View Filing Data

Weighted-average common shares outstanding, in millions:

$ 20

$ 46

Basic

63.5

Diluted

64.1

64.2

Basic:

Income from continuing operations attributable to Cabot Corporation

$ 0.33

$ 0.55

(0.02)

0.17

Income from continuing operations attributable to Cabot Corporation

0.31

0.72

Diluted:

0.33

0.55

(0.02)

0.16

Dividends per common share

0.31

0.71

$ 0.20

$ 0.18

[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 that is categorized as Unallocated and Other includes:

Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Net income	$ 20	$ 46
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment	14	(15)
Adjustments to pension and other postretirement benefit plans	1	(1)
Net change in unrealized gain on investments	1
Other comprehensive income (loss)	16	(16)
Comprehensive income	40	35
Net income attributable to noncontrolling interests	4	5
Noncontrolling interests foreign currency translation adjustment	1	(2)
Comprehensive income attributable to noncontrolling interests	5	3
Comprehensive income attributable to Cabot Corporation	$ 35	$ 32

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2012	Sep. 30, 2012
Current assets:
Cash and cash equivalents	$ 91	$ 120
Accounts and notes receivable, net of reserve for doubtful accounts of $5 and $5	619	687
Inventories:
Raw materials	143	131
Work in process	5	5
Finished goods	393	351
Other	46	46
Total inventories	587	533
Prepaid expenses and other current assets	82	71
Deferred income taxes	36	32
Total current assets	1,415	1,443
Property, plant and equipment, net	1,566	1,552
Goodwill	494	480
Equity affiliates	116	115
Intangible assets, net of accumulated amortization of $9 and $6	318	330
Assets held for rent	48	46
Notes receivable from sale of business	225	242
Deferred income taxes	98	94
Other assets	96	97
Total assets	4,376	4,399
Current liabilities:
Notes payable to banks	72	62
Accounts payable and accrued liabilities	504	606
Income taxes payable	27	59
Deferred income taxes	6	7
Current portion of long-term debt	188	185
Total current liabilities	797	919
Long-term debt	1,241	1,172
Deferred income taxes	54	55
Other liabilities	315	314
Commitments and contingencies (Note H)
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: 63,740,510 and 63,600,928 shares Outstanding: 63,994,075 and 63,347,362 shares	64	64
Less cost of 253,565 and 253,565 shares of common treasury stock	(8)	(8)
Additional paid-in capital	22	20
Retained earnings	1,660	1,653
Deferred employee benefits	(7)	(8)
Accumulated other comprehensive income	107	92
Total Cabot Corporation stockholders' equity	1,838	1,813
Noncontrolling interests	131	126
Total stockholders' equity	1,969	1,939
Total liabilities and stockholders' equity	$ 4,376	$ 4,399

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions	Dec. 31, 2012	Sep. 30, 2012
Accounts and notes receivable, reserve for doubtful accounts	$ 5	$ 5
Intangible assets accumulated amortization	$ 9	$ 6
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	63,740,510	63,600,928
Common stock, outstanding shares	63,994,075	63,347,362
Common treasury stock, shares	253,565	253,565

Consolidated Statements Of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Cash Flows from Operating Activities:
Net income	$ 24	$ 51
Adjustments to reconcile net income to cash (used in) provided by operating activities:
Depreciation and amortization	49	36
Deferred tax provision	5	7
Equity in earnings of affiliated companies	(3)	(1)
Non-cash compensation	3	5
Changes in assets and liabilities:
Accounts and notes receivable	62	(12)
Inventories	(55)	(46)
Prepaid expenses and other current assets	(11)	9
Accounts payable and accrued liabilities	(91)	(32)
Income taxes payable	(33)	(3)
Other liabilities	(2)	6
Cash dividends received from equity affiliates	3	1
Other	(2)	(1)
Cash (used in) provided by operating activities	(51)	20
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(62)	(61)
Increase in assets held for rent	(2)	(4)
Receipts from notes receivable from sale of business	19
Cash used in investing activities	(45)	(65)
Cash Flows from Financing Activities:
Borrowings under financing arrangements	1	19
Repayments under financing arrangements	(6)	(3)
Proceeds from long-term debt, net of issuance costs	81	1
Repayments of long-term debt	(8)	(10)
Increase (decrease) in notes payable to banks, net	14	(19)
Proceeds from cash contributions received from noncontrolling stockholders		4
Purchases of common stock	(6)	(30)
Proceeds from sales of common stock	4	1
Cash dividends paid to common stockholders	(13)	(12)
Proceeds from restricted stock loan payments		1
Cash provided by (used in) financing activities	67	(48)
Effect of exchange rate changes on cash		(5)
Decrease in cash and cash equivalents	(29)	(98)
Cash and cash equivalents at beginning of period	120	286
Cash and cash equivalents at end of period	$ 91	$ 188

Basis of Presentation

3 Months Ended

Dec. 31, 2012

Basis of Presentation

A. Basis of Presentation

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

The unaudited consolidated financial statements have been prepared in accordance with the requirements of Form 10-Q and consequently do not include all disclosures required by Form 10-K. Additional information may be obtained by referring to Cabot’s Annual Report on Form 10-K for the fiscal year ended September 30, 2012 (“2012 10-K”).

The financial information submitted herewith is unaudited and reflects all adjustments which are, in the opinion of management, necessary to provide a fair statement of the results for the interim periods ended December 31, 2012 and 2011. All such adjustments are of a normal recurring nature. The results for interim periods are not necessarily indicative of the results to be expected for the fiscal year.

On January 20, 2012, the Company completed the sale of its Supermetals Business 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.

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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2134480

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2209116

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2122150

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2197480

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=7880789&loc=SL6228881-111685

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 272
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6373374&loc=d3e70478-108055

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 720
-SubTopic 15
-URI http://asc.fasb.org/subtopic&trid=2122524

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7668296&loc=d3e288-107754

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 915
-SubTopic 235
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6472506&loc=d3e38932-110933

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=18733093&loc=d3e5614-111684

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6359566&loc=d3e326-107755

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 94-6
-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 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 2-6
-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 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 4, 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.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS140-4/FIN46(R)-8
-Paragraph 8, C1, C7
-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

Significant Accounting Policies

3 Months Ended

Dec. 31, 2012

B. Significant Accounting Policies

Revenue Recognition and Accounts Receivable

Cabot recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. Cabot generally is able to ensure that products meet customer specifications prior to shipment. If the Company is unable to determine that the product has met the specified objective criteria prior to shipment or if title has not transferred because of sales terms, the revenue is considered “unearned” and is deferred until the revenue recognition criteria are met.

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

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


	Three months ended
	December 31
	2012			2011
Reinforcement Materials		59	%		67	%
Performance Materials		24	%		28	%
Advanced Technologies		5	%		5	%
Purification Solutions		12	%		N/A

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 segment’s revenue may be recognized using proportional performance. Revenue associated with an Elastomer Composites agreement is accounted for as a multiple element arrangement and recognized ratably over the term of the agreement limited by the cumulative amounts that become due under the terms of the contract. The agreement stipulates certain milestone payments to be received by Cabot upon the achievement of multiple development and technical milestones, as well as quarterly royalty payments through fiscal year 2022.

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.

Cabot maintains allowances for doubtful accounts based on an assessment of the collectability of specific customer accounts, the aging of accounts receivable and other economic information on both a historical and prospective basis. Customer account balances are charged against the allowance when it is probable the receivable will not be recovered. Changes in the allowance during the first three months of fiscal 2013 and 2012 were immaterial. There is no off-balance sheet credit exposure related to customer receivable balances.

Intangible Assets and Goodwill

The Company records tangible and intangible assets acquired and liabilities assumed in business combinations under the acquisition method of accounting. Amounts paid for an acquisition are allocated to the assets acquired and liabilities assumed based on their fair values at the date of acquisition. Goodwill is comprised of the purchase price of business acquisitions in excess of the fair value assigned to the net tangible and identifiable intangible assets acquired. Goodwill is not amortized but is reviewed for impairment annually, or when events or changes in the business environment indicate that the carrying value of the reporting unit may exceed its fair value. The annual review is performed as of May 31.

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 valuation model; and (ii) determination of the intangible assets’ 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 or when events occur or circumstances change that may reduce the fair value of the asset below its carrying amount. The annual review is performed as of May 31. 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.

Income Tax in Interim Periods

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

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

Inventory Valuation

Inventories are stated at the lower of cost or market. The cost of all carbon black inventories in the U.S. is determined using the last-in, first-out (“LIFO”) method. Had the Company used the first-in, first-out (“FIFO”) method instead of the LIFO method for such inventories, the value of those inventories would have been $50 million and $52 million higher as of December 31, 2012 and September 30, 2012, respectively. The cost of Specialty Fluids inventories is determined using the average cost method. The cost of other U.S. and non-U.S. inventories is determined using the FIFO method.

Cabot reviews inventory for both potential obsolescence and potential declines in anticipated selling prices. In this review, the Company makes assumptions about the future demand for and market value of the inventory, and based on these assumptions estimates the amount of any obsolete, unmarketable, slow moving or overvalued inventory. Cabot writes down the value of these inventories by an amount equal to the difference between the cost of the inventory and its estimated market value. There were no significant write-downs in either the three months ended December 31, 2012 or 2011.

Recent accounting pronouncements

In the first quarter of fiscal 2013, the Company adopted guidance that resulted in the addition of separate, but consecutive, statements of comprehensive income.

