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Weighted-average common shares outstanding, in millions:

$ 80

$ 20

Basic

64.2

63.5

Diluted

64.8

64.1

Basic:

Income from continuing operations attributable to Cabot Corporation

$ 1.24

$ 0.33

(0.02)

Income from continuing operations attributable to Cabot Corporation

1.24

0.31

Diluted:

1.23

0.33

(0.02)

Dividends per common share

1.23

0.31

$ 0.20

[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 and Notes receivable.
[2]	Income (loss) from continuing operations before taxes that are categorized as Unallocated and Other includes:

Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions

3 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Amounts Reclassified Out Of Accumulated Other Comprehensive Income Loss [Abstract]

Net income

$ 86

$ 24

Other comprehensive (loss) income, net of tax

Foreign currency translation adjustment (net of tax of $- and ($7))

(21)

Unrealized gain and losses on investments

Unrealized holding gains arising during the period (net of tax of $- and $-)

Pension and other postretirement benefit liability adjustments

Amortization of net loss and prior service benefit included in net periodic pension cost (net of tax of $- and $1)

Other comprehensive (loss) income

(21)

^[1]

Comprehensive income

Net income attributable to noncontrolling interests, net of tax

Noncontrolling interests foreign currency translation adjustment, net of tax

(1)

Comprehensive income attributable to noncontrolling interests, net of tax

Comprehensive income attributable to Cabot Corporation

$ 60

$ 35

[1]	The amounts reclassified during the three months ended December 31, 2013 were less than $1 million.

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Amounts Reclassified Out Of Accumulated Other Comprehensive Income Loss [Abstract]
Foreign currency translation adjustment, tax		$ (7)
Unrealized holding gains arising during the period, tax
Amortization of net loss and prior service benefit included in net periodic pension cost, tax		$ 1

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2013	Sep. 30, 2013
Current assets:
Cash and cash equivalents	$ 105	$ 95
Accounts and notes receivable, net of reserve for doubtful accounts of $12 and $8	696	634
Inventories:
Raw materials	128	102
Work in process	2	2
Finished goods	339	310
Other	44	44
Total inventories	513	458
Prepaid expenses and other current assets	65	58
Notes receivable from sale of business	215	214
Deferred income taxes	21	36
Total current assets	1,615	1,495
Property, plant and equipment, net	1,641	1,605
Goodwill	559	504
Equity affiliates	78	119
Intangible assets, net	364	310
Assets held for rent	53	49
Deferred income taxes	62	68
Other assets	83	83
Total assets	4,455	4,233
Current liabilities:
Notes payable	421	264
Accounts payable and accrued liabilities	487	534
Income taxes payable	38	30
Deferred income taxes	4	2
Current portion of long-term debt	19	14
Total current liabilities	969	844
Long-term debt	1,026	1,020
Deferred income taxes	32	21
Other liabilities	264	265
Redeemable preferred stock	28
Commitments and contingencies (Note I)
Preferred stock:
Authorized: 2,000,000 shares of $1 par value Issued and Outstanding: None and none
Common stock:
Authorized: 200,000,000 shares of $1 par value Issued: 64,612,793 and 64,223,985 shares Outstanding: 64,360,252 and 63,970,502 shares	65	64
Less cost of 252,541 and 253,483 shares of common treasury stock	(8)	(8)
Additional paid-in capital	43	39
Retained earnings	1,822	1,755
Deferred employee benefits		(2)
Accumulated other comprehensive income	83	103
Total Cabot Corporation stockholders' equity	2,005	1,951
Noncontrolling interests	131	132
Total stockholders' equity	2,136	2,083
Total liabilities and stockholders' equity	$ 4,455	$ 4,233

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2013	Sep. 30, 2013
Statement Of Financial Position [Abstract]
Accounts and notes receivable, reserve for doubtful accounts	$ 12	$ 8
Preferred stock, Authorized shares	2,000,000	2,000,000
Preferred stock, par value	$ 1	$ 1
Preferred stock, Issued shares	0	0
Preferred stock, Outstanding shares	0	0
Common stock, Authorized shares	200,000,000	200,000,000
Common stock, par value	$ 1	$ 1
Common stock, Issued shares	64,612,793	64,223,985
Common stock, Outstanding shares	64,360,252	63,970,502
Common treasury stock, shares	252,541	253,483

Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Cash Flows from Operating Activities:
Net income	$ 86	$ 24
Adjustments to reconcile net income to cash used in operating activities:
Depreciation and amortization	51	49
Impairment of assets	3
Deferred tax provision	3	5
Gain on existing investment in NHUMO	(29)
Equity in earnings of affiliated companies	(2)	(3)
Non-cash compensation	4	3
Other	2
Changes in assets and liabilities:
Accounts and notes receivable	(34)	62
Inventories	(39)	(55)
Prepaid expenses and other current assets	(13)	(11)
Accounts payable and accrued liabilities	(62)	(91)
Income taxes payable	4	(33)
Other liabilities	(7)	(2)
Cash dividends received from equity affiliates	17	3
Other	(2)	(2)
Cash used in operating activities	(18)	(51)
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(42)	(62)
Receipts from notes receivable from sale of business		19
Change in assets held for rent	(4)	(2)
Cash paid for acquisition of business, net of cash acquired of $7	(73)
Cash used in investing activities	(119)	(45)
Cash Flows from Financing Activities:
Borrowings under financing arrangements	8	1
Repayments under financing arrangements		(6)
Proceeds from long-term debt, net of issuance costs	11	81
Repayments of long-term debt	(1)	(8)
Increase in notes payable, net		14
Proceeds from issuance of commercial paper, net	149
Purchases of common stock	(6)	(6)
Proceeds from sales of common stock	7	4
Cash dividends paid to common stockholders	(13)	(13)
Cash provided by financing activities	155	67
Effect of exchange rate changes on cash	(8)
Increase (decrease) in cash and cash equivalents	10	(29)
Cash and cash equivalents at beginning of period	95	120
Cash and cash equivalents at end of period	$ 105	$ 91

Consolidated Statements of Cash Flows (Parenthetical) $ in Millions	3 Months Ended
	Dec. 31, 2013 USD ($)
Statement Of Cash Flows [Abstract]
Cash acquired in acquisition of business	$ 7

Basis of Presentation	3 Months Ended
Basis of Presentation	Dec. 31, 2013
Accounting Policies [Abstract]
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, 2013 (“2013 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, 2013 and 2012. All such adjustments are of a normal recurring nature. The results for interim periods are not necessarily indicative of the results to be expected for the fiscal year. In November 2013, the Company purchased all of Grupo Kuo S.A.B. de C.V.’s (“KUO”) common stock in NHUMO, S.A. de C.V. (“NHUMO”), a carbon black joint venture between the Company and KUO in Mexico, which represented approximately 60% of the outstanding common stock of NHUMO (the “NHUMO transaction”). Prior to this transaction, the Company owned approximately 40% of the outstanding common stock of NHUMO, and the NHUMO entity was accounted for as an equity affiliate of the Company. The financial position, results of operations and cash flows of NHUMO are included in the consolidated company’s consolidated financial statements from the date of acquisition.

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

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Significant Accounting Policies

Significant Accounting Policies

3 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

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
	2013			2012

Reinforcement Materials		59	%		59	%
Performance Materials		25	%		24	%
Purification Solutions		9	%		12	%
Advanced Technologies		7	%		5	%

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 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.

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. Cabot has technology and licensing agreements with one customer that are accounted for as multiple element arrangements. Revenue is recognized ratably over the term of the agreements, limited by the cumulative amounts that become due, some of which are through 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.

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

Property, Plant and Equipment

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

Intangible Assets and Goodwill

The Company records tangible and intangible assets acquired and liabilities assumed in business combinations under the acquisition method of accounting. Amounts paid for an acquisition are allocated to the assets acquired and liabilities assumed based on their fair values at the date of acquisition. Goodwill is comprised of the purchase price of business acquisitions in excess of the fair value assigned to the net tangible and identifiable intangible assets acquired. Goodwill is not amortized but is reviewed for impairment annually, as of May 31, or when events or changes in the business environment indicate that the carrying value of the reporting unit may exceed its fair value. A reporting unit, for the purpose of the impairment test, is at or below the operating segment level, and constitutes a business for which discrete financial information is available and regularly reviewed by segment management. The separate businesses included within Performance Materials and Advanced Technologies are considered separate reporting units. Goodwill balances relative to these segments are recorded in the Fumed Metal Oxides reporting unit within Performance Materials and the Security Materials reporting unit within Advanced Technologies.

For the purpose of the goodwill impairment test, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value amount and as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. Alternatively, the Company may elect to proceed directly to the two-step goodwill impairment test. If an initial qualitative assessment identifies that it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value, an additional quantitative evaluation is performed under the two-step impairment test. If based on the quantitative evaluation the fair value of the reporting unit is less than its carrying amount, the Company performs an analysis of the fair value of all assets and liabilities of the reporting unit. If the implied fair value of the reporting unit’s goodwill is determined to be less than its carrying amount, an impairment is recognized for the difference. The fair value of a reporting unit is based on discounted estimated future cash flows. The assumptions used to estimate fair value include management’s best estimates of future growth rates, operating cash flows, capital expenditures, and discount rates over an estimate of the remaining operating period at the reporting unit level. Should the fair value of any of our reporting units decline because of reduced operating performance, market declines, or other indicators of impairment, or as a result of changes in the discount rate, charges for impairment may be necessary.

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 fair 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. The Company may first perform a qualitative assessment to determine whether it is necessary to perform the quantitative impairment test or bypass the qualitative assessment and proceed directly to performing the quantitative impairment test. The quantitative impairment test is based on discounted estimated future cash flows. The assumptions used to estimate fair value include management’s best estimates of future growth rates and discount rates over an estimate of the remaining operating period at the unit of accounting level. The Company’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.

Long-lived Assets

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

To test for impairment of assets the Company generally uses a probability-weighted estimate of the future undiscounted net cash flows of the assets over their remaining lives to determine if the value of the asset is recoverable. Long-lived assets are grouped with other assets and liabilities at the lowest level for which independent identifiable cash flows are determinable.

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 $55 million higher as of both December 31, 2013 and September 30, 2013. 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.

Pensions and Other Postretirement Benefits

The Company recognizes the funded status of defined benefit pension and other postretirement benefit plans as an asset or liability. This amount is defined as the difference between the fair value of plan assets and the benefit obligation. The Company is required to recognize as a component of other comprehensive income, net of tax, the actuarial gains/losses and prior service costs/credits that arise but were not previously required to be recognized as components of net periodic benefit cost. Other comprehensive income is adjusted as these amounts are later recognized in income as components of net periodic benefit cost.

