CABOT CORP (CBT)

CIK: 0000016040. SIC: 2890 Miscellaneous Chemical Products. Latest 10-K as of: 2025-11-24.

SIC breadcrumb: Manufacturing > Chemicals And Allied Products > SIC 2890 Miscellaneous Chemical Products

SEC company page: https://www.sec.gov/edgar/browse/?CIK=16040. Latest filing source: 0001193125-25-292412.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-11-24. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000016040.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000016040.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

Quarterly Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
• CES0500000003 - Average Hourly Earnings of All Employees, Total Private
• DFEDTARU - Federal Funds Target Range - Upper Limit
• DFEDTARL - Federal Funds Target Range - Lower Limit
• DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
• T10YIE - 10-Year Breakeven Inflation Rate
• U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
• PAYEMS - All Employees, Total Nonfarm
• CIVPART - Labor Force Participation Rate
• EMRATIO - Employment-Population Ratio
• UNEMPLOY - Unemployed
• CE16OV - Employment Level
• ICSA - Initial Claims
• JTSJOL - Job Openings: Total Nonfarm
• JTSQUR - Quits: Total Nonfarm
• GDPC1 - Real Gross Domestic Product
• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
• DSPIC96 - Real Disposable Personal Income
• PSAVERT - Personal Saving Rate
• M2SL - M2
• BOPGSTB - U.S. International Trade in Goods and Services: Balance
• MSPUS - Median Sales Price of Houses Sold for the United States
• HSN1F - New One Family Houses Sold: United States
• RHORUSQ156N - Homeownership Rate in the United States
• TTLCONS - Total Construction Spending: Total Construction in the United States
• RRVRUSQ156N - Rental Vacancy Rate in the United States
• TOTALSL - Total Consumer Credit Owned and Securitized
• REVOLSL - Revolving Consumer Credit Owned and Securitized
• DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
• GDP - Gross Domestic Product
• GPDI - Gross Private Domestic Investment
• GCE - Government Consumption Expenditures and Gross Investment
• PCEC - Personal Consumption Expenditures
• NETEXP - Net Exports of Goods and Services
• GFDEBTN - Federal Debt: Total Public Debt
• GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
• FYFSD - Federal Surplus or Deficit
• FGRECPT - Federal Government Current Receipts
• FGEXPND - Federal Government: Current Expenditures
• MANEMP - All Employees, Manufacturing
• USCONS - All Employees, Construction
• USTRADE - All Employees, Retail Trade
• USFIRE - All Employees, Financial Activities
• USGOVT - All Employees, Government
• AWHAETP - Average Weekly Hours of All Employees, Total Private
• DGORDER - Manufacturers' New Orders: Durable Goods
• NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
• BUSINV - Total Business Inventories
• EXPGS - Exports of Goods and Services
• IMPGS - Imports of Goods and Services
• IR - Import Price Index (End Use): All Commodities
• PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0001193125-26-209067.

Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high. Filing date: 2026-05-06. Report date: 2026-03-31.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Recently Issued Accounting Pronouncements

Refer to the discussion under the heading “Recent Accounting Pronouncements” in Note B of our Notes to the unaudited Consolidated Financial Statements.

Results of Operations

The Company has two reportable segments: Reinforcement Materials and Performance Chemicals. The Performance Chemicals reporting segment aggregates the specialty carbons, specialty compounds, fumed metal oxides, battery materials, inkjet colorants and aerogel product lines.

Our measure of business segment earnings is Segment earnings before interest and taxes (“Segment EBIT”) and is the measure utilized by the Chief Operating Decision Maker (“CODM”) to allocate resources and to assess operating results and financial performance. The CODM reviews the change in the actual results compared to the same period forecast, the same period year-ago, and the preceding period on a quarterly basis. Segment EBIT includes all items that are controlled by the business segment and those management considers are representative of the fundamental on-going segment results.

The Company is also organized for operational purposes into three geographic regions: the Americas; Europe, Middle East and Africa (“EMEA”); and Asia Pacific. The discussion of our results of operations for the periods presented reflects these structures.

Definition of Terms

When discussing our results of operations, we use the term “product mix”, which refers to the mix of types and grades of products sold or the mix of geographic regions where products are sold, and the positive or negative impact this has on the revenue or profitability of the business and/or segment.

Overview

During the second quarter of fiscal 2026, Income (loss) before income taxes and equity in earnings of affiliated companies decreased as compared to the second quarter of fiscal 2025. The decrease was primarily due to lower segment EBIT in our Reinforcement Materials segment, partially offset by higher segment EBIT in our Performance Chemicals segment.

Second quarter of Fiscal 2026 versus Second quarter of Fiscal 2025—Consolidated

Net Sales and Other Operating Revenues and Gross Profit

Three Months Ended March 31

Six Months Ended March 31

2026

2025

2026

2025

(In millions)

Net sales and other operating revenues

$

904

$

936

$

1,753

$

1,891

Gross profit

$

210

$

241

$

421

$

476

For the three and six months ended March 31, 2026, Net sales and other operating revenue decreased by $32 million and $138 million, respectively, compared to the same periods of fiscal 2025.

The decrease in Net sales and other operating revenue in the second quarter of fiscal 2026 compared to the same period of fiscal 2025 was driven by less favorable pricing and product mix in our Reinforcement Materials segment ($95 million), partially offset by the favorable impact from foreign currency translation in both our Reinforcement Materials and Performance Chemicals segments ($43 million combined) and higher volumes in our Reinforcement Materials segment ($21 million). The less favorable pricing and product mix in our Reinforcement Materials segment was driven by lower raw material costs which are generally passed through to our customers, less favorable pricing and product mix in our 2026 calendar year customer agreements and lower pricing from increased competitive intensity in Asia Pacific. The higher volumes in our Reinforcement Materials segment were primarily due to higher demand in Asia Pacific and EMEA and increased sales volume from our acquisition of MXCB that closed in the second quarter of fiscal 2026.

