View Filing Data

Weighted-average common shares outstanding, in millions:

$ 388

$ 236

$ 154

Basic

63.4

64.6

63.8

Diluted

64.2

65.4

64.3

Basic:

Income from continuing operations attributable to Cabot Corporation

$ 2.87

$ 2.80

$ 1.96

3.20

0.82

0.41

Income from continuing operations attributable to Cabot Corporation

6.07

3.62

2.37

Diluted:

2.83

2.77

1.94

3.16

0.80

0.41

Dividends per common share

5.99

3.57

2.35

$ 0.76

$ 0.72

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

Consolidated Statements Of Operations (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Equity in earnings of affiliated companies tax amount	$ 5	$ 5	$ 4
Income from discontinued operations tax amount	116	29	16
Net income attributable to noncontrolling interests tax amount	$ 7	$ 4	$ 3

Net of tax amount of other comprehensive income (loss) attributable to noncontrolling interests.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (c)(3)
-URI http://asc.fasb.org/extlink&oid=18733093&loc=SL4573702-111684

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=7656940&loc=SL4569643-111683

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=7656940&loc=SL4569616-111683

Reference 4: 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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.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.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph c(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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.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 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 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.

Significant Accounting Policies

Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2012	Sep. 30, 2011
Current assets:
Cash and cash equivalents	$ 120	$ 286
Accounts and notes receivable, net of reserve for doubtful accounts of $5 and $4	687	659
Inventories	533	393
Prepaid expenses and other current assets	71	76
Deferred income taxes	32	35
Current assets held for sale		106
Total current assets	1,443	1,555
Property, plant and equipment	3,511	2,967
Accumulated depreciation and amortization	(1,959)	(1,931)
Net property, plant and equipment	1,552	1,036
Goodwill	480	40
Equity affiliates	115	60
Intangible assets, net	330	3
Assets held for rent	46	46
Notes receivable from sale of business	242
Deferred income taxes	94	261
Other assets	97	101
Noncurrent assets held for sale		39
Total assets	4,399	3,141
Current liabilities:
Notes payable to banks	62	86
Accounts payable and accrued liabilities	606	461
Income taxes payable	59	34
Deferred income taxes	7	6
Current portion of long-term debt	185	57
Current liabilities held for sale		12
Total current liabilities	919	656
Long-term debt	1,172	556
Deferred income taxes	55	8
Other liabilities	314	299
Noncurrent liabilities held for sale		6
Commitments and contingencies (Note T)
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: 63,600,928 and 63,894,443 shares Outstanding: 63,347,362 and 63,860,777 shares	64	64
Less cost of 253,565 and 33,666 shares of common treasury stock	(8)	(1)
Additional paid-in capital	20	18
Retained earnings	1,653	1,314
Deferred employee benefits	(8)	(14)
Accumulated other comprehensive income	92	106
Total Cabot Corporation stockholders' equity	1,813	1,487
Noncontrolling interests	126	129
Total stockholders' equity	1,939	1,616
Total liabilities and stockholders' equity	$ 4,399	$ 3,141

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions	Sep. 30, 2012	Sep. 30, 2011
Accounts and notes receivable, reserve for doubtful accounts	$ 5	$ 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	63,600,928	63,894,443
Common stock, outstanding shares	63,347,362	63,860,777
Common treasury stock, shares	253,565	33,666

Consolidated Statements Of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Cash Flows from Operating Activities:
Net income	$ 406	$ 258	$ 169
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	156	144	143
Deferred tax provision	(6)	(25)	(2)
Gain on sale of business, net of tax	(191)
Impairment charges			2
Loss on disposal of property, plant and equipment	1	2	6
Equity in earnings of affiliated companies	(11)	(8)	(7)
Non-cash compensation	18	19	27
Other non-cash (income) charges, net	3	(3)	(5)
Changes in assets and liabilities:
Accounts and notes receivable	6	(111)	(116)
Inventories	(30)	(79)	(7)
Prepaid expenses and other current assets	26	(17)	(18)
Accounts payable and accrued liabilities	100	23	47
Income taxes payable	(13)	1	7
Other liabilities	(38)	(12)	(7)
Cash dividends received from equity affiliates	6	4	6
Other	(18)	(1)	4
Cash provided by operating activities	415	195	249
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(281)	(230)	(108)
Proceeds from sale of business	181
Receipts from notes receivable from sale of business	23
Investment in equity affiliate		(2)
Acquisition of business, net of cash acquired	(1,104)		(5)
Proceeds from sales of property, plant and equipment	2	6	6
(Increase) decrease in assets held for rent	(1)	(6)	2
Settlement of derivatives			(7)
Cash used in investing activities	(1,180)	(232)	(112)
Cash Flows from Financing Activities:
Borrowings under financing arrangements	84	71	37
Repayments under financing arrangements	(88)	(45)	(31)
Proceeds from long-term debt, net of issuance costs	911
Repayments of long-term debt	(172)	(21)	(6)
(Decrease) increase in notes payable to banks, net	(42)	30	(8)
Proceeds from cash contributions received from noncontrolling stockholders	4
Purchases of common stock	(36)	(59)	(5)
Proceeds from sales of common stock	10	11	9
Cash dividends paid to noncontrolling interests	(16)	(12)	(6)
Cash dividends paid to common stockholders	(49)	(47)	(47)
Cash provided by (used in) financing activities	606	(72)	(57)
Effect of exchange rate changes on cash	(7)	8	3
(Decrease) increase in cash and cash equivalents	(166)	(101)	83
Cash and cash equivalents at beginning of year	286	387	304
Cash and cash equivalents at end of year	120	286	387
Income taxes paid	73	64	43
Interest paid	39	34	$ 28
Non-cash additions to property, plant and equipment	$ 4	$ 14

Consolidated Statement Of Changes In Stockholders' Equity And Comprehensive Income - USD ($) shares in Thousands, $ in Millions	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Deferred Employee Benefits [Member]	Accumulated Other Comprehensive Income [Member]	Total Cabot Corporation Stockholders' Equity [Member]	Non-controlling Interest [Member]	Comprehensive Income [Member]
Beginning Balance at Sep. 30, 2009	$ 1,237	$ 63	$ 18	$ 1,018	$ (25)	$ 60	$ 1,134	$ 103
Beginning Balance, Shares at Sep. 30, 2009		65,309
Net income attributable to Cabot Corporation	154			154					$ 154
Foreign currency translation adjustment, net of tax						43			43
Change in employee benefit plans, net of tax						(15)			(15)
Total other comprehensive income									28
Comprehensive income attributable to Cabot Corporation							182		182
Net income attributable to noncontrolling interests, net of tax	15							15	15
Noncontrolling interests - foreign currency translation adjustment								2	2
Comprehensive income attributable to noncontrolling interests									17
Comprehensive income	199								199
Noncontrolling interest-other	1							1
Noncontrolling interest - dividends	(6)							(6)
Cash dividends paid to common stockholders	(47)			(47)			(47)
Issuance of stock under employee compensation plans, net of forfeitures	9	$ 1	8				9
Issuance of stock under employee compensation plans, net of forfeitures, Shares		283
Amortization of share-based compensation	18		18				18
Purchase and retirement of common and treasury stock	(5)	$ (1)	(4)				(5)
Purchase and retirement of common and treasury stock, Shares		(222)
Principal payment by Employee Stock Ownership Plan under guaranteed loan	5				5		5
Notes receivable for restricted stock-payments	6		6				6
Ending Balance at Sep. 30, 2010	1,417	$ 63	46	1,125	(20)	88	1,302	115
Ending Balance, Shares at Sep. 30, 2010		65,370
Net income attributable to Cabot Corporation	236			236					236
Foreign currency translation adjustment, net of tax						19			19
Change in unrealized loss on investments and derivative instruments, net of tax						(1)			(1)
Total other comprehensive income									18
Comprehensive income attributable to Cabot Corporation							254		254
Net income attributable to noncontrolling interests, net of tax	22							22	22
Noncontrolling interests - foreign currency translation adjustment								3	3
Comprehensive income attributable to noncontrolling interests									25
Comprehensive income	279								279
Noncontrolling interest - dividends	(11)							(11)
Cash dividends paid to common stockholders	(47)			(47)			(47)
Issuance of stock under employee compensation plans, net of forfeitures	8	$ 1	7				8
Issuance of stock under employee compensation plans, net of forfeitures, Shares		294
Amortization of share-based compensation	17		17				17
Purchase and retirement of common and treasury stock	(59)	$ (1)	(58)				(59)
Purchase and retirement of common and treasury stock, Shares		(1,803)
Principal payment by Employee Stock Ownership Plan under guaranteed loan	6				6		6
Notes receivable for restricted stock-payments	6		6				6
Ending Balance at Sep. 30, 2011	1,616	$ 63	18	1,314	(14)	106	1,487	129
Ending Balance, Shares at Sep. 30, 2011		63,861
Net income attributable to Cabot Corporation	388			388					388
Foreign currency translation adjustment, net of tax						4			4
Change in unrealized loss on investments and derivative instruments, net of tax						(1)			(1)
Change in employee benefit plans, net of tax						(17)			(17)
Total other comprehensive income									(14)
Comprehensive income attributable to Cabot Corporation							374		374
Net income attributable to noncontrolling interests, net of tax	18							18	18
Noncontrolling interests - foreign currency translation adjustment								(1)	(1)
Comprehensive income attributable to noncontrolling interests									17
Comprehensive income	391								$ 391
Noncontrolling interest-other	4							4
Noncontrolling interest - dividends	(24)							(24)
Cash dividends paid to common stockholders	(49)			(49)			(49)
Issuance of stock under employee compensation plans, net of forfeitures	15	$ 2	13				15
Issuance of stock under employee compensation plans, net of forfeitures, Shares		611
Amortization of share-based compensation	15		15				15
Purchase and retirement of common and treasury stock	(36)	$ (9)	(27)				(36)
Purchase and retirement of common and treasury stock, Shares		(1,124)
Principal payment by Employee Stock Ownership Plan under guaranteed loan	6				6		6
Notes receivable for restricted stock-payments	1		1				1
Ending Balance at Sep. 30, 2012	$ 1,939	$ 56	$ 20	$ 1,653	$ (8)	$ 92	$ 1,813	$ 126
Ending Balance, Shares at Sep. 30, 2012		63,348

Consolidated Statement Of Changes In Stockholders' Equity And Comprehensive Income (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Accumulated Other Comprehensive Income [Member]
Foreign currency translation adjustment, tax	$ 2	$ 3	$ 4
Change in unrealized loss on investments and derivative instruments, tax
Change in employee benefit plans	9		6
Non-controlling Interest [Member]
Net income attributable to noncontrolling interests, tax	7	4	3
Comprehensive Income [Member]
Foreign currency translation adjustment, tax	2	3	4
Change in unrealized loss on investments and derivative instruments, tax
Change in employee benefit plans	9		6
Net income attributable to noncontrolling interests, tax	$ 7	$ 4	$ 3

Significant Accounting Policies

12 Months Ended

Sep. 30, 2012

Note A. Significant Accounting Policies

The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States. The significant accounting policies of Cabot Corporation (“Cabot” or “the Company”) are described below. Certain changes have been made to reportable segment information for prior years to reflect changes made in the fourth quarter of fiscal 2012 related to changes in the Company’s reporting segments.

On January 20, 2012, the Company completed the sale of its Supermetals Business. The applicable assets and liabilities of the business have been classified as held for sale in the Consolidated Balance Sheet as of September 30, 2011 and the results of its operations for all periods presented are reflected as discontinued operations in the Consolidated Statements of Operations. Unless otherwise indicated, all disclosures and amounts in the Notes to Consolidated Financial Statements relate to the Company’s continuing operations.

On July 31, 2012, the Company completed the acquisition of Norit N.V. (“Norit”). The financial position, results of operations and cash flows of Norit are included in the Consolidated Financial Statements from the date of acquisition.

Principles of Consolidation

The consolidated financial statements include the accounts of Cabot and its wholly-owned subsidiaries and majority-owned and controlled U.S. and non-U.S. subsidiaries. Additionally, Cabot considers consolidation of entities over which control is achieved through means other than voting rights, of which there were none in the periods presented. Intercompany transactions have been eliminated in consolidation.

Cash and Cash Equivalents

Cash equivalents include all highly liquid investments with a maturity of three months or less at date of acquisition. Cabot continually assesses the liquidity of cash and cash equivalents and, as of September 30, 2012, has determined that they are readily convertible to cash.

Inventories

Inventories are stated at the lower of cost or market. The cost of all carbon black inventories in the U.S. is determined using the last-in, first-out (“LIFO”) method. The cost of Specialty Fluids inventories is determined using the average cost method. The cost of other U.S. and all non-U.S. inventories is determined using the first-in, first-out (“FIFO”) method.

Investments

The Company has investments in equity affiliates and marketable securities. As circumstances warrant, all investments are subject to periodic impairment reviews. Unless consolidation is required, investments in equity affiliates, where Cabot generally owns between 20% and 50% of the affiliate, are accounted for using the equity method. Cabot records its share of the equity affiliate’s results of operations based on its percentage of ownership of the affiliate. Dividends received from equity affiliates are a return on investment and are recorded as a reduction to the equity investment value. At September 30, 2012 and 2011, Cabot had equity affiliate investments of $115 million (including Norit’s investments) and $60 million, respectively. Dividends declared from these investments were $6 million, $5 million and $6 million in fiscal 2012, 2011 and 2010, respectively.

All investments in marketable securities are classified as available-for-sale and are recorded at fair value with the corresponding unrealized holding gains or losses, net of taxes, recorded as a separate component of other comprehensive income within stockholders’ equity. Unrealized losses that are determined to be other-than-temporary, based on current and expected market conditions, are recognized in earnings. The fair value of marketable securities is determined based on quoted market prices at the balance sheet dates. The cost of marketable securities sold is determined by the specific identification method. Short-term investments consist of investments in marketable securities with maturities of one year or less. The Company’s investment in marketable securities was immaterial as of both September 30, 2012 and 2011.

Property, Plant and Equipment

Property, plant and equipment are recorded at cost. Depreciation of property, plant and equipment is calculated using the straight-line method over the estimated useful lives. The depreciable lives for buildings, machinery and equipment, and other fixed assets are twenty to twenty-five years, ten to twenty years, and three to twenty-five years, respectively. The cost and accumulated depreciation for property, plant and equipment sold, retired, or otherwise disposed of are removed from the Consolidated Balance Sheets and resulting gains or losses are included in earnings in the Consolidated Statements of Operations. Expenditures for repairs and maintenance are charged to expenses as incurred. Expenditures for major renewals and betterments, which significantly extend the useful lives of existing plant and equipment, are capitalized and depreciated.

Cabot capitalizes interest costs when they are part of the historical cost of acquiring and constructing certain assets that require a period of time to prepare for their intended use. During fiscal 2012, 2011 and 2010, Cabot capitalized $4 million, $2 million and $1 million of interest costs, respectively. These amounts will be amortized over the life of the related assets.

Intangible Assets and Goodwill

The Company records tangible and intangible assets acquired and liabilities assumed in business combinations under the acquisition method of accounting. Amounts paid for an acquisition are allocated to the assets acquired and liabilities assumed based on their fair values at the date of acquisition. Goodwill is comprised of the purchase price of business acquisitions in excess of the fair value assigned to the net tangible and identifiable intangible assets acquired.

The Company uses assumptions and estimates in determining the fair value of assets acquired and liabilities assumed in a business combination. The determination of the fair value of intangible assets requires the use of significant judgment with regard to (i) assumptions used in the determination of fair value; and (ii) determination of their useful lives. The Company estimates the fair value of identifiable acquisition-related intangible assets principally based on projections of cash flows that will arise from these assets. The projected cash flows are discounted to determine the present value of the assets at the dates of acquisition. The Company reviews definite-lived intangible assets for impairment when indication of potential impairment exists, such as a significant reduction in cash flows associated with the assets. Actual cash flows arising from a particular intangible asset could vary from projected cash flows which could imply different carrying values from those established at the dates of acquisition and which could result in impairment of such asset. The Company evaluates indefinite-lived intangible assets for impairment annually and when events occur or circumstances change that may reduce the fair value of the asset below its carrying amount. Cabot’s intangible assets are primarily comprised of trademarks, customer relationships, patented and unpatented technology and other intellectual property. Finite lived intangible assets are amortized over their estimated useful lives. Amortization expense was $3 million in fiscal 2012 and less than $1 million in both 2011 and 2010.

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. 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 fair value of a reporting unit is primarily based on discounted estimated future cash flows. The assumptions used to estimate fair value include management’s best estimates of future growth rates, operating cash flows, capital expenditures, discount rates and market conditions over an estimate of the remaining operating period at the reporting unit level. If an impairment exists, a loss is recorded to write-down the value of goodwill to its implied fair value.

Assets Held for Rent

Assets held for rent represent Specialty Fluids cesium formate product that will be rented to customers in the normal course of business. Assets held for rent are stated at average cost.

Assets Held for Sale

Cabot classifies its long-lived assets as held for sale when management commits to a plan to sell the assets, the assets are ready for immediate sale in their present condition, an active program to locate buyers has been initiated, the sale of the assets is probable and expected to be completed within one year, the assets are marketed at reasonable prices in relation to their fair value and it is unlikely that significant changes will be made to the plan to sell the assets. The Company measures the value of long-lived assets held for sale at the lower of the carrying amount or fair value, less cost to sell.

Assets and liabilities held for sale in the Consolidated Balance Sheet as of September 30, 2011 pertain to applicable assets and liabilities of the Supermetals Business. See Note D for additional information.

Asset Retirement Obligations

Cabot estimates incremental costs for special handling, removal and disposal of materials that may or will give rise to conditional asset retirement obligations (“ARO”) and then discounts the expected costs back to the current year using a credit adjusted risk free rate. Cabot recognizes ARO when the timing and/or settlement can be reasonably estimated. The ARO reserves were $18 million and $7 million at September 30, 2012 and 2011, respectively. In fiscal 2012, the Company assumed asset retirement obligations of $10 million in the acquisition of Norit. In addition, the Company made changes to its cash flow estimates for its other ARO resulting in an additional liability of $1 million.

Impairment of Long-Lived Assets

Cabot’s long-lived assets primarily include property, plant and equipment, long-term investments, assets held for rent and sale and intangible assets. The carrying values of long-lived assets are reviewed for impairment whenever events or changes in business circumstances indicate that the carrying amount of an asset may not be recoverable and annually for indefinite-lived assets. An asset impairment is recognized when the carrying value of the asset is not recoverable based on the probability-weighted undiscounted estimated future cash flows to be generated by the asset. Cabot’s estimates reflect management’s assumptions about selling prices, production and sales volumes, costs and market conditions over an estimate of the remaining operating period. If an impairment is indicated, the asset is written down to fair value. If the asset does not have a readily determinable market value, a discounted cash flow model may be used to determine the fair value of the asset. The key inputs to the discounted cash flow would be the same as the undiscounted cash flow noted above, with the addition of the discount rate used. In circumstances when an asset does not have separate identifiable cash flows, an impairment charge is recorded when Cabot no longer intends to use the asset.

Foreign Currency Translation

The functional currency of the majority of Cabot’s foreign subsidiaries is the local currency in which the subsidiary operates. Assets and liabilities of foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at the balance sheet dates. Income and expense items are translated at average monthly exchange rates during the year. Unrealized currency translation adjustments are included as a separate component of Accumulated other comprehensive income within stockholders’ equity.

Realized and unrealized foreign currency gains and losses arising from transactions denominated in currencies other than the subsidiary’s functional currency are reflected in earnings with the exception of (i) intercompany transactions considered to be of a long-term investment nature; and (ii) foreign currency borrowings designated as net investment hedges. Gains or losses arising from these transactions are included as a component of other comprehensive income. In fiscal 2012, 2011 and 2010, net foreign currency transaction losses of $2 million, losses of $6 million and gains of less than $1 million, respectively, are included in Other expense in the Consolidated Statements of Operations as part of continuing operations.

Financial Instruments

Cabot’s financial instruments consist primarily of cash and cash equivalents, accounts and notes receivable, investments, notes receivable from the sale of a business, accounts payable and accrued liabilities, short-term and long-term debt, and derivative instruments. The carrying values of Cabot’s financial instruments approximate fair value with the exception of 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.

Revenue Recognition

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


	Years Ended September 30
	2012			2011			2010
Reinforcement Materials		63	%		65	%		63	%
Performance Materials		28	%		29	%		30	%
Advanced Technologies		7	%		6	%		7	%
Purification Solutions⁽¹⁾		2	%		N/A			N/A

⁽¹⁾	Consists of two months of revenue for Norit, which the Company acquired on July 31, 2012.

Cabot derives the substantial majority of its revenues from the sale of products in Reinforcement Materials and Performance Materials. Revenue from these products is typically recognized when the product is shipped and title and risk of loss have passed to the customer. The Company offers certain of its customers cash discounts and volume rebates as sales incentives. The discounts and volume rebates are recorded as a reduction in sales at the time revenue is recognized and are estimated based on historical experience and contractual obligations. Cabot periodically reviews the assumptions underlying its estimates of discounts and volume rebates and adjusts its revenues accordingly.

Revenue in Advanced Technologies, excluding the Specialty Fluids Business, is typically recognized when the product is shipped and title and risk of loss have passed to the customer. Depending on the nature of the contract with the customer, a portion of the revenue may be recognized using proportional performance.

A significant portion of the revenue in the Specialty Fluids Business, included in Advanced Technologies, arises from the rental of cesium formate. This revenue is recognized throughout the rental period based on the contracted rental terms. Customers are also billed and revenue is recognized, typically at the end of the job, for cesium formate product that is not returned. The Company also generates revenues from cesium formate sold outside of a rental process and revenue is recognized upon delivery of the fluid.

Revenue in Purification Solutions is typically recognized when the product is shipped and title and risk of loss have passed to the customer. For major activated carbon injection systems projects, revenue is recognized using the percentage-of-completion method.

Cost of Sales

Cost of sales consists of 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.

Accounts and Notes Receivable

Trade receivables are recorded at the invoiced amount and generally do not bear interest. Trade receivables in China may at certain times be settled with the receipt of bank issued non-interest bearing notes, which represent the Company’s notes receivable balance. These notes totaled 155 million Chinese Renminbi (“RMB”) ($24 million) and 380 million RMB ($60 million) as of September 30, 2012 and 2011, respectively, and are included in accounts and notes receivable. Cabot periodically sells a portion of the trade receivables in China at a discount and such sales are accounted for as asset sales. The Company does not have any continuing involvement with the notes after the sale. The difference between the proceeds from the sale and the carrying value of the receivables is recognized as a loss on the sale of receivables and is included in Other expense in the accompanying Consolidated Statements of Operations. During fiscal 2012, 2011 and 2010, the Company recorded charges of $2 million, less than $1 million and $2 million, respectively, for the sale of these receivables.

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 fiscal 2012, 2011 and 2010 were immaterial. There is no off-balance sheet credit exposure related to customer receivable balances.

Stock-based Compensation

Cabot recognizes compensation expense for stock-based awards granted to employees using the fair value method. Under the fair value recognition provisions, stock-based compensation cost is measured at the grant date based on the fair value of the award, and is recognized as expense over the service period, which generally represents the vesting period, and includes an estimate of the awards that will be forfeited, and an estimate of what level of performance the Company will achieve for Cabot’s performance-based stock awards. Cabot calculates the fair value of its stock options using the Black-Scholes option pricing model. The fair value of restricted stock and restricted stock units is determined using the closing price of Cabot stock on the day of the grant.

Selling and Administrative Expenses

Selling and administrative expenses consist of salaries and fringe benefits of sales and office personnel, general office expenses and other expenses not directly related to manufacturing operations.

Research and Technical Expenses

Research and technical expenses include salaries, equipment and material expenditures, and contractor fees and are expensed as incurred.

Income Taxes

Deferred income taxes are determined based on the estimated future tax effects of differences between financial statement carrying amounts and the tax bases of existing assets and liabilities. Deferred tax assets are recognized to the extent that realization of those assets is considered to be more likely than not.

A valuation allowance is established for deferred taxes when it is more likely than not that all or a portion of the deferred tax assets will not be realized. Provisions are made for the U.S. income tax liability and additional non-U.S. taxes on the undistributed earnings of non-U.S. subsidiaries, except for amounts Cabot has designated to be indefinitely reinvested.

Cabot records benefits for uncertain tax positions based on an assessment of whether the position is more likely than not to be sustained by the taxing authorities. If this threshold is not met, no tax benefit of the uncertain tax position is recognized. If the threshold is met, the tax benefit that is recognized is the largest amount that is greater than 50% likely of being realized upon ultimate settlement. This analysis presumes the taxing authorities’ full knowledge of the positions taken and all relevant facts, but does not consider the time value of money. The Company also accrues for interest and penalties on its uncertain tax positions and includes such charges in its income tax provision in the Consolidated Statements of Operations.

Accumulated Other Comprehensive Income

Accumulated other comprehensive income, which is included as a component of stockholders’ equity, includes unrealized gains or losses on available-for-sale marketable securities and derivative instruments, currency translation adjustments in foreign subsidiaries, translation adjustments on foreign equity securities and minimum pension liability adjustments.

Environmental Costs

Cabot accrues environmental costs when it is probable that a liability has been incurred and the amount can be reasonably estimated. When a single liability amount cannot be reasonably estimated, but a range can be reasonably estimated, Cabot accrues the amount that reflects the best estimate within that range or the low end of the range if no estimate within the range is better. The amount accrued reflects Cabot’s assumptions about remediation requirements at the contaminated site, the nature of the remedy, the outcome of discussions with regulatory agencies and other potentially responsible parties at multi-party sites, and the number and financial viability of other potentially responsible parties. Cabot discounts certain of its long-term environmental liabilities to reflect the time value of money if the amount of the liability and the amount and timing of cash payments for the liability are fixed and reliably determinable. The liability will be discounted at a rate that will produce an amount at which the liability theoretically could be settled in an arm’s length transaction with a third party. This discounted rate may not exceed the risk-free rate for maturities comparable to those of the liability. Cabot does not reduce its estimated liability for possible recoveries from insurance carriers. Proceeds from insurance carriers are recorded when realized by either the receipt of cash or a contractual agreement.

Use of Estimates

The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States requires management to make certain estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates.

Recent Accounting Pronouncements

12 Months Ended

Sep. 30, 2012

Recent Accounting Pronouncements

Note B. Recent Accounting Pronouncements

In July 2012, the FASB issued amended guidance to simplify testing of indefinite-lived intangible assets other than goodwill for impairment. The amendments will allow an entity to first assess qualitative factors to determine whether it is necessary to perform the quantitative test. An entity no longer will be required to calculate the fair value of the intangible assets unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The new guidance will be effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012 but early adoption will be permitted. The Company will adopt this guidance for its annual impairment test of indefinite-lived intangible assets in fiscal 2013.

Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22580-107794

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Direct Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6510796

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e765-108305

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Indirect Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6515603

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22583-107794

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.10-01.(b)(6))
-URI http://asc.fasb.org/extlink&oid=6958853&loc=d3e46468-122699

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22499-107794

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Accounting Change
-URI http://asc.fasb.org/extlink&oid=6503790

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e725-108305

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6507316

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Retrospective Application
-URI http://asc.fasb.org/extlink&oid=6523989

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 154
-Paragraph 2, 17, 18
-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 01
-Paragraph b
-Subparagraph 6
-Article 10

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 28
-Paragraph 23, 24
-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.

Acquisition of Norit

12 Months Ended

Sep. 30, 2012

Note C. Acquisition of Norit

On July 31, 2012, Cabot completed the acquisition of all the issued and outstanding shares of Norit N.V. (“Norit”) for approximately $1.1 billion in cash. Norit develops, manufactures and sells activated carbon products and related delivery systems used in a range of applications, including air and water purification, food and beverages, pharmaceuticals and catalysts. Cabot’s purchase of Norit supports the Company’s ongoing transformation to a less cyclical, specialty chemicals and performance materials company. The results of Norit’s operations are included in the Company’s consolidated results from the date of the acquisition forward and are reported under Purification Solutions.

The Company incurred acquisition costs of approximately $14 million through September 30, 2012 associated with the transaction, which are included in Selling and administrative expenses.

The allocation of the purchase price was based on preliminary estimates of the fair value of assets acquired and liabilities assumed as of July 31, 2012, as the Company is continuing to obtain information to complete its valuation of these accounts and the associated tax accounting. The components and preliminary allocation of the purchase price consist of the following amounts:


	(in millions)
Current assets	$	207
Property, plant and equipment		385
Other non-current assets		72
Intangible assets		325
Goodwill		432
Current liabilities		(98	)
Deferred non-current tax liabilities		(176	)
Other non-current liabilities		(34	)

Total purchase price	$	1,113

As part of the purchase price allocation, the Company determined that the separately identifiable intangible assets were customer relationships, developed technology, and trademarks in the amounts of $119 million, $149 million, and $57 million, respectively. Customer relationships and developed technology are being amortized over a weighted average period of 17 years and 20 years, respectively. Trademarks are considered to have an indefinite life and will be tested for impairment annually or when events or changes in the business environment indicate that the carrying value of the intangible assets may exceed their fair value.

The determination of the fair value of intangible assets acquired required the use of significant judgment with regard to (i) assumptions used in the determination of fair value; and (ii) determination of their useful lives. The Company estimated the fair value of identifiable acquisition-related intangible assets principally based on projections of cash flows that will arise from these assets. The projected cash flows are discounted to determine the fair value of the assets at the date of acquisition.

The fair value of the assets acquired includes trade receivables of $46 million. The Company did not acquire any other class of receivable as a result of the acquisition of Norit.

The excess of the purchase price over the fair value of the tangible net assets and intangible assets acquired was recorded as goodwill. The goodwill recognized is attributable to the expected growth and operating synergies that the Company expects to realize from this acquisition. Goodwill generated from the acquisition will not be deductible for tax purposes.

The following table provides pro forma net sales and earnings for fiscal 2012 and 2011, as if Norit had been acquired on October 1, 2010. The unaudited pro forma results reflect certain adjustments related to the acquisition, such as increased depreciation and amortization expense on assets acquired from Norit resulting from recording the fair value of assets acquired, the impact of acquisition financing with the related tax effects, and certain reclassifications to conform with the current year’s presentation. The pro forma adjustments also include non-recurring adjustments in pro forma earnings of $19 million in 2011 related to the step-up of inventory values at the acquisition date. The pro forma results do not include any synergies or other effects of the planned integration of Norit. Accordingly, such pro forma amounts are not necessarily indicative of the results that actually would have occurred had the acquisition been completed on October 1, 2010, nor are they indicative of the future operating results of the combined company.


	September 30
	2012 (unaudited)		2011 (unaudited)
	(in millions, except per share amounts)
Net sales	$	3,585	$	3,449
Income from continuing operations⁽¹⁾		209		226
Income from continuing operations per common share:
Basic	$	3.27	$	3.47
Diluted	$	3.23	$	3.42

⁽¹⁾	Norit recognized a pre-tax gain of approximately $33 million in other income during its year ended December 31, 2011 in connection with a legal settlement.

