E. Accumulated Other Comprehensive Income (Loss) (“AOCI”) Comprehensive income combines net income (loss) and other comprehensive income items, which are reported as components of stockholders’ equity in the accompanying Consolidated Balance Sheets. Changes in each component of AOCI, net of tax, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency Translation Adjustment |
|
|
Pension and Other Post-retirement Benefit Liability Adjustments |
|
|
Total |
|
|
|
(In millions) |
|
Balance at September 30, 2025, attributable to Cabot Corporation |
|
$ |
(316 |
) |
|
$ |
(19 |
) |
|
$ |
(335 |
) |
Other comprehensive income (loss) before reclassifications |
|
|
26 |
|
|
|
3 |
|
|
|
29 |
|
Amounts reclassified from AOCI |
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
Less: Other comprehensive income (loss) attributable to noncontrolling interests |
|
|
3 |
|
|
|
— |
|
|
|
3 |
|
Balance at December 31, 2025, attributable to Cabot Corporation |
|
$ |
(294 |
) |
|
$ |
(16 |
) |
|
$ |
(310 |
) |
Other comprehensive income (loss) before reclassifications |
|
|
(6 |
) |
|
|
— |
|
|
|
(6 |
) |
Amounts reclassified from AOCI |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: Other comprehensive income (loss) attributable to noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Balance at March 31, 2026, attributable to Cabot Corporation |
|
$ |
(300 |
) |
|
$ |
(16 |
) |
|
$ |
(316 |
) |
Other comprehensive income (loss) before reclassifications |
|
|
32 |
|
|
|
(3 |
) |
|
|
29 |
|
Amounts reclassified from AOCI |
|
|
(1 |
) |
|
|
23 |
|
|
|
22 |
|
Less: Other comprehensive income (loss) attributable to noncontrolling interests |
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
Balance at June 30, 2026, attributable to Cabot Corporation |
|
$ |
(271 |
) |
|
$ |
4 |
|
|
$ |
(267 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency Translation Adjustment |
|
|
Pension and Other Post-retirement Benefit Liability Adjustments |
|
|
Total |
|
|
|
(In millions) |
|
Balance at September 30, 2024, attributable to Cabot Corporation |
|
$ |
(342 |
) |
|
$ |
(18 |
) |
|
$ |
(360 |
) |
Other comprehensive income (loss) before reclassifications |
|
|
(104 |
) |
|
|
— |
|
|
|
(104 |
) |
Amounts reclassified from AOCI |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: Other comprehensive income (loss) attributable to noncontrolling interests |
|
|
(7 |
) |
|
|
— |
|
|
|
(7 |
) |
Balance at December 31, 2024, attributable to Cabot Corporation |
|
$ |
(439 |
) |
|
$ |
(18 |
) |
|
$ |
(457 |
) |
Other comprehensive income (loss) before reclassifications |
|
|
34 |
|
|
|
1 |
|
|
|
35 |
|
Amounts reclassified from AOCI |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
Less: Other comprehensive income (loss) attributable to noncontrolling interests |
|
|
3 |
|
|
|
— |
|
|
|
3 |
|
Balance at March 31, 2025, attributable to Cabot Corporation |
|
$ |
(409 |
) |
|
$ |
(18 |
) |
|
$ |
(427 |
) |
Other comprehensive income (loss) before reclassifications |
|
|
76 |
|
|
|
— |
|
|
|
76 |
|
Amounts reclassified from AOCI |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: Other comprehensive income (loss) attributable to noncontrolling interests |
|
|
4 |
|
|
|
— |
|
|
|
4 |
|
Balance at June 30, 2025, attributable to Cabot Corporation |
|
$ |
(337 |
) |
|
$ |
(18 |
) |
|
$ |
(355 |
) |
The amounts reclassified out of AOCI and into the Consolidated Statements of Operations in each of the three and nine months ended June 30, 2026 and 2025 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Affected Line Item in the Consolidated |
|
Three Months Ended June 30 |
|
|
Nine Months Ended June 30 |
|
|
|
Statements of Operations |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|
|
|
|
(In millions) |
|
|
|
|
|
|
|
Derivatives: net investment hedges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gains) losses reclassified to interest expense |
|
Interest expense |
|
$ |
(1 |
) |
|
$ |
(1 |
) |
|
$ |
(4 |
) |
|
$ |
(4 |
) |
(Gains) losses excluded from effectiveness testing and amortized to interest expense |
|
Interest expense |
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
Pension and other postretirement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Settlement loss |
|
Other income (expense) |
|
|
29 |
|
|
|
— |
|
|
|
29 |
|
|
|
— |
|
Amortization of actuarial losses and prior service cost (credit) |
|
Other income (expense) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
Total before tax |
|
|
|
$ |
28 |
|
|
$ |
— |
|
|
$ |
26 |
|
|
$ |
(3 |
) |
U.K. Plans Termination In fiscal 2023, the Company commenced the plan termination process for the Cabot Carbon Limited Pension Plan and Carbon Plastics Pension Plan and completed the transfer of the pension assets and liabilities in the third quarter of fiscal 2026. The pension liabilities were settled through purchased annuities, which did not require any additional cash contribution from the Company. As a result of the plan terminations, the Company recognized a $29 million settlement loss and a $1 million charge for costs associated with returning surplus pension assets to the Company, which were both recorded in Other income (expense) in the Consolidated Statements of Operations in the third quarter of fiscal 2026.
|