The decrease in Net sales and other operating revenue in the first six months of fiscal 2026 compared to the same period of fiscal 2025 was primarily driven by less favorable pricing and product mix ($162 million combined), primarily in our Reinforcement Materials segment, and lower volumes ($30 million combined), primarily in our Reinforcement Material segment, partially offset by the favorable impact from foreign currency translation in both our Reinforcement Materials and Performance Chemicals segments ($58 million combined). The less favorable pricing and product mix in our Reinforcement Materials segment was driven by lower raw material costs which are generally passed through to our customers, less favorable pricing and product mix in our 2026 calendar year customer agreements and lower pricing from increased competitive intensity in Asia Pacific. The lower volumes in our Reinforcement Materials segment were primarily due to lower volumes in the Americas and Asia Pacific. Volumes were impacted by lower production levels at our tire customers and year-end inventory management in our first fiscal quarter by our customers in the Americas and increased competitive intensity in Asia Pacific.

23

For the three and six months ended March 31, 2026, gross profit decreased by $31 million and $55 million, respectively, compared to the same periods of fiscal 2025.

The decrease in Gross profit in the second quarter of fiscal 2026 as compared to the same period of fiscal 2025 was driven primarily by lower gross profit per ton in our Reinforcement Materials segment ($53 million), partially offset by higher volumes in both our Reinforcement Materials and Performance Chemicals segments ($13 million combined) and higher gross profit per ton in our Performance Chemicals segment ($5 million). The lower gross profit per ton in our Reinforcement Materials segment was primarily driven by less favorable pricing and product mix in our 2026 calendar year customer agreements and lower pricing from increased competitive intensity in Asia Pacific. The higher volumes in our Reinforcement Materials segment were primarily driven by higher demand in Asia Pacific and EMEA and increased sales volume from our acquisition of MXCB that closed in the second quarter of fiscal 2026. The higher volumes in our Performance Chemicals segment were primarily driven by higher volumes in our battery materials and specialty carbons product lines from higher demand. The higher gross profit per ton in our Performance Chemicals segment was primarily due to a more favorable product mix and optimization efforts.

The decrease in Gross profit in the first six months of fiscal 2026 as compared to the same period of fiscal 2025 was driven primarily by lower gross profit per ton in our Reinforcement Materials segment ($65 million) and lower volumes in both our Reinforcement Materials and Performance Chemicals segments ($13 million combined), partially offset by higher gross profit per ton in our Performance Chemicals segment ($16 million). The lower gross profit per ton in our Reinforcement Materials segment was primarily driven by less favorable pricing and product mix in our 2026 calendar year customer agreements and lower pricing from increased competitive intensity in Asia Pacific. The lower volumes in our Reinforcement Materials segment were primarily due to lower volumes in the Americas and Asia Pacific. Volumes in our Reinforcement Materials segment were impacted by lower production levels at our tire customers and year-end inventory management in our first fiscal quarter by our customers in the Americas and increased competitive intensity in Asia Pacific. The lower volumes in our Performance Chemicals segment were primarily due to weaker demand in Europe. The higher gross profit per ton in our Performance Chemicals segment was primarily driven by a favorable product mix and from lower spending from overall cost management efforts and optimization measures across the segment.

Selling and Administrative Expenses

Three Months Ended March 31

Six Months Ended March 31

2026

2025

2026

2025

(In millions)

Selling and administrative expenses

$

67

$

64

$

136

$

130

Selling and administrative expenses increased by $3 million and $6 million, respectively, for the three and six months ended March 31, 2026, compared to the same periods of fiscal 2025. The higher selling and administrative expenses for the three months ended March 31, 2026 compared to the same period of fiscal 2025 was primarily due to an increase in the valuation of deferred compensation expense and the higher selling and administrative expenses in the six months ended March 31, 2026 compared to the same period of fiscal 2025 was primarily due to higher legal expenses.

Research and Technical Expenses

Three Months Ended March 31

Six Months Ended March 31

2026

2025

2026

2025

(In millions)

Research and technical expenses

$

14

$

15

$

27

$

29

Research and technical expenses decreased by $1 million and $2 million, respectively, for the three and six months ended March 31, 2026 compared to the same periods of fiscal 2025 primarily due to cost management efforts.

Interest and Dividend Income, Interest Expense and Other Income (Expense)

Three Months Ended March 31

Six Months Ended March 31

2026

2025

2026

2025

(In millions)

Interest and dividend income

$

7

$

7

$

14

$

13

Interest expense

$

(18

)

$

(19

)

$

(36

)

$

(37

)

Other income (expense)

$

2

$

1

$

2

$

2

Interest and dividend income was unchanged and increased by $1 million, respectively, for the three and six months ended March 31, 2026 compared to the same periods of fiscal 2025. The $1 million increase was primarily due to higher average cash balances, partially offset by lower average interest rates.

24

Interest expense decreased by $1 million for both the three and six months ended March 31, 2026 compared to the same periods of fiscal 2025 primarily due to lower average interest rates on short-term borrowings.

Other income (expense) improved by $1 million in the second quarter of fiscal 2026 compared to the same period of fiscal 2025, primarily due to foreign exchange gains in Argentina and Colombia. Other income (expense) was unchanged for the six months ended March 31, 2026, as compared to the same period of fiscal 2025.

(Provision) Benefit for Income Taxes and Effective Tax Rate

Three Months Ended March 31

2026

2025

(Provision) / Benefit for Income Taxes

Rate

(Provision) / Benefit for Income Taxes

Rate

Dollars in millions

Effective tax rate

$

(44

)

37

%

$

(49

)

32

%

Six Months Ended March 31

2026

2025

(Provision) / Benefit for Income Taxes

Rate

(Provision) / Benefit for Income Taxes

Rate

Dollars in millions

Effective tax rate

$

(81

)

34

%

$

(90

)

30

%

For the second quarter of fiscal 2026, the (Provision) benefit for income taxes was a provision of $44 million compared to a provision of $49 million for the same period in fiscal 2025, with the change primarily due to lower earnings and change in the mix of earnings. Our income taxes are affected by the mix of earnings in the tax jurisdictions in which we operate, and by the presence of valuation allowances in certain tax jurisdictions.

