold to GAM in connection with the transaction. Payment for the excess inventory was made with a two-year promissory note (“the GAM Inventory Note”), which is also secured by liens on the property and assets of the acquired business and guaranteed by the GAM corporate group. The GAM Inventory Note may be repaid at any time, and is subject to prepayment if excess cash flows, as defined in the agreement, are generated by the business. The GAM Inventory Note bears interest of 10% per annum beginning January 2013. If the GAM Promissory Notes are prepaid in full, the GAM Inventory Note must also be prepaid. Other than the $11.5 million guaranteed to be paid within the first year, the remaining balance of the GAM Promissory Notes and Inventory Note will mature in the second quarter of fiscal 2014.

The GAM Promissory Notes and Inventory Note (referred to collectively as the “GAM Notes”) were recorded at their fair value of $273 million at the closing date. The fair value of the GAM Notes was based on the timing of expected cash flows and appropriate discount rates. The difference between the carrying value of the GAM Notes and the contractual payment obligation (the discount) is being accreted into interest income over the term of the GAM Notes. Payments made while the GAM Promissory Notes are outstanding that are contingent upon the finalization of the annual Adjusted EBITDA calculation will be recognized into interest income when such amount is known. The carrying value of the GAM Notes at June 30, 2012 is $253 million, of which $10 million is included in Prepaid expenses and other current assets on the Consolidated Balance Sheet as of June 30, 2012 and $243 million is presented as Notes receivable from sale of business.

The Company recorded an after-tax gain on the sale of $4 million, which is included in Income from discontinued operations, net of tax in the Consolidated Statements of Operations for the three months ended June 30, 2012 related to amounts received as post-closing purchase price adjustments. The Company recorded an after-tax gain on the sale of $190 million, which is included in Income from discontinued operations, net of tax in the Consolidated Statements of Operations for the nine months ended June 30, 2012. Additional amounts relating to pension settlements and other items as defined in the SPA will be recognized as discontinued operations when finalized or settled.

The operating results of the Supermetals Business prior to the sale are reported within Income from discontinued operations, net of tax, in the Consolidated Statements of Operations and have been excluded from segment results presented in Note N. The assets and liabilities associated with the Supermetals Business are presented as Assets held for sale and Liabilities held for sale in the Consolidated Balance Sheet as of September 30, 2011. All previously reported financial information has been recast to conform to the current presentation.

The following table summarizes the results from discontinued operations during the three months and nine months ended June 30, 2012 and 2011:


	Three Months Ended June 30						Nine Months Ended June 30
	2012			2011			2012			2011
	(Dollars in millions)
Net sales and other operating revenues	$	—		$	47		$	46		$	158

Income from operations before income taxes		—			21			21			69
Provision for income taxes on operations		—			(8	)		(7	)		(24	)

Income from operations, net of tax		—			13			14			45

Gain on sale of discontinued operations		6			—			300			—
Provision for income taxes on gain on sale		(2	)		—			(110	)		—

Gain on sale of discontinued operations, net of tax		4			—			190			—

Income from discontinued operations, net of tax	$	4		$	13		$	204		$	45

The following table summarizes the assets and liabilities held for sale in the Company’s Consolidated Balance Sheet as of September 30, 2011. There are no material assets and liabilities held for sale of as June 30, 2012.


	September 30, 2011
	(Dollars in millions)
Assets
Accounts and notes receivable, net of reserve for doubtful accounts	$	41
Inventories		64
Prepaid expenses and other current assets		1

Total Current assets held for sale	$	106

Net property, plant and equipment	$	39

Total Noncurrent assets held for sale	$	39

Liabilities
Accounts payable and accrued liabilities	$	12

Total Current liabilities held for sale	$	12

Other liabilities	$	6

Total Noncurrent liabilities held for sale	$	6

In connection with the sale of the Supermetals Business, the parties entered into a tantalum ore supply agreement under which the Company will sell to GAM all of the tantalum ore mined at the Company’s mine in Manitoba, Canada, subject to a maximum amount, for a three-year period commencing in 2013. The Company also entered into a short-term transition services agreement for the Company to provide certain information technology applications and infrastructure and various administrative services to GAM in exchange for one time and monthly service fees. The future continuing cash flows from the disposed business to Cabot resulting from the tantalum ore supply agreement and transition services agreement are not significant and do not constitute a material continuing financial interest in the Supermetals Business. Revenues, costs and expenses arising from the tantalum ore supply agreement and transition services agreement are included in the Company’s continuing operations.

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

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Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43-48
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Employee Benefit Plans

9 Months Ended

Jun. 30, 2012

Employee Benefit Plans

D. Employee Benefit Plans

Curtailment of employee benefit plan

During the nine months ended June 30, 2012, the Company incurred curtailments and settlement losses (gains) in the U.S. and foreign employee benefit plans as a result of the sale of the Supermetals business and the freezing of two defined benefit plans in foreign affiliates. The net impact of these items was a $1 million loss during the nine months ended June 30, 2012. During the first nine months of fiscal 2011, the Company incurred a curtailment in one of its foreign employee benefit plans as a result of the action taken in the 2009 Global Restructuring Plan. Associated with this curtailment, the Company recognized a $1 million benefit in the first nine months of fiscal 2011.

Net periodic defined benefit pension and other postretirement benefit costs

Net periodic defined benefit pension and other postretirement benefit costs include the following:


	Three Months Ended June 30
	2012						2011						2012					2011
	Pension Benefits												Postretirement Benefits
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign		U.S.			Foreign
	(Dollars in millions)
Service cost	$	1		$	2		$	1		$	2		$	—		$	—	$	—		$	—
Interest cost		1			3			2			2			1			1		1			—
Expected return on plan assets		(2	)		(3	)		(2	)		(3	)		—			—		—			—
Amortization of prior service credit		—			—			—			—			—			—		—			—
Amortization of actuarial loss		—			1			—			—			—			—		—			—
Curtailment/settlement loss (gain)		—			—			—			—			—			—		—			—

Net periodic benefit cost	$	—		$	3		$	1		$	1		$	1		$	1	$	1		$	—


	Nine Months Ended June 30
	2012						2011						2012					2011
	Pension Benefits												Postretirement Benefits
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign		U.S.			Foreign
	(Dollars in millions)
Service cost	$	4		$	5		$	3		$	5		$	—		$	—	$	1		$	—
Interest cost		4			8			6			6			2			1		3			—
Expected return on plan assets		(6	)		(9	)		(6	)		(9	)		—			—		—			—
Amortization of prior service credit		—			—			—			—			(2	)		—		(2	)		—
Amortization of actuarial loss		1			2			—			2			—			—		—			—
Curtailment/settlement loss (gain)		1			1			—			(1	)		(1	)		—		—			—

Net periodic benefit cost	$	4		$	7		$	3		$	3		$	(1	)	$	1	$	2		$	—

Tabular disclosure of one or more of the entity's defined benefit pension plans or one or more other defined benefit postretirement plans, separately for pension plans and other postretirement benefit plans including the entity's schedule of fair value of plan assets for defined benefit or other postretirement plans.

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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 4, 7, 16, 20, 21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

9 Months Ended

Jun. 30, 2012

E. Goodwill and Other Intangible Assets

The carrying amount of goodwill attributable to each reporting unit with goodwill balances for the periods ended June 30, 2012 and September 30, 2011 are as follows:


	Rubber Blacks		Fumed Metal Oxides			Security Materials		Total
	(Dollars in millions)
Balance at September 30, 2011	$	27	$	11		$	2	$	40
Foreign currency translation adjustment		1		(1	)		—		—

Balance at June 30, 2012	$	28	$	10		$	2	$	40

Goodwill impairment tests are performed at least annually. The Company performed its annual impairment assessment as of March 31, 2012 and determined there was no impairment. During the third quarter of fiscal 2012, the Company changed its annual goodwill impairment testing date from March 31 to May 31 of each year, which did not result in any delay, acceleration or avoidance of impairment. The Company believes this date of the annual goodwill impairment test is preferable because it aligns with the timing of the Company’s annual strategic planning process. This change was applied prospectively beginning on May 31, 2012; retrospective application to prior periods is impracticable as the Company is unable to objectively determine, without the use of hindsight, the assumptions that would have been used in those earlier periods. In connection with this change, the Company performed an impairment assessment as of May 31, 2012 and it was concluded that there was no impairment.

Cabot does not have any indefinite-lived intangible assets. Cabot had $3 million of finite-lived intangible assets as of both June 30, 2012 and September 30, 2011. Intangible assets are amortized over their estimated useful lives, which range from six to fourteen years, with a weighted average period of twelve years. Amortization relative to these intangible assets is expected to aggregate to less than $1 million per year over the next five years.

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

Commitments and Contingencies

Commitments and Contingencies

9 Months Ended

Jun. 30, 2012

F. Commitments and Contingencies

Purchase 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. For those commitments, the amounts included in the table below are based on market prices at June 30, 2012.


	Payments Due by Fiscal Year
	Remainder of fiscal 2012		2013		2014		2015		2016		Thereafter		Total
	(Dollars in millions)
Core Segment	$	94	$	254	$	244	$	246	$	210	$	2,807	$	3,855
Performance Segment		9		38		33		33		32		285		430
Specialty Fluids Segment		2		2		—		—		—		—		4

Total	$	105	$	294	$	277	$	279	$	242	$	3,092	$	4,289

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, Cabot may provide routine 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.

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 June 30, 2012 and September 30, 2011, Cabot had $5 million and $6 million, respectively, on a discounted basis ($6 million and $7 million on an undiscounted basis at June 30, 2012 and September 30, 2011, respectively), reserved for environmental matters primarily related to divested businesses. These amounts represent Cabot’s best estimates of its share of costs likely to be incurred at those sites where costs are reasonably estimable based on its 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. Cabot reviews the adequacy of this reserve as circumstances change at individual sites. Cash payments related to these environmental matters were $1 million and $2 million, respectively, in each of the first nine months of fiscal 2012 and 2011.

In June 2009, Cabot received an information request from the United States Environmental Protection Agency (“EPA”) regarding Cabot’s carbon black manufacturing facility in Pampa, Texas. The information request relates to the Pampa facility’s compliance with certain regulatory and permitting requirements under the Clean Air Act, including the New Source Review (“NSR”) construction permitting requirements. EPA has indicated that this information request is part of an EPA national initiative focused on the U.S. carbon black manufacturing sector. Cabot responded to EPA’s information request in August 2009 and is in discussions with EPA. Based upon the Company’s discussions with EPA and how EPA has handled similar NSR initiatives with other industrial sectors, it is anticipated that EPA will seek to require Cabot to employ additional control devices or approaches with respect to emissions at certain U.S. facilities and seek a civil penalty from Cabot. The costs of such additional control devices would likely be capital in nature and would likely impact the Consolidated Statement of Operations over the depreciable lives of the associated assets.

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. As more fully described in the 2011 10-K, the Company’s 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 or labeled.

As of June 30, 2012 and September 30, 2011, there were approximately 41,000 and 42,000 claimants, respectively, in pending cases asserting claims against AO in connection with respiratory products. Cabot has a reserve to cover its expected share of liability for existing and future respirator liability claims. The book value of the reserve is being accreted up to the undiscounted liability through interest expense over the expected cash flow period, which is through 2062. At June 30, 2012 and September 30, 2011, the reserve was $9 million and $11 million, respectively, on a discounted basis ($14 million and $16 million on an undiscounted basis at June 30, 2012 and September 30, 2011, respectively). Cash payments related to this liability were $2 million and $3 million in the first nine months of fiscal 2012 and 2011, respectively.