Discontinued Operations

12 Months Ended

Sep. 30, 2012

Discontinued Operations

Note D. 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 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. Together, these notes are referred to as 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 (“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 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 Inventory Note bears interest of 10% per annum beginning January 2013. If the GAM Promissory Notes are prepaid in full, the 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 amounts have been finalized. The carrying value of the GAM Notes at September 30, 2012 is $252 million, of which $10 million is included in Prepaid expenses and other current assets on the Consolidated Balance Sheet as of September 30, 2012 and $242 million is presented as Notes receivable from sale of business. As of September 30, 2012, the Company received $23 million payable under the GAM Notes.

The Company recorded an after-tax gain on the sale of $191 million, which is included in Income from discontinued operations, net of tax, in the Consolidated Statements of Operations in fiscal 2012. Additional amounts relating to the settlement of pension obligations will be recognized as discontinued operations when 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 V. 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.

The following table summarizes the results from discontinued operations:


	Years Ended September 30
	2012			2011			2010
	(Dollars in millions)
Net sales and other operating revenues	$	46		$	201		$	177

Income from operations before income taxes		21			84			42
Provision for income taxes on operations		(7	)		(31	)		(16	)

Income from operations, net of tax	$	14		$	53		$	26

Gain on sale of discontinued operations		300			—			—
Provision for income taxes on gain on sale		(109	)		—			—

Gain on sale of discontinued operations, net of tax		191			—			—

Income from discontinued operations, net of tax	$	205		$	53		$	26

The following table summarizes the assets and the liabilities held for sale in the Company’s Consolidated Balance Sheet as of September 30, 2011:


	(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

Total noncurrent assets held for sale	$	39

Liabilities
Total current liabilities held for sale	$	12

Total noncurrent liabilities held for sale	$	6

In connection with the sale of the Supermetals Business, the Company and GAM entered into a tantalum ore supply agreement under which the Company will sell to GAM all of the tantalum ore produced at the Company’s mine in Manitoba, Canada, subject to a maximum amount, for a three-year period commencing in calendar year 2013. The future continuing cash flows to Cabot resulting from this agreement are not significant and do not constitute a material continuing financial interest in the Supermetals Business. Revenues, costs and expenses that will arise from the agreement will be included in the continuing operations of the Specialty Fluids Business.

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, which was completed in the fourth quarter of fiscal 2012.

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).

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230

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.

Property, Plant and Equipment

Inventories

12 Months Ended

Sep. 30, 2012

Inventories

Note E. Inventories

Inventories, net of LIFO reserves, are as follows:


	September 30
	2012		2011
	(Dollars in millions)
Raw materials	$	131	$	120
Work in process		5		3
Finished goods		351		233
Other		46		37

Total	$	533	$	393

Inventories valued under the LIFO method comprised approximately 5% and 8% of total inventories at September 30, 2012 and 2011, respectively. At September 30, 2012 and 2011, the LIFO reserve was $52 million and $53 million, respectively. Other inventory is comprised of certain spare parts and supplies.

During fiscal 2012, inventory quantities carried on a LIFO basis were reduced at the Company’s U.S. carbon black sites. These reductions led to liquidations of LIFO inventory quantities and resulted in a decrease of cost of goods sold of $1 million and an increase in consolidated net income of $1 million ($0.01 per diluted common share). No such reductions occurred in fiscal 2011 or 2010.

Cabot reviews inventory for both potential obsolescence and potential loss of value periodically. In this review, Cabot makes assumptions about the future demand for and market value of the inventory and, based on these assumptions, estimates the amount of obsolete, unmarketable or slow moving inventory. The inventory reserves were $15 million and $10 million, respectively, as of September 30, 2012 and 2011.

Property, Plant and Equipment

12 Months Ended

Sep. 30, 2012

Note F. Property, Plant and Equipment

Property, plant and equipment is summarized as follows:


	September 30
	2012			2011
	(Dollars in millions)
Land and land improvements	$	167		$	73
Buildings		495			479
Machinery and equipment		2,379			2,076
Other		226			162
Construction in progress		244			177

Total property, plant and equipment		3,511			2,967
Less: accumulated depreciation		(1,959	)		(1,931	)

Net property, plant and equipment	$	1,552		$	1,036

Depreciation expense was $153 million, $138 million and $137 million for fiscal 2012, 2011 and 2010, respectively.

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

12 Months Ended

Sep. 30, 2012

Note G. Goodwill and Other Intangible Assets

Cabot had goodwill balances of $480 million and $40 million at September 30, 2012 and 2011, respectively. The carrying amount of goodwill attributable to each reportable segment with goodwill balances and the changes in those balances during the years ended September 30, 2012 and 2011 are as follows:


	Reinforcement Materials		Performance Materials		Advanced Technologies		Purification Solutions		Total
	(Dollars in millions)
Balance at September 30, 2010	$	27	$	11	$	1	$	—	$	39
Foreign currency translation adjustment and other		—		—		1		—		1

Balance at September 30, 2011		27		11		2		—		40
Goodwill acquired⁽¹⁾		—		—		—		432		432
Foreign currency translation adjustment		1		—		—		7		8

Balance at September 30, 2012	$	28	$	11	$	2	$	439	$	480

⁽¹⁾	Goodwill acquired relates to the acquisition of Norit in fiscal 2012.

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, 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 concluded that there was no impairment.

The following table provides information regarding the Company’s intangible assets:


	Years Ended September 30
	2012							2011
	Gross Carrying Value		Accumulated Amortization			Net Intangible Assets		Gross Carrying Value		Accumulated Amortization			Net Intangible Assets
	(Dollars in millions)
Intangible assets with finite lives
Developed technology⁽¹⁾	$	151	$	(2	)	$	149	$	—	$	—		$	—
Customer relationships⁽¹⁾		121		(1	)		120		—		—			—
Other intangible assets		6		(3	)		3		5		(2	)		3

Total intangible assets, finite lives	$	278	$	(6	)	$	272	$	5	$	(2	)	$	3
Trademarks, indefinite lives⁽¹⁾		58		—			58		—		—			—

Total intangible assets	$	336	$	(6	)	$	330	$	5	$	(2	)	$	3

⁽¹⁾	Developed technology, Customer relationships and Trademarks relate to the acquisition of Norit in fiscal 2012.

Intangible assets with finite lives are amortized over their estimated useful lives, which range from six to twenty years, with a weighted average amortization period of 18 years. See Note C for weighted average lives of intangible assets acquired in connection with the acquisition of Norit. Amortization expense for the year ended September 30, 2012 was $3 million and is included in Cost of sales and Selling and administrative expenses in the Consolidated Statement of Operations. Amortization expense amounted to less than $1 million in each of fiscal 2011 and 2010 and is included in Cost of sales in the Consolidated Statements of Operations.

Total amortization expense is estimated to be approximately $15 million each year for the next five fiscal 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.

Accounts Payable, Accrued Liabilities and Other Liabilities

Accounts Payable, Accrued Liabilities and Other Liabilities

12 Months Ended

Sep. 30, 2012

Note H. Accounts Payable, Accrued Liabilities and Other Liabilities

Accounts payable and accrued liabilities included in current liabilities consist of the following:


	September 30
	2012		2011
	(Dollars in millions)
Accounts payable	$	425	$	330
Accrued employee compensation		46		44
Accrued severance and restructuring		5		11
Other accrued liabilities		130		76

Total	$	606	$	461

Other long-term liabilities consist of the following:


	September 30
	2012		2011
	(Dollars in millions)
Employee benefit plan liabilities	$	190	$	161
Non-current tax liabilities		53		50
Financial instrument liabilities		26		39
Other accrued liabilities		45		49

Total	$	314	$	299

Debt and Other Obligations

12 Months Ended

Sep. 30, 2012

Debt and Other Obligations

Note I. Debt and Other Obligations

The Company’s long-term obligations, the calendar year in which they mature and their respective interest rates are summarized below:


	September 30
	2012			2011
	(Dollars in millions)
Variable Rate Debt:
$750 million Revolving Credit Facility, expires 2016	$	189		$	—
Chinese Renminbi Notes, due through 2016, 5.40%—7.32%		11			15

Total variable rate debt		200			15
Fixed Rate Debt:
5% Notes due 2016	$	300		$	300
2.55% Notes due 2018		250			—
3.7% Notes due 2022		350			—
Medium Term Notes:
Notes due 2012, 7.70%—8.28%	$	—		$	30
Notes due 2018, 7.42%		30			30
Notes due 2022, 8.346%—8.47%		15			15
Note due 2027, 6.57%—7.28%		8			8

Total Medium Term Notes		53			83
Eurobond, due 2013, 5.25%		177			178
ESOP Note, due 2013, 8.29%		8			14
Chinese Renminbi Notes, due 2014, 6.10%—6.65%		5			5
Other, due 2027, 2%		—			5

Total fixed rate debt		1,143			585
Capital lease obligations, due through 2040		16			15
Unamortized debt discount		(2	)		(2	)

Total debt		1,357			613
Less current portion of long-term debt		(185	)		(57	)

Total long-term debt	$	1,172		$	556

$750 million Revolving Credit Facility—The Company has a $750 million committed unsecured revolving credit agreement which expires in August 2016. All borrowings under the credit agreement are based on variable interest rates. Generally, the interest rates are based on LIBOR plus a spread. This spread, which was 1.125% as of September 30, 2012, is based on the Company’s credit rating, resulting in a total interest rate of 1.34% as of September 30, 2012. The Company plans to use the credit agreement for general corporate purposes, which may include working capital, refinancing existing indebtedness, capital expenditures, share repurchases, and acquisitions. The credit agreement contains affirmative, negative and financial covenants and events of default customary for financings of this type. The financial covenants in the credit agreement include interest coverage, debt-to-EBITDA and subsidiary debt to total capitalization ratios. As of September 30, 2012, $189 million had been drawn against this facility, and less than $1 million that relates to the issuance of letters of credit is treated as drawn on the facility, leaving $560 million available on this facility.

Chinese Renminbi Debt—The Company’s consolidated Chinese subsidiaries had $16 million and $20 million of unsecured long-term debt outstanding as of September 30, 2012 and September 30, 2011, respectively.

5% Notes due 2016—In fiscal 2009, Cabot issued $300 million in public notes with a coupon of 5% that will mature on October 1, 2016. These notes are unsecured and pay interest on April 1 and October 1 of each year. The net proceeds of this offering were $296 million after deducting discounts and issuance costs. The discount of approximately $2 million was recorded at issuance and is being amortized over the life of the notes.

2.55% Notes due 2018—In July 2012, Cabot issued $250 million in public notes with a coupon of 2.55% that will mature on January 15, 2018. These notes are unsecured and pay interest on January 15 and July 15 of each year commencing January 15, 2013. The net proceeds of this offering were $248 million after deducting discounts and issuance costs. The discount of less than $1 million was recorded at issuance and is being amortized over the life of the notes.

3.7% Notes due 2022—In July 2012, Cabot issued $350 million in public notes with a coupon of 3.7% that will mature on July 15, 2022. These notes are unsecured and pay interest on January 15 and July 15 of each year commencing January 15, 2013. The net proceeds of this offering were $347 million after deducting discounts and issuance costs. The discount of less than $1 million was recorded at issuance and is being amortized over the life of the notes.

Medium Term Notes—At September 30, 2012 and 2011, there were $53 million and $83 million, respectively, of unsecured medium term notes outstanding issued to numerous lenders with various fixed interest rates and maturity dates. The weighted average maturity of the total outstanding medium term notes is 9 years with a weighted average interest rate of 7.65%.

Eurobond—A European subsidiary issued an unsecured $175 million U.S. dollar denominated bond with a fixed coupon rate of 5.25% in fiscal 2003. The functional currency of this subsidiary is the euro. The bond matures on September 1, 2013, with interest due on March 1 and September 1 of each year. A discount of approximately $1 million was recorded at issuance and is being amortized over the life of the bond. A portion of the eurobond is designated as a fair value hedge and accordingly is recorded at fair value. As described in Note L, the Company has entered into cross-currency swaps and a variable interest rate swap to hedge the variability in cash flows for changes in the exchange rates and to offset a portion of the changes in the fair value of the underlying debt.

ESOP Debt—In November 1988, Cabot’s Employee Stock Ownership Plan (“ESOP”) borrowed $75 million from an institutional lender in order to finance its purchase of Cabot shares. This debt bears interest at 8.29% per annum and is repaid in quarterly installments through December 31, 2013. Cabot, as guarantor, has reflected the outstanding balance of $8 million and $14 million as long-term debt in the Consolidated Balance Sheets at September 30, 2012 and 2011, respectively. An equal amount, representing deferred employee benefits, has been recorded as a reduction to stockholders’ equity. Cabot contributed $5 million to the ESOP to service the debt during fiscal 2012, and $4 million for each of fiscal 2011 and 2010. Dividends on ESOP shares used for debt service were $2 million during fiscal 2012 and 2011, and $3 million during fiscal 2010. In addition, interest incurred on the ESOP debt was $1 million, $1 million, and $2 million during fiscal 2012, 2011 and 2010, respectively.

Capital Lease Obligations—Cabot had capital lease obligations for certain equipment and buildings with a present value of $16 million and $15 million at September 30, 2012 and 2011, respectively. Cabot will make payments totaling $30 million over the next 28 years, including $14 million of imputed interest under these obligations. At September 30, 2012 and 2011, the original cost of capital lease assets was $26 million and $24 million, respectively, and the associated accumulated depreciation of assets under capital leases was $11 million and $10 million at September 30, 2012 and 2011, respectively. The amortization related to assets under capital lease is included in depreciation expense.

Future Years Payment Schedule

The aggregate principal amounts of long-term debt and capital lease obligations due in each of the five years from fiscal 2013 through 2017 are as follows:


Fiscal Years Ending	Principal payments on long term debt		Payments on Capital Lease Obligations		Total
	(Dollars in millions)
2013	$	182	$	1	$	183
2014		17		1		18
2015		—		1		1
2016		189		1		190
2017		300		1		301
Thereafter		653		11		664

Total	$	1,341	$	16	$	1,357

Standby letters of credit—At September 30, 2012, the Company had provided standby letters of credit that were outstanding and not drawn totaling $20 million, which expire through fiscal 2014. The $20 million includes less than $1 million treated as issued under the Company’s revolving credit facility.

Short-term Notes Payable to Banks—The Company had unsecured short-term notes payable to banks of $62 million and $86 million as of September 30, 2012 and 2011, respectively, with maturities of less than one year. The weighted-average interest rate on short-term notes payable was 5.2% and 5.3% for fiscal 2012 and 2011, respectively.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

Fair Value Measurements

12 Months Ended

Sep. 30, 2012

Fair Value Measurements

Note J. Fair Value Measurements

The FASB authoritative guidance on fair value measurements defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands 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:

There were no transfers of financial assets or liabilities measured at fair value between Level 1 and Level 2, or transfers into or out of Level 3, during fiscal 2012 or 2011.

As described in Note D, 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 September 30, 2012 and 2011. The derivatives presented in the table below are presented by derivative type, net of the legal right to offset derivative settlements by each counterparty:


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

Total assets at fair value	$	16	$	17

Liabilities at fair value:
Derivatives relating to foreign currency⁽²⁾	$	28	$	41
Hedged long-term debt⁽³⁾		36		61

Total liabilities at fair value	$	64	$	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.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13504-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-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 107
-Paragraph 15B
-Subparagraph a, 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 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-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 159
-Paragraph 17-22, 27, 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.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-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 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-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 157
-Paragraph 32, 33, 34
-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 FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 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.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

12 Months Ended

Sep. 30, 2012

Note K. Fair Value of Financial Instruments

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


	2012				2011
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(Dollars in millions)
Assets:
Cash and cash equivalents	$	120	$	120	$	286	$	286
GAM Promissory Notes and Inventory Note		252		252		—		—
Accounts and notes receivable		687		687		659		659
Derivative instruments		—		—		1		1
Liabilities:
Notes payable to banks		62		62		86		86
Accounts payable and accrued liabilities		606		606		461		461
Long-term debt—fixed rate		1,141		1,221		585		633
Long-term debt—floating rate		200		200		15		15
Capital lease obligations		16		16		15		15
Derivative instruments		26		26		39		39

At September 30, 2012 and 2011, the fair values of cash and cash equivalents, accounts and notes receivable, accounts payable and accrued liabilities, and notes payable to banks approximated carrying values due to the short-term nature of these instruments. The estimated fair values of derivative instruments are valued as described in Note L. 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 September 30, 2012. The valuation used is the discounted cash flow model and the significant inputs are the discount rate, Adjusted EBITDA forecast of GAM’s operations, and the timing of expected cash flows from GAM.

Financial Instruments

12 Months Ended

Sep. 30, 2012

Financial Instruments

Note 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 September 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 September 30, 2012.

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 September 30, 2012 and 2011 to manage interest rate risk.


		Notional Amount
Description	Borrowing	September 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	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 short-term forward contracts to minimize the exposure to foreign currency risk.

In certain situations where the Company has forecasted purchases under a long-term commitment or forecasted sales denominated in a foreign currency, Cabot may enter into appropriate financial instruments in accordance with the Company’s risk management policy to hedge future cash flow exposures. The following table provides details of the derivatives held as of September 30, 2012 and 2011 to manage foreign currency risk.


Description	Borrowing	Notional Amount		Hedge Designation
Description	Borrowing	September 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 106 million	USD 54 million	No designation

Forward Foreign Currency Contracts ⁽¹⁾	N/A	USD 3 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.

Accounting for Derivative Instruments and Hedging Activities

The Company determines the fair value of financial instruments using quoted market prices whenever available. When quoted market prices are not available for various types of financial instruments (such as forwards, options and swaps), the Company uses standard models with market-based inputs, which take into account the present value of estimated future cash flows and the ability of the financial counterparty to perform. For interest rate and cross-currency swaps, the significant inputs to these models are interest rate curves for discounting future cash flows. For forward foreign currency contracts, the significant inputs are interest rate curves for discounting future cash flows, and exchange rate curves of the foreign currency for translating future cash flows.

Fair Value Hedge

For derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in current period earnings.

Cash Flow Hedge

For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is recorded in Accumulated other comprehensive 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 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 September 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

During fiscal 2012, 2011, and 2010, for derivatives designated as hedges, the change in unrealized gains in Accumulated other comprehensive income, the hedge ineffectiveness recognized in earnings, the realized gains or losses reclassified from Accumulated other comprehensive income, and the losses reclassified from Accumulated other comprehensive income to earnings were immaterial.

During fiscal 2012, a loss of $10 million was recognized in earnings as a result of the remeasurement to Euros of the $175 million bond held by one of Cabot’s European subsidiaries. This loss, which was recognized in earnings through Other income (expense) within the Consolidated Statement of Operations, was offset by a gain of $12 million 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 fiscal 2012, Cabot recognized in earnings through Other income (expense) within the Consolidated Statement of Operations, gains of $10 million related to its foreign currency forward contracts, which were not designated as hedges.

During fiscal 2011, a loss of $2 million was recognized in earnings as a result of the remeasurement to Euros of the $175 million bond held by one of Cabot’s European subsidiaries. This loss, which was recognized in earnings through Other expense within the Consolidated Statement of Operations, was offset by a gain of $1 million 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 fiscal 2011, Cabot recognized in earnings through Other expense within the Consolidated Statement of Operations, gains of $3 million related to its foreign currency forward contracts, which were not designated as hedges.

During fiscal 2010, a loss of $14 million was recognized in earnings as a result of the remeasurement to Euros of the $175 million bond held by one of Cabot’s European subsidiaries. This loss, which was recognized in earnings through Other expense within the Consolidated Statement of Operations, was offset by a gain of $16 million 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 fiscal 2010, Cabot recognized in earnings through Other expense within the Consolidated Statement of Operations, gains of $7 million related to its foreign currency forward contracts, which were not designated as hedges.

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


Fair Value of Derivative Instruments	Consolidated Balance Sheet Caption	September 30, 2012		September 30, 2011
		(Dollars in millions)
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
Other⁽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	$	28	$	41
Other⁽²⁾	Prepaid expenses and other current assets		1		1

Total derivatives not designated as hedges		$	29	$	42

Total Liability Derivatives		$	29	$	43

⁽¹⁾

Contracts of $2 million and $3 million presented on a gross basis in this table at September 30, 2012 and 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 Sheets.

⁽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” and noncurrent “Other assets” in the Consolidated Balance Sheets.

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
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41620-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4D
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624177-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579240-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7668309&loc=d3e80784-113994

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41641-113959

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579245-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4H
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624258-113959

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5708775-113959

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7668309&loc=d3e80748-113994

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41635-113959

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5708773-113959

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5618551-113959

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5580258-113959

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41638-113959

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 25
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4E
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624181-113959

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 45
-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 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44
-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.

Venezuela

12 Months Ended

Sep. 30, 2012

Venezuela

Note 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 September 30, 2012 these subsidiaries carried the operating affiliate investment of $25 million, and held 21 million bolivars ($5 million) in cash.

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 September 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.

Employee Benefit Plans

12 Months Ended

Sep. 30, 2012

Employee Benefit Plans

Note N. Employee Benefit Plans

The information below provides detail concerning the Company’s benefit obligations under the defined benefit and post-retirement benefit plans it sponsors, including the obligations the Company assumed in its acquisition of Norit. The information included in this footnote and the related tables also includes amounts pertaining to the Company’s former Supermetals Business, unless indicated otherwise.

Defined benefit plans provide pre-determined benefits to employees that are distributed upon retirement. Cabot used a September 30 measurement date for all U.S. and foreign plan obligations and assets in both fiscal 2012 and 2011. Cabot is making all required contributions to these plans. The accumulated benefit obligation was $187 million for the U.S. defined benefit plans and $398 million for the foreign plans as of September 30, 2012 and $140 million for the U.S. defined benefit plans and $218 million for the foreign plans as of September 30, 2011.

In addition to benefits provided under the defined benefit and post-retirement benefit plans, the Company provides benefits under defined contribution plans. One of these plans includes an Employee Stock Ownership Plan (“ESOP”) component, which is described below. Cabot recognized expenses related to these plans, not including the expenses related to the ESOP, of $7 million in fiscal 2012, $7 million in fiscal 2011 and $9 million in fiscal 2010.

Employee Stock Ownership Plan

Eligible employees of Cabot and its participating subsidiaries in the U.S. participate in the ESOP. Under the ESOP, which is 100% Company funded, 108,696.645 shares of Cabot common stock are allocated to participants’ accounts at the end of each quarter. Cabot has established a minimum and maximum contribution percentage of total eligible pay. The actual contribution percentage in any given quarter varies depending on Cabot’s stock price on the last day of the relevant quarter, the total eligible compensation and the amount of the dividends allocated to participants. Compensation expense related to the ESOP was $5 million in fiscal 2012 and $4 million in each of fiscal 2011 and 2010.

The following provides information about benefit obligations, plan assets, the funded status and weighted-average assumptions of the defined benefit pension and postretirement benefit plans:


	Years Ended September 30
	2012						2011						2012						2011
	Pension Benefits												Postretirement Benefits
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign			U.S.			Foreign
	(Dollars in millions)
Change in Benefit Obligations:
Benefit obligation at beginning of year	$	147		$	236		$	143		$	241		$	64		$	15		$	69		$	15
Service cost		5			7			5			6			1			—			1			—
Interest cost		7			11			6			11			2			1			2			1
Plan participants’ contribution		—			1			—			1			—			—			—			—
Foreign currency exchange rate changes		—			5			—			1			—			1			—			—
Loss (gain) from changes in actuarial assumptions		12			38			2			(9	)		1			2			(1	)		(1	)
Benefits paid⁽¹⁾		(11	)		(11	)		(9	)		(16	)		(5	)		(1	)		(5	)		—
Plan amendments		—			—			—			—			—			—			(2	)		—
Settlements or curtailment gain		(1	)		(4	)		—			(1	)		(1	)		—			—			—
Acquisition of Norit		36			140			—			—			2			—			—			—
Other		—			(1	)		—			2			—			—			—			—

Benefit obligation at end of year	$	195		$	422		$	147		$	236		$	64		$	18		$	64		$	15


	Years Ended September 30
	2012						2011						2012						2011
	Pension Benefits												Postretirement Benefits
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign			U.S.			Foreign
	(Dollars in millions)
Change in Plan Assets:
Fair value of plan assets at beginning of year	$	103		$	197		$	104		$	197		$	—		$	—		$	—		$	—
Actual return on plan assets		23			24			8			2			—			—			—			—
Employer contribution		8			13			—			13			5			1			5			—
Plan participants’ contribution		—			1			—			1			—			—			—			—
Foreign currency exchange rate changes		—			5			—			—			—			—			—			—
Benefits paid⁽¹⁾		(11	)		(11	)		(9	)		(16	)		(5	)		(1	)		(5	)		—
Settlements		—			(5	)		—			—			—			—			—			—
Acquisition of Norit		27			133			—			—			—			—			—			—
Expenses paid from assets		(1	)		(1	)		—			—			—			—			—			—

Fair value of plan assets at end of year	$	149		$	356		$	103		$	197		$	—		$	—		$	—		$	—

Funded status	$	(46	)	$	(66	)	$	(44	)	$	(39	)	$	(64	)	$	(18	)	$	(64	)	$	(15	)

Recognized liability⁽²⁾	$	(46	)	$	(66	)	$	(44	)	$	(39	)	$	(64	)	$	(18	)	$	(64	)	$	(15	)

⁽¹⁾	Included in this amount is $7 million and $2 million that the Company paid directly to the participants in its defined benefit plans in fiscal 2012 and 2011, respectively.

⁽²⁾	Included in this amount is $4 million of net pension liability as of September 30, 2011 related to the Supermetals Business presented as Noncurrent liabilities held for sale in the Consolidated Balance Sheet.

Pension Assumptions and Strategy

The following assumptions were used to determine the pension benefit obligations at September 30:


	Assumptions as of September 30
	2012						2011						2010
	Pension Benefits
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign
Actuarial assumptions as of the year-end measurement date:
Discount rate		3.5	%		3.6	%		4.5	%		4.8	%		4.5	%		4.4	%
Rate of increase in compensation		3.5	%		3.1	%		3.8	%		3.1	%		3.8	%		3.3	%
Actuarial assumptions used to determine net periodic benefit cost during the year:
Discount rate		4.5	%		4.8	%		4.5	%		4.3	%		5.3	%		5.0	%
Expected long-term rate of return on plan assets		7.8	%		5.3	%		7.8	%		6.1	%		7.8	%		6.1	%
Rate of increase in compensation		3.8	%		3.2	%		3.8	%		3.3	%		3.8	%		3.4	%

Post Retirement Assumptions and Strategy

The following assumptions were used to determine the post retirement benefit obligations at September 30:


	Assumptions as of September 30
	2012						2011						2010
	Postretirement Benefits
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign
Actuarial assumptions as of the year-end measurement date:
Discount rate		3.3	%		3.9	%		4.5	%		4.9	%		4.5	%		4.8	%
Initial health care cost trend rate		8.0	%		7.4	%		8.5	%		8.0	%		7.5	%		8.0	%
Actuarial assumptions used to determine net cost during the year:
Discount rate		4.5	%		4.9	%		4.5	%		4.8	%		5.3	%		5.2	%
Initial health care cost trend rate		8.5	%		7.9	%		7.5	%		8.0	%		8.0	%		9.0	%

Cabot uses discount rates as of September 30, the plans’ measurement date, to determine future benefit obligations under its U.S. and foreign defined benefit plans. The discount rates for the defined benefit plans in the U.S., Canada, UAE, Euro-zone, Japan, Switzerland and the U.K. are derived from yield curves that reflect high quality corporate bond yield or swap rate information in each region and reflect the characteristics of Cabot’s employee benefit plans. The discount rates for the defined benefit plans in the Czech Republic and Indonesia are based on government bond indices that best reflect the durations of the plans, adjusted for credit spreads presented in selected AA corporate bond indices.

The rates utilized are selected because they represent long-term, high quality, fixed income benchmarks that approximate the long-term nature of Cabot’s pension obligations and related payouts.


	Years Ended September 30
	2012						2011						2012						2011
	Pension Benefits												Postretirement Benefits
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign			U.S.			Foreign
	(Dollars in millions)
Net Amounts Recognized in the Consolidated Balance Sheets
Noncurrent assets	$	—		$	4		$	—		$	10		$	—		$	—		$	—		$	—
Current liabilities		—			(1	)		—			(1	)		(6	)		(1	)		(6	)		—
Noncurrent liabilities		(46	)		(69	)		(44	)		(48	)		(58	)		(17	)		(58	)		(15	)

Amounts recognized in Accumulated other comprehensive income at September 30, 2012 and 2011 were as follows:


	Years Ended September 30
	2012				2011				2012					2011
	Pension Benefits								Postretirement Benefits
	U.S.		Foreign		U.S.		Foreign		U.S.			Foreign		U.S.			Foreign
	(Dollars in millions)
Net actuarial loss	$	29	$	77	$	34	$	52	$	3		$	3	$	2		$	2
Net prior service cost (credit)		1		—		1		—		(10	)		—		(14	)		—

Balance in accumulated other comprehensive income, pretax	$	30	$	77	$	35	$	52	$	(7	)	$	3	$	(12	)	$	2

In fiscal 2013, an estimated net loss of $6 million will be amortized from accumulated other comprehensive income to net periodic benefit cost. In addition, amortization of estimated prior service credits of $3 million for other postretirement benefits will be amortized from accumulated other comprehensive income to net periodic benefit costs in fiscal 2013.

Estimated Future Benefit Payments

The Company expects that the following benefit payments will be made to plan participants in the years from 2013 to 2022:


	Pension Benefits				Postretirement Benefits
	U.S.		Foreign		U.S.		Foreign
	(Dollars in millions)
Years Ended:
2013	$	13	$	17	$	6	$	1
2014		12		17		6		1
2015		12		19		6		1
2016		13		21		5		1
2017		14		20		5		1
2018-2022		76		116		22		5

Post retirement medical benefits are unfunded and impact Cabot’s cash flows. The Company expects to contribute less than $1 million and $12 million related to its U.S. and foreign pension plans, respectively, in fiscal 2013.