For the six months ended March 31, 2026, the (Provision) benefit for income taxes was a provision of $81 million compared to a provision of $90 million for the same period in fiscal 2025, with the change primarily due to lower earnings and change in the mix of earnings. Our income taxes are affected by the mix of earnings in the tax jurisdictions in which we operate, and by the presence of valuation allowances in certain tax jurisdictions.

Equity in Earnings of Affiliated Companies and Net Income (Loss) Attributable to Noncontrolling Interests

Three Months Ended March 31

Six Months Ended March 31

2026

2025

2026

2025

(In millions)

Equity in earnings of affiliated companies,

   net of tax

$

2

$

3

$

3

$

4

Net income (loss) attributable to

   noncontrolling interests, net of tax

$

10

$

11

$

19

$

22

Equity in earnings of affiliated companies, net of tax, decreased by $1 million for both the three and six months ended March 31, 2026 compared to the

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2025-11-24. Report date: 2025-09-30.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Critical Accounting Estimates

Our consolidated financial statements have been prepared in conformity with U.S. GAAP. This preparation of our financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses and related disclosure of contingent assets and liabilities. We consider an accounting estimate to be critical to the financial statements if (i) the estimate is complex in nature or requires a high degree of judgment and if (ii) different estimates and assumptions were used, the results could have a material impact on the consolidated financial statements. On an ongoing basis, we evaluate our estimates and the application of our policies. We base our estimates on historical experience, current conditions, and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. We believe the following critical accounting estimates are the most significant to understanding our consolidated financial statements.

Deferred Tax Assets

We have established valuation allowances against a variety of deferred tax assets, including net operating loss carryforwards, capital loss carryforwards, foreign tax credits and other income tax credits. We assess the realizability of our deferred tax assets quarterly and recognize a valuation allowance when it is more likely than not that some or all of our deferred tax assets are not realizable. This assessment is completed on a jurisdiction-by-jurisdiction basis and relies on the weight of all positive and negative evidence available. Cumulative pre-tax losses for a three-year period are considered significant objective negative evidence that some or all of our deferred tax assets may not be realizable. Cumulative reported pre-tax income is considered objectively verifiable positive evidence of our ability to generate positive pretax income in the future.

In accordance with U.S. GAAP, when there is a recent history of pre-tax losses, there is little weight placed on forecasts for purposes of assessing the recoverability of our deferred tax assets. Judgment is required when considering the relative impact of positive and negative evidence. The weight given to the potential effect of positive and negative evidence is commensurate with the extent that it can be objectively verified. The more negative evidence that exists, the more positive evidence is necessary to support a conclusion that a valuation allowance is not needed. We consider the availability of objectively verifiable evidence, such as positive recent core operating results after adjusting for nonrecurring items in determining our ability to utilize deferred tax assets. We use systematic and logical methods to estimate when deferred tax liabilities will reverse and generate taxable income and when deferred tax assets will reverse and generate tax deductions. Assumptions, judgment, and estimates are required when estimating future income and scheduling the reversal of deferred tax assets and liabilities, and the exercise is inherently complex and subjective.

Refer to Note A and Note Q of our Notes to the Consolidated Financial Statements for description of our policies related to income taxes.

Contingencies

We have recorded a significant reserve for respirator liability claims. Our current estimate of the cost of our share of pending and future respirator liability claims is based on facts and circumstances existing at this time, including the number and nature of the remaining claims. Developments that could affect our estimate include, but are not limited to, (i) significant changes in the number of future claims, (ii) changes in the rate of dismissals without payment of pending claims, (iii) significant changes in the average cost of resolving claims, including potential settlements of groups of claims, (iv) significant changes in the legal costs of defending these claims, (v) changes in the nature of claims received or changes in our assessment of the viability of these claims, (vi) trial and appellate outcomes, (vii) changes in the law and procedure applicable to these claims, (viii) the financial viability of the parties that contribute to the payment of respirator claims, (ix) exhaustion or changes in the recoverability of the insurance coverage maintained by certain of the parties that contribute to the settlement of respirator claims, or a change in the availability of the indemnity provided by a former owner of the business, (x) changes in the allocation of costs among the various parties paying legal and settlement costs, and (xi) a determination that the assumptions that were used to estimate our share of liability are no longer reasonable. We cannot determine the impact of these potential developments on our current estimate of our share of liability for these existing and future claims. Because reserves are limited to amounts that are probable and estimable as of a relevant measurement date, and there is inherent difficulty in projecting the impact of potential developments on our share of liability for these existing and future claims, it is reasonably possible that the liabilities for existing and future claims could change in the near term and that change could be material. Refer to Note A and Note S of our Notes to the Consolidated Financial Statements for description of our policies related to contingencies.

29

Goodwill Impairment

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 and is subject to impairment testing annually, or when events or changes in the business environment indicate that the carrying value of the reporting unit may exceed its fair value.

Evaluating goodwill for impairment involves applying significant assumptions including discount rates and forecasted results for the applicable reporting unit, including earnings before interest and tax (“EBIT”), market multiples and growth rates. These assumptions are forward-looking and could be affected by future economic and market conditions. We engage third-party valuation specialists as needed to develop the assumptions used in the calculation and the evaluation of goodwill balances. Refer to Note A and Note F of our Notes to the Consolidated Financial Statements for a description of our policies related to goodwill.

Recently Issued Accounting Pronouncements

Refer to the discussion in Note B of our Notes to the Consolidated Financial Statements.

Results of Operations

Cabot is organized into two reportable segments: Reinforcement Materials and Performance Chemicals. Cabot is also organized for operational purposes into three geographic regions: the Americas; EMEA; and Asia Pacific. The discussions of our results of operations for the periods presented reflect these structures.