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 financial statements in a particular period, they should not, in the aggregate, have a material adverse effect on the Company’s financial position.

The entire disclosure for commitments and contingencies.

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-Name FASB Interpretation (FIN)
-Number 14
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Income Tax Uncertainties

9 Months Ended

Jun. 30, 2012

Income Tax Uncertainties

G. Income Tax Uncertainties

Cabot files U.S. federal and state and non-U.S. income tax returns in jurisdictions with varying statutes of limitations. The 2007 through 2011 tax years remain subject to examination by the IRS and various tax years from 2004 through 2011 remain subject to examination by the respective state tax authorities. In significant non-U.S. jurisdictions, various tax years from 2001 through 2011 remain subject to examination by their respective tax authorities. Cabot’s significant non-U.S. jurisdictions include Australia, Canada, China, France, Germany, Italy, Japan, Malaysia, the Netherlands, and the United Kingdom.

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 the three and nine months ended June 30, 2012, there were no material changes in the amount of unrecognized tax benefits.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Earnings Per Share

9 Months Ended

Jun. 30, 2012

Earnings Per Share

H. Earnings Per Share

The following tables summarize the components of the basic and diluted earnings per common share computations:


	Three Months Ended June 30				Nine Months Ended June 30
	2012		2011		2012			2011
	(Dollars and shares in millions, except per share amounts)
Basic EPS:
Net income attributable to Cabot Corporation	$	66	$	60	$	352		$	186
Less: Dividends and dividend equivalents to participating securities		—		—		—			1
Less: Undistributed earnings allocated to participating securities⁽¹⁾		—		—		3			2

Earnings allocated to common shareholders (numerator)	$	66	$	60	$	349		$	183

Weighted average common shares and participating securities outstanding		64.0		65.4		63.9			65.4
Less: Participating securities⁽¹⁾		0.6		0.7		0.6			0.8

Adjusted weighted average common shares (denominator)		63.4		64.7		63.3			64.6

Amounts per share - basic:
Income from continuing operations attributable to Cabot Corporation	$	0.97	$	0.74	$	2.32		$	2.16
Income from discontinued operations		0.07		0.19		3.18			0.68

Net income attributable to Cabot Corporation	$	1.04	$	0.93	$	5.50		$	2.84

Diluted EPS:
Earnings allocated to common shareholders	$	66	$	60	$	349		$	183
Plus: Earnings allocated to participating securities		—		—		3			3
Less: Adjusted earnings allocated to participating securities⁽²⁾		—		—		(3	)		(3	)

Earnings allocated to common shareholders (numerator)	$	66	$	60	$	349		$	183


Adjusted weighted average common shares outstanding		63.4		64.7		63.3			64.6
Effect of dilutive securities:
Common shares issuable⁽³⁾		0.9		0.9		0.9			0.8

Adjusted weighted average common shares (denominator)		64.3		65.6		64.2			65.4

Amounts per share - diluted:
Income from continuing operations attributable to Cabot Corporation	$	0.96	$	0.73	$	2.29		$	2.13
Income from discontinued operations		0.06		0.19		3.14			0.68

Net income attributable to Cabot Corporation	$	1.02	$	0.92	$	5.43		$	2.81

⁽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:


	Three Months Ended June 30				Nine Months Ended June 30
	2012		2011		2012		2011
	(Dollars in millions)
Calculation of undistributed earnings:
Net income attributable to Cabot Corporation	$	66	$	60	$	352	$	186
Less: Dividends declared on common stock		12		11		36		34
Less: Dividends declared on participating securities		—		—		—		1

Undistributed earnings	$	54	$	49	$	316	$	151

Allocation of undistributed earnings:
Undistributed earnings allocated to common shareholders	$	54	$	49	$	313	$	149
Undistributed earnings allocated to participating shareholders		—		—		3		2

Undistributed earnings	$	54	$	49	$	316	$	151

⁽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 Retirement Savings Plan; and (iii) assumed issuance of shares under outstanding performance-based stock unit awards issued under Cabot’s equity incentive plans. For the three and nine months ended June 30, 2012 , 236,000 and 392,000 incremental shares of common stock, respectively, were not included in the calculation of diluted earnings per share because the inclusion of these shares would have been antidilutive. For the three and nine months ended June 30, 2011, 121,000 and 271,000 incremental shares of common stock, respectively, were not included in the calculation of diluted earnings per share because the inclusion of these shares would have been antidilutive.

Restructuring

9 Months Ended

Jun. 30, 2012

Restructuring

I. Restructuring

Cabot’s restructuring activities were recorded in the Consolidated Statements of Operations as follows:


	Three Months Ended June 30				Nine Months Ended June 30
	2012		2011		2012		2011
	(Dollars in millions)
Cost of sales	$	2	$	5	$	13	$	15
Selling and administrative expenses		—		—		1		1

Total	$	2	$	5	$	14	$	16

Details of these restructuring activities and the related reserves during the three months ended June 30, 2012 are as follows:


	Severance and Employee Benefits			Environmental Remediation			Asset Impairment and Accelerated Depreciation			Asset Sales			Other		Total
	(Dollars in millions)
Reserve at March 31, 2012	$	7		$	2		$	—		$	—		$	2	$	11
Charges		—			—			1			1			—		2
Costs charged against assets/liabilities		—			—			(1	)		(1	)		—		(2	)
Cash paid		(3	)		(1	)		—			—			—		(4	)

Reserve at June 30, 2012	$	4		$	1		$	—		$	—		$	2	$	7

Details of these restructuring activities and the related reserves during the nine months ended June 30, 2012 are as follows:


	Severance and Employee Benefits			Environmental Remediation			Asset Impairment and Accelerated Depreciation			Asset Sales			Other			Total
	(Dollars in millions)
Reserve at September 30, 2011	$	9		$	—		$	—		$	—		$	2		$	11
Charges		3			3			5			1			2			14
Costs charged against assets / liabilities		(1	)		—			(5	)		(2	)		—			(8	)
Proceeds from sale		—			—			—			1			—			1
Cash paid		(7	)		(2	)		—			—			(2	)		(11	)

Reserve at June 30, 2012	$	4		$	1		$	—		$	—		$	2		$	7

Closure of Hong Kong, China Manufacturing Facility

In March 2012, the Company ceased manufacturing operations at its thermoplastic concentrates plant in Hong Kong and moved these operations primarily to its facility in Tianjin, China. The decision, which impacts 64 employees, was made to consolidate all of these operations in one plant that is closer to the Company’s customers in Asia, and to use fully the advanced process technologies available in Tianjin.

The Company expects the closure plan will result in a total pre-tax charge to earnings of approximately $9 million. Through June 30, 2012 the Company has charged approximately $5 million to earnings for this restructuring, comprised mainly of accelerated depreciation and severance charges.

Cumulative net cash outlays related to this plan are expected to be approximately $4 million comprised primarily of $2 million for severance and $2 million for post close operations. Through June 30, 2012, Cabot has made cash payments of approximately $1 million. The Company expects to make net cash payments of $1 million during the remainder of 2012 and $2 million thereafter.

As of June 30, 2012, Cabot has $1 million of accrued restructuring costs in the Consolidated Balance Sheet related to this site closure, mainly for accrued severance charges.

Closure of Grigno, Italy Manufacturing Facility and Other Activities

In February 2011, the Company closed its thermoplastic concentrates manufacturing facility in Grigno, Italy. The decision to close the facility was made to align Cabot’s manufacturing capabilities with the market outlook and Cabot’s Performance Segment strategy. The closure, which affected 37 employees, has resulted in $6 million of charges to earnings and is comprised of $3 million for severance and employee benefits and $3 million for accelerated depreciation and asset impairments.

Through June 30, 2012, Cabot made $3 million of cash payments associated with this restructuring plan. The Company expects to make additional cash payments of less than $1 million during the remainder of fiscal 2012 and thereafter.

As of June 30, 2012, Cabot has less than $1 million of accrued severance costs in the Consolidated Balance Sheet related to this site closure.

In addition, during fiscal 2011, Cabot recorded approximately $5 million of severance-related restructuring charges at other locations. Through June 30, 2012 Cabot has made payments of $2 million related to these activities and expects to pay $2 million during the remainder of fiscal 2012 and $1 million in fiscal 2013.

Closure of Thane, India Manufacturing Facility

In fiscal 2010, Cabot ceased manufacturing operations at its carbon black manufacturing facility in Thane, India. The decision to close the facility, which affected approximately 120 employees, was made as a result of a broad reaching analysis of the Company’s manufacturing assets, including their cost structure, ability to expand and a variety of other factors. The Company continues to maintain a presence in India through its fumed metal oxides manufacturing joint venture and continuing commercial operations in carbon black and other products.

The Company has incurred a total pre-tax charge of approximately $24 million and does not expect to incur significant additional costs related to this plan. These costs are comprised of $7 million for severance and employee benefits, $12 million for accelerated depreciation and asset impairments, $3 million for demolition and site clearing costs and $2 million for other post-closing costs. These amounts exclude any potential gain to be recognized on the sale of land and certain other manufacturing related assets.

Cumulative net cash outlays related to this plan are expected to be approximately $8 million. Through June 30, 2012, Cabot has made net cash payments of $8 million. The Company expects to make net cash payments of less than $1 million during the remainder of 2012. These amounts exclude any potential cash to be received on the sale of land and certain other manufacturing related assets.

As of June 30, 2012, Cabot has less than $1 million of accrued restructuring costs in the Consolidated Balance Sheet related to this site closure.

2009 Global Restructuring

In fiscal 2009, Cabot initiated its 2009 Global Restructuring Plan. Under this plan, the Company closed three manufacturing sites and implemented operating cost and workforce reductions across a variety of its other operations. In fiscal 2010, the Company consolidated several of its European administrative offices in a new European headquarters office in Switzerland.

The Company has recorded a cumulative pre-tax charge of $123 million related to this plan. The total amounts the Company has recorded for each major type of cost associated with the restructuring plan are: (i) severance and employee benefits of $55 million for approximately 400 employees, (ii) accelerated depreciation and impairment of facility assets of $45 million, net of gains associated with the sale of certain assets, (iii) demolition and site clearing costs of $7 million, and (iv) other post-closing costs of $16 million.

Net cash outlays related to these actions are expected to be approximately $72 million. Through June 30, 2012, Cabot has made net cash payments of $71 million. During the remainder of fiscal 2012 and thereafter, the Company expects to make net payments totaling $1 million, net of the expected proceeds from the sale of a former manufacturing site.

As of June 30, 2012, Cabot has $3 million of restructuring costs in accrued expenses in the Consolidated Balance Sheet related to this plan.

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

Fair Value of Financial Instruments

Fair Value Measurements

9 Months Ended

Jun. 30, 2012

Fair Value Measurements

J. 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 the first nine months of either fiscal 2012 or 2011.

As described in Note C, the GAM Promissory Notes and Inventory Note were recorded at their fair value of $273 million at the closing date of the sale of the Supermetals business to GAM. These notes are classified as Level 3 instruments within the fair value hierarchy because they are valued using a valuation model with significant unobservable inputs. See Note K for information on the valuation model and inputs used.

