Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2015 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Chemours Co |
Entity Central Index Key | 1,627,223 |
Document Type | S4 |
Document Period End Date | Dec. 31, 2015 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Document Fiscal Year Focus | 2,015 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Income Statement [Abstract] | ||||||
Net sales | [1] | $ 5,717 | $ 6,432 | $ 6,859 | ||
Cost of goods sold | 4,762 | 5,072 | 5,395 | |||
Gross profit | 955 | 1,360 | 1,464 | |||
Selling, general and administrative expense | 632 | 685 | 768 | |||
Research and development expense | 97 | 143 | 164 | |||
Employee separation and asset related charges, net | 333 | 21 | 2 | |||
Goodwill impairment | 25 | 0 | 0 | |||
Total expenses | 1,087 | 849 | 934 | |||
Equity in earnings of affiliates | 22 | 20 | 22 | |||
Interest expense, net | (132) | 0 | 0 | |||
Other income, net | 54 | 19 | 24 | |||
(Loss) income before income taxes | (188) | 550 | 576 | |||
(Benefit from) provision for income taxes | (98) | 149 | 152 | |||
Net (loss) income | (90) | 401 | 424 | |||
Less: Net income attributable to noncontrolling interests | 0 | 1 | 1 | |||
Net (loss) income attributable to Chemours | $ (90) | $ 400 | $ 423 | |||
Per share data | ||||||
Basic (loss) earnings per share of common stock (USD per share) | $ (0.50) | $ 2.21 | [2] | $ 2.34 | [2] | |
Diluted (loss) earnings per share of common stock (USD per share) | (0.50) | $ 2.21 | [2] | $ 2.34 | [2] | |
Dividends per share of common stock (USD per share) | $ 0.58 | |||||
[1] | Net sales are attributed to countries based on customer location. | |||||
[2] | On July 1, 2015, E. I. du Pont de Nemours and Company distributed 180,966,833 shares of Chemours' common stock to holders of its common stock. Basic and diluted (loss) earnings per common share for the years ended December 31, 2014 and 2013 were calculated using the shares distributed on July 1, 2015. Refer to Note 9 for information regarding the calculation of basic and diluted earnings per share. |
Consolidated Statements of Ope3
Consolidated Statements of Operations (Parenthetical) | Jul. 01, 2015shares |
Income Statement [Abstract] | |
Number of basic common shares | 180,966,833 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) Income, pre-tax | $ (188) | $ 550 | $ 576 | |
Net (loss) Income, tax | 98 | (149) | (152) | |
Net (loss) income | (90) | 401 | 424 | |
Unrealized gain on net investment hedge, pre-tax | 8 | 0 | 0 | |
Unrealized gain on net investment hedge, tax | 0 | 0 | 0 | |
Unrealized gain on net investment hedge, after-tax | 8 | 0 | 0 | |
Cumulative translation adjustment, pre-tax | (304) | 0 | 0 | |
Cumulative translation adjustment, tax | 0 | 0 | 0 | |
Cumulative translation adjustment, after-tax | (304) | 0 | 0 | |
Net loss | (11) | 0 | 0 | |
Net loss, tax | 1 | 0 | 0 | |
Net loss, after-tax | (10) | 0 | 0 | |
Prior service credit, pre-tax | 24 | 0 | 0 | |
Prior service credit, tax | (4) | 0 | 0 | |
Prior service credit, after-tax | 20 | 0 | 0 | |
Effect of foreign exchange rates | 33 | 0 | 0 | |
Effect of foreign exchange rates, tax | (8) | 0 | 0 | |
Effect of foreign exchange rates, after-tax | 25 | 0 | 0 | |
Amortization of prior service cost | [1] | 4 | 0 | 0 |
Amortization of prior service cost, tax | [1] | 0 | 0 | 0 |
Amortization of prior service cost, after tax | [1] | 4 | 0 | 0 |
Amortization of loss, pre-tax | [1] | 16 | 0 | 0 |
Amortization of loss, tax | [1] | (3) | 0 | 0 |
Amortization of loss, after tax | [1] | 13 | 0 | 0 |
Defined benefit plans, net, pre-tax | [1] | 66 | 0 | 0 |
Defined benefit plans, net, tax | [1] | (14) | 0 | 0 |
Defined benefit plans, net, after-tax | [1] | 52 | 0 | 0 |
Other comprehensive loss, pre-tax | (230) | 0 | 0 | |
Other comprehensive loss, tax | (14) | 0 | 0 | |
Other comprehensive loss, after-tax | (244) | 0 | 0 | |
Comprehensive (loss) income, pre-tax | (418) | 550 | 576 | |
Comprehensive (loss) income, tax | 84 | (149) | (152) | |
Comprehensive (loss) income, after-tax | (334) | 401 | 424 | |
Comprehensive income attributable to noncontrolling interests, pre-tax | 0 | 1 | 1 | |
Comprehensive income attributable to noncontrolling interests, tax | 0 | 0 | 0 | |
Comprehensive income attributable to noncontrolling interests, after-tax | 0 | 1 | 1 | |
Comprehensive (loss) income attributable to Chemours, pre-tax | (418) | 549 | 575 | |
Comprehensive (loss) income attributable to Chemours, tax | 84 | (149) | (152) | |
Comprehensive (loss) income attributable to Chemours, after-tax | $ (334) | $ 400 | $ 423 | |
[1] | These other comprehensive income (loss) components are included in the computation of net periodic benefit costs. Refer to Note 21 for further information. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash | $ 366 | $ 0 |
Accounts and notes receivable - trade, net | 859 | 846 |
Inventories | 972 | 1,052 |
Prepaid expenses and other | 104 | 43 |
Total current assets | 2,301 | 1,941 |
Property, plant and equipment | 9,015 | 9,282 |
Less: Accumulated depreciation | (5,838) | (5,974) |
Net property, plant and equipment | 3,177 | 3,308 |
Goodwill | 166 | 198 |
Other intangible assets, net | 10 | 11 |
Investments in affiliates | 136 | 124 |
Other assets | 508 | 377 |
Total assets | 6,298 | 5,959 |
Current liabilities: | ||
Accounts payable | 973 | 1,046 |
Short-term borrowings and current maturities of long-term debt | 39 | 0 |
Other accrued liabilities | 454 | 352 |
Total current liabilities | 1,466 | 1,398 |
Long-term debt | 3,915 | 0 |
Other liabilities | 553 | 464 |
Deferred income taxes | 234 | 424 |
Total liabilities | $ 6,168 | $ 2,286 |
Commitments and contingent liabilities | ||
Equity | ||
Common stock (par value $0.01 per share; 810,000,000 shares authorized; 181,069,751 shares issued and outstanding as of December 31, 2015) | $ 2 | $ 0 |
Additional paid-in capital | 775 | 0 |
DuPont Company Net Investment, prior to separation | 0 | 3,650 |
Accumulated deficit | (115) | 0 |
Accumulated other comprehensive (loss) income | (536) | 19 |
Total Chemours stockholders' equity | 126 | 3,669 |
Noncontrolling interests | 4 | 4 |
Total equity | 130 | 3,673 |
Total liabilities and equity | $ 6,298 | $ 5,959 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) | Dec. 31, 2015$ / sharesshares |
Statement of Financial Position [Abstract] | |
Common stock , par value (USD per share) | $ / shares | $ 0.01 |
Common stock, shares authorized | 810,000,000 |
Common stock, shares issued | 181,069,751 |
Common stock, shares outstanding | 181,069,751 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Common Stock [Member] | DePont Company Net Investment [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interests [Member] | Accumulated Deficit [Member] | Total |
Total stockholders' equity, beginning balance at Dec. 31, 2012 | $ 3,146 | $ 0 | $ 19 | $ 2 | $ 0 | $ 3,167 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 423 | 1 | 424 | ||||
Other comprehensive loss | 0 | ||||||
Net transfers from DuPont | (374) | (374) | |||||
Total stockholders' equity, ending balance at Dec. 31, 2013 | 3,195 | 0 | 19 | 3 | 0 | 3,217 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 400 | 1 | 401 | ||||
Other comprehensive loss | 0 | ||||||
Net transfers from DuPont | 55 | 55 | |||||
Total stockholders' equity, ending balance at Dec. 31, 2014 | 3,650 | 0 | 19 | 4 | 0 | 3,673 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 25 | (115) | (90) | ||||
Other comprehensive loss | (244) | (244) | |||||
Issuance of Common Stock at separation (in shares) | 180,966,833 | ||||||
Issuance of Common Stock at separation | $ 2 | (2) | 0 | ||||
Common Stock issued - compensation plans (in shares) | 102,918 | ||||||
Establishment of pension plans, net and related accumulated other comprehensive income (loss) | 268 | (311) | (43) | ||||
Dividends declared | (100) | (5) | (105) | ||||
Non-cash debt exchange | (507) | (507) | |||||
Cash provided at separation by DuPont | 247 | 247 | |||||
Net transfers from DuPont | (3,583) | 769 | (2,814) | ||||
Stock-based compensation expense | 13 | 0 | 13 | ||||
Shares, ending balance at Dec. 31, 2015 | 181,069,751 | ||||||
Total stockholders' equity, ending balance at Dec. 31, 2015 | $ 2 | $ 0 | $ 775 | $ (536) | $ 4 | $ (115) | $ 130 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities | |||
Net (loss) income | $ (90) | $ 401 | $ 424 |
Adjustments to reconcile net (loss) income to cash provided by operating activities: | |||
Depreciation and amortization | 267 | 257 | 261 |
Amortization of deferred financing costs and issuance discount | 8 | 0 | 0 |
Other operating charges and credits, net | 7 | 18 | 13 |
Loss (gain) on sale of assets and businesses | 9 | (40) | (7) |
Equity in earnings of affiliates, net of dividends received of $23, $19 and $19 | 0 | 1 | (1) |
Deferred tax benefit | (198) | (22) | (14) |
Asset related charges | 206 | 0 | 0 |
(Increase) decrease in operating assets: | |||
Accounts and notes receivable - trade, net | (64) | 4 | (37) |
Inventories and other operating assets | 19 | (29) | (75) |
Increase (decrease) in operating liabilities: | |||
Accounts payable and other operating liabilities | 18 | (85) | 234 |
Cash provided by operating activities | 182 | 505 | 798 |
Investing activities | |||
Purchases of property, plant and equipment | (519) | (604) | (438) |
Proceeds from sales of assets, net | 12 | 32 | 14 |
Foreign exchange contract settlements | 42 | 0 | 0 |
Investment in affiliates | (32) | (8) | 0 |
Other investing activities | 0 | 20 | 0 |
Cash used for investing activities | (497) | (560) | (424) |
Financing activities | |||
Proceeds from issuance of debt, net | 3,491 | 0 | 0 |
Debt repayments | (10) | 0 | 0 |
Dividends paid | (105) | 0 | 0 |
Debt issuance costs | (79) | 0 | 0 |
Cash provided at separation by DuPont | 247 | 0 | 0 |
Net transfers (to) from DuPont | (2,857) | 55 | (374) |
Cash provided by (used for) financing activities | 687 | 55 | (374) |
Effect of exchange rate changes on cash | (6) | 0 | 0 |
Increase in cash | 366 | 0 | 0 |
Cash at beginning of year | 0 | 0 | 0 |
Cash at end of year | 366 | 0 | 0 |
Cash paid during the year for: | |||
Interest, net of amounts capitalized | 103 | 0 | 0 |
Income taxes, net of refunds | 53 | 0 | 0 |
Non-cash change in property, plant and equipment included in accounts payable | $ 45 | $ (11) | $ 0 |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Cash Flows [Abstract] | |||
Dividends received | $ 23 | $ 19 | $ 19 |
Background and Description of t
Background and Description of the Business | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Description of the Business | Note 1. Background and Description of the Business The Chemours Company (Chemours or the Company) delivers customized solutions with a wide range of industrial and specialty chemical products for markets including plastics and coatings, refrigeration and air conditioning, general industrial, mining and oil refining. Principal products include titanium dioxide (TiO 2 Chemours is globally operated with manufacturing facilities, sales centers, administrative offices and warehouses located throughout the world. Chemours’ operations are primarily located in the United States (U.S.), Canada, Mexico, Brazil, the Netherlands, Belgium, China, Taiwan, Japan, Switzerland, Singapore, Hong Kong, India, the United Kingdom, and France. As of December 31, 2015, Chemours consists of 35 production facilities globally, five dedicated to Titanium Technologies, 16 dedicated to Fluoroproducts, 13 dedicated to Chemical Solutions and one that supports multiple Chemours segments. Effective prior to the opening of trading on the New York Stock Exchange (NYSE) on July 1, 2015 (the Distribution Date), E. I. du Pont de Nemours and Company (DuPont) completed the previously announced separation of the businesses comprising DuPont’s Performance Chemicals reporting segment, and certain other assets and liabilities, into Chemours, a separate and distinct public company. The separation was completed by way of a distribution of all of the then-outstanding shares of common stock of Chemours through a dividend in kind of Chemours’ common stock (par value $0.01) to holders of DuPont common stock (par value $0.30) as of the close of business on June 23, 2015 (the Record Date) (the transaction referred to herein as the Distribution). On the Distribution Date, each holder of DuPont’s common stock received one share of Chemours’ common stock for every five shares of DuPont’s common stock held on the Record Date. The spin-off was completed pursuant to a separation agreement and other agreements with DuPont related to the spin-off, including an employee matters agreement, a tax matters agreement, a transition services agreement and an intellectual property cross-license agreement. These agreements govern the relationship between Chemours and DuPont following the spin-off and provided for the allocation of various assets, liabilities, rights and obligations. These agreements also include arrangements for transition services to be provided by DuPont to Chemours. Unless the context otherwise requires, references in these Notes to the Consolidated Financial Statements to “we,” “us,” “our,” “Chemours” and the “Company” refer to The Chemours Company and its consolidated subsidiaries after giving effect to the Distribution. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 2. Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP). In the opinion of management, all adjustments considered necessary for a fair statement of the results have been included. Certain reclassifications of prior year’s data have been made to conform to the current presentation, primarily relating to the adoption of Accounting Standards Update (ASU) No. 2015-17, “Income Taxes (Topic 740) —Balance Sheet Classification of Deferred Taxes” (see recent accounting pronouncements in Note 3 for further information). Unless otherwise stated, references to years relate to Chemours’ fiscal years. The notes that follow are an integral part of the Consolidated Financial Statements. Chemours did not operate as a separate, stand-alone entity for the full period covered by Consolidated Financial Statements. Prior to our spin-off on July 1, 2015, Chemours operations were included in DuPont’s financial results in different legal forms, including but not limited to wholly-owned subsidiaries for which Chemours was the sole business, components of legal entities in which Chemours operated in conjunction with other DuPont businesses and a majority owned joint venture. For periods prior to July 1, 2015, the accompanying Consolidated Financial Statements have been prepared from DuPont’s historical accounting records and are presented on a stand-alone basis as if the business operations had been conducted independently from DuPont. Prior to January 1, 2015, aside from a Japanese entity that is a dual-resident for U.S. federal income tax purposes, there was no direct ownership relationship among all the other various legal entities comprising Chemours. Prior to July 1, 2015, DuPont and its subsidiaries’ net investments in these operations are shown in lieu of Stockholder’s Equity in the Consolidated Financial Statements. The Consolidated Financial Statements include the historical operations, assets and liabilities of the legal entities that are considered to comprise the Chemours business, including certain environmental remediation and litigation obligations of DuPont and its subsidiaries that Chemours may be required to indemnify pursuant to the separation-related agreements executed prior to the spin-off. All of the allocations and estimates in the Consolidated Financial Statements prior to July 1, 2015 are based on assumptions that management believes are reasonable. However, the Consolidated Financial Statements included herein may not be indicative of the financial position, results of operations and cash flows of Chemours in the future or if Chemours had been a separate, stand-alone entity during the periods presented. The net transfers from DuPont on the Consolidated Statements of Stockholder’s Equity include a non-cash contribution from DuPont of $109 for the year ended December 31, 2015. This non-cash contribution occurred during physical separation activities at shared production facilities in the United States prior to the spin-off and certain assets identified at separation. It was determined that assets previously managed by other DuPont businesses would be transferred to and managed by Chemours. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 3. Summary of Significant Accounting Policies These Consolidated Financial Statements have been prepared in accordance with GAAP. The significant accounting policies described below, together with the other notes that follow, are an integral part of the Consolidated Financial Statements. Preparation of Financial Statements The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses, including allocations of costs as discussed above, during the reporting period. Management’s estimates are based on historical experience, facts and circumstances available at the time and various other assumptions that we believe are reasonable. Actual results could differ from those estimates. Principles of Consolidation and Combination The Consolidated Financial Statements include the accounts Chemours and its subsidiaries, and entities in which a controlling interest is maintained. For those consolidated subsidiaries in which the Company's ownership is less than 100%, the outside shareholders' interests are shown as noncontrolling interests. Investments in companies in which Chemours, directly or indirectly, owns 20% to 50% of the voting stock and has the ability to exercise significant influence over operating and financial policies of the investee are accounting for using the equity method of accounting. As a result, Chemours' share of the earnings or losses of such equity affiliates is included in the accompanying Consolidated Statements of Operations and our share of these companies' stockholders' equity is included in the accompanying Consolidated Balance Sheets. The financial statements for the periods prior to our spin-off on July 1, 2015 include the combined assets, liabilities, revenues, and expenses of Chemours. We eliminated all intercompany accounts and transactions in the preparation of the accompanying Consolidated and Combined Financial Statements. Revenue Recognition Revenue is recognized when the earnings process is complete. Revenue for product sales is recognized when products are shipped to the customer in accordance with the terms of the agreement, when title and risk of loss have been transferred, collectability is reasonably assured and pricing is fixed or determinable. Revenue associated with advance payments are recorded as deferred revenue and are recognized as shipments are made and title, ownership and risk of loss pass to the customer. Accruals are made for sales returns and other allowances based on historical experience. Cash sales incentives are accounted for as a reduction in sales and noncash sales incentives are recorded as a charge to cost of goods sold at the time the revenue or selling expense, depending on the nature of the incentive, is recorded. Amounts billed to customers for shipping and handling fees are included in net sales and costs incurred by Chemours for the delivery of goods are classified as cost of goods sold in the Consolidated Statements of Operations. Taxes on revenue-producing transactions are excluded from net sales. Licensing and royalty income is recognized in accordance with agreed upon terms, when performance obligations are satisfied, the amount is fixed or determinable and collectability is reasonably assured. Cash and Cash Equivalents Cash and cash equivalents generally include cash, time deposits or highly liquid investments with original maturities of three months or less. Prior to the spin-off, Chemours participated in DuPont’s centralized cash management and financing programs (see Note 4 for additional information). Receivables and Allowance for Doubtful Accounts Receivables are recognized net of an allowance for doubtful accounts. The allowance for doubtful accounts reflects the best estimate of losses inherent in Chemours’ accounts receivable portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other available evidence. Accounts receivable are written off when management determines that they are uncollectible. Inventories Chemours’ inventories are valued at the lower of cost or market. Inventories held at substantially all U.S. locations are valued using the last-in, first-out (LIFO) method. Inventories held outside the U.S. are determined by the average cost method. Elements of cost in inventories include raw materials, direct labor, and manufacturing overhead. Stores and supplies are valued at cost or market, whichever is lower; cost is generally determined by the average cost method. Approximately 61% and 52% of inventory is on a LIFO basis as of December 31, 2015 and 2014, respectively. The remainder is accounted for using the average cost method. Property, Plant and Equipment Property, plant and equipment is carried at cost and is depreciated using the straight-line method. Property, plant and equipment placed in service prior to 1995 is depreciated under the sum-of-the-years’ digits method or other substantially similar methods. Substantially all equipment and buildings are depreciated over useful lives ranging from 15 to 25 years . Capitalizable costs associated with computer software for internal use are amortized on a straight-line basis over five to seven years . When assets are surrendered, retired, sold or otherwise disposed of, their gross carrying values and related accumulated depreciation are removed from the balance sheet and included in determining gain or loss on such disposals. Repair and maintenance costs that materially add to the value of the asset or prolong its useful life are capitalized and depreciated based on the extension to the useful life. Capitalized repair and maintenance costs are recorded on the Consolidated Balance Sheets in other assets. Direct Financing Type Leases Certain of Chemours’ facilities are located on land owned by third parties. The plant and equipment built on this land is constructed by, owned, and operated by Chemours for the exclusive benefit of the third party landlord. The useful lives of the equipment are generally shorter than the lease term, or there exists a purchase option for the third party to acquire the equipment at the end of the lease term. Based on an analysis of the underlying agreements, management has determined that these agreements and property represent a direct financing type lease, whereby Chemours is the lessor of its equipment to the third party landlords. As such, the related plant and equipment are reported as leases receivable. The current portion is included in accounts and notes receivable - trade, net (see Note 10) and the non-current portion is included in other assets (see Note 14) in the Consolidated Balance Sheets. The equipment has zero net book value within property, plant and equipment. Goodwill and Other Intangible Assets The excess of the purchase price over the estimated fair value of the net assets acquired, including identified intangibles, is recorded as goodwill. Goodwill is tested for impairment annually on October 1; however, these tests are performed more frequently when events or changes in circumstances indicate that the asset may be impaired. Impairment exists when carrying value exceeds fair value. Goodwill is evaluated for impairment at the reporting unit level. Evaluating goodwill for impairment is a two-step process. In the first step, Chemours compares the carrying value of net assets to the fair value of the related operations. Chemours’ methodology for estimating the fair value of its reporting units is using the income approach based on the present value of future cash flows. The factors considered in determining the cash flows include: 1) macroeconomic conditions; 2) industry and market considerations; 3) costs of raw materials, labor or other costs having a negative effect on earnings and cash flows; 4) overall financial performance; and 5) other relevant entity-specific events. If the fair value is determined to be less than the carrying value, a second step is performed to compute the amount of the impairment. Definite-lived intangible assets, such as purchased and licensed technology, patents, trademarks, and customer lists are amortized over their estimated useful lives, generally for periods ranging from five to 20 years Impairment of Long-Lived Assets Chemours evaluates the carrying value of long-lived assets to be held and used when events or changes in circumstances indicate the carrying value may not be recoverable. For purposes of recognition or measurement of an impairment loss, the assessment is performed on the asset or asset group at the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. To determine the level at which the assessment is performed, Chemours considers factors such as revenue dependency, shared costs and the extent of vertical integration. The carrying value of a long-lived asset is considered impaired when the total projected undiscounted cash flows from the use and eventual disposition of an asset or asset group are separately identifiable and are less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. The fair value methodology used is an estimate of fair market value which is made based on prices of similar assets or other valuation methodologies including present value techniques. Long-lived assets to be disposed of other than by sale are classified as held for use until their disposal. Long-lived assets to be disposed of by sale are classified as held for sale and are reported at the lower of carrying amount or fair market value less cost to sell. Depreciation is discontinued for long-lived assets classified as held for sale. Research and Development Research and development costs are expensed as incurred. Research and development expenses include costs (primarily consisting of employee costs, materials, contract services, research agreements, and other external spend) relating to the discovery and development of new products, enhancement of existing products and regulatory approval of new and existing products. Environmental Liabilities and Expenditures Chemours accrues for remediation activities when it is probable that a liability has been incurred and a reasonable estimate of the liability can be made. Environmental liabilities and expenditures included in the Consolidated Financial Statements include claims for matters that are liabilities of DuPont and its subsidiaries, that Chemours may be required to indemnify pursuant to the separation-related agreements executed prior to the spin-off. Accruals for environmental matters are recorded in cost of goods sold when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Accrued liabilities do not include claims against third parties and are not discounted. Costs related to environmental remediation are charged to expense in the period incurred. Other environmental costs are also charged to expense in the period incurred, unless they increase the value of the property or reduce or prevent contamination from future operations, in which case they are capitalized and amortized. Asset Retirement Obligations Chemours records asset retirement obligations at fair value at the time the liability is incurred. Fair value is measured using expected future cash outflows discounted at Chemours’ credit-adjusted risk-free interest rate, which are considered level 3 inputs. Accretion expense is recognized