Our analysis of financial condition and operating results should be read together with our consolidated financial statements and accompanying notes. Unless a calendar year is specified, all references to years in this discussion are to our fiscal years ended September 30.

This section discusses our fiscal 2025 and 2024 results of operations and year-to-year comparisons between fiscal 2025 and 2024. For the discussions of our fiscal 2023 results and year-to-year comparisons between fiscal 2024 and fiscal 2023, refer to our discussions under the headings “Results of Operations” and “Cash Flows and Liquidity” in Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2024, which was filed with the United States Securities and Exchange Commission on November 20, 2024.

Definition of Terms and Non-GAAP Financial Measures

When discussing our results of operations, we use several terms as described below.

The term “product mix” refers to the mix of types and grades of products sold or the mix of geographic regions where products are sold, and the positive or negative impact this has on the revenue or profitability of the business and/or segment.

Our discussion under the heading “(Provision) Benefit for Income Taxes and Reconciliation of Effective Tax Rate to Operating Tax Rate” includes a discussion and reconciliation of our “effective tax rate” and our “operating tax rate” for the periods presented, as well as management’s projection of our operating tax rate range for the next fiscal year. Our operating tax rate is a non-GAAP financial measure and should not be considered as an alternative to our effective tax rate, the most comparable GAAP financial measure. The operating tax rate excludes income tax (expense) benefit on certain items and discrete tax items. The income tax (expense) benefit on certain items is determined using the applicable rates in the taxing jurisdictions in which the certain items occurred and includes both current and deferred income tax (expense) benefit based on the nature of the certain items. Discrete tax items include, but are not limited to, changes in valuation allowance, uncertain tax positions, and other tax items, such as the tax impact of legislative changes and tax accruals on historic earnings due to changes in indefinite reinvestment assertions. Our definition of the operating tax rate may not be comparable to the definition used by other companies. Management believes that this non-GAAP financial measure is useful supplemental information because it helps our investors compare our tax rate year-to-year on a consistent basis and to understand what our tax rate on current operations would be without the impact of these items.

30

Our discussion under the heading “Fiscal 2025 versus Fiscal 2024—By Business Segment” includes a discussion of Total segment EBIT, which is a non-GAAP financial measure defined as Income (loss) from operations before income taxes and equity in earnings from affiliated companies less certain items and other unallocated items. Our Chief Operating Decision Maker, who is our President and Chief Executive Officer, uses segment EBIT to evaluate the operating results of each segment and to allocate resources to the segments. We believe Total segment EBIT, which reflects the sum of EBIT from our reportable segments, provides useful supplemental information for our investors as it is an important indicator of our operational strength and performance, allows investors to see our results through the eyes of management, and provides context for our discussion of individual business segment performance. Total segment EBIT should not be considered an alternative for Income (loss) from operations before income taxes and equity in earnings of affiliated companies, which is the most directly comparable U.S. GAAP financial measure. A reconciliation of Total segment EBIT to Income (loss) from operations before income taxes and equity in earnings of affiliated companies is provided under the heading “Fiscal 2025 versus Fiscal 2024—By Business Segment”. Investors should consider the limitations associated with this non-GAAP measure, including the potential lack of comparability of this measure from one company to another.

In calculating Total segment EBIT, we exclude from our Income (loss) from operations before income taxes and equity in earnings of affiliated companies (i) items of expense and income that management does not consider representative of our fundamental on-going segment results, which we refer to as “certain items”, and (ii) items that, because they are not controlled by the business segments and primarily benefit corporate objectives, are not allocated to our business segments, such as interest expense and other corporate costs, which include unallocated corporate overhead expenses, such as certain corporate salaries and headquarters expenses, plus costs related to special projects and initiatives, which we refer to as “other unallocated items”. Management believes excluding the items identified as certain items facilitates operating performance comparisons from period to period by eliminating differences that would not otherwise be apparent on a GAAP basis and also facilitates an evaluation of our operating performance without the impact of these costs or benefits. The items of income and expense that we have excluded from Total segment EBIT, as applicable, but that are included in our GAAP Income (loss) from operations before income taxes and equity in earnings of affiliated companies, as applicable, are described below.

•
Global restructuring activities, which include costs or benefits associated with cost reduction initiatives or plant closures and are primarily related to (i) employee termination costs, (ii) asset impairment charges associated with restructuring actions, (iii) costs to close facilities, including environmental costs and contract termination penalties, and (iv) gains realized on the sale of land or equipment associated with restructured plants or locations

•
Indirect tax settlement charges, which include unfavorable charges related to the settlement of indirect taxes

•
Legal and environmental matters and reserves, which consist of costs or benefits for matters typically related to former businesses or that are otherwise incurred outside of the ordinary course of business

•
Employee benefit plan settlements and other charges, which consist of either charges or benefits associated with the termination of a pension plan or the transfer of a pension plan to a multi-employer plan

•
Acquisition and integration-related charges, which include transaction costs, redundant costs incurred during the period of integration, and costs associated with transitioning certain management and business processes to Cabot’s processes

•
Argentina controlled currency devaluation loss related to the foreign exchange loss from government-controlled currency devaluations on our net monetary assets denominated in the Argentine peso and investment losses related to the utilization of government bond programs established for the settlement of certain foreign payables