Acquisition of Norit

3 Months Ended

Dec. 31, 2012

Acquisition of Norit

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. 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 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. During the first quarter of fiscal year 2013, we recorded certain measurement period adjustments which are presented in the table below. The measurement period adjustments and the related tax impact were immaterial to the consolidated financial statements. Accordingly, the effects have not been retrospectively applied. The following table presents the components and preliminary allocation of the purchase price, including the measurement period adjustments:


	At Acquisition Date (As reported at September 30, 2012)			Measurement Period Adjustments			At Acquisition Date (As adjusted and reported at December 31, 2012)
				(Dollars in millions)
Current assets	$	207		$	—		$	207
Property, plant and equipment		385			(6	)		379
Other non-current assets		72			2			74
Intangible assets		325			(9	)		316
Goodwill		432			11			443
Current liabilities		(98	)		—			(98	)
Deferred non-current tax liabilities		(176	)		2			(174	)
Other non-current liabilities		(34	)		—			(34	)

Total purchase price	$	1,113		$	—		$	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 $110 million, $149 million, and $57 million, respectively. Customer relationships and developed technology are being amortized over a weighted average period of 18 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 valuation model; and (ii) determination of the intangible assets’ 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 from the acquisition will not be deductible for tax purposes.

The following table provides pro forma net sales and earnings for the first quarter of fiscal year 2012, as if Norit had been acquired on October 1, 2011. 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 $13 million in the first fiscal quarter of 2012 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, 2011, nor are they indicative of the future operating results of the combined company.


	Three months ended December 31, 2011 (unaudited)
	(Dollars in millions)
Net sales	$	846
Income from continuing operations		37
Income from continuing operations per common share:
Basic	$	0.58
Diluted	$	0.57

Discontinued Operations

3 Months Ended

Dec. 31, 2012

Discontinued Operations

D. Discontinued Operations

In January 2012, the Company sold its Supermetals Business to Global Advanced Metals Pty Ltd., an Australian company (“GAM”), for $452 million, including cash consideration of $175 million received on the closing date and notes receivable (“GAM Notes”) totaling $277 million payable at various dates through March 2014. In addition, the Company is entitled to receive quarterly cash payments in each calendar quarter that the GAM 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 sold business for the relevant calendar quarter, of which a minimum payment of $11.5 million is guaranteed in the first year after the sale regardless of the Adjusted EBITDA generated and is included in the $277 million total of GAM Notes. The carrying value of the GAM Notes at December 31, 2012 is $234 million, of which $9 million is included in Prepaid expenses and other current assets on the Consolidated Balance Sheet as of December 31, 2012 and $225 million is presented as Notes receivable from sale of business.

The after-tax loss from discontinued operations of $1 million for the three months ended December 31, 2012 primarily relates to the settlement of pension liabilities of the disposed business. 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 O.

The following table summarizes the results from discontinued operations during the three months ended December 31, 2012 and 2011:


	Three Months Ended
	December 31
	2012			2011
	(Dollars in millions)
Net sales and other operating revenues	$	—		$	38

Income from operations before income taxes		—			18
Provision for income taxes on operations		—			(7	)

Income from operations, net of tax		—			11

Loss on sale of discontinued operations		(2	)		—
Benefit from income taxes on loss on sale		1			—

Loss on sale of discontinued operations, net of tax		(1	)		—

(Loss) income from discontinued operations, net of tax	$	(1	)	$	11

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 mined 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 continuing operations of the Specialty Fluids Business.

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.

Employee Benefit Plans

3 Months Ended

Dec. 31, 2012

Employee Benefit Plans

E. Employee Benefit Plans

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


	Three Months Ended December 31
	2012						2011						2012					2011
	Pension Benefits												Postretirement Benefits
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign		U.S.			Foreign
	(Dollars in millions)
Service cost	$	1		$	2		$	1		$	1		$	—		$	—	$	—		$	—
Interest cost		2			4			2			3			1			—		1			—
Expected return on plan assets		(3	)		(5	)		(2	)		(3	)		—			—		—			—
service credit		—			—			—			—			(1	)		—		(1	)		—
Amortization of actuarial loss		1			1			—			1			—			—		—			—

Net periodic benefit cost	$	1		$	2		$	1		$	2		$	—		$	—	$	—		$	—

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

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.

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

3 Months Ended

Dec. 31, 2012

F. Goodwill and Other Intangible Assets

Cabot had goodwill balances of $494 million and $480 million at December 31, 2012 and September 30, 2012, respectively. The carrying amount of goodwill attributable to each reportable segment with goodwill balances and the changes in those balances during the period ended December 31, 2012 are as follows:


	Reinforcement Materials			Performance Materials			Advanced Technologies		Purification Solutions		Total
	(Dollars in millions)
Balance at September 30, 2012	$	28		$	11		$	2	$	439	$	480
Measurement period adjustments⁽¹⁾		—			—			—		11		11
Foreign currency translation adjustment		(1	)		(1	)		—		5		3

Balance at December 31, 2012	$	27		$	10		$	2	$	455	$	494

⁽¹⁾	Refer to Note C for further details related to the measurement period adjustments.

Goodwill impairment tests are performed at least annually. The Company performed its most recent annual impairment assessment as of May 31, 2012 and determined there was no impairment.

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


	December 31, 2012							September 30, 2012
	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	$	152	$	(3	)	$	149	$	151	$	(2	)	$	149
Customer relationships⁽¹⁾		112		(3	)		109		121		(1	)		120
Other intangible assets		6		(3	)		3		6		(3	)		3

Total intangible assets, finite lives	$	270	$	(9	)	$	261	$	278	$	(6	)	$	272
Trademarks, indefinite lives		57		—			57		58		—			58

Total intangible assets	$	327	$	(9	)	$	318	$	336	$	(6	)	$	330

⁽¹⁾	Refer to Note C for further details related to the measurement period adjustments to intangible assets.

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 19 years. See Note C for weighted average lives of intangible assets acquired in connection with the acquisition of Norit. Amortization expense for the three months ended December 31, 2012 and 2011 was $3 million and less than $1 million, respectively, and is included in Cost of sales and Selling and administrative expenses in the Consolidated Statements of Operations. Total amortization expense is estimated to be approximately $14 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.

Stockholders' Equity

3 Months Ended

Dec. 31, 2012

Stockholders' Equity

G. 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. There were no shares repurchased during first quarter of fiscal 2013. During the first quarter of fiscal 2012, Cabot repurchased 934,265 shares of its common stock under this authorization for an aggregate purchase price of $30 million. As of December 31, 2012, approximately 1.6 million shares remain available for repurchase under the current authorization.

During the first quarter of fiscal 2013 and 2012, Cabot paid cash dividends of $0.20 and $0.18 per share of common stock for the total of $13 million and $12 million, respectively.

Noncontrolling interests

The following table illustrates the noncontrolling interests activity for the periods presented:


	2012		2011
	(Dollars in millions)
Balance at September 30	$	126	$	129
Net income attributable to noncontrolling interests, net of tax		4		5
Noncontrolling interests foreign currency translation adjustment		1		(2	)
Contribution from noncontrolling interests		—		4

Balance at December 31	$	131	$	136

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

Commitments and Contingencies

Commitments and Contingencies

3 Months Ended

Dec. 31, 2012

H. Commitments and Contingencies

Purchase Commitments

Cabot has entered into long-term purchase agreements primarily for the purchase of raw materials. Under certain of these agreements the quantity of material being purchased is fixed, but the price paid changes as market prices change. For those commitments, the amounts included in the table below are based on market prices at December 31, 2012.


	Payments Due by Fiscal Year
	Remainder of fiscal 2013		2014		2015		2016		2017		Thereafter		Total
	(Dollars in millions)
Reinforcement Materials	$	240	$	253	$	253	$	193	$	169	$	2,590	$	3,698
Performance Materials		29		33		33		32		29		251		407
Advanced Technologies		1		3		1		—		—		—		5
Purification Solutions		17		13		9		8		8		23		78

Total	$	287	$	302	$	296	$	233	$	206	$	2,864	$	4,188

Guarantee Agreements

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

Contingencies

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

Environmental Matters

As of December 31, 2012 and September 30, 2012, Cabot had $6 million and $7 million, respectively, on a discounted basis ($7 million on an undiscounted basis at both December 31, 2012 and September 30, 2012), reserved for environmental matters primarily related to divested businesses. These amounts represent Cabot’s best estimates of its share of costs likely to be incurred at those sites where costs are reasonably estimable based on its analysis of the extent of clean up required, alternative clean up methods available, abilities of other responsible parties to contribute and its interpretation of laws and regulations applicable to each site. Cabot reviews the adequacy of this reserve as circumstances change at individual sites. Cash payments related to these environmental matters were less than $1 million in the first three months of both fiscal 2013 and 2012.

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.

Other Matters

Respirator Liabilities

Cabot has exposure in connection with a safety respiratory products business that a subsidiary acquired from American Optical Corporation (“AO”) in an April 1990 asset purchase transaction. The subsidiary manufactured respirators under the AO brand and disposed of that business in July 1995. In connection with its acquisition of the business, the subsidiary agreed, in certain circumstances, to assume a portion of AO’s liabilities, including costs of legal fees together with amounts paid in settlements and judgments, allocable to AO respiratory products used prior to the 1990 purchase by the Cabot subsidiary.