as an operating expense classified within cost of goods sold on the Consolidated Income Statements using the credit-adjusted risk-free interest rate in effect when the liability was recognized. The associated asset retirement obligations are capitalized as part of the carrying amount of the long-lived asset and depreciated over the estimated remaining useful life of the asset, generally for periods ranging from two to 25 years . Litigation Chemours accrues for litigation matters when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Litigation liabilities and expenditures included in the Consolidated Financial Statements represent litigation matters that are liabilities of DuPont and its subsidiaries, that Chemours may be required to indemnify pursuant to the separation-related agreements executed prior to the spin-off. Legal costs such as outside counsel fees and expenses are charged to expense in the period services are received. Insurance Chemours insures certain risks where permitted by law or regulation, including workers' compensation, vehicle liability and employee related benefits. Liabilities associated with these risks are estimated in part by considering historical claims experience, demographic factors and other actuarial assumptions. For other risks, the Company uses a combination of insurance and self-insurance, reflecting comprehensive reviews of relevant risks. A receivable for an insurance recovery is generally recognized when the loss has occurred and collection is considered probable. Prior to the spin-off, Chemours was a participant in DuPont’s self-insurance program where permitted by law or regulation, including workers’ compensation, vehicle liability and employee related benefits. Liabilities associated with these risks are estimated in part by considering historical claims experience, demographic factors, and other actuarial assumptions. For other risks, a combination of insurance and self-insurance is used, reflecting comprehensive reviews of relevant risks. The annual cost was allocated to all of the participating businesses using methodologies deemed reasonable by management. All obligations pursuant to these plans have historically been obligations of DuPont. As such, these obligations were not included in the Consolidated Balance Sheets, with the exception of self-insurance liabilities related to workers compensation, vehicle liability and employee related benefits. Defined Benefit Plans We have defined benefit plans covering certain of our employees outside the U.S., which are generally required by local regulations. The benefits, which primarily relate to pension, are accrued over the employees’ service periods. We use actuarial methods and assumptions in the valuation of defined benefit obligations and the determination of net periodic pension income or expense. Differences between actual and expected results or changes in the value of defined benefit obligations and plan assets, if any, are not recognized in earnings as they occur but rather systematically over subsequent periods. Stock-based Compensation Chemours' stock-based compensation consists of stock options and restricted stock units (RSUs) to employees and non-employee directors. Stock options are measured at fair value on the grant date or date of modification, as applicable. We recognize compensation expense on a straight-line basis over the requisite service period. The number of awards ultimately expected to vest is determined by use of an estimated forfeiture rate. The estimated forfeiture rate is based on historical data for the employee group awarded options and expected employee turnover rates, which management reevaluates each period. Income Taxes The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax basis of Chemours’ assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Chemours recognizes income tax positions that meet the more likely than not threshold and accrues interest related to unrecognized income tax positions, which is included in other income, net in our Consolidated Statements of Operations. Income tax related penalties are included in the provision for income taxes. Chemours does not provide for income taxes on undistributed earnings of all foreign subsidiaries that are intended to be indefinitely reinvested. Prior to the separation on July 1, 2015, income taxes presented attributed current and deferred income taxes of DuPont to Chemours’ stand-alone financial statements in a manner that is systematic, rational, and consistent with the asset and liability method prescribed by ASC 740, Income Taxes (ASC 740). Accordingly, Chemours’ income tax provision was prepared following the separate return method. The separate return method applies ASC 740 to the stand-alone financial statements of each member of the consolidated group as if the group member were a separate taxpayer and a stand-alone enterprise. Foreign Currency Translation Chemours identifies its separate and distinct foreign entities and groups them into two categories: (1) extensions of the parent (U.S. dollar functional currency) and (2) self-contained (local functional currency). If a foreign entity does not align with either category, factors are evaluated and a judgment is made to determine the functional currency. Chemours changes the functional currency of its separate and distinct foreign entities only when significant changes in economic facts and circumstances indicate clearly that the functional currency has changed. During the periods covered by the Consolidated Financial Statements, part of the Chemours business operated within foreign entities. For foreign entities where the U.S. dollar is the functional currency, all foreign currency-denominated asset and liability amounts are remeasured into U.S. dollars at end-of-period exchange rates, except for inventories; prepaid expenses; property, plant and equipment; goodwill and other intangible assets, which are remeasured at historical rates. Foreign currency-denominated income and expenses are remeasured at average exchange rates in effect during the period, except for expenses related to balance sheet amounts remeasured at historical exchange rates. Exchange gains and losses arising from remeasurement of foreign currency-denominated monetary assets and liabilities are included in other income, net in the period in which they occur. For foreign entities where the local currency is the functional currency, assets and liabilities denominated in local currencies are translated into U.S. dollars at end-of-period exchange rates and the resulting translation adjustments are reported as a component of accumulated other comprehensive (loss) income in equity. Assets and liabilities denominated in other than the functional currency are remeasured into the functional currency prior to translation into U.S. dollars and the resulting exchange gains or losses are included in income in the period in which they occur. Income and expenses are translated into U.S. dollars at average exchange rates in effect during the period. Beginning in 2015, when the Chemours operations were legally and operationally separated within DuPont in anticipation of the spin-off, certain of Chemours foreign entities set their local currency as the functional currency. Derivatives Chemours enters into forward currency exchange contracts to minimize volatility in earnings related to the foreign exchange gains and losses resulting from remeasuring net monetary assets that Chemours holds which are denominated in non-functional currencies. Chemours does not hold or issue financial instruments for speculative or trading purposes. The derivative assets and liabilities are reported on a gross basis in the Consolidated Balance Sheets. All gains and losses resulting from the revaluation of the derivative assets and liabilities are recognized in other income, net in the Consolidated Statements of Operations during the period in which they occurred. Please refer to Note 20 for additional information. Fair Value Measurement Under the accounting for fair value measurements and disclosures, a fair value hierarchy was established that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Chemours uses the following valuation techniques to measure fair value for its assets and liabilities: (a) Level 1—Quoted market prices in active markets for identical assets and liabilities; (b) 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); and (c) Level 3—Unobservable inputs for the asset or liability, which are valued based on management's estimates of assumptions that market participants would use in pricing the asset or liability. Recent Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (FASB) issued ASU No. 2015-17, "Income Taxes (Topic 740) - Balance Sheet Classification of Deferred Taxes," to simplify the presentation of deferred income taxes and require that deferred income tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, and earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The Company retroactively adopted this change effective in 2015 and as such the 2014 Consolidated Balance Sheet reflects the reclassifications affecting total current assets, total assets, total current liabilities and total liabilities. The reclassifications did not have a significant impact on Chemours' financial position and had no impact on its results of operations or cash flows. See Note 8 for additional information. In June 2015, the FASB issued ASU No. 2015-11, "Inventory (Topic 330), Simplifying the Measurement of Inventory," which requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Currently, the inventory standard requires an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The amendment does not apply to inventory that is measured using LIFO or the retail inventory method but applies to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. The amendment is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. Chemours is currently evaluating the impact of adopting this guidance. In May 2015, the FASB issued ASU No. 2015-07, "Fair Value Measurement (Topic 820) - Disclosures for Investment in Certain Entities that Calculate Net Asset Value per Share or its Equivalent." This guidance removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The guidance also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The amendment is effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. A reporting entity should apply the amendments retrospectively to all periods presented and earlier application is permitted. Chemours adopted this guidance effective January 1, 2016. The adoption is not expected to have a significant impact on our financial position and results of operations. In April 2015, the FASB issued ASU No. 2015-05, "Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement," which provides guidance about whether a cloud computing arrangement includes a software license. The customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If the cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This guidance is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015, and early adoption is permitted. Chemours adopted this guidance effective January 1, 2016. The adoption is not expected to have a significant impact on our financial position and results of operations. In April 2015, the FASB issued ASU No. 2015-03, “Interest — Imputation of Interest (Subtopic 835-30),” which requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The guidance is effective for public entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015 with early adoption permitted, including adoption in an interim period. Chemours adopted this guidance for the quarter ending June 30, 2015. The adoption of this standard had no impact on Chemours’ results of operations or cash flows. Due to the accounting change described above, Chemours recorded debt issuance costs incurred for the issuance of its senior secured term loans and senior unsecured notes as a reduction of the liability on the Consolidated Balance Sheets. See Note 18 for additional information. In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” The amendments modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities and eliminate the presumption that a general partner should consolidate a limited partnership. The amendment is effective for public entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Chemours adopted this guidance effective January 1, 2016. The adoption is not expected to have a significant impact on our financial position and results of operations. In May 2014, the FASB and the International Accounting Standards Board (IASB) jointly issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," which clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting Standards (IFRS). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance is effective for public entities for annual and interim periods beginning after December 15, 2016 (original effective date). In July 2015, the FASB approved a deferral of the effective date of this guidance to provide entities with adequate time to effectively implement the new revenue standard and adoption as of the original effective date is permitted. The Company is currently evaluating the impact of adopting this guidance on its financial position and results of operations. In April 2014, the FASB issued ASU No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” amending existing requirements for reporting discontinued operations and disposals of components of an entity. The amended guidance limits the discontinued operations reporting to disposal transactions that represent strategic shifts having a major effect on operations and financial results. The amendment also enhances disclosures and requires assets and liabilities of a discontinued operation to be classified as such for all periods presented in the financial statements. Chemours adopted this guidance effective on January 1, 2015. Due to the change in requirements for reporting discontinued operations described above, presentation and disclosures of future disposal transactions after adoption may be different than under current standards. |
Relationship with DuPont and Re
Relationship with DuPont and Related Entities | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Relationship with DuPont and Related Entities | Note 4. Relationship with DuPont and Related Entities Prior to the spin-off, Chemours was managed and operated in the normal course of business with other affiliates of DuPont. Accordingly, certain shared costs were allocated to Chemours and reflected as expenses in the stand-alone Consolidated Financial Statements. Management of DuPont and Chemours considered the allocation methodologies used to be reasonable and appropriate reflections of the historical DuPont expenses attributable to Chemours for purposes of the stand-alone financial statements. The expenses reflected in the Consolidated Financial Statements may not be indicative of expenses that will be incurred by Chemours in the future. Subsequent to July 1, 2015, DuPont was no longer a related party of Chemours. Chemours’ ongoing relationship with DuPont is governed by a separation agreement and other agreements with DuPont related to the spin-off, including an employee matters agreement, a tax matters agreement, a transition services agreement and an intellectual property cross-license agreement. These agreements provided for the allocation of various assets, liabilities, rights and obligations, and include arrangements for transition services to be provided by DuPont to Chemours. (a) Related Party Sales Prior to the spin-off, including certain periods covered by the Consolidated Financial Statements, Chemours sold finished goods to DuPont and its non-Chemours businesses. Related party sales to DuPont include the following amounts: Year Ended December 31, Selling Segment 2015 2014 2013 Titanium Technologies $ 2 (1) $ — $ 6 Fluoroproducts 34 (1) 45 37 Chemical Solutions 21 (1) 65 78 Total $ 57 $ 110 $ 121 (1) Subsequent to the spin-off on July 1, 2015, transactions with DuPont businesses were not considered related party transactions. (b) Leveraged Services and Corporate Costs Prior to the spin-off on July 1, 2015, DuPont incurred significant corporate costs for services provided to Chemours as well as other DuPont businesses. These costs included expenses for information systems, accounting, other financial services such as treasury and audit, purchasing, human resources, legal, facilities, engineering, corporate research and development, corporate stewardship, marketing and business analysis support. A portion of these costs benefited multiple or all DuPont businesses, including Chemours, and were allocated to Chemours and its reportable segments using methods based on proportionate formulas involving total costs or other various allocation methods that management considered consistent and reasonable. Other Chemours corporate costs are not allocated to the reportable segments and are reported in Corporate and Other. The allocated leveraged functional service expenses and general corporate expenses included in the Consolidated Statements of Operations were $238 (through June 30, 2015), $492 and $519 for the years ended December 31, 2015, 2014 and 2013, respectively. Allocated leveraged functional service expenses and general corporate expenses were recorded in the Consolidated Statements of Operations within the following captions: Year Ended December 31, 2015 2014 2013 Selling, general and administrative expense $ 205 (1) $ 411 $ 436 Research and development expense 10 (1) 49 50 Cost of goods sold 23 (1) 32 33 Total $ 238 $ 492 $ 519 (1) Subsequent to the spin-off on July 1, 2015, transactions with DuPont businesses were not considered related party transactions. Accordingly, no costs were allocated after the July 1, 2015 spin-off date. (c) Cash Management and Financing For a portion of the periods presented, Chemours participated in DuPont’s centralized cash management and financing programs. Disbursements were made through centralized accounts payable systems which were operated by DuPont. Cash receipts were transferred to centralized accounts, also maintained by DuPont. As cash was disbursed and received by DuPont, it was accounted for by Chemours through DuPont Company Net Investment. The separation-related agreements set forth a process to true-up cash and working capital transferred to us from DuPont at separation. In January 2016, Chemours and DuPont entered into an agreement, contingent upon the credit agreement amendment (described in Note 18), which provided for the extinguishment of payment obligations of cash and working capital true-ups previously contemplated in the separation-relatedagreements. As a result, Chemours was not required to make any payments to DuPont, nor did DuPont make any payments to Chemours. In addition, the agreement set forth an advance payment of approximately $190, which was paid to Chemours in February 2016, for certain specified goods and services that Chemours expects to provide to DuPont over the next twelve to fifteen months under existing agreements with Chemours. (d) Tax Matters Agreement Chemours and DuPont entered into a tax matters agreement that governs the parties’ respective rights, responsibilities and obligations with respect to tax liabilities and benefits, tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings and other matters regarding taxes. In general, under the agreement, DuPont is responsible for any U.S. federal, state and local taxes (and any related interest, penalties or audit adjustments) reportable on a consolidated, combined or unitary return that includes DuPont or any of its subsidiaries and Chemours and/or any of its subsidiaries for any periods or portions thereof ending on or prior to the date of the separation and Chemours is responsible for any U.S. federal, state, local and foreign taxes (and any related interest, penalties or audit adjustments) that are imposed on Chemours and/or any of its subsidiaries for all tax periods, whether before or after the date of the distribution. |
Research and Development Expens
Research and Development Expense | 12 Months Ended |
Dec. 31, 2015 | |
Research and Development [Abstract] | |
Research and Development Expense | Note 5. Research and Development Expense Research and development expense directly incurred by Chemours was $87, $94 and $114 for the years ended December 31, 2015, 2014 and 2013, respectively. Research and development expense also includes $10, $49 and $50 for the years ended December 31, 2015, 2014 and 2013, respectively, which represents an assignment of costs associated primarily with DuPont’s Corporate Central Research and Development long-term research activities. This assignment was based on the cost of research projects for which Chemours was determined to be the sponsor or co-sponsor. All research services provided by DuPont’s Central Research and Development to Chemours were specifically requested by Chemours, covered by service-level agreements and billed based on usage. DuPont research and development services were no longer used after the separation on July 1, 2015. |
Employee Separation and Asset R
Employee Separation and Asset Related Charges, Net | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Employee Separation and Asset Related Charges, Net | Note 6. Employee Separation and Asset Related Charges, Net For the years ended December 31, 2015, 2014 and 2013, Chemours recorded charges for employee separation and asset related charges as follows: Year Ended December 31, 2015 2014 2013 Employee Separation Charges $ 137 $ 18 $ 2 Asset Related Charges–Restructuring 133 3 — Asset Related Charges–Impairment (1) 48 — — Decommissioning and other charges–Restructuring 15 — — Total $ 333 $ 21 $ 2 (1) See Note 12 for further information. Transformation Plan During the third quarter of 2015, Chemours announced a plan to transform the Company by reducing structural costs, growing market positions, optimizing its portfolio, refocusing investments, and enhancing its organization (the “Transformation Plan”). Through a combination of higher free cash flow from operations, lower capital spending, and potential proceeds from asset sales, the Company anticipates reducing its leverage ratio (net debt to Adjusted EBITDA (see Note 23 for definition)). Key actions initiated under the Transformation Plan since the separation included Titanium Technologies plant and production line closures, Fluoroproduct line closures, Reactive Metals Solutions (RMS) plant closure and other cost reduction initiatives including global workforce reduction. Titanium Technologies Plant Closures: 2 2 As a result, the Company recorded charges of approximately $140, which consisted of employee separation costs of $11, property, plant and equipment and other asset impairment charges of $115, and decommission costs and other charges of $14. The Company also expects to incur additional charges of approximately $50 for decommissioning, dismantling and removal costs through early 2017, which will be expensed as incurred. Fluoroproducts Restructuring: RMS Closure: Global Restructuring Programs In November 2015, Chemours announced an additional global workforce reduction of approximately 430 positions. This action is part of ongoing efforts to streamline and simplify the structure of the organization worldwide and to reduce costs. As a result of these actions, the Company recorded approximately $48 of employee separation costs during the fourth quarter of 2015. The headcount reduction is expected to be completed in 2016 and related payments are expected to be substantially complete in 2017. In June 2015, in light of continued weakness in the global titanium dioxide market cycle and continued foreign currency impacts due to the strengthening of the U.S. dollar, Chemours implemented a restructuring plan to reduce and simplify its cost structure. This plan resulted in a global workforce reduction of more than 430 positions. As a result, we recorded a pre-tax charge of $64 for employee separation costs in the year ended December 31, 2015. The actions associated with this charge and all related payments are expected to be substantially complete by the end of 2016. In 2014, Chemours implemented a restructuring plan to increase productivity and recorded a pre-tax charge of $19 related to this initiative. The charge consisted of $16 related to employee separation costs and $3 for asset shut-down costs. The actions associated with this charge and all related payments are substantially complete as of December 31, 2015. The charges related to our programs and impairments impacted segment earnings for the years ended December 31, 2015 and 2014 as follows: Titanium Fluoroproducts Chemical Total Year ended December 31, 2015 Titanium Technologies plant closures $ 140 $ — $ — $ 140 Fluoroproducts restructuring and other asset impairment — 24 — 24 RMS plant closure — — 57 57 2015 Restructuring 33 54 25 112 (1) $ 173 $ 78 $ 82 $ 333 Year ended December 31, 2014 2014 Restructuring $ 3 $ 16 $ — $ 19 (1) Includes approximately $24 related to corporate overhead functions that was allocated to our segments. The following table shows the change in our significant liability account balances. Titanium Chemical 2015 2014 Total Balance as of December 31, 2013 $ — $ — $ — $ — $ — Charges to income for the year ended December 31, 2014 — — — 16 16 Charges to liability accounts: Payments — — — (2 ) (2 ) Net currency translation adjustment — — — (2 ) (2 ) Balance as of December 31, 2014 — — — 12 12 Charges to income for the year ended December 31, 2015 11 12 112 — 135 Charges to liability accounts: Payments — — (39 ) (11 ) (50 ) Net currency translation adjustment (1) — — — — — Balance as of December 31, 2015 $ 11 $ 12 $ 73 $ 1 $ 97 (1) Net currency translation adjustment for the year ended December 31, 2015 was less than $1. |
Other Income, Net