•
Gains (losses) on sale of a business

31

Drivers of Demand and Key Factors Affecting Profitability

Drivers of demand and key factors affecting our profitability differ by segment. In Reinforcement Materials, longer term demand is driven primarily by: i) the number of vehicle miles driven globally; ii) the number of original equipment and replacement tires produced; iii) the number of automotive builds; iv) changes in supply chain inventory levels to adapt to end-market demand and other market dynamics; v) demand for high-performance tires; vi) demand for larger tires and larger vehicles, such as trucks, buses, off-road vehicles used in agriculture, mining and similar vehicles; vii) demand for electric and hybrid vehicles; viii) consumer and industrial spending on new vehicles; and ix) changes in regulatory requirements impacting vehicle fuel efficiency and tire regulations. Over the past several years, operating results have been driven by a number of factors, including: i) increases or decreases in our sales volumes driven by changes in production levels for tires or industrial rubber products, and the region in which the production occurs, and the level at which we service that demand; ii) changes in raw material costs and our ability to adjust the sales price for our products commensurate with changes in raw material costs; iii) changes in pricing and product mix, which includes customer pricing as well as the mix of products sold or the region in which they are sold; iv) global and regional capacity utilization for carbon black; v) fixed cost savings achieved through restructuring and other cost saving activities; vi) the growth of our volumes and market position in emerging economies; vii) capacity management and technology investments, including the impact of energy utilization and yield improvement technologies at our manufacturing facilities; viii) royalties and technology payments related to our patented elastomer composites technology that is used in tire applications; and ix) changes in energy prices associated with our energy center sales and the cost of utilities.

In Performance Chemicals, longer term demand is driven primarily by the construction and infrastructure, automotive, including sales into batteries for electric vehicles, electronics, inkjet printing and consumer products industries. In recent years, operating results in Performance Chemicals have been driven by: i) increases or decreases in sales volumes to the industries previously noted; ii) changes in pricing and product mix, which includes customer pricing as well as the mix of products sold or the region in which they are sold; iii) our ability to deliver differentiated products that drive enhanced performance in customers’ applications; iv) our ability to obtain value pricing for this differentiation; v) the cost of new capacity; vi) changes in selling prices relative to variations in the cost of raw materials; vii) the adoption of new products for use in our customers’ applications; and viii) changes in supply chain inventory levels to adapt to end-market demand and other market dynamics.

Overview of Results for Fiscal 2025

During fiscal 2025, Income (loss) from operations before income taxes and equity in earnings of affiliated companies increased compared to fiscal 2024 primarily due to lower losses from government-controlled currency devaluations in Argentina and higher segment EBIT in our Performance Chemicals segment, partially offset by lower segment EBIT in our Reinforcement Materials segment.

Fiscal 2025 compared to Fiscal 2024—Consolidated

Net Sales and Other Operating Revenues and Gross Profit

Years Ended September 30

2025

2024

(In millions)

Net sales and other operating revenues

$

3,713

$

3,994

Gross profit

$

940

$

960

Net sales and other operating revenues decreased by $281 million in fiscal 2025 as compared to fiscal 2024. The decrease in net sales and other operating revenues was driven by lower volumes in our Reinforcement Materials segment ($125 million) and less favorable pricing and product mix in both our Reinforcement Materials and Performance Chemicals segment ($160 million combined). The lower volumes in our Reinforcement Materials segment were primarily due to lower customer demand driven by uncertainty from tariffs and a weaker global macroeconomic environment. The less favorable pricing and product mix in both segments were primarily driven by lower raw material costs which, in certain instances, are passed through to our customers through formulas and other market-based adjustments.

Gross profit decreased by $20 million in fiscal 2025 as compared to fiscal 2024. The decrease was primarily due to lower volumes in our Reinforcement Materials segment, partially offset by higher volumes in our Performance Chemicals segment and lower selling and administrative expenses in both our Reinforcement Materials and Performance Chemicals segments.

Selling and Administrative Expenses

Years Ended September 30

2025

2024

(In millions)

Selling and administrative expenses

$

260

$

283

32

Selling and administrative expenses decreased by $23 million in fiscal 2025 as compared to fiscal 2024. The decrease was primarily due to cost management efforts.

Research and Technical Expenses

Years Ended September 30

2025

2024

(In millions)

Research and technical expenses

$

59

$

63

Research and technical expenses decreased by $4 million in fiscal 2025 as compared to fiscal 2024. The decrease was primarily due to cost management efforts.

Interest and Dividend Income

Years Ended September 30

2025

2024

(In millions)

Interest and dividend income

$

27

$

32

Interest and dividend income in fiscal 2025 decreased by $5 million as compared to fiscal 2024 primarily due to lower interest rates, partially offset by higher average deposit balances.

Interest Expense

Years Ended September 30

2025

2024

(In millions)

Interest expense

$

76

$

81

Interest expense decreased by $5 million in fiscal 2025 as compared to fiscal 2024 primarily due to lower interest rates on short-term borrowings, partially offset by higher average short-term borrowings.

Other Income (Expense)

Years Ended September 30

2025

2024

(In millions)

Other income (expense)

$

(7

)

$

(36

)

Other expense decreased during fiscal 2025 by $29 million as compared to fiscal 2024. The decrease was primarily due to lower foreign currency losses in Argentina, including the impact of the government devaluation of the currency that occurred during the first quarter of fiscal 2024.

(Provision) Benefit for Income Taxes and Reconciliation of Effective Tax Rate to Operating Tax Rate

Years Ended September 30

2025

2024

(Provision) / Benefit for Income Taxes

Rate

(Provision) / Benefit for Income Taxes

Rate

(Dollars in millions)

Effective tax rate(1)

$

(196

)

35

%

$

(111

)

21

%

Less: Non-GAAP tax adjustments(2)

(36

)

40

Operating tax rate

$

(160

)

27

%

$

(151

)

26

%

(1)
Refer to the reconciliation of computed tax expense at the federal statutory rate to the Provision (benefit) for income taxes in Note Q of our Notes to the Consolidated Financial Statements.

(2)
Non-GAAP tax adjustments made to arrive at the operating tax provision include the income tax (expense) benefit on certain items and discrete tax items, as further described above under the heading “Definition of Terms and Non-GAAP Financial Measures”.

33

For the year ended September 30, 2025, the (Provision) benefit for income taxes was a $196 million expense compared to a $111 million expense for fiscal 2024. Included in the (provision) benefit for income taxes for the year ended September 30, 2025 is a tax expense of $31 million compared to a tax benefit of $24 million for fiscal 2024, related to a valuation allowance adjustment on our U.S. net deferred tax assets in each year. Our income taxes are affected by the mix of earnings in the tax jurisdictions in which we operate and the presence of valuation allowances in certain tax jurisdictions.