Generally, these respirator liabilities involve claims for personal injury, including asbestosis, silicosis and coal worker’s pneumoconiosis, allegedly resulting from the use of respirators that are alleged to have been negligently designed 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.

As of both December 31, 2012 and September 30, 2012, there were approximately 42,000 claimants in pending cases asserting claims against AO in connection with respiratory products. Cabot has a reserve to cover its expected share of liability for existing and future respirator liability claims. At both December 31, 2012 and September 30, 2012, the reserve was $13 million on a discounted basis ($17 million on an undiscounted basis at both December 31, 2012 and September 30, 2012). The reserve is being accreted up to the undiscounted liability through interest expense over the expected cash flow period, which is through 2062. Cash payments related to this liability were less than $1 million in the first three months of both fiscal 2013 and 2012.

Other

The Company has various other lawsuits, claims and contingent liabilities arising in the ordinary course of its business and with respect to the Company’s divested businesses. In the opinion of the Company, although final disposition of some or all of these other suits and claims may impact the Company’s financial statements in a particular period, they should not, in the aggregate, have a material adverse effect on the Company’s financial position.

The entire disclosure for commitments and contingencies.

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.

Income Tax Uncertainties

3 Months Ended

Dec. 31, 2012

Income Tax Uncertainties

I. Income Tax Uncertainties

Cabot files U.S. federal and state and non-U.S. income tax returns in jurisdictions with varying statutes of limitations. The 2007 through 2012 tax years 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. Cabot’s significant non-U.S. jurisdictions include Argentina, Canada, China, France, Germany, Italy, Japan, the Netherlands, and the United Kingdom.

Certain Cabot subsidiaries are under audit in jurisdictions outside of the U.S. In addition, certain statutes of limitations are scheduled to expire in the near future. It is reasonably possible that a further change in the unrecognized tax benefits may occur within the next twelve months related to the settlement of one or more of these audits or the lapse of applicable statutes of limitations; however, an estimated range of the impact on the unrecognized tax benefits cannot be quantified at this time.

During the three months ended December 31, 2012, there were no material changes in the amount of unrecognized tax benefits.

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

Earnings Per Share

3 Months Ended

Dec. 31, 2012

Earnings Per Share

J. Earnings Per Share

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


	Three Months Ended December 31
	2012			2011
	(Dollars and shares in millions, except per share amounts)
Basic EPS:
Net income attributable to Cabot Corporation	$	20		$	46
Less: Dividends and dividend equivalents to participating securities		—			—
Less: Undistributed earnings allocated to participating securities⁽¹⁾		—			—

Earnings allocated to common shareholders (numerator)	$	20		$	46

Weighted average common shares and participating securities outstanding		64.1			64.1
Less: Participating securities⁽¹⁾		0.6			0.6

Adjusted weighted average common shares (denominator)		63.5			63.5

Amounts per share - basic:
Income from continuing operations attributable to Cabot Corporation	$	0.33		$	0.55
(Loss) Income from discontinued operations		(0.02	)		0.17

Net income attributable to Cabot Corporation	$	0.31		$	0.72

Diluted EPS:
Earnings allocated to common shareholders	$	20		$	46
Plus: Earnings allocated to participating securities		—			—
Less: Adjusted earnings allocated to participating securities⁽²⁾		—			—

Earnings allocated to common shareholders (numerator)	$	20		$	46

Adjusted weighted average common shares outstanding		63.5			63.5
Effect of dilutive securities:
Common shares issuable⁽³⁾		0.6			0.7

Adjusted weighted average common shares (denominator)		64.1			64.2

Amounts per share - diluted:
Income from continuing operations attributable to Cabot Corporation	$	0.33		$	0.55
(Loss) Income from discontinued operations		(0.02	)		0.16

Net income attributable to Cabot Corporation	$	0.31		$	0.71

⁽¹⁾	Participating securities consist of shares of unvested restricted stock, vested restricted stock awards held by employees in which Cabot has a security interest, and unvested time-based restricted stock units.

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


	Three Months Ended December 31
	2012		2011
	(Dollars in millions)
Calculation of undistributed earnings:
Net income attributable to Cabot Corporation	$	20	$	46
Less: Dividends declared on common stock		13		12
Less: Dividends declared on participating securities		—		—

Undistributed earnings	$	7	$	34

Allocation of undistributed earnings:
Undistributed earnings allocated to common shareholders	$	7	$	34
Undistributed earnings allocated to participating shareholders		—		—

Undistributed earnings	$	7	$	34

⁽²⁾	Undistributed earnings are adjusted for the assumed distribution of dividends to the dilutive securities, which are described in (3) below, and then reallocated to participating securities.

⁽³⁾

Represents incremental shares of common stock from the (i) assumed exercise of stock options issued under Cabot’s equity incentive plans; (ii) assumed issuance of shares to employees pursuant to the Company’s Supplemental Retirement Savings Plan; and (iii) assumed issuance of shares under outstanding performance-based stock unit awards issued under Cabot’s equity incentive plans. For the three months ended December 31, 2012 and 2011, 421,967 and 644,000 incremental shares of common stock, respectively, were not included in the calculation of diluted earnings per share because the inclusion of these shares would have been antidilutive.

Restructuring

3 Months Ended

Dec. 31, 2012

Restructuring

K. Restructuring

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


	Three Months Ended December 31
	2012		2011
	(Dollars in millions)
Cost of sales	$	3	$	2
Selling and administrative expenses		2		1
Research and technical expenses		1		—

Total	$	6	$	3

Details of these restructuring activities and the related reserves during the three months ended December 31, 2012 are as follows:


	Severance and Employee Benefits			Environmental Remediation		Asset Impairment and Accelerated Depreciation			Other			Total
	(Dollars in millions)
Reserve at September 30, 2012	$	2		$	1	$	—		$	2		$	5
Charges		4			—		1			1			6
Costs charged against assets/liabilities		(1	)		1		(1	)		(1	)		(2	)
Cash paid		(2	)		—		—			—			(2	)

Reserve at December 31, 2012	$	3		$	2	$	—		$	2		$	7

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, which impacted 64 employees.

The Company expects the closure plan will result in a total pre-tax charge to earnings of approximately $10 million, not including the potential gain on sale of land. Through December 31, 2012 the Company has charged approximately $7 million to earnings for this restructuring, comprised mainly of accelerated depreciation and severance charges.

Cumulative net cash outlays related to this plan are expected to be approximately $4 million comprised primarily of $2 million for post-close activities, $1 million for severance and $1 million for site clearing and demolition costs. These amounts exclude any potential cash to be received on the sale of land. Through December 31, 2012, Cabot has made cash payments of less than $1 million. The Company expects to make net cash payments of $3 million during the remainder of fiscal 2013 and less than $1 million thereafter.

As of December 31, 2012, Cabot has $1 million of accrued restructuring costs in the Consolidated Balance Sheet related to this site closure for accrued severance charges.

Closure of Thane, India Manufacturing Facility

In fiscal 2010, Cabot ceased manufacturing operations at its carbon black manufacturing facility in Thane, India, which affected approximately 120 employees. 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 $25 million and does not expect to incur significant additional costs related to this plan. These costs are comprised of $7 million for severance and employee benefits, $12 million for accelerated depreciation and asset impairments, $3 million for demolition and site clearing costs and $3 million for other post-closing costs. These amounts exclude any potential gain that may be recognized on the sale of land and certain other manufacturing related assets.

Through December 31, 2012, Cabot has made net cash payments of $9 million associated with this restructuring plan including $6 million of severance and employee benefits, $3 million for demolition and site clearing costs, $3 million of post-closing and other costs, partially offset by proceeds of $3 million from asset sales. The Company expects to make additional severance cash payments of less than $1 million in the remainder of fiscal 2013.

As of December 31, 2012, Cabot has less than $1 million of accrued severance costs in the Consolidated Balance Sheet related to this site closure.

2009 Global Restructuring

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

The Company has recorded a cumulative pre-tax charge of $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 $75 million. Through December 31, 2012, Cabot has made net cash payments of $71 million. During the remainder of fiscal 2013 and thereafter, the Company expects to make net payments totaling $4 million, not including potential proceeds from the sale of a former manufacturing site.

As of December 31, 2012, Cabot has $4 million of restructuring costs in accrued expenses in the Consolidated Balance Sheet related to this plan for accrued environmental remediation and other costs.

Other Activities

Through December 31, 2012, the Company has recorded pre-tax charges of $10 million for severance-related activity at other locations. Cabot has recorded approximately $4 million and less than $1 million during the first three months of fiscal 2013 and 2012, respectively, related to these actions. Through December 31, 2012 Cabot has made cash payments of $7 million related to these activities and expects to pay $2 million in the remainder of fiscal 2013, $1 million in fiscal 2014 and less than $1 million thereafter for severance and other post close operating costs at the impacted locations. As of December 31, 2012, Cabot has $2 million of accrued severance 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.

Financial Instruments and Fair Value Measurements

Financial Instruments and Fair Value Measurements

3 Months Ended

Dec. 31, 2012

L. Financial Instruments and Fair Value Measurements

The FASB authoritative guidance on fair value measurements defines fair value, provides a framework for measuring fair value in generally accepted accounting principles, and requires certain disclosures about fair value measurements. The disclosures focus on the inputs used to measure fair value. The guidance establishes the following hierarchy for categorizing these inputs:

There were no transfers of financial assets or liabilities measured at fair value between Level 1 and Level 2, or transfers into or out of Level 3, during the first three months of either fiscal 2013 or 2012.