The following table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2012 and September 30, 2011. The derivatives presented in the table below are presented by derivative type.


	June 30, 2012		September 30, 2011
	Level 2 Inputs		Level 2 Inputs
	(Dollars in millions)
Assets at fair value:
Guaranteed investment contract⁽¹⁾	$	13	$	14
Derivatives relating to interest rates⁽²⁾		2		3

Total assets at fair value	$	15	$	17

Liabilities at fair value:
Derivatives relating to foreign currency⁽²⁾	$	21	$	41
Hedged long-term debt⁽³⁾		60		61

Total liabilities at fair value	$	81	$	102

⁽¹⁾	Included in “Other assets” in the Consolidated Balance Sheets.

⁽²⁾	Included in “Prepaid expenses and other current assets”, “Other assets”, “Accounts payable and accrued liabilities” or “Other liabilities” in the Consolidated Balance Sheets.

⁽³⁾	Included in “Current portion of long-term debt” and “Long-term debt” in the Consolidated Balance Sheets.

Fair Value of Financial Instruments

9 Months Ended

Jun. 30, 2012

K. Fair Value of Financial Instruments

The carrying amounts and fair values of the Company’s financial instruments at June 30, 2012 and September 30, 2011 are as follows:


	June 30, 2012				September 30, 2011
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(Dollars in millions)
Assets:
Cash and cash equivalents	$	407	$	407	$	286	$	286
GAM Promissory Notes and Inventory Note		253		252		—		—
Accounts and notes receivable		710		710		659		659
Derivative instruments		—		—		1		1
Liabilities:
Notes payable to banks		102		102		86		86
Accounts payable and accrued liabilities		440		440		461		461
Long-term debt—fixed rate		572		637		585		633
Long-term debt—floating rate		9		9		15		15
Capital lease obligations		16		16		15		15
Derivative instruments		19		19		39		39

At June 30, 2012 and September 30, 2011, the fair values of cash and cash equivalents, accounts and notes receivable, accounts payable and accrued liabilities, and notes payable to banks approximated their carrying values due to the short-term nature of these instruments. The estimated fair values of derivative instruments are valued as described in Note J. The fair value 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 amount of Cabot’s floating rate long-term debt approximates its fair value. As discussed in Note J, other than the GAM Promissory Notes and Inventory Note, 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.

As described in Note J, the GAM Promissory Notes and Inventory Note are classified as Level 3 instruments within the fair value hierarchy because they are valued using a valuation model with significant unobservable inputs. The fair value of the GAM notes was $252 million at June 30, 2012. The valuation used is the discounted cash flow model and the significant inputs are the discount rate, Adjusted EBITDA forecast, and timing of expected cash flows from GAM.

Financial Instruments

9 Months Ended

Jun. 30, 2012

Financial Instruments

L. Financial Instruments

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 June 30,2012, 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 June 30, 2012 or September 30, 2011.

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 enters 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. The following table provides details of the derivatives held as of June 30, 2012 and September 30, 2011 to manage interest rate risk.


		Notional Amount		Hedge Designation
Description	Borrowing	June 30, 2012	September 30, 2011	Hedge Designation
Interest Rate Swap—Fixed to Variable	Eurobond (20% of $175 million)	USD 35 million	USD 35 million	Fair Value

Interest Rate Swap—Fixed to Variable	Medium Term Notes	USD 23 million	USD 23 million	Fair Value

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 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 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 June 30, 2012 and September 30, 2011 to manage foreign currency risk.


		Notional Amount
Description	Borrowing	June 30, 2012	September 30, 2011	Hedge Designation

Cross Currency Swap	Eurobond (80% of $175 million)	USD 140 million swapped to EUR 124 million	USD 140 million swapped to EUR 124 million		No designation

Cross Currency Swap	Eurobond (20% of $175 million)	USD 35 million swapped to EUR 31 million	USD 35 million swapped to EUR 31 million		No designation

Forward Foreign Currency Contracts ⁽¹⁾	N/A	USD 76 million	USD 54 million		No designation

Forward Foreign Currency Contracts ⁽²⁾	N/A	USD 7 million	USD 12 million		Cash Flow

⁽¹⁾	Cabot’s forward foreign exchange contracts are denominated primarily in the Australian dollar, British pound sterling, Canadian dollar, Chinese renminbi, Euro, and Japanese yen.

⁽²⁾	Cabot’s forward foreign exchange contracts designated as cash flow hedges are denominated in Japanese yen and are presented in their USD equivalent in the table above.

Commodity Risk Management

Certain of Cabot’s carbon black plants in Europe are subject to mandatory greenhouse gas emission trading schemes. Cabot’s objective is to ensure compliance with the European Union Emission Trading Scheme, which is based upon a Cap-and-Trade system that establishes a maximum allowable emission credit for each ton of CO₂ emitted. European Union Allowances (“EUA”) originate from the individual EU member state’s country allocation process and are issued by that country’s government. A company that has an excess of EUAs based on the CO₂ emissions limits may sell EUAs in the Emission Trading Scheme and if they have a shortfall, a company can buy EUAs or Certified Emission Reduction (“CER”) units to comply.

In order to limit variability in cost to Cabot’s European operations, the Company purchased CERs and sold EUAs, which settle in December 2012. The following table provides details of the derivatives held as of June 30, 2012 and September 30, 2011 to manage commodity risk.

Description

Net Buyer /
Net Seller

Notional Amount

Hedge
Designation

June 30, 2012

September 30, 2011

CERs

Buyer

EUR 1 million

No designation

EUAs

Seller

EUR 1 million

No designation

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.

Fair Value Hedge

For interest rate swaps designated as fair value 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. 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 foreign currency forward contracts designated as cash flow 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. 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 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.

Net Investment Hedge

For cross currency swaps designated as net investment 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. For net investment hedges, changes in the fair value of the effective portion of the derivatives’ gains or losses are reported as foreign currency translation gains or losses in Accumulated other comprehensive income while changes in the ineffective portion are reported in earnings. The gains or losses on derivative instruments reported in Accumulated other comprehensive income are reclassified to earnings in the period in which earnings are affected by the underlying item, such as a disposal or substantial liquidation of the entities being hedged. As of June 30, 2012, there were no open derivatives designated as net investment hedges.

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.

For both the three and nine months ended June 30, 2012 and 2011, for derivatives designated as hedges, the change in unrealized gains in Accumulated other comprehensive income, the hedge ineffectiveness recognized in earnings and the losses reclassified from Accumulated other comprehensive income to earnings were immaterial.

For the three and nine months ended June 30, 2012, losses of $12 million and of $17 million, respectively, were recognized in earnings as a result of the remeasurement to Euros of the $175 million bond issued by one of Cabot’s European subsidiaries. These losses, which were recognized in earnings through Other (expense) income within the Consolidated Statement of Operations, were offset by gains of $13 million and $18 million, respectively, from Cabot’s cross currency swaps that are not designated as hedges, but which Cabot entered into to offset the foreign currency translation exposure on the debt. Additionally, during the three and nine months ended June 30, 2012, Cabot recognized in earnings through Other (expense) income within the Consolidated Statement of Operations losses of $6 million and gains of $3 million, respectively, related to its foreign currency forward contracts, which were not designated as hedges.

For the three and nine months ended June 30, 2011, gains of $3 million and $9 million, respectively, were recognized in earnings as a result of the remeasurement to Euros of the $175 million bond issued by one of Cabot’s European subsidiaries. These gains, which were recognized in earnings through Other (expense) income within the Consolidated Statement of Operations, were offset by losses of $3 million and $6 million, respectively, from Cabot’s cross currency swaps that are not designated as hedges, but which Cabot entered into to offset the foreign currency translation exposure on the debt. Additionally, during the three and nine months ended June 30, 2011, Cabot recognized in earnings through Other (expense) income within the Consolidated Statement of Operations gains of less than $1 million and $1 million, respectively, related to its foreign currency forward contracts, which were not designated as hedges.

The following table provides the fair value and Consolidated Balance Sheet presentations of derivative instruments by each derivative type, without regard to the legal right to offset derivative settlement by each counterparty.


	Consolidated Balance Sheet Caption	June 30, 2012		September 30, 2011
		(Dollars in millions)
Fair Value of Derivative Instruments
Asset Derivatives
Derivatives designated as hedges
Interest rate⁽¹⁾	Prepaid expenses and other current assets and Other liabilities	$	2	$	3


Total derivatives designated as hedges		$	2	$	3

Derivatives not designated as hedges
Foreign currency	Prepaid expenses and other current assets	$	—	$	1
Commodity contracts⁽²⁾	Prepaid expenses and other current assets		1		1

Total derivatives not designated as hedges		$	1	$	2

Total Asset Derivatives		$	3	$	5

Liability Derivatives
Derivatives designated as hedges
Foreign currency	Accounts payable and accrued liabilities	$	—	$	1

Total derivatives designated as hedges			—		1

Derivatives not designated as hedges
Foreign currency⁽¹⁾	Accounts payable and accrued liabilities and Other liabilities	$	21	$	41
Commodity contracts⁽²⁾	Prepaid expenses and other current assets		1		1


Total derivatives not designated as hedges		$	22	$	42

Total Liability Derivatives		$	22	$	43

⁽¹⁾

Contracts of $2 million and $3 million presented on a gross basis in this table at June 30, 2012 and September 30, 2011, respectively, have the legal right to offset against other types of contracts with a common counterparty and, therefore, are presented on a net basis in noncurrent “Other liabilities” in the Consolidated Balance Sheet.

⁽²⁾	Contracts in an asset and liability position presented on a gross basis in this table have the legal right of offset and, therefore, are presented on a net basis in “Prepaid expenses and other current assets” in the Consolidated Balance Sheet.

See Note J “Fair Value Measurements” for classification of derivatives by input level. The net after-tax amounts to be reclassified from Accumulated other comprehensive income to earnings within the next 12 months are expected to be immaterial.

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
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Financial Information by Segment

Venezuela

9 Months Ended

Jun. 30, 2012

Venezuela

M. Venezuela

Cabot owns 49% of an operating 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 June 30, 2012, these subsidiaries carried the operating affiliate investment of $26 million and held 19 million bolivars ($4 million) in cash and dividends receivable.

Cabot determined, as of January 1, 2010, that the Venezuelan economy was highly inflationary. Accordingly, since the second quarter of fiscal 2010, Cabot has remeasured all transactions of the operating affiliate denominated in bolivars to U.S. dollars using the rate of 4.30 B/$ which continues to be the exchange rate in effect on June 30, 2012.

Given the uncertainties around the convertibility of the Venezuelan bolivar to the U.S. dollar and the ability of entities to actually repatriate U.S. dollars from Venezuela, the Company has endeavored, whenever possible, to repatriate the Company’s cash from its Venezuelan subsidiaries using available mechanisms. At the same time, management has closely monitored its investment in the operating affiliate in Venezuela to ensure that the investment continues to be recoverable. The Company still intends to convert substantially all bolivars held by its Venezuelan subsidiaries to U.S. dollars as soon as practical and continues to monitor for opportunities to convert its bolivars through Venezuelan government, or government-backed, bond offerings.

Financial Information by Segment

9 Months Ended

Jun. 30, 2012

N. Financial Information by Segment

Cabot is organized into four business segments: the Core Segment, the Performance Segment, the New Business Segment and the Specialty Fluids Segment. While the Chief Operating Decision Maker uses a number of performance measures to manage the performance of the segments and allocate resources to them, segment earnings before interest and taxes (“EBIT”) is the measure that is most consistently used and is, therefore, the measure presented in the table below.