Accumulated Other Comprehensive Income

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

At the beginning of fiscal 2014, the Company adopted new accounting guidance for the presentation of amounts reclassified from AOCI. The guidance specifically requires, either on the face of the financial statements or in the notes, presentation of significant amounts reclassified from AOCI to net income for each component of AOCI and the respective line items within the Consolidated Statements of Operations. These disclosures are included in Note H to the consolidated financial statements.

Accumulated other comprehensive items in the accompanying Consolidated Balance Sheets consist of the following items net of tax:


	December 31,			September 30,
	2013			2013

Foreign currency translation adjustments at beginning of period	$	154		$	167
Net foreign currency translation adjustments during the period		(20	)		(13	)

Balance at end of period		134			154
Unrealized gain on investments at beginning of period		2			—
Net unrealized gains during the period		—			2

Balance at end of period		2			2
Pension and other postretirement benefit plans at beginning of period		(53	)		(75	)
Net change in pension and other postretirement benefit plans during the period		—			22

Balance at end of period		(53	)		(53	)

Total accumulated other comprehensive income	$	83		$	103

Recent Accounting Pronouncements

In July 2013, the FASB issued a new standard related to the “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. The standard requires, unless certain conditions exist, an unrecognized tax benefit or a portion of an unrecognized tax benefit be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, similar to a tax loss or a tax credit carryforward. This standard is applicable for fiscal years beginning after December 15, 2013, and for interim periods within those years. Accordingly, the Company will adopt this standard beginning October 1, 2014, the beginning of the first quarter of its 2015 fiscal year. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and it does not expect the impact to be material.

Acquisition of NHUMO

3 Months Ended

Dec. 31, 2013

Business Combinations [Abstract]

Acquisition of NHUMO

C. Acquisition of NHUMO

In November 2013, the Company purchased all of KUO’s common stock in the NHUMO joint venture, which represented approximately 60% of the outstanding common stock of the joint venture. Prior to this transaction, the Company owned approximately 40% of the outstanding common stock of NHUMO, and the NHUMO entity was accounted for as an equity affiliate of the Company.

At the close of the transaction, the Company paid KUO $80 million in cash and NHUMO issued redeemable preferred stock to KUO with a redemption value of $25 million. The preliminary purchase price is subject to a working capital adjustment, which has not been finalized. The preferred stock will accumulate dividends at a fixed rate of 6% annually and will be redeemable at the option of KUO or the Company for $25 million starting on the fifth anniversary of the acquisition date or upon the occurrence of certain other conditions. Annual payment by NHUMO of the dividends will be contingent on NHUMO achieving a minimum EBITDA (earnings before interest, taxes, depreciation, and amortization) level and if such minimum EBITDA is not achieved in any year, the dividend will be accumulated and paid at the time the preferred shares are redeemed. The preferred stock issued in connection with the transaction is not mandatorily redeemable and has embedded put and call rights at the fixed redemption price. Accordingly, the instrument is accounted for as a financing obligation and has been separately presented in the Consolidated Balance Sheets as a long term liability. Upon acquisition, the Company began consolidating NHUMO into its consolidated financial statements. Prior to closing, the Company received a $14 million dividend from NHUMO.

The Company incurred acquisition costs of approximately $1 million through December 31, 2013 associated with the transaction, which are included in Selling and administrative expenses in the Consolidated Statements of Operations.

The allocation of the preliminary purchase price set forth below was based on preliminary estimates of the fair value of assets acquired, liabilities assumed, and Cabot’s previously held equity interest in NHUMO as of the acquisition date. The Company is continuing to obtain information to complete its valuation of these accounts and the associated tax accounting.


	(in millions)
Assets
Cash	$	7
Accounts receivable		33
Inventories		14
Property, plant and equipment		48
Other non-current assets		1
Intangible assets		57
Goodwill		51

Total assets acquired		211

Liabilities
Current liabilities		(18	)
Deferred tax liabilities		(31	)

Total liabilities assumed		(49	)

Net assets acquired	$	162


Cash consideration paid		80
Fair value of redeemable preferred stock		28
Previously held equity interest in NHUMO		54

Total	$	162

As a result of the acquisition, the Company recorded a gain of $29 million for the difference between the carrying value and the fair value of the previously held equity interest in NHUMO, which was included in Other income. The fair value of $54 million for the previously held equity interest was determined based on the fair value of Cabot’s pre-existing interest in NHUMO as adjusted for a control premium derived from synergies gained as a result of the Company obtaining control of NHUMO.

As part of the preliminary purchase price allocation, the Company determined that the separately identifiable intangible asset was customer relationships in the amount of $57 million, which is being amortized over a period of 17 years. The Company estimated the fair value of the identifiable acquisition-related intangible asset based on projections of cash flows that will arise from the asset. The projected cash flows are discounted to determine the fair value of the asset at the date of acquisition. The determination of the fair value of the intangible asset acquired required the use of significant judgment with regard to (i) assumptions in the discounted cash flow model used and (ii) determination of the useful life of customer relationships.

The fair value of the redeemable preferred stock was determined based on a discounted cash flow model, using the expected timing of the cash flows and an appropriate discount rate.

The excess of the preliminary purchase price over the fair value of the tangible net assets and intangible asset acquired, the issuance of redeemable preferred stock and the previously held equity interest in NHUMO was recorded as goodwill. The goodwill recognized is attributable to the expected growth and operating synergies that the Company expects to realize from this acquisition. Goodwill generated from the acquisition will not be deductible for tax purposes.

Discontinued Operations and Notes Receivable from Sale of Business	3 Months Ended
	Dec. 31, 2013
Discontinued Operations And Disposal Groups [Abstract]
Discontinued Operations and Notes Receivable from Sale of Business	D. Discontinued Operations and Notes Receivable from Sale of Business 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. Through December 31, 2013, Cabot received payments of $62 million under the GAM Notes that became due. The carrying value of the GAM Notes at December 31, 2013 was $215 million, which was presented as Notes receivable from sale of business on the Consolidated Balance Sheets. These Notes are secured by liens on the property and assets of the sold business and guaranteed by the GAM Corporate Group. The Notes are included in Current assets as they are due no later than March 31, 2014.

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
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-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 2
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Compensation And Retirement Disclosure [Abstract]

Employee Benefit Plans

3 Months Ended

Dec. 31, 2013

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
	2013						2012						2013					2012
	Pension Benefits												Postretirement Benefits
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign		U.S.			Foreign
	(Dollars in millions)
Service cost	$	1		$	2		$	1		$	2		$	—		$	—	$	—		$	—
Interest cost		2			4			2			4			1			—		1			—
Expected return on plan assets		(3	)		(5	)		(3	)		(5	)		—			—		(1	)		—
Amortization of prior service credit		—			—			—			—			(1	)		—		—			—
Amortization of actuarial loss		—			1			1			1			—			—		—			—

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

Goodwill and Other Intangible Assets

3 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

F. Goodwill and Other Intangible Assets

Cabot had goodwill balances of $559 million and $504 million at December 31, 2013 and September 30, 2013, 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, 2013 are as follows:


	Reinforcement Materials		Performance Materials		Advanced Technologies		Purification Solutions		Total
	(Dollars in millions)
Balance at September 30, 2013	$	25	$	11	$	2	$	466	$	504
Goodwill acquired⁽¹⁾		51		—		—		—		51
Foreign currency translation adjustment		1		—		—		3		4

Balance at December 31, 2013	$	77	$	11	$	2	$	469	$	559

⁽¹⁾	Goodwill acquired relates to the NHUMO transaction as described in Note C.

Goodwill impairment tests are performed at least annually. The Company performed its last annual impairment assessment as of May 31, 2013 and determined there was no impairment.

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


	December 31, 2013							September 30, 2013
	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	$	156	$	(11	)	$	145	$	155	$	(9	)	$	146
Customer relationships⁽¹⁾		170		(9	)		161		113		(7	)		106
Other intangible assets		3		(2	)		1		3		(2	)		1

Total intangible assets, finite lives	$	329	$	(22	)	$	307	$	271	$	(18	)	$	253
Trademarks, indefinite lives		57		—			57		57		—			57

Total intangible assets	$	386	$	(22	)	$	364	$	328	$	(18	)	$	310

⁽¹⁾	The change in the gross carrying value of the Customer relationships intangible asset is primarily due to the NHUMO transaction as described in Note C.

Intangible assets with finite lives are amortized over their estimated useful lives, which range from six to twenty years, with a weighted average amortization period of approximately 19 years. Amortization expense for the three months ended December 31, 2013 and 2012 was $4 million and $3 million, respectively, and is included in Cost of sales and Selling and administrative expenses in the Consolidated Statements of Operations. Total amortization expense is estimated to be approximately $18 million each year for the next five fiscal years. Intangible assets with indefinite lives are evaluated for impairment at least annually. The Company performed its last annual impairment assessment as of May 31, 2013, and determined there was no impairment.

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, 2013

Equity [Abstract]

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. The Company did not repurchase any shares during the first quarter of fiscal 2014 or 2013. As of December 31, 2013, approximately 1.6 million shares remain available for repurchase under the current authorization.

During the first quarter of both fiscal 2014 and 2013, Cabot paid cash dividends of $0.20 per share of common stock for a total of $13 million.

Noncontrolling interests

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


	2013			2012
	(Dollars in millions)
Balance at September 30	$	132		$	126
Net income attributable to noncontrolling interests		6			4
Noncontrolling interest foreign currency translation adjustment		(1	)		1
Noncontrolling interest dividends		(6	)		—

Balance at December 31	$	131		$	131

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

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-Name Regulation S-X (SX)
-Number 210
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-Article 4

Reference 15: http://www.xbrl.org/2003/role/presentationRef
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
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Reference 17: http://www.xbrl.org/2003/role/presentationRef
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-Number 210
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Reference 18: http://www.xbrl.org/2003/role/presentationRef
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
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Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

3 Months Ended

Dec. 31, 2013

Text Block [Abstract]

H. Accumulated Other Comprehensive Income

Comprehensive income combines net income and other comprehensive income items, which are reported as components of stockholders’ equity in the accompanying Consolidated Balance Sheets.

Changes in each component of Accumulated other comprehensive income, net of tax, are as follows:


	Currency Translation Adjustment			Unrealized Gains on Investments		Pension and Other Postretirement Benefit Liability Adjustment			Total
	(Dollars in millions)

Balance at September 30, 2013	$	154		$	2	$	(53	)	$	103

Other comprehensive loss before reclassifications		(21	)		—		—			(21	)

Net other comprehensive items⁽¹⁾		(21	)		—		—			(21	)

Balance at December 31, 2013		133			2		(53	)		82

Noncontrolling interest		(1	)		—		—			(1	)

Balance at December 31, 2013, attributable to Cabot Corporation	$	134		$	2	$	(53	)	$	83

⁽¹⁾

The amounts reclassified during the three months ended December 31, 2013 were less than $1 million.