For fiscal 2026, we expect our Operating tax rate to be in the range of 27% to 29%. We are not providing a forward-looking reconciliation of the operating tax rate range with an effective tax rate range because, without unreasonable effort, we are unable to predict with reasonable certainty the matters we would allocate to “certain items,” including unusual gains and losses, costs associated with future restructurings, acquisition-related expenses, and litigation outcomes. These items are uncertain, depend on various factors, and could have a material impact on the effective tax rate in future periods.

Equity in Earnings of Affiliated Companies and Net Income (Loss) Attributable to Noncontrolling Interest, Net of Tax

Years Ended September 30

2025

2024

(In millions)

Equity in earnings of affiliated companies, net of tax

$

7

$

6

Net income (loss) attributable to noncontrolling interests,

   net of tax

$

45

$

44

Equity in earnings of affiliated companies, net of tax, increased by $1 million in fiscal 2025 compared to fiscal 2024 primarily due to higher profitability at our equity affiliate in Venezuela.

Net income (loss) attributable to noncontrolling interests, net of tax, increased by $1 million in fiscal 2025 compared to fiscal 2024 primarily due to higher profitability of our several joint ventures in China.

Net Income (Loss) Attributable to Cabot Corporation

In fiscal 2025 and 2024, we reported net income attributable to Cabot Corporation of $331 million ($6.02 earnings per diluted common share) and $380 million ($6.72 earnings per diluted common share), respectively. The decrease in fiscal 2025 was primarily due to a higher provision for income taxes ($85 million) driven by an increase in the partial valuation allowance recorded on our U.S. deferred tax assets, and lower segment EBIT in Reinforcement Materials ($29 million), partially offset by lower losses from government-controlled currency devaluations in Argentina ($43 million) and higher segment EBIT in Performance Chemicals ($30 million).

Fiscal 2025 compared to Fiscal 2024—By Business Segment

Income (loss) from operations before income taxes and equity in earnings of affiliated companies, pre-tax certain items, other unallocated items and Total segment EBIT for fiscal 2025 and 2024 are set forth in the table below. The details of certain items and other unallocated items are shown below and in Note U of our Notes to the Consolidated Financial Statements.

Years Ended September 30

2025

2024

(In millions)

Income (loss) from operations before income

   taxes and equity in earnings of affiliated companies

$

565

$

529

Less: Certain items, pre-tax

(30

)

(59

)

Less: Other unallocated items

(107

)

(113

)

Total segment EBIT

$

702

$

701

34

Certain Items:

Details of the certain items for fiscal 2025 and 2024 are as follows:

Years Ended September 30

2025

2024

(In millions)

Global restructuring activities (Note N)

$

(11

)

$

(13

)

Indirect tax settlement charges (Note S)

(7

)

—

Legal and environmental matters and reserves

(7

)

(2

)

Employee benefit plan settlement and other charges (Note L)

(3

)

—

Acquisition and integration-related charges

(1

)

—

Argentina controlled currency devaluation and other losses (Note A)

—

(43

)

Other certain items

(1

)

(1

)

Total certain items

$

(30

)

$

(59

)

An explanation of these items of expense and income is included in our discussion under the heading “Definition of Terms and Non-GAAP Financial Measures”.

Other Unallocated Items:

Years Ended September 30

2025

2024

(In millions)

Interest expense

$

(76

)

$

(81

)

Unallocated corporate costs

(52

)

(68

)

General unallocated income (expense)

28

42

Less: Equity in earnings of affiliated companies, net of tax

7

6

Total other unallocated items

$

(107

)

$

(113

)

A discussion of items that we refer to as “other unallocated items” can be found under the heading “Definition of Terms and Non-GAAP Financial Measures”. The balances of unallocated corporate costs are primarily comprised of expenditures related to managing a public company that are not allocated to the segments and corporate business development costs related to ongoing corporate projects. The balances of General unallocated income (expense) consist of gains (losses) arising from foreign currency transactions, net of other foreign currency risk management activities, interest and dividend income, and the profit or loss related to the corporate adjustment for unearned revenue and unrealized holdings gains (losses) for investments. This does not include items of income or expense from the items that are separately treated as Certain items.

In fiscal 2025, Total other unallocated items expense decreased $6 million as compared to fiscal 2024 primarily due to lower Unallocated corporate costs and Interest expense partially offset by lower General unallocated income. Interest expense declined $5 million due to lower overall debt balances and lower borrowing rates. Unallocated corporate costs were lower year-over-year by $16 million primarily due to a lower mark to market on deferred equity compensation payable to certain of our directors and lower incentive compensation expense. General unallocated income (expense) was lower in fiscal 2025 by $14 million primarily due to lower investment income in Argentina from lower investment balances and lower interest rates in the country.

Reinforcement Materials

Sales and EBIT for Reinforcement Materials for fiscal 2025 and 2024 are as follows:

Years Ended September 30

2025

2024

(In millions)

Reinforcement Materials Sales

$

2,341

$

2,610

Reinforcement Materials EBIT

$

508

$

537

In fiscal 2025, sales in Reinforcement Materials decreased by $269 million compared to fiscal 2024. The decrease was primarily due to lower volumes ($125 million) and less favorable pricing and product mix ($127 million). The lower volumes were primarily due to lower customer demand driven by uncertainty from tariffs and a weaker global macroeconomic environment. The less favorable pricing and product mix were primarily driven by lower raw material costs which, in most instances, are passed through to our customers through formulas and other market-based adjustments.

35

EBIT in Reinforcement Materials decreased by $29 million compared to fiscal 2024. The decrease was driven by lower volumes ($51 million), partially offset by lower selling and administrative expenses ($15 million) and the favorable impact from foreign currency translation ($7 million). The lower volumes were primarily due to lower customer demand driven by uncertainty from tariffs and a weaker global macroeconomic environment. The lower selling and administrative expenses were primarily due to cost management and optimization efforts.