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


	Years Ended September 30
	2012						2011						2010						2012					2011					2010
	Pension Benefits																		Postretirement Benefits
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign			U.S.			Foreign		U.S.			Foreign		U.S.			Foreign
	(Dollars in millions)
Service cost	$	5		$	7		$	5		$	6		$	5		$	5		$	1		$	—	$	1		$	—	$	1		$	—
Interest cost		7			11			6			11			7			11			2			1		2			1		3			1
Expected return on plan assets		(9	)		(13	)		(8	)		(13	)		(9	)		(11	)		—			—		—			—		—			—
Amortization of prior service cost (credit)		—			—			—			—			—			—			(3	)		—		(3	)		—		(4	)		—
Net losses (gains)		1			3			—			3			—			2			—			—		—			—		—			—
Settlements or curtailments cost (income)		1			1			—			—			—			1			(1	)		—		—			—		—			—
Other		—			—			—			2			—			—			—			—		—			—		—			—

Net periodic benefit cost	$	5		$	9		$	3		$	9		$	3		$	8		$	(1	)	$	1	$	—		$	1	$	—		$	1

Other changes in plan assets and benefit obligations recognized in other comprehensive income are as follows:


	Years Ended September 30
	2012						2011					2010					2012				2011						2010
	Pension Benefits																Postretirement Benefits
	U.S.			Foreign			U.S.		Foreign			U.S.		Foreign			U.S.		Foreign		U.S.			Foreign			U.S.		Foreign
	(Dollars in millions)
Net losses (gains)	$	(3	)	$	27		$	2	$	1		$	5	$	12		$	1	$	1	$	(1	)	$	(1	)	$	1	$	—
Prior service cost		(1	)		—			—		—			—		—			1		—		(2	)		—			—		—
Amortization of prior service (cost) credit		—			—			—		—			—		—			3		—		4			—			4		—
Amortization of prior unrecognized loss		(1	)		(3	)		—		(3	)		—		(2	)		—		—		—			—			—		—
Other		—			1			—		—			—		1			—		—		—			—			—		—

Total other comprehensive loss (income)	$	(5	)	$	25		$	2	$	(2	)	$	5	$	11		$	5	$	1	$	1		$	(1	)	$	5	$	—

Curtailments and settlements of employee benefit plans

In recent years, the Company incurred curtailments and settlements of certain of its employee benefit plans. Associated with these curtailments and settlements, the Company recognized a net loss of $1 million, a net gain of less than $1 million and a net loss of $1 million in fiscal 2012, 2011 and 2010, respectively.

Sensitivity Analysis

Measurement of postretirement benefit expense is based on actuarial assumptions used to value the postretirement benefit liability at the beginning of the year. Assumed health care cost trend rates have an effect on the amounts reported for the health care plans. The fiscal 2012 weighted-average assumed health care cost trend rate is 8.5% for U.S. plans and 7.9% for foreign plans. The ultimate weighted-average health care cost trend rate has been designated as 5.0% for U.S. plans and 6.0% for foreign plans and is anticipated to be achieved during 2018 and 2016, respectively. A one percentage point change in the 2012 assumed health care cost trend rate would have the following effects:


	1-Percentage-Point
	Increase				Decrease
	U.S.		Foreign		U.S.		Foreign
	(Dollars in millions)
Effect on postretirement benefit obligation	$	—	$	3	$	—	$	(2	)

Plan Assets

The Company’s defined benefit pension plans weighted-average asset allocations at September 30, 2012 and 2011, by asset category are as follows:


	Pension Assets
	September 30
	2012						2011
	U.S.			Foreign			U.S.			Foreign
Asset Category:
Equity securities		62	%		39	%		57	%		44	%
Debt securities		38	%		56	%		43	%		50	%
Cash and other securities		—			5	%		—			6	%

Total		100	%		100	%		100	%		100	%

To develop the expected long-term rate of return on plan assets assumption, the Company used a capital asset pricing model. The model considers the current level of expected returns on risk-free investments comprised of government bonds, the historical level of the risk premium associated with the other asset classes in which the portfolio is invested, and the expectations for future returns for each asset class. The expected return for each asset class was then weighted based on the target asset allocation to develop the expected long-term rate of return for each plan.

Cabot’s investment strategy for each of its defined benefit plans in the U.S. and abroad is generally based on a set of investment objectives and policies that cover time horizons and risk tolerance levels consistent with plan liabilities. Periodic studies are performed to determine the asset mix that will meet pension obligations at a reasonable cost to the Company. The assets of the defined benefit plans are comprised principally of investments in equity and high quality fixed income securities, which are broadly diversified across the capitalization and style spectrum and are managed using both active and passive strategies. The weighted average target asset allocation for the U.S. plans is 61% in equity and 39% in fixed income and for the foreign plans is 39% in equity, 55% in fixed income, 2% in real estate and 4% in cash and other securities.

For pension or other postretirement benefit plan assets classified as Level 1 measurements (measured using quoted prices in active markets), total fair value is either the price of the most recent trade at the time of the market close or the official close price, as defined by the exchange on which the asset is most actively traded on the last trading day of the period, multiplied by the number of units held without consideration of transaction costs.

For pension or other postretirement benefit plan assets classified as Level 2 measurements, where the security is frequently traded in less active markets, fair value is based on the closing price at the end of the period; where the security is less frequently traded, fair value is based on the price a dealer would pay for the security or similar securities, adjusted for any terms specific to that asset or liability. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance/quality checks.

Some pension or other postretirement benefit plan assets are held in funds where a net asset value is calculated based on the fair value of the underlying assets and the number of shares owned. The classification of the fund (Level 1, 2 or 3 measurements) is determined based on the classification of the significant holdings within the fund. For all other pension or other postretirement benefit plan assets for which observable inputs are used, fair value is derived through the use of fair value models, such as a discounted cash flow model or other standard pricing models.

The fair value of the Company’s pension plan assets at September 30, 2012 and 2011 by asset category is as follows:


	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Total
	2012				Total		2011				Total
Asset Category:
Cash	$	4	$	1	$	5	$	4	$	1	$	5
Direct investments:
U.S. equity securities		19		—		19		13		—		13
Non-U.S. equity securities		5		—		5		1		—		1
Non-U.S. government bonds		50		—		50		47		—		47
Non-U.S. corporate bonds		11		—		11		1		—		1

Total direct investments	$	85	$	—	$	85	$	62	$	—	$	62
Investment funds:
Equity funds⁽¹⁾		97		108		205		20		86		106
Fixed income funds⁽²⁾		66		126		192		43		50		93
Real estate funds⁽³⁾		—		2		2		—		1		1
Common and collective investment trust funds⁽⁴⁾		—		—		—		—		24		24
Money market funds		1		—		1		1		—		1
Other		4		—		4		—		—		—

Total investment funds		168	$	236	$	404	$	64	$	161	$	225
Alternative investments:
Insurance contracts⁽⁵⁾		—		10		10		—		8		8
Other		—		1		1		—		—		—

Total alternative investments		—	$	11	$	11	$	—	$	8	$	8

Total pension plan assets	$	257	$	248	$	505	$	130	$	170	$	300

⁽¹⁾	The equity funds asset class includes funds that invest in U.S. equities as well as equity securities issued by companies incorporated, listed or domiciled in countries in developed and/or emerging markets. These companies may be in the small-, mid- or large-cap categories.

⁽²⁾

The fixed income funds asset class includes investments in high quality funds. High quality fixed income funds primarily invest in low risk U.S. and non-U.S. government securities, investment-grade corporate bonds, mortgages and asset-backed securities. A significant portion of the fixed income funds asset includes investment in long-term bond funds.

⁽³⁾

The real estate funds asset class includes funds that primarily invest in entities which are principally engaged in the ownership, acquisition, development, financing, sale and/or management of income-producing real estate properties, both commercial and residential. These funds typically seek long-term growth of capital and current income that is above average relative to public equity funds.

⁽⁴⁾

The investment objective of the portfolio of this common and collective investment trust is to achieve long-term, total return in excess of the MSCI World Index Benchmark by investing in equity securities of companies worldwide, emphasizing those with above-average potential for capital appreciation

⁽⁵⁾	Insurance contracts held by the Company’s non-U.S. plans are issued by well-known, highly rated insurance companies.

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.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e2439-114920

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e2417-114920

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e2410-114920

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e1928-114920

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 55
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=21916443&loc=d3e4179-114921

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
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5, 6, 7
-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 132R
-Paragraph 5
-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.

Stock-Based Compensation

12 Months Ended

Sep. 30, 2012

Stock-Based Compensation

Note O. Stock-Based Compensation

The Company has established equity compensation plans that provide stock-based compensation to eligible employees. The 2009 Long-Term Incentive Plan (the “2009 Plan”), which was approved by Cabot’s stockholders on March 12, 2009 and amended on March 8, 2012, authorizes the issuance of approximately 8.9 million shares of common stock. This is the Company’s only equity incentive plan under which awards may currently be made to employees, although some awards made under the Company’s 2006 Long-Term Incentive Plan (the “2006 Plan”) remain outstanding at September 30, 2012.

The terms of awards made under Cabot’s equity compensation plans are generally determined by the Compensation Committee of Cabot’s Board of Directors. The 2009 Plan allows for grants of stock options, restricted stock, restricted stock units and other stock-based awards to employees. The awards made in fiscal 2012, 2011 and 2010 under the 2009 Plan consist of grants of stock options, time-based restricted stock units, performance-based restricted stock units, and restricted stock units that will be settled in cash. The options were issued with an exercise price equal to 100% of the market price of Cabot’s common stock on the date of grant, vest over a three year period (30% on each of the first and second anniversaries of the date of grant and 40% on the third anniversary of the date of grant) and expire ten years after grant. The restricted stock units vest three years from the date of the grant. The number of shares issuable, if any, when a performance-based restricted stock unit award vests will depend on the degree of achievement (threshold, target or maximum performance) of the corporate performance metrics for each year within the three-year performance period of the award. Accordingly, future compensation costs associated with outstanding awards of performance-based restricted stock units may increase or decrease based on the probability of the Company achieving the performance metrics.

As of September 30, 2012, there were 56,892 outstanding time-based and performance-based restricted stock units which will be settled by the payment of cash. Compensation expense related to these awards is remeasured throughout the vesting period and until ultimate settlement of the award. Cumulative compensation and the associated liability is recorded equal to the fair value of Cabot common stock multiplied by the applicable vesting percentage. The Company recorded liabilities associated with these cash settled awards of $1 million at both September 30, 2012 and 2011.

Prior to 2009, the principal awards made under the Company’s equity plans consisted of grants of restricted stock and stock options. The shares of restricted stock were generally purchased by the employee at a price equal to 30% of the market price of Cabot’s common stock on the date of grant, with vesting dates three years after the date of grant. The stock options issued prior to 2009 were issued with an exercise price equal to 100% of the market price of Cabot’s common stock on the date of grant, vest three years after the date of grant and expire five years after grant.

Stock-based employee compensation expense was $10 million, $10 million and $11 million, after tax, for fiscal 2012, 2011 and 2010, respectively. The Company recognized the full impact of its stock-based employee compensation expense in the Consolidated Statements of Operations for fiscal 2012, 2011 and 2010 and did not capitalize any such costs on the Consolidated Balance Sheets because those that qualified for capitalization were not material. The following table presents stock-based compensation expenses included in the Company’s Consolidated Statements of Operations:


	Years Ended September 30
	2012			2011			2010
	(Dollars in millions)
Cost of Sales	$	5		$	5		$	6
Selling and administrative expenses		9			9			11
Research and technical expenses		1			1			1

Stock-based compensation expense		15			15			18
Income tax benefit		(5	)		(5	)		(7	)

Net stock-based compensation expense	$	10		$	10		$	11

As of September 30, 2012, Cabot has $14 million, $2 million and less than $1 million of total unrecognized compensation cost related to non-vested restricted stock units, non-vested options and non-vested restricted stock, respectively, granted under the Company’s equity incentive plans. That cost is expected to be recognized over a weighted-average period of 1.2 years, 0.8 years and 0.9 years for non-vested restricted stock units, non-vested options and the non-vested restricted stock, respectively.

Equity Incentive Plan Activity

The following table summarizes the total stock option, restricted stock, and restricted stock unit activity in the equity incentive plans for fiscal 2012:


	September 30, 2012
	Stock Options							Restricted Stock					Restricted Stock Units
	Total Options			Weighted Average Exercise Price		Weighted Average Grant Date Fair Value		Restricted Stock			Weighted Average Grant Date Fair Value		Restricted Stock Units⁽¹⁾			Weighted Average Grant Date Fair Value
	(Shares in thousands)
Outstanding at September 30, 2011		1,772		$	21.96		$6.06		3		$	9.56		866		$	28.89
Granted		284			32.95		11.64		—			—		405			33.15
Performance-based adjustment⁽²⁾		—			—		—		—			—		10			25.93
Exercised / Vested		(434	)		19.95		4.72		(1	)		9.56		(15	)		25.64
Cancelled / Forfeited		(43	)		33.64		8.26		—			—		(35	)		29.70

Outstanding at September 30, 2012		1,579			24.17		7.37		2			9.56		1,231			30.28

Exercisable at September 30, 2012		983			20.03

Expected to vest⁽³⁾		561			30.95

⁽¹⁾	The number “Granted” represents the number of shares issuable upon vesting of time-based restricted stock units and performance-based restricted stock units, assuming the Company performs at the target performance level in each year of the three-year performance period.

⁽²⁾	Represents the net incremental number of shares issuable upon vesting of outstanding performance-based restricted stock units, based on the Company’s actual performance against the performance targets for the 2012 performance period of the outstanding units.

⁽³⁾	Stock options expected to vest in the future, net of estimated forfeitures, have a weighted average remaining contractual life of 8.3 years.

Stock Options

The following table summarizes information related to the total outstanding options and the vested options on September 30, 2012:


	Total Options Outstanding		Exercisable Options
Aggregate Intrinsic Value (in millions)	$	20	$	16
Weighted Average Remaining Contractual Term (in years)		7.3		6.7

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value, based on the Company’s closing common stock price of $36.57 on September 28, 2012, which would have been received by the option holders had all option holders exercised their options and immediately sold their shares on that date.

The intrinsic value of options exercised during fiscal 2012, 2011 and 2010 was $9 million, $3 million and $1 million, respectively, and the Company received cash of $9 million, $4 million and $3 million, respectively, from these exercises.

The Company uses the Black-Scholes option-pricing model to estimate the fair value of the options at the grant date. The estimated weighted average grant date fair values of options granted during fiscal 2012, 2011 and 2010 was $11.64, $12.09, and $7.41 per option, respectively. The fair values on the grant date were calculated using the following weighted-average assumptions:


	Years Ended September 30
	2012			2011			2010
Expected stock price volatility		45	%		43	%		42	%
Risk free interest rate		1.3	%		1.8	%		2.8	%
Expected life of options (years)		6			6			6
Expected annual dividends per year	$	0.72		$	0.72		$	0.72

The expected stock price volatility assumption was determined using the historical volatility of the Company’s common stock over the expected life of the option. The expected term reflects the anticipated time period between the measurement date and the exercise date or post-vesting cancellation date.

Restricted Stock Units

The value of restricted stock unit awards is the closing stock price at the date of the grant. The estimated weighted average grant date fair values of restricted stock unit awards granted during fiscal 2012, 2011 and 2010 was $33.15, $34.76 and $24.49, respectively. The intrinsic value of restricted stock units (meaning the fair value of the units on the date of vest) that vested during fiscal 2012 and 2011 were $1 million and less than $1 million, respectively. No restricted stock units vested during fiscal 2010.

Restricted Stock

The fair value of restricted stock awards is derived by calculating the difference between the share price and the purchase price at the date of the grant. There were no restricted stock awards granted during fiscal 2012, 2011 or 2010. The intrinsic value of restricted stock that vested during fiscal 2012, 2011 and 2010 was less than $1 million, $27 million and $11 million, respectively.

Supplemental Retirement Savings Plan

Cabot’s Supplemental Retirement Savings Plan (“SRSP”) provides benefits to highly compensated employees in circumstances in which the maximum limits established under ERISA and the Internal Revenue Code prevent them from receiving all of the Company matching and ESOP contributions that would otherwise be provided under the qualified Retirement Savings Plan. The SRSP is non-qualified and unfunded. Contributions under the SRSP are treated as if invested in Cabot common stock. The majority of the distributions made under the SRSP are required to be paid with shares of Cabot common stock. The remaining distributions, which relate to certain grandfathered accounts, will be paid in cash based on the market price of Cabot common stock at the time of distribution. The aggregate value of the accounts that will be paid out in stock, which is equivalent to approximately 110,000 and 125,000 shares of Cabot common stock as of September 30, 2012 and 2011, respectively, is reflected at historic cost in stockholders’ equity, and the aggregate value of the accounts that will be paid in cash, which is $1 million as of both September 30, 2012 and 2011, is reflected in other long-term liabilities and marked-to-market quarterly.

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-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 Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-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.

Restructuring

12 Months Ended

Sep. 30, 2012

Restructuring

Note P. Restructuring

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


	Years Ended September 30
	2012		2011		2010
	(Dollars in millions)
Cost of sales	$	13	$	16	$	36
Selling and administrative expenses		2		2		10
Research and technical expenses		—		—		—

Total	$	15	$	18	$	46

Details of these restructuring activities and the related reserves for fiscal 2012 and 2011 were as follows:


	Severance and Employee Benefits			Environmental Remediation			Asset Impairment and Accelerated Depreciation			Asset Sales			Other			Total
	(Dollars in millions)
Reserve at September 30, 2010	$	18		$	1		$	—		$	—		$	—		$	19
Charges		8			3			3			(1	)		5			18
Costs charged against assets and other		1			—			(3	)		(4	)		—			(6	)
Proceeds from sale		—			—			—			6			—			6
Cash paid		(17	)		(4	)		—			(1	)		(4	)		(26	)
Foreign currency translation adjustment		(1	)		—			—			—			1			—

Reserve at September 30, 2011	$	9		$	—		$	—		$	—		$	2		$	11
Charges		3			3			7			(1	)		3			15
Costs charged against assets and other		—			—			(7	)		(3	)		—			(10	)
Proceeds from sale		—			—			—			4			—			4
Cash paid		(10	)		(2	)		—			—			(2	)		(14	)
Foreign currency translation adjustment		—			—			—			—			(1	)		(1	)

Reserve at September 30, 2012	$	2		$	1		$	—		$	—		$	2		$	5

Closure of Hong Kong, China Manufacturing Facility

In March 2012, the Company ceased manufacturing operations at its specialty compounds plant in Hong Kong and moved these operations primarily to its facility in Tianjin, China. The decision, which affected 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 at Cabot’s facilities in Tianjin.

The Company expects the closure plan will result in a total pre-tax charge to earnings of approximately $10 million. Through September 30, 2012 the Company has charged approximately $6 million to earnings for this restructuring, comprised mainly of accelerated depreciation, asset write-offs, and severance charges.

Cumulative net cash outlays related to this plan are expected to be approximately $3 million comprised primarily of $1 million for severance and $2 million for post close operations. Through September 30, 2012, Cabot has made net cash payments of less than $1 million. The Company expects to make net cash payments of approximately $3 million in fiscal 2013.

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

Closure of Grigno, Italy Manufacturing Facility

In February 2011, the Company closed its specialty compounds manufacturing facility in Grigno, Italy. This decision was made to align Cabot’s manufacturing capabilities with the market outlook and Cabot’s Performance Materials strategy. The closure, which affected 37 employees, resulted in $5 million of net charges to earnings which are comprised of $3 million for severance and employee benefits and $3 million for accelerated depreciation and asset impairments partially offset by a gain of $1 million related to the sale of the facility, which occurred in the fourth quarter of fiscal 2012.

Through September 30, 2012, Cabot has made net cash payments of $1 million associated with this restructuring plan including $2 million of severance and $1 million of other costs partially offset by proceeds of $2 million from the sale of the facility. The Company expects to make additional severance cash payments of less than $1 million in 2013.

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

Closure of Thane, India Manufacturing Facility

In fiscal 2010, Cabot ceased manufacturing operations at its carbon black manufacturing facility in Thane, India. This decision, 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 demolition and site clearing costs and $2 million for other post-close 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 fiscal 2012, Cabot has made net cash payments of $8 million. The Company expects to make cash payments of less than $1 million in 2013. These amounts exclude any potential cash to be received on the sale of land and certain other manufacturing related assets.

As of September 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 cumulative pre-tax charges of $124 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 $17 million.

Net cash outlays related to these actions are expected to be approximately $72 million. Through September 30, 2012, Cabot has made net cash payments of $71 million. During fiscal 2013 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 September 30, 2012, Cabot has $3 million of accrued restructuring costs in accrued expenses in the Consolidated Balance Sheet related to this plan.

Other Activities

Cabot has recorded approximately $1 million and $5 million during fiscal 2012 and 2011, respectively, of severance-related restructuring charges at other locations. Through September 30, 2012, Cabot has made cash payments of $5 million related to these activities and expects to pay $1 million in fiscal 2013.

As of September 30, 2012, Cabot has $1 million of accrued restructuring costs in the Consolidated Balance Sheet related to these activities.

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.

Stockholders' Equity

12 Months Ended

Sep. 30, 2012

Stockholders' Equity

Note Q. Stockholders’ Equity

In fiscal 2007, the Board of Directors authorized Cabot to repurchase up to ten million shares of Cabot’s common stock in the open market or in privately negotiated transactions. This authorization does not have a set expiration date. During fiscal 2012 Cabot repurchased 1.1 million shares of its common stock under this authorization for an aggregate purchase price of $36 million. During fiscal 2011 Cabot repurchased 1.6 million shares of its common stock under this authorization for an aggregate purchase price of $50 million. There were no shares repurchased in fiscal 2010. As of September 30, 2012, approximately 1.6 million shares remain available for repurchase under the current authorization.

During fiscal 2012, Cabot paid cash dividends of $0.76 per share of common stock. During each of fiscal 2011 and 2010, Cabot paid cash dividends of $0.72 per share of common stock.

Accumulated Other Comprehensive Income

The following table illustrates the after-tax balances of the components comprising Accumulated other comprehensive income:


	September 30
	2012			2011
	(Dollars in millions)
Foreign currency translation adjustments	$	167		$	163
Unrealized holding gain on investments/derivatives		—			1
Change in funded status of retirement plans		(75	)		(58	)

Accumulated other comprehensive income	$	92		$	106

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=6228006&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Section B
-Paragraph 7, 11A
-Chapter 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 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-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.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 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 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 3, 4, 5, 6, 7, 8
-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 23: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

Earnings Per Share

12 Months Ended

Sep. 30, 2012

Earnings Per Share

Note R. Earnings Per Share

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


	Years Ended September 30
	2012			2011			2010
	(In millions, except per share amounts)
Basic EPS:
Net income attributable to Cabot Corporation	$	388		$	236		$	154
Less: Dividends and dividend equivalents to participating securities		—			1			1
Less: Undistributed earnings allocated to participating securities⁽¹⁾		3			2			2

Earnings allocated to common shareholders (numerator)	$	385		$	233		$	151

Weighted average common shares and participating securities outstanding		64.0			65.4			65.3
Less: Participating securities⁽¹⁾		0.6			0.8			1.5

Adjusted weighted average common shares (denominator)		63.4			64.6			63.8

Per share amounts—basic:
Income from continuing operations attributable to Cabot Corporation	$	2.87		$	2.80		$	1.96
Income from discontinued operations		3.20			0.82			0.41

Net income attributable to Cabot Corporation	$	6.07		$	3.62		$	2.37

Diluted EPS:
Earnings allocated to common shareholders	$	385		$	233		$	151
Plus: Earnings allocated to participating securities		3			3			3
Less: Adjusted earnings allocated to participating securities⁽²⁾		(3	)		(3	)		(3	)

Earnings available to common shares (numerator)	$	385		$	233		$	151

Adjusted weighted average common shares outstanding		63.4			64.6			63.8
Effect of dilutive securities:
Common shares issuable⁽³⁾		0.8			0.8			0.5

Adjusted weighted average common shares (denominator)		64.2			65.4			64.3

Per share amounts—diluted:
Income from continuing operations attributable to Cabot Corporation	$	2.83		$	2.77		$	1.94
Income from discontinued operations		3.16			0.80			0.41

Net income attributable to Cabot Corporation	$	5.99		$	3.57		$	2.35

⁽¹⁾

Participating securities consist of shares of unvested restricted stock, vested restricted stock awards held by employees in which Cabot has a security interest, and unvested time-based restricted stock units.

Undistributed earnings are the earnings which remain after dividends declared during the period are assumed to be distributed to the common and participating shareholders. Undistributed earnings are allocated to common and participating shareholders on the same basis as dividend distributions. The calculation of undistributed earnings is as follows:


	Years Ended September 30
	2012		2011		2010
	( Dollars in millions)
Calculation of undistributed earnings:
Net income attributable to Cabot Corporation	$	388	$	236	$	154
Less: Dividends declared on common stock		49		46		46
Less: Dividends and dividend equivalents to participating securities		—		1		1

Undistributed earnings	$	339	$	189	$	107

Allocation of undistributed earnings:
Undistributed earnings allocated to common shareholders	$	336	$	187	$	105
Undistributed earnings allocated to participating securities		3		2		2

Undistributed earnings	$	339	$	189	$	107

⁽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 for outstanding and achieved performance-based stock unit awards issued under Cabot’s equity incentive plans using the treasury stock method. For fiscal 2012 and 2011, respectively, 395,532 and 253,000 incremental shares of common stock were not included in the calculation of diluted earnings per share because the inclusion of these shares would have been antidilutive. For fiscal 2010, 193,000 incremental shares of common stock were not included in the calculation of diluted earnings per share because those shares’ exercise prices were greater than the average market price of Cabot common stock for that period.

Income Taxes

12 Months Ended

Sep. 30, 2012

Income Taxes

Note S. Income Taxes

Income (loss) from continuing operations before income taxes and equity in net earnings of affiliated companies was as follows:


	Years ended September 30
	2012		2011			2010
	(Dollars in millions)
Income (loss) from continuing operations:
Domestic	$	13	$	(25	)	$	3
Foreign		232		228			163

Total	$	245	$	203		$	166

Tax provision (benefit) on income consisted of the following:


	Years ended September 30
	2012			2011			2010
	(Dollars in millions)
U.S. federal and state:
Current	$	(1	)	$	(7	)	$	(8	)
Deferred		(8	)		(51	)		(14	)

Total		(9	)		(58	)		(22	)

Foreign:
Current		62			57			51
Deferred		2			7			1

Total		64			64			52

Total U.S. and foreign	$	55		$	6		$	30

The provision (benefit) for income taxes differed from the provision for income taxes as calculated using the U.S. statutory rate as follows:


	Years ended September 30
	2012			2011			2010
	(Dollars in millions)
Computed tax expense at the federal statutory rate	$	86		$	70		$	58
Foreign income:
Impact of taxation at different rates, repatriation and other		(29	)		(29	)		(26	)
Impact of credit for extraordinary repatriation		—			(24	)		—
Impact of investment incentive credits		—			(2	)		(2	)
Impact of foreign losses for which a current tax benefit is not available		5			6			17
State taxes, net of federal effect		—			—			—
U.S. and state benefits from research and experimentation activities		(2	)		(3	)		(1	)
Tax audit settlements		(2	)		(12	)		(15	)
Release of state tax valuation allowance		(8	)		—			—
Permanent differences, net		5			—			(1	)

Total	$	55		$	6		$	30

Significant components of deferred income taxes were as follows:


	September 30
	2012			2011
	(Dollars in millions)
Deferred tax assets:
Property, plant & equipment	$	140		$	73
Pension and other benefits		94			87
Environmental liabilities		2			3
Inventory		12			12
Deferred expenses		12			11
State taxes		5			—
Net operating loss carry-forwards		194			125
Other tax carry-forwards		73			137
Other		45			28

Subtotal		577			476
Valuation allowances		(169	)		(138	)

Total deferred tax assets	$	408		$	338


	September 30
	2012		2011
	(Dollars in millions)
Deferred tax liabilities:
Property, plant & equipment	$	191	$	28
Intangible assets		107		—
Pension and other benefits		15		2
Unremitted earnings of non-U.S. subsidiaries		11		18
Inventory		10		3
Other		10		5

Total deferred tax liabilities	$	344	$	56

In fiscal 2012, Cabot recorded $11 million of net tax benefits including an $8 million state tax benefit from the release of a valuation allowance and $3 million related to settlements and other miscellaneous tax items in the tax provision.

In fiscal 2011, Cabot recorded $38 million net tax benefits including $24 million from the repatriation of high taxed income and $14 million related to tax settlements, the renewal of the U.S. research and experimentation credit, and investment incentive tax credits in the tax provision.

In fiscal 2010, Cabot recorded $17 million of net tax benefits related to tax settlements and investment incentive tax credits and a $1 million net tax charge for other miscellaneous items in the tax provision.

Approximately $840 million of net operating loss carryforwards (“NOLs”) and $73 million of other tax credit carryforwards remain at September 30, 2012. The benefits of these carryforwards are dependent upon taxable income during the carryforward period in the jurisdictions where they arose. Accordingly, a valuation allowance has been provided where management has determined that it is more likely than not that the carryforwards will not be utilized. The following table provides detail surrounding the expiration dates of these carryforwards:


	NOLs		Credits
	(Dollars in millions)
Expiration periods
2013 to 2019	$	329	$	3
2020 and thereafter		220		47
Indefinite carryforward		291		23

Total	$	840	$	73

As of September 30, 2012, provisions have not been made for U.S. income taxes or non-U.S. withholding taxes on approximately $1,073 million of undistributed earnings of non-U.S. subsidiaries, as these earnings are considered indefinitely reinvested. Cabot continually reviews the financial position and forecasted cash flows of its U.S. consolidated group and foreign subsidiaries in order to reaffirm the Company’s intent and ability to continue to indefinitely reinvest earnings of its foreign subsidiaries or whether such earnings will need to be repatriated in the foreseeable future. Such review encompasses not only operational needs but also future capital investments. From time to time, however, our intentions relative to specific indefinitely invested amounts change because of certain unique circumstances. For example, in 2011, the Company remitted certain high taxed earnings that had previously been considered indefinitely reinvested in order to preserve a tax benefit in advance of a tax law change.

These earnings could become subject to U.S. income taxes and non-U.S. withholding taxes if they were remitted as dividends, were loaned to Cabot Corporation or a U.S. subsidiary, or if Cabot should sell its stock in the subsidiaries.

As of September 30, 2012, Cabot had net deferred tax assets of $64 million, $49 million of which are in the U.S. The net deferred tax assets were significantly reduced during fiscal 2012 due to the utilization of deferred tax assets in the sale of the Supermetals Business and the recognition of deferred tax liabilities related to the Norit acquisition. Management believes that the Company’s history of generating domestic profits provides adequate evidence that it is more likely than not that all of the U.S. net deferred tax assets will be realized in the normal course of business. U.S. income from continuing operations adjusted for U.S. permanent differences was a profit of $86 million for the year ended September 30, 2012 and was a cumulative profit of $221 million for the three years ended September 30, 2012 including dividends from non-U.S. subsidiaries.

Realization of deferred tax asset is dependent on achieving future taxable income over an extended period of time. As of September 30, 2012, the Company would need to generate approximately $403 million in cumulative future U.S. taxable income at various times over approximately 20 years to realize all of its net U.S. deferred tax assets. The Company reviews its forecast in relation to actual results and expected trends on a quarterly basis. Failure to achieve operating income targets may change the Company’s assessment regarding the recoverability of Cabot’s deferred tax assets and such change could result in a valuation allowance being recorded against some or all of the Company’s deferred tax assets. Any increase in a valuation allowance would result in additional income tax expense, lower stockholders’ equity and could have a significant impact on Cabot’s earnings in future periods.