The amounts reclassified out of Accumulated other comprehensive income and into the Statement of Operations for the three months ended December 31, 2013 and 2012 are as follows:


		Three Months Ended December 31,
	Affected Line Item in the Consolidated Statements of Operations	2013			2012
		(Dollars in millions)

Pension and other postretirement benefit liability adjustment

Amortization of actuarial losses	Net Periodic Benefit Cost - see Note E for details	$	1		$	2

Amortization of prior service cost	Net Periodic Benefit Cost - see Note E for details		(1	)		—

Total before tax			—			2

Tax charge	Provision for income taxes		—			1

Total after tax		$	—		$	1

Commitments and Contingencies

3 Months Ended

Dec. 31, 2013

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

I. 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, 2013.


	Payments Due by Fiscal Year
	Remainder of
	Fiscal 2014		2015		2016		2017		2018		Thereafter		Total
	(Dollars in millions)

Reinforcement Materials	$	265	$	296	$	228	$	183	$	178	$	2,793	$	3,943
Performance Materials		32		39		33		30		30		236		400
Advanced Technologies		2		2		1		1		1		—		7
Purification Solutions		20		16		9		9		9		16		79


Total	$	319	$	353	$	271	$	223	$	218	$	3,045	$	4,429

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, 2013 and September 30, 2013, Cabot had $5 million, on both a discounted and undiscounted basis, reserved for environmental matters primarily related to divested businesses. These amounts represent Cabot’s best estimates of the probable 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. Cash payments related to these environmental matters were less than $1 million in each of the first three months of fiscal 2014 and 2013. Cabot reviews the adequacy of the reserves as circumstances change at individual sites. Almost all of Cabot’s reserves relate to environmental issues that are mature and have been investigated and studied and, in many cases, are subject to agreed upon remediation plans. However, depending on the results of future testing, changes in risk assessment practices, remediation techniques and regulatory requirements, newly discovered conditions, and other factors, it is reasonably possible that the Company could incur additional costs in excess of environmental reserves currently recorded. Management estimates, based on the latest available information, that any such future environmental remediation costs in excess of amounts already recorded would be immaterial to the Company’s consolidated financial statements.

Other Matters

Respirator Liabilities

Cabot has exposure in connection with a safety respiratory products business that a subsidiary acquired from American Optical Corporation (“AO”) in an April 1990 asset purchase transaction. The subsidiary manufactured respirators under the AO brand and disposed of that business in July 1995. In connection with its acquisition of the business, the subsidiary agreed, in certain circumstances, to assume a portion of AO’s liabilities, including costs of legal fees together with amounts paid in settlements and judgments, allocable to AO respiratory products used prior to the 1990 purchase by the Cabot subsidiary. As more fully described in Cabot’s 2013 10-K, the respirator liabilities involve claims for personal injury, including asbestosis, silicosis and coal worker’s pneumoconiosis, allegedly resulting from the use of respirators that are alleged to have been negligently designed or labeled.

As of both December 31, 2013 and September 30, 2013, 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 December 31, 2013 and September 30, 2013, the reserve was $10 million and $11 million, respectively, on a discounted basis ($14 million and $15 million on an undiscounted basis at December 31, 2013 and September 30, 2013, respectively). 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 $2 million and less than $1 million in the first three months of fiscal 2014 and 2013, respectively.

Other

The Company is subject to various other lawsuits, claims and contingent liabilities. In the opinion of the Company, although final disposition of some or all of these other suits and claims may impact the Company’s consolidated financial statements in a particular period, they should not, in the aggregate, have a material adverse effect on the Company’s financial position.

Income Tax Uncertainties	3 Months Ended
Income Tax Uncertainties	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Income Tax Uncertainties	J. 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 2013 tax years remain subject to examination by the IRS and various tax years from 2005 through 2013 remain subject to examination by the respective state tax authorities. In significant non-U.S. jurisdictions, various tax years from 2001 through 2013 remain subject to examination by their respective tax authorities. Cabot’s significant non-U.S. jurisdictions include Canada, China, France, Germany, Italy, Japan, and the Netherlands. 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 change in the unrecognized tax benefits may also occur within the next twelve months related to the settlement of one or more of these audits, 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, 2013, there were no material changes in the amount of unrecognized tax benefits.

Earnings Per Share

3 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share

K. Earnings Per Share

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


	Three Months Ended
	December 31
	2013			2012
	(Dollars and shares in millions, except per share amounts)
Basic EPS:
Net income attributable to Cabot Corporation	$	80		$	20
Less: Dividends and dividend equivalents to participating securities		—			—
Less: Undistributed earnings allocated to participating securities⁽¹⁾		1			—

Earnings allocated to common shareholders (numerator)	$	79		$	20


Weighted average common shares and participating securities outstanding		64.8			64.1
Less: Participating securities⁽¹⁾		0.6			0.6

Adjusted weighted average common shares (denominator)		64.2			63.5


Amounts per share - basic:
Income from continuing operations attributable to Cabot Corporation	$	1.24		$	0.33
Loss from discontinued operations		—			(0.02	)

Net income attributable to Cabot Corporation	$	1.24		$	0.31


Diluted EPS:
Earnings allocated to common shareholders	$	79		$	20
Plus: Earnings allocated to participating securities		1			—
Less: Adjusted earnings allocated to participating securities⁽²⁾		(1	)		—

Earnings allocated to common shareholders (numerator)	$	79		$	20


Adjusted weighted average common shares outstanding		64.2			63.5
Effect of dilutive securities:
Common shares issuable⁽³⁾		0.6			0.6

Adjusted weighted average common shares (denominator)		64.8			64.1


Amounts per share - diluted:
Income from continuing operations attributable to Cabot Corporation	$	1.23		$	0.33
Loss from discontinued operations		—			(0.02	)

Net income attributable to Cabot Corporation	$	1.23		$	0.31

⁽¹⁾	Participating securities consist of shares of unvested restricted stock 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
	2013		2012
	(Dollars in millions)
Calculation of undistributed earnings:
Net income attributable to Cabot Corporation	$	80	$	20
Less: Dividends declared on common stock		13		13

Undistributed earnings	$	67	$	7

Allocation of undistributed earnings:
Undistributed earnings allocated to common shareholders	$	66	$	7
Undistributed earnings allocated to participating shareholders		1		—

Undistributed earnings	$	67	$	7

⁽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 restricted stock unit awards issued under Cabot’s equity incentive plans. For the three months ended December 31, 2013 and 2012, 119,164 and 421,967 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, 2013

Restructuring And Related Activities [Abstract]

Restructuring

L. Restructuring

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


	Three months ended December 31
	2013		2012
	(Dollars in millions)
Cost of sales	$	5	$	3
Selling and administrative expenses		—		2
Research and technical expenses		—		1

Total	$	5	$	6

Details of these restructuring activities and the related reserves during the three months ended December 31, 2013 are as follows:


	Severance and Employee Benefits			Environmental Remediation			Asset Impairment and Accelerated Depreciation			Other		Total
	(Dollars in millions)
Reserve at September 30, 2013	$	7		$	2		$	—		$	1	$	10
Charges		—			1			3			1		5
Costs charged against assets/liabilities		—			—			(3	)		—		(3	)
Cash paid		(3	)		(1	)		—			—		(4	)

Reserve at December 31, 2013	$	4		$	2		$	—		$	2	$	8

Closure of Port Dickson, Malaysia Manufacturing Facility

On April 26, 2013, the Company announced that the Board of its joint venture carbon black company, Cabot Malaysia Sdn. Bhd. (“CMSB”), decided to cease carbon black production at its Port Dickson, Malaysia facility. The facility ceased production in June 2013. The Company holds a 51 percent equity share in CMSB. The decision, which affected approximately 90 carbon black employees, was driven by the facility’s manufacturing inefficiencies and raw materials costs.

Through December 31, 2013, the consolidated joint venture has recorded pre-tax restructuring costs of approximately $19 million comprised mainly of accelerated depreciation and asset write-offs of $15 million, severance charges of $2 million, site demolition, clearing and environmental remediation charges of $1 million, and other closure related charges of $1 million. CMSB’s net income or loss is attributable to Cabot Corporation and to the noncontrolling interest in the joint venture. The portion of the charges that are allocable to the noncontrolling interest in CMSB (49%) are recorded within Net income attributable to noncontrolling interests, net of tax, in the Consolidated Statements of Operations.

The Company expects that the majority of actions related to closure of the plant will be completed in fiscal 2014 and result in total pre-tax charges to the consolidated joint venture of approximately $25 million. The expected charges are comprised of asset impairments and accelerated depreciation of $15 million, site demolition, clearing and environmental remediation of $7 million, severance charges of $2 million, and other closure related charges of $1 million.

Cumulative net cash outlays related to this plan are expected to be approximately $9 million comprised primarily of $6 million for site demolition, clearing and environmental remediation, $2 million for severance, and $1 million for other closure related charges. Through December 31, 2013, CMSB has made approximately $2 million in cash payments related to this plan related mainly to severance and site demolition and clearing costs.

CMSB expects to make net cash payments of $6 million during the remainder of fiscal 2014 and thereafter for site demolition, clearing and environmental remediation and $1 million related to severance. These amounts exclude any potential proceeds that may be received from the sale of land or other manufacturing assets.

As of December 31, 2013, Cabot has $1 million of accrued restructuring costs in the Consolidated Balance Sheets related to this closure which is mainly comprised of accrued severance charges.

Other Activities

The Company has recorded pre-tax charges of approximately $4 million during the first three months in each of fiscal 2014 and 2013 related to restructuring activities at other locations. Fiscal 2014 charges are comprised mainly of accelerated depreciation and asset write-offs whereas fiscal 2013 restructuring costs are comprised mainly of severance-related charges. The Company anticipates recording additional charges of $2 million during fiscal 2014 and thereafter related to these actions, comprised mainly of site demolition, clearing and environmental remediation costs, and other closure related costs.

Through December 31, 2013, Cabot has made cash payments of $14 million related to these activities and expects to pay $4 million in the remainder of fiscal 2014 and thereafter for severance, site demolition, clearing and environmental remediation and other post close operating costs at the impacted locations.

As of December 31, 2013, Cabot has $3 million of accrued severance and other closure related costs in the Consolidated Balance Sheets related to these activities.