Other Income, Net | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | Note 7. Other Income, Net Year Ended December 31, 2015 2014 2013 Leasing, contract services and miscellaneous income $ 25 $ 17 $ 24 Royalty income (1) 19 28 24 Gain on purchase of equity method investment — — 7 (Loss) gain on sale of assets and businesses (2) (9 ) 40 — Exchange gains (losses), net (3) 19 (66 ) (31 ) Total other income, net $ 54 $ 19 $ 24 (1) Royalty income is primarily for technology and trademark licensing. (2) In 2015, the Company sold its subsidiary in Sweden for proceeds of $4 that resulted in a loss on sale of $9 in the Fluoroproducts segment. In 2014, the gain of $40 includes gains on sales of businesses of $30 and $4 in the Fluoroproducts and Titanium Technologies segments, respectively. The remaining $6 related to gain on other sale of assets in the Fluoroproducts segment. (3) Chemours uses foreign currency forward contracts to offset its net exposure, by currency, related to its non-functional currency-denominated monetary assets and liabilities. See Note 20 for further information. The pre-tax exchange gains are recorded in other income, net and the related tax impact is recorded in provision for income taxes in the Consolidated Statements of Operations. The $19 net exchange gain for the year ended December 31, 2015 includes a gain on derivatives of $42, partially offset by a $23 pre-tax exchange loss on non-functional monetary assets and liabilities as a result of the strengthening of the U.S. dollar against the Mexican peso, euro, Thai baht, Chinese yuan and other currencies. Exchange losses in 2014 and 2013, respectively, were primarily driven by the strengthening of the U.S. dollar versus the Swiss franc and the euro in 2014, and a strengthening of the U.S. dollar versus the Venezuelan bolivar and the Brazilian real in 2013. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8. Income Taxes Year Ended December 31, 2015 2014 2013 Current tax expense: U.S. federal $ 37 (1) $ 85 $ 67 U.S. state and local 1 (1) 13 11 International 62 73 88 Total current tax expense 100 171 166 Deferred tax (benefit) expense: U.S. federal (187 ) (20 ) (4 ) U.S. state and local (14 ) (3 ) (2 ) International 3 1 (8 ) Total deferred tax benefit (198 ) (22 ) (14 ) Total (benefit from) provision for income taxes $ (98 ) $ 149 $ 152 (1) Recorded pursuant to the tax matters agreement. The significant components of deferred tax assets and liabilities are as follows: December 31, December 31, Deferred tax assets – noncurrent: Other assets and other accrued liabilities $ 257 $ 188 Tax loss carryforwards 124 36 Total deferred tax assets – noncurrent 381 224 Valuation allowance — (36 ) Total deferred tax assets, net 381 188 Deferred tax liabilities – noncurrent: Goodwill and other intangibles — (2 ) Accrued expenses and other liabilities (7 ) (34 ) Property, plant and equipment (530 ) (533 ) Inventories and other assets (31 ) (33 ) Total deferred tax liabilities – noncurrent (568 ) (602 ) Net deferred tax liability $ (187 ) $ (414 ) An analysis of the Company’s effective tax rate is as follows: Year Ended December 31, 2015 2014 2013 Statutory U.S. federal income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 5.1 % 1.0 % 1.0 % Benefit from (lower effective tax rate) on international operations – net 12.0 % (9.6 )% (10.2 )% Valuation allowance — % 2.0 % 1.2 % Exchange (gains) losses 0.5 % 2.7 % 2.3 % Depletion 3.4 % (3.9 )% (4.1 )% Goodwill (3.2 )% — % — % Section 199 deduction — % (0.7 )% (0.8 )% Other, net (0.5 )% 0.6 % 2.0 % Total effective tax rate 52.3 % 27.1 % 26.4 % (Loss) income before income taxes for U.S. and international operations was: Year Ended December 31, (Dollars in millions) 2015 2014 2013 U.S. (including exports) $ (492 ) $ 244 $ 224 International 304 306 352 Total pre-tax (loss) income $ (188 ) $ 550 $ 576 Chemours recorded a tax benefit of $98 for the year ended December 31, 2015 and provisions of $149 and $152 for the years ended December 31, 2014 and 2013, respectively. The $247 decrease in the tax provision was primarily due to tax benefits recognized from the restructuring and asset impairment charges in the United States recorded in the second half of 2015, partially offset by earnings in foreign jurisdictions. The decrease in state income tax provision and the corresponding increase in the state effective tax rate, net of federal benefit, for the year ended December 31, 2015 as compared to 2014 and 2013 is due to the tax benefit recognized from the restructuring and asset impairment charges in the United States. The tax benefit from international operations is primarily driven by Chemours’ overall geographic mix of earnings. The Company did not have valuation allowance as of December 31, 2015 as compared to 2014 and 2013, as the valuation allowance relates to pre-spin assets that are the responsibilities of DuPont pursuant to the tax matters agreement. Exchange (gains) losses principally reflect the impact of non-taxable gains and losses resulting from remeasurement of foreign currency-denominated monetary assets and liabilities. Depletion represents the tax benefit from the percentage depletion deductions taken pursuant to Section 613 of the Code. Goodwill represents the tax effect of the goodwill reallocation based on Chemours’ new business reporting units and impairment charges, as described in Note 13. In addition, Chemours is entitled to a domestic manufacturing deduction relating to income from certain qualifying domestic production activities pursuant to Section 199 of the Code in tax years 2014 and 2013, as well as a one-time tax benefit recognized in 2014 relating to a tax accounting method change. Consistent with the discussion in Note 2, the pre-spin effective tax rate stated herein may not be indicative of the future effective tax rate of Chemours as a result of the separation from DuPont. Under the tax laws of various jurisdictions in which the Company operates, deductions or credits that cannot be fully utilized for tax purposes during the current year may be carried forward or back, subject to statutory limitations, to reduce taxable income or taxes payable in the future or prior years. At December 31, 2015, the tax effect of such carryforwards is $124. Of this amount, $25 expires in 2026, $90 expires in 2036, and $9 expires from 2021 to 2036, the majority of which expires in 2036. Based on analysis of the cumulative earnings from the prior three years, the Company determined it is more likely than not that these assets will be fully utilized. At December 31, 2015, in connection with the spin-off, the Company deemed approximately $1.5 billion of unremitted earnings of subsidiaries outside the U.S. as indefinitely reinvested. No deferred tax liability has been recognized with regard to the remittance of such earnings. It is not practical to estimate the income tax liability that might be incurred if such earnings were remitted to the U.S. Each year, Chemours and/or its subsidiaries, files income tax returns in the U.S. federal jurisdiction and various states and non-U.S. jurisdictions. These tax returns are subject to examination and possible challenge by the taxing authorities. Positions challenged by the taxing authorities may be settled or appealed by Chemours and/or DuPont in accordance with the tax matters agreement. As a result, income tax uncertainties are recognized in Chemours’ Consolidated Financial Statements in accordance with accounting for income taxes, when applicable. It is reasonably possible that changes to Chemours’ global unrecognized tax benefits could be significant; however, due to the uncertainty regarding the timing of completion of audits and possible outcomes, a current estimate of the range of such changes that may occur within the next twelve months cannot be made. As previously discussed in Note 3, prior to our spin-off, Chemours was included in DuPont’s consolidated income tax returns, and Chemours’ income taxes for those periods are computed and reported herein under the “separate return method.” Use of the separate return method may result in differences when the sum of the amounts allocated to stand-alone tax provisions are compared with amounts presented in Consolidated Financial Statements. In that event, the related deferred tax assets and liabilities could be significantly different from those presented herein for these periods. Certain tax attributes, e.g., net operating loss carryforwards, which were actually reflected in DuPont’s consolidated financial statements may or may not exist at the stand-alone Chemours level. Chemours’ Consolidated Financial Statements do not reflect any amounts due to DuPont for income tax-related matters prior to the separation as it is assumed that all such amounts due to DuPont were settled on December 31 of each year. The following table shows the change in our unrecognized tax benefit. Year Ended December 31, 2015 2014 2013 Total unrecognized tax benefits as of January 1 $ 39 $ 26 $ 24 Gross amounts of decreases in unrecognized tax benefits as a result of adjustments to tax provisions taken during the prior period — (1 ) (1 ) Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken during the current period — 15 5 Reduction to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations (32 ) (1) (1 ) (2 ) Total unrecognized tax benefits as of December 31 $ 7 $ 39 $ 26 Total unrecognized tax benefits, if recognized, that would impact the effective tax rate $ — $ 39 $ 26 Total amount of interest and penalties recognized in the Consolidated Statements of Operations 1 (1) 2 2 Total amount of interest and penalties recognized in the Consolidated Balance Sheets — 8 6 (1) Recorded pursuant to the tax matters agreement. The following is a rollforward of the deferred tax asset valuation allowance for the years ended December 31, 2015, 2014 and 2013. Year Ended December 31, 2015 2014 2013 Balance at beginning of period $ 36 $ 26 $ 19 Net charges to income tax expense — 10 7 Release of valuation allowance (1) (36 ) — — Balance at end of period $ — $ 36 $ 26 (1) Release of valuation allowance during 2015 was primarily related to the tax attributes retained by DuPont pursuant to the tax matters agreement. |
Earnings Per Share of Common St
Earnings Per Share of Common Stock | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share of Common Stock | Note 9. Earnings Per Share of Common Stock The table below shows a reconciliation of the numerator and denominator for basic and diluted earnings per share calculations for the periods indicated. Year Ended December 31, 2015 2014 2013 Numerator: Net (loss) income attributable to Chemours $ (90 ) $ 400 $ 423 Denominator: Weighted-average number of common shares outstanding–Basic 180,993,623 180,966,833 (1) 180,966,833 (1) Dilutive effect of the Company’s employee compensation plans (2) — — — Weighted average number of common shares outstanding–Diluted (2) 180,993,623 180,966,833 180,966,833 (1) For 2013 and 2014, pro forma earnings per share (EPS) was calculated based on 180,966,833 shares of Chemours common stock that were distributed to DuPont shareholders on July 1, 2015. (2) Diluted (loss) earnings per share is calculated using net (loss) income available to common shareholders divided by diluted weighted-average shares of common shares outstanding during each period, which includes unvested restricted shares. Diluted earnings per share considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an antidilutive effect. Chemours had no equity awards outstanding prior to the spin-off. The following average number of stock options were antidilutive and, therefore, were not included in the diluted earnings per share calculation: Year Ended December 31, 2015 2014 2013 Average number of stock options 8,358,894 — — |
Accounts and Notes Receivable -
Accounts and Notes Receivable - Trade, Net | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Accounts and Notes Receivable - Trade, Net | Note 10. Accounts and Notes Receivable—Trade, Net December 31, December 31, Accounts receivable–trade, net (1) $ 757 $ 746 VAT, GST and other taxes (2) 68 62 Leases receivable–current 13 12 Other receivables (3) 21 26 Total $ 859 $ 846 (1) Accounts receivable–trade is net of allowances of $4 and $4 as of December 31, 2015 and 2014, respectively. Allowances are equal to the estimated uncollectible amounts. (2) Value Added Tax (VAT) and Goods and Services Tax (GST). (3) Other receivables consist of notes receivable, advances and other deposits. Accounts and notes receivable are carried at amounts that approximate fair value. Bad debt expense was less than $1 for the year ended December 31, 2015, and $1 and $2 for the years ended December 31, 2014 and 2013, respectively. Direct Financing Leases At two of its facilities in the United States (Borderland and Morses Mill), Chemours has constructed fixed assets on land that it leases from third parties. Management has analyzed these arrangements and determined these assets represent a direct financing lease, whereby Chemours is the lessor of this equipment. Chemours has recorded leases receivable of $138 and $149 at December 31, 2015 and 2014, respectively, which represent the balance of the minimum future lease payments receivable. The current portion of leases receivable is included in accounts and notes receivable–trade, net, as shown above. The long-term portion of leases receivable is included in other assets, as shown in Note 14. Management has evaluated the realizable value of these leased assets and determined no impairment existed at December 31, 2015 or December 31, 2014. There is no estimated future residual value of these leased assets. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory, Net [Abstract] | |
Inventories | Note 11. Inventories December 31, December 31, Finished products $ 613 $ 611 Semi-finished products 172 173 Raw materials, stores and supplies 433 521 Subtotal 1,218 1,305 Adjustment of inventories to LIFO basis (246 ) (253 ) Total $ 972 $ 1,052 Inventory values, before LIFO adjustment, are generally determined by the average cost method, which approximates current cost. Inventories are valued using the LIFO method at substantially all of the U.S. locations, which comprised $744 and $684 or 61% and 52% of inventories before the LIFO adjustments at December 31, 2015 and December 31, 2014, respectively. The remainder of inventory held in international locations and certain U.S. locations is valued using the average cost method. |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 12. Property, Plant and Equipment Chemours’ property, plant and equipment consisted of: December 31, December 31, Equipment $ 7,327 $ 7,500 Buildings 737 778 Construction in progress 804 852 Land 111 116 Mineral rights 36 36 Total 9,015 9,282 Accumulated depreciation (5,838 ) (5,974 ) Net property, plant and equipment $ 3,177 $ 3,308 Depreciation expense amounted to $264, $254 and $255 for the years ended December 31, 2015, 2014 and 2013, respectively. Property, plant and equipment includes gross assets under capital leases of $7 and $6 at December 31, 2015 and 2014, respectively. Interest expense capitalized as part of property, plant and equipment was $21 for the year ended December 31, 2015. Chemours did not incur interest in the years ended December 31, 2014 or 2013. During the third quarter of 2015, in connection with the strategic evaluation of the Chemical Solutions portfolio, excluding cyanides, the Company determined that the carrying value of the RMS manufacturing facility of the Chemical Solutions segment may not be recoverable given the strategic decision to discontinue investment in the business. An impairment evaluation was performed which indicated that the carrying amount of this asset group in the United States was not recoverable when compared to the expected undiscounted cash flows. Based on management’s assessment of the fair value of the asset group, the Company determined that the carrying value of that asset group exceeded the fair value and as a result, a $45 pre-tax impairment charge was recorded in the Chemical Solutions segment. The fair value of the asset group was determined using an income approach based on the present value of the estimated future cash flows. The key assumptions used included growth rates and cash flow projections, discount rate, tax rate and an estimated terminal value. The amount was recorded in employee separation and asset related charges, net in the Consolidated Statements of Operations. Refer to Note 6 for additional information. Asset Held for Sale In November 2015, the Company signed a definitive agreement to sell its aniline facility in Beaumont, Texas to The Dow Chemical Company (Dow) for approximately $140 in cash, subject to customary approvals and closing conditions. The transaction closed on March 1, 2016 and the Company expects to record a gain in the Chemical Solutions segment in the quarter ending March 31, 2016. As of December 31, 2015, the asset disposal group of approximately $46 was classified as held-for-sale within the caption prepaid expenses and other in the Consolidated Balance Sheets. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | Note 13. Goodwill and Other Intangible Assets, Net Goodwill: Titanium Fluoroproducts Chemical Total Balance as of December 31, 2013 $ 13 $ 85 $ 100 $ 198 Impairment charge — — — — Other adjustments — — — — Balance as of December 31, 2014 13 85 100 198 Impairment charge — — (25 ) (25 ) Other adjustments — — (7 ) (7 ) Balance as of December 31, 2015 $ 13 $ 85 $ 68 $ 166 Accumulated impairment losses as of December 31, 2015, 2014 and 2013 included in goodwill are $25, $0, and $0, respectively. The Company has three segments: Titanium Technologies, Fluoroproducts and Chemical Solutions (see further discussion of reportable segments in Note 23). The Company defines its reporting units as its operating segments for Titanium Technologies; however, the Fluoroproducts and Chemical Solutions segments represent three and seven reporting units, respectively. In the third quarter of 2015, in connection with the strategic evaluation of the Chemical Solutions portfolio, the Company realigned the reporting structure of the portfolio, specifically the level at which segment management regularly reviews operating results. The Company now identifies seven reporting units for purposes of goodwill allocation and impairment assessment. These seven reporting units are Aniline, Clean & Disinfect, Cyanides, Methylamines, Reactive Metal Solutions, Sulfur, and Vazo. Chemical Solutions remains a single operating segment. In addition, in connection with the spin-off on July 1, 2015, the Fluoroproducts segment changed its organizational structure, which changed its reporting units from Fluorochemicals and Fluoropolymers to Fluorochemicals, Industrial Resins and Diversified Technologies. In connection with the goodwill allocation to the new reporting units in Fluoroproducts and Chemical Solutions segments during the third quarter of 2015, we evaluated the reporting units for impairment and determined that the estimated fair values of those reporting units, except for the Sulfur reporting unit, were substantially in excess of the carrying value, indicating that goodwill was not impaired. We performed the second step of the impairment test for Sulfur and determined that the implied fair value of goodwill was lower than its carrying value, resulting in a full impairment of the Sulfur reporting unit’s goodwill. As a result, Chemours recorded a $25 million pre-tax impairment charge for goodwill during the year ended December 31, 2015 in the Chemicals Solutions reportable segment. The Company also performed its annual impairment tests for Titanium Technologies and Fluorochemicals goodwill and determined that no goodwill impairment existed as of December 31, 2015, and the fair value of each reporting unit substantially exceeded its carrying value. Chemours estimates the fair value of its reporting units using the income approach based on the present value of estimated future cash flows, discounted at a risk-adjusted market rate, including a growth rate to calculate the terminal value. The Company’s forecasted future cash flows, which incorporate anticipated future revenue growth and related expenses to support the growth, were used to calculate fair value. The factors considered in determining the cash flows include: 1) macroeconomic conditions; 2) industry and market considerations; 3) costs of raw materials, labor or other costs having a negative effect on earnings and cash flows; 4) overall financial performance; and 5) other relevant entity-specific events. The discount rate used represents the weighted average cost of capital for the reporting units considering the risks and uncertainty inherent in the cash flows of the reporting units and in the internally developed forecasts. The implied fair value of the goodwill in step two was determined by allocating the fair value of the reporting units to all of the assets and liabilities as if the reporting units had been acquired in a business combination and its fair value was the purchase price paid to be acquired. The use of these unobservable inputs resulted in the fair value estimate being classified as a Level 3 asset measured at fair value on a nonrecurring basis subsequent to its original recognition. The determination of whether or not goodwill is impaired involves a significant level of judgment in the assumptions underlying the approaches used to determine the estimated fair value of our reporting units. Chemours believes that assumptions and rates used in the impairment assessment are reasonable. However, these assumptions are judgmental and variations in any assumptions could result in materially different calculations of fair value. The Company will continue to evaluate goodwill on an annual basis as of October 1, and whenever events or changes in circumstances, such as significant adverse changes in operating results, market conditions or changes in management’s business strategy, indicate that there may be a probable indicator of impairment. It is possible that the assumptions used by management related to the evaluation may change or that actual results may vary significantly from management’s estimates. Other Intangible Assets, Net: December 31, 2015 December 31, 2014 Gross Accumulated Net Gross Accumulated Net Customer lists $ 13 $ (10 ) $ 3 $ 13 $ (10 ) $ 3 Patents 19 (17 ) 2 19 (15 ) 4 Purchased trademarks 5 (2 ) 3 5 (1 ) 4 Purchased and licensed technology 8 (6 ) 2 5 (5 ) — Total $ 45 $ (35 ) $ 10 $ 42 $ (31 ) $ 11 The aggregate pre-tax amortization expense for definite-lived intangible assets was $3, $3 and $6 for the years ended December 31, 2015, 2014 and 2013, respectively. The estimated aggregate pretax amortization expense for 2016, 2017, 2018, 2019 and 2020 is $3, $2, $1, $1 and $1, respectively. Definite-lived intangible assets are amortized over their estimated useful lives, generally for periods ranging from 5 to 20 years. The reasonableness of the useful lives of these assets is continually evaluated. There are no indefinite-lived intangible assets. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Note 14. Other Assets December 31, December 31, Leases receivable–non-current (1) $ 125 $ 137 Capitalized repair and maintenance costs 149 185 Pension assets (2) 138 — Advances and deposits 11 17 Deferred income taxes 47 10 Miscellaneous (3) 38 28 Total $ 508 $ 377 (1) Leases receivable includes direct financing leases of property at two locations. See Note 10 for further information. (2) Pension assets represent pension plans commencing in 2015. See Note 21 for further information. (3) Miscellaneous includes prepaid expenses for royalty fees, vendor supply agreements and taxes other than income taxes, deferred financing fees related to the Revolving Credit Facility of $19 at December 31, 2015, as well as capitalized expenses for the preparation of future landfill cells at Titanium Technologies’ New Johnsonville plant site. |
Accounts Payable
Accounts Payable | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accounts Payable | Note 15. Accounts Payable December 31, December 31, Trade payables $ 945 $ 1,004 VAT and other payables 28 42 Total $ 973 $ 1,046 |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | Note 16. Other Accrued Liabilities December 31, December 31, Compensation and other employee-related costs $ 109 $ 109 Employee separation costs (1) 76 12 Accrued litigation (2) 11 7 Environmental remediation (2) 68 69 Income taxes 32 — Customer rebates 53 59 Deferred revenue 20 28 Accrued interest 21 — Miscellaneous (3) 64 68 Total $ 454 $ 352 (1) See Note 6 for further information. (2) See Note 19 for further discussion of environmental remediation and accrued litigation. (3) Miscellaneous primarily includes accrued utility expenses, property taxes, an accrued indemnification liability and other miscellaneous expenses. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Note 17. Other Liabilities December 31, December 31, Environmental remediation (1) $ 223 $ 226 Employee-related costs (2) 108 32 Employee separation costs (3) 23 — Accrued litigation (1) 58 52 Asset retirement obligations (1) 41 43 Deferred revenue 11 13 Miscellaneous (4) 89 98 Total $ 553 $ 464 (1) See Note 19 for further details on environmental remediation, asset retirement obligations and accrued litigation. (2) See Note 21 for further details on long-term employee benefits. (3) See Note 6 for further information. (4) Miscellaneous primarily includes an accrued indemnification liability. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Note 18. Debt In conjunction with Chemours’ separation from DuPont, Chemours entered into approximately $3,995 of financing transactions on May 12, 2015. Long-term debt, net of an unamortized discount on the Term Loan Facility of $7, was comprised of the following at December 31, 2015: December 31, Long-term debt: Senior secured term loan, net of issue discount $ 1,493 Senior unsecured notes: 6.625%, due May 2023 1,350 7.00%, due May 2025 750 6.125%, due May 2023 (€360) 395 Other 26 Total 4,014 Less: Unamortized debt issuance costs 60 Less: Short-term borrowings and current maturities 39 Total long-term debt $ 3,915 Senior Secured Credit Facilities On May 12, 2015, Chemours entered into a credit agreement that provides for a seven-year senior secured term loan (the Term Loan Facility) in a principal amount of $1,500 repayable in equal quarterly installments at a rate of 1% of the original principal amount per year, with the balance payable on the final maturity date. The Term Loan Facility was issued with a $7 original issue discount and bears variable interest rate subject to a floor of 3.75%. The proceeds from the Term Loan Facility were used to fund a portion of the distribution to DuPont, along with related fees and expenses. The credit agreement also provided for a five-year senior secured revolving credit facility (the Revolving Credit Facility), which has been reduced to $750 as part of the amendment completed on February 19, 2016. The proceeds of any loans made under the Revolving Credit Facility can be used for capital expenditures, acquisitions, working capital needs and other general corporate purposes. We had no borrowings outstanding under our Revolving Credit Facility at December 31, 2015, and we had $129 in letters of credit issued and outstanding under this facility. The Revolving Credit Facility bears variable interest of a range based on our total net leverage ratio between (a) 0.50% and 1.25% for base rate loans and (b) 1.50% and 2.25% for LIBOR loans. The applicable margin was 1.25% for base rate loans and 2.25% for LIBOR loans as of December 31, 2015. In addition, we are required to pay a commitment fee on the average daily unused amount of the Revolving Credit Facility at a rate based on our total net leverage ratio, between 0.20% and 0.35%. Commitment fees are currently assessed at a rate of 0.35%. During the third quarter of 2015, Chemours and its Revolving Credit Facility lenders entered into an amendment to the Revolving Credit Facility that strengthened Chemours’ financial position by providing enhanced liquidity to implement the Transformation Plan. The amendment modified the consolidated EBITDA definition in the covenant calculation to include pro forma benefits of announced cost reduction initiatives. During the first quarter of 2016, Chemours and its Revolving Credit Facility lenders entered into a second amendment to the Revolving Credit Facility that (a) replaced the total net leverage ratio financial covenant with senior secured net leverage ratio; (b) reduced the minimum required levels of interest expense coverage ratio covenant; (c) increased the limits and extended the time horizon for inclusion of pro forma benefits of announced cost reduction initiatives into Consolidated EBITDA definition for the purposes of calculating financial maintenance covenants; and (d) reduced the revolver availability from $1,000 to $750. These changes provide further flexibility to Chemours to sustain the prolonged downturn in the business and enhance its liquidity to implement the Transformation Plan. The credit agreement contains financial covenants which, solely with respect to the Revolving Credit Facility as amended, require Chemours not to exceed a maximum senior secured net leverage ratio of 3.50 to 1.00 and to maintain a minimum interest coverage ratio of 1.75 to 1.00 until December 31, 2016. In addition, the credit agreement contains customary affirmative and negative covenants that, among other things, limit or restrict Chemours and its subsidiaries’ ability, subject to certain exceptions, to incur liens, merge, consolidate or sell, transfer or lease assets, make investments, pay dividends, transact with subsidiaries and incur indebtedness. The credit agreement also contains customary representations and warranties and events of default. Chemours was in compliance with its debt covenants as of December 31, 2015. Chemours’ obligations under the senior secured credit facilities are guaranteed on a senior secured basis by all of its material domestic subsidiaries, subject to certain agreed upon exceptions. The obligations under the senior secured credit facilities are also, subject to certain agreed upon exceptions, secured by a first priority lien on substantially all of Chemours and its material wholly-owned domestic subsidiaries’ assets, including 100% of the stock of domestic subsidiaries and 65% of the stock of certain foreign subsidiaries. Senior Unsecured Notes On May 12, 2015, Chemours issued senior unsecured notes (the Notes) with an aggregate principal of approximately $2,503 in a private placement subject to a registration rights arrangement. All of the notes, including the 2023 notes with an aggregate principal amount of $1,350, the 2025 notes with an aggregate principal amount of $750 and the 2023 Euro notes with an aggregate principal amount of €360 (or $395 as of December 31, 2015), require payment of principal at maturity and interest semi-annually in cash in arrears on May 15 and November 15 of each year. The proceeds from the Notes were used to fund the cash and in-kind distributions to DuPont and to pay related fees and expenses. The in-kind distribution to DuPont of $507 aggregate principal amount of Chemours 2025 Notes were exchanged by DuPont with third parties for certain DuPont notes. Chemours is required to register the Notes with the Securities and Exchange Commission within 465 days after the original issue date. If Chemours fails to do so, it would be required to pay additional interest at a rate of 0.25% for the first 90 days following a registration default and additional 0.25% per annum with respect to each subsequent 90-day period, up to a maximum rate of 0.50%, until the registration requirements are met. Application is also expected to be made to the Irish Stock Exchange for the approval of listing particulars in relation to the Euro notes prior to the first anniversary of the issue date of the Euro notes. Each series of Notes is or will be fully and unconditionally guaranteed, jointly and severally, by Chemours’ existing and future domestic subsidiaries that guarantee (the Guarantors) the Senior Secured Credit Facilities or that guarantee other indebtedness of Chemours or any guarantor in an aggregate principal amount in excess of $75 million (the Guarantees). The Notes are unsecured and unsubordinated obligations of Chemours. The Guarantees are unsecured and unsubordinated obligations of the Guarantors. The Notes rank equally in right of payment to all of Chemours’ existing and future unsecured unsubordinated debt and senior in right of payment to all of Chemours’ existing and future debt that is by its terms expressly subordinated in right of payment to the Notes. The Notes are subordinated to indebtedness under the Senior Secured Credit Facilities as well as any future secured debt to the extent of the value of the assets securing such debt. Chemours’ is obligated to offer to purchase the Notes at a price of (a) 101% of their principal amount, together with accrued and unpaid interest, if any, to the date of purchase, upon the occurrence of certain change of control events and (b) 100% of their principal amount, together with accrued and unpaid interest, if any, to the date of purchase, with the proceeds from certain asset dispositions. These restrictions and prohibitions are subject to certain qualifications and exceptions set forth in the Indenture, including without limitation, reinvestment rights with respect to the proceeds of asset dispositions. Chemours is permitted to redeem some or all of the 2023 Notes and Euro Notes by paying a “make-whole” premium prior to May 15, 2018. Chemours also may redeem some or all of the 2023 Notes and Euro Notes on or after May 15, 2018 and thereafter at specified redemption prices. Chemours also may redeem some or all of the 2025 Notes on or after May 15, 2020 at specified redemption prices. Maturities There are no debt maturities in each of the next seven years, except, in accordance with the credit agreement, Chemours has required quarterly principal payments related to the Term Loan Facility equivalent to 1.00% per annum beginning September 2015 through March 2022, with the balance due at maturity. Term Loan principal maturities over the next five years are $15 in each year from 2016 to 2020. Debt maturities related to the Term Loan Facility and the Notes in 2021 and beyond will be $3,913. Debt Fair Value The fair values of the Term Loan Facility, the 2023 notes, the 2025 notes and the 2023 Euro notes at December 31, 2015 were approximately $1,348, $946, $513 and $277, respectively. The estimated fair values of the Term Loan Facility and the Notes are based on quotes received from third party brokers, and are classified as Level 2 in the fair value hierarchy. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Note 19. Commitments and Contingent Liabilities (a) Guarantees Obligations for Equity Affiliates and Others Chemours has directly guaranteed various obligations of customers, suppliers and other third parties. At December 31, 2015 and December 31, 2014, Chemours had directly guaranteed $8 and $41 of such obligations, respectively. These represent the maximum potential amount of future (undiscounted) payments that Chemours could be required to make under the guarantees in the event of default by the guaranteed parties. No amounts were accrued at December 31, 2015 and 2014. Chemours assesses the payment and performance risk by assigning default rates based on the duration of the guarantees. These default rates are assigned based on the external credit rating of the counterparty or through internal credit analysis and historical default history for counterparties that do not have published credit ratings. For counterparties without an external rating or available credit history, a cumulative average default rate is used. Operating Leases Chemours uses various leased facilities and equipment in its operations. The terms for these leased assets vary depending on the lease agreement. Future minimum lease payments (including residual value guarantee amounts) under non-cancelable operating leases are $84, $73, $62, $53 and $36 for the years ended December 31, 2016, 2017, 2018, 2019 and 2020, respectively, and $38 for the years thereafter. Net rental expense under operating leases was $83, $75 and $62 during the years ended December 31, 2015, 2014 and 2013, respectively. (b) Asset Retirement Obligations Chemours has recorded asset retirement obligations primarily associated with closure, reclamation and removal costs for mining operations related to the production of TiO 2 Year Ended December 31, 2015 2014 Beginning balance $ 43 $ 42 Accretion expense 1 2 Additional liabilities incurred — 1 Changes in estimated cash flows — — Settlements/payments (2 ) (2 ) Ending balance $ 42 $ 43 Current portion $ 1 $ — Non-current portion $ 41 $ 43 (c) Litigation In addition to the matters discussed below, Chemours, by virtue of its status as a subsidiary of DuPont prior to the Distribution, is subject to or required under the separation-related agreements executed prior to the Distribution to indemnify DuPont against various pending legal proceedings arising out of the normal course of the Chemours business including product liability, intellectual property, commercial, environmental and antitrust lawsuits. It is not possible to predict the outcome of these various proceedings. Except for the PFOA litigation for which a separate assessment is provided in this Note, while management believes it is reasonably possible that Chemours could incur losses in excess of the amounts accrued, if any, for the aforementioned proceedings, it does not believe any such loss would have a material impact on Chemours’ consolidated financial position, results of operations or liquidity. With respect to the litigation matters discussed below, management’s estimate of the probability of loss in excess of the amounts accrued, if any, is addressed individually for each matter. In the event that DuPont seeks indemnification for adverse trial rulings or outcomes for any such matter, these indemnification claims could materially adversely affect Chemours’ financial condition. Disputes between Chemours and DuPont may also arise with respect to indemnification matters, including disputes based on matters of law or contract interpretation. If and to the extent these disputes arise, they could materially adversely affect Chemours. Asbestos At December 31, 2015, there were approximately 2,212 lawsuits pending against DuPont alleging personal injury from exposure to asbestos. These cases are pending in state and federal court in numerous jurisdictions in the United States and are individually set for trial. Most of the actions were brought by contractors who worked at sites between 1950 and the 1990s. A small number of cases involve similar allegations by DuPont employees. A limited number of the cases were brought by household members of contractors or DuPont employees. Finally, certain lawsuits allege personal injury as a result of exposure to DuPont products. Chemours had an accrual of $42 and $38 related to this matter at December 31, 2015 and 2014, respectively. Additionally, Chemours had an accrual for $3 for asbestos cases outside the U.S. at December 31, 2015. Chemours reviews this estimate and related assumptions quarterly and annually updates the results of an approximate 20-year projection. Management believes that the likelihood is remote that Chemours would incur losses in excess of the amounts accrued in connection with this matter. Benzene In the separation, DuPont assigned its Benzene docket to Chemours. There are 29 pending cases against DuPont alleging benzene-related illnesses. These cases consist of premises matters involving contractors and deceased former employees who claim exposure to benzene while working at DuPont sites primarily in the 1960s through the 1980s, and product liability claims based on alleged exposure to benzene found in trace amounts in aromatic hydrocarbon solvents used to manufacture DuPont products, such as paints, thinners and reducers. A benzene case (Hood v. DuPont) was tried to a verdict in Texas state court on October 20, 2015. Plaintiffs alleged that Mr. Hood’s Acute Myelogenous Leukemia (AML) was the result of 24 years of occupational exposure to trace benzene found in DuPont automotive paint products and that DuPont negligently failed to warn him that its paints, reducers and thinners contained benzene that could cause cancer or leukemia. The jury found in the Plaintiffs favor awarding $6.9 in compensatory damages and $1.5 in punitive damages. Through DuPont, Chemours will appeal the verdict based upon substantial errors made at the trial court. Management believes that a loss is reasonably possible related to these matters; however, given the evaluation of each Benzene matter is highly fact driven and impacted by disease, exposure and other factors, a range of such losses cannot be reasonably estimated at this time. PFOA Prior to the fourth quarter of 2014, Chemours used PFOA (collectively, perfluorooctanoic acids and its salts, including the ammonium salt) as a processing aid to manufacture some fluoropolymer resins at various sites around the world including its Washington Works plant in West Virginia. Chemours had accruals of $20 and $14 related to the PFOA matters discussed below at December 31, 2015 and 2014, respectively. The accruals include charges related to DuPont’s obligations under agreements with the U.S. Environmental Protection Agency (EPA) and voluntary commitments to the New Jersey Department of Environmental Protection. These obligations and voluntary commitments include surveying, sampling and testing drinking water in and around certain company sites and offering treatment or an alternative supply of drinking water if tests indicate the presence of PFOA in drinking water at or greater than the national Provisional Health Advisory. Drinking Water Actions In August 2001, a class action, captioned Leach v. DuPont, was filed in West Virginia state court alleging that residents living near the Washington Works facility had suffered, or may suffer, deleterious health effects from exposure to PFOA in drinking water. DuPont and attorneys for the class reached a settlement in 2004 that binds about 80,000 residents. In 2005, DuPont paid the plaintiffs’ attorneys’ fees and expenses of $23 and made a payment of $70, which class counsel designated to fund a community health project. Chemours, through DuPont, funded a series of health studies which were completed in October 2012 by an independent science panel of experts (the C8 Science Panel). The studies were conducted in communities exposed to PFOA to evaluate available scientific evidence on whether any probable link exists, as defined in the settlement agreement, between exposure to PFOA and human disease. The C8 Science Panel found probable links, as defined in the settlement agreement, between exposure to PFOA and pregnancy-induced hypertension, including preeclampsia, kidney cancer, testicular cancer, thyroid disease, ulcerative colitis and diagnosed high cholesterol. In May 2013, a panel of three independent medical doctors released its initial recommendations for screening and diagnostic testing of eligible class members. In September 2014, the medical panel recommended follow-up screening and diagnostic testing three years after initial testing, based on individual results. The medical panel has not communicated its anticipated schedule for completion of its protocol. Through DuPont, Chemours is obligated to fund up to $235 for a medical monitoring program for eligible class members and, in addition, administrative cost associated with the program, including class counsel fees. In January 2012, Chemours, through DuPont, put $1 in an escrow account to fund medical monitoring as required by the settlement agreement. The court-appointed Director of Medical Monitoring has established the program to implement the medical panel’s recommendations and the registration process, as well as eligibility screening, is ongoing. Diagnostic screening and testing has begun and associated payments to service providers are being disbursed from the escrow account. As of December 31, 2015, less than $1 has been disbursed from the escrow account related to medical monitoring. In addition, under the settlement agreement, DuPont must continue to provide water treatment designed to reduce the level of PFOA in water to six area water districts, including the Little Hocking Water Association (LHWA) and private well users. Class members may pursue personal injury claims against DuPont only for those human diseases for which the C8 Science Panel determined a probable link exists. At December 31, 2015, there were approximately 3,500 lawsuits filed in various federal and state courts in Ohio and West Virginia. These lawsuits are consolidated in multi-district litigation in Ohio federal court (MDL). Based on the information currently available to the Company, the majority of the lawsuits allege personal injury claims associated with high cholesterol and thyroid disease from exposure to PFOA in drinking water. There are 37 lawsuits alleging wrongful death. In the third quarter of 2014, six plaintiffs from the MDL were selected for individual trial. The first case (Bartlett v. DuPont) was tried to a verdict on October 7, 2015. The Plaintiff alleged that PFOA in drinking water caused her kidney cancer with causes of action for negligence and negligent infliction of emotional distress. The jury found in favor of the Plaintiff awarding $1.1 in damages for negligence and $0.5 for emotional distress. The jury found that DuPont’s conduct did not warrant punitive damages. DuPont Management believes that rulings made before and during the trial resulted in several significant and meritorious grounds for appeal, and an appeal to the Sixth Circuit will be filed. The second case (Wolf v. DuPont) set for trial in March 2016, has been settled for an amount well below the incremental cost of preparing for trial. There are three more trials scheduled in 2016, with the next trial starting in May 2016. In January 2016, the court announced that starting in April 2017, 40 individual plaintiff trials will be scheduled per year. This multi-year plan pertains only to the cases claiming cancer, which represents approximately 7% of the total number of cases in the MDL. The remaining cases, comprising approximately 93% of the docket, will remain inactive. Chemours, through DuPont, denies the allegations in these lawsuits and is defending itself vigorously. Except for the Wolf v. DuPont case, no claims have been settled or resolved during the periods presented. Additional Actions In addition to general claims of PFOA contamination of drinking water, LHWA brought an action claiming “imminent and substantial endangerment to health and or the environment” under the Resource Conservation and Recovery Act (RCRA). The parties reached a confidential settlement in late November 2015. Final papers were completed in February 2016. PFOA Summary While it is probable that the Company will incur costs related to the medical monitoring program discussed above, such costs cannot be reasonably estimated due to uncertainties surrounding the level of participation by eligible class members and the scope of testing. Chemours believes that it is reasonably possible that it could incur losses related to the MDL in Ohio federal court discussed above but such losses cannot be estimated at this time due to the uniqueness of the individual MDL plaintiff’s claims and Chemours’ defenses to those claims, both as to potential liability and damages on an individual claim basis, and numerous unsettled legal issues, among other factors. The trials and appeals of these matters will occur over the course of many years. Significant unfavorable outcomes in a number of cases in the MDL could have a material adverse effect on Chemours’ consolidated financial position, results of operations or liquidity. (d) Environmental Chemours, by virtue of its status as a subsidiary of DuPont prior to the Distribution, is subject to contingencies pursuant to environmental laws and regulations that in the future may require further action to correct the effects on the environment of prior disposal practices or releases of chemical substances by Chemours or other parties. Chemours accrues for environmental remediation activities consistent with the policy set forth in Note 3. Much of this liability results from the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, often referred to as Superfund), RCRA and similar state and global laws. These laws require Chemours to undertake certain investigative, remediation and restoration activities at sites where Chemours conducts or once conducted operations or at sites where Chemours-generated waste was disposed. The accrual also includes estimated costs related to a number of sites identified for which it is probable that environmental remediation will be required, but which are not currently the subject of enforcement activities. Remediation activities vary substantially in duration and cost from site to site. These activities, and their associated costs, depend on the mix of unique site characteristics, evolving remediation technologies, diverse regulatory agencies and enforcement policies, as well as the presence or absence of other potentially responsible parties. At December 31, 2015, the Consolidated Balance Sheets included a liability of $290, relating to these matters which, in management’s opinion, is appropriate based on existing facts and circumstances. The average time frame, over which the accrued or presently unrecognized amounts may be paid, based on past history, is estimated to be 15 to 20 years. Therefore, considerable uncertainty exists with respect to environmental remediation costs and, under adverse changes in circumstances, the potential liability may range up to approximately $611 above the amount accrued at December 31, 2015. Except for Pompton Lakes, which is discussed further below, based on existing facts and circumstances, management does not believe that any loss, in excess of amounts accrued, related to remediation activities at any individual site will have a material impact on the financial position, liquidity or results of operations of Chemours. Pompton Lakes The environmental remediation accrual at December 31, 2015 includes $87 related to activities at Chemours’ site in Pompton Lakes, New Jersey. Management believes that it is reasonably possible that potential liability for remediation activities at this site could range up to $119 including previously accrued amounts. This could have a material impact on the liquidity of Chemours in the period recognized. During the twentieth century, blasting caps, fuses and related materials were manufactured at Pompton Lakes. Operating activities at the site were ceased in the mid-1990s. Primary contaminants in the soil and sediments are lead and mercury. Ground water contaminants include volatile organic compounds. Under the authority of the EPA and the New Jersey Department of Environmental Protection, remedial actions at the site are focused on investigating and cleaning up the area. Ground water monitoring at the site is ongoing and Chemours has installed and continues to install vapor mitigation systems at residences within the ground water plume. In addition, Chemours is further assessing ground water conditions. In June 2015, the EPA issued a modification to the site’s RCRA permit that requires Chemours to dredge mercury contamination from a 36 acre area of the lake and remove sediment from two other areas of the lake near the shoreline. Chemours expects to spend about $50 over the next two to three years in connection with remediation activities commencing in mid-2016 at Pompton Lakes, including activities related to the EPA’s proposed plan. These amounts are included in the remediation accrual at December 31, 2015. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Note 20. Financial Instruments Derivative Instruments Objectives and Strategies for Holding Derivative Instruments In the ordinary course of business, Chemours enters into contractual arrangements (derivatives) to reduce its exposure to foreign currency risks. The Company has established a derivative program to be utilized for financial risk management. This program reflects varying levels of exposure coverage and time horizons based on an assessment of risk. The derivative program has procedures consistent with Chemours’ financial risk management policies and guidelines. Foreign Currency Forward Contracts Chemours uses foreign currency forward contracts to reduce its net exposure, by currency, related to non-functional currency-denominated monetary assets and liabilities of its operations so that exchange gains and losses resulting from exchange rate changes are minimized. These derivative instruments are not part of a cash flow hedge program or a fair value hedge program, and have not been designated as a hedge. Although all of the forward contracts are subject to an enforceable master netting agreement, Chemours has elected to present the derivative assets and liabilities on a gross basis in the Consolidated Balance Sheets. No collateral has been required for these contracts. All gains and losses resulting from the revaluation of the derivative assets and liabilities are recognized in other income, net in the Consolidated Statements of Operations during the period in which they occurred. At December 31, 2015, there were 41 forward exchange currency contracts outstanding with an aggregate gross notional value of $288. Chemours recognized a net gain of $42 for the year ended December 31, 2015, which is recorded in other income, net in the Consolidated Statements of Operations. There were no forward contracts outstanding in 2014 or 2013. Net Investment Hedge—Foreign Currency Borrowings Beginning on July 1, 2015, Chemours designated its €360 million Euro notes (see Note 18) as a hedge of its net investments in certain of its international subsidiaries that use the Euro as functional currency in order to reduce the volatility in stockholders’ equity caused by the changes in foreign currency exchange rates of the Euro with respect to the U.S. dollar. Chemours used the spot method to measure the effectiveness of the net investment hedge. Under this method, for each reporting period, the change in the carrying value of the Euro notes due to remeasurement of the effective portion is reported in accumulated other comprehensive loss in the Consolidated Balance Sheet and the remaining change in the carrying value of the ineffective portion, if any, is recognized in other income, net in the Consolidated Statements of Operations. Chemours evaluates the effectiveness of its net investment hedge quarterly at the beginning of each quarter. For the year ended December 31, 2015, Chemours did not record any ineffectiveness and recognized gain of $8 on its net investment hedges within accumulated other comprehensive income. There were no net investment hedges in 2014 or 2013. Fair Value of Derivative Instruments The table below presents the fair value of Chemours’ derivative assets and liabilities within the fair value hierarchy, as described in Note 3 to the Consolidated Financial Statements. Fair Value Using Level 2 Inputs Balance Sheet Location December 31, December 31, Asset derivatives: Foreign currency forward contracts Accounts and notes receivable–trade, net $ 2 $ — Total asset derivatives $ 2 $ — Liability derivatives: Foreign currency forward contracts Other accrued liabilities $ 2 $ — Total liability derivatives $ 2 $ — We classify our foreign currency forward contracts in Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. For derivative assets and liabilities, standard industry models are used to calculate the fair value of the various financial instruments based on significant observable market inputs, such as foreign exchange rates and implied volatilities obtained from various market sources. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance and quality checks. |
Long-Term Employee Benefits
Long-Term Employee Benefits | 12 Months Ended |
Dec. 31, 2015 | |
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |
Long-Term Employee Benefits | Note 21. Long-Term Employee Benefits Plans Covering Employees in the U.S. Chemours sponsors a variety of employee benefit plans which cover substantially all U.S. employees. Prior to July 1, 2015, U.S. employees generally participated in DuPont’s primary pension plan, the Retirement Savings Plan and certain other long-term employee benefit plans. In conjunction with the separation on July 1, 2015, Chemours employees stopped participating in DuPont plans and became participants in newly established Chemours plans. DuPont retained all liabilities related to its U.S. plans post-separation. On July 1, 2015, Chemours established a defined contribution plan, similar in design to the DuPont Retirement Savings plan, which covered all eligible U.S. employees. The purpose of the Plan is to encourage employees to save for their future retirement needs. The plan is a tax qualified contributory profit sharing plan, with cash or deferred arrangement, and any eligible employee of Chemours may participate. Chemours matches 100% of the first 6% of the employee’s contribution election. Chemours may also provide an additional discretionary retirement savings contribution to eligible employees’ eligible compensation. The amount of this contribution, if any, is at the sole discretion of the Company. The plan’s matching contributions vest immediately upon contribution. The discretionary contribution vests for employees with at least three years of service. In lieu of a defined benefit plan like DuPont’s primary pension plan, Chemours provides an enhanced 401(k) contribution for employees who previously participated in DuPont’s pension plan. The enhanced benefits consist of an additional contribution of 1% to 7% of the employee’s eligible compensation depending on the employee’s length of service with DuPont at the time of separation. The plan will continue for a period up to 2019, subject to early termination. Plans Covering Employees Outside the United States Pension coverage for employees of Chemours non-U.S. subsidiaries is provided, to the extent deemed appropriate, through separate plans established after separation and comparable to the DuPont plans in those countries. Obligations under such plans are funded by depositing funds with trustees, covered by insurance contracts or are unfunded. Participation in the Plans Prior to July 1, 2015, Chemours participated in DuPont’s U.S. and non-U.S. plans, except for the plans in the Netherlands and Taiwan, as though they were participants in a multi-employer plan with the other businesses of DuPont. The following table presents the multi-employer pension expense allocated by DuPont to Chemours for the plans in which Chemours participated prior to the separation. The allocation of cost was based on active employee headcount and is included in the Consolidated Statement of Operations. These amounts do not represent cash payments to DuPont or DuPont’s plans. EIN/Pension Year Ended December 31, Plan Name 2015 2014 2013 DuPont Pension and Retirement Plan (U.S.) 51-0014090/001 $ 48 $ 51 $ 126 All other U.S. and non-U.S. Plans 5 (1 ) 38 Single and Multiple Employer Plans Beginning in the first quarter of 2015, Chemours has accounted for the plans covering its employees in the Netherlands and Taiwan as a multiple employer plan and a single employer plan, respectively. In the third quarter of 2015, in connection with the separation, additional plans in Germany, Belgium, Japan, Korea, Mexico and Switzerland were established. As of December 31, 2015, these plans were all accounted for as single employer plans. The net periodic benefit costs for the pension and amounts recognized in other comprehensive income for the year ended December 31, 2015 were as follows: Year Ended Net periodic pension cost (income): Service cost $ 16 Interest cost 19 Expected return on plan assets (83 ) Amortization of loss 16 Amortization of prior service cost 4 Net periodic pension income $ (28 ) Changes in plan assets and benefit obligations recognized in other comprehensive income: Net loss $ 11 Amortization of loss (16 ) Prior service credit (24 ) Amortization of prior service cost (4 ) Effect of foreign exchange rates (33 ) Total benefit recognized in other comprehensive income $ (66 ) Total recognized in net periodic pension income and other comprehensive income $ (94 ) The pre-tax amounts recognized in accumulated other comprehensive loss are summarized below: December 31, Net loss $ 363 Prior service credit (16 ) Total amount recognized in accumulated other comprehensive loss $ 347 The estimated pre-tax net loss and prior service cost for the defined benefit pension plans that will be amortized from accumulated other comprehensive (loss) income into net periodic benefit cost during 2016 are $20 and $2, respectively. Summarized information on the Company’s pension benefit plans is as follows: Year Ended Change in benefit obligation Benefit obligation at beginning of year $ — Assumption and establishment of pension plans 1,332 Service cost 16 Interest cost 19 Plan participants’ contributions 2 Actuarial loss (gain) (76 ) Benefits paid (39 ) Plan Amendments (24 ) Settlements & Transfers (6 ) Currency translation (118 ) Benefit obligation at end of year 1,106 Change in plan assets Fair value of plan assets at beginning of year — Assumption and establishment of pension plans 1,297 Actual loss on plan assets (7 ) Employer contributions 16 Plan participants’ contributions 2 Benefits paid (39 ) Settlements & Transfers (6 ) Currency translation (123 ) Fair value of plan assets at end of year 1,140 Funded status at end of year $ 34 The net amounts recognized in the Consolidated Balance Sheet as of December 31, 2015 consist of: Noncurrent assets $ 138 Current liabilities (2 ) Noncurrent liabilities (102 ) Net amount recognized $ 34 The accumulated benefit obligation for all pension plans was $1,030 as of December 31, 2015. The following information relates to pension plans with projected and accumulated benefit obligations in excess of the fair value of plan assets at December 31, 2015: Information for pension plans with projected benefit obligation in excess of plan assets December 31, Projected benefit obligation $ 194 Accumulated benefit obligation 158 Fair value of plan assets 93 Information for pension plans with accumulated benefit obligations in excess of plan assets December 31, Projected benefit obligation $ 190 Accumulated benefit obligation 157 Fair value of plan assets 90 Assumptions The Company generally utilizes discount rates that are developed by matching the expected cash flows of each benefit plan to various yield curves constructed from a portfolio of high quality, fixed income instruments provided by the plan’s actuary as of the measurement date. The expected rate of return on assets reflects economic assumptions applicable to each country. The following assumptions have been used to determine the benefit obligations and net benefit cost: Weighted average assumptions used to determine benefit obligations and benefit cost Pension Benefit Pension Income for Discount rate 2.4 % 1.7 % Rate of compensation increase (1) 2.6 % 3.9 % Expected return on plan assets N/A 7.2 % (1) The rate of compensation increase represents the single annual effective salary increase that an average plan participant would receive during the participant’s entire career at Chemours. Plan Assets Each pension plan’s assets are invested through a master trust fund. The strategic asset allocation for the trust fund is selected by management, reflecting the results of comprehensive asset and liability modeling. Chemours establishes strategic asset allocation percentage targets and appropriate benchmarks for significant asset classes with the aim of achieving a prudent balance between return and risk. Strategic asset allocations in countries are selected in accordance with the laws and practices of those countries. The weighted average target allocation for Chemours’ pension plan assets is summarized as follows: December 31, Cash and cash equivalents 2.7 % U.S. and non-U.S. equity securities 42.3 % Fixed income securities 55.0 % Total 100.0 % Fixed income securities include corporate issued, government issued and asset backed securities. Corporate debt investments encompass a range of credit risk and industry diversification. Fair value calculations may not be indicative of net realizable value or reflective of future fair values. Furthermore, although Chemours believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The table below presents the fair values of Chemours’ pension assets by level within the fair value hierarchy, as described in Note 3, as of December 31, 2015. Total Level 1 Level 2 Asset Category: Debt–government issued $ 465 $ 7 $ 458 Debt–corporate issued 148 60 88 Debt–asset backed 33 — 33 U.S. and non-U.S. equities 460 37 423 Derivatives–asset position 4 — 4 Derivatives–liability position (16 ) — (16 ) Cash and cash equivalents 40 40 — Other 6 4 2 1,140 $ 148 $ 992 Pension trust payables (1) (3 ) Total $ 1,137 (1) Payables are primarily for investment securities purchased. For pension plan assets classified as Level 1, total fair value is either the price of the most recent trade at the time of the market close or the official close price, as defined by the exchange on which the asset is most actively traded on the last trading day of the period, multiplied by the number of units held without consideration of transaction costs. For pension benefit plan assets classified as Level 2, where the security is frequently traded in less active markets, fair value is based on the closing price at the end of the period; where the security is less frequently traded, fair value is based on the price a dealer would pay for the security or similar securities, adjusted for any terms specific to that asset or liability. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance and quality checks. For derivative assets and liabilities, standard industry models are used to calculate the fair value of the various financial instruments based on significant observable market inputs, such as foreign exchange rates, commodity prices, swap rates, interest rates and implied volatilities obtained from various market sources. Cash Flow Defined Benefit Plan DuPont contributed, on behalf of Chemours, $35 and $34 to its pension plans other than the principal U.S. pension plan in 2014 and 2013, respectively. DuPont contributed, on behalf of Chemours, $66 and $58 to its other long-term employee benefit plans in 2014 and 2013, respectively. DuPont contributed, on behalf of Chemours, $38 in the first half of 2015 to its pension and other long-term benefit plans and Chemours contributed $8 during 2015 to its pension plans. Chemours expects to contribute $18 to its pension plans in 2016. Estimated future benefit payments The following benefit payments are expected to be paid over the next five years and the five years thereafter as of December 31, 2015: 2016 $ 42 2017 45 2018 44 2019 47 2020 47 2021–2025 250 Defined Contribution Plan DuPont’s contributions to the plan on behalf of Chemours were allocated in the amounts of $52 and $50 for the years ended December 31, 2014 and 2013, respectively. In addition, DuPont contributed on behalf of Chemours about $26 to its defined contribution plans for the first half of 2015. From July 1 to December 31, 2015, Chemours contributed $28 to its defined contribution plan. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Note 22. Stock-based Compensation Total stock-based compensation cost included in the Consolidated Statements of Operations was $17, $7 and $6 for the years ended December 31, 2015, 2014 and 2013, respectively. The income tax benefits related to stock-based compensation arrangements were $7, $3 and $2 for the years ended December 31, 2015, 2014 and 2013, respectively. Stock-based compensation expense in prior years and until separation on July 1, 2015 was allocated to Chemours based on the portion of DuPont’s incentive stock program in which Chemours employees participated. Adopted at separation, the Chemours Company Equity and Incentive Plan grants certain employees, independent contractors, or non-employee directors of the Company different forms of awards, including stock options and RSUs. The equity and incentive plan has maximum shares reserve for the grant of 13,500,000 plus the number of shares of converted awards (described below). Chemours Compensation Committee determines the long-term incentive mix, including stock options and RSU, and may authorize new grants annually. In accordance with the employee matters agreement between DuPont and Chemours, certain executives and employees were entitled to receive equity compensation awards of Chemours in replacement of previously outstanding awards granted under various DuPont stock incentive plans prior to the separation. In connection with the spin-off, these awards were converted into new Chemours equity awards using a formula designed to preserve the intrinsic value of the awards immediately prior to the July 1, 2015 spin-off. At the date of conversion, total intrinsic value of the converted options was $18. As a result of the conversion of these awards, we recorded an approximate $3 incremental charge in the third quarter of 2015. The terms and conditions of the DuPont awards were replicated and as necessary, adjusted to ensure that the vesting schedule and economic value of the awards was unchanged by the conversion. Stock Options Chemours granted non-qualified options to employees in July 2015 representing replacement of previously granted performance stock unit awards at DuPont. The July 2015 grant will cliff vest March 1, 2018 and expire 10 years from date of grant. Other than those options, Chemours’ expense related to stock options was entirely related to options granted to replace outstanding option awards from DuPont that were converted to Chemours options on July 1, 2015. The fair value related to stock options granted was determined using Black-Scholes option pricing model and the assumptions shown in the table below: Year Ended Risk-free interest rate 1.5 % Expected term (years) 5.4 Volatility 42.0 % Dividend yield 6.9 % Fair value per stock option $ 3.17 The Company determined the dividend yield by dividing the expected annual dividend on the Company’s stock by the option exercise price. A historical daily measurement of volatility is determined based on Chemours peer companies’ average volatility adjusted for the Company’s debt leverage. The risk-free interest rate is determined by reference to the yield on an outstanding U.S. Treasury note with a term equal to the expected life of the option granted. Expected life is determined by reference to Chemours peer companies expected life and the historical experience of Chemours under the DuPont stock incentive plan prior to the separation. The following table summarizes Chemours stock option activity for the year ended December 31, 2015. Number of Weighted Weighted Aggregate Outstanding, December 31, 2014 — N/A Converted on July 1, 2015 7,794 $ 14.56 Granted 662 16.04 Exercised (22 ) 5.82 Forfeited (150 ) 17.20 Expired — N/A Outstanding, December 31, 2015 8,284 $ 14.66 4.82 $ — Exercisable, December 31, 2015 5,595 $ 13.79 4.21 $ — The aggregate intrinsic values in the table above represent the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of December 31, 2015 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their in-the-money options at quarter end. The amount changes based on the fair market value of the Company’s stock. Total intrinsic value of options exercised for year ended December 31, 2015 was insignificant. As of December 31, 2015, there was $5 of unrecognized stock-based compensation expense related to stock options that is expected to be recognized over a weighted-average period of 1.95 years. RSUs At the time of separation, in accordance with the employee matters agreement, the Company issued RSUs that serially vest over a three-year period and, upon vesting, convert one-for-one to Chemours common stock to replace similar DuPont awards. Under the existing awards, a retirement eligible employee retains any granted awards upon retirement provided the employee has rendered at least six months of service following the grant date. Additional RSUs were also granted to key senior management employees with a performance condition. These RSUs vest on the third anniversary of the date of grant subject to the satisfaction of the performance condition. The fair value of all stock-settled RSUs is based upon the market price of the underlying common stock as of the grant date. Non-vested awards of RSUs, both with and without performance feature, as of December 31, 2015 are shown below. The weighted-average grant-date fair value of RSUs granted and converted during 2015 was $14.94. Number of Weighted Average Nonvested, December 31, 2014 — $ — Converted on July 1, 2015 1,431 16.00 Granted 1,065 13.50 Vested (133 ) 16.00 Forfeited (14 ) 16.00 Nonvested, December 31, 2015 2,349 14.87 As of December 31, 2015, there was $23 of unrecognized stock-based compensation expense related to RSUs that is expected to be recognized over a weighted-average period of 2.12 years. |
Geographic and Segment Informat
Geographic and Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segments, Geographical Areas [Abstract] | |
Geographic and Segment Information | Note 23. Geographic and Segment Information Geographic Information For and As of the Year Ended December 31, 2015 2014 2013 Net Sales (1) Net Property, Net Sales (1) Net Property, Net Sales (1) Net Property, North America (2) $ 2,570 $ 2,184 $ 2,759 $ 2,273 $ 3,138 $ 2,183 Asia Pacific 1,393 136 1,548 140 1,519 138 EMEA (3) 977 308 1,190 372 1,237 321 Latin America (4) 777 549 935 523 965 330 Total $ 5,717 $ 3,177 $ 6,432 $ 3,308 $ 6,859 $ 2,972 (1) Net sales are attributed to countries based on customer location. (2) Includes net sales in Canada of $140, $147 and $145 in 2015, 2014 and 2013, respectively. Also includes net property, plant and equipment in Canada of $13, $14 and $13 in 2015, 2014 and 2013, respectively. (3) EMEA includes Europe, Middle East and Africa. (4) Latin America includes Mexico. Segment Information Chemours’ operations are classified into three segments namely: Titanium Technologies, Fluoroproducts and Chemical Solutions. Corporate costs and certain legal and environmental expenses that are not aligned with the segments and foreign exchange gains and losses are reflected in Corporate and Other. The Titanium Technologies segment is the leading global producer of TiO 2 In general, the accounting policies of the segments are the same as those described in Note 3. Products are transferred between segments on a basis intended to reflect, as nearly as practicable, the market value of the products. Segment net assets includes net working capital, net property, plant and equipment, and other noncurrent operating assets and liabilities of the segment. Depreciation and amortization includes depreciation on research and development facilities and amortization of other intangible assets, excluding write-down of assets. Adjusted EBITDA is the primary measure of segment profitability used by the Chief Operating Decision Maker (CODM) and is defined as income (loss) before income taxes excluding the following: • interest expense, depreciation and amortization, • non-operating pension and other post-retirement employee benefit costs, • exchange gains (losses), • employee separation, asset-related charges and other charges, net, • asset impairments, • gains (losses) on sale of business or assets, and • other items not considered indicative of our ongoing operational performance and expected to occur infrequently. The tables presented below reflect the reclassification of certain corporate costs, certain legal and environmental expenses that are not aligned with our reportable segments, and foreign exchange gains and losses from our reportable segments into Corporate and Other. All periods presented reflect the current definition of Adjusted EBITDA. Titanium Fluoroproducts Chemical Corporate Total Year Ended December 31, 2015 Net sales $ 2,392 $ 2,230 $ 1,095 $ — $ 5,717 Adjusted EBITDA 326 300 29 (82 ) 573 Depreciation and amortization 125 88 52 2 267 Equity in earnings of affiliates — 21 — 1 22 Net assets 1,659 1,567 839 (3,935 ) 130 Investments in affiliates — 127 — 9 136 Purchases of plant, property and equipment 255 142 117 5 519 2014 Net sales $ 2,937 $ 2,327 $ 1,168 $ — $ 6,432 Adjusted EBITDA 723 282 17 (146 ) 876 Depreciation and amortization 125 83 48 1 257 Equity in earnings of affiliates — 20 — — 20 Net assets 1,748 1,480 782 (337 ) 3,673 Investments in affiliates — 124 — — 124 Purchases of plant, property and equipment 365 133 106 — 604 2013 Net sales $ 3,019 $ 2,379 $ 1,461 $ — $ 6,859 Adjusted EBITDA 726 395 101 (238 ) 984 Depreciation and amortization 117 90 53 1 261 Equity in earnings of affiliates — 22 — — 22 Net assets 1,390 1,387 734 (294 ) 3,217 Investments in affiliates — 123 — — 123 Purchases of plant, property and equipment 290 96 52 — 438 Total Adjusted EBITDA reconciles to total consolidated net (loss) income in the Consolidated Statements of Operations as follows: Year Ended December 31, 2015 2014 2013 Total Adjusted EBITDA $ 573 $ 876 $ 984 Interest (132 ) — — Depreciation and amortization (267 ) (257 ) (261 ) Non-operating pension and other post-retirement employee benefit costs 3 (22 ) (114 ) Exchange gains (losses) 19 (66 ) (31 ) Asset impairments (73 ) — — Restructuring charges (285 ) (21 ) (2 ) Transaction, legal and other charges (17 ) — — (Loss) gain on sale of assets and businesses (9 ) 40 — (Loss) income before income taxes (188 ) 550 576 (Benefit from) provision for income taxes (98 ) 149 152 Net (loss) income $ (90 ) $ 401 $ 424 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 24. Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss), net of income taxes, consisted of: Currency Net Employee Total Balance at December 31, 2012 $ 19 $ — $ — $ 19 Other comprehensive income (loss) — — — — Balance at December 31, 2013 19 — — 19 Other comprehensive income (loss) — — — — Balance at December 31, 2014 19 — — 19 Assumption and establishment of pension plans, net — — (311 ) (311 ) Other comprehensive income (loss) (304 ) 8 52 (244 ) Balance at December 31, 2015 $ (285 ) $ 8 $ (259 ) $ (536 ) |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Note 25. Quarterly Financial Data (Unaudited) The following is a summary of the quarterly results of operations for the years ended December 31, 2015 and 2014. For the three months ended 2015 March 31 June 30 September 30 December 31 Full Year Net sales $ 1,363 $ 1,508 $ 1,486 $ 1,360 $ 5,717 Cost of goods sold 1,111 1,282 1,222 1,147 4,762 Income (loss) before income taxes 58 (18 ) (107 ) (121 ) (188 ) Net income (loss) 43 (18 ) (29 ) (86 ) (90 ) Net income (loss) attributable to Chemours 43 (18 ) (29 ) (86 ) (90 ) Basic earnings (loss) per share (1) 0.24 (0.10 ) (0.16 ) (0.48 ) (0.50 ) Diluted earnings (loss) per share (1) 0.24 (0.10 ) (0.16 ) (0.48 ) (0.50 ) For the three months ended 2014 March 31 June 30 September 30 December 31 Full Year Net sales $ 1,569 $ 1,682 $ 1,632 $ 1,549 $ 6,432 Cost of goods sold 1,240 1,311 1,273 1,248 5,072 Income before income taxes 132 155 143 120 550 Net income 98 116 108 79 401 Net income attributable to Chemours 98 116 107 79 400 Basic earnings per share (1) 0.54 0.64 0.59 0.44 2.21 Diluted earnings per share (1) 0.54 0.64 0.59 0.44 2.21 (1) On July 1, 2015, E. I. du Pont de Nemours and Company distributed 180,966,833 shares of Chemours’ common stock to holders of its common stock. Basic and diluted earnings (loss) per common share for all periods prior to July 1, 2015 were calculated using the shares distributed on July 1, 2015. Refer to Note 9 for information regarding the calculation of basic and diluted earnings per share. |
Guarantor Condensed Consolidati
Guarantor Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Guarantor Condensed Consolidating Financial Information | Note 26. Guarantor Condensed Consolidating Financial Information In connection with the issuance of the Notes by The Chemours Company (the Parent Issuer), this guarantor financial information is included in accordance with Rule 3-10 of Regulation S-X (“Rule 3-10”). The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured unsubordinated basis, in each case, subject to certain exceptions, by the Parent Issuer and by certain subsidiaries (together, the Guarantor Subsidiaries). Each of the Guarantor Subsidiaries is 100% owned by the Company. None of the other subsidiaries of the Company, either direct or indirect, guarantee the Notes (together, the Non-Guarantor Subsidiaries). The Guarantor Subsidiaries of the Notes, excluding the Parent Issuer, will be automatically released from those guarantees upon the occurrence of certain customary release provisions. The following condensed consolidating financial information is presented to comply with the Company’s requirements under Rule 3-10: • the Consolidating Statements of Comprehensive Income (Loss) for the years ended December 31, 2015, 2014 and 2013; • the Consolidating Balance Sheets as of December 31, 2015 and 2014; and • the Consolidating Statements of Cash Flows for the years ended December 31, 2015, 2014 and 2013. Condensed consolidating financial information of the Parent Issuer for the year ended December 31, 2013 did not exist as the Parent Issuer was not organized until February 18, 2014. As discussed in Note 2, Chemours did not operate as a separate, stand-alone entity for the full period covered by the Consolidated Financial Statements. Prior to our spin-off on July 1, 2015, Chemours operations were included in DuPont’s financial results in different legal forms, including but not limited to wholly-owned subsidiaries for which Chemours was the sole business, components of legal entities in which Chemours operated in conjunction with other DuPont businesses and a majority owned joint venture. For periods prior to July 1, 2015, the accompanying Condensed Consolidated Financial Information has been prepared from DuPont’s historical accounting records and is presented on a stand-alone basis as if the business operations had been conducted independently from DuPont. The Condensed Consolidating Financial Information is presented using the equity method of accounting for its investments in 100% owned subsidiaries. Under the equity method, the investments in subsidiaries are recorded at cost and adjusted for our share of the subsidiaries cumulative results of operations, capital contributions, distributions and other equity changes. The elimination entries principally eliminate investments in subsidiaries and intercompany balances and transactions. The financial information in this note should be read in conjunction with the Consolidated Financial Statements presented and other notes related thereto contained in this Registration Statement on Form S-4. The Company revised its Condensed Consolidating Statement of Comprehensive Income and of Cash Flows for the year ended December 31, 2015 to correct the presentation of certain intercompany activities, which were improperly classified among the Parent Issuer, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries. These errors had no impact on the Condensed Consolidating Balance Sheet, Consolidated Financial Statements of the Company. The Company assessed the materiality of these errors on the previously issued financial statements and concluded that the errors were not material to the Consolidated Financial Statements taken as a whole. The impact of the revisions noted above is reflected in the following tables: Condensed Consolidating Statements of Comprehensive (Loss) Income: Parent Guarantor Non-Guarantor Eliminations and As As As As As As As As Year Ended December 31, 2015 Net sales $ — $ — $ 4,067 $ 4,044 $ 3,200 $ 3,269 $ (1,550 ) $ (1,596 ) Cost of goods sold — — 4,123 3,708 2,246 2,650 (1,607 ) (1,596 ) Gross (loss) profit — — (56 ) 336 954 619 57 — Selling, general and administrative expense 15 15 460 426 170 204 (13 ) (13 ) Equity in earnings of subsidiaries (15 ) (47 ) — — — — 15 47 Interest expense and other income, net (106 ) (74 ) 192 91 (107 ) (75 ) (57 ) (20 ) (Loss) income before income taxes (136 ) (136 ) (734 ) (413 ) 654 321 28 40 (Benefit from) provision for income taxes (46 ) (46 ) (114 ) (89 ) 54 40 8 (3 ) Net (loss) income (90 ) (90 ) (620 ) (324 ) 600 281 20 43 Comprehensive (loss) income attributable to Chemours (82 ) (82 ) (620 ) (324 ) 348 29 20 43 Condensed Consolidating Statements of Cash Flows: Parent Guarantor Non-Guarantor Eliminations and As As As As As As As As Year Ended December 31, 2015 Cash flows from operating activities $ (119 ) $ (119 ) $ (125 ) $ 171 $ 440 $ 121 $ (14 ) $ 9 Cash flows from investing activities — — (446 ) (446 ) (253 ) (253 ) 202 202 Cash flows from financing activities 119 119 666 370 90 409 (188 ) (211 ) Condensed Consolidating Statements of Comprehensive (Loss) Income Year Ended December 31, 2015 Parent Issuer Guarantor Non-Guarantor Eliminations Consolidated Net sales $ — $ 4,044 $ 3,269 $ (1,596 ) $ 5,717 Cost of goods sold — 3,708 2,650 (1,596 ) 4,762 Gross (loss) profit — 336 619 — 955 Selling, general and administrative expense 15 426 204 (13 ) 632 Research and development expense — 95 2 — 97 Employee separation and asset related charges, — 295 38 — 333 Goodwill impairment — 25 — — 25 Total expenses 15 841 244 (13 ) 1,087 Equity in earnings of affiliates — 1 21 — 22 Equity in net loss of subsidiaries (47 ) — — 47 — Interest expense, net (131 ) (1 ) — — (132 ) Intercompany interest income (expense), net 44 — (44 ) — — Other income (loss), net 13 92 (31 ) (20 ) 54 (Loss) income before income taxes (136 ) (413 ) 321 40 (188 ) (Benefit from) provision for income taxes (46 ) (89 ) 40 (3) (98 ) Net (loss) income (90 ) (324 ) 281 43 (90 ) Less: Net income attributable to noncontrolling interests — — — — — Net (loss) income attributable to Chemours $ (90 ) $ (324 ) $ 281 $ 43 $ (90 ) Comprehensive (loss) income attributable to Chemours $ (82 ) $ (324 ) $ 29 $ 43 $ (334 ) Condensed Consolidating Statements of Comprehensive Income Year Ended December 31, 2014 Parent Issuer Guarantor Non-Guarantor Eliminations Consolidated Net sales $ — $ 4,593 $ 3,722 $ (1,883 ) $ 6,432 Cost of goods sold — 3,863 3,093 (1,884 ) 5,072 Gross profit — 730 629 1 1,360 Selling, general and administrative expense — 429 256 — 685 Research and development expense — 127 16 — 143 Employee separation and asset related charges, net — 11 10 — 21 Total expenses — 567 282 — 849 Equity in earnings of affiliates — — 20 — 20 Equity in earnings of subsidiaries 400 — — (400 ) — Other income (expense), net — 80 (61 ) — 19 Income before income taxes 400 243 306 (399 ) 550 Provision for income taxes — 75 76 (2 ) 149 Net income 400 168 230 (397 ) 401 Less: Net income attributable to noncontrolling interests — — 1 — 1 Net income attributable to Chemours $ 400 $ 168 $ 229 $ (397 ) $ 400 Comprehensive income attributable to Chemours $ 400 $ 168 $ 229 $ (397 ) $ 400 Condensed Consolidating Statements of Comprehensive Income Year Ended December 31, 2013 Parent Issuer Guarantor Non-Guarantor Eliminations Consolidated Net sales $ — $ 5,066 $ 3,690 $ (1,897 ) $ 6,859 Cost of goods sold — 4,250 3,053 (1,908 ) 5,395 Gross profit — 816 637 11 1,464 Selling, general and administrative expense — 492 276 — 768 Research and development expense — 147 17 — 164 Employee separation and asset related charges, net — — 2 — 2 Total expenses — 639 295 — 934 Equity in earnings of affiliates — — 22 — 22 Other income (expense), net — 48 (24 ) — 24 Income before income taxes — 225 340 11 576 Provision for income taxes — 72 77 3 152 Net income — 153 263 8 424 Less: Net income attributable to noncontrolling interests — — 1 — 1 Net income attributable to Chemours $ — $ 153 $ 262 $ 8 $ 423 Comprehensive income attributable to Chemours $ — $ 153 $ 262 $ 8 $ 423 Condensed Consolidating Balance Sheets Year Ended December 31, 2015 Parent Issuer Guarantor Non-Guarantor Eliminations Consolidated Assets Current assets: Cash $ — $ 95 $ 271 $ — $ 366 Accounts and notes receivable–trade, — 344 515 — 859 Intercompany receivable 3 459 54 (516 ) — Inventories — 493 501 (22 ) 972 Prepaid expenses and other — 49 52 3 104 Total current assets 3 1,440 1,393 (535 ) 2,301 Property, plant and equipment — 7,070 1,945 — 9,015 Less: Accumulated depreciation — (4,899 ) (939 ) — (5,838 ) Net property, plant and equipment — 2,171 1,006 — 3,177 Goodwill — 141 25 — 166 Other intangible assets, net — 10 — — 10 Investments in affiliates — 9 127 — 136 Investment in subsidiaries 3,105 — — (3,105 ) — Intercompany notes receivable 1,150 — — (1,150 ) — Other assets 19 275 214 — 508 Total assets $ 4,277 $ 4,046 $ 2,765 $ (4,790 ) $ 6,298 Liabilities and equity Current liabilities: Accounts payable $ — $ 637 $ 336 $ — $ 973 Short-term borrowings and current maturities of long-term debt 15 24 — — 39 Intercompany payable 202 54 260 (516 ) — Other accrued liabilities 21 287 146 — 454 Total current liabilities 238 1,002 742 (516 ) 1,466 Long-term debt 3,913 2 — — 3,915 Other liabilities — 456 97 — 553 Intercompany notes payable — — 1,150 (1,150 ) — Deferred income taxes — 173 61 — 234 Total liabilities 4,151 1,633 2,050 (1,666 ) 6,168 Commitments and contingent liabilities Equity Total Chemours stockholder’s equity 126 2,413 711 (3,124 ) 126 Noncontrolling interests — — 4 — 4 Total equity 126 2,413 715 (3,124 ) 130 Total liabilities and equity $ 4,277 $ 4,046 $ 2,765 $ (4,790 ) $ 6,298 Condensed Consolidating Balance Sheets Year Ended December 31, 2014 Parent Issuer Guarantor Non-Guarantor Eliminations Consolidated Assets Current assets: Cash $ — $ — $ — $ — $ — Accounts and notes receivable–trade, — 355 491 — 846 Intercompany receivable — 316 42 (358 ) — Inventories — 510 616 (74 ) 1,052 Prepaid expenses and other — 12 16 15 43 Total current assets — 1,193 1,165 (417 ) 1,941 Property, plant and equipment — 7,107 2,175 — 9,282 Less: Accumulated depreciation — (4,848 ) (1,126 ) — (5,974 ) Net property, plant and equipment — 2,259 1,049 — 3,308 Goodwill — 170 28 — 198 Other intangible assets, net — 11 — — 11 Investments in affiliates — — 124 — 124 Investments in subsidiaries 3,669 — — (3,669 ) — Other assets — 332 45 — 377 Total assets $ 3,669 $ 3,965 $ 2,411 $ (4,086 ) $ 5,959 Liabilities and equity Current liabilities: Accounts payable $ — $ 614 $ 432 $ — $ 1,046 Intercompany payable — 42 316 (358 ) — Other accrued liabilities — 248 104 — 352 Total current liabilities — 904 852 (358 ) 1,398 Other liabilities — 454 10 — 464 Deferred income taxes — 380 44 — 424 Total liabilities — 1,738 906 (358 ) 2,286 Commitments and contingent liabilities Equity Total Chemours stockholder’s equity 3,669 2,227 1,501 (3,728 ) 3,669 Noncontrolling interests — — 4 — 4 Total equity 3,669 2,227 1,505 (3,728 ) 3,673 Total liabilities and equity $ 3,669 $ 3,965 $ 2,411 $ (4,086 ) $ 5,959 Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2015 Parent Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating activities Cash (used for) provided by operating activities $ (119 ) $ 171 $ 121 $ 9 $ 182 Investing activities Purchases of property, plant and equipment — (292 ) (227 ) — (519 ) Proceeds from sales of assets, net — 6 6 — 12 Foreign exchange contract settlements — 42 — — 42 Investment in affiliates — — (32 ) — (32 ) Intercompany investing activities — (202 ) — 202 — Cash used for investing activities — (446 ) (253 ) 202 (497 ) Financing activities Proceeds from issuance of debt, net 3,489 2 — — 3,491 Intercompany short-term borrowings, net 202 — — (202 ) — Debt repayments (8 ) (2 ) — — (10 ) Dividends paid (105 ) — — — (105 ) Debt issuance costs (79 ) — — — (79 ) Cash provided at separation by DuPont — 87 160 — 247 Net transfers (to) from DuPont (3,380 ) 283 249 (9) (2,857 ) Cash provided by financing activities 119 370 409 (211 ) 687 Effect of exchange rate changes on cash — — (6 ) — (6 ) Increase in cash — 95 271 — 366 Cash at beginning of year — — — — — Cash at end of year $ — $ 95 $ 271 $ — $ 366 Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2014 Parent Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating activities Cash provided by operating activities $ — $ 302 $ 208 $ (5 ) $ 505 Investing activities Purchases of property, plant and equipment — (287 ) (317 ) — (604 ) Proceeds from sales of assets, net — 30 2 — 32 Investment in affiliates — — (8 ) — (8 ) Other investing activities — 20 — — 20 Cash used for investing activities — (237 ) (323 ) — (560 ) Financing activities Net transfers (to) from DuPont — (65 ) 115 5 55 Cash (used for) provided by financing activities — (65 ) 115 5 55 Effect of exchange rate changes on cash — — — — — Increase in cash — — — — — Cash at beginning of year — — — — — Cash at end of year $ — $ — $ — $ — $ — Year Ended December 31, 2013 Parent Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating activities Cash provided by operating activities $ — $ 388 $ 409 $ 1 $ 798 Investing activities Purchases of property, plant and equipment — (200 ) (238 ) — (438 ) Proceeds from sales of assets, net — 8 6 — 14 Cash used for investing activities — (192 ) (232 ) — (424 ) Financing activities Net transfers to DuPont — (196 ) (177 ) (1 ) (374 ) Cash used for financing activities — (196 ) (177 ) (1 ) (374 ) Effect of exchange rate changes on cash — — — — — Increase in cash — — — — — Cash at beginning of year — — — — — Cash at end of year $ — $ — $ — $ — $ — |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Preparation of Financial Statements | Preparation of Financial Statements The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses, including allocations of costs as discussed above, during the reporting period. Management’s estimates are based on historical experience, facts and circumstances available at the time and various other assumptions that we believe are reasonable. Actual results could differ from those estimates. |
Principles of Consolidation and Combination | Principles of Consolidation and Combination The Consolidated Financial Statements include the accounts Chemours and its subsidiaries, and entities in which a controlling interest is maintained. For those consolidated subsidiaries in which the Company's ownership is less than 100%, the outside shareholders' interests are shown as noncontrolling interests. Investments in companies in which Chemours, directly or indirectly, owns 20% to 50% of the voting stock and has the ability to exercise significant influence over operating and financial policies of the investee are accounting for using the equity method of accounting. As a result, Chemours' share of the earnings or losses of such equity affiliates is included in the accompanying Consolidated Statements of Operations and our share of these companies' stockholders' equity is included in the accompanying Consolidated Balance Sheets. The financial statements for the periods prior to our spin-off on July 1, 2015 include the combined assets, liabilities, revenues, and expenses of Chemours. We eliminated all intercompany accounts and transactions in the preparation of the accompanying Consolidated and Combined Financial Statements. |
Revenue Recognition | Revenue Recognition Revenue is recognized when the earnings process is complete. Revenue for product sales is recognized when products are shipped to the customer in accordance with the terms of the agreement, when title and risk of loss have been transferred, collectability is reasonably assured and pricing is fixed or determinable. Revenue associated with advance payments are recorded as deferred revenue and are recognized as shipments are made and title, ownership and risk of loss pass to the customer. Accruals are made for sales returns and other allowances based on historical experience. Cash sales incentives are accounted for as a reduction in sales and noncash sales incentives are recorded as a charge to cost of goods sold at the time the revenue or selling expense, depending on the nature of the incentive, is recorded. Amounts billed to customers for shipping and handling fees are included in net sales and costs incurred by Chemours for the delivery of goods are classified as cost of goods sold in the Consolidated Statements of Operations. Taxes on revenue-producing transactions are excluded from net sales. Licensing and royalty income is recognized in accordance with agreed upon terms, when performance obligations are satisfied, the amount is fixed or determinable and collectability is reasonably assured. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents generally include cash, time deposits or highly liquid investments with original maturities of three months or less. Prior to the spin-off, Chemours participated in DuPont’s centralized cash management and financing programs (see Note 4 for additional information). |
Receivables and Allowance for Doubtful Accounts | Receivables and Allowance for Doubtful Accounts Receivables are recognized net of an allowance for doubtful accounts. The allowance for doubtful accounts reflects the best estimate of losses inherent in Chemours’ accounts receivable portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other available evidence. Accounts receivable are written off when management determines that they are uncollectible. |
Inventories | Inventories Chemours’ inventories are valued at the lower of cost or market. Inventories held at substantially all U.S. locations are valued using the last-in, first-out (LIFO) method. Inventories held outside the U.S. are determined by the average cost method. Elements of cost in inventories include raw materials, direct labor, and manufacturing overhead. Stores and supplies are valued at cost or market, whichever is lower; cost is generally determined by the average cost method. Approximately 61% and 52% of inventory is on a LIFO basis as of December 31, 2015 and 2014, respectively. The remainder is accounted for using the average cost method. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is carried at cost and is depreciated using the straight-line method. Property, plant and equipment placed in service prior to 1995 is depreciated under the sum-of-the-years’ digits method or other substantially similar methods. Substantially all equipment and buildings are depreciated over useful lives ranging from 15 to 25 years . Capitalizable costs associated with computer software for internal use are amortized on a straight-line basis over five to seven years . When assets are surrendered, retired, sold or otherwise disposed of, their gross carrying values and related accumulated depreciation are removed from the balance sheet and included in determining gain or loss on such disposals. Repair and maintenance costs that materially add to the value of the asset or prolong its useful life are capitalized and depreciated based on the extension to the useful life. Capitalized repair and maintenance costs are recorded on the Consolidated Balance Sheets in other assets. |
Direct Financing Type Leases | Direct Financing Type Leases Certain of Chemours’ facilities are located on land owned by third parties. The plant and equipment built on this land is constructed by, owned, and operated by Chemours for the exclusive benefit of the third party landlord. The useful lives of the equipment are generally shorter than the lease term, or there exists a purchase option for the third party to acquire the equipment at the end of the lease term. Based on an analysis of the underlying agreements, management has determined that these agreements and property represent a direct financing type lease, whereby Chemours is the lessor of its equipment to the third party landlords. As such, the related plant and equipment are reported as leases receivable. The current portion is included in accounts and notes receivable–trade, net (see Note 10) and the non-current portion is included in other assets (see Note 14) in the Consolidated Balance Sheets. The equipment has zero net book value within property, plant and equipment. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The excess of the purchase price over the estimated fair value of the net assets acquired, including identified intangibles, is recorded as goodwill. Goodwill is tested for impairment annually on October 1; however, these tests are performed more frequently when events or changes in circumstances indicate that the asset may be impaired. Impairment exists when carrying value exceeds fair value. Goodwill is evaluated for impairment at the reporting unit level. Evaluating goodwill for impairment is a two-step process. In the first step, Chemours compares the carrying value of net assets to the fair value of the related operations. Chemours’ methodology for estimating the fair value of its reporting units is using the income approach based on the present value of future cash flows. The factors considered in determining the cash flows include: 1) macroeconomic conditions; 2) industry and market considerations; 3) costs of raw materials, labor or other costs having a negative effect on earnings and cash flows; 4) overall financial performance; and 5) other relevant entity-specific events. If the fair value is determined to be less than the carrying value, a second step is performed to compute the amount of the impairment. Definite-lived intangible assets, such as purchased and licensed technology, patents, trademarks, and customer lists are amortized over their estimated useful lives, generally for periods ranging from five to 20 years . The reasonableness of the useful lives of these assets is continually evaluated. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Chemours evaluates the carrying value of long-lived assets to be held and used when events or changes in circumstances indicate the carrying value may not be recoverable. For purposes of recognition or measurement of an impairment loss, the assessment is performed on the asset or asset group at the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. To determine the level at which the assessment is performed, Chemours considers factors such as revenue dependency, shared costs and the extent of vertical integration. The carrying value of a long-lived asset is considered impaired when the total projected undiscounted cash flows from the use and eventual disposition of an asset or asset group are separately identifiable and are less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. The fair value methodology used is an estimate of fair market value which is made based on prices of similar assets or other valuation methodologies including present value techniques. Long-lived assets to be disposed of other than by sale are classified as held for use until their disposal. Long-lived assets to be disposed of by sale are classified as held for sale and are reported at the lower of carrying amount or fair market value less cost to sell. Depreciation is discontinued for long-lived assets classified as held for sale. |
Research and Development | Research and Development Research and development costs are expensed as incurred. Research and development expenses include costs (primarily consisting of employee costs, materials, contract services, research agreements, and other external spend) relating to the discovery and development of new products, enhancement of existing products and regulatory approval of new and existing products. |
Environmental Liabilities and Expenditures | Environmental Liabilities and Expenditures Chemours accrues for remediation activities when it is probable that a liability has been incurred and a reasonable estimate of the liability can be made. Environmental liabilities and expenditures included in the Consolidated Financial Statements include claims for matters that are liabilities of DuPont and its subsidiaries, that Chemours may be required to indemnify pursuant to the separation-related agreements executed prior to the spin-off. Accruals for environmental matters are recorded in cost of goods sold when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Accrued liabilities do not include claims against third parties and are not discounted. Costs related to environmental remediation are charged to expense in the period incurred. Other environmental costs are also charged to expense in the period incurred, unless they increase the value of the property or reduce or prevent contamination from future operations, in which case they are capitalized and amortized. |
Asset Retirement Obligations | Asset Retirement Obligations Chemours records asset retirement obligations at fair value at the time the liability is incurred. Fair value is measured using expected future cash outflows discounted at Chemours’ credit-adjusted risk-free interest rate, which are considered level 3 inputs. Accretion expense is recognized as an operating expense classified within cost of goods sold on the Consolidated Income Statements using the credit-adjusted risk-free interest rate in effect when the liability was recognized. The associated asset retirement obligations are capitalized as part of the carrying amount of the long-lived asset and depreciated over the estimated remaining useful life of the asset, generally for periods ranging from two to 25 years . |
Litigation | Litigation Chemours accrues for litigation matters when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Litigation liabilities and expenditures included in the Consolidated Financial Statements represent litigation matters that are liabilities of DuPont and its subsidiaries, that Chemours may be required to indemnify pursuant to the separation-related agreements executed prior to the spin-off. Legal costs such as outside counsel fees and expenses are charged to expense in the period services are received. |
Insurance | Insurance Chemours insures certain risks where permitted by law or regulation, including workers' compensation, vehicle liability and employee related benefits. Liabilities associated with these risks are estimated in part by considering historical claims experience, demographic factors and other actuarial assumptions. For other risks, the Company uses a combination of insurance and self-insurance, reflecting comprehensive reviews of relevant risks. A receivable for an insurance recovery is generally recognized when the loss has occurred and collection is considered probable. Prior to the spin-off, Chemours was a participant in DuPont’s self-insurance program where permitted by law or regulation, including workers’ compensation, vehicle liability and employee related benefits. Liabilities associated with these risks are estimated in part by considering historical claims experience, demographic factors, and other actuarial assumptions. For other risks, a combination of insurance and self-insurance is used, reflecting comprehensive reviews of relevant risks. The annual cost was allocated to all of the participating businesses using methodologies deemed reasonable by management. All obligations pursuant to these plans have historically been obligations of DuPont. As such, these obligations were not included in the Consolidated Balance Sheets, with the exception of self-insurance liabilities related to workers compensation, vehicle liability and employee related benefits. |
Defined Benefit Plans | Defined Benefit Plans We have defined benefit plans covering certain of our employees outside the U.S., which are generally required by local regulations. The benefits, which primarily relate to pension, are accrued over the employees’ service periods. We use actuarial methods and assumptions in the valuation of defined benefit obligations and the determination of net periodic pension income or expense. Differences between actual and expected results or changes in the value of defined benefit obligations and plan assets, if any, are not recognized in earnings as they occur but rather systematically over subsequent periods. |
Stock-based Compensation | Stock-based Compensation Chemours' stock-based compensation consists of stock options and restricted stock units (RSUs) to employees and non-employee directors. Stock options are measured at fair value on the grant date or date of modification, as applicable. We recognize compensation expense on a straight-line basis over the requisite service period. The number of awards ultimately expected to vest is determined by use of an estimated forfeiture rate. The estimated forfeiture rate is based on historical data for the employee group awarded options and expected employee turnover rates, which management reevaluates each period. |
Income Taxes | Income Taxes The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax basis of Chemours’ assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Chemours recognizes income tax positions that meet the more likely than not threshold and accrues interest related to unrecognized income tax positions, which is included in other income, net in our Consolidated Statements of Operations. Income tax related penalties are included in the provision for income taxes. Chemours does not provide for income taxes on undistributed earnings of all foreign subsidiaries that are intended to be indefinitely reinvested. Prior to the separation on July 1, 2015, income taxes presented attributed current and deferred income taxes of DuPont to Chemours’ stand-alone financial statements in a manner that is systematic, rational, and consistent with the asset and liability method prescribed by ASC 740, Income Taxes (ASC 740). Accordingly, Chemours’ income tax provision was prepared following the separate return method. The separate return method applies ASC 740 to the stand-alone financial statements of each member of the consolidated group as if the group member were a separate taxpayer and a stand-alone enterprise. |
Foreign Currency Translation | Foreign Currency Translation Chemours identifies its separate and distinct foreign entities and groups them into two categories: (1) extensions of the parent (U.S. dollar functional currency) and (2) self-contained (local functional currency). If a foreign entity does not align with either category, factors are evaluated and a judgment is made to determine the functional currency. Chemours changes the functional currency of its separate and distinct foreign entities only when significant changes in economic facts and circumstances indicate clearly that the functional currency has changed. During the periods covered by the Consolidated Financial Statements, part of the Chemours business operated within foreign entities. For foreign entities where the U.S. dollar is the functional currency, all foreign currency-denominated asset and liability amounts are remeasured into U.S. dollars at end-of-period exchange rates, except for inventories; prepaid expenses; property, plant and equipment; goodwill and other intangible assets, which are remeasured at historical rates. Foreign currency-denominated income and expenses are remeasured at average exchange rates in effect during the period, except for expenses related to balance sheet amounts remeasured at historical exchange rates. Exchange gains and losses arising from remeasurement of foreign currency-denominated monetary assets and liabilities are included in other income, net in the period in which they occur. For foreign entities where the local currency is the functional currency, assets and liabilities denominated in local currencies are translated into U.S. dollars at end-of-period exchange rates and the resulting translation adjustments are reported as a component of accumulated other comprehensive (loss) income in equity. Assets and liabilities denominated in other than the functional currency are remeasured into the functional currency prior to translation into U.S. dollars and the resulting exchange gains or losses are included in income in the period in which they occur. Income and expenses are translated into U.S. dollars at average exchange rates in effect during the period. Beginning in 2015, when the Chemours operations were legally and operationally separated within DuPont in anticipation of the spin-off, certain of Chemours foreign entities set their local currency as the functional currency. |