The following table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 and September 30, 2012. The derivatives presented in the table below are presented by derivative type, net of the legal right to offset derivative settlements by each counterparty:


	December 31, 2012		September 30, 2012
	Level 2 Inputs		Level 2 Inputs
	(Dollars in millions)
Assets at fair value:
Guaranteed investment contract⁽¹⁾	$	14	$	14
Derivatives relating to foreign currency⁽²⁾		3		—
Derivatives relating to interest rates⁽²⁾		1		2

Total assets at fair value	$	18	$	16

Liabilities at fair value:
Derivatives relating to foreign currency⁽²⁾	$	32	$	28
Hedged long-term debt⁽³⁾		36		36

Total liabilities at fair value	$	68	$	64

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

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

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

At December 31, 2012 and September 30, 2012, the fair values of cash and cash equivalents, accounts and notes receivable, accounts payable and accrued liabilities, and notes payable to banks approximated their carrying values due to the short-term nature of these instruments. The carrying value and fair value of the long-term fixed rate debt were $1.1 billion and $1.2 billion, respectively, at both December 31, 2012 and September 30, 2012. 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 and capital lease obligations approximates its fair value. 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.

The GAM Notes are classified as Level 3 instruments within the fair value hierarchy because they are valued using a valuation model with significant unobservable inputs. The carrying value and fair value of the GAM Notes were $234 million and $233 million, respectively, at December 31, 2012 and the carrying value and fair value were both $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, and timing of expected cash flows from GAM.

Derivatives

3 Months Ended

Dec. 31, 2012

Derivatives

M. Derivatives

Risk Management

Cabot’s business operations are exposed to changes in interest rates, foreign currency exchange rates and commodity prices because Cabot finances certain operations through long and short-term borrowings, denominates transactions in a variety of foreign currencies and purchases certain commoditized raw materials. Changes in these rates and prices may have an impact on future cash flows and earnings. The Company manages these risks through normal operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments.

The Company has policies governing the use of derivative instruments and does not enter into financial instruments for trading or speculative purposes.

By using derivative instruments, Cabot is subject to credit and market risk. If a counterparty fails to fulfill its performance obligations under a derivative contract, Cabot’s credit risk will equal the fair value of the derivative. Generally, when the fair value of a derivative contract is positive, the counterparty owes Cabot, thus creating a payment risk for Cabot. The Company minimizes counterparty credit (or repayment) risk by entering into transactions with major financial institutions of investment grade credit rating. As of December 31, 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 December 31, 2012 or 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 December 31, 2012 and September 30, 2012 to manage interest rate risk.


Description	Borrowing	Notional Amount		Hedge Designation
Description	Borrowing	December 31, 2012	September 30, 2012	Hedge Designation
Interest Rate Swap—Fixed to Variable	Eurobond (20% of $175 million)	USD 35 million	USD 35 million	Fair Value

Foreign Currency Risk Management

Cabot’s international operations are subject to certain risks, including currency exchange rate fluctuations and government actions. Cabot endeavors to match the currency in which debt is issued to the currency of the Company’s major, stable cash receipts. In some situations Cabot has issued debt denominated in U.S. dollars and then entered into cross currency swaps that exchange the dollar principal and interest payments into a currency where the Company expects long-term, stable cash receipts.

Additionally, the Company has foreign currency exposure arising from its net investments in foreign operations. Cabot, from time to time, enters into cross-currency swaps to mitigate the impact of currency rate changes on the Company’s net investments.

The Company also has foreign currency exposure arising from the denomination of assets and liabilities in foreign currencies other than the functional currency of a given subsidiary as well as the risk that currency fluctuations could affect the dollar value of future cash flows generated in foreign currencies. Accordingly, Cabot uses forward contracts to minimize the exposure to foreign currency risk.

In certain situations where the Company has forecasted purchases under a long-term commitment or forecasted sales denominated in a foreign currency, Cabot may enter into appropriate financial instruments in accordance with the Company’s risk management policy to hedge future cash flow exposures. The following table provides details of the derivatives held as of December 31, 2012 and September 30, 2012 to manage foreign currency risk:


		Notional Amount
Description	Borrowing	December 31, 2012	September 30, 2012	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 100 million	USD 106 million	No designation

Forward Foreign Currency Contracts ⁽¹⁾	N/A	—	USD 3 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 derivative instruments using quoted market prices whenever available. When quoted market prices are not available for various types of derivative 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.

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. Although these derivatives do not qualify for hedge accounting, Cabot believes that such instruments are closely correlated with the underlying exposure, thus managing the associated risk. The gains or losses from changes in the fair value of derivative instruments that are not accounted for as hedges are recognized in current period earnings.

For both the three months ended December 31, 2012 and 2011, 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.

For the three months ended December 31, 2012, a gain of $4 million was recognized in earnings as a result of the remeasurement to Euros of the $175 million bond issued by one of Cabot’s European subsidiaries. This gain, which was recognized in earnings through Other income within the Consolidated Statement of Operations, was offset by a loss of $4 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 the three months ended December 31, 2012, Cabot recognized in earnings through Other (expense) income within the Consolidated Statement of Operations gains of $5 million related to its foreign currency forward contracts, which were not designated as hedges.

For the three months ended December 31, 2011, a loss of $9 million was recognized in earnings as a result of the remeasurement to Euros of the $175 million bond issued by one of Cabot’s European subsidiaries. This loss, which was recognized in earnings through Other income within the Consolidated Statement of Operations, was offset by a gain of $8 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 the three months ended December 31, 2011, Cabot recognized in earnings through Other (expense) income within the Consolidated Statement of Operations a loss of less than $1 million related to its foreign currency forward contracts, which were not designated as hedges.

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


	Consolidated Balance Sheet Caption	December 31, 2012		September 30, 2012
		(Dollars in millions)
Fair Value of Derivative Instruments
Asset Derivatives
Derivatives designated as hedges Interest rate⁽¹⁾	Accounts payable and accrued liabilities	$	1	$	2

Total derivatives designated as hedges		$	1	$	2

Derivatives not designated as hedges
Foreign currency	Prepaid expenses and other current assets	$	3	$	—
Other⁽²⁾	Prepaid expenses and other current assets		—		1

Total derivatives not designated as hedges		$	3	$	1

Total Asset Derivatives		$	4	$	3

Liability Derivatives
Derivatives not designated as hedges
Foreign currency⁽¹⁾	Accounts payable and accrued liabilities and Other liabilities	$	32	$	28
Other⁽²⁾	Prepaid expenses and other current assets		—		1

Total derivatives not designated as hedges		$	32	$	29

Total Liability Derivatives		$	32	$	29

⁽¹⁾

Contracts of $1 million and $2 million presented on a gross basis in this table at December 31, 2012 and September 30, 2012, 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 “Accounts payable and accrued liabilities” in the Consolidated Balance Sheet.

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

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.

Financial Information by Segment

Venezuela

3 Months Ended

Feb. 07, 2013

Venezuela

N. 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 December 31, 2012, these subsidiaries carried the operating affiliate investment of $25 million and held 20 million bolivars ($5 million) in cash.

The Venezuelan bolivar may only be exchanged for foreign currencies through certain Venezuelan government controlled channels. The channels available are the Venezuelan central bank (“CADIVI”), and Venezuelan government and government-backed bond offerings. 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 December 31, 2012.

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

Financial Information by Segment

3 Months Ended

Dec. 31, 2012

O. Financial Information by Segment

Cabot is organized into four business segments: Reinforcement Materials, Performance Materials, Advanced Technologies, and Purification Solutions.

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 excludes 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.

Financial information by segment is as follows:


	Reinforcement Materials		Performance Materials		Advanced Technologies		Purification Solutions		Segment Total		Unallocated and Other^(1), (3)			Consolidated Total
Three months ended December 31	(Dollars in millions)
2012
Revenues from external customers⁽²⁾	$	475	$	196	$	38	$	93	$	802	$	18		$	820
Income (loss) before taxes⁽³⁾	$	50	$	26	$	7	$	7	$	90	$	(49	)	$	41
2011
Revenues from external customers⁽²⁾	$	489	$	205	$	39		N/A	$	733	$	29		$	762
Income (loss) before taxes⁽³⁾	$	55	$	21	$	5		N/A	$	81	$	(26	)	$	55

⁽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.


	Three Months Ended December 31
	2012			2011
	(Dollars in millions)
Royalties paid by equity affiliates, other operating revenues, and the impact of corporate adjustments for unearned revenue	$	(1	)	$	9
Shipping and handling fees		19			20

Total	$	18		$	29

⁽³⁾	Income (loss) from continuing operations before taxes that is categorized as Unallocated and Other includes:


	Three Months Ended December 31
	2012			2011
	(Dollars in millions)
Interest expense	$	(16	)	$	(10	)
Total certain items, pre-tax^(a)		(20	)		(5	)
Equity in net earnings of affiliated companies^(b)		(3	)		(1	)
Unallocated corporate costs^(c)		(13	)		(14	)
General unallocated income^(d)		3			4

Total	$	(49	)	$	(26	)

^(a)

Certain items are items that management does not consider to be representative of segment results and they are, therefore, excluded from Segment EBIT. Certain items, pre-tax, for the three months ended December 31, 2012 include $6 million related to global restructuring activities and $14 million for acquisition-related charges (consisting of $3 million for certain other one-time integration costs and $11 of charges related to acquisition accounting adjustments for the acquired inventory). Certain items, pre-tax, for the three months ended December 31, 2011 include $3 million related to global restructuring activities and $2 million for environmental and legal reserves.