Previous Actions and Sites Pending Sale

Beginning in fiscal 2009, the Company entered into several different restructuring plans which have been substantially completed, pending the sale of former manufacturing sites in Thane, India, Stanlow, U.K. and Hong Kong. The Company has incurred total cumulative pre-tax charges of approximately $162 million related to these plans as of December 31, 2013 comprised of $67 million for severance charges, $65 million for accelerated depreciation and asset impairments, $11 million for environmental, demolition and site clearing costs, and $20 million of other closure related charges partially offset by gains on asset sales of $1 million. These amounts do not include any potential gain that will be recorded if the Company successfully sells its land rights and certain other manufacturing related assets in India and Hong Kong or land in the U.K.

Restructuring expenses related to these plans were less than $1 million and $1 million during the first three months in fiscal 2014 and 2013, respectively.

Beginning in fiscal 2009, Cabot has made net cash payments of $84 million related to these plans and expects to pay an additional $4 million in the remainder of fiscal 2014 and thereafter. The remaining payments consist mainly of environmental, severance, and other closure related costs. These amounts do not include any potential proceeds that will be received if the Company successfully sells its land rights and certain other manufacturing related assets in India and Hong Kong or land in the U.K.

As of December 31, 2013, Cabot has $4 million of accrued environmental, severance, and other closure related costs in the Consolidated Balance Sheets related to these activities

Financial Instruments and Fair Value Measurements

3 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Financial Instruments and Fair Value Measurements

M. Financial Instruments and Fair Value Measurements

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


Level 1	—	Quoted market prices in active markets for identical assets or liabilities

Level 2	—	Significant other observable inputs (e.g., quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and market-corroborated inputs)

Level 3	—	Significant unobservable inputs

There were no transfers of financial assets or liabilities measured at fair value between Level 1 and Level 2, or transfers into or out of Level 3, during the first three months of both fiscal 2014 and 2013.

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 valuation model used is the discounted cash flow model and the significant inputs are the discount rate which incorporates the credit standing of GAM and the fact that the notes are secured by liens on the property and assets of the sold business and guaranteed by the GAM Corporate Group, Adjusted EBITDA forecast and timing of expected cash flows from GAM. The notes are carried at amortized cost and the carrying value was $215 million at December 31, 2013, which is equivalent to the contractually due amount on March 31, 2014. Using the discounted cash flow model at December 31, 2013 with the main inputs being the discount rate and the timing of the contractually due payments of $215 million on March 31, 2014, the fair value of the notes was $210 million. As of September 30, 2013 the carrying value and fair value of GAM Notes were $214 million and $205 million, respectively.

At December 31, 2013 and September 30, 2013, fair value of Guaranteed investment contracts, included in Other assets in the Consolidated Balance Sheets, were $15 million and $14 million, respectively. Guaranteed investment contracts were classified as Level 2 instruments within the fair value hierarchy as the fair value determination was based on the other observable inputs.

At December 31, 2013 and September 30, 2013, the fair values of cash and cash equivalents, accounts and notes receivable, accounts payable and accrued liabilities, and notes payable 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 $958 million and $999 million, respectively, as of December 31, 2013. The carrying value and fair value of the long-term fixed rate debt were $971 million and $1.01 billion, respectively, at September 30, 2013. The fair values of Cabot’s fixed rate long-term debt and capital lease obligations are estimated based on comparable quoted market prices at the respective period ends. The carrying amounts of Cabot’s floating rate long-term debt and capital lease obligations approximate their fair values. All such measurements are based on observable inputs and are classified as Level 2 within the fair value hierarchy. The valuation technique used is the discounted cash flow model.

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

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives

3 Months Ended

Dec. 31, 2013

Derivatives

N. Derivatives

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. As of both December 31, 2013 and September 30, 2013, there were no derivatives held to manage interest rate risk.

Foreign Currency Risk Management

Cabot’s international operations are subject to certain risks, including currency exchange rate fluctuations and government actions. Cabot endeavors to match the currency in which debt is issued to the currency of the Company’s major, stable cash receipts. In some situations Cabot has issued debt denominated in U.S. dollars and may enter 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, may enter 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, 2013 and September 30, 2013 to manage foreign currency risk:


		Notional Amount
Description	Borrowing	December 31, 2013	September 30, 2013	Hedge Designation
Forward Foreign Currency Contracts ⁽¹⁾	N/A	USD 40 million	USD 31 million	No designation

(1)	Cabot’s forward foreign exchange contracts are denominated primarily in the Brazilian real, British pound sterling, Chinese renminbi, Czech koruna, and Indian rupee.

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 the three months ended December 31, 2013 there were no derivatives designated as hedges. For the three months ended December 31, 2012, for derivatives designated as hedges, the change in unrealized gains in Accumulated other comprehensive income, the hedge ineffectiveness recognized in earnings, the realized gains or losses reclassified from Accumulated other comprehensive income, and the losses reclassified from Accumulated other comprehensive income to earnings were immaterial.

During the three months ended December 31, 2013, Cabot recognized in earnings through Other income within the Consolidated Statements of Operations a loss of $2 million related to its foreign currency forward contracts, which were not designated as hedges.

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 Statements 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 income within the Consolidated Statements of Operations gains of $5 million related to its foreign currency forward contracts, which were not designated as hedges.

For both December 31, 2013 and September 30, 2013, the fair value of derivative instruments were immaterial and were presented in Prepaid expenses and other current assets and Accounts payable and accrued liabilities on the Consolidated Balance Sheets.

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 derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Financial Information by Segment

Venezuela	3 Months Ended
Venezuela	Dec. 31, 2013
Equity Method Investments And Joint Ventures [Abstract]
Venezuela	O. 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, 2013, these subsidiaries carried the operating affiliate investment of $23 million and held 20 million bolivars ($3 million) in cash. During the three months ended December 31, 2013 and 2012, the operating affiliate declared dividends of 11 million bolivars ($2 million) and 4 million bolivars ($1 million), respectively, to the Company’s wholly owned subsidiaries, which were paid in U.S. dollars and repatriated. The Venezuelan bolivars held by the Company’s wholly owned subsidiaries 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. The bond offerings use a bidding process, where companies and individuals requiring U.S. dollars place a request for a fixed sum, and CADIVI then determines how to allocate the pool of U.S. dollars in that issuance. The Company closely monitors its ability to convert its bolivar holdings into U.S. dollars, as the Company intends to convert substantially all bolivars held by its wholly owned subsidiaries in Venezuela to U.S. dollars as soon as practical. Any future change in the CADIVI official rate or opening of additional parallel markets could lead the Company to change the exchange rate it uses and result in gains or losses on the bolivar denominated assets held by its wholly owned subsidiaries.

Financial Information by Segment

3 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

P. Financial Information by Segment

The Company identifies a business as an operating segment if: i) it engages in business activities from which it may earn revenues and incur expenses; ii) its operating results are regularly reviewed by the Chief Operating Decision Maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance; and iii) it has available discrete financial information. The Company has determined that all of its businesses are operating segments. The CODM reviews financial information at the operating segment level to allocate resources and to assess the operating results and financial performance for each operating segment. Operating segments are aggregated into a reportable segment if the operating segments are determined to have similar economic characteristics and if the operating segments are similar in the following areas: i) nature of products and services; ii) nature of production processes; iii) type or class of customer for their products and services; iv) methods used to distribute the products or provide services; and v) if applicable, the nature of the regulatory environment.

The Company has four reportable segments: Reinforcement Materials, Performance Materials, Advanced Technologies and Purification Solutions. Reinforcement Materials represents the Company’s Rubber Blacks Business. Purification Solutions represents the Company’s Activated Carbon Business. Performance Materials is an aggregation of the Specialty Carbons and Compounds and Fumed Metal Oxides Businesses, which are similar in terms of economic characteristics, nature of products, processes, customer class and product distribution methods.

The Company has combined and disclosed five of its operating segments (Specialty Fluids, Inkjet, Aerogel, Elastomer Composites and Security Materials) into an other segment labeled “Advanced Technologies”.

Reportable segment operating profit (loss) before interest and taxes (“Segment EBIT”) is presented for each reportable segment in the financial information by reportable segment table below on the line entitled Income (loss) from continuing operations 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, Net income attributable to noncontrolling interests, net of tax, and discounting charges for certain Notes receivable, but excludes Interest expense, foreign currency transaction gains and losses, interest income, dividend income, unearned revenue, the effects of LIFO accounting for inventory, general unallocated income and unallocated corporate costs.

Prior year Purification Solutions Segment EBIT has been adjusted to include an allocation of corporate administrative and functional support costs. In the Company’s 10-Q for the first quarter of fiscal 2013 these allocations were reflected in unallocated corporate costs and other segment results.

Financial information by reportable segment is as follows:


	Reinforcement		Performance		Advanced		Purification			Segment		Unallocated			Consolidated
	Materials		Materials		Technologies		Solutions			Total		and Other⁽¹⁾			Total
	(Dollars in millions)

Three months ended December 31, 2013
Revenues from external customers⁽²⁾	$	517	$	217	$	65	$	77		$	876	$	23		$	899
Income (loss) from continuing operations before taxes⁽³⁾	$	64	$	34	$	24	$	(9	)	$	113	$	(5	)	$	108

Three months ended December 31, 2012
Revenues from external customers⁽²⁾	$	475	$	196	$	38	$	93		$	802	$	18		$	820
Income (loss) from continuing operations before taxes⁽³⁾	$	50	$	27	$	7	$	5		$	89	$	(48	)	$	41

⁽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 and Notes receivable. See table below:


	Three months ended
	December 31
	2013			2012
	(Dollars in millions)
Royalties paid by equity affiliates, other operating revenues, the impact of corporate adjustments for unearned revenue, unconsolidated equity affiliates and discounting charges for certain Notes receivable	$	(1	)	$	(1	)
Shipping and handling fees		24			19

Total	$	23		$	18

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


	Three months ended
	December 31
	2013			2012
	(Dollars in millions)
Interest expense	$	(14	)	$	(16	)
Total certain items, pre-tax^(a)		24			(20	)
Equity in earnings of affiliated companies^(b), net of tax		(2	)		(3	)
Unallocated corporate costs^(c)		(13	)		(12	)
General unallocated income^(d)		—			3

Total	$	(5	)	$	(48	)

(a)

Certain items are items that management does not consider to be representative of operating segment results and they are, therefore, excluded from Segment EBIT. Certain items, pre-tax, for the three months ended December 31, 2013 include $5 million related to global restructuring activities, $5 million for acquisition and integration-related charges (consisting of $3 million for certain other one-time integration costs and $2 million of additional charges related to acquisition accounting adjustments for the acquired inventory of NHUMO) and $1 million for environmental matters offset by $6 million of foreign currency gain on revaluation of the GAM Notes and a $29 million non-cash gain recognized on the Company’s pre-existing investment in NHUMO as a result of the NHUMO transaction. Certain items, pre-tax, for the three months ended December 31, 2012 include $6 million related to global restructuring activities and $14 million for acquisition and integration-related charges (consisting of $3 million for certain other one-time integration costs and $11 million of additional charges related to acquisition accounting adjustments for inventory acquired in the Norit transaction).