The valuation allowances at September 30, 2012 and 2011 represent management’s best estimate of the non-realizable portion of the deferred tax assets. The valuation allowance increased in certain tax jurisdictions by $31 million, $12 million, and $6 million in fiscal years 2012, 2011 and 2010, respectively, due to the uncertainty of the ultimate realization of certain future tax benefits and net operating losses generated or acquired that are included in deferred tax assets.

Cabot has filed its tax returns in accordance with the tax laws in each jurisdiction and recognizes tax benefits for uncertain tax positions when the position would more likely than not be sustained based on its technical merits and recognizes measurement adjustments when needed. As of September 30, 2012, the total amount of unrecognized tax benefits was $55 million, of which $39 million was recorded in the Company’s Consolidated Balance Sheet and $16 million of deferred tax assets, principally related to state net operating loss carryforwards, have not been recorded. In addition, accruals of $3 million and $15 million have been recorded for penalties and interest, respectively, as of September 30, 2012 and $3 million and $14 million, respectively, as of September 30, 2011. Total penalties and interest recorded in the tax provision in the Consolidated Statement of Operations was $3 million in each of fiscal years 2012, 2011, and 2010. If the unrecognized tax benefits were recognized at a given point in time, there would be approximately $44 million favorable impact on the Company’s tax provision before consideration of the impact of the potential need for valuation allowances.

A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal 2012, 2011 and 2010 are as follows:


	Years ended September 30
	2012			2011			2010
	(Dollars in millions)
Balance at beginning of the year	$	65		$	75		$	81
Additions based on tax provisions related to the current year		4			2			6
Additions for tax positions of prior years		—			1			3
Reductions of tax provisions of prior years		(14	)		(13	)		(15	)

Balance at end of the year	$	55		$	65		$	75

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.

Cabot files U.S. federal and state and non-U.S. income tax returns in jurisdictions with varying statutes of limitations. The 2007 through 2012 tax years generally remain subject to examination by the IRS and various tax years from 2004 through 2012 remain subject to examination by the respective state tax authorities. In significant non-U.S. jurisdictions, various tax years from 2001 through 2012 remain subject to examination by their respective tax authorities. As of September 30, 2012 Cabot’s significant non-U.S. jurisdictions include Canada, China, France, Germany, Italy, Japan, Malaysia, the Netherlands, and the United Kingdom.

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.

Commitments and Contingencies

Commitments and Contingencies

12 Months Ended

Sep. 30, 2012

Note T. Commitments and Contingencies

Operating Lease Commitments

Cabot leases certain transportation vehicles, warehouse facilities, office space, machinery and equipment under cancelable and non-cancelable operating leases, most of which expire within ten years and may be renewed by Cabot. Escalation clauses, lease payments dependent on existing rates/ indices and other lease concessions are included in the minimum lease payments and such lease payments are recognized on a straight-line basis over the minimum lease term. Rent expense under such arrangements for fiscal 2012, 2011 and 2010 totaled $15 million, $19 million and $21 million, respectively. Future minimum rental commitments under non-cancelable leases are as follows:


	(Dollars in millions)
2013		22
2014		17
2015		14
2016		10
2017		5
2018 and thereafter		27

Total future minimum rental commitments	$	95

Other Long-Term Commitments

Cabot has entered into long-term purchase agreements primarily for the purchase of raw materials. Under certain of these agreements, the quantity of material being purchased is fixed, but the price paid changes as market prices change. Raw materials purchased under these agreements by segment for fiscal 2012, 2011 and 2010 are as follows:


	Years Ended September 30
	2012		2011		2010
	(Dollars in millions)
Reinforcement Materials	$	312	$	340	$	294
Performance Materials		47		18		36
Purification Solutions⁽¹⁾		4		N/A		N/A
Advanced Technologies		6		—		6
Other		1		—		—

Total	$	370	$	358	$	336

⁽¹⁾

The year ended September 30, 2012 includes two months of purchases for Norit.

Included in the table above are raw materials purchases from noncontrolling shareholders of consolidated subsidiaries. These purchases were $116 million, $134 million and $126 million during fiscal 2012, 2011 and 2010, respectively, and accounts payable and accrued liabilities owed to noncontrolling shareholders as of September 30, 2012 and 2011, were $13 million and $10 million, respectively.

The purchase commitments for these agreements are with various suppliers and purchases are expected to take place as follows:


	Payments Due by Fiscal Year
	2013		2014		2015		2016		2017		Thereafter		Total
	(Dollars in millions)
Reinforcement Materials	$	386	$	270	$	255	$	195	$	171	$	2,609	$	3,886
Performance Materials		40		33		33		32		29		256		423
Purification Solutions		21		12		8		8		8		23		80
Advanced Technologies		5		3		1		—		—		—		9

Total	$	452	$	318	$	297	$	235	$	208	$	2,888	$	4,398

The dollar value of these commitments has been estimated using current market prices. As noted above, these will fluctuate based on time of purchase.

Guarantee Agreements

Cabot has provided certain indemnities pursuant to which it may be required to make payments to an indemnified party in connection with certain transactions and agreements. In connection with certain acquisitions and divestitures, Cabot has provided routine indemnities with respect to such matters as environmental, tax, insurance, product and employee liabilities. In connection with various other agreements, including service and supply agreements, Cabot has provided indemnities for certain contingencies and routine warranties. Cabot is unable to estimate the maximum potential liability for these types of indemnities as a maximum obligation is not explicitly stated in most cases and the amounts, if any, are dependent upon the outcome of future contingent events, the nature and likelihood of which cannot be reasonably estimated. The duration of the indemnities vary, and in many cases are indefinite. Cabot has not recorded any liability for these indemnities in the consolidated financial statements, except as otherwise disclosed.

Self-Insurance and Retention for Certain Contingencies

The Company is partially self-insured for certain third-party liabilities globally, as well as workers’ compensation and employee medical benefits in the United States. The third-party and workers’ compensation liabilities are managed through a wholly-owned insurance captive and the related liabilities are included in the consolidated financial statements. The employee medical obligations are managed by a third-party provider and the related liabilities are included in the consolidated financial statements. To limit Cabot’s potential liabilities for these risks, however, the Company purchases insurance from third-parties that provides individual and aggregate stop-loss protection. The aggregate self-insured liability in fiscal 2012 for combined U.S. third-party liabilities and U.S. workers’ compensation was $5 million, and the retention for medical costs in the United States is at most $200,000 per person per annum.

Contingencies

Cabot is a defendant, or potentially responsible party, in various lawsuits and environmental proceedings wherein substantial amounts are claimed or at issue.

Environmental Matters

As of September 30, 2012 and 2011, Cabot had $7 million and $6 million, respectively, reserved for environmental matters primarily related to divested businesses. In fiscal 2012 and 2011, there was $3 million and $2 million in accrued liabilities and $4 million and $4 million in other liabilities, respectively, in the Consolidated Balance Sheets for environmental matters. 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. Charges for environmental expense were $3 million, $1 million, and $3 million in fiscal 2012, 2011 and 2010, respectively. Cash payments were $2 million, $2 million and $1 million during fiscal 2012, 2011 and 2010, respectively, related to these environmental matters.

The operation and maintenance component of the $7 million reserve for environmental matters was $4 million. Cabot expects to make payments of $3 million in fiscal 2013, $1 million in each of fiscal 2014 through fiscal 2016, less than $1 million in 2017 and a total of $1 million thereafter.

When deemed appropriate, the Company discounts its liability for environmental matters. A weighted average risk free rate of 1% was used for the environmental liability at September 30, 2012. The book value of the liabilities will be accreted up to the undiscounted liability value through interest expense over the expected cash flow period. The accreted interest expense was less than $1 million for each of fiscal 2012, 2011 and 2010.

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 these discussions, it is anticipated that Cabot will invest significant funds for capital improvements to install technology controls at certain U.S. facilities over a number of years, and pay a civil penalty to EPA to resolve the matter. The costs for these technology control devices will likely be capital in nature and impact the Consolidated Statement of Operations over the depreciable lives of the associated assets.

Respirator Liabilities

Cabot has exposure in connection with a safety respiratory products business that a subsidiary acquired from American Optical Corporation (“AO”) in an April 1990 asset purchase transaction. The subsidiary manufactured respirators under the AO brand and disposed of that business in July 1995. In connection with its acquisition of the business, the subsidiary agreed, in certain circumstances, to assume a portion of AO’s liabilities, including costs of legal fees together with amounts paid in settlements and judgments, allocable to AO respiratory products used prior to the 1990 purchase by the Cabot subsidiary. In exchange for the subsidiary’s assumption of certain of AO’s respirator liabilities, AO agreed to provide to the subsidiary the benefits of: (i) AO’s insurance coverage for the period prior to the 1990 acquisition and (ii) a former owner’s indemnity of AO holding it harmless from any liability allocable to AO respiratory products used prior to May 1982.

Generally, these respirator liabilities involve claims for personal injury, including asbestosis, silicosis and coal worker’s pneumoconiosis, allegedly resulting from the use of respirators that are claimed to have been negligently designed or labeled. Neither Cabot, nor its past or present subsidiaries, at any time manufactured asbestos or asbestos-containing products. At no time did this respiratory product line represent a significant portion of the respirator market.

The subsidiary transferred the business to Aearo Corporation (“Aearo”) in July 1995. Cabot agreed to have the subsidiary retain certain liabilities associated with exposure to asbestos and silica while using respirators prior to the 1995 transaction so long as Aearo paid, and continues to pay, Cabot an annual fee of $400,000. Aearo can discontinue payment of the fee at any time, in which case it will assume the responsibility for and indemnify Cabot against those liabilities which Cabot’s subsidiary had agreed to retain. The Company anticipates that it will continue to receive payment of the $400,000 fee from Aearo and thereby retain these liabilities for the foreseeable future. Cabot has no liability in connection with any products manufactured by Aearo after 1995.

In addition to Cabot’s subsidiary and as described above, other parties are responsible for significant portions of the costs of respirator liabilities, leaving Cabot’s subsidiary with a portion of the liability in only some of the pending cases. These parties include Aearo, AO, AO’s insurers, and another former owner and its insurers (collectively, with the Company’s subsidiary, the “Payor Group”).

As of both September 30, 2012 and 2011, there were approximately 42,000 claimants in pending cases asserting claims against AO in connection with respiratory products. Cabot has contributed to the Payor Group’s defense and settlement costs with respect to a percentage of pending claims depending on several factors, including the period of alleged product use. In order to quantify Cabot’s estimated share of liability for pending and future respirator liability claims, Cabot has engaged, through counsel, the assistance of Hamilton, Rabinovitz & Alschuler, Inc. (“HR&A”), a leading consulting firm in the field of tort liability valuation. The methodology used by HR&A addresses the complexities surrounding Cabot’s potential liability by making assumptions about future claimants with respect to periods of asbestos, silica and coal mine dust exposure and respirator use. Using those and other assumptions, HR&A estimates the number of future asbestos, silica and coal mine dust claims that will be filed and the related costs that would be incurred in resolving both currently pending and future claims. On this basis, HR&A then estimates the net present value of the share of these liabilities that reflect Cabot’s period of direct manufacture and Cabot’s contractual obligations. Based on the HR&A estimates, Cabot has recorded on a discounted basis a $13 million reserve ($17 million on an undiscounted basis) to cover its estimated share of liability for pending and future respirator claims. The Company made payments related to its respirator liability of $2 million in fiscal 2012, $5 million in fiscal 2011 and $2 million in fiscal 2010.

The Company’s current estimate of the cost of its share of existing and future respirator liability claims is based on facts and circumstances existing at this time. Developments that could affect the Company’s estimate include, but are not limited to, (i) significant changes in the number of future claims, (ii) changes in the rate of dismissals without payment of pending silica and non-malignant asbestos claims, (iii) significant changes in the average cost of resolving claims, (iv) significant changes in the legal costs of defending these claims, (v) changes in the nature of claims received, (vi) changes in the law and procedure applicable to these claims, (vii) the financial viability of members of the Payor Group, (viii) a change in the availability of AO’s insurance coverage or the indemnity provided by AO’s former owner, (ix) changes in the allocation of costs among the Payor Group, and (x) a determination that the assumptions used to estimate the Company’s share of liability are inaccurate. The Company cannot determine the impact of these potential developments on its current estimate of its share of liability for these existing and future claims. Accordingly, the actual amount of these liabilities for existing and future claims could be different than the reserved amount.

The $13 million liability for respirator claims is recognized on a discounted basis using a discount rate of 5%, which represents management’s best estimate of the risk free rate to apply to the cash flow payments of the liability that are projected through 2065. The total expected aggregate undiscounted amount of future payments is $17 million. Cabot estimates payments of approximately $2 million, $2 million, $2 million, $2 million, and $1 million in fiscal 2013, 2014, 2015, 2016 and 2017, respectively, and a total of $8 million in fiscal 2018 through 2065. The book value of the liabilities will be accreted up to the undiscounted liability value through interest expense over the expected cash flow period, which was less than $1 million in fiscal 2012. Cash payments were $2 million in fiscal 2012, $5 million in 2011 and $2 million in 2010 related to this liability. If the timing of Cabot’s actual payments made for respirator claims differs significantly from the Company’s estimated payment schedule, and the Company determines that it can no longer reasonably predict the timing of such payments, Cabot then could be required to record the reserve amount on an undiscounted basis on its consolidated balance sheets, causing an immediate impact to earnings.

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 are not expected in the aggregate to have a material adverse effect on the Company’s financial position.

The entire disclosure for commitments and contingencies.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 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 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-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.

Concentration of Credit Risk

Concentration of Credit Risk

12 Months Ended

Sep. 30, 2012

Note U. Concentration of Credit Risk

Credit risk represents the loss that would be recognized if counterparties failed to completely perform as contracted. Financial instruments that subject Cabot to credit risk consist principally of cash and cash equivalents, investments, trade receivables, notes receivable from sale of business and derivatives. Cabot maintains financial instruments with major banks and financial institutions. The Company has not experienced any material credit losses related to these instruments held at these financial institutions. Furthermore, concentrations of credit risk exist for groups of customers when they have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions.

No customer individually represented 10% or more of consolidated net sales for fiscal 2012 and 2011. During fiscal 2010, The Goodyear Tire and Rubber Company accounted for approximately 12% of Cabot’s annual consolidated net sales.

Tire manufacturers comprise a significant portion of Cabot’s trade receivable balance. The accounts receivable balance for these significant customers are as follows:


	September 30
	2012		2011
	(Dollars in millions)
Tire manufacturers	$	346	$	318

Cabot has not experienced significant losses in the past from these customers. Cabot monitors its exposure to customers to manage potential credit losses.

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6327-108592

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13531-108611

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6404-108592

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6442-108592

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 18
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6351-108592

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 94-6
-Paragraph 21, 22, 24
-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 15A
-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 & Geographic Area

Financial Information by Segment & Geographic Area

12 Months Ended

Sep. 30, 2012

Note V. Financial Information by Segment & Geographic Area

Segment Information

After the sale of the Company’s Supermetals Business and acquisition of Norit, management made changes in the composition of its segments and renamed them with names that are more descriptive of the underlying businesses. With these changes, Cabot’s four business segments are: Reinforcement Materials (formerly the Core Segment); Performance Materials (formerly the Performance Segment); Advanced Technologies (the combination of the former New Business and Specialty Fluids Segments); and Purification Solutions (the newly acquired Norit business).

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 operating profit (loss) before interest and taxes (“Segment EBIT”) is the measure that is most consistently used and is, therefore, the measure presented for each segment in the financial information by segment table below on the line entitled Income (loss) before taxes. Segment EBIT excludes certain items, meaning items considered by management to be unusual and not representative of segment results. In addition, Segment EBIT includes Equity in net income of affiliated companies, net of tax, the full operating results of a contractual joint venture in Purification Solutions, royalties paid by equity affiliates and Net income attributable to noncontrolling interests, net of tax, but exclude Interest expense, foreign currency transaction gains and losses, interest income, dividend income, unearned revenue, the effects of LIFO accounting for inventory, and unallocated general and corporate costs. Segment assets exclude cash, short-term investments, cost investments, income taxes receivable, deferred taxes and headquarters’ assets, which are included in unallocated and other. Expenditures for additions to long-lived assets include total equity and other investments (including available-for-sale securities), property, plant and equipment, intangible assets and assets held for rent.

Reinforcement Materials

Rubber blacks are used in tires and industrial products. These products have traditionally been used in the tire industry as a rubber reinforcing agent and are also used as a performance additive. In industrial products such as hoses, belts, extruded profiles and molded goods, rubber blacks are used to improve the physical performance of the product.

Performance Materials

Performance Materials is comprised of two businesses that sell the following products: specialty grades of carbon black and thermoplastic concentrates and compounds (the Specialty Carbons and Compounds Business); and fumed silica, fumed alumina and dispersions thereof (the Fumed Metal Oxides Business). The net sales from each of these businesses for fiscal 2012, 2011 and 2010 are as follows:


	Years Ended September 30
	2012		2011		2010
	(Dollars in millions)
Specialty Carbons and Compounds	$	664	$	626	$	531
Fumed Metal Oxides		250		254		252

Total Performance Materials	$	914	$	880	$	783

In each business, Cabot designs, manufactures and sells materials that deliver performance in a broad range of customer applications across the automotive, construction and infrastructure, and electronics and consumer products sectors.

Cabot’s specialty grades of carbon black are used to impart color, provide rheology control, enhance conductivity and static charge control, provide UV protection, enhance mechanical properties, and provide chemical flexibility through surface treatment. These products are used in a wide variety of applications, such as inks, coatings, cables, pipes, toners and electronics. In addition, Cabot manufactures and sources thermoplastic concentrates and compounds that are marketed to the plastics industry.

Fumed silica is an ultra-fine, high-purity particle used as a reinforcing, thickening, abrasive, thixotropic, suspending or anti-caking agent in a wide variety of products produced for the automotive, construction, microelectronics, and consumer products industries. These products include adhesives, sealants, cosmetics, inks, toners, silicone rubber, coatings, polishing slurries and pharmaceuticals. Fumed alumina, also an ultra-fine, high-purity particle, is used as an abrasive, absorbent or barrier agent in a variety of products, such as inkjet media, lighting, coatings, cosmetics and polishing slurries.

Advanced Technologies

Advanced Technologies is comprised of the Inkjet Colorants, Aerogel, Security Materials, Elastomer Composites and Specialty Fluids Businesses. The net sales from each of these businesses are as follows:


	Years Ended September 30
	2012		2011		2010
	(Dollars in millions)
Inkjet Colorants	$	66	$	65	$	57
Aerogel		18		24		24
Security Materials		9		11		7
Elastomer Composites		23		17		17
Specialty Fluids		94		69		81

Total Advanced Technologies	$	210	$	186	$	186

The Inkjet Colorants Business produces and sells aqueous inkjet colorants primarily to the inkjet printing market. The Company’s inkjet colorants are high-quality pigment-based black and other colorant dispersions manufactured by surface treating specialty grades of carbon black and other pigments. The dispersions are used in aqueous inkjet inks to impart color (optical density or chroma) with improved durability (waterfastness, lightfastness and rub resistance) while maintaining high printhead reliability. Cabot’s inkjet colorants are produced for various inkjet printing applications including small office and home office, corporate office, and commercial printing, as well as for other niche applications that require a high level of dispersibility and colloidal stability.

Aerogel is a hydrophobic, silica-based particle with a high surface area that is used in a variety of thermal insulation and specialty chemical applications. In the construction industry, the product is used in insulative composite building products and translucent skylight, window, wall and roof systems for insulating eco-daylighting applications. In the oil and gas industry, aerogel is used to insulate subsea pipelines. In the specialty chemicals industry, the product is used to provide matte finishing, insulating and thickening properties for use in a variety of applications. The Company continues to focus on application and market development activities for use of aerogel in these and other new applications.

The principal area of commercial focus for the Security Materials Business is in developing covert taggants for a broad range of anti-counterfeiting security applications, including brand security, currency, tax stamps, identification and fuel markers. Covert taggants are invisible, unique markers that are added to products to determine their authenticity through the use of custom detectors or readers. The Company’s taggants are manufactured using a proprietary process, which produces highly uniform materials with unique signatures.

The Elastomer Composites Business has developed elastomer composite products that are compounds of natural latex rubber and carbon black made by a patented liquid phase process. The Company believes that these compounds improve abrasion/wear resistance, reduce fatigue and reduce rolling resistance compared to natural rubber/carbon black compounds made by conventional methods. These products are targeted for tire, defense, mining, automotive, and aerospace applications.

The Specialty Fluids Business principally produces and markets cesium formate as a drilling and completion fluid for use primarily in high pressure and high temperature oil and gas well construction. Cesium formate products are solids-free, high-density fluids that have a low viscosity, enabling safe and efficient well construction and workover operations. The fluid is resistant to high temperatures, minimizes damage to producing reservoirs and is readily biodegradable in accordance with testing guidelines set by the Organization for Economic Cooperation and Development. In a majority of applications, cesium formate is blended with other formates or products. Income from continuing operations before taxes for the Specialty Fluids Business was $44 million, $22 million, and $35 million in fiscal 2012, 2011, and 2010, respectively.

Purification Solutions

The Company’s activated carbon products are used for the purification of water, air, food and beverages, pharmaceuticals and other liquids and gases. In gas and air applications, one of the uses of activated carbon is for the removal of mercury in flue gas streams. In addition, Purification Solutions’ products are used as a catalyst or catalyst carrier; as a chemical carrier in slow release applications (such as delayed release pharmaceuticals); as either a colorant or a decolorizing agent in the production of products for food and beverage applications; and in the gold mining industry. In addition to activated carbon production and reactivation, the Company also provides activated carbon solutions through on-site equipment and services, including delivery systems for activated carbon injection in coal-fired utilities, mobile water filter units and carbon reactivation services.

Financial information by segment is as follows:


	Reinforcement Materials		Performance Materials		Advanced Technologies		Purification Solutions		Segment Total		Unallocated and Other^(1), (3)			Consolidated Total
	(Dollars in millions)
Years Ended September 30
2012
Revenues from external customers⁽²⁾	$	2,019	$	914	$	210	$	61	$	3,204	$	96		$	3,300
Depreciation and amortization		82		47		13		8		150		6			156
Equity in earnings of affiliated companies		9		1		—		1		11		—			11
Income (loss) from continuing operations before taxes⁽³⁾		227		128		49		5		409		(164	)		245
Assets⁽⁴⁾		1,527		717		209		1,433		3,886		513			4,399
Total expenditures for additions to long-lived assets⁽⁵⁾		163		87		16		350		616		6			622
2011
Revenues from external
customers⁽²⁾	$	1,952	$	880	$	186	$	—	$	3,018	$	84		$	3,102
Depreciation and amortization		80		37		14		—		131		8			139
Equity in earnings of affiliated companies		7		1		—		—		8		—			8
Income (loss) from continuing operations before taxes⁽³⁾		183		140		31		—		354		(151	)		203
Assets⁽⁴⁾		1,509		661		191		—		2,361		780			3,141
Total expenditures for additions to long-lived assets⁽⁵⁾		126		99		10		—		235		6			241
2010
Revenues from external customers⁽²⁾	$	1,660	$	783	$	186	$	—	$	2,629	$	87		$	2,716
Depreciation and amortization		74		35		12		—		121		16			137
Equity in earnings of affiliated companies		6		1		—		—		7		—			7
Income (loss) from continuing operations before taxes⁽³⁾		139		125		50		—		314		(148	)		166
Assets⁽⁴⁾		1,277		544		188		—		2,009		877			2,886
Total expenditures for additions to long-lived assets⁽⁵⁾		62		38		4		—		104		3			107

⁽¹⁾	Unallocated and other includes certain items and eliminations necessary to reflect management’s reporting of operating segment results. These items are reflective of the segment reporting presented to the Chief Operating Decision Maker.

⁽²⁾	Unallocated and other reflects royalties paid by equity affiliates, external shipping and handling fees, and the impact of the corporate adjustment for unearned revenue.


	Years Ended September 30
	2012		2011			2010
	(Dollars in millions)
Royalties paid by equity affiliates, other operating revenues, and the impact of the corporate adjustment for unearned revenue…………………………	$	11	$	(2	)	$	7
Shipping and handling fees		85		86			80

Total	$	96	$	84		$	87

⁽³⁾	Income (loss) from continuing operations before taxes for Unallocated and Other includes:


	Years Ended September 30
	2012			2011			2010
	(Dollars in millions)
Interest expense	$	(46	)	$	(39	)	$	(40	)
Certain items^(a)		(51	)		(19	)		(53	)
Equity in net earnings of affiliated companies^(b)		(11	)		(8	)		(7	)
Unallocated corporate costs^(c)		(56	)		(53	)		(48	)
General unallocated (expense) income^(d)		—			(32	)		—

Total	$	(164	)	$	(151	)	$	(148	)

^(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 fiscal 2012 primarily include $17 million related to global restructuring activities, $26 million for acquisition related charges (consisting of $14 million of legal and professional fees disclosed in Note C, $3 million for certain other one-time integration costs and $9 million of additional charges related to acquisition accounting adjustments for the acquired inventory), $4 million for environmental and legal reserves, and a $4 million addition in the reserve for respirator claims. Certain items, pre-tax, for fiscal 2011 primarily include charges for global restructuring activities discussed in Note P. Certain items, pre-tax, for fiscal 2010 include $46 million related to global restructuring activities, $3 million for environmental reserves and legal settlements, $2 million long-lived asset impairment of land related to a former carbon black site, and a $2 million addition in the reserve for respirator claims.

^(b)

Equity in net income of affiliated companies is included in segment EBIT and is removed from Unallocated and other to reconcile to income (loss) from operations before taxes.

^(c)

Unallocated corporate costs are not controlled by the segments and primarily benefit corporate interests.

^(d)

General unallocated (expense) income consists of gains (losses) arising from foreign currency transactions, net of other foreign currency risk management activities, the impact of accounting for certain inventory on a LIFO basis, and the profit or loss related to the corporate adjustment for unearned revenue. Additionally, for fiscal 2011, this amount included a $3 million charge related to a change in the net worth tax regulations in Colombia, and $3 million related to a portion of the benefit from a legal judgment.

⁽⁴⁾	Unallocated and Other assets includes cash, marketable securities, cost investments, income taxes receivable, deferred taxes, headquarters’ assets, and current and non-current assets held for sale.

⁽⁵⁾	Expenditures for additions to long-lived assets include total equity and other investments (including available-for-sale securities), property, plant and equipment, intangible assets and assets held for rent.

Geographic Information

Sales are attributed to the United States and to all foreign countries based on the location from which the sale originated. Revenues from external customers and long-lived assets attributable to an individual country, other than the United States, Japan and China, were not material for disclosure.

Revenues from external customers and long-lived asset information by geographic area are summarized as follows:


	United States		Japan		China		Other Foreign Countries		Consolidated Total
	(Dollars in millions)
Years Ended September 30,
2012
Revenues from external customers	$	695	$	330	$	543	$	1,732	$	3,300
Net property, plant and equipment	$	486	$	54	$	305	$	707	$	1,552
2011
Revenues from external customers	$	589	$	307	$	554	$	1,652	$	3,102
Net property, plant and equipment	$	233	$	30	$	274	$	499	$	1,036
2010
Revenues from external customers	$	546	$	248	$	458	$	1,464	$	2,716
Net property, plant and equipment	$	227	$	41	$	203	$	504	$	975

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.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-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.

Unaudited Quarterly Financial Information

Unaudited Quarterly Financial Information

12 Months Ended

Sep. 30, 2012

Note W. Unaudited Quarterly Financial Information

Unaudited financial results by quarter for fiscal 2012 and 2011 are summarized below.


	Quarter Ended
	December			March			June			September			Year
	(Dollars in millions, except per share amounts)
Fiscal 2012
Consolidated Net Income
Net sales and other operating revenues	$	762		$	844		$	846		$	848		$	3,300

Gross profit		143			173			175			157			648
Selling and administrative expenses		65			66			68			86			285
Research and technical expenses		17			20			17			19			73

Income from operations		61			87			90			52			290
Net interest expense and other charges		(6	)		(11	)		(12	)		(16	)		(45	)

Income from continuing operations before taxes		55			76			78			36			245
Provision for income taxes		(16	)		(23	)		(16	)		—			(55	)
Equity in earnings of affiliated companies		1			3			4			3			11
Income from operations of discontinued operations, net of tax		11			189			4			1			205

Net income		51			245			70			40			406
Net income attributable to noncontrolling interests, net of tax		5			5			4			4			18

Net income attributable to Cabot Corporation	$	46		$	240		$	66		$	36		$	388

Income per share - diluted:
Income from continuing operations	$	0.55		$	0.78		$	0.96		$	0.54		$	2.83
Income from discontinued operations		0.16			2.92			0.06			0.02			3.16

Net income attributable to Cabot Corporation	$	0.71		$	3.70		$	1.02		$	0.56		$	5.99


	Quarter Ended
	December			March			June			September			Year
	(Dollars in millions, except per share amounts)
Fiscal 2011
Consolidated Net Income
Net sales and other operating revenues	$	694		$	739		$	836		$	833		$	3,102

Gross profit		131			134			152			141			558
Selling and administrative expenses		63			62			61			63			249
Research and technical expenses		15			18			16			17			66

Income from operations		53			54			75			61			243
Net interest expense and other charges		(7	)		(6	)		(13	)		(14	)		(40	)

Income from continuing operations before taxes		46			48			62			47			203
Benefit (provision) for income taxes		15			(9	)		(10	)		(2	)		(6	)
Equity in earnings of affiliated companies		3			1			2			2			8
Income from operations of discontinued operations, net of tax		16			16			13			8			53

Net income		80			56			67			55			258
Net income attributable to noncontrolling interests, net of tax		5			5			7			5			22

Net income attributable to Cabot Corporation	$	75		$	51		$	60		$	50		$	236

Income per share - diluted:
Income from continuing operations	$	0.88		$	0.52		$	0.73		$	0.64		$	2.77
Income from discontinued operations		0.25			0.24			0.19			0.12			0.80

Net income attributable to Cabot Corporation	$	1.13		$	0.76		$	0.92		$	0.76		$	3.57

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

Principles of Consolidation

Significant Accounting Policies (Policies)

12 Months Ended

Sep. 30, 2012

Principles of Consolidation

Cash and Cash Equivalents

Cash and Cash Equivalents

Inventories

Inventories

Investments

Investments

Property, Plant and Equipment

Property, Plant and Equipment

Intangible Assets and Goodwill

Intangible Assets and Goodwill

Assets Held for Rent

Assets Held for Rent

Assets held for rent represent Specialty Fluids cesium formate product that will be rented to customers in the normal course of business. Assets held for rent are stated at average cost.

Assets Held for Sale

Assets Held for Sale

Asset Retirement Obligations

Asset Retirement Obligations

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

Foreign Currency Translation

Foreign Currency Translation

Financial Instruments

Financial Instruments

Revenue Recognition

Revenue Recognition

Shipping and handling charges related to sales transactions are recorded as sales revenue when billed to customers or included in the sales price.