Performance Chemicals

Sales and EBIT for Performance Chemicals for fiscal 2025 and 2024 are as follows:

Years Ended September 30

2025

2024

(In millions)

Performance Chemicals Sales

$

1,250

$

1,250

Performance Chemicals EBIT

$

194

$

164

In fiscal 2025, sales in Performance Chemicals remained flat compared to the same period of fiscal 2024.

EBIT in Performance Chemicals increased by $30 million compared to fiscal 2024 primarily due to higher volumes ($20 million), lower selling and administrative expenses ($3 million) and the favorable impact from foreign currency translation ($3 million). The higher volumes were primarily in our fumed metal oxides and battery materials product lines. The lower selling and administrative expenses were primarily due to cost management and optimization efforts.

Fiscal 2026 Outlook

Looking forward to fiscal 2026, we remain focused on executing our strategy of Creating for Tomorrow, generating strong cash flows, and continuing our disciplined approach to capital allocation. We expect EBIT in our Reinforcement Materials segment to decline driven by our expectation for the outcomes of our annual tire customer agreements to be lower in calendar 2026 as compared to calendar 2025 given the impact of tire trade flows on the regional demand for our product and a challenging macroeconomic backdrop. We expect an increase in EBIT in our Performance Chemicals segment driven by continued growth in areas such as battery materials and alternative energy applications.

Liquidity and Capital Resources

Overview

Our liquidity position, as measured by cash and cash equivalents plus borrowing availability, increased by $75 million during fiscal 2025, primarily due to a higher cash balance and lower outstanding commercial paper at the end of the period. As of September 30, 2025, we had cash and cash equivalents of $258 million and borrowing availability under our revolving credit agreements of $1.2 billion.

We have access to borrowings under the following two credit agreements:

•
$1 billion unsecured revolving credit agreement (the “U.S. Credit Agreement”) with JPMorgan Chase Bank, N.A., as Administrative Agent, Citibank, N.A., as Syndication Agent, and the other lenders party thereto, which matures in August 2027. The U.S. Credit Agreement supports our issuance of commercial paper, and borrowings under it may be used for working capital, letters of credit and other general corporate purposes.

•
€300 million unsecured revolving credit agreement (the “Euro Credit Agreement”, and together with the U.S. Credit Agreement, the “Credit Agreements”), with PNC Bank, National Association, as Administrative Agent, and the other lenders party thereto, which matures in August 2027. Borrowings under the Euro Credit Agreement may be used for the repatriation of earnings of our foreign subsidiaries to the United States, the repayment of indebtedness of our foreign subsidiaries owing to us or any of our subsidiaries and for working capital and general corporate purposes.

As of September 30, 2025, we were in compliance with the debt covenants under the Credit Agreements, which, with limited exceptions, require us to comply on a quarterly basis with a leverage test requiring the ratio of consolidated net debt to consolidated EBITDA not to exceed 3.50 to 1.00. Consolidated net debt is defined as consolidated debt offset by the lesser of (i) unrestricted cash and cash equivalents and (ii) $150 million.

36

A significant portion of our business occurs outside the U.S. and our cash generation does not always align geographically with our cash needs. The vast majority of our cash and cash equivalent holdings tend to be held outside the U.S. We generally use a combination of U.S. earnings, repatriation of certain foreign earnings, commercial paper issuances and borrowings under our U.S. Credit Agreement to meet our U.S. cash needs. With the exception of Argentina, which has some currency controls that prevent the distribution of cash, we are generally able to move cash throughout the Company through our cash pooling structures, intercompany accounts and/or distributions, as needed. Although we repatriate certain foreign earnings, cash held by foreign subsidiaries is generally considered permanently reinvested and is used to finance the subsidiaries’ operational activities and future investments. We usually reduce our commercial paper balance and, if applicable, borrowings under our Credit Agreements, at quarter-end using cash derived from customer collections, including the utilization of customer supply chain financing programs, settlement of intercompany balances and short-term intercompany loans. If additional funds are needed in the U.S., we expect to be able to repatriate cash, including cash from China, while paying any withholding or other taxes. Changes in regulations and tax laws in the U.S. or foreign countries could restrict our ability to transfer funds or impose material costs on such transfers.

As of September 30, 2025 and 2024, we had $130 million and $113 million, respectively, of borrowings outstanding under the Euro Credit Agreement and no outstanding borrowings under the U.S. Credit Agreement at either date. There was $6 million and $45 million of commercial paper outstanding at September 30, 2025 and 2024, respectively.

We anticipate sufficient liquidity from (i) cash on hand; (ii) cash flows from operating activities; and (iii) cash available from the Credit Agreements and our commercial paper program to meet our operational and capital investment needs and financial obligations for both the next twelve months and the foreseeable future. The liquidity we derive from cash flows from operations is, to a large degree, predicated on our ability to collect our receivables in a timely manner, the cost of our raw materials, and our ability to manage inventory levels.

The following discussion of the changes in our cash balance refers to the various sections of our Consolidated Statements of Cash Flows.

Cash Flows from Operating Activities

Cash provided by operating activities, which consists of net income adjusted for the various non-cash items included in income, changes in working capital, and changes in certain other balance sheet accounts, totaled $665 million in fiscal 2025. Operating activities provided $692 million of cash in fiscal 2024.

Cash provided by operating activities in fiscal 2025 was driven by business earnings excluding the non-cash impacts of depreciation and amortization of $154 million, plus a decrease in net working capital of $56 million. The decrease in net working capital was driven by a decrease in inventories from lower cost of raw materials and accounts receivable from lower sales volume in our Reinforcement Materials segment partially offset by lower accounts payable and accrued liabilities.