	Core Segment		Performance Segment		New Business Segment		Specialty Fluids Segment		Segment Total		Unallocated and Other			Consolidated Total
	(Dollars in millions)
Three months ended June 30, 2012
Revenues from external customers⁽¹⁾	$	517	$	247	$	29	$	28	$	821	$	25		$	846
Income (loss) before taxes⁽²⁾	$	59	$	38	$	1	$	11	$	109	$	(31	)	$	78
Three months ended June 30, 2011
Revenues from external customers⁽¹⁾	$	528	$	240	$	33	$	12	$	813	$	23		$	836
Income (loss) before taxes⁽²⁾	$	57	$	43	$	3	$	3	$	106	$	(44	)	$	62
Nine months ended June 30, 2012
Revenues from external customers⁽¹⁾	$	1,540	$	687	$	84	$	69	$	2,380	$	72		$	2,452
Income (loss) before taxes⁽²⁾	$	186	$	94	$	1	$	32	$	313	$	(104	)	$	209
Nine months ended June 30, 2011
Revenues from external customers⁽¹⁾	$	1,424	$	652	$	89	$	42	$	2,207	$	62		$	2,269
Income (loss) before taxes⁽²⁾	$	145	$	113	$	7	$	10	$	275	$	(119	)	$	156

⁽¹⁾	Unallocated and Other reflects royalties paid by equity affiliates, external shipping and handling fees, and other operating revenues, which includes the impact of the corporate adjustment for unearned revenue.

⁽²⁾

Unallocated and Other includes certain items and eliminations that are not allocated to the operating segments. Management does not consider these items necessary for an understanding of the operating results of these segments and such amounts are excluded in the segment reporting to the Chief Operating Decision Maker. Income (loss) from continuing operations before taxes that are categorized as Unallocated and Other includes:


	Three Months Ended June 30						Nine Months Ended June 30
	2012			2011			2012			2011
	(Dollars in millions)
Interest expense	$	(11	)		(9	)		(30	)		(29	)
Total certain items, pre-tax^(a)		(7	)		(5	)		(21	)		(16	)
Equity in net earnings of affiliated companies^(b)		(4	)		(2	)		(8	)		(6	)
Unallocated corporate costs^(c)		(12	)		(13	)		(44	)		(40	)
General unallocated income (expense)^(d)		3			(15	)		(1	)		(28	)

Total	$	(31	)	$	(44	)	$	(104	)	$	(119	)

^(a)

Certain items are items that management does not consider to be representative of segment results and they are, therefore, excluded from segment EBIT. Certain items, pre-tax, for the three months ended June 30, 2012 include costs associated with the acquisition of Norit of $5 million as discussed in Note O and global restructuring charges of $2 million as discussed in Note I. Certain items, pre-tax, for the nine months ended June 30, 2012 include costs associated with the acquisition of Norit of $5 million as discussed in Note O, global restructuring charges of $14 million as discussed in Note I and $2 million for environmental reserves and legal settlements. Certain items, pre-tax, for the three and nine months ended June 30, 2011 primarily relate to global restructuring charges as discussed in Note I.

^(b)	Equity in net earnings of affiliated companies is included in segment EBIT and is removed from Unallocated and Other to reconcile to segment EBIT.

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

^(d)

General unallocated expense consists of gain (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, and the profit or loss related to the corporate adjustment for unearned revenue.

The Performance Segment is comprised of two product lines: specialty grades of carbon black and masterbatch products (referred to together as “Performance Products”); and fumed silica, fumed alumina and dispersions thereof (referred to together as “Fumed Metal Oxides”). The net sales from each of these businesses for the three and nine months ended June 30, 2012 and 2011 are as follows:


	Three Months Ended June 30				Nine Months Ended June 30
	2012		2011		2012		2011
	(Dollars in millions)
Performance Products Business	$	181	$	173	$	505	$	464
Fumed Metal Oxides Business		66		67		182		188

Total Performance Segment	$	247	$	240	$	687	$	652

The New Business Segment is comprised of the Inkjet Colorants, Aerogel, Cabot Superior MicroPowders, and Cabot Elastomer Composites Businesses. The net sales from each of these businesses for the three and nine months ended June 30, 2012 and 2011 are as follows:


	Three Months Ended June 30				Nine Months Ended June 30
	2012		2011		2012		2011
	(Dollars in millions)
Inkjet Colorants Business	$	18	$	20	$	48	$	50
Aerogel Business		3		8		12		19
Cabot Superior MicroPowders Business		2		2		7		8
Cabot Elastomer Composites Business		6		3		17		12

Total New Business Segment	$	29	$	33	$	84	$	89

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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Revenue Recognition and Accounts Receivable

Subsequent Events

9 Months Ended

Jun. 30, 2012

Subsequent Events

O. Subsequent Events

On July 31, 2012, Cabot completed the acquisition of Norit N.V. and its subsidiaries (“Norit”), paying approximately $1.1 billion in cash to purchase all of the issued and outstanding share capital of Norit. The Company has incurred acquisition costs of approximately $5 million through June 30, 2012, which is included in Selling and administrative expenses. Norit will be reported as a stand-alone segment named Purification Solutions. Goodwill generated from the acquisition will not be deductible for tax purposes.

Norit develops, manufactures, and sells high-grade activated carbons used in a range of environmental, health, safety and industrial applications. Cabot’s purchase of Norit supports the Company’s ongoing transformation to a higher margin, less cyclical, specialty chemicals and performance materials company.

Given the recent date of the acquisition, the Company has not completed the detailed valuation analysis necessary to finalize the associated purchase accounting. As a result, the Company has not provided additional disclosures related to the business combination.

On July 12, 2012, Cabot issued $250 million aggregate principal amount of 2.550% Senior Notes due 2018 (the “2018 Notes”) and $350 million aggregate principal amount of 3.700% Senior Notes due 2022 (the “2022 Notes”). The Company will pay interest on the 2018 Notes and 2022 Notes on January 15 and July 15 of each year, beginning January 15, 2013. The Company used the net proceeds from the 2018 and 2022 Notes to finance a portion of the acquisition of Norit.

On July 13, 2012, Cabot exercised the expansion option under its Credit Agreement (“Facility”) to effect a $200 million increase in the aggregate commitments available. There were no changes to the terms of the Facility. Following the expansion, aggregate commitments under the Facility equaled $750 million. The Company used the Facility and cash on hand to fund the remaining portion of the acquisition of Norit.

Significant Accounting Policies (Policies)

9 Months Ended

Jun. 30, 2012

Revenue Recognition and Accounts Receivable

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:


	Three months ended June 30						Nine months ended June 30
	2012			2011			2012			2011
Core Segment		63	%		65	%		65	%		65	%
Performance Segment		30	%		30	%		29	%		30	%
New Business Segment		4	%		4	%		3	%		4	%
Specialty Fluids Segment		3	%		1	%		3	%		1	%

Cost of Sales

Cost of Sales

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.

Goodwill

Goodwill

Financial Instruments

Financial Instruments

Income Tax in Interim Periods

Income Tax in Interim Periods

Inventory Valuation

Inventory Valuation

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6361739&loc=d3e7789-107766

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 81-1
-Paragraph 69-75
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Paragraph 3, 5-10, 15, 16, 17
-Chapter 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Financial Reporting Release (FRR)
-Number 206
-Paragraph b
-Subparagraph i, ii
-Chapter 2

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Section A
-Paragraph 9
-Chapter 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 6
-Subparagraph a
-Article 5

Disclosure of accounting policy for revenue recognition. If the entity has different policies for different types of revenue transactions, the policy for each material type of transaction is generally disclosed. If a sales transaction has multiple element arrangements (for example, delivery of multiple products, services or the rights to use assets) the disclosure may indicate the accounting policy for each unit of accounting as well as how units of accounting are determined and valued. The disclosure may encompass important judgment as to appropriateness of principles related to recognition of revenue. The disclosure also may indicate the entity's treatment of any unearned or deferred revenue that arises from the transaction.

Segment Reporting Revenue Percentage

Significant Accounting Policies (Tables)

9 Months Ended

Jun. 30, 2012

The following table shows the relative size of the revenue recognized in each of the Company’s reportable segments:


	Three months ended June 30						Nine months ended June 30
	2012			2011			2012			2011
Core Segment		63	%		65	%		65	%		65	%
Performance Segment		30	%		30	%		29	%		30	%
New Business Segment		4	%		4	%		3	%		4	%
Specialty Fluids Segment		3	%		1	%		3	%		1	%

Discontinued Operations (Tables)

9 Months Ended

Jun. 30, 2012

Assets Held For Sale And Liabilities Associated With Assets Held For Sale [Member]

Components of Discontinued Operations


	September 30, 2011
	(Dollars in millions)
Assets
Accounts and notes receivable, net of reserve for doubtful accounts	$	41
Inventories		64
Prepaid expenses and other current assets		1

Total Current assets held for sale	$	106

Net property, plant and equipment	$	39

Total Noncurrent assets held for sale	$	39

Liabilities
Accounts payable and accrued liabilities	$	12

Total Current liabilities held for sale	$	12

Other liabilities	$	6

Total Noncurrent liabilities held for sale	$	6

Income (Loss) From Discontinued Operations, Net Of Tax [Member]

Components of Discontinued Operations

The following table summarizes the results from discontinued operations during the three months and nine months ended June 30, 2012 and 2011:


	Three Months Ended June 30						Nine Months Ended June 30
	2012			2011			2012			2011
	(Dollars in millions)
Net sales and other operating revenues	$	—		$	47		$	46		$	158

Income from operations before income taxes		—			21			21			69
Provision for income taxes on operations		—			(8	)		(7	)		(24	)

Income from operations, net of tax		—			13			14			45

Gain on sale of discontinued operations		6			—			300			—
Provision for income taxes on gain on sale		(2	)		—			(110	)		—

Gain on sale of discontinued operations, net of tax		4			—			190			—

Income from discontinued operations, net of tax	$	4		$	13		$	204		$	45

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

Net Periodic Defined Benefit Pension and Other Postretirement Benefit Costs

Employee Benefit Plans (Tables)

9 Months Ended

Jun. 30, 2012

Net periodic defined benefit pension and other postretirement benefit costs include the following:


	Three Months Ended June 30
	2012						2011						2012					2011
	Pension Benefits												Postretirement Benefits
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign		U.S.			Foreign
	(Dollars in millions)
Service cost	$	1		$	2		$	1		$	2		$	—		$	—	$	—		$	—
Interest cost		1			3			2			2			1			1		1			—
Expected return on plan assets		(2	)		(3	)		(2	)		(3	)		—			—		—			—
Amortization of prior service credit		—			—			—			—			—			—		—			—
Amortization of actuarial loss		—			1			—			—			—			—		—			—
Curtailment/settlement loss (gain)		—			—			—			—			—			—		—			—