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


	Years Ended September 30
	2012			2011			2010
Reinforcement Materials		63	%		65	%		63	%
Performance Materials		28	%		29	%		30	%
Advanced Technologies		7	%		6	%		7	%
Purification Solutions⁽¹⁾		2	%		N/A			N/A

⁽¹⁾	Consists of two months of revenue for Norit, which the Company acquired on July 31, 2012.

Cost of Sales

Cost of Sales

Accounts and Notes Receivable

Accounts and Notes Receivable

Stock-based Compensation

Stock-based Compensation

Selling and Administrative Expenses

Selling and Administrative Expenses

Selling and administrative expenses consist of salaries and fringe benefits of sales and office personnel, general office expenses and other expenses not directly related to manufacturing operations.

Research and Technical Expenses

Research and Technical Expenses

Research and technical expenses include salaries, equipment and material expenditures, and contractor fees and are expensed as incurred.

Income Taxes

Income Taxes

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

Environmental Costs

Environmental Costs

Use of Estimates

Use of Estimates

Significant Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2012

Segment Reporting Revenue Percentage

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


	Years Ended September 30
	2012			2011			2010
Reinforcement Materials		63	%		65	%		63	%
Performance Materials		28	%		29	%		30	%
Advanced Technologies		7	%		6	%		7	%
Purification Solutions⁽¹⁾		2	%		N/A			N/A

⁽¹⁾	Consists of two months of revenue for Norit, which the Company acquired on July 31, 2012.

Acquisition of Norit (Tables)

12 Months Ended

Sep. 30, 2012

Components and Allocation of the Purchase Price

The components and preliminary allocation of the purchase price consist of the following amounts:


	(in millions)
Current assets	$	207
Property, plant and equipment		385
Other non-current assets		72
Intangible assets		325
Goodwill		432
Current liabilities		(98	)
Deferred non-current tax liabilities		(176	)
Other non-current liabilities		(34	)

Total purchase price	$	1,113

Pro Forma Net Sales and Results of Operations


	September 30
	2012 (unaudited)		2011 (unaudited)
	(in millions, except per share amounts)
Net sales	$	3,585	$	3,449
Income from continuing operations⁽¹⁾		209		226
Income from continuing operations per common share:
Basic	$	3.27	$	3.47
Diluted	$	3.23	$	3.42

⁽¹⁾	Norit recognized a pre-tax gain of approximately $33 million in other income during its year ended December 31, 2011 in connection with a legal settlement.

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

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

Discontinued Operations (Tables)

12 Months Ended

Sep. 30, 2012

Components of Discontinued Operations

The following table summarizes the results from discontinued operations:


	Years Ended September 30
	2012			2011			2010
	(Dollars in millions)
Net sales and other operating revenues	$	46		$	201		$	177

Income from operations before income taxes		21			84			42
Provision for income taxes on operations		(7	)		(31	)		(16	)

Income from operations, net of tax	$	14		$	53		$	26

Gain on sale of discontinued operations		300			—			—
Provision for income taxes on gain on sale		(109	)		—			—

Gain on sale of discontinued operations, net of tax		191			—			—

Income from discontinued operations, net of tax	$	205		$	53		$	26

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

Components of Discontinued Operations

The following table summarizes the assets and the liabilities held for sale in the Company’s Consolidated Balance Sheet as of September 30, 2011:


	(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

Total noncurrent assets held for sale	$	39

Liabilities
Total current liabilities held for sale	$	12

Total noncurrent liabilities held for sale	$	6

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.

Components of Company's Inventories

Inventories (Tables)

12 Months Ended

Sep. 30, 2012

Inventories, net of LIFO reserves, are as follows:


	September 30
	2012		2011
	(Dollars in millions)
Raw materials	$	131	$	120
Work in process		5		3
Finished goods		351		233
Other		46		37

Total	$	533	$	393

Property, Plant and Equipment (Tables)

12 Months Ended

Sep. 30, 2012

Components of Property, Plant and Equipment

Property, plant and equipment is summarized as follows:


	September 30
	2012			2011
	(Dollars in millions)
Land and land improvements	$	167		$	73
Buildings		495			479
Machinery and equipment		2,379			2,076
Other		226			162
Construction in progress		244			177

Total property, plant and equipment		3,511			2,967
Less: accumulated depreciation		(1,959	)		(1,931	)

Net property, plant and equipment	$	1,552		$	1,036

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Sep. 30, 2012

Schedule of Goodwill Balances

The carrying amount of goodwill attributable to each reportable segment with goodwill balances and the changes in those balances during the years ended September 30, 2012 and 2011 are as follows:


	Reinforcement Materials		Performance Materials		Advanced Technologies		Purification Solutions		Total
	(Dollars in millions)
Balance at September 30, 2010	$	27	$	11	$	1	$	—	$	39
Foreign currency translation adjustment and other		—		—		1		—		1

Balance at September 30, 2011		27		11		2		—		40
Goodwill acquired⁽¹⁾		—		—		—		432		432
Foreign currency translation adjustment		1		—		—		7		8

Balance at September 30, 2012	$	28	$	11	$	2	$	439	$	480

⁽¹⁾	Goodwill acquired relates to the acquisition of Norit in fiscal 2012.

Schedule of Intangible Assets

The following table provides information regarding the Company’s intangible assets:


	Years Ended September 30
	2012							2011
	Gross Carrying Value		Accumulated Amortization			Net Intangible Assets		Gross Carrying Value		Accumulated Amortization			Net Intangible Assets
	(Dollars in millions)
Intangible assets with finite lives
Developed technology⁽¹⁾	$	151	$	(2	)	$	149	$	—	$	—		$	—
Customer relationships⁽¹⁾		121		(1	)		120		—		—			—
Other intangible assets		6		(3	)		3		5		(2	)		3

Total intangible assets, finite lives	$	278	$	(6	)	$	272	$	5	$	(2	)	$	3
Trademarks, indefinite lives⁽¹⁾		58		—			58		—		—			—

Total intangible assets	$	336	$	(6	)	$	330	$	5	$	(2	)	$	3

⁽¹⁾	Developed technology, Customer relationships and Trademarks relate to the acquisition of Norit in fiscal 2012.

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

Components of Accounts Payable and Accrued Liabilities

Accounts Payable, Accrued Liabilities and Other Liabilities (Tables)

12 Months Ended

Sep. 30, 2012

Accounts payable and accrued liabilities included in current liabilities consist of the following:


	September 30
	2012		2011
	(Dollars in millions)
Accounts payable	$	425	$	330
Accrued employee compensation		46		44
Accrued severance and restructuring		5		11
Other accrued liabilities		130		76

Total	$	606	$	461

Components of Other Long-Term Liabilities

Other long-term liabilities consist of the following:


	September 30
	2012		2011
	(Dollars in millions)
Employee benefit plan liabilities	$	190	$	161
Non-current tax liabilities		53		50
Financial instrument liabilities		26		39
Other accrued liabilities		45		49

Total	$	314	$	299

Debt and Other Obligations (Tables)

12 Months Ended

Sep. 30, 2012

Schedule of Long-Term Obligations

The Company’s long-term obligations, the calendar year in which they mature and their respective interest rates are summarized below:


	September 30
	2012			2011
	(Dollars in millions)
Variable Rate Debt:
$750 million Revolving Credit Facility, expires 2016	$	189		$	—
Chinese Renminbi Notes, due through 2016, 5.40%—7.32%		11			15

Total variable rate debt		200			15
Fixed Rate Debt:
5% Notes due 2016	$	300		$	300
2.55% Notes due 2018		250			—
3.7% Notes due 2022		350			—
Medium Term Notes:
Notes due 2012, 7.70%—8.28%	$	—		$	30
Notes due 2018, 7.42%		30			30
Notes due 2022, 8.346%—8.47%		15			15
Note due 2027, 6.57%—7.28%		8			8

Total Medium Term Notes		53			83
Eurobond, due 2013, 5.25%		177			178
ESOP Note, due 2013, 8.29%		8			14
Chinese Renminbi Notes, due 2014, 6.10%—6.65%		5			5
Other, due 2027, 2%		—			5

Total fixed rate debt		1,143			585
Capital lease obligations, due through 2040		16			15
Unamortized debt discount		(2	)		(2	)

Total debt		1,357			613
Less current portion of long-term debt		(185	)		(57	)

Total long-term debt	$	1,172		$	556

Schedule of Future Years Payment

The aggregate principal amounts of long-term debt and capital lease obligations due in each of the five years from fiscal 2013 through 2017 are as follows:


Fiscal Years Ending	Principal payments on long term debt		Payments on Capital Lease Obligations		Total
	(Dollars in millions)
2013	$	182	$	1	$	183
2014		17		1		18
2015		—		1		1
2016		189		1		190
2017		300		1		301
Thereafter		653		11		664

Total	$	1,341	$	16	$	1,357

Fair Value Measurements (Tables)

12 Months Ended

Sep. 30, 2012

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

The derivatives presented in the table below are presented by derivative type, net of the legal right to offset derivative settlements by each counterparty:


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

Total assets at fair value	$	16	$	17

Liabilities at fair value:
Derivatives relating to foreign currency⁽²⁾	$	28	$	41
Hedged long-term debt⁽³⁾		36		61

Total liabilities at fair value	$	64	$	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)

12 Months Ended

Sep. 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 September 30, 2012 and 2011 are as follows:


	2012				2011
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(Dollars in millions)
Assets:
Cash and cash equivalents	$	120	$	120	$	286	$	286
GAM Promissory Notes and Inventory Note		252		252		—		—
Accounts and notes receivable		687		687		659		659
Derivative instruments		—		—		1		1
Liabilities:
Notes payable to banks		62		62		86		86
Accounts payable and accrued liabilities		606		606		461		461
Long-term debt—fixed rate		1,141		1,221		585		633
Long-term debt—floating rate		200		200		15		15
Capital lease obligations		16		16		15		15
Derivative instruments		26		26		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 Derivatives Fair Value Interest Rate

Financial Instruments (Tables)

12 Months Ended

Sep. 30, 2012

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


		Notional Amount
Description	Borrowing	September 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	Fair Value

Foreign Currency Risk Management

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


Description	Borrowing	Notional Amount		Hedge Designation
Description	Borrowing	September 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 106 million	USD 54 million	No designation

Forward Foreign Currency Contracts ⁽¹⁾	N/A	USD 3 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.

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


Fair Value of Derivative Instruments	Consolidated Balance Sheet Caption	September 30, 2012		September 30, 2011
		(Dollars in millions)
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
Other⁽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	$	28	$	41
Other⁽²⁾	Prepaid expenses and other current assets		1		1

Total derivatives not designated as hedges		$	29	$	42

Total Liability Derivatives		$	29	$	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” and noncurrent “Other assets” in the Consolidated Balance Sheets.

Employee Benefit Plans (Tables)

12 Months Ended

Sep. 30, 2012

Change in Benefit Obligations and Change in Plan Assets

The following provides information about benefit obligations, plan assets, the funded status and weighted-average assumptions of the defined benefit pension and postretirement benefit plans:


	Years Ended September 30
	2012						2011						2012						2011
	Pension Benefits												Postretirement Benefits
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign			U.S.			Foreign
	(Dollars in millions)
Change in Benefit Obligations:
Benefit obligation at beginning of year	$	147		$	236		$	143		$	241		$	64		$	15		$	69		$	15
Service cost		5			7			5			6			1			—			1			—
Interest cost		7			11			6			11			2			1			2			1
Plan participants’ contribution		—			1			—			1			—			—			—			—
Foreign currency exchange rate changes		—			5			—			1			—			1			—			—
Loss (gain) from changes in actuarial assumptions		12			38			2			(9	)		1			2			(1	)		(1	)
Benefits paid⁽¹⁾		(11	)		(11	)		(9	)		(16	)		(5	)		(1	)		(5	)		—
Plan amendments		—			—			—			—			—			—			(2	)		—
Settlements or curtailment gain		(1	)		(4	)		—			(1	)		(1	)		—			—			—
Acquisition of Norit		36			140			—			—			2			—			—			—
Other		—			(1	)		—			2			—			—			—			—

Benefit obligation at end of year	$	195		$	422		$	147		$	236		$	64		$	18		$	64		$	15


	Years Ended September 30
	2012						2011						2012						2011
	Pension Benefits												Postretirement Benefits
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign			U.S.			Foreign
	(Dollars in millions)
Change in Plan Assets:
Fair value of plan assets at beginning of year	$	103		$	197		$	104		$	197		$	—		$	—		$	—		$	—
Actual return on plan assets		23			24			8			2			—			—			—			—
Employer contribution		8			13			—			13			5			1			5			—
Plan participants’ contribution		—			1			—			1			—			—			—			—
Foreign currency exchange rate changes		—			5			—			—			—			—			—			—
Benefits paid⁽¹⁾		(11	)		(11	)		(9	)		(16	)		(5	)		(1	)		(5	)		—
Settlements		—			(5	)		—			—			—			—			—			—
Acquisition of Norit		27			133			—			—			—			—			—			—
Expenses paid from assets		(1	)		(1	)		—			—			—			—			—			—

Fair value of plan assets at end of year	$	149		$	356		$	103		$	197		$	—		$	—		$	—		$	—

Funded status	$	(46	)	$	(66	)	$	(44	)	$	(39	)	$	(64	)	$	(18	)	$	(64	)	$	(15	)

Recognized liability⁽²⁾	$	(46	)	$	(66	)	$	(44	)	$	(39	)	$	(64	)	$	(18	)	$	(64	)	$	(15	)

⁽¹⁾	Included in this amount is $7 million and $2 million that the Company paid directly to the participants in its defined benefit plans in fiscal 2012 and 2011, respectively.

⁽²⁾	Included in this amount is $4 million of net pension liability as of September 30, 2011 related to the Supermetals Business presented as Noncurrent liabilities held for sale in the Consolidated Balance Sheet.

Assumptions Used to Determine Benefit Obligations

The following assumptions were used to determine the pension benefit obligations at September 30:


	Assumptions as of September 30
	2012						2011						2010
	Pension Benefits
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign
Actuarial assumptions as of the year-end measurement date:
Discount rate		3.5	%		3.6	%		4.5	%		4.8	%		4.5	%		4.4	%
Rate of increase in compensation		3.5	%		3.1	%		3.8	%		3.1	%		3.8	%		3.3	%
Actuarial assumptions used to determine net periodic benefit cost during the year:
Discount rate		4.5	%		4.8	%		4.5	%		4.3	%		5.3	%		5.0	%
Expected long-term rate of return on plan assets		7.8	%		5.3	%		7.8	%		6.1	%		7.8	%		6.1	%
Rate of increase in compensation		3.8	%		3.2	%		3.8	%		3.3	%		3.8	%		3.4	%

Post Retirement Assumptions and Strategy

The following assumptions were used to determine the post retirement benefit obligations at September 30:


	Assumptions as of September 30
	2012						2011						2010
	Postretirement Benefits
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign
Actuarial assumptions as of the year-end measurement date:
Discount rate		3.3	%		3.9	%		4.5	%		4.9	%		4.5	%		4.8	%
Initial health care cost trend rate		8.0	%		7.4	%		8.5	%		8.0	%		7.5	%		8.0	%
Actuarial assumptions used to determine net cost during the year:
Discount rate		4.5	%		4.9	%		4.5	%		4.8	%		5.3	%		5.2	%
Initial health care cost trend rate		8.5	%		7.9	%		7.5	%		8.0	%		8.0	%		9.0	%

Net Amounts Recognized in Consolidated Balance Sheets

The rates utilized are selected because they represent long-term, high quality, fixed income benchmarks that approximate the long-term nature of Cabot’s pension obligations and related payouts.


	Years Ended September 30
	2012						2011						2012						2011
	Pension Benefits												Postretirement Benefits
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign			U.S.			Foreign
	(Dollars in millions)
Net Amounts Recognized in the Consolidated Balance Sheets
Noncurrent assets	$	—		$	4		$	—		$	10		$	—		$	—		$	—		$	—
Current liabilities		—			(1	)		—			(1	)		(6	)		(1	)		(6	)		—
Noncurrent liabilities		(46	)		(69	)		(44	)		(48	)		(58	)		(17	)		(58	)		(15	)

Amounts Recognized in Accumulated Other Comprehensive Income (Loss)

Amounts recognized in Accumulated other comprehensive income at September 30, 2012 and 2011 were as follows:


	Years Ended September 30
	2012				2011				2012					2011
	Pension Benefits								Postretirement Benefits
	U.S.		Foreign		U.S.		Foreign		U.S.			Foreign		U.S.			Foreign
	(Dollars in millions)
Net actuarial loss	$	29	$	77	$	34	$	52	$	3		$	3	$	2		$	2
Net prior service cost (credit)		1		—		1		—		(10	)		—		(14	)		—

Balance in accumulated other comprehensive income, pretax	$	30	$	77	$	35	$	52	$	(7	)	$	3	$	(12	)	$	2

Estimated Future Benefit Payments

The Company expects that the following benefit payments will be made to plan participants in the years from 2013 to 2022:


	Pension Benefits				Postretirement Benefits
	U.S.		Foreign		U.S.		Foreign
	(Dollars in millions)
Years Ended:
2013	$	13	$	17	$	6	$	1
2014		12		17		6		1
2015		12		19		6		1
2016		13		21		5		1
2017		14		20		5		1
2018-2022		76		116		22		5

Net Periodic Defined Benefit Pension and Other Postretirement Benefit Costs

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


	Years Ended September 30
	2012						2011						2010						2012					2011					2010
	Pension Benefits																		Postretirement Benefits
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign			U.S.			Foreign		U.S.			Foreign		U.S.			Foreign
	(Dollars in millions)
Service cost	$	5		$	7		$	5		$	6		$	5		$	5		$	1		$	—	$	1		$	—	$	1		$	—
Interest cost		7			11			6			11			7			11			2			1		2			1		3			1
Expected return on plan assets		(9	)		(13	)		(8	)		(13	)		(9	)		(11	)		—			—		—			—		—			—
Amortization of prior service cost (credit)		—			—			—			—			—			—			(3	)		—		(3	)		—		(4	)		—
Net losses (gains)		1			3			—			3			—			2			—			—		—			—		—			—
Settlements or curtailments cost (income)		1			1			—			—			—			1			(1	)		—		—			—		—			—
Other		—			—			—			2			—			—			—			—		—			—		—			—

Net periodic benefit cost	$	5		$	9		$	3		$	9		$	3		$	8		$	(1	)	$	1	$	—		$	1	$	—		$	1

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income

Other changes in plan assets and benefit obligations recognized in other comprehensive income are as follows:


	Years Ended September 30
	2012						2011					2010					2012				2011						2010
	Pension Benefits																Postretirement Benefits
	U.S.			Foreign			U.S.		Foreign			U.S.		Foreign			U.S.		Foreign		U.S.			Foreign			U.S.		Foreign
	(Dollars in millions)
Net losses (gains)	$	(3	)	$	27		$	2	$	1		$	5	$	12		$	1	$	1	$	(1	)	$	(1	)	$	1	$	—
Prior service cost		(1	)		—			—		—			—		—			1		—		(2	)		—			—		—
Amortization of prior service (cost) credit		—			—			—		—			—		—			3		—		4			—			4		—
Amortization of prior unrecognized loss		(1	)		(3	)		—		(3	)		—		(2	)		—		—		—			—			—		—
Other		—			1			—		—			—		1			—		—		—			—			—		—

Total other comprehensive loss (income)	$	(5	)	$	25		$	2	$	(2	)	$	5	$	11		$	5	$	1	$	1		$	(1	)	$	5	$	—

Sensitivity Analysis

A one percentage point change in the 2012 assumed health care cost trend rate would have the following effects:


	1-Percentage-Point
	Increase				Decrease
	U.S.		Foreign		U.S.		Foreign
	(Dollars in millions)
Effect on postretirement benefit obligation	$	—	$	3	$	—	$	(2	)

Defined Benefit Pension Plans Weighted-Average Asset Allocations

The Company’s defined benefit pension plans weighted-average asset allocations at September 30, 2012 and 2011, by asset category are as follows:


	Pension Assets
	September 30
	2012						2011
	U.S.			Foreign			U.S.			Foreign
Asset Category:
Equity securities		62	%		39	%		57	%		44	%
Debt securities		38	%		56	%		43	%		50	%
Cash and other securities		—			5	%		—			6	%

Total		100	%		100	%		100	%		100	%

Fair Value of Pension Plan Assets by Asset Category

The fair value of the Company’s pension plan assets at September 30, 2012 and 2011 by asset category is as follows:


	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Total
	2012				Total		2011				Total
Asset Category:
Cash	$	4	$	1	$	5	$	4	$	1	$	5
Direct investments:
U.S. equity securities		19		—		19		13		—		13
Non-U.S. equity securities		5		—		5		1		—		1
Non-U.S. government bonds		50		—		50		47		—		47
Non-U.S. corporate bonds		11		—		11		1		—		1

Total direct investments	$	85	$	—	$	85	$	62	$	—	$	62
Investment funds:
Equity funds⁽¹⁾		97		108		205		20		86		106
Fixed income funds⁽²⁾		66		126		192		43		50		93
Real estate funds⁽³⁾		—		2		2		—		1		1
Common and collective investment trust funds⁽⁴⁾		—		—		—		—		24		24
Money market funds		1		—		1		1		—		1
Other		4		—		4		—		—		—

Total investment funds		168	$	236	$	404	$	64	$	161	$	225
Alternative investments:
Insurance contracts⁽⁵⁾		—		10		10		—		8		8
Other		—		1		1		—		—		—

Total alternative investments		—	$	11	$	11	$	—	$	8	$	8

Total pension plan assets	$	257	$	248	$	505	$	130	$	170	$	300

⁽¹⁾	The equity funds asset class includes funds that invest in U.S. equities as well as equity securities issued by companies incorporated, listed or domiciled in countries in developed and/or emerging markets. These companies may be in the small-, mid- or large-cap categories.

⁽²⁾

⁽³⁾

⁽⁴⁾

⁽⁵⁾	Insurance contracts held by the Company’s non-U.S. plans are issued by well-known, highly rated insurance companies.

Stock-Based Compensation (Tables)

12 Months Ended

Sep. 30, 2012

Stock-Based Compensation Expenses

The following table presents stock-based compensation expenses included in the Company’s Consolidated Statements of Operations:


	Years Ended September 30
	2012			2011			2010
	(Dollars in millions)
Cost of Sales	$	5		$	5		$	6
Selling and administrative expenses		9			9			11
Research and technical expenses		1			1			1

Stock-based compensation expense		15			15			18
Income tax benefit		(5	)		(5	)		(7	)

Net stock-based compensation expense	$	10		$	10		$	11

Equity Incentive Plan Activity

The following table summarizes the total stock option, restricted stock, and restricted stock unit activity in the equity incentive plans for fiscal 2012:


	September 30, 2012
	Stock Options							Restricted Stock					Restricted Stock Units
	Total Options			Weighted Average Exercise Price		Weighted Average Grant Date Fair Value		Restricted Stock			Weighted Average Grant Date Fair Value		Restricted Stock Units⁽¹⁾			Weighted Average Grant Date Fair Value
	(Shares in thousands)
Outstanding at September 30, 2011		1,772		$	21.96		$6.06		3		$	9.56		866		$	28.89
Granted		284			32.95		11.64		—			—		405			33.15
Performance-based adjustment⁽²⁾		—			—		—		—			—		10			25.93
Exercised / Vested		(434	)		19.95		4.72		(1	)		9.56		(15	)		25.64
Cancelled / Forfeited		(43	)		33.64		8.26		—			—		(35	)		29.70

Outstanding at September 30, 2012		1,579			24.17		7.37		2			9.56		1,231			30.28

Exercisable at September 30, 2012		983			20.03

Expected to vest⁽³⁾		561			30.95

⁽¹⁾	The number “Granted” represents the number of shares issuable upon vesting of time-based restricted stock units and performance-based restricted stock units, assuming the Company performs at the target performance level in each year of the three-year performance period.

⁽²⁾	Represents the net incremental number of shares issuable upon vesting of outstanding performance-based restricted stock units, based on the Company’s actual performance against the performance targets for the 2012 performance period of the outstanding units.

⁽³⁾	Stock options expected to vest in the future, net of estimated forfeitures, have a weighted average remaining contractual life of 8.3 years.

Stock Options Outstanding and Vested Options

The following table summarizes information related to the total outstanding options and the vested options on September 30, 2012:


	Total Options Outstanding		Exercisable Options
Aggregate Intrinsic Value (in millions)	$	20	$	16
Weighted Average Remaining Contractual Term (in years)		7.3		6.7

Weighted-Average Assumptions

The fair values on the grant date were calculated using the following weighted-average assumptions:


	Years Ended September 30
	2012			2011			2010
Expected stock price volatility		45	%		43	%		42	%
Risk free interest rate		1.3	%		1.8	%		2.8	%
Expected life of options (years)		6			6			6
Expected annual dividends per year	$	0.72		$	0.72		$	0.72

Restructuring (Tables)

12 Months Ended

Sep. 30, 2012

Recorded Restructuring Activities

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


	Years Ended September 30
	2012		2011		2010
	(Dollars in millions)
Cost of sales	$	13	$	16	$	36
Selling and administrative expenses		2		2		10
Research and technical expenses		—		—		—

Total	$	15	$	18	$	46

Restructuring Activities and Related Reserves

Details of these restructuring activities and the related reserves for fiscal 2012 and 2011 were as follows:


	Severance and Employee Benefits			Environmental Remediation			Asset Impairment and Accelerated Depreciation			Asset Sales			Other			Total
	(Dollars in millions)
Reserve at September 30, 2010	$	18		$	1		$	—		$	—		$	—		$	19
Charges		8			3			3			(1	)		5			18
Costs charged against assets and other		1			—			(3	)		(4	)		—			(6	)
Proceeds from sale		—			—			—			6			—			6
Cash paid		(17	)		(4	)		—			(1	)		(4	)		(26	)
Foreign currency translation adjustment		(1	)		—			—			—			1			—

Reserve at September 30, 2011	$	9		$	—		$	—		$	—		$	2		$	11
Charges		3			3			7			(1	)		3			15
Costs charged against assets and other		—			—			(7	)		(3	)		—			(10	)
Proceeds from sale		—			—			—			4			—			4
Cash paid		(10	)		(2	)		—			—			(2	)		(14	)
Foreign currency translation adjustment		—			—			—			—			(1	)		(1	)

Reserve at September 30, 2012	$	2		$	1		$	—		$	—		$	2		$	5

Stockholders' Equity (Tables)

12 Months Ended

Sep. 30, 2012

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table illustrates the after-tax balances of the components comprising Accumulated other comprehensive income:


	September 30
	2012			2011
	(Dollars in millions)
Foreign currency translation adjustments	$	167		$	163
Unrealized holding gain on investments/derivatives		—			1
Change in funded status of retirement plans		(75	)		(58	)

Accumulated other comprehensive income	$	92		$	106

Earnings Per Share (Tables)

12 Months Ended

Sep. 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:


	Years Ended September 30
	2012			2011			2010
	(In millions, except per share amounts)
Basic EPS:
Net income attributable to Cabot Corporation	$	388		$	236		$	154
Less: Dividends and dividend equivalents to participating securities		—			1			1
Less: Undistributed earnings allocated to participating securities⁽¹⁾		3			2			2

Earnings allocated to common shareholders (numerator)	$	385		$	233		$	151

Weighted average common shares and participating securities outstanding		64.0			65.4			65.3
Less: Participating securities⁽¹⁾		0.6			0.8			1.5

Adjusted weighted average common shares (denominator)		63.4			64.6			63.8

Per share amounts—basic:
Income from continuing operations attributable to Cabot Corporation	$	2.87		$	2.80		$	1.96
Income from discontinued operations		3.20			0.82			0.41

Net income attributable to Cabot Corporation	$	6.07		$	3.62		$	2.37

Diluted EPS:
Earnings allocated to common shareholders	$	385		$	233		$	151
Plus: Earnings allocated to participating securities		3			3			3
Less: Adjusted earnings allocated to participating securities⁽²⁾		(3	)		(3	)		(3	)

Earnings available to common shares (numerator)	$	385		$	233		$	151

Adjusted weighted average common shares outstanding		63.4			64.6			63.8
Effect of dilutive securities:
Common shares issuable⁽³⁾		0.8			0.8			0.5

Adjusted weighted average common shares (denominator)		64.2			65.4			64.3

Per share amounts—diluted:
Income from continuing operations attributable to Cabot Corporation	$	2.83		$	2.77		$	1.94
Income from discontinued operations		3.16			0.80			0.41

Net income attributable to Cabot Corporation	$	5.99		$	3.57		$	2.35

⁽¹⁾

Caluclation of Undistributed Earnings

The calculation of undistributed earnings is as follows:


	Years Ended September 30
	2012		2011		2010
	( Dollars in millions)
Calculation of undistributed earnings:
Net income attributable to Cabot Corporation	$	388	$	236	$	154
Less: Dividends declared on common stock		49		46		46
Less: Dividends and dividend equivalents to participating securities		—		1		1

Undistributed earnings	$	339	$	189	$	107

Allocation of undistributed earnings:
Undistributed earnings allocated to common shareholders	$	336	$	187	$	105
Undistributed earnings allocated to participating securities		3		2		2

Undistributed earnings	$	339	$	189	$	107

⁽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⁾

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2012

Income (Loss) Before Income Taxes

Income (loss) from continuing operations before income taxes and equity in net earnings of affiliated companies was as follows:


	Years ended September 30
	2012		2011			2010
	(Dollars in millions)
Income (loss) from continuing operations:
Domestic	$	13	$	(25	)	$	3
Foreign		232		228			163

Total	$	245	$	203		$	166

Provision (Benefit) on Income (Loss)

Tax provision (benefit) on income consisted of the following:


	Years ended September 30
	2012			2011			2010
	(Dollars in millions)
U.S. federal and state:
Current	$	(1	)	$	(7	)	$	(8	)
Deferred		(8	)		(51	)		(14	)

Total		(9	)		(58	)		(22	)

Foreign:
Current		62			57			51
Deferred		2			7			1

Total		64			64			52

Total U.S. and foreign	$	55		$	6		$	30

Reconcilation Using U.S. Statutory Rate

The provision (benefit) for income taxes differed from the provision for income taxes as calculated using the U.S. statutory rate as follows:


	Years ended September 30
	2012			2011			2010
	(Dollars in millions)
Computed tax expense at the federal statutory rate	$	86		$	70		$	58
Foreign income:
Impact of taxation at different rates, repatriation and other		(29	)		(29	)		(26	)
Impact of credit for extraordinary repatriation		—			(24	)		—
Impact of investment incentive credits		—			(2	)		(2	)
Impact of foreign losses for which a current tax benefit is not available		5			6			17
State taxes, net of federal effect		—			—			—
U.S. and state benefits from research and experimentation activities		(2	)		(3	)		(1	)
Tax audit settlements		(2	)		(12	)		(15	)
Release of state tax valuation allowance		(8	)		—			—
Permanent differences, net		5			—			(1	)

Total	$	55		$	6		$	30

Components of Deferred Income Taxes

Significant components of deferred income taxes were as follows:


	September 30
	2012			2011
	(Dollars in millions)
Deferred tax assets:
Property, plant & equipment	$	140		$	73
Pension and other benefits		94			87
Environmental liabilities		2			3
Inventory		12			12
Deferred expenses		12			11
State taxes		5			—
Net operating loss carry-forwards		194			125
Other tax carry-forwards		73			137
Other		45			28

Subtotal		577			476
Valuation allowances		(169	)		(138	)

Total deferred tax assets	$	408		$	338


	September 30
	2012		2011
	(Dollars in millions)
Deferred tax liabilities:
Property, plant & equipment	$	191	$	28
Intangible assets		107		—
Pension and other benefits		15		2
Unremitted earnings of non-U.S. subsidiaries		11		18
Inventory		10		3
Other		10		5

Total deferred tax liabilities	$	344	$	56

Expiration Dates of Carryforwards

The following table provides detail surrounding the expiration dates of these carryforwards:


	NOLs		Credits
	(Dollars in millions)
Expiration periods
2013 to 2019	$	329	$	3
2020 and thereafter		220		47
Indefinite carryforward		291		23

Total	$	840	$	73

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal 2012, 2011 and 2010 are as follows:


	Years ended September 30
	2012			2011			2010
	(Dollars in millions)
Balance at beginning of the year	$	65		$	75		$	81
Additions based on tax provisions related to the current year		4			2			6
Additions for tax positions of prior years		—			1			3
Reductions of tax provisions of prior years		(14	)		(13	)		(15	)

Balance at end of the year	$	55		$	65		$	75

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

Tabular disclosure of tax credit carryforwards available to reduce future taxable income, including amounts, expiration dates, limitations on use and the related deferred tax assets and valuation allowances.