^(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 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.

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 the three months ended December 31, 2012 and 2011 are as follows:


	Three Months Ended
	December 31
	2012		2011
	(Dollars in millions)
Specialty Carbons and Compounds	$	132	$	151
Fumed Metal Oxides		64		54

Total Performance Materials	$	196	$	205

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:


	Three Months Ended
	December 31
	2012		2011
	(Dollars in millions)
Inkjet Colorants	$	16	$	15
Aerogel		5		4
Security Materials		1		2
Elastomer Composites		8		4
Specialty Fluids		8		14

Total Advanced Technologies	$	38	$	39

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.

Revenue Recognition and Accounts Receivable

Significant Accounting Policies (Policies)

3 Months Ended

Dec. 31, 2012

Revenue Recognition and Accounts Receivable

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

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


	Three months ended
	December 31
	2012			2011
Reinforcement Materials		59	%		67	%
Performance Materials		24	%		28	%
Advanced Technologies		5	%		5	%
Purification Solutions		12	%		N/A

Intangible Assets and Goodwill

Intangible Assets and Goodwill

Income Tax in Interim Periods

Income Tax in Interim Periods

Inventory Valuation

Inventory Valuation

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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32840-109319

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-URI http://asc.fasb.org/subtopic&trid=2144749

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 954
-SubTopic 740
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6491622&loc=d3e9504-115650

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2144681

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32809-109319

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 45
-Paragraph 25
-URI http://asc.fasb.org/extlink&oid=21917399&loc=d3e32247-109318

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=21917399&loc=d3e32280-109318

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 6-34, 43, 47, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 4
-Paragraph 11
-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 FASB Interpretation (FIN)
-Number 48
-Paragraph 20
-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.

Disclosure of accounting policy for major classes of inventories, bases of stating inventories (for example, lower of cost or market), methods by which amounts are added and removed from inventory classes (for example, FIFO, LIFO, or average cost), loss recognition on impairment of inventories, and situations in which inventories are stated above cost. If inventory is carried at cost, this disclosure includes the nature of the cost elements included in inventory.

Reference 1: 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(b))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 330
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6386783&loc=d3e4492-108314

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 330
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2126999

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 330
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6386783&loc=d3e4556-108314

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6361739&loc=d3e7789-107766

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

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

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

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

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

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

Segment Reporting Revenue Percentage

Significant Accounting Policies (Tables)

3 Months Ended

Dec. 31, 2012

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


	Three months ended
	December 31
	2012			2011
Reinforcement Materials		59	%		67	%
Performance Materials		24	%		28	%
Advanced Technologies		5	%		5	%
Purification Solutions		12	%		N/A

Acquisition of Norit (Tables)

3 Months Ended

Dec. 31, 2012

Components and Allocation of Purchase Price

The following table presents the components and preliminary allocation of the purchase price, including the measurement period adjustments:


	At Acquisition Date (As reported at September 30, 2012)			Measurement Period Adjustments			At Acquisition Date (As adjusted and reported at December 31, 2012)
				(Dollars in millions)
Current assets	$	207		$	—		$	207
Property, plant and equipment		385			(6	)		379
Other non-current assets		72			2			74
Intangible assets		325			(9	)		316
Goodwill		432			11			443
Current liabilities		(98	)		—			(98	)
Deferred non-current tax liabilities		(176	)		2			(174	)
Other non-current liabilities		(34	)		—			(34	)

Total purchase price	$	1,113		$	—		$	1,113

Pro Forma Net Sales and Results of Operations


	Three months ended December 31, 2011 (unaudited)
	(Dollars in millions)
Net sales	$	846
Income from continuing operations		37
Income from continuing operations per common share:
Basic	$	0.58
Diluted	$	0.57

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.

Components of Discontinued Operations

Discontinued Operations (Tables)

3 Months Ended

Dec. 31, 2012

The following table summarizes the results from discontinued operations during the three months ended December 31, 2012 and 2011:


	Three Months Ended
	December 31
	2012			2011
	(Dollars in millions)
Net sales and other operating revenues	$	—		$	38

Income from operations before income taxes		—			18
Provision for income taxes on operations		—			(7	)

Income from operations, net of tax		—			11

Loss on sale of discontinued operations		(2	)		—
Benefit from income taxes on loss on sale		1			—

Loss on sale of discontinued operations, net of tax		(1	)		—

(Loss) income from discontinued operations, net of tax	$	(1	)	$	11

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

Net Periodic Defined Benefit Pension and Other Postretirement Benefit Costs

Employee Benefit Plans (Tables)

3 Months Ended

Dec. 31, 2012

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


	Three Months Ended December 31
	2012						2011						2012					2011
	Pension Benefits												Postretirement Benefits
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign		U.S.			Foreign
	(Dollars in millions)
Service cost	$	1		$	2		$	1		$	1		$	—		$	—	$	—		$	—
Interest cost		2			4			2			3			1			—		1			—
Expected return on plan assets		(3	)		(5	)		(2	)		(3	)		—			—		—			—
service credit		—			—			—			—			(1	)		—		(1	)		—
Amortization of actuarial loss		1			1			—			1			—			—		—			—

Net periodic benefit cost	$	1		$	2		$	1		$	2		$	—		$	—	$	—		$	—

Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Dec. 31, 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 period ended December 31, 2012 are as follows:


	Reinforcement Materials			Performance Materials			Advanced Technologies		Purification Solutions		Total
	(Dollars in millions)
Balance at September 30, 2012	$	28		$	11		$	2	$	439	$	480
Measurement period adjustments⁽¹⁾		—			—			—		11		11
Foreign currency translation adjustment		(1	)		(1	)		—		5		3

Balance at December 31, 2012	$	27		$	10		$	2	$	455	$	494

⁽¹⁾	Refer to Note C for further details related to the measurement period adjustments.

Schedule of Intangible Assets

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


	December 31, 2012							September 30, 2012
	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	$	152	$	(3	)	$	149	$	151	$	(2	)	$	149
Customer relationships⁽¹⁾		112		(3	)		109		121		(1	)		120
Other intangible assets		6		(3	)		3		6		(3	)		3

Total intangible assets, finite lives	$	270	$	(9	)	$	261	$	278	$	(6	)	$	272
Trademarks, indefinite lives		57		—			57		58		—			58

Total intangible assets	$	327	$	(9	)	$	318	$	336	$	(6	)	$	330

⁽¹⁾	Refer to Note C for further details related to the measurement period adjustments to intangible assets.

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

Schedule of Activity in Noncontrolling Interest

Stockholders' Equity (Tables)

3 Months Ended

Dec. 31, 2012

The following table illustrates the noncontrolling interests activity for the periods presented:


	2012		2011
	(Dollars in millions)
Balance at September 30	$	126	$	129
Net income attributable to noncontrolling interests, net of tax		4		5
Noncontrolling interests foreign currency translation adjustment		1		(2	)
Contribution from noncontrolling interests		—		4

Balance at December 31	$	131	$	136

Commitments and Contingencies (Tables)

3 Months Ended

Dec. 31, 2012

Schedule of Other Long-Term Commitments

For those commitments, the amounts included in the table below are based on market prices at December 31, 2012.


	Payments Due by Fiscal Year
	Remainder of fiscal 2013		2014		2015		2016		2017		Thereafter		Total
	(Dollars in millions)
Reinforcement Materials	$	240	$	253	$	253	$	193	$	169	$	2,590	$	3,698
Performance Materials		29		33		33		32		29		251		407
Advanced Technologies		1		3		1		—		—		—		5
Purification Solutions		17		13		9		8		8		23		78

Total	$	287	$	302	$	296	$	233	$	206	$	2,864	$	4,188

Earnings Per Share (Tables)

3 Months Ended

Dec. 31, 2012

Components of Basic and Diluted Earnings Per Common Share

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


	Three Months Ended December 31
	2012			2011
	(Dollars and shares in millions, except per share amounts)
Basic EPS:
Net income attributable to Cabot Corporation	$	20		$	46
Less: Dividends and dividend equivalents to participating securities		—			—
Less: Undistributed earnings allocated to participating securities⁽¹⁾		—			—

Earnings allocated to common shareholders (numerator)	$	20		$	46

Weighted average common shares and participating securities outstanding		64.1			64.1
Less: Participating securities⁽¹⁾		0.6			0.6

Adjusted weighted average common shares (denominator)		63.5			63.5

Amounts per share - basic:
Income from continuing operations attributable to Cabot Corporation	$	0.33		$	0.55
(Loss) Income from discontinued operations		(0.02	)		0.17

Net income attributable to Cabot Corporation	$	0.31		$	0.72

Diluted EPS:
Earnings allocated to common shareholders	$	20		$	46
Plus: Earnings allocated to participating securities		—			—
Less: Adjusted earnings allocated to participating securities⁽²⁾		—			—

Earnings allocated to common shareholders (numerator)	$	20		$	46

Adjusted weighted average common shares outstanding		63.5			63.5
Effect of dilutive securities:
Common shares issuable⁽³⁾		0.6			0.7

Adjusted weighted average common shares (denominator)		64.1			64.2

Amounts per share - diluted:
Income from continuing operations attributable to Cabot Corporation	$	0.33		$	0.55
(Loss) Income from discontinued operations		(0.02	)		0.16

Net income attributable to Cabot Corporation	$	0.31		$	0.71

⁽¹⁾	Participating securities consist of shares of unvested restricted stock, vested restricted stock awards held by employees in which Cabot has a security interest, and unvested time-based restricted stock units.