Net periodic benefit cost	$	—		$	3		$	1		$	1		$	1		$	1	$	1		$	—


	Nine Months Ended June 30
	2012						2011						2012					2011
	Pension Benefits												Postretirement Benefits
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign		U.S.			Foreign
	(Dollars in millions)
Service cost	$	4		$	5		$	3		$	5		$	—		$	—	$	1		$	—
Interest cost		4			8			6			6			2			1		3			—
Expected return on plan assets		(6	)		(9	)		(6	)		(9	)		—			—		—			—
Amortization of prior service credit		—			—			—			—			(2	)		—		(2	)		—
Amortization of actuarial loss		1			2			—			2			—			—		—			—
Curtailment/settlement loss (gain)		1			1			—			(1	)		(1	)		—		—			—

Net periodic benefit cost	$	4		$	7		$	3		$	3		$	(1	)	$	1	$	2		$	—

Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Jun. 30, 2012

Schedule of Goodwill Balances

The carrying amount of goodwill attributable to each reporting unit with goodwill balances for the periods ended June 30, 2012 and September 30, 2011 are as follows:


	Rubber Blacks		Fumed Metal Oxides			Security Materials		Total
	(Dollars in millions)
Balance at September 30, 2011	$	27	$	11		$	2	$	40
Foreign currency translation adjustment		1		(1	)		—		—

Balance at June 30, 2012	$	28	$	10		$	2	$	40

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

Schedule of Components of Purchase Commitments

Commitments and Contingencies (Tables)

9 Months Ended

Jun. 30, 2012


	Payments Due by Fiscal Year
	Remainder of fiscal 2012		2013		2014		2015		2016		Thereafter		Total
	(Dollars in millions)
Core Segment	$	94	$	254	$	244	$	246	$	210	$	2,807	$	3,855
Performance Segment		9		38		33		33		32		285		430
Specialty Fluids Segment		2		2		—		—		—		—		4

Total	$	105	$	294	$	277	$	279	$	242	$	3,092	$	4,289

Earnings Per Share (Tables)

9 Months Ended

Jun. 30, 2012

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:


	Three Months Ended June 30				Nine Months Ended June 30
	2012		2011		2012			2011
	(Dollars and shares in millions, except per share amounts)
Basic EPS:
Net income attributable to Cabot Corporation	$	66	$	60	$	352		$	186
Less: Dividends and dividend equivalents to participating securities		—		—		—			1
Less: Undistributed earnings allocated to participating securities⁽¹⁾		—		—		3			2

Earnings allocated to common shareholders (numerator)	$	66	$	60	$	349		$	183

Weighted average common shares and participating securities outstanding		64.0		65.4		63.9			65.4
Less: Participating securities⁽¹⁾		0.6		0.7		0.6			0.8

Adjusted weighted average common shares (denominator)		63.4		64.7		63.3			64.6

Amounts per share - basic:
Income from continuing operations attributable to Cabot Corporation	$	0.97	$	0.74	$	2.32		$	2.16
Income from discontinued operations		0.07		0.19		3.18			0.68

Net income attributable to Cabot Corporation	$	1.04	$	0.93	$	5.50		$	2.84

Diluted EPS:
Earnings allocated to common shareholders	$	66	$	60	$	349		$	183
Plus: Earnings allocated to participating securities		—		—		3			3
Less: Adjusted earnings allocated to participating securities⁽²⁾		—		—		(3	)		(3	)

Earnings allocated to common shareholders (numerator)	$	66	$	60	$	349		$	183


Adjusted weighted average common shares outstanding		63.4		64.7		63.3			64.6
Effect of dilutive securities:
Common shares issuable⁽³⁾		0.9		0.9		0.9			0.8

Adjusted weighted average common shares (denominator)		64.3		65.6		64.2			65.4

Amounts per share - diluted:
Income from continuing operations attributable to Cabot Corporation	$	0.96	$	0.73	$	2.29		$	2.13
Income from discontinued operations		0.06		0.19		3.14			0.68

Net income attributable to Cabot Corporation	$	1.02	$	0.92	$	5.43		$	2.81

⁽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


	Three Months Ended June 30				Nine Months Ended June 30
	2012		2011		2012		2011
	(Dollars in millions)
Calculation of undistributed earnings:
Net income attributable to Cabot Corporation	$	66	$	60	$	352	$	186
Less: Dividends declared on common stock		12		11		36		34
Less: Dividends declared on participating securities		—		—		—		1

Undistributed earnings	$	54	$	49	$	316	$	151

Allocation of undistributed earnings:
Undistributed earnings allocated to common shareholders	$	54	$	49	$	313	$	149
Undistributed earnings allocated to participating shareholders		—		—		3		2

Undistributed earnings	$	54	$	49	$	316	$	151

⁽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⁾

Restructuring (Tables)

9 Months Ended

Jun. 30, 2012

Recorded Restructuring Activities

Cabot’s restructuring activities were recorded in the Consolidated Statements of Operations as follows:


	Three Months Ended June 30				Nine Months Ended June 30
	2012		2011		2012		2011
	(Dollars in millions)
Cost of sales	$	2	$	5	$	13	$	15
Selling and administrative expenses		—		—		1		1

Total	$	2	$	5	$	14	$	16

Restructuring Activities and Related Reserves

Details of these restructuring activities and the related reserves during the three months ended June 30, 2012 are as follows:


	Severance and Employee Benefits			Environmental Remediation			Asset Impairment and Accelerated Depreciation			Asset Sales			Other		Total
	(Dollars in millions)
Reserve at March 31, 2012	$	7		$	2		$	—		$	—		$	2	$	11
Charges		—			—			1			1			—		2
Costs charged against assets/liabilities		—			—			(1	)		(1	)		—		(2	)
Cash paid		(3	)		(1	)		—			—			—		(4	)

Reserve at June 30, 2012	$	4		$	1		$	—		$	—		$	2	$	7

Details of these restructuring activities and the related reserves during the nine months ended June 30, 2012 are as follows:


	Severance and Employee Benefits			Environmental Remediation			Asset Impairment and Accelerated Depreciation			Asset Sales			Other			Total
	(Dollars in millions)
Reserve at September 30, 2011	$	9		$	—		$	—		$	—		$	2		$	11
Charges		3			3			5			1			2			14
Costs charged against assets / liabilities		(1	)		—			(5	)		(2	)		—			(8	)
Proceeds from sale		—			—			—			1			—			1
Cash paid		(7	)		(2	)		—			—			(2	)		(11	)

Reserve at June 30, 2012	$	4		$	1		$	—		$	—		$	2		$	7

Fair Value Measurements (Tables)

9 Months Ended

Jun. 30, 2012

Schedule of Fair Value of Derivatives, Net of Legal Right to Offset Derivative Settlements


	June 30, 2012		September 30, 2011
	Level 2 Inputs		Level 2 Inputs
	(Dollars in millions)
Assets at fair value:
Guaranteed investment contract⁽¹⁾	$	13	$	14
Derivatives relating to interest rates⁽²⁾		2		3

Total assets at fair value	$	15	$	17

Liabilities at fair value:
Derivatives relating to foreign currency⁽²⁾	$	21	$	41
Hedged long-term debt⁽³⁾		60		61

Total liabilities at fair value	$	81	$	102

⁽¹⁾	Included in “Other assets” in the Consolidated Balance Sheets.

⁽²⁾	Included in “Prepaid expenses and other current assets”, “Other assets”, “Accounts payable and accrued liabilities” or “Other liabilities” in the Consolidated Balance Sheets.

⁽³⁾	Included in “Current portion of long-term debt” and “Long-term debt” in the Consolidated Balance Sheets.

Fair Value of Financial Instruments (Tables)

9 Months Ended

Jun. 30, 2012

Carrying Amounts and Fair Values of Company's Financial Instruments

The carrying amounts and fair values of the Company’s financial instruments at June 30, 2012 and September 30, 2011 are as follows:


	June 30, 2012				September 30, 2011
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(Dollars in millions)
Assets:
Cash and cash equivalents	$	407	$	407	$	286	$	286
GAM Promissory Notes and Inventory Note		253		252		—		—
Accounts and notes receivable		710		710		659		659
Derivative instruments		—		—		1		1
Liabilities:
Notes payable to banks		102		102		86		86
Accounts payable and accrued liabilities		440		440		461		461
Long-term debt—fixed rate		572		637		585		633
Long-term debt—floating rate		9		9		15		15
Capital lease obligations		16		16		15		15
Derivative instruments		19		19		39		39

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13476-108611

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13467-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 19
-Subparagraph a, b, c(1), d(1)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 14
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15
-Subparagraph b-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 18
-Subparagraph c(2), d, e, f
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32
-Subparagraph a, c(1), c(2), c(3), d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

Financial Instruments (Tables)

9 Months Ended

Jun. 30, 2012


	Consolidated Balance Sheet Caption	June 30, 2012		September 30, 2011
		(Dollars in millions)
Fair Value of Derivative Instruments
Asset Derivatives
Derivatives designated as hedges
Interest rate⁽¹⁾	Prepaid expenses and other current assets and Other liabilities	$	2	$	3


Total derivatives designated as hedges		$	2	$	3

Derivatives not designated as hedges
Foreign currency	Prepaid expenses and other current assets	$	—	$	1
Commodity contracts⁽²⁾	Prepaid expenses and other current assets		1		1

Total derivatives not designated as hedges		$	1	$	2

Total Asset Derivatives		$	3	$	5

Liability Derivatives
Derivatives designated as hedges
Foreign currency	Accounts payable and accrued liabilities	$	—	$	1

Total derivatives designated as hedges			—		1

Derivatives not designated as hedges
Foreign currency⁽¹⁾	Accounts payable and accrued liabilities and Other liabilities	$	21	$	41
Commodity contracts⁽²⁾	Prepaid expenses and other current assets		1		1


Total derivatives not designated as hedges		$	22	$	42

Total Liability Derivatives		$	22	$	43

⁽¹⁾

⁽²⁾	Contracts in an asset and liability position presented on a gross basis in this table have the legal right of offset and, therefore, are presented on a net basis in “Prepaid expenses and other current assets” in the Consolidated Balance Sheet.

Interest Rate Risk Management

Schedule of Derivatives Fair Value Interest Rate

The following table provides details of the derivatives held as of June 30, 2012 and September 30, 2011 to manage interest rate risk.


		Notional Amount		Hedge Designation
Description	Borrowing	June 30, 2012	September 30, 2011	Hedge Designation
Interest Rate Swap—Fixed to Variable	Eurobond (20% of $175 million)	USD 35 million	USD 35 million	Fair Value

Interest Rate Swap—Fixed to Variable	Medium Term Notes	USD 23 million	USD 23 million	Fair Value

Foreign Currency Risk Management

Schedule of Derivatives Held in as Foreign Currency Risk

The following table provides details of the derivatives held as of June 30, 2012 and September 30, 2011 to manage foreign currency risk.


		Notional Amount
Description	Borrowing	June 30, 2012	September 30, 2011	Hedge Designation

Cross Currency Swap	Eurobond (80% of $175 million)	USD 140 million swapped to EUR 124 million	USD 140 million swapped to EUR 124 million		No designation

Cross Currency Swap	Eurobond (20% of $175 million)	USD 35 million swapped to EUR 31 million	USD 35 million swapped to EUR 31 million		No designation

Forward Foreign Currency Contracts ⁽¹⁾	N/A	USD 76 million	USD 54 million		No designation

Forward Foreign Currency Contracts ⁽²⁾	N/A	USD 7 million	USD 12 million		Cash Flow

⁽¹⁾	Cabot’s forward foreign exchange contracts are denominated primarily in the Australian dollar, British pound sterling, Canadian dollar, Chinese renminbi, Euro, and Japanese yen.