Schedule of Future Minimum Rental Commitments under Non-Cancelable Leases

Commitments and Contingencies (Tables)

12 Months Ended

Sep. 30, 2012

Future minimum rental commitments under non-cancelable leases are as follows:


	(Dollars in millions)
2013		22
2014		17
2015		14
2016		10
2017		5
2018 and thereafter		27

Total future minimum rental commitments	$	95

Schedule of Raw Material Purchased under Long Term Purchase Agreements

Raw materials purchased under these agreements by segment for fiscal 2012, 2011 and 2010 are as follows:


	Years Ended September 30
	2012		2011		2010
	(Dollars in millions)
Reinforcement Materials	$	312	$	340	$	294
Performance Materials		47		18		36
Purification Solutions⁽¹⁾		4		N/A		N/A
Advanced Technologies		6		—		6
Other		1		—		—

Total	$	370	$	358	$	336

Schedule of Components of Purchase Commitments

The purchase commitments for these agreements are with various suppliers and purchases are expected to take place as follows:


	Payments Due by Fiscal Year
	2013		2014		2015		2016		2017		Thereafter		Total
	(Dollars in millions)
Reinforcement Materials	$	386	$	270	$	255	$	195	$	171	$	2,609	$	3,886
Performance Materials		40		33		33		32		29		256		423
Purification Solutions		21		12		8		8		8		23		80
Advanced Technologies		5		3		1		—		—		—		9

Total	$	452	$	318	$	297	$	235	$	208	$	2,888	$	4,398

Concentration of Credit Risk (Tables)

12 Months Ended

Sep. 30, 2012

Schedule of Account Receivable

Tire manufacturers comprise a significant portion of Cabot’s trade receivable balance. The accounts receivable balance for these significant customers are as follows:


	September 30
	2012		2011
	(Dollars in millions)
Tire manufacturers	$	346	$	318

Financial Information by Segment & Geographic Area (Tables)

12 Months Ended

Sep. 30, 2012

Schedule of Performance Segment

The net sales from each of these businesses for fiscal 2012, 2011 and 2010 are as follows:


	Years Ended September 30
	2012		2011		2010
	(Dollars in millions)
Specialty Carbons and Compounds	$	664	$	626	$	531
Fumed Metal Oxides		250		254		252

Total Performance Materials	$	914	$	880	$	783

Schedule of New Business Segment

The net sales from each of these businesses are as follows:


	Years Ended September 30
	2012		2011		2010
	(Dollars in millions)
Inkjet Colorants	$	66	$	65	$	57
Aerogel		18		24		24
Security Materials		9		11		7
Elastomer Composites		23		17		17
Specialty Fluids		94		69		81

Total Advanced Technologies	$	210	$	186	$	186

Financial Information by Segment

Financial information by segment is as follows:


	Reinforcement Materials		Performance Materials		Advanced Technologies		Purification Solutions		Segment Total		Unallocated and Other^(1), (3)			Consolidated Total
	(Dollars in millions)
Years Ended September 30
2012
Revenues from external customers⁽²⁾	$	2,019	$	914	$	210	$	61	$	3,204	$	96		$	3,300
Depreciation and amortization		82		47		13		8		150		6			156
Equity in earnings of affiliated companies		9		1		—		1		11		—			11
Income (loss) from continuing operations before taxes⁽³⁾		227		128		49		5		409		(164	)		245
Assets⁽⁴⁾		1,527		717		209		1,433		3,886		513			4,399
Total expenditures for additions to long-lived assets⁽⁵⁾		163		87		16		350		616		6			622
2011
Revenues from external
customers⁽²⁾	$	1,952	$	880	$	186	$	—	$	3,018	$	84		$	3,102
Depreciation and amortization		80		37		14		—		131		8			139
Equity in earnings of affiliated companies		7		1		—		—		8		—			8
Income (loss) from continuing operations before taxes⁽³⁾		183		140		31		—		354		(151	)		203
Assets⁽⁴⁾		1,509		661		191		—		2,361		780			3,141
Total expenditures for additions to long-lived assets⁽⁵⁾		126		99		10		—		235		6			241
2010
Revenues from external customers⁽²⁾	$	1,660	$	783	$	186	$	—	$	2,629	$	87		$	2,716
Depreciation and amortization		74		35		12		—		121		16			137
Equity in earnings of affiliated companies		6		1		—		—		7		—			7
Income (loss) from continuing operations before taxes⁽³⁾		139		125		50		—		314		(148	)		166
Assets⁽⁴⁾		1,277		544		188		—		2,009		877			2,886
Total expenditures for additions to long-lived assets⁽⁵⁾		62		38		4		—		104		3			107

⁽¹⁾	Unallocated and other includes certain items and eliminations necessary to reflect management’s reporting of operating segment results. These items are reflective of the segment reporting presented to the Chief Operating Decision Maker.

⁽²⁾	Unallocated and other reflects royalties paid by equity affiliates, external shipping and handling fees, and the impact of the corporate adjustment for unearned revenue.


	Years Ended September 30
	2012		2011			2010
	(Dollars in millions)
Royalties paid by equity affiliates, other operating revenues, and the impact of the corporate adjustment for unearned revenue…………………………	$	11	$	(2	)	$	7
Shipping and handling fees		85		86			80

Total	$	96	$	84		$	87

⁽³⁾	Income (loss) from continuing operations before taxes for Unallocated and Other includes:


	Years Ended September 30
	2012			2011			2010
	(Dollars in millions)
Interest expense	$	(46	)	$	(39	)	$	(40	)
Certain items^(a)		(51	)		(19	)		(53	)
Equity in net earnings of affiliated companies^(b)		(11	)		(8	)		(7	)
Unallocated corporate costs^(c)		(56	)		(53	)		(48	)
General unallocated (expense) income^(d)		—			(32	)		—

Total	$	(164	)	$	(151	)	$	(148	)

^(a)

^(b)

Equity in net income of affiliated companies is included in segment EBIT and is removed from Unallocated and other to reconcile to income (loss) from operations before taxes.

^(c)

Unallocated corporate costs are not controlled by the segments and primarily benefit corporate interests.

^(d)

⁽⁴⁾	Unallocated and Other assets includes cash, marketable securities, cost investments, income taxes receivable, deferred taxes, headquarters’ assets, and current and non-current assets held for sale.

⁽⁵⁾	Expenditures for additions to long-lived assets include total equity and other investments (including available-for-sale securities), property, plant and equipment, intangible assets and assets held for rent.

Revenues from External Customers and Long-Lived Asset Information by Geographic Area

Revenues from external customers and long-lived asset information by geographic area are summarized as follows:


	United States		Japan		China		Other Foreign Countries		Consolidated Total
	(Dollars in millions)
Years Ended September 30,
2012
Revenues from external customers	$	695	$	330	$	543	$	1,732	$	3,300
Net property, plant and equipment	$	486	$	54	$	305	$	707	$	1,552
2011
Revenues from external customers	$	589	$	307	$	554	$	1,652	$	3,102
Net property, plant and equipment	$	233	$	30	$	274	$	499	$	1,036
2010
Revenues from external customers	$	546	$	248	$	458	$	1,464	$	2,716
Net property, plant and equipment	$	227	$	41	$	203	$	504	$	975

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.

Schedule of Quarterly Financial Information

Unaudited Quarterly Financial Information (Tables)

12 Months Ended

Sep. 30, 2012

Unaudited financial results by quarter for fiscal 2012 and 2011 are summarized below.


	Quarter Ended
	December			March			June			September			Year
	(Dollars in millions, except per share amounts)
Fiscal 2012
Consolidated Net Income
Net sales and other operating revenues	$	762		$	844		$	846		$	848		$	3,300

Gross profit		143			173			175			157			648
Selling and administrative expenses		65			66			68			86			285
Research and technical expenses		17			20			17			19			73

Income from operations		61			87			90			52			290
Net interest expense and other charges		(6	)		(11	)		(12	)		(16	)		(45	)

Income from continuing operations before taxes		55			76			78			36			245
Provision for income taxes		(16	)		(23	)		(16	)		—			(55	)
Equity in earnings of affiliated companies		1			3			4			3			11
Income from operations of discontinued operations, net of tax		11			189			4			1			205

Net income		51			245			70			40			406
Net income attributable to noncontrolling interests, net of tax		5			5			4			4			18

Net income attributable to Cabot Corporation	$	46		$	240		$	66		$	36		$	388

Income per share - diluted:
Income from continuing operations	$	0.55		$	0.78		$	0.96		$	0.54		$	2.83
Income from discontinued operations		0.16			2.92			0.06			0.02			3.16

Net income attributable to Cabot Corporation	$	0.71		$	3.70		$	1.02		$	0.56		$	5.99


	Quarter Ended
	December			March			June			September			Year
	(Dollars in millions, except per share amounts)
Fiscal 2011
Consolidated Net Income
Net sales and other operating revenues	$	694		$	739		$	836		$	833		$	3,102

Gross profit		131			134			152			141			558
Selling and administrative expenses		63			62			61			63			249
Research and technical expenses		15			18			16			17			66

Income from operations		53			54			75			61			243
Net interest expense and other charges		(7	)		(6	)		(13	)		(14	)		(40	)

Income from continuing operations before taxes		46			48			62			47			203
Benefit (provision) for income taxes		15			(9	)		(10	)		(2	)		(6	)
Equity in earnings of affiliated companies		3			1			2			2			8
Income from operations of discontinued operations, net of tax		16			16			13			8			53

Net income		80			56			67			55			258
Net income attributable to noncontrolling interests, net of tax		5			5			7			5			22

Net income attributable to Cabot Corporation	$	75		$	51		$	60		$	50		$	236

Income per share - diluted:
Income from continuing operations	$	0.88		$	0.52		$	0.73		$	0.64		$	2.77
Income from discontinued operations		0.25			0.24			0.19			0.12			0.80

Net income attributable to Cabot Corporation	$	1.13		$	0.76		$	0.92		$	0.76		$	3.57

Significant Accounting Policies (Narrative) (Detail) ¥ in Millions, $ in Millions	12 Months Ended
	Sep. 30, 2012 USD ($)	Sep. 30, 2011 USD ($)	Sep. 30, 2010 USD ($)	Sep. 30, 2012 CNY (¥)	Sep. 30, 2011 CNY (¥)
Significant Accounting Policies [Line Items]
Equity affiliate investments	$ 115	$ 60
Dividend declared	6	4	$ 6
Capitalized interest	4	2	1
Amortization of intangible assets	3
Asset retirement obligation reserve	18	7
Other asset retirement obligation	1
Foreign currency transaction losses (gains)	2	6
Accounts and notes receivable, net	$ 687	659
Chance of utilizing the associated benefit for valuation allowances, maximum	50.00%
Notes Receivable [Member]
Significant Accounting Policies [Line Items]
Accounts and notes receivable, net	$ 24	60		¥ 155	¥ 380
Charges on sale of notes receivables			2
Norit [Member]
Significant Accounting Policies [Line Items]
Asset retirement obligation reserve	$ 10
Minimum [Member]
Significant Accounting Policies [Line Items]
Investments in equity affiliates	20.00%			20.00%
Minimum [Member] \| Building [Member]
Significant Accounting Policies [Line Items]
Useful life of property, plant and equipment	20 years
Minimum [Member] \| Machinery And Equipment [Member]
Significant Accounting Policies [Line Items]
Useful life of property, plant and equipment	10 years
Minimum [Member] \| Other Fixed Assets [Member]
Significant Accounting Policies [Line Items]
Useful life of property, plant and equipment	3 years
Maximum [Member]
Significant Accounting Policies [Line Items]
Investments in equity affiliates	50.00%			50.00%
Amortization of intangible assets		1	1
Foreign currency transaction losses (gains)			$ 1
Charges on sale of notes receivables		$ 1
Maximum [Member] \| Building [Member]
Significant Accounting Policies [Line Items]
Useful life of property, plant and equipment	25 years
Maximum [Member] \| Machinery And Equipment [Member]
Significant Accounting Policies [Line Items]
Useful life of property, plant and equipment	20 years
Maximum [Member] \| Other Fixed Assets [Member]
Significant Accounting Policies [Line Items]
Useful life of property, plant and equipment	25 years

Significant Accounting Policies (Segment Reporting Revenue Percentage) (Detail)

12 Months Ended

Sep. 30, 2012

Sep. 30, 2011

Sep. 30, 2010

63.00%

65.00%

63.00%

28.00%

29.00%

30.00%

7.00%

6.00%

7.00%

Business Acquisition Pro Forma Information [Line Items]

^[1]

2.00%

[1]	Consists of two months of revenue for Norit, which the Company acquired on July 31, 2012.

Acquisition of Norit (Narrative) (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011	Jul. 31, 2012
Schedule Of Business Acquisitions Purchase Price Allocation [Line Items]
Acquisition paying	$ 1,113		$ 1,100
Acquisition costs	$ 14
Amortized period	18 years
Fair value of the assets acquired includes trade receivables	$ 46
Non-recurring adjustments in pro forma earnings	19
Recognized pre tax gain		$ 33
Trademarks [Member]
Schedule Of Business Acquisitions Purchase Price Allocation [Line Items]
Intangible assets	57
Customer Relationships [Member]
Schedule Of Business Acquisitions Purchase Price Allocation [Line Items]
Intangible assets	$ 119
Amortized period	20 years
Developed Technology [Member]
Schedule Of Business Acquisitions Purchase Price Allocation [Line Items]
Intangible assets	$ 149
Amortized period	17 years

Acquisition of Norit (Components and allocation of the purchase price) (Detail) - USD ($) $ in Millions	Sep. 30, 2012	Jul. 31, 2012
Schedule Of Business Acquisitions Purchase Price Allocation [Line Items]
Current assets	$ 207
Property, plant and equipment	385
Other non-current assets	72
Intangible assets	325
Goodwill	432
Current liabilities	(98)
Deferred non-current tax liabilities	(176)
Other non-current liabilities	(34)
Total purchase price	$ 1,113	$ 1,100

Acquisition of Norit (Proforma of net sales and results of operations) (Detail) - USD ($)
$ / shares in Units, $ in Millions

12 Months Ended

Sep. 30, 2012

Sep. 30, 2011

Net sales

$ 3,585

$ 3,449

Income from continuing operations

^[1]

$ 209

$ 226

Income from continuing operations per common share:

Basic

$ 3.27

$ 3.47

Diluted

$ 3.23

$ 3.42

[1]	Norit recognized a pre-tax gain of approximately $33 million in other income during its year ended December 31, 2011 in connection with a legal settlement.

The pro forma basic net income per share for a period as if the business combination or combinations had been completed at the beginning of a period.

The pro forma diluted net income per share for a period as if the business combination or combinations had been completed at the beginning of a period.

Discontinued Operations (Narrative) (Detail) $ in Millions	12 Months Ended
Discontinued Operations (Narrative) (Detail) $ in Millions	Sep. 30, 2012 USD ($) yr
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
Maturity period of promissory notes \| yr	2
Total prepayment value of promissory notes	$ 215.0
Contingent payment, percentage of quarterly cash payments of adjusted EBITDA	50.00%
Contingent payment, based on future performance of the acquired business	$ 11.5
Proceeds from sale of excess inventory	$ 50.0
Promissory note interest rate	10.00%
GAM Promissory Notes and Inventory Note, final maturity date	2014-03
Promissory note fair value	$ 273.0
Promissory note included in other asset section	242.0
Promissory note included in prepaid and other current assets	10.0
Company received payable under the GAM Notes	23.0
After-tax gain on the sale of discontinued operations	191.0
Fair Value, Inputs, Level 3 [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Promissory note included in other asset section	$ 252.0

Discontinued Operations (Components Income (Loss) from Discontinued Operations) (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net sales and other operating revenues									$ 46	$ 201	$ 177
Income from operations before income taxes									21	84	42
Provision for income taxes on operations									(7)	(31)	(16)
Income from operations, net of tax									14	53	26
Gain on sale of discontinued operations									300
Provision for income taxes on gain on sale									(109)
Gain on sale of discontinued operations, net of tax									191
Income from discontinued operations, net of tax	$ 1	$ 4	$ 189	$ 11	$ 8	$ 13	$ 16	$ 16	$ 205	$ 53	$ 26

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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (b),(c)
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32672-109319

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 20
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=18498875&loc=d3e38679-109324

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-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.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-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

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.14)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 3
-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.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-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.

Reference 8: 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 9: http://www.xbrl.org/2003/role/presentationRef
-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
Total noncurrent assets held for sale	39
Total current liabilities held for sale	12
Total noncurrent liabilities held for sale	$ 6

Inventories (Components of Company's Inventories) (Detail) - USD ($) $ in Millions	Sep. 30, 2012	Sep. 30, 2011
Inventories [Line Items]
Raw materials	$ 131	$ 120
Work in process	5	3
Finished goods	351	233
Other	46	37
Total	$ 533	$ 393

Inventories (Narrative) (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Inventories [Line Items]
Inventory valued under the LIFO method	5.00%				8.00%				5.00%	8.00%
Inventory, LIFO reserve	$ 52				$ 53				$ 52	$ 53
Decrease in cost of goods sold									1	$ 0	$ 0
Effect of LIFO inventory liquidation on income									$ 1
Liquidation of LIFO inventory, resulted per diluted common share	$ 0.56	$ 1.02	$ 3.70	$ 0.71	$ 0.76	$ 0.92	$ 0.76	$ 1.13	$ 5.99	$ 3.57	$ 2.35
Obsolete inventory reserve	$ 15				$ 10				$ 15	$ 10
Inventory Valuation and Obsolescence [Member]
Inventories [Line Items]
Liquidation of LIFO inventory, resulted per diluted common share									$ 0.01

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

The amount of the valuation account as of the balance sheet date which reduces the carrying amount of inventory to net realizable value; takes into consideration such factors as market value, excessive quantities based on expected sales, technological obsolescence, and shrinkage. May also provide for estimated product returns or price concessions pertaining to product cost.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 330
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 5.BB)
-URI http://asc.fasb.org/extlink&oid=6386940&loc=d3e100047-122729

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.6(a))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SX 210.12-09)
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e24092-122690

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 330
-SubTopic 10
-Section 35
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6386567&loc=d3e3927-108312

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Paragraph 14
-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 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Paragraph 8, 9, 14
-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 7: 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 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 09
-Article 12

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 6
-Subparagraph a
-Article 5

Property Plant and Equipment (Components of Property, Plant and Equipment) (Detail) - USD ($) $ in Millions	Sep. 30, 2012	Sep. 30, 2011
Property, Plant and Equipment [Line Items]
Land and land improvements	$ 167	$ 73
Buildings	495	479
Machinery and equipment	2,379	2,076
Other	226	162
Construction in progress	244	177
Total property, plant and equipment	3,511	2,967
Less: accumulated depreciation	(1,959)	(1,931)
Net property, plant and equipment	$ 1,552	$ 1,036

The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement.

Goodwill And Other Intangible Asset [Line Items]

Property Plant and Equipment (Narrative) (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 153	$ 138	$ 137

Goodwill and Other Intangible Assets (Narrative) (Detail) - USD ($)	1 Months Ended	12 Months Ended
	May 31, 2012	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Goodwill And Intangible Assets [Line Items]
Goodwill		$ 480,000,000	$ 40,000,000	$ 39,000,000
Goodwill annual impairment	$ 0
Useful life of intangible assets		18 years
Amortization expense estimated for year one		$ 15,000,000
Amortization expense estimated for year two		15,000,000
Amortization expense estimated for year three		15,000,000
Amortization expense estimated for year four		15,000,000
Amortization expense estimated for year five		15,000,000
Selling, General and Administrative Expenses [Member]
Goodwill And Intangible Assets [Line Items]
Amortization of Intangible assets		$ 3,000,000
Minimum [Member]
Goodwill And Intangible Assets [Line Items]
Useful life of intangible assets		6 years
Maximum [Member]
Goodwill And Intangible Assets [Line Items]
Useful life of intangible assets		20 years
Amortization of Intangible assets			$ 1,000,000	$ 1,000,000

Goodwill and Other Intangible Assets (Schedule of Goodwill Balances) (Detail) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2012

Sep. 30, 2011

Foreign currency translation adjustment and other

$ 40

$ 39

Goodwill acquired

^[1]

432

Foreign currency translation adjustment

480

Goodwill And Other Intangible Asset [Line Items]

Foreign currency translation adjustment

Goodwill And Other Intangible Asset [Line Items]

Goodwill And Other Intangible Asset [Line Items]

Foreign currency translation adjustment and other

$ 2

Goodwill And Other Intangible Asset [Line Items]

Goodwill acquired

^[1]

432

Foreign currency translation adjustment

$ 439

[1]	Goodwill acquired relates to the acquisition of Norit in fiscal 2012.

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
-SubTopic 20
-Section 45
-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.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-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.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 72
-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 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-Clause 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 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 68
-Subparagraph l
-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 141R
-Paragraph 34
-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 [Line Items]

Goodwill and Other Intangible Assets (Schedule of Intangible Assets) (Detail) - USD ($)
$ in Millions

Sep. 30, 2012

Sep. 30, 2011

Trademarks, indefinite lives

$ 278

$ 5

^[1]

336

(6)

(2)

272

Developed Technology [Member]

330

Goodwill And Other Intangible Assets [Line Items]

^[1]

151

^[1]

(2)

Customer Relationships [Member]

^[1]

149

Goodwill And Other Intangible Assets [Line Items]

^[1]

121

^[1]

(1)

Other Intangible Assets [Member]

^[1]

120

Goodwill And Other Intangible Assets [Line Items]

(3)

(2)

$ 3

[1]	Developed technology, Customer relationships and Trademarks relate to the acquisition of Norit in fiscal 2012.

Accounts Payable, Accrued Liabilities and Other Liabilities (Components of Accounts Payable and Accrued Liabilities) (Detail) - USD ($) $ in Millions	Sep. 30, 2012	Sep. 30, 2011
Accrued And Other Current Liabilities [Line Items]
Accounts payable	$ 425	$ 330
Accrued employee compensation	46	44
Accrued severance and restructuring	5	11
Other accrued liabilities	130	76
Total	$ 606	$ 461

Carrying value as of the balance sheet date of obligations, excluding pension and other postretirement benefits, incurred through that date and payable for perquisites provided to employees pertaining to services received from them. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

Carrying value as of the balance sheet date of obligations incurred through that date and payable arising from transactions not otherwise specified in the taxonomy. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

Accounts Payable, Accrued Liabilities and Other Liabilities (Components of Other Long-Term Liabilities) (Detail) - USD ($) $ in Millions	Sep. 30, 2012	Sep. 30, 2011
Other Long Term Liabilities [Line Items]
Employee benefit plan liabilities	$ 190	$ 161
Non-current tax liabilities	53	50
Financial instrument liabilities	26	39
Other accrued liabilities	45	49
Total	$ 314	$ 299

Fair values as of the balance sheet date of all liabilities resulting from contracts that meet the criteria of being accounted for as derivative instruments, and which are expected to be extinguished or otherwise disposed of after one year or beyond the normal operating cycle, if longer, net of the effects of master netting arrangements.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6945355&loc=d3e41228-113958

Reference 2: 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 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13495-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6945355&loc=d3e41271-113958

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 4, 17
-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 Research Bulletin (ARB)
-Number 43
-Section A
-Paragraph 7
-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 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FIN39-1
-Paragraph 10A, 10B
-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 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.

This represents the noncurrent liability for underfunded plans recognized in the balance sheet that is associated with the defined benefit pension plans and other postretirement defined benefit plans.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e2417-114920

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (c)
-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 20
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=21915240&loc=d3e1703-114919

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e2410-114920

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.24)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-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.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-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 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 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.

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

Debt and Other Obligations (Schedule of Long-Term Obligations) (Detail) - USD ($) $ in Millions	Sep. 30, 2012	Jul. 31, 2012	Jun. 30, 2012	Sep. 30, 2011	Sep. 30, 2009	Dec. 31, 2003
Debt Instrument [Line Items]
Capital lease obligations	$ 16			$ 15
Unamortized debt discount	(2)		$ (1)	(2)
Total debt	1,357			613
Less current portion of long-term debt	(185)			(57)
Total long-term debt	1,172			556
Variable Rate Debt [Member]
Debt Instrument [Line Items]
Total debt	200			15
Fixed Rate Debt [Member]
Debt Instrument [Line Items]
Total debt	1,143			585
Medium Term Notes	53			83
Revolving Credit Facility Expiry 2016 [Member] \| Variable Rate Debt [Member]
Debt Instrument [Line Items]
Total debt	189
5.40% - 7.32% Chinese Renminbi Notes, due through 2016 [Member] \| Variable Rate Debt [Member]
Debt Instrument [Line Items]
Total debt	11			15
5% Notes Due 2016 [Member]
Debt Instrument [Line Items]
Unamortized debt discount					$ (2)
5% Notes Due 2016 [Member] \| Fixed Rate Debt [Member]
Debt Instrument [Line Items]
Total debt	300			300
2.55% Notes Due 2018 [Member]
Debt Instrument [Line Items]
Unamortized debt discount		$ (1)
2.55% Notes Due 2018 [Member] \| Fixed Rate Debt [Member]
Debt Instrument [Line Items]
Total debt	250
3.7% Notes Due 2022 [Member] \| Fixed Rate Debt [Member]
Debt Instrument [Line Items]
Total debt	350
7.70% - 8.28% Notes Due 2012 [Member] \| Fixed Rate Debt [Member]
Debt Instrument [Line Items]
Medium Term Notes				30
7.42% Note Due 2018 [Member] \| Fixed Rate Debt [Member]
Debt Instrument [Line Items]
Medium Term Notes	30			30
8.346% - 8.47% Notes Due 2022 [Member] \| Fixed Rate Debt [Member]
Debt Instrument [Line Items]
Medium Term Notes	15			15
6.57% - 7.28% Notes Due 2027 [Member] \| Fixed Rate Debt [Member]
Debt Instrument [Line Items]
Medium Term Notes	8			8
5.25% Eurobond, Due 2013 [Member]
Debt Instrument [Line Items]
Unamortized debt discount						$ (1)
5.25% Eurobond, Due 2013 [Member] \| Fixed Rate Debt [Member]
Debt Instrument [Line Items]
Total debt	177			178
8.29% ESOP Note Due 2013 [Member]
Debt Instrument [Line Items]
Total debt	8			14
8.29% ESOP Note Due 2013 [Member] \| Fixed Rate Debt [Member]
Debt Instrument [Line Items]
Total debt	8			14
6.10% - 6.65% Chinese Renminbi Notes, due 2014 [Member] \| Fixed Rate Debt [Member]
Debt Instrument [Line Items]
Total debt	5			5
2% Other Note Due 2027 [Member] \| Fixed Rate Debt [Member]
Debt Instrument [Line Items]
Total debt				5
Capital Lease Obligations [Member]
Debt Instrument [Line Items]
Capital lease obligations	$ 16			$ 15

Debt and Other Obligations (Schedule of Long-Term Obligations) (Parenthetical) (Detail) $ in Millions	12 Months Ended
	Sep. 30, 2012 USD ($)
Capital Lease Obligations [Member]
Debt Instrument [Line Items]
Debt instrument maturity, maximum range	2040
Variable Rate Debt [Member] \| Revolving Credit Facility Expiry 2016 [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	$ 750
Debt instrument due, year	2016
Variable Rate Debt [Member] \| 5.40% - 7.32% Chinese Renminbi Notes, due through 2016 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate, minimum	5.40%
Debt instrument interest rate, maximum	7.32%
Debt instrument maturity, maximum range	2016
Fixed Rate Debt [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate	3.70%
Debt instrument due, year	2022
Fixed Rate Debt [Member] \| 5% Notes Due 2016 [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate	5.00%
Debt instrument due, year	2016
Fixed Rate Debt [Member] \| 2.55% Notes Due 2018 [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate	2.55%
Debt instrument due, year	2018
Fixed Rate Debt [Member] \| 3.7% Notes Due 2022 [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate	3.70%
Debt instrument due, year	2022
Fixed Rate Debt [Member] \| 7.70% - 8.28% Notes Due 2012 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate, minimum	7.70%
Debt instrument interest rate, maximum	8.28%
Debt instrument maturity, minimum range	2012
Fixed Rate Debt [Member] \| 7.42% Note Due 2018 [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate	7.42%
Debt instrument due, year	2018
Fixed Rate Debt [Member] \| 8.346% - 8.47% Notes Due 2022 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate, minimum	8.346%
Debt instrument interest rate, maximum	8.47%
Debt instrument due, year	2022
Fixed Rate Debt [Member] \| 6.57% - 7.28% Notes Due 2027 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate, minimum	6.57%
Debt instrument interest rate, maximum	7.28%
Debt instrument due, year	2027
Fixed Rate Debt [Member] \| 5.25% Eurobond, Due 2013 [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate	5.25%
Debt instrument due, year	2013
Fixed Rate Debt [Member] \| 8.29% ESOP Note Due 2013 [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate	8.29%
Debt instrument due, year	2013
Fixed Rate Debt [Member] \| 6.10% - 6.65% Chinese Renminbi Notes, due 2014 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate, minimum	6.10%
Debt instrument interest rate, maximum	6.65%
Debt instrument due, year	2014
Fixed Rate Debt [Member] \| 2% Other Note Due 2027 [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate	2.00%
Debt instrument due, year	2027