Calculation of Undistributed Earnings

The calculation of undistributed earnings is as follows:


	Three Months Ended December 31
	2012		2011
	(Dollars in millions)
Calculation of undistributed earnings:
Net income attributable to Cabot Corporation	$	20	$	46
Less: Dividends declared on common stock		13		12
Less: Dividends declared on participating securities		—		—

Undistributed earnings	$	7	$	34

Allocation of undistributed earnings:
Undistributed earnings allocated to common shareholders	$	7	$	34
Undistributed earnings allocated to participating shareholders		—		—

Undistributed earnings	$	7	$	34

⁽²⁾	Undistributed earnings are adjusted for the assumed distribution of dividends to the dilutive securities, which are described in (3) below, and then reallocated to participating securities.

⁽³⁾

Restructuring (Tables)

3 Months Ended

Dec. 31, 2012

Recorded Restructuring Activities

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


	Three Months Ended December 31
	2012		2011
	(Dollars in millions)
Cost of sales	$	3	$	2
Selling and administrative expenses		2		1
Research and technical expenses		1		—

Total	$	6	$	3

Restructuring Activities and Related Reserves

Details of these restructuring activities and the related reserves during the three months ended December 31, 2012 are as follows:


	Severance and Employee Benefits			Environmental Remediation		Asset Impairment and Accelerated Depreciation			Other			Total
	(Dollars in millions)
Reserve at September 30, 2012	$	2		$	1	$	—		$	2		$	5
Charges		4			—		1			1			6
Costs charged against assets/liabilities		(1	)		1		(1	)		(1	)		(2	)
Cash paid		(2	)		—		—			—			(2	)

Reserve at December 31, 2012	$	3		$	2	$	—		$	2		$	7

Financial Instruments and Fair Value Measurements (Tables)

3 Months Ended

Dec. 31, 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.


	December 31, 2012		September 30, 2012
	Level 2 Inputs		Level 2 Inputs
	(Dollars in millions)
Assets at fair value:
Guaranteed investment contract⁽¹⁾	$	14	$	14
Derivatives relating to foreign currency⁽²⁾		3		—
Derivatives relating to interest rates⁽²⁾		1		2

Total assets at fair value	$	18	$	16

Liabilities at fair value:
Derivatives relating to foreign currency⁽²⁾	$	32	$	28
Hedged long-term debt⁽³⁾		36		36

Total liabilities at fair value	$	68	$	64

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

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

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

Derivatives (Tables)

3 Months Ended

Dec. 31, 2012

Foreign Currency Risk Management

The following table provides details of the derivatives held as of December 31, 2012 and September 30, 2012 to manage foreign currency risk:


		Notional Amount
Description	Borrowing	December 31, 2012	September 30, 2012	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 100 million	USD 106 million	No designation

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


	Consolidated Balance Sheet Caption	December 31, 2012		September 30, 2012
		(Dollars in millions)
Fair Value of Derivative Instruments
Asset Derivatives
Derivatives designated as hedges Interest rate⁽¹⁾	Accounts payable and accrued liabilities	$	1	$	2

Total derivatives designated as hedges		$	1	$	2

Derivatives not designated as hedges
Foreign currency	Prepaid expenses and other current assets	$	3	$	—
Other⁽²⁾	Prepaid expenses and other current assets		—		1

Total derivatives not designated as hedges		$	3	$	1

Total Asset Derivatives		$	4	$	3

Liability Derivatives
Derivatives not designated as hedges
Foreign currency⁽¹⁾	Accounts payable and accrued liabilities and Other liabilities	$	32	$	28
Other⁽²⁾	Prepaid expenses and other current assets		—		1

Total derivatives not designated as hedges		$	32	$	29

Total Liability Derivatives		$	32	$	29

⁽¹⁾

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

Interest Rate Risk Management [Member]

Schedule of Derivatives Fair Value Interest Rate

The following table provides details of the derivatives held as of December 31, 2012 and September 30, 2012 to manage interest rate risk.


Description	Borrowing	Notional Amount		Hedge Designation
Description	Borrowing	December 31, 2012	September 30, 2012	Hedge Designation
Interest Rate Swap—Fixed to Variable	Eurobond (20% of $175 million)	USD 35 million	USD 35 million	Fair Value

Financial Information by Segment (Tables)

3 Months Ended

Dec. 31, 2012

Financial Information by Segment


	Reinforcement Materials		Performance Materials		Advanced Technologies		Purification Solutions		Segment Total		Unallocated and Other^(1), (3)			Consolidated Total
Three months ended December 31	(Dollars in millions)
2012
Revenues from external customers⁽²⁾	$	475	$	196	$	38	$	93	$	802	$	18		$	820
Income (loss) before taxes⁽³⁾	$	50	$	26	$	7	$	7	$	90	$	(49	)	$	41
2011
Revenues from external customers⁽²⁾	$	489	$	205	$	39		N/A	$	733	$	29		$	762
Income (loss) before taxes⁽³⁾	$	55	$	21	$	5		N/A	$	81	$	(26	)	$	55

⁽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.


	Three Months Ended December 31
	2012			2011
	(Dollars in millions)
Royalties paid by equity affiliates, other operating revenues, and the impact of corporate adjustments for unearned revenue	$	(1	)	$	9
Shipping and handling fees		19			20

Total	$	18		$	29

⁽³⁾	Income (loss) from continuing operations before taxes that is categorized as Unallocated and Other includes:

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

Income (loss) from continuing operations before taxes that is categorized as Unallocated and Other includes:


	Three Months Ended December 31
	2012			2011
	(Dollars in millions)
Interest expense	$	(16	)	$	(10	)
Total certain items, pre-tax^(a)		(20	)		(5	)
Equity in net earnings of affiliated companies^(b)		(3	)		(1	)
Unallocated corporate costs^(c)		(13	)		(14	)
General unallocated income^(d)		3			4

Total	$	(49	)	$	(26	)

^(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)

Schedule of Performance Segment

The net sales from each of these businesses for the three months ended December 31, 2012 and 2011 are as follows:


	Three Months Ended
	December 31
	2012		2011
	(Dollars in millions)
Specialty Carbons and Compounds	$	132	$	151
Fumed Metal Oxides		64		54

Total Performance Materials	$	196	$	205

Schedule of New Business Segment

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


	Three Months Ended
	December 31
	2012		2011
	(Dollars in millions)
Inkjet Colorants	$	16	$	15
Aerogel		5		4
Security Materials		1		2
Elastomer Composites		8		4
Specialty Fluids		8		14

Total Advanced Technologies	$	38	$	39

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

Significant Accounting Policies (Segment Reporting Revenue Percentage) (Detail)	3 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Reinforcement Materials [Member]
Segment Reporting Information [Line Items]
Revenue, by segment	59.00%	67.00%
Performance Materials [Member]
Segment Reporting Information [Line Items]
Revenue, by segment	24.00%	28.00%
Advanced Technologies [Member]
Segment Reporting Information [Line Items]
Revenue, by segment	5.00%	5.00%
Purification Solutions [Member]
Segment Reporting Information [Line Items]
Revenue, by segment	12.00%

Significant Accounting Policies (Narrative) (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2012	Sep. 30, 2012
Significant Accounting Policies [Line Items]
Royalty Agreement Contingent Payment Description	Quarterly royalty payments through fiscal year 2022
Value of inventories under FIFO method	$ 50	$ 52

Acquisition of Norit (Narrative) (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jul. 31, 2012
Business Acquisition [Line Items]
Acquisition paying	$ 1,113	$ 1,113	$ 1,100
Amortized period	19 years
Fair value of the assets acquired includes trade receivables	$ 46
Acquisition-related Costs [Member]
Business Acquisition [Line Items]
Non-recurring adjustments in pro forma earnings	13
Trademarks [Member]
Business Acquisition [Line Items]
Intangible assets	57
Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets	$ 110
Amortized period	18 years
Developed Technology [Member]
Business Acquisition [Line Items]
Intangible assets	$ 149
Amortized period	20 years

Acquisition of Norit (Components and Allocation of Purchase Price) (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Sep. 30, 2012	Jul. 31, 2012
Business Acquisition [Line Items]
Current assets	$ 207	$ 207
Property, plant and equipment	379	385
Other non-current assets	74	72
Intangible assets	316	325
Goodwill	443	432
Current liabilities	(98)	(98)
Deferred non-current tax liabilities	(174)	(176)
Other non-current liabilities	(34)	(34)
Total purchase price	1,113	$ 1,113	$ 1,100
Measurement Period Adjustments [Member]
Business Acquisition [Line Items]
Current assets
Property, plant and equipment	(6)
Other non-current assets	2
Intangible assets	(9)
Goodwill	11
Current liabilities
Deferred non-current tax liabilities	2
Other non-current liabilities
Total purchase price

Acquisition of Norit (Pro Forma Net Sales and Results of Operations) (Detail) $ / shares in Units, $ in Millions	3 Months Ended
	Dec. 31, 2011 USD ($) $ / shares
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net sales \| $	$ 846
Income from continuing operations \| $	$ 37
Income from continuing operations per common share:
Basic \| $ / shares	$ 0.58
Diluted \| $ / shares	$ 0.57