⁽²⁾	Cabot’s forward foreign exchange contracts designated as cash flow hedges are denominated in Japanese yen and are presented in their USD equivalent in the table above.

Commodity Risk Management

Schedule of Derivatives Fair Value Interest Rate

The following table provides details of the derivatives held as of June 30, 2012 and September 30, 2011 to manage commodity risk.

Description

Net Buyer /
Net Seller

Notional Amount

Hedge
Designation

June 30, 2012

September 30, 2011

CERs

Buyer

EUR 1 million

No designation

EUAs

Seller

EUR 1 million

No designation

Financial Information by Segment (Tables)

9 Months Ended

Jun. 30, 2012

Schedule of Financial Information by Segment


	Core Segment		Performance Segment		New Business Segment		Specialty Fluids Segment		Segment Total		Unallocated and Other			Consolidated Total
	(Dollars in millions)
Three months ended June 30, 2012
Revenues from external customers⁽¹⁾	$	517	$	247	$	29	$	28	$	821	$	25		$	846
Income (loss) before taxes⁽²⁾	$	59	$	38	$	1	$	11	$	109	$	(31	)	$	78
Three months ended June 30, 2011
Revenues from external customers⁽¹⁾	$	528	$	240	$	33	$	12	$	813	$	23		$	836
Income (loss) before taxes⁽²⁾	$	57	$	43	$	3	$	3	$	106	$	(44	)	$	62
Nine months ended June 30, 2012
Revenues from external customers⁽¹⁾	$	1,540	$	687	$	84	$	69	$	2,380	$	72		$	2,452
Income (loss) before taxes⁽²⁾	$	186	$	94	$	1	$	32	$	313	$	(104	)	$	209
Nine months ended June 30, 2011
Revenues from external customers⁽¹⁾	$	1,424	$	652	$	89	$	42	$	2,207	$	62		$	2,269
Income (loss) before taxes⁽²⁾	$	145	$	113	$	7	$	10	$	275	$	(119	)	$	156

⁽¹⁾	Unallocated and Other reflects royalties paid by equity affiliates, external shipping and handling fees, and other operating revenues, which includes the impact of the corporate adjustment for unearned revenue.

⁽²⁾

Schedule of Income (Loss) Before Taxes for Unallocated and Other


	Three Months Ended June 30						Nine Months Ended June 30
	2012			2011			2012			2011
	(Dollars in millions)
Interest expense	$	(11	)		(9	)		(30	)		(29	)
Total certain items, pre-tax^(a)		(7	)		(5	)		(21	)		(16	)
Equity in net earnings of affiliated companies^(b)		(4	)		(2	)		(8	)		(6	)
Unallocated corporate costs^(c)		(12	)		(13	)		(44	)		(40	)
General unallocated income (expense)^(d)		3			(15	)		(1	)		(28	)

Total	$	(31	)	$	(44	)	$	(104	)	$	(119	)

^(a)

^(b)	Equity in net earnings of affiliated companies is included in segment EBIT and is removed from Unallocated and Other to reconcile to segment EBIT.

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

^(d)

Schedule of Performance Segment


	Three Months Ended June 30				Nine Months Ended June 30
	2012		2011		2012		2011
	(Dollars in millions)
Performance Products Business	$	181	$	173	$	505	$	464
Fumed Metal Oxides Business		66		67		182		188

Total Performance Segment	$	247	$	240	$	687	$	652

Schedule of New Business Segment


	Three Months Ended June 30				Nine Months Ended June 30
	2012		2011		2012		2011
	(Dollars in millions)
Inkjet Colorants Business	$	18	$	20	$	48	$	50
Aerogel Business		3		8		12		19
Cabot Superior MicroPowders Business		2		2		7		8
Cabot Elastomer Composites Business		6		3		17		12

Total New Business Segment	$	29	$	33	$	84	$	89

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

Significant Accounting Policies (Segment Reporting Revenue Percentage) (Detail)	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Core Segment
Segment Reporting Information [Line Items]
Revenue, by segment	63.00%	65.00%	65.00%	65.00%
Performance Segment
Segment Reporting Information [Line Items]
Revenue, by segment	30.00%	30.00%	29.00%	30.00%
New Business Segment
Segment Reporting Information [Line Items]
Revenue, by segment	4.00%	4.00%	3.00%	4.00%
Specialty Fluids Segment
Segment Reporting Information [Line Items]
Revenue, by segment	3.00%	1.00%	3.00%	1.00%

Significant Accounting Policies (Narrative) (Detail) - USD ($) $ / shares in Thousands, $ in Millions	3 Months Ended	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Sep. 30, 2011
Inventories [Line Items]
Value of inventories under FIFO method	$ 52	$ 52	$ 53
Decrease in cost of goods sold	(1)	(1)
Increase in net income due to LIFO inventory liquidation	$ 1	$ 1
Effect of LIFO Inventory Liquidation on diluted earnings per share	$ 10	$ 10

Discontinued Operations (Narrative) (Detail) $ in Millions	3 Months Ended	9 Months Ended
Discontinued Operations (Narrative) (Detail) $ in Millions	Jun. 30, 2012 USD ($)	Jun. 30, 2012 USD ($) Year
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total minimum consideration from sale		$ 450.0
Initial cash payment, transactions closes	$ 175.0	$ 175.0
Maturity period of promissory notes \| Year		2
Total prepayment value of promissory notes	$ 215.0	$ 215.0
Contingent payment, percentage of quarterly cash payments of adjusted EBITDA	50.00%	50.00%
Contingent payment, based on future performance of the acquired business	$ 11.5	$ 11.5
Proceeds from sale of excess inventory	$ 50.0	$ 50.0
Promissory note interest rate	10.00%	10.00%
Promissory note fair value	$ 273.0	$ 273.0
GAM Promissory Notes and Inventory Note, final maturity date		2014-03
Promissory note included in prepaid and other current assets	10.0	$ 10.0
Promissory note included in other asset section	243.0	243.0
After-tax gain on the sale of discontinued operations	4.0	190.0
Fair Value, Inputs, Level 3
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Promissory note fair value	252.0	252.0
Promissory note included in other asset section	$ 253.0	$ 253.0

Discontinued Operations (Components Income (Loss) from Discontinued Operations) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net sales and other operating revenues		$ 47	$ 46	$ 158
Income from operations before income taxes		21	21	69
Provision for income taxes on operations		(8)	(7)	(24)
Income from operations, net of tax		13	14	45
Gain on sale of discontinued operations	$ 6		300
Provision for income taxes on gain on sale	(2)		(110)
Gain on sale of discontinued operations, net of tax	4		190
Income from discontinued operations, net of tax	$ 4	$ 13	$ 204	$ 45

Overall income (loss) from a disposal group that is classified as a component of the entity, before income tax, reported as a separate component of income before extraordinary items. Includes the following (before income tax): income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal.

Tax effect allocated to a disposal group that is classified as a component of the entity reported as a separate component of income before extraordinary items. Includes the tax effects of the following: income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Section 50
-Paragraph 1
-Subparagraph (b),(c)
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-Paragraph 2
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 47
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 46
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Amount of tax expense or benefit on gain (loss), not previously recognized, resulting from the sale of a business component.

Income or Loss from continuing operations, net of taxes, including net Income or Loss from discontinued operations but before extraordinary items.

Amount of income (loss) from a disposal group, net of income tax before extraordinary items allocable to noncontrolling interests. Includes, net of tax, income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.12)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

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-Name Accounting Standards Codification
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-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.14)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 13
-Article 7

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 29
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 47
-Subparagraph c
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-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 15
-Article 5

Discontinued Operations (Schedule of Assets and Liabilities Held for Sale) (Detail) $ in Millions	Sep. 30, 2011 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Accounts and notes receivable, net of reserve for doubtful accounts	$ 41
Inventories	64
Prepaid expenses and other current assets	1
Total Current assets held for sale	106
Net property, plant and equipment	39
Total Noncurrent assets held for sale	39
Accounts payable and accrued liabilities	12
Total Current liabilities held for sale	12
Other liabilities	6
Total Noncurrent liabilities held for sale	$ 6

Employee Benefit Plans (Narrative) (Detail) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Defined Benefit Plan Disclosure [Line Items]
Recognized net benefit (loss)	$ 1	$ 1

The amount of net gain (loss) recognized in net periodic benefit cost as a result of an event that significantly reduces the expected years of future service of present employees or eliminates for a significant number of employees the accrual of defined benefits for some or all of their future services.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Plan Curtailment
-URI http://asc.fasb.org/extlink&oid=6520938

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)(7)
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e1928-114920

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 30
-Section 15
-Paragraph 6
-Subparagraph (a)(2)
-URI http://asc.fasb.org/extlink&oid=7577095&loc=d3e8001-114927

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph h
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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Name Statement of Financial Accounting Standard (FAS)
-Number 88
-Paragraph 6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Employee Benefit Plans (Net Periodic Defined Benefit Pension and Other Postretirement Benefit Costs) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
United States Pension Plans of US Entity, Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 1	$ 1	$ 4	$ 3
Interest cost	1	2	4	6
Expected return on plan assets	(2)	(2)	(6)	(6)
Amortization of actuarial loss			1
Curtailment/settlement loss (gain)			1
Net periodic benefit cost		1	4	3
Foreign Pension Plans, Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Service cost	2	2	5	5
Interest cost	3	2	8	6
Expected return on plan assets	(3)	(3)	(9)	(9)
Amortization of actuarial loss	1		2	2
Curtailment/settlement loss (gain)			1	(1)
Net periodic benefit cost	3	1	7	3
United States Postretirement Benefit Plans of US Entity, Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Service cost				1
Interest cost	1	1	2	3
Amortization of prior service credit			(2)	(2)
Curtailment/settlement loss (gain)			(1)
Net periodic benefit cost	1	$ 1	(1)	$ 2
Foreign Postretirement Benefit Plans, Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Interest cost	1		1
Net periodic benefit cost	$ 1		$ 1

Goodwill And Other Intangible Assets (Schedule of Goodwill Balances) (Detail) $ in Millions	9 Months Ended
	Jun. 30, 2012 USD ($)
Goodwill [Line Items]
Balance at September 30, 2011	$ 40
Balance at June 30, 2012	40
Rubber Blacks
Goodwill [Line Items]
Balance at September 30, 2011	27
Foreign currency translation adjustment	1
Balance at June 30, 2012	28
Fumed Metal Oxides Business
Goodwill [Line Items]
Balance at September 30, 2011	11
Foreign currency translation adjustment	(1)
Balance at June 30, 2012	10
Security Materials
Goodwill [Line Items]
Balance at September 30, 2011	2
Balance at June 30, 2012	$ 2

Carrying amount as of the balance sheet date, which is the cumulative amount paid and (if applicable) the fair value of any noncontrolling interest in the acquiree, adjusted for any amortization recognized prior to the adoption of any changes in generally accepted accounting principles (as applicable) and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6388280&loc=d3e13770-109266

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 72
-Subparagraph d
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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-Clause 1
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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 68
-Subparagraph l
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-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 34
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Goodwill and Other Intangible Assets (Narrative) (Detail) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2012	Sep. 30, 2011
Goodwill And Other Intangible Assets [Line Items]
Finite-lived intangible assets	$ 3	$ 3
Useful life of intangible assets	12 years
Minimum
Goodwill And Other Intangible Assets [Line Items]
Useful life of intangible assets	6 years
Maximum
Goodwill And Other Intangible Assets [Line Items]
Useful life of intangible assets	14 years
Amortization of intangible assets, year one	$ 1
Amortization of intangible assets, year two	1
Amortization of intangible assets, year three	1
Amortization of intangible assets, year four	1
Amortization of intangible assets, year five	$ 1