Debt and Other Obligations (Narrative) (Detail) $ in Millions	1 Months Ended			12 Months Ended
	Jul. 31, 2012 USD ($)	Jun. 30, 2012 USD ($)	Nov. 30, 1988 USD ($)	Sep. 30, 2012 USD ($) yr	Sep. 30, 2011 USD ($)	Sep. 30, 2010 USD ($)	Sep. 30, 2009 USD ($)	Dec. 31, 2003 USD ($)
Debt Instrument [Line Items]
Long-term debt				$ 1,357	$ 613
Public notes issued		$ 350
Issuance of notes, discount recorded		1		2	2
Proceeds from issuance of debt notes		$ 347
Funds borrowed to purchase of Cabot shares				911
Dividends paid to ESOP				2	2	$ 3
Interest payments from ESOP				1	1	2
Capital lease obligations				16	15
Repayments of long-term capital lease obligations				$ 30
Repayment period of capital lease obligation, years \| yr				28
Payment towards imputed interest				$ 14
Original cost of capital lease assets				26	24
Accumulated depreciation of assets under capital leases				11	10
Unsecured short term notes payable to bank				$ 62	$ 86
Weighted-average interest rate on short-term notes payable				5.20%	5.30%
Fixed Rate Debt [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate				3.70%
Long-term debt				$ 1,143	$ 585
Debt instrument due, year				2022
Unsecured medium term notes outstanding issued				$ 53	83
Maturity of the total outstanding medium term notes, years				9 years
Weighted average interest of medium term notes				7.65%
5.25% Eurobond, Due 2013 [Member]
Debt Instrument [Line Items]
Debt maturity date				Sep. 01, 2013
Issuance of notes, discount recorded								$ 1
Proceeds from issuance of debt notes								$ 175
5.25% Eurobond, Due 2013 [Member] \| Fixed Rate Debt [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate				5.25%
Long-term debt				$ 177	178
Debt instrument due, year				2013
Revolving Credit Facility Expiry August 2016 [Member]
Debt Instrument [Line Items]
Revolving credit facility, committed amount				$ 750
Revolving credit facility, agreement period				Aug. 31, 2016
Interest rates are based upon LIBOR plus a spread, spread				1.125%
Debt instrument, interest rate				1.34%
Amount related to issuance of letter of credit, treated as drawn on facility				$ 1
Amount drawn against revolving credit facility				189
Revolving credit facility, outstanding amount				560
Chinese Renminbi Notes [Member]
Debt Instrument [Line Items]
Long-term debt				16	20
5% Notes Due 2016 [Member]
Debt Instrument [Line Items]
Debt maturity date							Oct. 01, 2016
Public notes issued							$ 300
Issuance of notes, discount recorded							$ 2
Proceeds from issuance of debt notes				$ 296
5% Notes Due 2016 [Member] \| Fixed Rate Debt [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate				5.00%
Long-term debt				$ 300	300
Debt instrument due, year				2016
2.55% Notes Due 2018 [Member]
Debt Instrument [Line Items]
Debt maturity date				Jan. 15, 2018
Public notes issued	$ 250
Issuance of notes, discount recorded	1
Proceeds from issuance of debt notes	$ 248
2.55% Notes Due 2018 [Member] \| Fixed Rate Debt [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate				2.55%
Long-term debt				$ 250
Debt instrument due, year				2018
3.7% Notes Due 2022 [Member]
Debt Instrument [Line Items]
Debt maturity date				Jul. 15, 2022
3.7% Notes Due 2022 [Member] \| Fixed Rate Debt [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate				3.70%
Long-term debt				$ 350
Debt instrument due, year				2022
8.29% ESOP Note Due 2013 [Member]
Debt Instrument [Line Items]
Long-term debt				$ 8	14
Debt maturity date				Dec. 31, 2013
Funds borrowed to purchase of Cabot shares			$ 75
Employer contribution to ESOP to service the debt				$ 5	4	$ 4
8.29% ESOP Note Due 2013 [Member] \| Fixed Rate Debt [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate				8.29%
Long-term debt				$ 8	$ 14
Debt instrument due, year				2013
Standby Letter Of Credit [Member]
Debt Instrument [Line Items]
Debt instrument due, year				2014
Standby letters of credit, outstanding amount				$ 20
Issued under the credit agreement				$ 1

Debt and Other Obligations (Schedule of Future Years Payment) (Detail) $ in Millions	Sep. 30, 2012 USD ($)
Future Years Payment [Line Items]
2013	$ 183
2014	18
2015	1
2016	190
2017	301
Thereafter	664
Total	1,357
Principal Payments On Long Term Debt [Member]
Future Years Payment [Line Items]
2013	182
2014	17
2016	189
2017	300
Thereafter	653
Total	1,341
Capital Lease Obligations [Member]
Future Years Payment [Line Items]
2013	1
2014	1
2015	1
2016	1
2017	1
Thereafter	11
Total	$ 16

Fair Value Measurement (Narrative) (Detail) $ in Millions	Sep. 30, 2012 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [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 Observable Inputs (Level 2) [Member] - USD ($)
$ in Millions

Sep. 30, 2012

Sep. 30, 2011

Guaranteed investment contract

^[1]

$ 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

$ 64

$ 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	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2009
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, Carrying Amount	$ 120	$ 286	$ 387	$ 304
GAM Promissory Notes and Inventory Note, Carrying Amount	242
Accounts and notes receivable, Carrying Amount	687	659
Derivative instruments, Carrying Amount		1
Notes payable to banks, Carrying Amount	62	86
Accounts payable and accrued liabilities, Carrying Amount	606	461
Long-term debt, Carrying Amount	1,357	613
Capital lease obligations, Carrying Amount	16	15
Derivative instruments, Carrying Amount	26	39
Cash and cash equivalents, Fair Value	120	286
GAM Promissory Notes and Inventory Note, Fair Value	273
Accounts and notes receivable, Fair Value	687	659
Derivative instruments, Fair Value		1
Notes payable to banks, Fair Value	62	86
Accounts payable and accrued liabilities, Fair Value	606	461
Capital lease obligations, Fair Value	16	15
Derivative instruments, Fair Value	26	39
Fixed Rate [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, Carrying Amount	1,141	585
Long-term debt, Fair Value	1,221	633
Floating Rate [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, Carrying Amount	200	15
Long-term debt, Fair Value	$ 200	$ 15

Fair Value of Financial Instruments (Narrative) (Detail) $ in Millions	Sep. 30, 2012 USD ($)
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items]
Promissory note fair value	$ 273

Financial Instruments (Schedule of Derivatives Fair Value Interest Rate) (Detail) - USD ($) $ in Millions	Sep. 30, 2012	Sep. 30, 2011
Eurobond (20% of $175 million) [Member]
Debt Instrument [Line Items]
Long-term debt	$ 175
Interest Rate Swap-Fixed to Variable [Member] \| Eurobond (20% of $175 million) [Member]
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
Interest Rate Swap-Fixed to Variable [Member] \| Medium Term Notes [Member]
Debt Instrument [Line Items]
Notional amount of interest rate fair value hedge derivatives		$ 23

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

Sep. 30, 2012

USD ($)

Sep. 30, 2012

EUR (€)

Sep. 30, 2011

USD ($)

Sep. 30, 2011

EUR (€)

Eurobond 80% [Member]

Debt Instrument [Line Items]

Long-term debt

$ 175

Percentage of debt hedged by cross currency swaps

80.00%

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

$ 140

€ 124

$ 140

€ 124

Eurobond (20% of $175 million) [Member]

Debt Instrument [Line Items]

Long-term debt

$ 175

Percentage of debt hedged by cross currency swaps

20.00%

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

$ 35

€ 31

Forward Foreign Currency Contracts [Member]

Debt Instrument [Line Items]

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

^[1]

106

Notional Amount of Foreign Currency Cash Flow Hedge Derivatives

^[1]

$ 3

$ 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.

Financial Instruments (Narrative) (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Derivative [Line Items]
Foreign currency exchange rate, remeasurement income (loss)	$ (10)	$ (2)	$ (14)
Bond held by one of Cabot's European subsidiaries	175	175	175
Forward Foreign Currency Contracts [Member]
Derivative [Line Items]
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments	12	1	16
Currency Swap [Member]
Derivative [Line Items]
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments	$ 10	$ 3	$ 7

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

Sep. 30, 2012

Sep. 30, 2011

$ 3

$ 5

Designated as Hedging Instrument [Member]

Designated as Hedging Instrument [Member] | Prepaid Expenses And Other Current Assets, Other Assets, And Other Liabilities [Member] | Interest Rate Risk Management [Member]

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

^[1]

Not Designated as Hedging Instrument [Member]

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

Not Designated as Hedging Instrument [Member] | Prepaid Expenses And Other Current Assets And Other Assets [Member] | Other [Member]

^[2]

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

^[2]

^[1]

$ 28

$ 41

[1]	Contracts of $2 million and $3 million presented on a gross basis in this table at September 30, 2012 and 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 Sheets.
[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" and noncurrent "Other assets" in the Consolidated Balance Sheets.

Financial Instruments (Schedule of Derivative Instruments in Statement of Financial Position, Fair Value) (Parenthetical) (Detail) - USD ($) $ in Millions	Sep. 30, 2012	Sep. 30, 2011
Derivatives, Fair Value [Line Items]
Interest rate contracts with right of offset	$ 2	$ 3

Venezuela (Narrative) (Detail) - Sep. 30, 2012 $ in Millions, in Millions	USD ($) $ / shares	VEF ( ) $ / shares
Nature Of Operations [Line Items]
Operating affiliate investment \| $	$ 25
Due from affiliates, dividends receivable	$ 5	21
Venezuelan Bolivar exchange rate to one USD \| $ / shares	4.30	4.30
Operating Affiliate, Venezuela [Member]
Nature Of Operations [Line Items]
Equity method investment, ownership percentage	49.00%	49.00%

Employee Benefit Plans (Narrative) (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plans, expenses not related to ESOP	$ 7	$ 7	$ 9
Percentage of company funded under ESOP	100.00%
Shares allocated under ESOP	108,696.645
Compensation expense related to the ESOP	$ 5	4	4
Net loss amortized from accumulated other comprehensive income to net periodic benefit cost	6
Amortization of estimated prior service credits	3
Curtailments gain (loss)		1	$ 1
Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Curtailments gain (loss)	1
U.S.defined benefit plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Accumulated benefit obligation	$ 187	140
Weighted-average assumed health care cost trend rate	8.50%
Ultimate weighted-average health care cost trend rate	5.00%
U.S.defined benefit plans [Member] \| Equity [Member]
Defined Benefit Plan Disclosure [Line Items]
Percentage of weighted-average target asset allocation in cash and other securities	61.00%
U.S.defined benefit plans [Member] \| Fixed Income [Member]
Defined Benefit Plan Disclosure [Line Items]
Percentage of weighted-average target asset allocation in cash and other securities	39.00%
Foreign Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Accumulated benefit obligation	$ 398	$ 218
Weighted-average assumed health care cost trend rate	7.90%
Ultimate weighted-average health care cost trend rate	6.00%
Foreign Plans [Member] \| Equity [Member]
Defined Benefit Plan Disclosure [Line Items]
Percentage of weighted-average target asset allocation in cash and other securities	39.00%
Foreign Plans [Member] \| Fixed Income [Member]
Defined Benefit Plan Disclosure [Line Items]
Percentage of weighted-average target asset allocation in cash and other securities	55.00%
Foreign Plans [Member] \| Cash and other securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Percentage of weighted-average target asset allocation in cash and other securities	4.00%
Foreign Plans [Member] \| Real Estate Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Percentage of weighted-average target asset allocation in cash and other securities	2.00%
U.S. Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected contribution	$ 1
Foreign Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected contribution	$ 12

Employee Benefit Plans (Change in Benefit Obligations and Change in Plan Assets) (Detail) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2012

Sep. 30, 2011

Sep. 30, 2010

Fair value of plan assets at beginning of year

$ 300

Fair value of plan assets at end of year

505

$ 300

U.S. Pension Benefits [Member]

147

143

Service cost

$ 5

Settlements or curtailment gain

^[1]

(11)

(9)

(1)

Fair value of plan assets at beginning of year

195

147

143

103

104

Actual return on plan assets

^[1]

(11)

(9)

Expenses paid from assets

(1)

Fair value of plan assets at end of year

149

103

104

(46)

(44)

Foreign Pension Benefits [Member]

^[2]

(46)

(44)

236

241

Service cost

Plan participants' contribution

Foreign currency exchange rate changes

(9)

Settlements or curtailment gain

^[1]

(11)

(16)

(4)

(1)

140

Other

(1)

Fair value of plan assets at beginning of year

422

236

241

197

Actual return on plan assets

Plan participants' contribution

Foreign currency exchange rate changes

^[1]

(11)

(16)

Settlements

(5)

Expenses paid from assets

133

(1)

Fair value of plan assets at end of year

356

197

(66)

(39)

U. S. Postretirement Benefits [Member]

^[2]

(66)

(39)

Service cost

(1)

Settlements or curtailment gain

^[1]

(5)

Plan amendments

(2)

(1)

^[1]

(5)

(64)

Foreign Postretirement Benefits [Member]

^[2]

(64)

Foreign currency exchange rate changes

(1)

^[1]

(1)

$ 15

^[1]

(1)

(18)

(15)

^[2]

$ (18)

$ (15)

[1]	Included in this amount is $7 million and $2 million that the Company paid directly to the participants in its defined benefit plans in fiscal 2012 and 2011, respectively.
[2]	Included in this amount is $4 million of net pension liability as of September 30, 2011 related to the Supermetals Business presented as Noncurrent liabilities held for sale in the Consolidated Balance Sheet.

Employee Benefit Plans (Change in Benefit Obligations and Change in Plan Assets) (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Employee Benefit Plans [Line Items]
Benefits Paid	$ 7	$ 2
Net pension liability		$ 4

This represents the noncurrent liability recognized in the balance sheet that is associated with the defined benefit pension plans.

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

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e2410-114920

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.24)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=21915240&loc=d3e1703-114919

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e2417-114920

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-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.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-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.

The amount of payments made for which participants are entitled under a pension plan, including pension benefits, death benefits, and benefits due on termination of employment. Also includes payments made under a postretirement benefit plan, including prescription drug benefits, health care benefits, life insurance benefits, and legal, educational and advisory services. This item represents a periodic decrease to the plan obligations and a decrease to plan assets.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 60
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6414203&loc=d3e39716-114964

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 30
-Glossary Benefits
-URI http://asc.fasb.org/extlink&oid=6506267

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 60
-Glossary Benefits
-URI http://asc.fasb.org/extlink&oid=6506309

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (a)(6)
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e1928-114920

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Postretirement Benefits
-URI http://asc.fasb.org/extlink&oid=6521376

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (b)(5)
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e1928-114920

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS106-2
-Paragraph 22
-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 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.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-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.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a, 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.

Employee Benefit Plans (Assumptions Used to Determine Benefit Obligations) (Detail)	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
U.S. Pension Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Discount rate	3.50%	4.50%	4.50%
Initial health care cost trend rate	3.50%	3.80%	3.80%
Discount rate	4.50%	4.50%	5.30%
Expected long-term rate of return on plan assets	7.80%	7.80%	7.80%
Initial health care cost trend rate	3.80%	3.80%	3.80%
Foreign Pension Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Discount rate	3.60%	4.80%	4.40%
Initial health care cost trend rate	3.10%	3.10%	3.30%
Discount rate	4.80%	4.30%	5.00%
Expected long-term rate of return on plan assets	5.30%	6.10%	6.10%
Initial health care cost trend rate	3.20%	3.30%	3.40%
U. S. Postretirement Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Discount rate	3.30%	4.50%	4.50%
Initial health care cost trend rate	8.00%	8.50%	7.50%
Discount rate	4.50%	4.50%	5.30%
Initial health care cost trend rate	8.50%	7.50%	8.00%
Foreign Postretirement Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Discount rate	3.90%	4.90%	4.80%
Initial health care cost trend rate	7.40%	8.00%	8.00%
Discount rate	4.90%	4.80%	5.20%
Initial health care cost trend rate	7.90%	8.00%	9.00%

Employee Benefit Plans (Net Amounts Recognized in Consolidated Balance Sheets) (Detail) - USD ($) $ in Millions	Sep. 30, 2012	Sep. 30, 2011
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Noncurrent liabilities	$ (190)	$ (161)
U.S. Pension Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Noncurrent liabilities	(46)	(44)
Foreign Pension Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Noncurrent assets	4	10
Current liabilities	(1)	(1)
Noncurrent liabilities	(69)	(48)
U. S. Postretirement Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Current liabilities	(6)	(6)
Noncurrent liabilities	(58)	(58)
Foreign Postretirement Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Current liabilities	(1)
Noncurrent liabilities	$ (17)	$ (15)

Employee Benefit Plans (Amounts Recognized in Accumulated Other Comprehensive Income (Loss)) (Detail) - USD ($) $ in Millions	Sep. 30, 2012	Sep. 30, 2011
U.S. Pension Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Net actuarial loss	$ 29	$ 34
Net prior service cost (credit)	1	1
Balance in accumulated other comprehensive income, pretax	30	35
Foreign Pension Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Net actuarial loss	77	52
Balance in accumulated other comprehensive income, pretax	77	52
U. S. Postretirement Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Net actuarial loss	3	2
Net prior service cost (credit)	(10)	(14)
Balance in accumulated other comprehensive income, pretax	(7)	(12)
Foreign Postretirement Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Net actuarial loss	3	2
Balance in accumulated other comprehensive income, pretax	$ 3	$ 2

The pretax net amount of gains and losses that are not yet recognized as a component of net periodic benefit cost, and that are recognized as increases or decreases in other comprehensive income as they arise. Gains and losses are due to changes in the value of either the benefit obligation or the plan assets resulting from experience different from that assumed or from a change in an actuarial assumption, or the consequence of a decision to temporarily deviate from the substantive plan.

Amount related to the pretax cost of benefit changes attributable to plan participants' prior service pursuant to a plan amendment or a plan initiation, which has not yet been recognized as components of net periodic benefit cost.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 60
-Glossary Prior Service Cost
-URI http://asc.fasb.org/extlink&oid=6521920

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (j)
-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 220
-SubTopic 10
-Section 45
-Paragraph 10A
-Subparagraph (j)
-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669646-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 30
-Glossary Prior Service Cost
-URI http://asc.fasb.org/extlink&oid=6521884

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-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.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 7
-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 7: http://www.xbrl.org/2003/role/presentationRef
-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.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph i
-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 (Estimated Future Benefit Payments) (Detail) $ in Millions	Sep. 30, 2012 USD ($)
U.S. Pension Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
2013	$ 13
2014	12
2015	12
2016	13
2017	14
2018-2022	76
Foreign Pension Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
2013	17
2014	17
2015	19
2016	21
2017	20
2018-2022	116
U. S. Postretirement Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
2013	6
2014	6
2015	6
2016	5
2017	5
2018-2022	22
Foreign Postretirement Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
2013	1
2014	1
2015	1
2016	1
2017	1
2018-2022	$ 5

Employee Benefit Plans (Net Periodic Defined Benefit Pension and Other Postretirement Benefit Costs) (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
U.S. Pension Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Service cost	$ 5	$ 5	$ 5
Interest cost	7	6	7
Expected return on plan assets	(9)	(8)	(9)
Net losses (gains)	1
Settlements or curtailments cost (income)	1
Net periodic benefit cost	5	3	3
Foreign Pension Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Service cost	7	6	5
Interest cost	11	11	11
Expected return on plan assets	(13)	(13)	(11)
Net losses (gains)	3	3	2
Settlements or curtailments cost (income)	1		1
Other	(1)	2
Net periodic benefit cost	9	9	8
U. S. Postretirement Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Service cost	1	1	1
Interest cost	2	2	3
Amortization of prior service cost (credit)	(3)	(3)	(4)
Settlements or curtailments cost (income)	(1)
Net periodic benefit cost	(1)
Foreign Postretirement Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Interest cost	1	1	1
Net periodic benefit cost	$ 1	$ 1	$ 1

Employee Benefit Plans (Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income) (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
U.S. Pension Benefits [Member]
Net losses (gains)	$ (3)	$ 2	$ 5
Prior service cost	(1)
Amortization of prior unrecognized loss	(1)
Total other comprehensive (loss) income	(5)	2	5
Foreign Pension Benefits [Member]
Net losses (gains)	27	1	12
Amortization of prior unrecognized loss	(3)	(3)	(2)
Other	1		1
Total other comprehensive (loss) income	25	(2)	11
U. S. Postretirement Benefits [Member]
Net losses (gains)	1	(1)	1
Prior service cost	1	(2)
Amortization of prior service (cost) credit	3	4	4
Total other comprehensive (loss) income	5	1	5
Foreign Postretirement Benefits [Member]
Net losses (gains)	1	(1)
Prior service cost
Amortization of prior service (cost) credit
Amortization of prior unrecognized loss
Other
Total other comprehensive (loss) income	$ 1	$ (1)

Employee Benefit Plans (Sensitivity Analysis) (Detail) - Foreign Postretirement Benefits [Member] $ in Millions	12 Months Ended
	Sep. 30, 2012 USD ($)
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
1 -Percent-Point Increase, Effect on postretirement benefit obligation	$ 3
1 -Percent-Point Decrease, Effect on postretirement benefit obligation	$ (2)

Employee Benefit Plans (Defined Benefit Pension Plans Weighted Average Asset Allocations) (Detail)	Sep. 30, 2012	Sep. 30, 2011
U.S. Pension Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Equity securities	62.00%	57.00%
Debt securities	38.00%	43.00%
Total	100.00%	100.00%
Foreign Pension Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Equity securities	39.00%	44.00%
Debt securities	56.00%	50.00%
Cash and other securities	5.00%	6.00%
Total	100.00%	100.00%

Stock-Based Compensation (Narrative) (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2009	Sep. 28, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, authorized shares	8,900,000
Percentage of vesting in first anniversary	30.00%
Percentage of vesting in second anniversary	30.00%
Percentage of vesting in third anniversary	40.00%
Stock based compensation outstanding units	56,892
Cash settled awards	$ 1	$ 1
Net stock-based compensation expense	$ 10	10	$ 11
Closing common stock price					$ 36.57
Estimated weighted average grant date fair values of options granted	$ 11.64
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Percentage of market price	30.00%
Intrinsic value of restricted stock units vested	$ 1	$ 27	$ 11
Awards granted	0	0	0
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of exercise price equal to market price on the date of grant	100.00%
Vesting period (in years)	3 years
Expiration period, years	10 years			5 years
Intrinsic value of options exercised	$ 9	$ 3	$ 1
Cash received from exercises	$ 9	$ 4	$ 3
Estimated weighted average grant date fair values of options granted	$ 11.64	$ 12.09	$ 7.41
Non-Vested Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested	$ 14
Weighted-average period, years	1 year 2 months 12 days
Non-Vested Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested	$ 2
Weighted-average period, years	9 months 18 days
Non-Vested Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average period, years	10 months 24 days
Non-Vested Restricted Stock [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested	$ 1
Supplemental Retirement Savings Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Supplemental retirement savings plan, aggregate value of the accounts, shares	110,000	125,000
Supplemental retirement savings plan aggregate value of the accounts paid in cash	$ 1	$ 1
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Estimated weighted average grant date fair value	$ 33.15	$ 34.76	$ 24.49
Intrinsic value of restricted stock units vested			$ 0
Restricted Stock Units (RSUs) [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of restricted stock units vested	$ 1	$ 1

Stock-Based Compensation (Stock-Based Compensation Expenses) (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense before tax	$ 15	$ 15	$ 18
Income tax benefit	(5)	(5)	(7)
Net stock-based compensation expense	10	10	11
Cost Of Sales [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense before tax	5	5	6
Selling And Administrative Expenses [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense before tax	9	9	11
Research And Technical Expenses [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense before tax	$ 1	$ 1	$ 1

Represents the expense recognized during the period arising from equity-based compensation arrangements (for example, shares of stock, unit, stock options or other equity instruments) with employees, directors and certain consultants qualifying for treatment as employees.

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock-Based Compensation (Equity Incentive Plan Activity) (Detail)

12 Months Ended

Sep. 30, 2012

$ / shares

Stock Options, Total Options, Outstanding at September 30, 2011 | shares

1,772,000

Stock Options, Total Options, Granted | shares

284,000

Stock Options, Total Options, Performance-based adjustment | shares

^[1]

Stock Options, Total Options, Exercised / Vested | shares

(434,000)

Stock Options, Total Options, Cancelled / Forfeited | shares

(43,000)

Stock Options, Total Options, Outstanding at September 30, 2012 | shares

1,579,000

Stock Options, Total Options, Exercisable at September 30, 2012 | shares

983,000

Expected to vest | shares

561,000

^[2]

Stock Options, Weighted Average Exercise Price, Outstanding at September 30, 2011

$ 21.96

Stock Options, Weighted Average Exercise Price, Granted

32.95

Stock Options, Weighted Average Exercise Price, Performance-based adjustment

^[1]

Stock Options, Weighted Average Exercise Price, Exercised / Vested

19.95

Stock Options, Weighted Average Exercise Price, Cancelled / Forfeited

33.64

Stock Options, Weighted Average Exercise Price, Outstanding at September 30, 2012

24.17

Exercisable at September 30, 2012

20.03

Expected to vest

30.95

^[2]

OutStock Options, Weighted Average Grant Date Fair Value, Outstanding at September 30, 2011 outstanding at September 30, 2011

6.06

Stock Options, Weighted Average Grant Date Fair Value, Granted

11.64

Stock Options, Weighted Average Grant Date Fair Value, Performance-based adjustment

^[1]

Stock Options, Weighted Average Grant Date Fair Value, Exercised / Vested

4.72

Stock Options, Weighted Average Grant Date Fair Value, Cancelled / Forfeited

8.26

Stock Options, Weighted Average Grant Date Fair Value, Outstanding at September 30, 2012

$ 7.37

Restricted Stock / Units, Outstanding at September 30, 2012 | shares

56,892

Restricted Stock [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Restricted Stock / Units, Outstanding at September 30, 2011 | shares

3,000

Restricted Stock / Units, Exercised / Vested | shares

(1,000)

Restricted Stock / Units, Outstanding at September 30, 2012 | shares

2,000

Restricted Stock / Units, Weighted Average Grant Date Fair Value, Outstanding at September 30, 2011

$ 9.56

Restricted Stock / Units, Weighted Average Grant Date Fair Value, Exercised / Vested

9.56

Restricted Stock / Units, Weighted Average Grant Date Fair Value, Outstanding at September 30, 2012

$ 9.56

Restricted Stock Units (RSUs) [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Restricted Stock / Units, Outstanding at September 30, 2011 | shares

866,000

^[3]

Restricted Stock / Units, Granted | shares

405,000

^[3]

Restricted Stock / Units, Performance-based adjustment | shares

10,000

^[1],[3]

Restricted Stock / Units, Exercised / Vested | shares

(15,000)

^[3]

Restricted Stock / Units, Cancelled / Forfeited | shares

(35,000)

^[3]

Restricted Stock / Units, Outstanding at September 30, 2012 | shares

1,231,000

^[3]

Restricted Stock / Units, Weighted Average Grant Date Fair Value, Outstanding at September 30, 2011

$ 28.89

Restricted Stock / Units, Weighted Average Grant Date Fair Value, Granted

$ 33.15

Restricted Stock / Units, Weighted Average Grant Date Fair Value, Performance-based adjustment | shares

25.93

^[1]

Restricted Stock / Units, Weighted Average Grant Date Fair Value, Exercised / Vested

$ 25.64

Restricted Stock / Units, Weighted Average Grant Date Fair Value, Cancelled / Forfeited

29.70

Restricted Stock / Units, Weighted Average Grant Date Fair Value, Outstanding at September 30, 2012

$ 30.28

[1]	Represents the net incremental number of shares issuable upon vesting of outstanding performance-based restricted stock units, based on the Company's actual performance against the performance targets for the 2012 performance period of the outstanding units.
[2]	Stock options expected to vest in the future, net of estimated forfeitures, have a weighted average remaining contractual life of 8.3 years.
[3]	The number "Granted" represents the number of shares issuable upon vesting of time-based restricted stock units and performance-based restricted stock units, assuming the Company performs at the target performance level in each year of the three-year performance period.