Cash provided by operating activities in fiscal 2024 was driven by business earnings excluding the non-cash impacts of depreciation and amortization of $151 million, plus a decrease in net working capital of $57 million. The decrease in net working capital was largely driven by a decrease in inventories from lower cost of raw materials and an increase in accounts payable and accrued liabilities, partially offset by an increase in accounts receivable from increased sales volumes.

Cash Flows from Investing Activities

Investing activities consumed $298 million of cash in fiscal 2025 compared to $235 million in fiscal 2024. In fiscal 2025, the use of cash by investing activities primarily consisted of $274 million of capital expenditures for sustaining and compliance capital projects at our operating facilities as well as growth-related capital. In addition, in fiscal 2025, investing activities included $27 million for cash paid for the asset acquisition described in Note C of our Notes to the Consolidated Financial Statements.

In fiscal 2024, the use of cash by investing activities primarily consisted of $241 million of capital expenditures for sustaining and compliance capital projects at our operating facilities as well as growth-related capital, including capacity expansion projects.

Capital expenditures for fiscal 2026 are expected to be between $200 million and $250 million. Our planned capital spending program for fiscal 2026 is primarily for sustaining, compliance, and improvement capital projects at our operating facilities.

Cash Flows from Financing Activities

Financing activities consumed $336 million of cash in fiscal 2025 compared to $415 million consumed in fiscal 2024. The cash consumed by financing activities in fiscal 2025 primarily consisted of repurchases of common stock of $168 million, net repayments of commercial paper of $39 million, dividend payments to stockholders of $96 million and dividend payments to noncontrolling interests of $57 million. These payments were partially offset by net proceeds from short-term borrowings of $8 million, net proceeds from long-term debt of $8 million and proceeds from the sales of common stock of $8 million from stock option exercises.

37

The cash consumed by financing activities in fiscal 2024 primarily consisted of repurchases of common stock of $172 million, net repayments of commercial paper of $127 million, dividend payments to stockholders of $93 million, dividend payments to noncontrolling interests of $27 million, and net repayments of long-term debt of $12 million under our Euro Credit Agreement, which includes repayments of $26 million partially offset by proceeds of $14 million. These payments were partially offset by proceeds from the sales of common stock of $20 million from stock option exercises.

Our long-term total debt, of which $260 million is current, matures at various times as presented in Note H of our Notes to the Consolidated Financial Statements. Our current plan is to refinance the $250 million in registered notes with a coupon of 3.4% that mature in September of 2026 prior to its maturity. The weighted-average interest rate on our fixed rate long-term debt was 4.29% as of September 30, 2025.

Share Repurchases

In December 2024, our Board of Directors authorized us to repurchase up to an additional ten million shares of common stock, increasing the total shares authorized for repurchase at the time to approximately eleven million shares. In fiscal 2025, we repurchased approximately 1.8 million shares of common stock on the open market for $156 million. In fiscal 2024, we repurchased approximately 1.7 million shares of common stock on the open market for $159 million. Additionally, during fiscal 2025 and 2024, we repurchased 0.1 million and 0.2 million, respectively, shares of our common stock associated with employee tax obligations on stock-based compensation awards for $12 million and $13 million, respectively. As of September 30, 2025, we had approximately 9.5 million shares available for repurchase under the Board of Directors’ share repurchase authorization.

Dividend Payments

In fiscal 2025 and 2024, we paid cash dividends on our common stock of $1.76 and $1.66 per share, respectively. These cash dividend payments totaled $96 million and $93 million in fiscal 2025 and 2024, respectively.

Employee Benefit Plans

As of September 30, 2025, we had a consolidated pension obligation, net of the fair value of plan assets, of $26 million, primarily associated with postretirement benefit plan liabilities.

In fiscal 2025, we made cash contributions totaling $4 million to our defined benefit pension plans. In fiscal 2026, we expect to make cash contributions of $5 million to our defined benefit pension plans.

The $23 million of unfunded postretirement benefit plan liabilities is comprised of $12 million for our U.S. and $11 million for our foreign postretirement benefit plans. These postretirement benefit plans provide certain health care and life insurance benefits for retired employees. Typical of such plans, our postretirement plans are unfunded and, therefore, have no plan assets. We fund these plans as claims or insurance premiums come due. In fiscal 2025, we paid postretirement benefits of $3 million. For fiscal 2026, our benefit payments for our postretirement plans are expected to be $2 million.

In fiscal 2023, we commenced the plan termination process for the Cabot Carbon Limited Pension Plan and Carbon Plastics Pension Plan and expect to complete this process in fiscal 2026.

Contractual Obligations

The following table sets forth our long-term contractual obligations.

Payments Due by Fiscal Year

2026

2027

2028

2029

2030

Thereafter

Total

(In millions)

Purchase commitments

$

216

$

170

$

120

$

102

$

100

$

1,037

$

1,745

Long-term debt

254

129

9

300

—

400

1,092

Fixed interest on long-term debt

41

33

32

32

20

40

198

Variable interest on long-term debt

4

4

—

—

—

—

8

Finance leases(1)

7

5

5

3

3

11

34

Operating leases(1)

17

14

11

10

10

65

127

Total

$

539

$

355

$

177

$

447

$

133

$

1,553

$

3,204

(1)
Lease liabilities include interest.

38

Purchase Commitments

We have entered into long-term, volume-based purchase agreements primarily for the purchase of raw materials and natural gas with various key suppliers for all of our business segments. Under certain of these agreements the quantity of material being purchased is fixed, but the price we pay changes as market prices change. For purposes of the table above, current purchase prices have been used to quantify those total commitments. We have also entered into long-term purchase agreements primarily for services related to information technology, which are included in the table above.

Leases

We have entered into various leases as the lessee, primarily related to certain transportation vehicles, warehouse facilities, office space, and machinery and equipment. These leases have remaining lease terms between one and fifteen years, some of which may include options to extend the leases for up to fifteen years or options to terminate the leases. Our land leases have remaining lease terms up to seventy-seven years.