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) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Sep. 30, 2012
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total consideration from sale of business	$ 452.0
Cash payment, transactions closes	$ 175.0
GAM Promissory Notes and Inventory Note, final maturity date	2014-03
Contingent payment, percentage of quarterly cash payments of adjusted EBITDA	50.00%
Contingent payment, based on future performance of the acquired business	$ 11.5
Promissory note fair value	277.0
Promissory note included in other asset section	225.0		$ 242.0
Promissory note included in prepaid and other current assets	9.0
After-tax gain (loss) on the sale of discontinued operations	1.0
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	$ 234.0

Discontinued Operations (Components of Discontinued Operations) (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net sales and other operating revenues		$ 38
Income from operations before income taxes		18
Provision for income taxes on operations		(7)
Income from operations, net of tax		11
Loss on sale of discontinued operations	(2)
Benefit from income taxes on loss on sale	1
Loss on sale of discontinued operations, net of tax	(1)
(Loss) income from discontinued operations, net of tax	$ (1)	$ 11

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

Goodwill And Other Intangible Asset [Line Items]

Employee Benefit Plans (Net Periodic Defined Benefit Pension and Other Postretirement Benefit Costs) (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
U.S. Pension Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Service cost	$ 1	$ 1
Interest cost	2	2
Expected return on plan assets	(3)	(2)
service credit
Amortization of actuarial loss	1
Net periodic benefit cost	1	1
Foreign Pension Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Service cost	2	1
Interest cost	4	3
Expected return on plan assets	(5)	(3)
service credit
Amortization of actuarial loss	1	1
Net periodic benefit cost	2	2
U. S. Postretirement Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Service cost
Interest cost	1	1
Expected return on plan assets
service credit	(1)	(1)
Amortization of actuarial loss
Net periodic benefit cost
Foreign Postretirement Benefits [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Service cost
Interest cost
Expected return on plan assets
service credit
Amortization of actuarial loss
Net periodic benefit cost

Goodwill and Other Intangible Assets (Narrative) (Detail) - USD ($)	1 Months Ended	3 Months Ended
	May 31, 2012	Dec. 31, 2012	Dec. 31, 2011	Sep. 30, 2012
Goodwill And Intangible Assets [Line Items]
Goodwill		$ 494,000,000		$ 480,000,000
Goodwill annual impairment	$ 0
Useful life of intangible assets		19 years
Amortization expense estimated for year one		$ 14,000,000
Amortization expense estimated for year two		14,000,000
Amortization expense estimated for year three		14,000,000
Amortization expense estimated for year four		14,000,000
Amortization expense estimated for year five		14,000,000
Selling, General And Administrative Expenses [Member]
Goodwill And Intangible Assets [Line Items]
Amortization of Intangible assets		$ 3,000,000	$ 1,000,000
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

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

3 Months Ended

Dec. 31, 2012

USD ($)

$ 480

^[1]

Reinforcement Materials [Member]

494

Goodwill And Other Intangible Asset [Line Items]

^[1]

(1)

Performance Materials [Member]

Goodwill And Other Intangible Asset [Line Items]

^[1]

(1)

Advanced Technologies [Member]

Goodwill And Other Intangible Asset [Line Items]

^[1]

Purification Solutions [Member]

Goodwill And Other Intangible Asset [Line Items]

439

^[1]

$ 455

[1]	Refer to Note C for further details related to the measurement period adjustments to intangible assets.

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

Dec. 31, 2012

Sep. 30, 2012

Trademarks, indefinite lives

$ 270

$ 278

Gross Carrying Value

327

336

(9)

(6)

Developed Technology [Member]

261

272

Net Intangible Assets

318

330

Goodwill And Other Intangible Assets [Line Items]

152

151

(3)

(2)

Customer Relationships [Member]

149

Goodwill And Other Intangible Assets [Line Items]

^[1]

112

121

^[1]

(3)

(1)

Other Intangible Assets [Member]

^[1]

109

120

Goodwill And Other Intangible Assets [Line Items]

(3)

$ 3

[1]	Refer to Note C for further details related to the measurement period adjustments to intangible assets.

Stockholders Equity (Narrative) (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Sep. 30, 2007
Noncontrolling Interest [Line Items]
Repurchase authorization, shares	0	934,265	10,000,000
Repurchase authorization, amount		$ 30
Shares remaining available for repurchase under the current authorization		1,600,000
Cash dividends paid	$ 0.20	$ 0.18
Common stock value outstanding	$ 13	$ 12

Stockholders Equity (Schedule of Activity In Noncontrolling Interest) (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Equity And Noncontrolling Interests [Line Items]
Balance at September 30	$ 126	$ 129
Net income attributable to noncontrolling interests, net of tax	4	5
Noncontrolling interests foreign currency translation adjustment	1	(2)
Contribution from noncontrolling interests		4
Balance at December 31	$ 131	$ 136

Amount of Net Income (Loss) attributable to noncontrolling interest.

Amount after tax and reclassification adjustments, resulting from the process of expressing in the reporting currency of the reporting entity those amounts that are denominated or measured in a different currency, and from transactions whose terms are denominated in a currency other than the entity's functional currency, which is attributable to noncontrolling interests.

Reference 1: 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 2: 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 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 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 5: 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 6: 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.

Commitments and Contingencies (Schedule of Other Long-Term Commitments) (Detail) $ in Millions	Dec. 31, 2012 USD ($)
Long-term Purchase Commitment [Line Items]
Payments Due by Remainder of Fiscal Year 2013	$ 287
Payments Due by Fiscal Year 2014	302
Payments Due by Fiscal Year 2015	296
Payments Due by Fiscal Year 2016	233
Payments Due by Fiscal Year 2017	206
Payments Due Thereafter	2,864
Payments Due, Total	4,188
Reinforcement Materials [Member]
Long-term Purchase Commitment [Line Items]
Payments Due by Remainder of Fiscal Year 2013	240
Payments Due by Fiscal Year 2014	253
Payments Due by Fiscal Year 2015	253
Payments Due by Fiscal Year 2016	193
Payments Due by Fiscal Year 2017	169
Payments Due Thereafter	2,590
Payments Due, Total	3,698
Performance Materials [Member]
Long-term Purchase Commitment [Line Items]
Payments Due by Remainder of Fiscal Year 2013	29
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	251
Payments Due, Total	407
Advanced Technologies [Member]
Long-term Purchase Commitment [Line Items]
Payments Due by Remainder of Fiscal Year 2013	1
Payments Due by Fiscal Year 2014	3
Payments Due by Fiscal Year 2015	1
Payments Due, Total	5
Purification Solutions [Member]
Long-term Purchase Commitment [Line Items]
Payments Due by Remainder of Fiscal Year 2013	17
Payments Due by Fiscal Year 2014	13
Payments Due by Fiscal Year 2015	9
Payments Due by Fiscal Year 2016	8
Payments Due by Fiscal Year 2017	8
Payments Due Thereafter	23
Payments Due, Total	$ 78

Commitments and Contingencies (Narrative) (Detail) $ in Millions	3 Months Ended
	Dec. 31, 2012 USD ($) Claim	Sep. 30, 2012 USD ($) Claim	Dec. 31, 2011 USD ($)
Environmental Matters [Member]
Loss Contingencies [Line Items]
Reserve for environmental matters on discount	$ 6	$ 7
Reserve for environmental matters on undiscounted basis	7	$ 7
Cash payments for environmental reserves	1
Environmental Matters [Member] \| Maximum [Member]
Loss Contingencies [Line Items]
Cash payments for environmental reserves			$ 1
Respirator Liabilities [Member]
Loss Contingencies [Line Items]
Cash payments for environmental reserves	$ 1
Number of claimants \| Claim	42,000	42,000
Respirator reserve on discounted basis	$ 13	$ 13
Respirator reserve on undiscounted basis	$ 17	$ 17
Respirator Liabilities [Member] \| Maximum [Member]
Loss Contingencies [Line Items]
Cash payments for environmental reserves			$ 1

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

Dec. 31, 2012

Dec. 31, 2011

Basic EPS:

Less: Dividends and dividend equivalents to participating securities

$ 20

$ 46

Less: Undistributed earnings allocated to participating securities

^[1]

Earnings allocated to common shareholders (numerator)

$ 20

$ 46

Weighted average common shares and participating securities outstanding

64.1

Less: Participating securities

^[1]

0.6

Adjusted weighted average common shares (denominator)

63.5

Income from continuing operations attributable to Cabot Corporation

$ 0.33

$ 0.55

(0.02)

0.17

Earnings allocated to common shareholders

$ 0.31

$ 0.72

Diluted EPS:

$ 20

$ 46

Plus: Earnings allocated to participating securities

Less: Adjusted earnings allocated to participating securities

^[2]

Earnings allocated to common shareholders (numerator)

$ 20

$ 46

Adjusted weighted average common shares outstanding

63.5

Common shares issuable

^[2]

0.6

0.7

Adjusted weighted average common shares (denominator)

64.1

64.2

Income from continuing operations attributable to Cabot Corporation

$ 0.33

$ 0.55

(0.02)

0.16

$ 0.31

$ 0.71

[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.

Earnings Per Share (Calculation of Undistributed Earnings) (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income attributable to Cabot Corporation	$ 20	$ 46
Less: Dividends declared on common stock	13	12
Less: Dividends declared on participating securities
Undistributed earnings	7	34
Undistributed earnings allocated to common shareholders	7	34
Undistributed earnings allocated to participating shareholders

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	3 Months Ended	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental shares of common stock	421,967	644,000

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.