Stock-Based Compensation (Equity Incentive Plan Activity) (Parenthetical) (Detail)	12 Months Ended
	Sep. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options expected to vest in the future, net of estimated forfeitures, weighted average remaining contractual life, in years	8 years 3 months 18 days

Stock-Based Compensation (Stock Options Outstanding and Vested Options) (Detail) $ in Millions	12 Months Ended
	Sep. 30, 2012 USD ($)
Total Options Outstanding, Aggregate Intrinsic Value	$ 20
Total Options Outstanding, Weighted Average Remaining Contractual Term (in years)	7 years 3 months 18 days
Exercisable Options, Aggregate Intrinsic Value	$ 16
Exercisable Options, Weighted Average Remaining Contractual Term (in years)	6 years 8 months 12 days

Stock-Based Compensation (Weighted-Average Assumptions) (Detail) - USD ($)	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Expected stock price volatility	45.00%	43.00%	42.00%
Risk free interest rate	1.30%	1.80%	2.80%
Expected life of options (years)	6 years	6 years	6 years
Expected annual dividends per year	$ 0.72	$ 0.72	$ 0.72

Restructuring (Recorded Restructuring Activities) (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, period expense	$ 15	$ 18	$ 46
Cost Of Sales [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, period expense	13	16	36
Selling And Administrative Expenses [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, period expense	2	2	10
Research And Technical Expenses [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, period expense

Restructuring (Restructuring Activities and Related Reserves) (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Restructuring Cost and Reserve [Line Items]
Reserve balance	$ 11	$ 19
Charges	15	18	$ 46
Costs charged against assets and other	10	(6)
Proceeds from sale	4	6
Cash paid	(14)	(26)
Foreign currency translation adjustment	(1)
Reserve balance	5	11	19
Severance And Employee Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Reserve balance	9	18
Charges	3	8
Costs charged against assets and other		1
Cash paid	(10)	(17)
Foreign currency translation adjustment		(1)
Reserve balance	2	9	18
Environmental Remediation [Member]
Restructuring Cost and Reserve [Line Items]
Reserve balance		1
Charges	3	3
Cash paid	(2)	(4)
Reserve balance	1		$ 1
Asset Impairment And Accelerated Depreciation [Member]
Restructuring Cost and Reserve [Line Items]
Charges	7	3
Costs charged against assets and other	7	(3)
Asset Sales [Member]
Restructuring Cost and Reserve [Line Items]
Charges	(1)	(1)
Costs charged against assets and other	3	(4)
Proceeds from sale	4	6
Cash paid		(1)
Other [Member]
Restructuring Cost and Reserve [Line Items]
Reserve balance	2
Charges	3	5
Cash paid	(2)	(4)
Foreign currency translation adjustment	(1)	1
Reserve balance	$ 2	$ 2

Restructuring (Narrative) (Detail) $ in Millions	1 Months Ended		12 Months Ended
Restructuring (Narrative) (Detail) $ in Millions	Mar. 31, 2012 Person	Feb. 28, 2011 Person	Sep. 30, 2012 USD ($) Person	Sep. 30, 2011 USD ($)	Sep. 30, 2010 USD ($) Person	Sep. 30, 2009 Facility
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 15	$ 18	$ 46
Restructuring costs in accrued expenses			5	11	$ 19
Gain on sale of facility			191
Proceeds from sale of business			181
Maximum [Member]
Restructuring Cost and Reserve [Line Items]
Accrued severance costs			1
Closure Of Hong Kong [Member]
Restructuring Cost and Reserve [Line Items]
Affected employees \| Person	64
Pre-tax charge to earnings			10
Restructuring charges			6
Expected cumulative net cash outlays related to plan			3
Severance costs			1
Expected cash outlays remainder fiscal year			3
Restructuring costs in accrued expenses			1
Closure Of Hong Kong [Member] \| Maximum [Member]
Restructuring Cost and Reserve [Line Items]
Cash payments			1
Closure Of Hong Kong [Member] \| Other Post Closing Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges			2
Closure Of Grigno [Member]
Restructuring Cost and Reserve [Line Items]
Affected employees \| Person		37
Restructuring charges			5
Severance costs			3
Cash payments			1
Restructuring accelerated depreciation and asset impairments			3
Gain on sale of facility			1
Other costs			1
Proceeds from sale of business			2
Closure Of Grigno [Member] \| Maximum [Member]
Restructuring Cost and Reserve [Line Items]
Expected cash outlays beyond fiscal year			1
Closure Of Thane [Member]
Restructuring Cost and Reserve [Line Items]
Affected employees \| Person					120
Pre-tax charge to earnings			24
Expected cumulative net cash outlays related to plan			8
Severance costs			7
Cash payments			8
Restructuring accelerated depreciation and asset impairments			12
Closure Of Thane [Member] \| Maximum [Member]
Restructuring Cost and Reserve [Line Items]
Expected cash outlays remainder fiscal year			1
Restructuring costs in accrued expenses			1
Closure Of Thane [Member] \| Other Post Closing Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges			2
Closure Of Thane [Member] \| Demolition And Site Clearing Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 3
2009 Global Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Affected employees \| Person			400
Pre-tax charge to earnings			$ 124
Expected cumulative net cash outlays related to plan			72
Severance costs			55
Cash payments			71
Expected cash outlays remainder fiscal year			1
Restructuring costs in accrued expenses			3
Restructuring accelerated depreciation and asset impairments			45
Number of facilities closed \| Facility						3
2009 Global Restructuring [Member] \| Other Post Closing Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges			17
2009 Global Restructuring [Member] \| Demolition And Site Clearing Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges			7
Other Activity [Member]
Restructuring Cost and Reserve [Line Items]
Severance costs			1	$ 5
Cash payments			5
Expected cash outlays remainder fiscal year			1
Restructuring costs in accrued expenses			$ 1

Stockholder's Equity (Narrative) (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2007
Repurchase authorization, shares	1.1	1.6	0.0	10.0
Repurchase authorization, amount	$ 36	$ 50
Shares remaining available for repurchase under the current authorization	1.6
Cash dividends paid	$ 0.76	$ 0.72	$ 0.72

Stockholder's Equity (Schedule of Accumulated Other Comprehensive Income (Loss)) (Detail) - USD ($) $ in Millions	Sep. 30, 2012	Sep. 30, 2011
Foreign currency translation adjustments	$ 167	$ 163
Unrealized holding gain on investments/derivatives		1
Change in funded status of retirement plans	(75)	(58)
Accumulated other comprehensive income	$ 92	$ 106

The total of net gain (loss), prior service cost (credit), and transition assets (obligations), as well as minimum pension liability if still remaining, included in accumulated other comprehensive income associated with a defined benefit pension or other postretirement plan(s) because they have yet to be recognized as components of net periodic benefit cost.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 10A
-Subparagraph (j-k)
-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669646-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e637-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e681-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e1928-114920

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14A
-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669686-108580

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 26
-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 Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 7
-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 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph i
-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.

Accumulated adjustment, net of tax, that results from the process of translating subsidiary financial statements and foreign equity investments into the reporting currency from the functional currency of the reporting entity, net of reclassification of realized foreign currency translation gains or losses.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e681-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e637-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 10A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669646-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14A
-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669686-108580

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6915805&loc=d3e32022-110900

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6450520&loc=d3e32583-110901

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 52
-Paragraph 12, 13
-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 133
-Paragraph 45
-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 52
-Paragraph 31
-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 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-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.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 17, 18, 19, 22, 23, 24, 25, 26
-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.

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e637-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e681-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14A
-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669686-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 31
-Article 5

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 15D
-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 12
-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.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 14, 17, 26
-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 SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 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

12 Months Ended

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2011

Sep. 30, 2011

Jun. 30, 2011

Mar. 31, 2011

Dec. 31, 2010

Sep. 30, 2012

Sep. 30, 2011

Sep. 30, 2010

Basic EPS:

Less: Dividends and dividend equivalents to participating securities

$ 36

$ 66

$ 240

$ 46

$ 50

$ 60

$ 51

$ 75

$ 388

$ 236

$ 154

Less: Undistributed earnings allocated to participating securities

^[1]

Earnings allocated to common shareholders (numerator)

$ 385

$ 233

$ 151

Weighted average common shares and participating securities outstanding

64.0

65.4

65.3

Less: Participating securities

^[1]

0.6

0.8

1.5

Adjusted weighted average common shares (denominator)

63.4

64.6

63.8

Income from continuing operations attributable to Cabot Corporation

$ 2.87

$ 2.80

$ 1.96

3.20

0.82

0.41

Earnings allocated to common shareholders

$ 6.07

$ 3.62

$ 2.37

Diluted EPS:

$ 385

$ 233

$ 151

Plus: Earnings allocated to participating securities

Less: Adjusted earnings allocated to participating securities

^[2]

(3)

Earnings available to common shares (numerator)

$ 385

$ 233

$ 151

Adjusted weighted average common shares outstanding

63.4

64.6

63.8

Common shares issuable

^[3]

0.8

0.5

Adjusted weighted average common shares (denominator)

64.2

65.4

64.3

Income from continuing operations attributable to Cabot Corporation

$ 0.54

$ 0.96

$ 0.78

$ 0.55

$ 0.64

$ 0.73

$ 0.52

$ 0.88

$ 2.83

$ 2.77

$ 1.94

0.02

0.06

2.92

0.16

0.12

0.19

0.24

0.25

3.16

0.80

0.41

$ 0.56

$ 1.02

$ 3.70

$ 0.71

$ 0.76

$ 0.92

$ 0.76

$ 1.13

$ 5.99

$ 3.57

$ 2.35

[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 for outstanding and achieved performance-based stock unit awards issued under Cabot's equity incentive plans using the treasury stock method. For fiscal 2012 and 2011, respectively, 395,532 and 253,000 incremental shares of common stock were not included in the calculation of diluted earnings per share because the inclusion of these shares would have been antidilutive. For fiscal 2010, 193,000 incremental shares of common stock were not included in the calculation of diluted earnings per share because those shares' exercise prices were greater than the average market price of Cabot common stock for that period.

Earnings Per Share (Calculation of Undistributed Earnings) (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income attributable to Cabot Corporation	$ 36	$ 66	$ 240	$ 46	$ 50	$ 60	$ 51	$ 75	$ 388	$ 236	$ 154
Less: Dividends declared on common stock									49	46	46
Less: Dividends and dividend equivalents to participating securities										1	1
Undistributed earnings									339	189	107
Undistributed earnings allocated to common shareholders									336	187	105
Undistributed earnings allocated to participating securities									$ 3	$ 2	$ 2

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

Earnings Per Share (Calculation of Undistributed Earnings) (Parenthetical) (Detail) - shares	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental shares of common stock	395,532	253,000	193,000

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.

Income Taxes (Income (Loss) Before Income Taxes) (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Income Loss From Operations Before Provision Benefit For Income Taxes [Line Items]
Domestic									$ 13	$ (25)	$ 3
Foreign									232	228	163
Income from continuing operations before income taxes and equity in earnings of affiliated companies	$ 36	$ 78	$ 76	$ 55	$ 47	$ 62	$ 48	$ 46	$ 245	$ 203	$ 166

Income Taxes (Provision (Benefit) on Income (Loss)) (Detail) - USD ($) $ in Millions	3 Months Ended							12 Months Ended
	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Reconciliation Of Provision Of Income Taxes [Line Items]
U.S. federal and state, Current								$ (1)	$ (7)	$ (8)
U.S. federal and state, Deferred								(8)	(51)	(14)
U.S. federal and state, Total								(9)	(58)	(22)
Foreign, Current								62	57	51
Foreign, Deferred								2	7	1
Foreign, Total								64	64	52
Total U.S and foreign	$ 16	$ 23	$ 16	$ 2	$ 10	$ 9	$ (15)	$ 55	$ 6	$ 30

The component of total income tax expense for the period comprised of the increase (decrease) in the entity's net foreign deferred tax assets and liabilities attributable to continuing operations as determined by applying the provisions of applicable enacted tax laws of countries other than the country of domicile.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Deferred Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6510177

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.7)
-URI http://asc.fasb.org/extlink&oid=6889476&loc=d3e330036-122817

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

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

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45
-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 Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Subsection 7

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 289
-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.

Raw Material Purchased Under Long Term Purchase Agreements [Line Items]

Income Taxes (Reconciliation Using U.S. Statutory Rate) (Detail) - USD ($) $ in Millions	3 Months Ended							12 Months Ended
	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Income Taxes [Line Items]
Computed tax expense at the federal statutory rate								$ 86	$ 70	$ 58
Impact of taxation at different rates, repatriation and other								(29)	(29)	(26)
Impact of credit for extraordinary repatriation									(24)
Impact of investment incentive credits									(2)	(2)
Impact of foreign losses for which a current tax benefit is not available								5	6	17
State taxes, net of federal effect
U.S. and state benefits from research and experimentation activities								(2)	(3)	(1)
Tax audit settlements								(2)	(12)	(15)
Release of state tax valuation allowance								(8)
Permanent differences, net								5		(1)
Total U.S and foreign	$ 16	$ 23	$ 16	$ 2	$ 10	$ 9	$ (15)	$ 55	$ 6	$ 30

Income Taxes (Components of Deferred Income Taxes) (Detail) - USD ($) $ in Millions	Sep. 30, 2012	Sep. 30, 2011
Income Taxes [Line Items]
Property, plant & equipment	$ 140	$ 73
Pension and other benefits	94	87
Environmental liabilities	2	3
Inventory	12	12
Deferred expenses	12	11
State taxes	5
Net operating loss carry-forwards	194	125
Other tax carry-forwards	73	137
Other	45	28
Subtotal	577	476
Valuation allowances	(169)	(138)
Total deferred tax assets	408	338
Property, plant & equipment	191	28
Intangible assets	107
Pension and other benefits	15	2
Unremitted earnings of non-U.S. subsidiaries	11	18
Inventory	10	3
Other	10	5
Total deferred tax liabilities	$ 344	$ 56

Income Taxes (Narrative) (Detail) - USD ($) $ in Millions	12 Months Ended			36 Months Ended
Income Taxes (Narrative) (Detail) - USD ($) $ in Millions	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2012	Sep. 30, 2009
Income Taxes [Line Items]
Net tax settlements and investment incentive tax credits	$ 11	$ 38	$ 17	$ 11
Tax Benefits from repatriation of high taxed income	8	24		8
Tax settlements	3	14		3
Net tax charge for other miscellaneous items			1
Net operating loss carryforwards	840			840
Other tax credit carryforwards	73			73
Net deferred tax assets	64			64
Tax credits	86			221
Required future taxable operating income	$ 403
Expected term to realize deferred tax asset, years	20 years
Increased/(decreased) valuation allowance	$ 31	12	6
Unrecognized tax benefits	55	65	75	55	$ 81
Unrecognized tax benefits, recorded	39			39
Unrecognized tax benefits, not recorded	16			16
Accruals for penalties	3	3		3
Accruals for interest	15	14		15
Favorable impact on tax provision	44
Total penalties and interest	3	$ 3	$ 3
Non- U.S. Subsidiaries [Member]
Income Taxes [Line Items]
Undistributed earnings	1,073			1,073
U.S. Management [Member]
Income Taxes [Line Items]
Net deferred tax assets	$ 49			$ 49

Income Taxes (Expiration Dates of Carryforwards) (Detail) $ in Millions	12 Months Ended
	Sep. 30, 2012 USD ($)
Significant Tax Attributes And Dates Of Expiration [Line Items]
NOLs	$ 840
Other Credits	$ 73
Expiration periods	2020
2013 To 2019 [Member]
Significant Tax Attributes And Dates Of Expiration [Line Items]
NOLs	$ 329
Other Credits	3
2020 And Thereafter [Member]
Significant Tax Attributes And Dates Of Expiration [Line Items]
NOLs	220
Other Credits	47
Indefinite Carryforward [Member]
Significant Tax Attributes And Dates Of Expiration [Line Items]
NOLs	291
Other Credits	$ 23
Minimum [Member]
Significant Tax Attributes And Dates Of Expiration [Line Items]
Expiration periods	2013
Maximum [Member]
Significant Tax Attributes And Dates Of Expiration [Line Items]
Expiration periods	2019

Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Reconciliation Of Unrecognized Tax Benefits [Line Items]
Balance at beginning of the year	$ 65	$ 75	$ 81
Additions based on tax provisions related to the current year	4	2	6
Additions for tax positions of prior years		1	3
Reductions of tax provisions of prior years	(14)	(13)	(15)
Balance at end of the year	$ 55	$ 65	$ 75

Commitments And Contingencies (Narrative) (Detail)	12 Months Ended
Commitments And Contingencies (Narrative) (Detail)	Sep. 30, 2012 USD ($) Claim yr	Sep. 30, 2011 USD ($) Claim	Sep. 30, 2010 USD ($)
Loss Contingencies [Line Items]
Lease expiration period, years \| yr	10
Rent expense under such operating lease agreement	$ 15,000,000	$ 19,000,000	$ 21,000,000
Aggregate self-insured liability	5,000,000
Retention for medical costs per person per annum	200,000
Interest expense	46,000,000	39,000,000	40,000,000
Non-controlling Interest [Member]
Loss Contingencies [Line Items]
Raw materials purchases	116,000,000	134,000,000	126,000,000
Accounts payable and accrued liabilities	13,000,000	$ 10,000,000
Respirator Liabilities [Member]
Loss Contingencies [Line Items]
Annual fees paid by transferee to transferor company	$ 400,000
Number of claimants \| Claim	42,000	42,000
Respirator reserve on discounted basis	$ 13,000,000
Respirator reserve on undiscounted basis	$ 17,000,000
Discount rate	5.00%
Expected aggregate undiscounted amount of future payments, fiscal 2011	$ 2,000,000
Expected aggregate undiscounted amount of future payments, fiscal 2012	2,000,000
Expected aggregate undiscounted amount of future payments, fiscal 2013	2,000,000
Expected aggregate undiscounted amount of future payments, fiscal 2014	2,000,000
Expected aggregate undiscounted amount of future payments, fiscal 2015	1,000,000
Expected aggregate undiscounted amount of future payments, fiscal 2016 through 2062	8,000,000
Cash payments for respirator reserves	2,000,000	$ 5,000,000	2,000,000
Environmental Matters [Member]
Loss Contingencies [Line Items]
Reserve for environmental matters	7,000,000	6,000,000
Reserve for environmental matters included in accrued expenses	3,000,000	2,000,000
Reserve for environmental matters included in other liabilities	4,000,000	4,000,000
Charges for environmental expense	3,000,000	1,000,000	3,000,000
Cash payments for environmental reserves	$ 2,000,000	2,000,000	1,000,000
Weighted average risk free rate for environmental liability	1.00%
Environmental Matters [Member] \| Operating And Maintenance Component [Member]
Loss Contingencies [Line Items]
Reserve for environmental matters	$ 4,000,000
Expected future payments, 2013	3,000,000
Expected future payments, 2014	1,000,000
Expected future payments, 2015	1,000,000
Expected future payments, 2016	1,000,000
Expected future payments, 2017	1,000,000
Expected future payments, thereafter	1,000,000
Maximum [Member] \| Respirator Liabilities [Member]
Loss Contingencies [Line Items]
Interest expense	1,000,000
Maximum [Member] \| Environmental Matters [Member]
Loss Contingencies [Line Items]
Interest expense	$ 1,000,000	$ 1,000,000	$ 1,000,000

Commitments and Contingencies (Schedule of Future Minimum Rental Commitments under Non-cancelable Leases) (Detail) $ in Millions	Sep. 30, 2012 USD ($)
Operating Leased Assets [Line Items]
2013	$ 22
2014	17
2015	14
2016	10
2017	5
2018 and thereafter	27
Total future minimum rental commitments	$ 95

Commitments and Contingencies (Schedule of Raw Material Purchased under Long Term Purchase Agreements) (Detail) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2012

Sep. 30, 2011

Sep. 30, 2010

$ 370

$ 358

$ 336

Raw Material Purchased Under Long Term Purchase Agreements [Line Items]

312

340

294

Raw Material Purchased Under Long Term Purchase Agreements [Line Items]

$ 18

Raw Material Purchased Under Long Term Purchase Agreements [Line Items]

^[1]

Raw Material Purchased Under Long Term Purchase Agreements [Line Items]

Raw Material Purchased Under Long Term Purchase Agreements [Line Items]

$ 6

Other [Member]

$ 1

[1]	The year ended September 30, 2012 includes two months of purchases for Norit.

Commitments and Contingencies (Schedule of Other Long-Term Commitments) (Detail) $ in Millions	Sep. 30, 2012 USD ($)
Long-term Purchase Commitment [Line Items]
Payments Due by Fiscal Year 2013	$ 452
Payments Due by Fiscal Year 2014	318
Payments Due by Fiscal Year 2015	297
Payments Due by Fiscal Year 2016	235
Payments Due by Fiscal Year 2017	208
Payments Due Thereafter	2,888
Payments Due, Total	4,398
Reinforcement Materials [Member]
Long-term Purchase Commitment [Line Items]
Payments Due by Fiscal Year 2013	386
Payments Due by Fiscal Year 2014	270
Payments Due by Fiscal Year 2015	255
Payments Due by Fiscal Year 2016	195
Payments Due by Fiscal Year 2017	171
Payments Due Thereafter	2,609
Payments Due, Total	3,886
Performance Materials [Member]
Long-term Purchase Commitment [Line Items]
Payments Due by Fiscal Year 2013	40
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 2017	29
Payments Due Thereafter	256
Payments Due, Total	423
Purification Solutions [Member]
Long-term Purchase Commitment [Line Items]
Payments Due by Fiscal Year 2013	21
Payments Due by Fiscal Year 2014	12
Payments Due by Fiscal Year 2015	8
Payments Due by Fiscal Year 2016	8
Payments Due by Fiscal Year 2017	8
Payments Due Thereafter	23
Payments Due, Total	80
Advanced Technologies [Member]
Long-term Purchase Commitment [Line Items]
Payments Due by Fiscal Year 2013	5
Payments Due by Fiscal Year 2014	3
Payments Due by Fiscal Year 2015	1
Payments Due by Fiscal Year 2016
Payments Due by Fiscal Year 2017
Payments Due Thereafter
Payments Due, Total	$ 9

Concentration of Credit Risk (Narrative) (Detail)	12 Months Ended
Concentration of Credit Risk (Narrative) (Detail)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
No Customer Of Concentration Risk [Member]
Concentration of risk percentage	10.00%	10.00%
Goodyear Tire And Rubber Company [Member]
Net sales percentage			12.00%

Concentration of Credit Risk (Schedule of Account Receivable) (Detail) - USD ($) $ in Millions	Sep. 30, 2012	Sep. 30, 2011
Tire Manufacturers [Member]
Concentration Risk [Line Items]
Accounts receivable	$ 346	$ 318

Financial Information by Segment & Geographic Area (Schedule of Performance Segment) (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Segment Reporting Information [Line Items]
Net sales	$ 210	$ 186	$ 186
Performance Materials [Member]
Segment Reporting Information [Line Items]
Net sales	914	880	783
Specialty Carbons and Compounds [Member] \| Performance Materials [Member]
Segment Reporting Information [Line Items]
Net sales	664	626	531
Fumed Metal Oxides Business [Member] \| Performance Materials [Member]
Segment Reporting Information [Line Items]
Net sales	$ 250	$ 254	$ 252

Financial Information by Segment & Geographic Area (Schedule of New Business Segment) (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Segment Reporting Information [Line Items]
Net sales	$ 210	$ 186	$ 186
Inkjet Colorants [Member]
Segment Reporting Information [Line Items]
Net sales	66	65	57
Aerogel [Member]
Segment Reporting Information [Line Items]
Net sales	18	24	24
Security Materials [Member]
Segment Reporting Information [Line Items]
Net sales	9	11	7
Elastomer Composites [Member]
Segment Reporting Information [Line Items]
Net sales	23	17	17
Specialty Fluids [Member]
Segment Reporting Information [Line Items]
Net sales	$ 94	$ 69	$ 81

Financial Information by Segment & Geographic Area Narrative Narrative (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Segment Reporting Information [Line Items]
Income form continuing operations	$ 201	$ 205	$ 143
Specialty Fluids [Member]
Segment Reporting Information [Line Items]
Income form continuing operations	$ 44	$ 22	$ 35

Financial Information by Segment & Geographic Area (Financial Information by Segment) (Detail) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2011

Sep. 30, 2011

Jun. 30, 2011

Mar. 31, 2011

Dec. 31, 2010

Sep. 30, 2012

Sep. 30, 2011

Sep. 30, 2010

$ 848

$ 846

$ 844

$ 762

$ 833

$ 836

$ 739

$ 694

$ 3,300

^[1]

$ 3,102

^[1]

$ 2,716

^[1]

156

139

137

Income (loss) from continuing operations before taxes

$ 4

$ 3

$ 1

$ 2

$ 1

$ 3

^[2]

245

203

166

Total expenditures for additions to long-lived assets

^[3]

4,399

3,141

4,399

3,141

2,886

622

241

^[4]

107

^[4]

^[1]

2,019

1,952

1,660

Income (loss) from continuing operations before taxes

^[2]

227

183

139

Total expenditures for additions to long-lived assets

^[3]

1,527

1,509

1,527

1,509

1,277

163

126

^[4]

^[1]

914

880

783

Income (loss) from continuing operations before taxes

^[2]

128

140

125

Total expenditures for additions to long-lived assets

^[3]

717

661

717

661

544

^[4]

^[1]

210

186

Income (loss) from continuing operations before taxes

^[2]

Total expenditures for additions to long-lived assets

^[3]

209

191

209

191

188

^[4]

^[1]

Income (loss) from continuing operations before taxes

^[2]

Total expenditures for additions to long-lived assets

^[3]

1,433

350

Segment Total [Member]

^[1]

3,204

3,018

2,629

150

131

121

Income (loss) from continuing operations before taxes

^[2]

409

354

314

Total expenditures for additions to long-lived assets

^[3]

3,886

2,361

3,886

2,361

2,009

616

235

^[4]

104

^[4]

Unallocated and Other [Member]

^[1],[2],[5]

Income (loss) from continuing operations before taxes

^[2],[5]

^[2],[5]

(164)

(151)

(148)

Total expenditures for additions to long-lived assets

^[2],[3],[5]

$ 513

$ 780

513

780

877

^[2],[5]

$ 6

^[4]

$ 3

^[4]

[1]	Unallocated and other reflects royalties paid by equity affiliates, external shipping and handling fees, and the impact of the corporate adjustment for unearned revenue.
[2]	Income (loss) from continuing operations before taxes for Unallocated and Other includes:
[3]	Unallocated and Other assets includes cash, marketable securities, cost investments, income taxes receivable, deferred taxes, headquarters' assets, and current and non-current assets held for sale.
[4]	Expenditures for additions to long-lived assets include total equity and other investments (including available-for-sale securities), property, plant and equipment, intangible assets and assets held for rent.
[5]	Unallocated and other includes certain items and eliminations necessary to reflect management's reporting of operating segment results. These items are reflective of the segment reporting presented to the Chief Operating Decision Maker.

Financial Information by Segment & Geographic Area (Royalties Paid by Equity Affiliates and External Shipping and Handling Fees) (Detail) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2011

Sep. 30, 2011

Jun. 30, 2011

Mar. 31, 2011

Dec. 31, 2010

Sep. 30, 2012

Sep. 30, 2011

Sep. 30, 2010

Unallocated and Other [Member]

Total

$ 848

$ 846

$ 844

$ 762

$ 833

$ 836

$ 739

$ 694

$ 3,300

^[1]

$ 3,102

^[1]

$ 2,716

^[1]

Royalties paid by equity affiliates, other operating revenues, and the impact of the corporate adjustment for unearned revenue..............................

(2)

Shipping and handling fees

Total

^[1],[2],[3]

$ 96

$ 84

$ 87

[1]	Unallocated and other reflects royalties paid by equity affiliates, external shipping and handling fees, and the impact of the corporate adjustment for unearned revenue.
[2]	Income (loss) from continuing operations before taxes for Unallocated and Other includes:
[3]	Unallocated and other includes certain items and eliminations necessary to reflect management's reporting of operating segment results. These items are reflective of the segment reporting presented to the Chief Operating Decision Maker.

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

3 Months Ended

12 Months Ended

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2011

Sep. 30, 2011

Jun. 30, 2011

Mar. 31, 2011

Dec. 31, 2010

Sep. 30, 2012

Sep. 30, 2011

Sep. 30, 2010

Interest expense

$ (46)

$ (39)

$ (40)

Equity in net earnings of affiliated companies(b)

$ 3

$ 4

$ 3

$ 1

$ 2

$ 1

$ 3

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

$ 36

$ 78

$ 76

$ 55

$ 47

$ 62

$ 48

$ 46

245

203

166

Unallocated And Other [Member]

Interest expense

(46)

(39)

(40)

Certain items

^[1]

(51)

(19)

(53)

Equity in net earnings of affiliated companies(b)

^[2]

(11)

(8)

(7)

Unallocated corporate costs

^[3]

(56)

(53)

(48)

General unallocated (expense) income

^[4]

(32)

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

$ (164)

$ (151)

$ (148)

[1]	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 fiscal 2012 primarily include $17 million related to global restructuring activities, $26 million for acquisition related charges (consisting of $14 million of legal and professional fees disclosed in Note C, $3 million for certain other one-time integration costs and $9 million of additional charges related to acquisition accounting adjustments for the acquired inventory), $4 million for environmental and legal reserves, and a $4 million addition in the reserve for respirator claims. Certain items, pre-tax, for fiscal 2011 primarily include charges for global restructuring activities discussed in Note P. Certain items, pre-tax, for fiscal 2010 include $46 million related to global restructuring activities, $3 million for environmental reserves and legal settlements, $2 million long-lived asset impairment of land related to a former carbon black site, and a $2 million addition in the reserve for respirator claims.
[2]	Equity in net income of affiliated companies is included in segment EBIT and is removed from Unallocated and other to reconcile to income (loss) from operations before taxes.
[3]	Unallocated corporate costs are not controlled by the segments and primarily benefit corporate interests.
[4]	General unallocated (expense) income consists of gains (losses) arising from foreign currency transactions, net of other foreign currency risk management activities, the impact of accounting for certain inventory on a LIFO basis, and the profit or loss related to the corporate adjustment for unearned revenue. Additionally, for fiscal 2011, this amount included a $3 million charge related to a change in the net worth tax regulations in Colombia, and $3 million related to a portion of the benefit from a legal judgment.

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.

Net sales and other operating revenues

Financial Information by Segment & Geographic Area (Schedule of Income (Loss) Before Taxes for Unallocated and Other) (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Restructuring charges	$ 15	$ 18	$ 46
Benefit from a legal judgment		3
Colombia [Member]
Charge related to change in net worth tax regulations		$ 3
Certain Items [Member]
Restructuring charges	17
Acquisition related charges	26
Legal and professional fees	14
One time integration costs	3
Charges related to acquisition accounting adjustment	9
Environmental reserves and legal settlements	4
Reserve for respirator claim	$ 4		2
Impairment of long-lived assets to be disposed of			2
2009 Global Restructuring [Member] \| Certain Items [Member]
Restructuring charges			46
Environmental reserves and legal settlements			$ 3

Financial Information by Segment & Geographic Area (Revenues from External Customers and Long-Lived Asset Information by Geographic Area) (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2010
Segment Reporting Information [Line Items]
Revenues from external customers	$ 3,300	$ 3,102	$ 2,716
Long-lived assets	1,552	1,036	975
US [Member]
Segment Reporting Information [Line Items]
Revenues from external customers	695	589	546
Long-lived assets	486	233	227
JAPAN [Member]
Segment Reporting Information [Line Items]
Revenues from external customers	330	307	248
Long-lived assets	54	30	41
China [Member]
Segment Reporting Information [Line Items]
Revenues from external customers	543	554	458
Long-lived assets	305	274	203
Other Foreign Countries [Member]
Segment Reporting Information [Line Items]
Revenues from external customers	1,732	1,652	1,464
Long-lived assets	$ 707	$ 499	$ 504

Unaudited Quarterly Financial Information (Schedule of Quarterly Financial Information) (Detail) - USD ($)
$ / shares in Units, $ in Millions

3 Months Ended

12 Months Ended

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2011

Sep. 30, 2011

Jun. 30, 2011

Mar. 31, 2011

Dec. 31, 2010

Sep. 30, 2012

Sep. 30, 2011

Sep. 30, 2010

$ 848

$ 846

$ 844

$ 762

$ 833

$ 836

$ 739

$ 694

$ 3,300

^[1]

$ 3,102

^[1]

$ 2,716

^[1]

Gross profit

157

175

173

143

141

152

134

131

648

558

510

Selling and administrative expenses

285

249

241

Research and technical expenses

Income from operations

290

243

204

Net interest expense and other charges

(16)

(12)

(11)

(6)

(14)

(13)

(6)

(7)

(45)

(40)

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

245

203

166

Benefit (provision) for income taxes

(16)

(23)

(16)

(2)

(10)

(9)

(55)

(6)

(30)

Income from operations of discontinued operations, net of tax

189

205

Net income

245

406

258

169

Net income attributable to noncontrolling interests, net of tax

Income from continuing operations

$ 36

$ 66

$ 240

$ 46

$ 50

$ 60

$ 51

$ 75

$ 388

$ 236

$ 154

$ 0.54

$ 0.96

$ 0.78

$ 0.55

$ 0.64

$ 0.73

$ 0.52

$ 0.88

$ 2.83

$ 2.77

$ 1.94

0.02

0.06

2.92

0.16

0.12

0.19

0.24

0.25

3.16

0.80

0.41