Derivatives | Derivatives Chemours enters into forward currency exchange contracts to minimize volatility in earnings related to the foreign exchange gains and losses resulting from remeasuring net monetary assets that Chemours holds which are denominated in non-functional currencies. Chemours does not hold or issue financial instruments for speculative or trading purposes. The derivative assets and liabilities are reported on a gross basis in the Consolidated Balance Sheets. All gains and losses resulting from the revaluation of the derivative assets and liabilities are recognized in other income, net in the Consolidated Statements of Operations during the period in which they occurred. Please refer to Note 20 for additional information. |
Fair Value Measurement | Fair Value Measurement Under the accounting for fair value measurements and disclosures, a fair value hierarchy was established that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Chemours uses the following valuation techniques to measure fair value for its assets and liabilities: (a) Level 1—Quoted market prices in active markets for identical assets and liabilities; (b) 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); and (c) Level 3—Unobservable inputs for the asset or liability, which are valued based on management's estimates of assumptions that market participants would use in pricing the asset or liability. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (FASB) issued ASU No. 2015-17, "Income Taxes (Topic 740) - Balance Sheet Classification of Deferred Taxes," to simplify the presentation of deferred income taxes and require that deferred income tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, and earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The Company retroactively adopted this change effective in 2015 and as such the 2014 Consolidated Balance Sheet reflects the reclassifications affecting total current assets, total assets, total current liabilities and total liabilities. The reclassifications did not have a significant impact on Chemours' financial position and had no impact on its results of operations or cash flows. See Note 8 for additional information. In June 2015, the FASB issued ASU No. 2015-11, "Inventory (Topic 330), Simplifying the Measurement of Inventory," which requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Currently, the inventory standard requires an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The amendment does not apply to inventory that is measured using LIFO or the retail inventory method but applies to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. The amendment is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. Chemours is currently evaluating the impact of adopting this guidance. In May 2015, the FASB issued ASU No. 2015-07, "Fair Value Measurement (Topic 820) - Disclosures for Investment in Certain Entities that Calculate Net Asset Value per Share or its Equivalent." This guidance removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The guidance also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The amendment is effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. A reporting entity should apply the amendments retrospectively to all periods presented and earlier application is permitted. Chemours adopted this guidance effective January 1, 2016. The adoption is not expected to have a significant impact on our financial position and results of operations. In April 2015, the FASB issued ASU No. 2015-05, "Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement," which provides guidance about whether a cloud computing arrangement includes a software license. The customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If the cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This guidance is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015, and early adoption is permitted. Chemours adopted this guidance effective January 1, 2016. The adoption is not expected to have a significant impact on our financial position and results of operations. In April 2015, the FASB issued ASU No. 2015-03, “Interest — Imputation of Interest (Subtopic 835-30),” which requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The guidance is effective for public entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015 with early adoption permitted, including adoption in an interim period. Chemours adopted this guidance for the quarter ending June 30, 2015. The adoption of this standard had no impact on Chemours’ results of operations or cash flows. Due to the accounting change described above, Chemours recorded debt issuance costs incurred for the issuance of its senior secured term loans and senior unsecured notes as a reduction of the liability on the Consolidated Balance Sheets. See Note 18 for additional information. In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” The amendments modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities and eliminate the presumption that a general partner should consolidate a limited partnership. The amendment is effective for public entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Chemours adopted this guidance effective January 1, 2016. The adoption is not expected to have a significant impact on our financial position and results of operations. In May 2014, the FASB and the International Accounting Standards Board (IASB) jointly issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," which clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting Standards (IFRS). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance is effective for public entities for annual and interim periods beginning after December 15, 2016 (original effective date). In July 2015, the FASB approved a deferral of the effective date of this guidance to provide entities with adequate time to effectively implement the new revenue standard and adoption as of the original effective date is permitted. The Company is currently evaluating the impact of adopting this guidance on its financial position and results of operations. In April 2014, the FASB issued ASU No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” amending existing requirements for reporting discontinued operations and disposals of components of an entity. The amended guidance limits the discontinued operations reporting to disposal transactions that represent strategic shifts having a major effect on operations and financial results. The amendment also enhances disclosures and requires assets and liabilities of a discontinued operation to be classified as such for all periods presented in the financial statements. Chemours adopted this guidance effective on January 1, 2015. Due to the change in requirements for reporting discontinued operations described above, presentation and disclosures of future disposal transactions after adoption may be different than under current standards. |
Relationship with DuPont and 37
Relationship with DuPont and Related Entities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Related party sales to DuPont include the following amounts: Year Ended December 31, Selling Segment 2015 2014 2013 Titanium Technologies $ 2 (1) $ — $ 6 Fluoroproducts 34 (1) 45 37 Chemical Solutions 21 (1) 65 78 Total $ 57 $ 110 $ 121 (1) Subsequent to the spin-off on July 1, 2015, transactions with DuPont businesses were not considered related party transactions. Allocated leveraged functional service expenses and general corporate expenses were recorded in the Consolidated Statements of Operations within the following captions: Year Ended December 31, 2015 2014 2013 Selling, general and administrative expense $ 205 (1) $ 411 $ 436 Research and development expense 10 (1) 49 50 Cost of goods sold 23 (1) 32 33 Total $ 238 $ 492 $ 519 (1) Subsequent to the spin-off on July 1, 2015, transactions with DuPont businesses were not considered related party transactions. Accordingly, no costs were allocated after the July 1, 2015 spin-off date. |
Employee Separation and Asset38
Employee Separation and Asset Related Charges, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Program | For the years ended December 31, 2015, 2014 and 2013, Chemours recorded charges for employee separation and asset related charges as follows: Year Ended December 31, 2015 2014 2013 Employee Separation Charges $ 137 $ 18 $ 2 Asset Related Charges–Restructuring 133 3 — Asset Related Charges–Impairment (1) 48 — — Decommissioning and other charges–Restructuring 15 — — Total $ 333 $ 21 $ 2 (1) See Note 12 for further information. |
Schedule of Restructuring Charges | The charges related to our programs and impairments impacted segment earnings for the years ended December 31, 2015 and 2014 as follows: Titanium Fluoroproducts Chemical Total Year ended December 31, 2015 Titanium Technologies plant closures $ 140 $ — $ — $ 140 Fluoroproducts restructuring and other asset impairment — 24 — 24 RMS plant closure — — 57 57 2015 Restructuring 33 54 25 112 (1) $ 173 $ 78 $ 82 $ 333 Year ended December 31, 2014 2014 Restructuring $ 3 $ 16 $ — $ 19 (1) Includes approximately $24 related to corporate overhead functions that was allocated to our segments. The following table shows the change in our significant liability account balances. Titanium Chemical 2015 2014 Total Balance as of December 31, 2013 $ — $ — $ — $ — $ — Charges to income for the year ended December 31, 2014 — — — 16 16 Charges to liability accounts: Payments — — — (2 ) (2 ) Net currency translation adjustment — — — (2 ) (2 ) Balance as of December 31, 2014 — — — 12 12 Charges to income for the year ended December 31, 2015 11 12 112 — 135 Charges to liability accounts: Payments — — (39 ) (11 ) (50 ) Net currency translation adjustment (1) — — — — — Balance as of December 31, 2015 $ 11 $ 12 $ 73 $ 1 $ 97 (1) Net currency translation adjustment for the year ended December 31, 2015 was less than $1. |
Other Income, Net (Tables)
Other Income, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income | Year Ended December 31, 2015 2014 2013 Leasing, contract services and miscellaneous income $ 25 $ 17 $ 24 Royalty income (1) 19 28 24 Gain on purchase of equity method investment — — 7 (Loss) gain on sale of assets and businesses (2) (9 ) 40 — Exchange gains (losses), net (3) 19 (66 ) (31 ) Total other income, net $ 54 $ 19 $ 24 (1) Royalty income is primarily for technology and trademark licensing. (2) In 2015, the Company sold its subsidiary in Sweden for proceeds of $4 that resulted in a loss on sale of $9 in the Fluoroproducts segment. In 2014, the gain of $40 includes gains on sales of businesses of $30 and $4 in the Fluoroproducts and Titanium Technologies segments, respectively. The remaining $6 related to gain on other sale of assets in the Fluoroproducts segment. (3) Chemours uses foreign currency forward contracts to offset its net exposure, by currency, related to its non-functional currency-denominated monetary assets and liabilities. See Note 20 for further information. The pre-tax exchange gains are recorded in other income, net and the related tax impact is recorded in provision for income taxes in the Consolidated Statements of Operations. The $19 net exchange gain for the year ended December 31, 2015 includes a gain on derivatives of $42, partially offset by a $23 pre-tax exchange loss on non-functional monetary assets and liabilities as a result of the strengthening of the U.S. dollar against the Mexican peso, Euro, Thai baht, Chinese yuan and other currencies. Exchange losses in 2014 and 2013, respectively, were primarily driven by the strengthening of the U.S. Dollar versus the Swiss franc and the Euro in 2014, and a strengthening of the U.S. dollar versus the Venezuelan bolivar and the Brazilian real in 2013. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision | Year Ended December 31, 2015 2014 2013 Current tax expense: U.S. federal $ 37 (1) $ 85 $ 67 U.S. state and local 1 (1) 13 11 International 62 73 88 Total current tax expense 100 171 166 Deferred tax (benefit) expense: U.S. federal (187 ) (20 ) (4 ) U.S. state and local (14 ) (3 ) (2 ) International 3 1 (8 ) Total deferred tax benefit (198 ) (22 ) (14 ) Total (benefit from) provision for income taxes $ (98 ) $ 149 $ 152 (1) Recorded pursuant to the tax matters agreement. |
Schedule of Deferred Tax Assets and Liabilities Components | The significant components of deferred tax assets and liabilities are as follows: December 31, December 31, Deferred tax assets – noncurrent: Other assets and other accrued liabilities $ 257 $ 188 Tax loss carryforwards 124 36 Total deferred tax assets – noncurrent 381 224 Valuation allowance — (36 ) Total deferred tax assets, net 381 188 Deferred tax liabilities – noncurrent: Goodwill and other intangibles — (2 ) Accrued expenses and other liabilities (7 ) (34 ) Property, plant and equipment (530 ) (533 ) Inventories and other assets (31 ) (33 ) Total deferred tax liabilities – noncurrent (568 ) (602 ) Net deferred tax liability $ (187 ) $ (414 ) |
Schedule of Effective Income Tax Rate | An analysis of the Company’s effective tax rate is as follows Year Ended December 31, 2015 2014 2013 Statutory U.S. federal income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 5.1 % 1.0 % 1.0 % Benefit from (lower effective tax rate) on international operations – net 12.0 % (9.6 )% (10.2 )% Valuation allowance — % 2.0 % 1.2 % Exchange (gains) losses 0.5 % 2.7 % 2.3 % Depletion 3.4 % (3.9 )% (4.1 )% Goodwill (3.2 )% — % — % Section 199 deduction — % (0.7 )% (0.8 )% Other, net (0.5 )% 0.6 % 2.0 % Total effective tax rate 52.3 % 27.1 % 26.4 % |
Schedule of Income before Income Taxes | (Loss) income before income taxes for U.S. and international operations was: Year Ended December 31, (Dollars in millions) 2015 2014 2013 U.S. (including exports) $ (492 ) $ 244 $ 224 International 304 306 352 Total pre-tax (loss) income $ (188 ) $ 550 $ 576 |
Schedule of Unrecognized Tax Benefits | The following table shows the change in our unrecognized tax benefit. Year Ended December 31, 2015 2014 2013 Total unrecognized tax benefits as of January 1 $ 39 $ 26 $ 24 Gross amounts of decreases in unrecognized tax benefits as a result of adjustments to tax provisions taken during the prior period — (1 ) (1 ) Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken during the current period — 15 5 Reduction to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations (32 ) (1) (1 ) (2 ) Total unrecognized tax benefits as of December 31 $ 7 $ 39 $ 26 Total unrecognized tax benefits, if recognized, that would impact the effective tax rate $ — $ 39 $ 26 Total amount of interest and penalties recognized in the Consolidated Statements of Operations 1 (1) 2 2 Total amount of interest and penalties recognized in the Consolidated Balance Sheets — 8 6 (1) Recorded pursuant to the tax matters agreement. |
Summary of Deferred Tax Asset Valuation Allowance | The following is a rollforward of the deferred tax asset valuation allowance for the years ended December 31, 2015, 2014 and 2013. Year Ended December 31, 2015 2014 2013 Balance at beginning of period $ 36 $ 26 $ 19 Net charges to income tax expense — 10 7 Release of valuation allowance (1) (36 ) — — Balance at end of period $ — $ 36 $ 26 (1) Release of valuation allowance during 2015 was primarily related to the tax attributes retained by DuPont pursuant to the tax matters agreement. |
Earnings Per Share of Common 41
Earnings Per Share of Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The table below shows a reconciliation of the numerator and denominator for basic and diluted earnings per share calculations for the periods indicated. Year Ended December 31, 2015 2014 2013 Numerator: Net (loss) income attributable to Chemours $ (90 ) $ 400 $ 423 Denominator: Weighted-average number of common shares outstanding–Basic 180,993,623 180,966,833 (1) 180,966,833 (1) Dilutive effect of the Company’s employee compensation plans (2) — — — Weighted average number of common shares outstanding–Diluted (2) 180,993,623 180,966,833 180,966,833 (1) For 2013 and 2014, pro forma earnings per share (EPS) was calculated based on 180,966,833 shares of Chemours common stock that were distributed to DuPont shareholders on July 1, 2015. (2) Diluted (loss) earnings per share is calculated using net (loss) income available to common shareholders divided by diluted weighted-average shares of common shares outstanding during each period, which includes unvested restricted shares. Diluted earnings per share considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an antidilutive effect. Chemours had no equity awards outstanding prior to the spin-off. |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following average number of stock options were antidilutive and, therefore, were not included in the diluted earnings per share calculation: Year Ended December 31, 2015 2014 2013 Average number of stock options 8,358,894 — — |
Accounts and Notes Receivable42
Accounts and Notes Receivable - Trade, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | December 31, December 31, Accounts receivable–trade, net (1) $ 757 $ 746 VAT, GST and other taxes (2) 68 62 Leases receivable–current 13 12 Other receivables (3) 21 26 Total $ 859 $ 846 (1) Accounts receivable–trade is net of allowances of $4 and $4 as of December 31, 2015 and 2014, respectively. Allowances are equal to the estimated uncollectible amounts. (2) Value Added Tax (VAT) and Goods and Services Tax (GST). (3) Other receivables consist of notes receivable, advances and other deposits. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory, Net [Abstract] | |
Schedule of Inventories | December 31, 2015 December 31, 2014 Finished products $ 613 $ 611 Semi-finished products 172 173 Raw materials, stores and supplies 433 521 Subtotal 1,218 1,305 Adjustment of inventories to LIFO basis (246 ) (253 ) Total $ 972 $ 1,052 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Summary of property, plant and equipment | Chemours' property, plant and equipment consisted of: December 31, 2015 December 31, 2014 Equipment $ 7,327 $ 7,500 Buildings 737 778 Construction in progress 804 852 Land 111 116 Mineral rights 36 36 Total 9,015 9,282 Accumulated depreciation (5,838 ) (5,974 ) Net property, plant and equipment $ 3,177 $ 3,308 |
Goodwill and Other Intangible45
Goodwill and Other Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes changes in the carrying amount of goodwill by reportable segment: Titanium Technologies Fluoroproducts Chemical Solutions Total Balance as of December 31, 2013 $ 13 $ 85 $ 100 $ 198 Impairment charge — — — — Other adjustments — — — — Balance as of December 31, 2014 13 85 100 198 Impairment charge — — (25 ) (25 ) Other adjustments — — (7 ) (7 ) Balance as of December 31, 2015 $ 13 $ 85 $ 68 $ 166 |
Schedule of Other Intangible Assets | The following table summarizes the gross carrying amounts and accumulated amortization of other intangible assets by major class: December 31, 2015 December 31, 2014 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer lists $ 13 $ (10 ) $ 3 $ 13 $ (10 ) $ 3 Patents 19 (17 ) 2 19 (15 ) 4 Purchased trademarks 5 (2 ) 3 5 (1 ) 4 Purchased and licensed technology 8 (6 ) 2 5 (5 ) — Total $ 45 $ (35 ) $ 10 $ 42 $ (31 ) $ 11 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | December 31, December 31, Leases receivable–non-current (1) $ 125 $ 137 Capitalized repair and maintenance costs 149 185 Pension assets (2) 138 — Advances and deposits 11 17 Deferred income taxes 47 10 Miscellaneous (3) 38 28 Total $ 508 $ 377 (1) Leases receivable includes direct financing leases of property at two locations. See Note 10 for further information. (2) Pension assets represent pension plans commencing in 2015. See Note 21 for further information. (3) Miscellaneous includes prepaid expenses for royalty fees, vendor supply agreements and taxes other than income taxes, deferred financing fees related to the Revolving Credit Facility of $19 at December 31, 2015, as well as capitalized expenses for the preparation of future landfill cells at Titanium Technologies’ New Johnsonville plant site. |
Accounts Payable (Tables)
Accounts Payable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable | December 31, 2015 December 31, 2014 Trade payables $ 945 $ 1,004 VAT and other payables 28 42 Total $ 973 $ 1,046 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Other Accrued Liabilities | December 31, December 31, Compensation and other employee-related costs $ 109 $ 109 Employee separation costs (1) 76 12 Accrued litigation (2) 11 7 Environmental remediation (2) 68 69 Income taxes 32 — Customer rebates 53 59 Deferred revenue 20 28 Accrued interest 21 — Miscellaneous (3) 64 68 Total $ 454 $ 352 (1) See Note 6 for further information. (2) See Note 19 for further discussion of environmental remediation and accrued litigation. (3) Miscellaneous primarily includes accrued utility expenses, property taxes, an accrued indemnification liability and other miscellaneous expenses. |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Liabilities | December 31, December 31, Environmental remediation (1) $ 223 $ 226 Employee-related costs (2) 108 32 Employee separation costs (3) 23 — Accrued litigation (1) 58 52 Asset retirement obligations (1) 41 43 Deferred revenue 11 13 Miscellaneous (4) 89 98 Total $ 553 $ 464 (1) See Note 19 for further details on environmental remediation, asset retirement obligations and accrued litigation. (2) See Note 21 for further details on long-term employee benefits. (3) See Note 6 for further information. (4) Miscellaneous primarily includes an accrued indemnification liability. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt, net of an unamortized discount on the Term Loan Facility of $7 , was comprised of the following at December 31, 2015 : December 31, 2015 Long-term debt: Senior secured term loan, net of issue discount $ 1,493 Senior unsecured notes: 6.625%, due May 2023 1,350 7.00%, due May 2025 750 6.125%, due May 2023 (€360) 395 Other 26 Total 4,014 Less: Unamortized debt issuance costs 60 Less: Short-term borrowings and current maturities 39 Total long-term debt $ 3,915 |
Commitments and Contingent Li51
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of the changes in asset retirement obligations | A summary of the changes in asset retirement obligations is as follows: Year Ended December 31, 2015 2014 Beginning balance $ 43 $ 42 Accretion expense 1 2 Additional liabilities incurred — 1 Changes in estimated cash flows — — Settlements/payments (2 ) (2 ) Ending balance $ 42 $ 43 Current portion $ 1 $ — Non-current portion $ 41 $ 43 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Assets at Fair Value | The table below presents the fair value of Chemours’ derivative assets and liabilities within the fair value hierarchy, as described in Note 3 to the Consolidated Financial Statements. Fair Value Using Level 2 Inputs Balance Sheet Location December 31, 2015 December 31, 2014 Asset derivatives: Foreign currency forward contracts Accounts and notes receivable - trade, net $ 2 $ — Total asset derivatives $ 2 $ — Liability derivatives: Foreign currency forward contracts Other accrued liabilities $ 2 $ — Total liability derivatives $ 2 $ — |
Schedule of Derivative Liabilities at Fair Value | The table below presents the fair value of Chemours’ derivative assets and liabilities within the fair value hierarchy, as described in Note 3 to the Consolidated Financial Statements. Fair Value Using Level 2 Inputs Balance Sheet Location December 31, 2015 December 31, 2014 Asset derivatives: Foreign currency forward contracts Accounts and notes receivable - trade, net $ 2 $ — Total asset derivatives $ 2 $ — Liability derivatives: Foreign currency forward contracts Other accrued liabilities $ 2 $ — Total liability derivatives $ 2 $ — |
Long-Term Employee Benefits (Ta
Long-Term Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |
Schedule of Multiemployer Plans | The following table presents the multi-employer pension expense allocated by DuPont to Chemours for the plans in which Chemours participated prior to the separation. The allocation of cost was based on active employee headcount and is included in the Consolidated Statement of Operations. These amounts do not represent cash payments to DuPont or DuPont’s plans. EIN / Pension Year Ended December 31, Plan Name Number 2015 2014 2013 DuPont Pension and Retirement Plan (U.S.) 51-0014090/001 $ 48 $ 51 $ 126 All other U.S. and non-U.S. Plans 5 (1 ) 38 |
Schedules of Net Periodic Benefit Cost | The net periodic benefit costs for the pension and amounts recognized in other comprehensive income for the year ended December 31, 2015 were as follows: Year Ended December 31, 2015 Net periodic pension cost (income): Service cost $ 16 Interest cost 19 Expected return on plan assets (83 ) Amortization of loss 16 Amortization of prior service cost 4 Net periodic pension income $ (28 ) Changes in plan assets and benefit obligations recognized in other comprehensive income: Net loss $ 11 Amortization of loss (16 ) Prior service credit (24 ) Amortization of prior service cost (4 ) Effect of foreign exchange rates (33 ) Total benefit recognized in other comprehensive income $ (66 ) Total recognized in net periodic pension income and other comprehensive income $ (94 ) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | The pre-tax amounts recognized in accumulated other comprehensive loss are summarized below: December 31, 2015 Net loss $ 363 Prior service credit (16 ) Total amount recognized in accumulated other comprehensive loss $ 347 Year Ended December 31, 2015 Net periodic pension cost (income): Service cost $ 16 Interest cost 19 Expected return on plan assets (83 ) Amortization of loss 16 Amortization of prior service cost 4 Net periodic pension income $ (28 ) Changes in plan assets and benefit obligations recognized in other comprehensive income: Net loss $ 11 Amortization of loss (16 ) Prior service credit (24 ) Amortization of prior service cost (4 ) Effect of foreign exchange rates (33 ) Total benefit recognized in other comprehensive income $ (66 ) Total recognized in net periodic pension income and other comprehensive income $ (94 ) |
Summary of Benefit Obligations and Fair Value of Plan Assets and Funded Status of Plan | Summarized information on the Company's pension benefit plans is as follows: Year Ended December 31, 2015 Change in benefit obligation Benefit obligation at beginning of year $ — Assumption and establishment of pension plans 1,332 Service cost 16 Interest cost 19 Plan participants' contributions 2 Actuarial loss (gain) (76 ) Benefits paid (39 ) Plan Amendments (24 ) Settlements & Transfers (6 ) Currency translation (118 ) Benefit obligation at end of year 1,106 Change in plan assets Fair value of plan assets at beginning of year — Assumption and establishment of pension plans 1,297 Actual loss on plan assets (7 ) Employer contributions 16 Plan participants' contributions 2 Benefits paid (39 ) Settlements & Transfers (6 ) Currency translation (123 ) Fair value of plan assets at end of year 1,140 Funded status at end of year $ 34 |
Schedule of Amounts Recognized in the Consolidated Balance Sheet | The net amounts recognized in the Consolidated Balance Sheet as of December 31, 2015 consist of: Noncurrent assets $ 138 Current liabilities (2 ) Noncurrent liabilities (102 ) Net amount recognized $ 34 |