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

Restructuring (Recorded Restructuring Activities) (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, period expense	$ 6	$ 3
Cost Of Sales [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, period expense	3	2
Selling And Administrative Expenses [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, period expense	2	$ 1
Research And Technical Expenses [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, period expense	$ 1

Restructuring (Restructuring Activities and Related Reserves) (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Restructuring Cost and Reserve [Line Items]
Reserve balance	$ 5
Charges	6	$ 3
Costs charged against assets/liabilities	(2)
Cash paid	(2)
Reserve balance	7
Severance and Employee Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Reserve balance	2
Charges	4
Costs charged against assets/liabilities	(1)
Cash paid	(2)
Reserve balance	3
Environmental Remediation [Member]
Restructuring Cost and Reserve [Line Items]
Reserve balance	1
Costs charged against assets/liabilities	1
Reserve balance	2
Asset Impairment And Accelerated Depreciation [Member]
Restructuring Cost and Reserve [Line Items]
Charges	1
Costs charged against assets/liabilities	(1)
Other [Member]
Restructuring Cost and Reserve [Line Items]
Reserve balance	2
Charges	1
Costs charged against assets/liabilities	(1)
Reserve balance	$ 2

Restructuring (Narrative) (Detail) $ in Millions	1 Months Ended	3 Months Ended		12 Months Ended
Restructuring (Narrative) (Detail) $ in Millions	Mar. 31, 2012 Person	Dec. 31, 2012 USD ($) Person	Dec. 31, 2011 USD ($)	Sep. 30, 2010 Person	Sep. 30, 2009 Facility	Sep. 30, 2012 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 6	$ 3
Restructuring costs in accrued expenses		$ 7				$ 5
2009 Global Restructuring Plan [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		75
Severance costs		55
Cash payments		71
Expected cash outlays remainder fiscal year		4
Restructuring costs in accrued expenses		4
Restructuring accelerated depreciation and asset impairments		45
Number of facilities closed \| Facility					3
2009 Global Restructuring Plan [Member] \| Demolition And Site Clearing Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		7
2009 Global Restructuring Plan [Member] \| Other Post Closing Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		17
Closure Of Hong Kong [Member]
Restructuring Cost and Reserve [Line Items]
Affected employees \| Person	64
Pre-tax charge to earnings		10
Restructuring charges		7
Expected cumulative net cash outlays related to plan		4
Severance costs		1
Site clearing and demolition costs		1
Expected cash outlays remainder fiscal year		3
Expected cash outlays beyond fiscal year		1
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 Thane [Member]
Restructuring Cost and Reserve [Line Items]
Affected employees \| Person				120
Pre-tax charge to earnings		25
Severance costs		7
Restructuring accelerated depreciation and asset impairments		12
Closure Of Thane [Member] \| Maximum [Member]
Restructuring Cost and Reserve [Line Items]
Accrued severance		1
Closure Of Thane [Member] \| Through December 2012 [Member]
Restructuring Cost and Reserve [Line Items]
Severance costs		6
Cash payments		9
Proceeds from sale of assets		3
Closure Of Thane [Member] \| Through December 2012 [Member] \| Maximum [Member]
Restructuring Cost and Reserve [Line Items]
Expected cash outlays remainder fiscal year		1
Closure Of Thane [Member] \| Demolition And Site Clearing Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		3
Closure Of Thane [Member] \| Demolition And Site Clearing Costs [Member] \| Through December 2012 [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		3
Closure Of Thane [Member] \| Other Post Closing Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		3
Closure Of Thane [Member] \| Other Post Closing Costs [Member] \| Through December 2012 [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		3
Restructuring Activities Other [Member] \| Severance Costs [Member]
Restructuring Cost and Reserve [Line Items]
Pre-tax charge to earnings		10
Severance costs		4	$ 1
Accrued severance		2
Cash payments		7
Severance costs after one year		$ 2

Financial Instruments and 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

Dec. 31, 2012

Sep. 30, 2012

Guaranteed investment contract

^[1]

$ 14

Derivatives relating to foreign currency

^[2]

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

$ 68

$ 64

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

Financial Instruments and Fair Value Measurements (Narrative) (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Sep. 30, 2012
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Carrying value of long-term debt	$ 1,100	$ 1,200
Fair value of long-term debt	1,100	1,200
GAM notes carrying value	225	242
GAM notes fair value	$ 233	$ 252

Derivatives (Schedule of Derivatives Fair Value Interest Rate) (Detail) - Interest Rate Swap-Fixed to Variable [Member] - Eurobond 20% [Member] - USD ($) $ in Millions	Dec. 31, 2012	Sep. 30, 2012
Debt Instrument [Line Items]
Percentage of debt hedged by interest rate derivatives	20.00%
Short-term debt	$ 175
Notional amount of interest rate fair value hedge derivatives	$ 35	$ 35

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

Dec. 31, 2012

USD ($)

Dec. 31, 2012

EUR (€)

Sep. 30, 2012

USD ($)

Sep. 30, 2012

EUR (€)

Eurobond 20% [Member]

Debt Instrument [Line Items]

Short-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

$ 35

€ 31

Eurobond 80% [Member]

Debt Instrument [Line Items]

Short-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

Forward Foreign Currency Contracts [Member]

Debt Instrument [Line Items]

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

^[1]

$ 100

106

Notional Amount of Foreign Currency Cash Flow Hedge Derivatives

^[1]

$ 3

[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.

Derivatives (Narrative) (Detail) - USD ($) $ in Millions	3 Months Ended
Derivatives (Narrative) (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Dec. 31, 2011
Derivative [Line Items]
Foreign currency exchange rate, remeasurement income (loss)	$ 4	$ 9
Bond held by one of Cabot's European subsidiaries	175	175
Forward Foreign Currency Contracts [Member]
Derivative [Line Items]
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments	5	1
Currency Swap [Member]
Derivative [Line Items]
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments	$ 4	$ 8

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

Dec. 31, 2012

Sep. 30, 2012

$ 4

$ 3

Designated as Hedging Instrument [Member]

Designated as Hedging Instrument [Member] | Accounts payable and accrued liabilities [Member] | Interest Rate Risk Management [Member]

Not Designated as Hedging Instrument [Member]

^[1]

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

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 [Member]

^[2]

^[1]

$ 32

$ 28

[1]	Contracts of $1 million and $2 million presented on a gross basis in this table at December 31, 2012 and September 30, 2012, 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 "Accounts payable and accrued liabilities" in the Consolidated Balance Sheet.
[2]	Contracts in an asset and liability position presented on a gross basis in this table have the legal right of offset and, therefore, are presented on a net basis in "Prepaid expenses and other current assets" in the Consolidated Balance Sheet.

Derivatives (Schedule of Derivative Instruments in Statement of Financial Position, Fair Value) (Parenthetical) (Detail) - USD ($) $ in Millions	Dec. 31, 2012	Sep. 30, 2012
Derivatives, Fair Value [Line Items]
Interest rate contracts with right of offset	$ 1	$ 2

Venezuela (Narrative) (Detail) - 3 months ended Dec. 31, 2012 $ in Millions, in Millions	USD ($) $ / shares	VEF ( )
Nature Of Operations [Line Items]
Operating affiliate investment \| $	$ 25
Due from affiliates, dividends cash	$ 5	20
Venezuelan Bolivar exchange rate to one USD \| $ / shares	4.30
Operating Affiliate, Venezuela [Member]
Nature Of Operations [Line Items]
Equity method investment, ownership percentage	49.00%

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

3 Months Ended

Dec. 31, 2012

Dec. 31, 2011

^[1]

$ 820

$ 762

Reinforcement Materials [Member]

^[2]

^[1]

475

489

Performance Materials [Member]

^[2]

^[1]

196

205

Advanced Technologies [Member]

^[2]

^[1]

Purification Solutions [Member]

^[2]

^[1]

^[2]

Segment Total [Member]

^[1]

802

733

Unallocated And Other [Member]

^[2]

^[1],[2],[3]

^[2],[3]

$ (49)

$ (26)

[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 that is categorized as 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 (Financial Information by Segment) (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Segment Reporting Information [Line Items]
Royalties paid by equity affiliates, other operating revenues, and the impact of corporate adjustments for unearned revenue	$ (1)	$ 9
Shipping and handling fees	19	20
Total	$ 18	$ 29

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

3 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Equity in net earnings of affiliated companies

Interest expense

$ (16)

$ (10)

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

^[1]

Unallocated And Other [Member]

Total certain items, pre-tax

Interest expense

(16)

(10)

^[2]

(20)

(5)

Equity in net earnings of affiliated companies

^[3]

(3)

(1)

Unallocated corporate costs

^[4]

(13)

(14)

General unallocated income

^[5]

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

$ (49)

$ (26)

[1]	Income (loss) from continuing operations before taxes that is categorized as Unallocated and Other includes:
[2]	Certain items are items that management does not consider to be representative of segment results and they are, therefore, excluded from Segment EBIT. Certain items, pre-tax, for the three months ended December 31, 2012 include $6 million related to global restructuring activities and $14 million for acquisition-related charges (consisting of $3 million for certain other one-time integration costs and $11 of charges related to acquisition accounting adjustments for the acquired inventory). Certain items, pre-tax, for the three months ended December 31, 2011 include $3 million related to global restructuring activities and $2 million for environmental and legal reserves.
[3]	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.
[4]	Unallocated corporate costs are not controlled by the segments and primarily benefit corporate interests.
[5]	General unallocated 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.

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.