(b)

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

(c)

Unallocated corporate costs are not controlled by the operating 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, the profit or loss related to the corporate adjustment for unearned revenue, and the impact of including the full operating results of an equity affiliate in Purification Solutions Segment EBIT.

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, 2013 and 2012 are as follows:


	Three months ended
	December 31
	2013		2012
	(Dollars in millions)
Specialty Carbons and Compounds	$	148	$	132
Fumed Metal Oxides		69		64

Total Performance Materials	$	217	$	196

The net sales from each of the Advanced Technologies businesses are as follows:


	Three months ended
	December 31
	2013		2012
	(Dollars in millions)
Inkjet Colorants	$	15	$	16
Aerogel		5		5
Security Materials		1		1
Elastomer Composites		16		8
Specialty Fluids		28		8

Total Advanced Technologies	$	65	$	38

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
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Revenue Recognition and Accounts Receivable

Subsequent Event	3 Months Ended
Subsequent Event	Dec. 31, 2013
Subsequent Events [Abstract]
Subsequent Event	Q. Subsequent Event On January 28, 2014, the Company announced its intention to open a new Europe, Middle East and Africa (“EMEA”) Shared Service Center in Riga, Latvia, and to close its Leuven, Belgium site, subject to the Belgian information and consultation process. These proposed actions were developed following an extensive evaluation of the Company’s shared service capabilities in the EMEA region and a determination that the proposed future EMEA Shared Service Center will enable the Company to provide the highest quality of service at the most competitive cost. The Company intends to complete these actions by the end of calendar year 2014. The Company expects cash charges for the intended closure of the Leuven site and the transition to Riga to be in the range of $19 to $22 million. These costs include severance and employee benefits and transition and other closure costs. The cash outlays related to the intended closure are expected to occur over the next two years.

Significant Accounting Policies (Policies)

3 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

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
	2013			2012

Reinforcement Materials		59	%		59	%
Performance Materials		25	%		24	%
Purification Solutions		9	%		12	%
Advanced Technologies		7	%		5	%

Property, Plant and Equipment

Property, Plant and Equipment

Intangible Assets and Goodwill

Intangible Assets and Goodwill

Long-Lived Assets

Long-lived Assets

Income Tax in Interim Periods

Income Tax in Interim Periods

Inventory Valuation

Inventory Valuation

Pensions and Other Postretirement Benefits

Pensions and Other Postretirement Benefits

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

Accumulated other comprehensive items in the accompanying Consolidated Balance Sheets consist of the following items net of tax:


	December 31,			September 30,
	2013			2013

Foreign currency translation adjustments at beginning of period	$	154		$	167
Net foreign currency translation adjustments during the period		(20	)		(13	)

Balance at end of period		134			154
Unrealized gain on investments at beginning of period		2			—
Net unrealized gains during the period		—			2

Balance at end of period		2			2
Pension and other postretirement benefit plans at beginning of period		(53	)		(75	)
Net change in pension and other postretirement benefit plans during the period		—			22

Balance at end of period		(53	)		(53	)

Total accumulated other comprehensive income	$	83		$	103

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Significant Accounting Policies (Tables)

3 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Segment Reporting Revenue Percentage

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


	Three months ended
	December 31
	2013			2012

Reinforcement Materials		59	%		59	%
Performance Materials		25	%		24	%
Purification Solutions		9	%		12	%
Advanced Technologies		7	%		5	%

Accumulated Other Comprehensive Items in Accompanying Consolidated Balance Sheets

Accumulated other comprehensive items in the accompanying Consolidated Balance Sheets consist of the following items net of tax:


	December 31,			September 30,
	2013			2013

Foreign currency translation adjustments at beginning of period	$	154		$	167
Net foreign currency translation adjustments during the period		(20	)		(13	)

Balance at end of period		134			154
Unrealized gain on investments at beginning of period		2			—
Net unrealized gains during the period		—			2

Balance at end of period		2			2
Pension and other postretirement benefit plans at beginning of period		(53	)		(75	)
Net change in pension and other postretirement benefit plans during the period		—			22

Balance at end of period		(53	)		(53	)

Total accumulated other comprehensive income	$	83		$	103

Acquisition of NHUMO (Tables)

3 Months Ended

Dec. 31, 2013

Business Combinations [Abstract]

Allocation of Preliminary Purchase Price


	(in millions)
Assets
Cash	$	7
Accounts receivable		33
Inventories		14
Property, plant and equipment		48
Other non-current assets		1
Intangible assets		57
Goodwill		51

Total assets acquired		211

Liabilities
Current liabilities		(18	)
Deferred tax liabilities		(31	)

Total liabilities assumed		(49	)

Net assets acquired	$	162


Cash consideration paid		80
Fair value of redeemable preferred stock		28
Previously held equity interest in NHUMO		54

Total	$	162

Employee Benefit Plans (Tables)

3 Months Ended

Dec. 31, 2013

Compensation And Retirement Disclosure [Abstract]

Net Periodic Defined Benefit Pension and Other Postretirement Benefit Costs

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


	Three months ended December 31
	2013						2012						2013					2012
	Pension Benefits												Postretirement Benefits
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign		U.S.			Foreign
	(Dollars in millions)
Service cost	$	1		$	2		$	1		$	2		$	—		$	—	$	—		$	—
Interest cost		2			4			2			4			1			—		1			—
Expected return on plan assets		(3	)		(5	)		(3	)		(5	)		—			—		(1	)		—
Amortization of prior service credit		—			—			—			—			(1	)		—		—			—
Amortization of actuarial loss		—			1			1			1			—			—		—			—

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

Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Schedule of Goodwill Balances

The carrying amount of goodwill attributable to each reportable segment with goodwill balances and the changes in those balances during the period ended December 31, 2013 are as follows:


	Reinforcement Materials		Performance Materials		Advanced Technologies		Purification Solutions		Total
	(Dollars in millions)
Balance at September 30, 2013	$	25	$	11	$	2	$	466	$	504
Goodwill acquired⁽¹⁾		51		—		—		—		51
Foreign currency translation adjustment		1		—		—		3		4

Balance at December 31, 2013	$	77	$	11	$	2	$	469	$	559

⁽¹⁾	Goodwill acquired relates to the NHUMO transaction as described in Note C.

Schedule of Intangible Assets

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


	December 31, 2013							September 30, 2013
	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	$	156	$	(11	)	$	145	$	155	$	(9	)	$	146
Customer relationships⁽¹⁾		170		(9	)		161		113		(7	)		106
Other intangible assets		3		(2	)		1		3		(2	)		1

Total intangible assets, finite lives	$	329	$	(22	)	$	307	$	271	$	(18	)	$	253
Trademarks, indefinite lives		57		—			57		57		—			57

Total intangible assets	$	386	$	(22	)	$	364	$	328	$	(18	)	$	310

⁽¹⁾	The change in the gross carrying value of the Customer relationships intangible asset is primarily due to the NHUMO transaction as described in Note C.

Stockholders' Equity (Tables)

3 Months Ended

Dec. 31, 2013

Equity [Abstract]

Schedule of Activity in Noncontrolling Interests

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


	2013			2012
	(Dollars in millions)
Balance at September 30	$	132		$	126
Net income attributable to noncontrolling interests		6			4
Noncontrolling interest foreign currency translation adjustment		(1	)		1
Noncontrolling interest dividends		(6	)		—

Balance at December 31	$	131		$	131

Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Changes in Each Component of Accumulated Other Comprehensive Income, Net of Tax

Changes in each component of Accumulated other comprehensive income, net of tax, are as follows:


	Currency Translation Adjustment			Unrealized Gains on Investments		Pension and Other Postretirement Benefit Liability Adjustment			Total
	(Dollars in millions)

Balance at September 30, 2013	$	154		$	2	$	(53	)	$	103

Other comprehensive loss before reclassifications		(21	)		—		—			(21	)

Net other comprehensive items⁽¹⁾		(21	)		—		—			(21	)

Balance at December 31, 2013		133			2		(53	)		82

Noncontrolling interest		(1	)		—		—			(1	)

Balance at December 31, 2013, attributable to Cabot Corporation	$	134		$	2	$	(53	)	$	83

⁽¹⁾

The amounts reclassified during the three months ended December 31, 2013 were less than $1 million.

Amounts Reclassified Out of Accumulated Other Comprehensive Income

The amounts reclassified out of Accumulated other comprehensive income and into the Statement of Operations for the three months ended December 31, 2013 and 2012 are as follows:


		Three Months Ended December 31,
	Affected Line Item in the Consolidated Statements of Operations	2013			2012
		(Dollars in millions)

Pension and other postretirement benefit liability adjustment

Amortization of actuarial losses	Net Periodic Benefit Cost - see Note E for details	$	1		$	2

Amortization of prior service cost	Net Periodic Benefit Cost - see Note E for details		(1	)		—

Total before tax			—			2

Tax charge	Provision for income taxes		—			1

Total after tax		$	—		$	1

Commitments and Contingencies (Tables)

3 Months Ended

Dec. 31, 2013

Commitments And Contingencies Disclosure [Abstract]

Schedule of Components of Purchase Commitments

Purchase Commitments


	Payments Due by Fiscal Year
	Remainder of
	Fiscal 2014		2015		2016		2017		2018		Thereafter		Total
	(Dollars in millions)

Reinforcement Materials	$	265	$	296	$	228	$	183	$	178	$	2,793	$	3,943
Performance Materials		32		39		33		30		30		236		400
Advanced Technologies		2		2		1		1		1		—		7
Purification Solutions		20		16		9		9		9		16		79


Total	$	319	$	353	$	271	$	223	$	218	$	3,045	$	4,429

Earnings Per Share (Tables)

3 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Components of Basic and Diluted Earnings Per Common Share

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


	Three Months Ended
	December 31
	2013			2012
	(Dollars and shares in millions, except per share amounts)
Basic EPS:
Net income attributable to Cabot Corporation	$	80		$	20
Less: Dividends and dividend equivalents to participating securities		—			—
Less: Undistributed earnings allocated to participating securities⁽¹⁾		1			—

Earnings allocated to common shareholders (numerator)	$	79		$	20


Weighted average common shares and participating securities outstanding		64.8			64.1
Less: Participating securities⁽¹⁾		0.6			0.6

Adjusted weighted average common shares (denominator)		64.2			63.5


Amounts per share - basic:
Income from continuing operations attributable to Cabot Corporation	$	1.24		$	0.33
Loss from discontinued operations		—			(0.02	)

Net income attributable to Cabot Corporation	$	1.24		$	0.31


Diluted EPS:
Earnings allocated to common shareholders	$	79		$	20
Plus: Earnings allocated to participating securities		1			—
Less: Adjusted earnings allocated to participating securities⁽²⁾		(1	)		—

Earnings allocated to common shareholders (numerator)	$	79		$	20


Adjusted weighted average common shares outstanding		64.2			63.5
Effect of dilutive securities:
Common shares issuable⁽³⁾		0.6			0.6

Adjusted weighted average common shares (denominator)		64.8			64.1


Amounts per share - diluted:
Income from continuing operations attributable to Cabot Corporation	$	1.23		$	0.33
Loss from discontinued operations		—			(0.02	)

Net income attributable to Cabot Corporation	$	1.23		$	0.31

⁽¹⁾	Participating securities consist of shares of unvested restricted stock and unvested time-based restricted stock units.