Commitments And Contingencies (Schedule of Components of Purchase Commitments) (Detail) $ in Millions	Jun. 30, 2012 USD ($)
Long-term Purchase Commitment [Line Items]
Payments Due by Remainder Of Fiscal Year 2012	$ 105
Payments Due by Fiscal Year 2013	294
Payments Due by Fiscal Year 2014	277
Payments Due by Fiscal Year 2015	279
Payments Due by Fiscal Year 2016	242
Payments Due by Fiscal Year, Thereafter	3,092
Payments Due by Fiscal Year, Total	4,289
Core Segment
Long-term Purchase Commitment [Line Items]
Payments Due by Remainder Of Fiscal Year 2012	94
Payments Due by Fiscal Year 2013	254
Payments Due by Fiscal Year 2014	244
Payments Due by Fiscal Year 2015	246
Payments Due by Fiscal Year 2016	210
Payments Due by Fiscal Year, Thereafter	2,807
Payments Due by Fiscal Year, Total	3,855
Performance Segment
Long-term Purchase Commitment [Line Items]
Payments Due by Remainder Of Fiscal Year 2012	9
Payments Due by Fiscal Year 2013	38
Payments Due by Fiscal Year 2014	33
Payments Due by Fiscal Year 2015	33
Payments Due by Fiscal Year 2016	32
Payments Due by Fiscal Year, Thereafter	285
Payments Due by Fiscal Year, Total	430
Specialty Fluids Segment
Long-term Purchase Commitment [Line Items]
Payments Due by Remainder Of Fiscal Year 2012	2
Payments Due by Fiscal Year 2013	2
Payments Due by Fiscal Year, Total	$ 4

Commitments and Contingencies (Narrative) (Detail) $ in Millions	9 Months Ended		12 Months Ended
	Jun. 30, 2012 USD ($)	Jun. 30, 2011 USD ($)	Sep. 30, 2011 USD ($)
Environmental Matters
Loss Contingencies [Line Items]
Reserve for environmental matters on discounted	$ 5		$ 6
Reserve for environmental matters on undiscounted basis	6		$ 7
Cash payments for environmental reserves	$ 1	$ 2
Respirator Liabilities
Loss Contingencies [Line Items]
Number of claimants	41,000		42,000
Respirator reserve on discounted basis	$ 9		$ 11
Respirator reserve on undiscounted basis	14		$ 16
Cash payments for respirator reserves	$ 2	$ 3

Earnings Per Share (Components of Basic and Diluted Earnings Per Common Share) (Detail) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions

3 Months Ended

9 Months Ended

Jun. 30, 2012

Jun. 30, 2011

Jun. 30, 2012

Jun. 30, 2011

Basic EPS:

Less: Dividends and dividend equivalents to participating securities

$ 66

$ 60

$ 352

$ 186

Less: Undistributed earnings allocated to participating securities

^[1]

Earnings allocated to common shareholders (numerator)

$ 66

$ 60

$ 349

$ 183

Weighted average common shares and participating securities outstanding

64.0

65.4

63.9

65.4

Less: Participating securities

^[1]

0.6

0.7

0.6

0.8

Adjusted weighted average common shares (denominator)

63.4

64.7

63.3

64.6

Income from continuing operations attributable to Cabot Corporation

$ 0.97

$ 0.74

$ 2.32

$ 2.16

0.07

0.19

3.18

0.68

Earnings allocated to common shareholders

$ 1.04

$ 0.93

$ 5.50

$ 2.84

Diluted EPS:

$ 66

$ 60

$ 349

$ 183

Plus: Earnings allocated to participating securities

Less: Adjusted earnings allocated to participating securities

^[2]

(3)

Earnings allocated to common shareholders (numerator)

$ 66

$ 60

$ 349

$ 183

Adjusted weighted average common shares outstanding

63.4

64.7

63.3

64.6

Common shares issuable

^[3]

0.9

0.8

Adjusted weighted average common shares (denominator)

64.3

65.6

64.2

65.4

Income from continuing operations attributable to Cabot Corporation

$ 0.96

$ 0.73

$ 2.29

$ 2.13

0.06

0.19

3.14

0.68

$ 1.02

$ 0.92

$ 5.43

$ 2.81

[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.
[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 Retirement Savings Plan; and (iii) assumed issuance of shares under outstanding performance-based stock unit awards issued under Cabot's equity incentive plans. For the three and nine months ended June 30, 2012 , 236,000 and 392,000 incremental shares of common stock, respectively, were not included in the calculation of diluted earnings per share because the inclusion of these shares would have been antidilutive. For the three and nine months ended June 30, 2011, 121,000 and 271,000 incremental shares of common stock, respectively, were not included in the calculation of diluted earnings per share because the inclusion of these shares would have been antidilutive.

Earnings Per Share (Calculation of Undistributed Earnings) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Earnings Per Share [Line Items]
Net income attributable to Cabot Corporation	$ 66	$ 60	$ 352	$ 186
Less: Dividends declared on common stock	12	11	36	34
Less: Dividends declared on participating securities				1
Undistributed earnings	54	49	316	151
Undistributed earnings allocated to common shareholders	$ 54	$ 49	313	149
Undistributed earnings allocated to participating shareholders			$ 3	$ 2
Incremental shares of common stock	236,000	121,000	392,000	271,000

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 10, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A7
-Appendix A

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 87-21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28, 29, 30
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Restructuring (Recorded Restructuring Activities) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Sep. 30, 2011
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, period expense	$ 2	$ 5	$ 14	$ 16	$ 5
Cost of Sales
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, period expense	$ 2	$ 5	13	15
Selling And Administrative Expenses
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, period expense			$ 1	$ 1

Restructing (Restructuring Activities and Related Reserves) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Sep. 30, 2011
Restructuring Cost and Reserve [Line Items]
Reserve balance	$ 11		$ 11
Charges	2	$ 5	14	$ 16	$ 5
Costs charged against assets/liabilities	(2)		(8)
Proceeds from sale			1
Cash paid	(4)		(11)
Reserve balance	7		7		11
Employee Severance
Restructuring Cost and Reserve [Line Items]
Reserve balance	7		9
Charges			3
Costs charged against assets/liabilities			(1)
Cash paid	(3)		(7)
Reserve balance	4		4		9
Environmental Remediation
Restructuring Cost and Reserve [Line Items]
Reserve balance	2
Charges			3
Cash paid	(1)		(2)
Reserve balance	1		1
Asset Impairment And Accelerated Depreciation
Restructuring Cost and Reserve [Line Items]
Charges	1		5
Costs charged against assets/liabilities	(1)		(5)
Asset Sales
Restructuring Cost and Reserve [Line Items]
Charges	1		1
Costs charged against assets/liabilities	(1)		(2)
Proceeds from sale			1
Other
Restructuring Cost and Reserve [Line Items]
Reserve balance	2		2
Charges			2
Cash paid			(2)
Reserve balance	$ 2		$ 2		$ 2

Restructuring (Narrative) (Detail) Facility in Millions, $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Feb. 28, 2011 Person	Jun. 30, 2012 USD ($)	Jun. 30, 2011 USD ($)	Jun. 30, 2012 USD ($) Person	Jun. 30, 2011 USD ($)	Sep. 30, 2011 USD ($)	Sep. 30, 2010 Person	Sep. 30, 2009 Facility	Mar. 31, 2012 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring costs in accrued expenses		$ 7		$ 7		$ 11			$ 11
Severance costs				1
Restructuring charges		2	$ 5	14	$ 16	$ 5
Restructuring accelerated depreciation and asset impairments				45
Accrued severance costs				1
Severance cost payments expected in current year				2
Maximum
Restructuring Cost and Reserve [Line Items]
Severance cost payments expected next year				1
Demolition And Site Clearing Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges				7
Other Post Closing Operating Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges				$ 16
Closure Of Hong Kong
Restructuring Cost and Reserve [Line Items]
Affected employees \| Person				64
Restructuring costs in accrued expenses		9		$ 9
Restructuring accelerated depreciation and severance charges				5
Expected cumulative net cash outlays related to plan		4		4
Severance costs				2
Cash payments				1
Expected cash outlays remainder fiscal year		1		1
Expected cash outlays beyond fiscal year		2		2
Closure Of Grigno
Restructuring Cost and Reserve [Line Items]
Affected employees \| Person	37
Restructuring costs in accrued expenses		2		2
Severance costs				3
Cash payments				3
Expected cash outlays beyond fiscal year		1		1
Restructuring charges				6
Restructuring accelerated depreciation and asset impairments				3
Closure Of Thane
Restructuring Cost and Reserve [Line Items]
Affected employees \| Person							120
Restructuring costs in accrued expenses		1		1
Expected cumulative net cash outlays related to plan		8		8
Severance costs				7
Cash payments				8
Restructuring accelerated depreciation and asset impairments				12
Pre-tax charge to earnings				24
Closure Of Thane \| Maximum
Restructuring Cost and Reserve [Line Items]
Expected cash outlays remainder fiscal year		1		1
Closure Of Thane \| Demolition And Site Clearing Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges				3
Closure Of Thane \| Other Post Closing Operating Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges				$ 2
Global Restructuring Two Thousand Nine
Restructuring Cost and Reserve [Line Items]
Affected employees \| Person				400
Restructuring costs in accrued expenses		3		$ 3
Expected cumulative net cash outlays related to plan		72		72
Severance costs				55
Cash payments				71
Expected cash outlays remainder fiscal year		$ 1		1
Pre-tax charge to earnings				$ 123
Number of facilities closed \| Facility								3

Fair Value Measurements (Narrative) (Detail) $ in Millions	Jun. 30, 2012 USD ($)
Fair Value, Option, Quantitative Disclosures [Line Items]
Promissory note fair value	$ 273

Fair Value Measurements (Schedule of Fair Value of Derivatives, Net of Legal Right to Offset Derivative Settlements) (Detail) - Significant Other Observable Inputs (Level 2) - USD ($)
$ in Millions

Jun. 30, 2012

Sep. 30, 2011

Guaranteed investment contract

^[1]

$ 13

$ 14

Derivatives relating to interest rates

^[2]

Total assets at fair value

Derivatives relating to foreign currency

^[2]

Hedged long-term debt

^[3]

Total liabilities at fair value

$ 81

$ 102

[1]	Included in "Other assets" in the Consolidated Balance Sheets.
[2]	Included in "Prepaid expenses and other current assets", "Other assets", "Accounts payable and accrued liabilities" or "Other liabilities" in the Consolidated Balance Sheets.
[3]	Included in "Current portion of long-term debt" and "Long-term debt" in the Consolidated Balance Sheets.