Calculation of Undistributed Earnings

The calculation of undistributed earnings is as follows:


	Three months ended December 31
	2013		2012
	(Dollars in millions)
Calculation of undistributed earnings:
Net income attributable to Cabot Corporation	$	80	$	20
Less: Dividends declared on common stock		13		13

Undistributed earnings	$	67	$	7

Allocation of undistributed earnings:
Undistributed earnings allocated to common shareholders	$	66	$	7
Undistributed earnings allocated to participating shareholders		1		—

Undistributed earnings	$	67	$	7

⁽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, 2013

Restructuring And Related Activities [Abstract]

Recorded Restructuring Activities

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


	Three months ended December 31
	2013		2012
	(Dollars in millions)
Cost of sales	$	5	$	3
Selling and administrative expenses		—		2
Research and technical expenses		—		1

Total	$	5	$	6

Restructuring Activities and Related Reserves

Details of these restructuring activities and the related reserves during the three months ended December 31, 2013 are as follows:


	Severance and Employee Benefits			Environmental Remediation			Asset Impairment and Accelerated Depreciation			Other		Total
	(Dollars in millions)
Reserve at September 30, 2013	$	7		$	2		$	—		$	1	$	10
Charges		—			1			3			1		5
Costs charged against assets/liabilities		—			—			(3	)		—		(3	)
Cash paid		(3	)		(1	)		—			—		(4	)

Reserve at December 31, 2013	$	4		$	2		$	—		$	2	$	8

Derivatives (Tables)

3 Months Ended

Dec. 31, 2013

Forward Foreign Currency Contracts [Member]

Schedule of Derivatives Foreign Currency

The following table provides details of the derivatives held as of December 31, 2013 and September 30, 2013 to manage foreign currency risk:


		Notional Amount
Description	Borrowing	December 31, 2013	September 30, 2013	Hedge Designation
Forward Foreign Currency Contracts ⁽¹⁾	N/A	USD 40 million	USD 31 million	No designation

(1)	Cabot’s forward foreign exchange contracts are denominated primarily in the Brazilian real, British pound sterling, Chinese renminbi, Czech koruna, and Indian rupee.

Financial Information by Segment (Tables)

3 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Financial Information by Reportable Segment

Financial information by reportable segment is as follows:


	Reinforcement		Performance		Advanced		Purification			Segment		Unallocated			Consolidated
	Materials		Materials		Technologies		Solutions			Total		and Other⁽¹⁾			Total
	(Dollars in millions)

Three months ended December 31, 2013
Revenues from external customers⁽²⁾	$	517	$	217	$	65	$	77		$	876	$	23		$	899
Income (loss) from continuing operations before taxes⁽³⁾	$	64	$	34	$	24	$	(9	)	$	113	$	(5	)	$	108

Three months ended December 31, 2012
Revenues from external customers⁽²⁾	$	475	$	196	$	38	$	93		$	802	$	18		$	820
Income (loss) from continuing operations before taxes⁽³⁾	$	50	$	27	$	7	$	5		$	89	$	(48	)	$	41

⁽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 and Notes receivable. See table below:


	Three months ended
	December 31
	2013			2012
	(Dollars in millions)
Royalties paid by equity affiliates, other operating revenues, the impact of corporate adjustments for unearned revenue, unconsolidated equity affiliates and discounting charges for certain Notes receivable	$	(1	)	$	(1	)
Shipping and handling fees		24			19

Total	$	23		$	18

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


	Three months ended
	December 31
	2013			2012
	(Dollars in millions)
Interest expense	$	(14	)	$	(16	)
Total certain items, pre-tax^(a)		24			(20	)
Equity in earnings of affiliated companies^(b), net of tax		(2	)		(3	)
Unallocated corporate costs^(c)		(13	)		(12	)
General unallocated income^(d)		—			3

Total	$	(5	)	$	(48	)

(a)

(b)

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

(c)

Unallocated corporate costs are not controlled by the operating 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, 2013 and 2012 are as follows:


	Three months ended
	December 31
	2013		2012
	(Dollars in millions)
Specialty Carbons and Compounds	$	148	$	132
Fumed Metal Oxides		69		64

Total Performance Materials	$	217	$	196

Schedule of Advanced Technologies Business Segment

The net sales from each of the Advanced Technologies businesses are as follows:


	Three months ended
	December 31
	2013		2012
	(Dollars in millions)
Inkjet Colorants	$	15	$	16
Aerogel		5		5
Security Materials		1		1
Elastomer Composites		16		8
Specialty Fluids		28		8

Total Advanced Technologies	$	65	$	38

Basis of Presentation - Additional Information (Detail) - NHUMO [Member]	Nov. 30, 2013
Basis Of Presentation [Line Items]
Percentage acquisition	60.00%
Ownership percentage prior to acquisition	40.00%

Significant Accounting Policies - Segment Reporting Revenue Percentage (Detail)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Reinforcement Materials [Member]
Segment Reporting Information [Line Items]
Revenue, by segment	59.00%	59.00%
Performance Materials [Member]
Segment Reporting Information [Line Items]
Revenue, by segment	25.00%	24.00%
Purification Solutions [Member]
Segment Reporting Information [Line Items]
Revenue, by segment	9.00%	12.00%
Advanced Technologies [Member]
Segment Reporting Information [Line Items]
Revenue, by segment	7.00%	5.00%

Significant Accounting Policies - Additional Information (Detail) $ in Millions	3 Months Ended
	Dec. 31, 2013 USD ($) Customer	Sep. 30, 2013 USD ($)
Significant Accounting Policies [Line Items]
Revenue recognized due, description	2022
Number of customer having licensing agreements \| Customer	1
Value of inventories under FIFO method \| $	$ 55	$ 55
Buildings [Member] \| Minimum [Member]
Significant Accounting Policies [Line Items]
Useful life of property, plant and equipment	20 years
Buildings [Member] \| Maximum [Member]
Significant Accounting Policies [Line Items]
Useful life of property, plant and equipment	25 years
Machinery and Equipment [Member] \| Minimum [Member]
Significant Accounting Policies [Line Items]
Useful life of property, plant and equipment	10 years
Machinery and Equipment [Member] \| Maximum [Member]
Significant Accounting Policies [Line Items]
Useful life of property, plant and equipment	25 years
Other Fixed Assets [Member] \| Minimum [Member]
Significant Accounting Policies [Line Items]
Useful life of property, plant and equipment	3 years
Other Fixed Assets [Member] \| Maximum [Member]
Significant Accounting Policies [Line Items]
Useful life of property, plant and equipment	25 years

Significant Accounting Policies - Accumulated Other Comprehensive Items in Accompanying Consolidated Balance Sheets (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]
Foreign currency translation adjustments at beginning of period	$ 154	$ 167
Net foreign currency translation adjustments during the period	(20)	(13)
Foreign currency translation adjustments at end of period	134	154
Unrealized gain on investments at beginning of period	2
Net unrealized gains during the period		2
Unrealized gain on investments at end of period	2	2
Pension and other postretirement benefit plans at beginning of period	(53)	(75)
Net change in pension and other postretirement benefit plans during the period		22
Pension and other postretirement benefit plans at end of period	(53)	(53)
Total accumulated other comprehensive income	$ 83	$ 103

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

Goodwill And Other Intangible Asset [Line Items]

Acquisition of NHUMO - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Nov. 30, 2013	Dec. 31, 2013
Business Acquisition [Line Items]
Preferred stock redemption amount		$ 28
Acquisition costs		1
Gain on acquisition		29
NHUMO [Member]
Business Acquisition [Line Items]
Percentage acquisition	60.00%
Ownership percentage prior to acquisition	40.00%
Cash paid on acquisition	$ 80	80
Preferred stock redemption amount	$ 25	28
Dividend percentage of preferred stock	6.00%
Preferred stock issued on acquisition	$ 25
Dividend received from NHUMO	$ 14
Gain on acquisition		29
Previously held equity interest in NHUMO		$ 54

Acquisition of NHUMO - Allocation of Preliminary Purchase Price (Detail) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Nov. 30, 2013	Dec. 31, 2013	Sep. 30, 2013
Assets
Goodwill		$ 559	$ 504
Liabilities
Fair value of redeemable preferred stock		28
NHUMO [Member]
Assets
Cash		7
Accounts receivable		33
Inventories		14
Property, plant and equipment		48
Other non-current assets		1
Intangible assets		57
Goodwill		51
Total assets acquired		211
Liabilities
Current liabilities		(18)
Deferred tax liabilities		(31)
Total liabilities assumed		(49)
Net assets acquired		162
Cash consideration paid	$ 80	80
Fair value of redeemable preferred stock	$ 25	28
Previously held equity interest in NHUMO		54
Total		$ 162

Acquisitions - Additional Information (Detail) - Customer Relationships [Member] $ in Millions	3 Months Ended
	Dec. 31, 2013 USD ($)
Business Acquisition [Line Items]
Intangible assets	$ 57
Amortized period	17 years

Discontinued Operations and Notes Receivable from Sale of Business - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended	3 Months Ended	12 Months Ended
	Jan. 31, 2012	Dec. 31, 2012	Dec. 31, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total consideration from sale of business	$ 452
Cash payment, transactions closes	175
Notes receivable received on sale of discontinued operations	$ 277
GAM promissory notes and inventory note, final maturity date	2014-03
Company received payment under the GAM Notes		$ 19
GAM Notes [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Promissory note included in other asset section			$ 215
Company received payment under the GAM Notes			$ 62

Employee Benefit Plans - Net Periodic Defined Benefit Pension and Other Postretirement Benefit Costs (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
U.S. Pension Benefits [Member]
Employee Benefit Plans [Line Items]
Service cost	$ 1	$ 1
Interest cost	2	2
Expected return on plan assets	(3)	(3)
Amortization of actuarial loss		1
Net periodic benefit cost		1
Foreign Pension Benefits [Member]
Employee Benefit Plans [Line Items]
Service cost	2	2
Interest cost	4	4
Expected return on plan assets	(5)	(5)
Amortization of actuarial loss	1	1
Net periodic benefit cost	2	2
U. S. Postretirement Benefits [Member]
Employee Benefit Plans [Line Items]
Interest cost	1	1
Expected return on plan assets		(1)
Amortization of prior service credit	(1)
Foreign Postretirement Benefits [Member]
Employee Benefit Plans [Line Items]
Service cost
Interest cost
Expected return on plan assets
Amortization of prior service credit
Amortization of actuarial loss
Net periodic benefit cost

Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended
	May 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2013
Goodwill And Intangible Assets [Line Items]
Goodwill		$ 559		$ 504
Goodwill annual impairment	$ 0
Amortization expense estimated for year one		18
Amortization expense estimated for year two		18
Amortization expense estimated for year three		18
Amortization expense estimated for year four		18
Amortization expense estimated for year five		$ 18
Asset impairment charges	$ 0
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
Weighted Average [Member]
Goodwill And Intangible Assets [Line Items]
Useful life of intangible assets		19 years
Cost of Sales and Selling and Administrative Expenses [Member]
Goodwill And Intangible Assets [Line Items]
Amortization of intangible assets		$ 4	$ 3

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

3 Months Ended

Dec. 31, 2013

USD ($)

Foreign currency translation adjustment

$ 504

Goodwill acquired

^[1]

Reinforcement Materials [Member]

559

Goodwill And Other Intangible Asset [Line Items]

Foreign currency translation adjustment

Goodwill acquired

^[1]

Performance Materials [Member]

Goodwill And Other Intangible Asset [Line Items]

Advanced Technologies [Member]

Goodwill And Other Intangible Asset [Line Items]

Purification Solutions [Member]

Goodwill And Other Intangible Asset [Line Items]

Foreign currency translation adjustment

466

Goodwill And Other Intangible Assets [Line Items]

$ 469

[1]	Goodwill acquired relates to the NHUMO transaction as described in Note C.

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

Dec. 31, 2013

Sep. 30, 2013

$ 329

$ 271

Gross Carrying Value

386

328

(22)

(18)

Developed Technology [Member]

307

253

Net Intangible Assets

364

310

Goodwill And Other Intangible Assets [Line Items]

156

155

(11)

(9)

Customer Relationships [Member]

145

146

Goodwill And Other Intangible Assets [Line Items]

^[1]

170

113

^[1]

(9)

(7)

Other Intangible Assets [Member]

^[1]

161

106

Goodwill And Other Intangible Assets [Line Items]

(2)

Components Of Accumulated Other Comprehensive Income Loss [Line Items]

$ 1

[1]	The change in the gross carrying value of the Customer relationships intangible asset is primarily due to the NHUMO transaction as described in Note C.

Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2007
Equity [Abstract]
Repurchase authorization, shares	0	0	10,000,000
Shares remaining available for repurchase under the current authorization	1,600,000
Cash dividends paid to common stockholders	$ 13	$ 13
Cash dividends per share paid to common stockholders	$ 0.20	$ 0.20

Stockholders' Equity - Schedule of Activity in Noncontrolling Interests (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Equity [Abstract]
Balance at September 30	$ 132	$ 126
Net income attributable to noncontrolling interests	6	4
Noncontrolling interest foreign currency translation adjustment	(1)	1
Noncontrolling interest dividends	(6)
Balance at December 31	$ 131	$ 131

Accumulated Other Comprehensive Income - Changes in Each Component of Accumulated Other Comprehensive Income, Net of Tax (Detail) - USD ($)
$ in Millions

3 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Other comprehensive loss before reclassifications

$ 103

(21)

Net other comprehensive items

(21)

^[1]

$ 16

Balance at December 31, 2013, attributable to Cabot Corporation

Noncontrolling interest

(1)

Currency Translation Adjustment [Member]

Components Of Accumulated Other Comprehensive Income Loss [Line Items]

Other comprehensive loss before reclassifications

154

(21)

Net other comprehensive items

^[1]

(21)

Balance at December 31, 2013, attributable to Cabot Corporation

133

Noncontrolling interest

(1)

134

Unrealized Gains on Investments [Member]

Components Of Accumulated Other Comprehensive Income Loss [Line Items]

Balance at December 31, 2013, attributable to Cabot Corporation

Pension and Other Postretirement Benefit Liability Adjustment [Member]

Components Of Accumulated Other Comprehensive Income Loss [Line Items]

(53)

Balance at December 31, 2013, attributable to Cabot Corporation

(53)

$ (53)

[1]	The amounts reclassified during the three months ended December 31, 2013 were less than $1 million.

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Accumulated Other Comprehensive Income - Changes in Each Component of Accumulated Other Comprehensive Income, Net of Tax (Parenthetical) (Detail) - Maximum [Member] $ in Millions	3 Months Ended
	Dec. 31, 2013 USD ($)
Components Of Accumulated Other Comprehensive Income Loss [Line Items]
Amounts reclassified from other comprehensive items	$ 1
Currency Translation Adjustment [Member]
Components Of Accumulated Other Comprehensive Income Loss [Line Items]
Amounts reclassified from other comprehensive items	$ 1

Accumulated Other Comprehensive Income - Amounts Reclassified Out of Accumulated Other Comprehensive Income (Detail) - USD ($)
$ in Millions

3 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Total before tax

^[1]

$ 108

$ 41

Tax charge

Income from continuing operations

Reclassification out of Accumulated Other Comprehensive Income [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Total before tax

Tax charge

Income from continuing operations

Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension and Other Postretirement Benefit Liability Adjustment [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Amortization of actuarial losses

$ 2

Amortization of prior service cost

$ (1)

[1]	Income (loss) from continuing operations before taxes that are categorized as Unallocated and Other includes:

Commitments and Contingencies - Schedule of Components of Purchase Commitments (Detail) $ in Millions	Dec. 31, 2013 USD ($)
Long-term Purchase Commitment [Line Items]
Payments Due by Remainder of Fiscal Year 2014	$ 319
Payments Due by Fiscal Year 2015	353
Payments Due by Fiscal Year 2016	271
Payments Due by Fiscal Year 2017	223
Payments Due by Fiscal Year 2018	218
Payments Due Thereafter	3,045
Payments Due, Total	4,429
Reinforcement Materials [Member]
Long-term Purchase Commitment [Line Items]
Payments Due by Remainder of Fiscal Year 2014	265
Payments Due by Fiscal Year 2015	296
Payments Due by Fiscal Year 2016	228
Payments Due by Fiscal Year 2017	183
Payments Due by Fiscal Year 2018	178
Payments Due Thereafter	2,793
Payments Due, Total	3,943
Performance Materials [Member]
Long-term Purchase Commitment [Line Items]
Payments Due by Remainder of Fiscal Year 2014	32
Payments Due by Fiscal Year 2015	39
Payments Due by Fiscal Year 2016	33
Payments Due by Fiscal Year 2017	30
Payments Due by Fiscal Year 2018	30
Payments Due Thereafter	236
Payments Due, Total	400
Advanced Technologies [Member]
Long-term Purchase Commitment [Line Items]
Payments Due by Remainder of Fiscal Year 2014	2
Payments Due by Fiscal Year 2015	2
Payments Due by Fiscal Year 2016	1
Payments Due by Fiscal Year 2017	1
Payments Due by Fiscal Year 2018	1
Payments Due Thereafter
Payments Due, Total	7
Purification Solutions [Member]
Long-term Purchase Commitment [Line Items]
Payments Due by Remainder of Fiscal Year 2014	20
Payments Due by Fiscal Year 2015	16
Payments Due by Fiscal Year 2016	9
Payments Due by Fiscal Year 2017	9
Payments Due by Fiscal Year 2018	9
Payments Due Thereafter	16
Payments Due, Total	$ 79

Commitments and Contingencies - Additional Information (Detail) $ in Millions	3 Months Ended
	Dec. 31, 2013 USD ($) claimants	Dec. 31, 2012 USD ($)	Sep. 30, 2013 USD ($) claimants
Respirator Liabilities [Member]
Loss Contingencies [Line Items]
Number of claimants \| claimants	42,000		42,000
Respirator reserve on discounted basis	$ 10		$ 11
Respirator reserve on undiscounted basis	14		15
Cash payments for respirator reserves	2
Maximum [Member] \| Respirator Liabilities [Member]
Loss Contingencies [Line Items]
Cash payments for respirator reserves		$ 1
Environmental Matters [Member]
Loss Contingencies [Line Items]
Reserve for environmental matters on discount	5		5
Reserve for environmental matters on undiscounted basis	5		$ 5
Environmental Matters [Member] \| Maximum [Member]
Loss Contingencies [Line Items]
Cash payments for environmental reserves	$ 1	$ 1

Income Tax Uncertainties - Additional Information (Detail) - USD ($)	3 Months Ended
	Dec. 31, 2013	Dec. 30, 2013
Income Tax [Line Items]
Change in unrecognized tax benefits	$ 0
Internal Revenue Service (IRS) [Member]
Income Tax [Line Items]
Tax years remain subject to examination, Description		2007 through 2013 tax years remain subject to examination by the IRS
State Tax Authorities [Member]
Income Tax [Line Items]
Tax years remain subject to examination, Description		2005 through 2013 remain subject to examination by the respective state tax authorities
Non-U.S. Jurisdictions [Member]
Income Tax [Line Items]
Tax years remain subject to examination, Description		2001 through 2013 remain subject to examination by their respective tax authorities
Minimum [Member] \| Internal Revenue Service (IRS) [Member]
Income Tax [Line Items]
Tax years remain subject to examination		2007
Minimum [Member] \| State Tax Authorities [Member]
Income Tax [Line Items]
Tax years remain subject to examination		2005
Minimum [Member] \| Non-U.S. Jurisdictions [Member]
Income Tax [Line Items]
Tax years remain subject to examination		2001
Maximum [Member] \| Internal Revenue Service (IRS) [Member]
Income Tax [Line Items]
Tax years remain subject to examination		2013
Maximum [Member] \| State Tax Authorities [Member]
Income Tax [Line Items]
Tax years remain subject to examination		2013
Maximum [Member] \| Non-U.S. Jurisdictions [Member]
Income Tax [Line Items]
Tax years remain subject to examination		2013

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, 2013

Dec. 31, 2012

Basic EPS:

Less: Dividends and dividend equivalents to participating securities

$ 80

$ 20

Less: Undistributed earnings allocated to participating securities

^[1]

Earnings allocated to common shareholders (numerator)

$ 79

$ 20

Weighted average common shares and participating securities outstanding

64.8

64.1

Less: Participating securities

^[1]

0.6

Adjusted weighted average common shares (denominator)

64.2

63.5

Income from continuing operations attributable to Cabot Corporation

$ 1.24

$ 0.33

(0.02)

Earnings allocated to common shareholders

$ 1.24

$ 0.31

Diluted EPS:

$ 79

$ 20

Plus: Earnings allocated to participating securities

Less: Adjusted earnings allocated to participating securities

^[2]

(1)

Earnings allocated to common shareholders (numerator)

$ 79

$ 20

Adjusted weighted average common shares outstanding

64.2

63.5

Common shares issuable

^[3]

0.6

Adjusted weighted average common shares (denominator)

64.8

64.1

Income from continuing operations attributable to Cabot Corporation

$ 1.23

$ 0.33

(0.02)

$ 1.23

$ 0.31

[1]	Participating securities consist of shares of unvested restricted stock and unvested time-based restricted stock units.
[2]	Undistributed earnings are adjusted for the assumed distribution of dividends to the dilutive securities, which are described in (3) below, and then reallocated to participating securities.
[3]	Represents incremental shares of common stock from the (i) assumed exercise of stock options issued under Cabot's equity incentive plans; (ii) assumed issuance of shares to employees pursuant to the Company's Supplemental Retirement Savings Plan; and (iii) assumed issuance of shares under outstanding performance-based restricted stock unit awards issued under Cabot's equity incentive plans. For the three months ended December 31, 2013 and 2012, 119,164 and 421,967 incremental shares of common stock, respectively, were not included in the calculation of diluted earnings per share because the inclusion of these shares would have been antidilutive.