Fair Value Of Financial Instruments (Carrying Amounts and Fair Values of Company's Financial Instruments) (Detail) - USD ($) $ in Millions	Jun. 30, 2012	Sep. 30, 2011	Jun. 30, 2011	Sep. 30, 2010
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, Carrying Amount	$ 407	$ 286	$ 344	$ 387
GAM Promissory Notes and Inventory Note, Carrying Amount	243
Accounts and notes receivable, Carrying Amount	710	659
Derivative instruments, Carrying Amount		1
Notes payable to banks, Carrying Amount	102	86
Accounts payable and accrued liabilities, Carrying Amount	440	461
Capital lease obligations, Carrying Amount	16	15
Derivative instruments, Carrying Amount	19	39
Cash and cash equivalents, Fair Value	407	286
GAM Promissory Notes and Inventory Note, Fair Value	273
Accounts and notes receivable, Fair Value	710	659
Derivative instruments, Fair Value		1
Notes payable to banks, Fair Value	102	86
Accounts payable and accrued liabilities, Fair Value	440	461
Capital lease obligations, Fair Value	16	15
Derivative instruments, Fair Value	19	39
Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
GAM Promissory Notes and Inventory Note, Carrying Amount	253
GAM Promissory Notes and Inventory Note, Fair Value	252
Fixed Rate
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, Carrying Amount	572	585
Long-term debt, Fair Value	637	633
Floating Rate
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, Carrying Amount	9	15
Long-term debt, Fair Value	$ 9	$ 15

Fair Value of Financial Instruments (Narrative) (Detail) $ in Millions	Jun. 30, 2012 USD ($)
GAM Promissory Notes and Inventory Note, Fair Value	$ 273
Fair Value, Inputs, Level 3
GAM Promissory Notes and Inventory Note, Fair Value	$ 252

Financial Instruments (Interest Rate Risk Management) (Detail) - USD ($) $ in Millions	Jun. 30, 2012	Sep. 30, 2011
Debt Instrument [Line Items]
Percentage of debt hedged by interest rate derivatives	20.00%
Long-term debt	$ 175
Notional amount of interest rate fair value hedge derivatives	35	$ 35
Medium Term Notes
Debt Instrument [Line Items]
Notional amount of interest rate fair value hedge derivatives	$ 23	$ 23

Financial Instruments (Foreign Currency Risk Management) (Detail)
€ in Millions, $ in Millions

Jun. 30, 2012

USD ($)

Jun. 30, 2012

EUR (€)

Sep. 30, 2011

USD ($)

Sep. 30, 2011

EUR (€)

Long-term debt

$ 175

Eurobond 80%

Percentage of debt hedged by cross currency swaps

Long-term debt

$ 175

80.00%

Notional amount of foreign currency derivative instruments not designated as hedging instruments

140

€ 124

$ 140

€ 124

Eurobond 20%

Percentage of debt hedged by cross currency swaps

Long-term debt

$ 175

20.00%

Notional amount of foreign currency derivative instruments not designated as hedging instruments

$ 35

€ 31

Forward Foreign Currency Contracts

Notional amount of foreign currency derivative instruments not designated as hedging instruments

^[1]

Notional Amount of Foreign Currency Cash Flow Hedge Derivatives

^[2]

$ 0

€ 7

$ 12

[1]	Cabot's forward foreign exchange contracts are denominated primarily in the Australian dollar, British pound sterling, Canadian dollar, Chinese renminbi, Euro, and Japanese yen.
[2]	Cabot's forward foreign exchange contracts designated as cash flow hedges are denominated in Japanese yen and are presented in their USD equivalent in the table above.

Financial Instruments (Commodity Risk Management) (Detail) - EUR (€) € in Millions	Jun. 30, 2012	Sep. 30, 2011
EUAs
Derivative [Line Items]
Notional amount of commodity risk derivatives	€ 1	€ 1
CERs
Derivative [Line Items]
Notional amount of commodity risk derivatives	€ 1	€ 1

Financial Instruments (Narrative) (Detail) $ in Millions	3 Months Ended		9 Months Ended
Financial Instruments (Narrative) (Detail) $ in Millions	Jun. 30, 2012 USD ($)	Jun. 30, 2011 USD ($)	Jun. 30, 2012 USD ($)	Jun. 30, 2011 USD ($)
Derivative [Line Items]
Number of open derivatives designated as net investment hedges			0
Foreign currency exchange rate, remeasurement income (loss)	$ 12	$ 3	$ 17	$ 9
Bond held by one of Cabot's European subsidiaries	175	175	175	175
Forward Foreign Currency Contracts
Derivative [Line Items]
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments	6	1	3	1
Currency Swap
Derivative [Line Items]
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments	$ 13	$ 3	$ 18	$ 6

Financial Instruments (Schedule of Derivative Instruments in Statement of Financial Position, Fair Value) (Detail) - USD ($)
$ in Millions

Jun. 30, 2012

Sep. 30, 2011

$ 3

$ 5

Designated as Hedging Instrument

Designated as Hedging Instrument | Interest Rate Risk Management

Designated as Hedging Instrument | Other Liabilities | Interest Rate Risk Management

Interest rate contracts with right of offset

^[1]

Designated as Hedging Instrument | Accounts Payable And Accrued Liabilities | Foreign Currency Risk Management

Not Designated as Hedging Instrument

Not Designated as Hedging Instrument | Prepaid Expenses And Other Current Assets | Foreign Currency Risk Management

Not Designated as Hedging Instrument | Prepaid Expenses And Other Current Assets | Commodity Contract

^[2]

Not Designated as Hedging Instrument | Accounts Payable And Accrued Liabilities And Other Liabilities | Foreign Currency Risk Management

^[2]

^[1]

$ 21

$ 41

[1]	Contracts of $2 million and $3 million presented on a gross basis in this table at June 30, 2012 and September 30, 2011, respectively, have the legal right to offset against other types of contracts with a common counterparty and, therefore, are presented on a net basis in noncurrent "Other liabilities" in the Consolidated Balance Sheet.
[2]	Contracts in an asset and liability position presented on a gross basis in this table have the legal right of offset and, therefore, are presented on a net basis in "Prepaid expenses and other current assets" in the Consolidated Balance Sheet.

Venezuela (Narrative) (Detail) $ in Millions, in Millions	Jun. 30, 2012 USD ($)	Jun. 30, 2012 VEF ( )
Nature Of Operations [Line Items]
Equity method investment, ownership percentage	49.00%	49.00%
Operating affiliate investment	$ 26
Due from affiliates, dividends receivable	$ 19	4
Venezuelan Bolivar exchange rate to one USD	4.30	4.30

Financial Information by Segment - Additional Information (Detail)	9 Months Ended
	Jun. 30, 2012
Schedule Of Geographical Information [Line Items]
Number of business segments	4

Financial Information By Segment (Financial Information by Segment) (Detail) - USD ($)
$ in Millions

3 Months Ended

9 Months Ended

Jun. 30, 2012

Jun. 30, 2011

Jun. 30, 2012

Jun. 30, 2011

^[1]

$ 846

$ 836

$ 2,452

$ 2,269

^[2]

209

156

Core Segment

^[1]

517

528

1,540

1,424

^[2]

186

145

Performance Segment

^[1]

247

240

687

652

^[2]

113

New Business Segment

^[1]

^[2]

Specialty Fluids Segment

^[1]

^[2]

Segment Total

^[1]

821

813

2,380

2,207

^[2]

109

106

313

275

Unallocated and Other

^[1]

^[2]

$ (31)

$ (44)

$ (104)

$ (119)

[1]	Unallocated and Other reflects royalties paid by equity affiliates, external shipping and handling fees, and other operating revenues, which includes the impact of the corporate adjustment for unearned revenue.
[2]	Unallocated and Other includes certain items and eliminations that are not allocated to the operating segments. Management does not consider these items necessary for an understanding of the operating results of these segments and such amounts are excluded in the segment reporting to the Chief Operating Decision Maker.

Financial Information By Segment (Schedule of Income (Loss) Before Taxes for Unallocated and Other) (Detail) - USD ($)
$ in Millions

3 Months Ended

9 Months Ended

Jun. 30, 2012

Jun. 30, 2011

Jun. 30, 2012

Jun. 30, 2011

Equity in net earnings of affiliated companies

Interest expense

$ (11)

$ (9)

$ (30)

$ (29)

Income from continuing operations before income taxes and equity in net earnings of affiliated companies

^[1]

209

156

Unallocated and Other

Total certain items, pre-tax

Interest expense

(11)

(9)

(30)

(29)

^[2]

(7)

(5)

(21)

(16)

Equity in net earnings of affiliated companies

^[3]

(4)

(2)

(8)

(6)

Unallocated corporate costs

^[4]

(12)

(13)

(44)

(40)

General unallocated income (expense)

^[5]

(15)

(1)

(28)

Income from continuing operations before income taxes and equity in net earnings of affiliated companies

^[1]

$ (31)

$ (44)

$ (104)

$ (119)

[1]	Unallocated and Other includes certain items and eliminations that are not allocated to the operating segments. Management does not consider these items necessary for an understanding of the operating results of these segments and such amounts are excluded in the segment reporting to the Chief Operating Decision Maker.
[2]	Certain items are items that management does not consider to be representative of segment results and they are, therefore, excluded from segment EBIT. Certain items, pre-tax, for the three months ended June 30, 2012 include costs associated with the acquisition of Norit of $5 million as discussed in Note O and global restructuring charges of $2 million as discussed in Note I. Certain items, pre-tax, for the nine months ended June 30, 2012 include costs associated with the acquisition of Norit of $5 million as discussed in Note O, global restructuring charges of $14 million as discussed in Note I and $2 million for environmental reserves and legal settlements. Certain items, pre-tax, for the three and nine months ended June 30, 2011 primarily relate to global restructuring charges as discussed in Note I.
[3]	Equity in net earnings of affiliated companies is included in segment EBIT and is removed from Unallocated and Other to reconcile to segment EBIT.
[4]	Unallocated corporate costs are not controlled by the segments and primarily benefit corporate interests.
[5]	General unallocated expense consists of gain (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, and the profit or loss related to the corporate adjustment for unearned revenue.

This item represents the entity's proportionate share for the period of the net income (loss) of its investee (such as unconsolidated subsidiaries and joint ventures) to which the equity method of accounting is applied. This item includes income or expense related to stock-based compensation based on the investor's grant of stock to employees of an equity method investee.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=16385135&loc=d3e33749-111570

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.12)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 9
-Article 5

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 18
-Paragraph 19
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 18
-Paragraph 6
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 11
-Article 7

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Financial Information By Segment (Schedule of Performance Segment) (Detail) - USD ($)
$ in Millions

3 Months Ended

9 Months Ended

Jun. 30, 2012

Jun. 30, 2011

Jun. 30, 2012

Jun. 30, 2011

^[1]

$ 846

$ 836

$ 2,452

$ 2,269

Performance Segment

Performance Segment | Performance Products Business

247

240

687

652

Performance Segment | Fumed Metal Oxides Business

181

173

505

464

$ 66

$ 67

$ 182

$ 188

[1]	Unallocated and Other reflects royalties paid by equity affiliates, external shipping and handling fees, and other operating revenues, which includes the impact of the corporate adjustment for unearned revenue.

Financial Information By Segment (Schedule of New Business Segment) (Detail) - USD ($)
$ in Millions

3 Months Ended

9 Months Ended

Jun. 30, 2012

Jun. 30, 2011

Jun. 30, 2012

Jun. 30, 2011

^[1]

$ 846

$ 836

$ 2,452

$ 2,269

New Business Segment

New Business Segment | Inkjet Colorants Business

New Business Segment | Aerogel Business

New Business Segment | Cabot Superior MicroPowders Business

New Business Segment | Cabot Elastomer Composites Business