Earnings Per Share - Calculation of Undistributed Earnings (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Earnings Per Share [Abstract]
Net income attributable to Cabot Corporation	$ 80	$ 20
Less: Dividends declared on common stock	13	13
Undistributed earnings	67	7
Undistributed earnings allocated to common shareholders	66	$ 7
Undistributed earnings allocated to participating shareholders	$ 1

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=31042434&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=26872669&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=28358780&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

Not Designated as Hedging Instrument [Member] | Forward Foreign Currency Contracts [Member]

Earnings Per Share - Calculation of Undistributed Earnings (Parenthetical) (Detail) - shares	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Earnings Per Share [Abstract]
Incremental shares of common stock	119,164	421,967

Restructuring - Recorded Restructuring Activities (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, period expense	$ 5	$ 6
Cost of Sales [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, period expense	$ 5	3
Selling and Administrative Expenses [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring reserve, period expense		2
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, 2013	Dec. 31, 2012
Restructuring Cost and Reserve [Line Items]
Reserve balance	$ 10
Charges	5	$ 6
Costs charged against assets/liabilities	(3)
Cash paid	(4)
Reserve balance	8
Severance and Employee Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Reserve balance	7
Cash paid	(3)
Reserve balance	4
Environmental Remediation [Member]
Restructuring Cost and Reserve [Line Items]
Reserve balance	2
Charges	1
Cash paid	(1)
Reserve balance	2
Asset Impairment and Accelerated Depreciation [Member]
Restructuring Cost and Reserve [Line Items]
Charges	3
Costs charged against assets/liabilities	(3)
Other [Member]
Restructuring Cost and Reserve [Line Items]
Reserve balance	1
Charges	1
Reserve balance	$ 2

Restructuring - Additional Information (Detail) $ in Millions		3 Months Ended		12 Months Ended
	Apr. 26, 2013 Employees	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2009 USD ($)	Sep. 30, 2013 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 5	$ 6
Cash payments		4
Restructuring costs in accrued expenses		8				$ 10
Additional charges during fiscal 2014 and thereafter		4
Environmental Remediation [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		1
Cash payments		1
Restructuring costs in accrued expenses		2				2
Severance and Employee Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Cash payments		3
Restructuring costs in accrued expenses		4				$ 7
Previous Actions and Sites Pending Sale [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		1	1
Severance charges		67
Site demolition, clearing and environmental remediation costs		11
Other charges		20
Pre-tax charge to earnings		162
Restructuring accelerated depreciation and asset impairments		65
Cash payments					$ 84
Restructuring costs in accrued expenses		4
Gain on sale of assets		1
Closure of Port Dickson [Member]
Restructuring Cost and Reserve [Line Items]
Equity share in CMSB	51.00%
Affected employees \| Employees	90
Restructuring charges		19
Accelerated depreciation and asset write-offs		15
Severance charges		$ 2
Portion of the charges that are allocable to the noncontrolling interest		49.00%
Site demolition, clearing and environmental remediation costs		$ 1
Other charges		1
Expected cumulative net cash outlays related to plan		9
Expected cash outlays remainder fiscal year		6
Restructuring costs in accrued expenses		1
Closure of Port Dickson [Member] \| Environmental Remediation [Member]
Restructuring Cost and Reserve [Line Items]
Expected cumulative net cash outlays related to plan		6
Closure of Port Dickson [Member] \| Severance and Employee Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Expected cumulative net cash outlays related to plan		2
Closure of Port Dickson [Member] \| Severance Costs [Member]
Restructuring Cost and Reserve [Line Items]
Cash payments		2
Closure of Port Dickson [Member] \| Scenario, Forecast [Member]
Restructuring Cost and Reserve [Line Items]
Severance charges				$ 2
Site demolition, clearing and environmental remediation costs				7
Other charges				1
Pre-tax charge to earnings				25
Restructuring accelerated depreciation and asset impairments				$ 15
Restructuring Activities Other [Member]
Restructuring Cost and Reserve [Line Items]
Additional charges during fiscal 2014 and thereafter		2
Restructuring Activities Other [Member] \| Severance Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		4	$ 4
Cash payments		14
Expected cash outlays remainder fiscal year		4
Accrued severance charges		$ 3

Financial Instruments and Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value, liabilities, Level 2 to Level 1 transfers, amount	$ 0	$ 0
Fair value, assets, Level 2 to Level 1 transfers, amount	0	0
Fair value, liabilities, Level 1 to Level 2 transfers, amount	0	0
Fair value, assets, Level 1 to Level 2 transfers, amount	0	0
Fair value, assets, transfers into Level 3, amount	0	0
Fair value, assets, transfers out of Level 3, amount	0	0
Fair value, liabilities, transfers into Level 3, amount	0	0
Fair value, liabilities, transfers out of Level 3, amount	0	$ 0
Notes receivable from sale of business	215,000		$ 214,000
Contractual due payment	$ 215,000
Due date of contractual payment	Mar. 31, 2014
GAM notes fair value	$ 210,000		205,000
Fixed Rate Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying value of long-term debt	958,000		971,000
Fair value of long-term debt	999,000		1,010,000
Significant Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets in the Consolidated Balance Sheets	$ 15,000		$ 14,000

Derivatives - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2013
Derivative [Line Items]
Derivatives designated as hedges	$ 0
Gain (loss) on foreign currency derivatives recorded in earnings		$ 4
Bond held by one of Cabot's European subsidiaries		175
Currency Swaps [Member]
Derivative [Line Items]
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments		(4)
Forward Foreign Currency Contracts [Member]
Derivative [Line Items]
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments	2	$ 5
Fair Value Hedging [Member] \| Interest Rate Swap-Fixed to Variable [Member]
Derivative [Line Items]
Derivatives held to manage interest rate risk	$ 0		$ 0

Derivatives - Schedule of Derivatives Foreign Currency (Detail) - USD ($)
$ in Millions

Dec. 31, 2013

Sep. 30, 2013

Derivative [Line Items]

Notional amount of forward foreign currency contract no designation hedge derivatives

^[1]

$ 40

$ 31

[1]	Cabot's forward foreign exchange contracts are denominated primarily in the Brazilian real, British pound sterling, Chinese renminbi, Czech koruna, and Indian rupee.

Venezuela - Additional Information (Detail) $ in Millions, in Millions	3 Months Ended
	Dec. 31, 2013 USD ($)	Dec. 31, 2013 VEF ( )	Dec. 31, 2012 USD ($)	Dec. 31, 2012 VEF ( )	Dec. 31, 2013 VEF ( )
Nature Of Operations [Line Items]
Operating affiliate investment	$ 23
Due from affiliates, dividends cash	3				20
Cash dividends received from subsidiary	$ 2	11	$ 1	4
Operating Affiliate, Venezuela [Member]
Nature Of Operations [Line Items]
Equity method investment, ownership percentage	49.00%				49.00%

Financial Information by Segment - Additional Information (Detail)	3 Months Ended
	Dec. 31, 2013 Segment Business
Segment Reporting Information [Line Items]
Number of reportable segment	4
Number of operating segments	5
Performance Materials [Member]
Segment Reporting Information [Line Items]
Number of business activity \| Business	2

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

3 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Income (loss) from continuing operations before taxes

^[1]

$ 899

$ 820

^[2]

108

Unallocated and Other [Member]

Income (loss) from continuing operations before taxes

^[1]

^[2]

(5)

(48)

Reinforcement Materials [Member] | Operating Segments [Member]

Income (loss) from continuing operations before taxes

^[1]

517

475

^[2]

Performance Materials [Member] | Operating Segments [Member]

Income (loss) from continuing operations before taxes

^[1]

217

196

^[2]

Advanced Technologies [Member] | Operating Segments [Member]

Income (loss) from continuing operations before taxes

^[1]

^[2]

Purification Solutions [Member] | Operating Segments [Member]

Income (loss) from continuing operations before taxes

^[1]

^[2]

(9)

Segment Total [Member] | Operating Segments [Member]

Income (loss) from continuing operations before taxes

^[1]

876

802

^[2]

$ 113

$ 89

[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 and Notes receivable.
[2]	Income (loss) from continuing operations before taxes that are categorized as Unallocated and Other includes:

Financial Information by Segment - Royalties Paid by Equity Affiliates, External Shipping and Handling Fees, and the Impact of Corporate Adjustment for Unearned Revenue and Notes Receivable Reflected by Unallocated and Other (Detail) - Unallocated and Other [Member] - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Segment Reporting Information [Line Items]
Net sales	$ 23	$ 18
Royalties Paid by Equity Affiliates, Other Operating Revenues, the Impact of Corporate Adjustments for Unearned Revenue, Unconsolidated Equity Affiliates and Discounting Charges for Certain Notes Receivable [Member]
Segment Reporting Information [Line Items]
Net sales	(1)	(1)
Shipping and Handling Fees [Member]
Segment Reporting Information [Line Items]
Net sales	$ 24	$ 19

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

3 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Equity in earnings of affiliated companies, net of tax

Interest expense

$ (14)

$ (16)

(2)

(3)

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

^[1]

108

Certain Items [Member]

Foreign currency exchange rate, re measurement income (loss)

Unallocated and Other [Member]