Schedule of Projected Benefit Obligations in Excess of Fair Value of Plan Assets | The following information relates to pension plans with projected and accumulated benefit obligations in excess of the fair value of plan assets at December 31, 2015: Information for pension plans with projected benefit obligation in excess of plan assets December 31, 2015 Projected benefit obligation $ 194 Accumulated benefit obligation 158 Fair value of plan assets 93 Information for pension plans with accumulated benefit obligations in excess of plan assets December 31, 2015 Projected benefit obligation $ 190 Accumulated benefit obligation 157 Fair value of plan assets 90 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The following information relates to pension plans with projected and accumulated benefit obligations in excess of the fair value of plan assets at December 31, 2015: Information for pension plans with projected benefit obligation in excess of plan assets December 31, 2015 Projected benefit obligation $ 194 Accumulated benefit obligation 158 Fair value of plan assets 93 Information for pension plans with accumulated benefit obligations in excess of plan assets December 31, 2015 Projected benefit obligation $ 190 Accumulated benefit obligation 157 Fair value of plan assets 90 |
Schedule of Assumptions Used | The following assumptions have been used to determine the benefit obligations and net benefit cost: Weighted average assumptions used to determine benefit obligations and benefit cost Pension Benefit Pension Income for Discount rate 2.4 % 1.7 % Rate of compensation increase (1) 2.6 % 3.9 % Expected return on plan assets N/A 7.2 % (1) The rate of compensation increase represents the single annual effective salary increase that an average plan participant would receive during the participant’s entire career at Chemours. |
Schedule of Allocation of Plan Assets | The weighted average target allocation for Chemours’ pension plan assets is summarized as follows: December 31, Cash and cash equivalents 2.7 % U.S. and non-U.S. equity securities 42.3 % Fixed income securities 55.0 % Total 100.0 % The table below presents the fair values of Chemours’ pension assets by level within the fair value hierarchy, as described in Note 3, as of December 31, 2015. Total Level 1 Level 2 Asset Category: Debt–government issued $ 465 $ 7 $ 458 Debt–corporate issued 148 60 88 Debt–asset backed 33 — 33 U.S. and non-U.S. equities 460 37 423 Derivatives–asset position 4 — 4 Derivatives–liability position (16 ) — (16 ) Cash and cash equivalents 40 40 — Other 6 4 2 1,140 $ 148 $ 992 Pension trust payables (1) (3 ) Total $ 1,137 (1) Payables are primarily for investment securities purchased. |
Schedule of Expected Benefit Payments | The following benefit payments are expected to be paid over the next five years and the five years thereafter as of December 31, 2015: 2016 $ 42 2017 45 2018 44 2019 47 2020 47 2021 - 2025 250 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Options Valuation Assumptions | The fair value related to stock options granted was determined using Black-Scholes option pricing model and the assumptions shown in the table below: Year Ended December 31, 2015 Risk-free interest rate 1.5 % Expected term (years) 5.4 Volatility 42.0 % Dividend yield 6.9 % Fair value per stock option $ 3.17 |
Schedule of Stock Options Activity | The following table summarizes Chemours stock option activity for the year ended December 31, 2015. Number of Shares (in thousands) Weighted Average Exercise Price (per share) Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding, December 31, 2014 — N/A Converted on July 1, 2015 7,794 $ 14.56 Granted 662 16.04 Exercised (22 ) 5.82 Forfeited (150 ) 17.20 Expired — N/A Outstanding, December 31, 2015 8,284 $ 14.66 4.82 $ — Exercisable, December 31, 2015 5,595 $ 13.79 4.21 $ — |
Schedule of Restricted Stock Units Activity | Non-vested awards of RSUs, both with and without performance feature, as of December 31, 2015 are shown below. The weighted-average grant-date fair value of RSUs granted and converted during 2015 was $14.94 . Number of Shares (in thousands) Weighted Average Grant Date Fair Value (per share) Nonvested, December 31, 2014 — $ — Converted on July 1, 2015 1,431 16.00 Granted 1,065 13.50 Vested (133 ) 16.00 Forfeited (14 ) 16.00 Nonvested, December 31, 2015 2,349 14.87 |
Geographic and Segment Inform55
Geographic and Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segments, Geographical Areas [Abstract] | |
Schedule of Net Sales and Net Property, Plant and Equipment by Geographical Area | For and As of the Year Ended December 31, 2015 2014 2013 Net Sales (1) Net Property, Net Sales (1) Net Property, Net Sales (1) Net Property, North America (2) $ 2,570 $ 2,184 $ 2,759 $ 2,273 $ 3,138 $ 2,183 Asia Pacific 1,393 136 1,548 140 1,519 138 EMEA (3) 977 308 1,190 372 1,237 321 Latin America (4) 777 549 935 523 965 330 Total $ 5,717 $ 3,177 $ 6,432 $ 3,308 $ 6,859 $ 2,972 (1) Net sales are attributed to countries based on customer location. (2) Includes net sales in Canada of $140, $147 and $145 in 2015, 2014 and 2013, respectively. Also includes net property, plant and equipment in Canada of $13, $14 and $13 in 2015, 2014 and 2013, respectively. (3) EMEA includes Europe, Middle East and Africa. (4) Latin America includes Mexico. |
Schedule of Segment Information | The tables presented below reflect the reclassification of certain corporate costs, certain legal and environmental expenses that are not aligned with our reportable segments, and foreign exchange gains and losses from our reportable segments into Corporate and Other. All periods presented reflect the current definition of Adjusted EBITDA. Titanium Fluoroproducts Chemical Corporate Total Year Ended December 31, 2015 Net sales $ 2,392 $ 2,230 $ 1,095 $ — $ 5,717 Adjusted EBITDA 326 300 29 (82 ) 573 Depreciation and amortization 125 88 52 2 267 Equity in earnings of affiliates — 21 — 1 22 Net assets 1,659 1,567 839 (3,935 ) 130 Investments in affiliates — 127 — 9 136 Purchases of plant, property and equipment 255 142 117 5 519 2014 Net sales $ 2,937 $ 2,327 $ 1,168 $ — $ 6,432 Adjusted EBITDA 723 282 17 (146 ) 876 Depreciation and amortization 125 83 48 1 257 Equity in earnings of affiliates — 20 — — 20 Net assets 1,748 1,480 782 (337 ) 3,673 Investments in affiliates — 124 — — 124 Purchases of plant, property and equipment 365 133 106 — 604 2013 Net sales $ 3,019 $ 2,379 $ 1,461 $ — $ 6,859 Adjusted EBITDA 726 395 101 (238 ) 984 Depreciation and amortization 117 90 53 1 261 Equity in earnings of affiliates — 22 — — 22 Net assets 1,390 1,387 734 (294 ) 3,217 Investments in affiliates — 123 — — 123 Purchases of plant, property and equipment 290 96 52 — 438 |
Reconciliation of EBITDA from Segments to Consolidated | Total Adjusted EBITDA reconciles to total consolidated net (loss) income in the Consolidated Statements of Operations as follows: Year Ended December 31, 2015 2014 2013 Total Adjusted EBITDA $ 573 $ 876 $ 984 Interest (132 ) — — Depreciation and amortization (267 ) (257 ) (261 ) Non-operating pension and other post-retirement employee benefit costs 3 (22 ) (114 ) Exchange gains (losses) 19 (66 ) (31 ) Asset impairments (73 ) — — Restructuring charges (285 ) (21 ) (2 ) Transaction, legal and other charges (17 ) — — (Loss) gain on sale of assets and businesses (9 ) 40 — (Loss) income before income taxes (188 ) 550 576 (Benefit from) provision for income taxes (98 ) 149 152 Net (loss) income $ (90 ) $ 401 $ 424 |
Accumulated Other Comprehensi56
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss), net of income taxes, consisted of: Currency Net Employee Total Balance at December 31, 2012 $ 19 $ — $ — $ 19 Other comprehensive income (loss) — — — — Balance at December 31, 2013 19 — — 19 Other comprehensive income (loss) — — — — Balance at December 31, 2014 19 — — 19 Assumption and establishment of pension plans, net — — (311 ) (311 ) Other comprehensive income (loss) (304 ) 8 52 (244 ) Balance at December 31, 2015 $ (285 ) $ 8 $ (259 ) $ (536 ) |
Quarterly Financial Data (Una57
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | The following is a summary of the quarterly results of operations for the years ended December 31, 2015 and 2014. For the three months ended 2015 March 31 June 30 September 30 December 31 Full Year Net sales $ 1,363 $ 1,508 $ 1,486 $ 1,360 $ 5,717 Cost of goods sold 1,111 1,282 1,222 1,147 4,762 Income (loss) before income taxes 58 (18 ) (107 ) (121 ) (188 ) Net income (loss) 43 (18 ) (29 ) (86 ) (90 ) Net income (loss) attributable to Chemours 43 (18 ) (29 ) (86 ) (90 ) Basic earnings (loss) per share (1) 0.24 (0.10 ) (0.16 ) (0.48 ) (0.50 ) Diluted earnings (loss) per share (1) 0.24 (0.10 ) (0.16 ) (0.48 ) (0.50 ) For the three months ended 2014 March 31 June 30 September 30 December 31 Full Year Net sales $ 1,569 $ 1,682 $ 1,632 $ 1,549 $ 6,432 Cost of goods sold 1,240 1,311 1,273 1,248 5,072 Income before income taxes 132 155 143 120 550 Net income 98 116 108 79 401 Net income attributable to Chemours 98 116 107 79 400 Basic earnings per share (1) 0.54 0.64 0.59 0.44 2.21 Diluted earnings per share (1) 0.54 0.64 0.59 0.44 2.21 (1) On July 1, 2015, E. I. du Pont de Nemours and Company distributed 180,966,833 shares of Chemours’ common stock to holders of its common stock. Basic and diluted earnings (loss) per common share for all periods prior to July 1, 2015 were calculated using the shares distributed on July 1, 2015. Refer to Note 9 for information regarding the calculation of basic and diluted earnings per share. |
Guarantor Condensed Consolida58
Guarantor Condensed Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of impact of revisions | Condensed Consolidating Statements of Comprehensive (Loss) Income: Parent Guarantor Non-Guarantor Eliminations and As As As As As As As As Year Ended December 31, 2015 Net sales $ — $ — $ 4,067 $ 4,044 $ 3,200 $ 3,269 $ (1,550 ) $ (1,596 ) Cost of goods sold — — 4,123 3,708 2,246 2,650 (1,607 ) (1,596 ) Gross (loss) profit — — (56 ) 336 954 619 57 — Selling, general and administrative expense 15 15 460 426 170 204 (13 ) (13 ) Equity in earnings of subsidiaries (15 ) (47 ) — — — — 15 47 Interest expense and other income, net (106 ) (74 ) 192 91 (107 ) (75 ) (57 ) (20 ) (Loss) income before income taxes (136 ) (136 ) (734 ) (413 ) 654 321 28 40 (Benefit from) provision for income taxes (46 ) (46 ) (114 ) (89 ) 54 40 8 (3 ) Net (loss) income (90 ) (90 ) (620 ) (324 ) 600 281 20 43 Comprehensive (loss) income attributable to Chemours (82 ) (82 ) (620 ) (324 ) 348 29 20 43 Condensed Consolidating Statements of Cash Flows: Parent Guarantor Non-Guarantor Eliminations and As As As As As As As As Year Ended December 31, 2015 Cash flows from operating activities $ (119 ) $ (119 ) $ (125 ) $ 171 $ 440 $ 121 $ (14 ) $ 9 Cash flows from investing activities — — (446 ) (446 ) (253 ) (253 ) 202 202 Cash flows from financing activities 119 119 666 370 90 409 (188 ) (211 ) |
Schedule of condensed consolidating statements of comprehensive (loss) Income | Condensed Consolidating Statements of Comprehensive (Loss) Income Year Ended December 31, 2015 Parent Issuer Guarantor Non-Guarantor Eliminations Consolidated Net sales $ — $ 4,044 $ 3,269 $ (1,596 ) $ 5,717 Cost of goods sold — 3,708 2,650 (1,596 ) 4,762 Gross (loss) profit — 336 619 — 955 Selling, general and administrative expense 15 426 204 (13 ) 632 Research and development expense — 95 2 — 97 Employee separation and asset related charges, — 295 38 — 333 Goodwill impairment — 25 — — 25 Total expenses 15 841 244 (13 ) 1,087 Equity in earnings of affiliates — 1 21 — 22 Equity in net loss of subsidiaries (47 ) — — 47 — Interest expense, net (131 ) (1 ) — — (132 ) Intercompany interest income (expense), net 44 — (44 ) — — Other income (loss), net 13 92 (31 ) (20 ) 54 (Loss) income before income taxes (136 ) (413 ) 321 40 (188 ) (Benefit from) provision for income taxes (46 ) (89 ) 40 (3 ) (98 ) Net (loss) income (90 ) (324 ) 281 43 (90 ) Less: Net income attributable to noncontrolling interests — — — — — Net (loss) income attributable to Chemours $ (90 ) $ (324 ) $ 281 $ 43 $ (90 ) Comprehensive (loss) income attributable to Chemours $ (82 ) $ (324 ) $ 29 $ 43 $ (334 ) Condensed Consolidating Statements of Comprehensive Income Year Ended December 31, 2014 Parent Issuer Guarantor Non-Guarantor Eliminations Consolidated Net sales $ — $ 4,593 $ 3,722 $ (1,883 ) $ 6,432 Cost of goods sold — 3,863 3,093 (1,884 ) 5,072 Gross profit — 730 629 1 1,360 Selling, general and administrative expense — 429 256 — 685 Research and development expense — 127 16 — 143 Employee separation and asset related charges, net — 11 10 — 21 Total expenses — 567 282 — 849 Equity in earnings of affiliates — — 20 — 20 Equity in earnings of subsidiaries 400 — — (400 ) — Other income (expense), net — 80 (61 ) — 19 Income before income taxes 400 243 306 (399 ) 550 Provision for income taxes — 75 76 (2 ) 149 Net income 400 168 230 (397 ) 401 Less: Net income attributable to noncontrolling interests — — 1 — 1 Net income attributable to Chemours $ 400 $ 168 $ 229 $ (397 ) $ 400 Comprehensive income attributable to Chemours $ 400 $ 168 $ 229 $ (397 ) $ 400 Condensed Consolidating Statements of Comprehensive Income Year Ended December 31, 2013 Parent Issuer Guarantor Non-Guarantor Eliminations Consolidated Net sales $ — $ 5,066 $ 3,690 $ (1,897 ) $ 6,859 Cost of goods sold — 4,250 3,053 (1,908 ) 5,395 Gross profit — 816 637 11 1,464 Selling, general and administrative expense — 492 276 — 768 Research and development expense — 147 17 — 164 Employee separation and asset related charges, net — — 2 — 2 Total expenses — 639 295 — 934 Equity in earnings of affiliates — — 22 — 22 Other income (expense), net — 48 (24 ) — 24 Income before income taxes — 225 340 11 576 Provision for income taxes — 72 77 3 152 Net income — 153 263 8 424 Less: Net income attributable to noncontrolling interests — — 1 — 1 Net income attributable to Chemours $ — $ 153 $ 262 $ 8 $ 423 Comprehensive income attributable to Chemours $ — $ 153 $ 262 $ 8 $ 423 |
Schedule of condensed consolidating balance sheets | Condensed Consolidating Balance Sheets Year Ended December 31, 2015 Parent Issuer Guarantor Non-Guarantor Eliminations Consolidated Assets Current assets: Cash $ — $ 95 $ 271 $ — $ 366 Accounts and notes receivable–trade, — 344 515 — 859 Intercompany receivable 3 459 54 (516 ) — Inventories — 493 501 (22 ) 972 Prepaid expenses and other — 49 52 3 104 Total current assets 3 1,440 1,393 (535 ) 2,301 Property, plant and equipment — 7,070 1,945 — 9,015 Less: Accumulated depreciation — (4,899 ) (939 ) — (5,838 ) Net property, plant and equipment — 2,171 1,006 — 3,177 Goodwill — 141 25 — 166 Other intangible assets, net — 10 — — 10 Investments in affiliates — 9 127 — 136 Investment in subsidiaries 3,105 — — (3,105 ) — Intercompany notes receivable 1,150 — — (1,150 ) — Other assets 19 275 214 — 508 Total assets $ 4,277 $ 4,046 $ 2,765 $ (4,790 ) $ 6,298 Liabilities and equity Current liabilities: Accounts payable $ — $ 637 $ 336 $ — $ 973 Short-term borrowings and current maturities of long-term debt 15 24 — — 39 Intercompany payable 202 54 260 (516 ) — Other accrued liabilities 21 287 146 — 454 Total current liabilities 238 1,002 742 (516 ) 1,466 Long-term debt 3,913 2 — — 3,915 Other liabilities — 456 97 — 553 Intercompany notes payable — — 1,150 (1,150 ) — Deferred income taxes — 173 61 — 234 Total liabilities 4,151 1,633 2,050 (1,666 ) 6,168 Commitments and contingent liabilities Equity Total Chemours stockholder’s equity 126 2,413 711 (3,124 ) 126 Noncontrolling interests — — 4 — 4 Total equity 126 2,413 715 (3,124 ) 130 Total liabilities and equity $ 4,277 $ 4,046 $ 2,765 $ (4,790 ) $ 6,298 Condensed Consolidating Balance Sheets Year Ended December 31, 2014 Parent Issuer Guarantor Non-Guarantor Eliminations Consolidated Assets Current assets: Cash $ — $ — $ — $ — $ — Accounts and notes receivable–trade, — 355 491 — 846 Intercompany receivable — 316 42 (358 ) — Inventories — 510 616 (74 ) 1,052 Prepaid expenses and other — 12 16 15 43 Total current assets — 1,193 1,165 (417 ) 1,941 Property, plant and equipment — 7,107 2,175 — 9,282 Less: Accumulated depreciation — (4,848 ) (1,126 ) — (5,974 ) Net property, plant and equipment — 2,259 1,049 — 3,308 Goodwill — 170 28 — 198 Other intangible assets, net — 11 — — 11 Investments in affiliates — — 124 — 124 Investments in subsidiaries 3,669 — — (3,669 ) — Other assets — 332 45 — 377 Total assets $ 3,669 $ 3,965 $ 2,411 $ (4,086 ) $ 5,959 Liabilities and equity Current liabilities: Accounts payable $ — $ 614 $ 432 $ — $ 1,046 Intercompany payable — 42 316 (358 ) — Other accrued liabilities — 248 104 — 352 Total current liabilities — 904 852 (358 ) 1,398 Other liabilities — 454 10 — 464 Deferred income taxes — 380 44 — 424 Total liabilities — 1,738 906 (358 ) 2,286 Commitments and contingent liabilities Equity Total Chemours stockholder’s equity 3,669 2,227 1,501 (3,728 ) 3,669 Noncontrolling interests — — 4 — 4 Total equity 3,669 2,227 1,505 (3,728 ) 3,673 Total liabilities and equity $ 3,669 $ 3,965 $ 2,411 $ (4,086 ) $ 5,959 |
Schedule of condensed consolidating statements of cash flows | Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2015 Parent Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating activities Cash (used for) provided by operating activities $ (119 ) $ 171 $ 121 $ 9 $ 182 Investing activities Purchases of property, plant and equipment — (292 ) (227 ) — (519 ) Proceeds from sales of assets, net — 6 6 — 12 Foreign exchange contract settlements — 42 — — 42 Investment in affiliates — — (32 ) — (32 ) Intercompany investing activities — (202 ) — 202 — Cash used for investing activities — (446 ) (253 ) 202 (497 ) Financing activities Proceeds from issuance of debt, net 3,489 2 — — 3,491 Intercompany short-term borrowings, net 202 — — (202 ) — Debt repayments (8 ) (2 ) — — (10 ) Dividends paid (105 ) — — — (105 ) Debt issuance costs (79 ) — — — (79 ) Cash provided at separation by DuPont — 87 160 — 247 Net transfers (to) from DuPont (3,380 ) 283 249 (9 ) (2,857 ) Cash provided by financing activities 119 370 409 (211 ) 687 Effect of exchange rate changes on cash — — (6 ) — (6 ) Increase in cash — 95 271 — 366 Cash at beginning of year — — — — — Cash at end of year $ — $ 95 $ 271 $ — $ 366 Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2014 Parent Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating activities Cash provided by operating activities $ — $ 302 $ 208 $ (5 ) $ 505 Investing activities Purchases of property, plant and equipment — (287 ) (317 ) — (604 ) Proceeds from sales of assets, net — 30 2 — 32 Investment in affiliates — — (8 ) — (8 ) Other investing activities — 20 — — 20 Cash used for investing activities — (237 ) (323 ) — (560 ) Financing activities Net transfers (to) from DuPont — (65 ) 115 5 55 Cash (used for) provided by financing activities — (65 ) 115 5 55 Effect of exchange rate changes on cash — — — — — Increase in cash — — — — — Cash at beginning of year — — — — — Cash at end of year $ — $ — $ — $ — $ — Year Ended December 31, 2013 Parent Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating activities Cash provided by operating activities $ — $ 388 $ 409 $ 1 $ 798 Investing activities Purchases of property, plant and equipment — (200 ) (238 ) — (438 ) Proceeds from sales of assets, net — 8 6 — 14 Cash used for investing activities — (192 ) (232 ) — (424 ) Financing activities Net transfers to DuPont — (196 ) (177 ) (1 ) (374 ) Cash used for financing activities — (196 ) (177 ) (1 ) (374 ) Effect of exchange rate changes on cash — — — — — Increase in cash — — — — — Cash at beginning of year — — — — — Cash at end of year $ — $ — $ — $ — $ — |
Background and Description of59
Background and Description of the Business (Details) | Jul. 01, 2015 | Dec. 31, 2015segmentfacility$ / shares | Jun. 23, 2015$ / shares |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 3 | ||
Number of facilities | 35 | ||
Common stock , par value (USD per share) | $ / shares | $ 0.01 | $ 0.01 | |
Spin off transaction distribution ratio | 0.2 | ||
DuPont [Member] | |||
Segment Reporting Information [Line Items] | |||
Common stock , par value (USD per share) | $ / shares | $ 0.30 | ||
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of facilities | 1 | ||
Titanium Technologies [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of facilities | 5 | ||
Fluoroproducts [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of facilities | 16 | ||
Chemical Solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of facilities | 13 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncash contribution | $ 109 |
Summary of Significant Accoun61
Summary of Significant Accounting Policies (Details) | Dec. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Percentage of LIFO inventory | 61.00% | 52.00% |
Summary of Significant Accoun62
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Equipment and Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 15 years |
Equipment and Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 25 years |
Software Development [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 5 years |
Software Development [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 7 years |
Summary of Significant Accoun63
Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets and Asset Retirement Obligations (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 5 years |
Useful life of asset retirement obligation | 2 years |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 20 years |
Useful life of asset retirement obligation | 25 years |
Relationship with DuPont and 64
Relationship with DuPont and Related Entities (Related Party Purchases and Sales) (Details) - Subsidiary of Common Parent [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Related Party Transaction [Line Items] | ||||
Related party sales | $ 57 | $ 110 | $ 121 | |
Operating Segments [Member] | Titanium Technologies [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party sales | 2 | [1] | 0 | 6 |
Operating Segments [Member] | Fluoroproducts [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party sales | 34 | [1] | 45 | 37 |
Operating Segments [Member] | Chemical Solutions [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party sales | $ 21 | [1] | $ 65 | $ 78 |
[1] | Subsequent to the spin-off on July 1, 2015, transactions with DuPont businesses were not considered related party transactions. |
Relationship with DuPont and 65
Relationship with DuPont and Related Entities (Leveraged Services and Corporate Costs) (Details) - Affiliated Entity [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Related Party Transaction [Line Items] | ||||
Expenses from transactions with related party | $ 238 | $ 492 | $ 519 | |
Selling, General and Administrative Expenses [Member] | ||||
Related Party Transaction [Line Items] | ||||
Expenses from transactions with related party | 205 | [1] | 411 | 436 |
Research and Development Expense [Member] | ||||
Related Party Transaction [Line Items] | ||||
Expenses from transactions with related party | 10 | [1] | 49 | 50 |
Cost of Goods [Member] | ||||
Related Party Transaction [Line Items] | ||||
Expenses from transactions with related party | $ 23 | [1] | $ 32 | $ 33 |
[1] | Subsequent to the spin-off on July 1, 2015, transactions with DuPont businesses were not considered related party transactions. Accordingly, no costs were allocated after the July 1, 2015 spin-off date. |
Relationship with DuPont and 66
Relationship with DuPont and Related Entities (Details) - Subsequent Event [Member] - Arrangement to Purchase Services and Materials [Member] - Affiliated Entity [Member] $ in Millions | 1 Months Ended |
Feb. 25, 2016USD ($) | |
Related Party Transaction [Line Items] | |
Amount of agreement with related party | $ 190 |
Minimum [Member] | |
Related Party Transaction [Line Items] | |
Remaining agreement term | 12 months |
Maximum [Member] | |
Related Party Transaction [Line Items] | |
Remaining agreement term | 15 months |
Research and Development Expe67
Research and Development Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Research and Development [Line Items] | |||
Research and development expense | $ 97 | $ 143 | $ 164 |
Projects Incurred by Chemours [Member] | |||
Research and Development [Line Items] | |||
Research and development expense | 87 | 94 | 114 |
Corporate Central Research and Development [Member] | |||
Research and Development [Line Items] | |||
Research and development expense | $ 10 | $ 49 | $ 50 |
Employee Separation and Asset68
Employee Separation and Asset Related Charges, Net (Charges) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring and Related Activities [Abstract] | |||
Employee Separation Charges | $ 137 | $ 18 | $ 2 |
Asset Related Charges - Restructuring | 133 | 3 | 0 |
Asset Related Charges - Impairment | 48 | 0 | 0 |
Decommissioning and other charges - Restructuring | 15 | 0 | 0 |
Employee separation and asset related charges, net | $ 333 | $ 21 | $ 2 |
Employee Separation and Asset69
Employee Separation and Asset Related Charges, Net (Narrative) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Nov. 30, 2015position | Aug. 31, 2015USD ($)production_line | Jun. 30, 2015position | Dec. 31, 2015USD ($)position | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | $ 333 | $ 21 | $ 2 | ||||
Payments for restructuring (less than) | 50 | 2 | |||||
Titanium Technologies Site Closure [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Payments for restructuring (less than) | 0 | 0 | |||||
Reactive Metals Solutions Plant (RMS) Closure [Member] | Employee separation [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | $ 12 | ||||||
Reactive Metals Solutions Plant (RMS) Closure [Member] | Contract Termination [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | 15 | ||||||
Global Restructuring Programs [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Number of positions eliminated (more than) | position | 430 | ||||||
Expected number of positions to be eliminated | position | 430 | ||||||
Global Restructuring Programs [Member] | Employee separation [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | $ 48 | 64 | |||||
2014 Restructuring Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | 19 | ||||||
Payments for restructuring (less than) | 11 | 2 | |||||
2014 Restructuring Program [Member] | Employee separation [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | 16 | ||||||
2014 Restructuring Program [Member] | Asset Shut Down Charges [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | 3 | ||||||
Operating Segments [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | 333 | ||||||
Operating Segments [Member] | Titanium Technologies Site Closure [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | 140 | ||||||
Operating Segments [Member] | Fluroproducts Restructuring [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | 24 | ||||||
Operating Segments [Member] | Reactive Metals Solutions Plant (RMS) Closure [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | 57 | ||||||
Operating Segments [Member] | 2014 Restructuring Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | 19 | ||||||
Titanium Technologies [Member] | Operating Segments [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | 173 | ||||||
Titanium Technologies [Member] | Operating Segments [Member] | Titanium Technologies Site Closure [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | $ 140 | 140 | |||||
Titanium Technologies [Member] | Operating Segments [Member] | Titanium Technologies Site Closure [Member] | Employee separation [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | 11 | ||||||
Titanium Technologies [Member] | Operating Segments [Member] | Titanium Technologies Site Closure [Member] | Property, Plant and Equipment Related Charges [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | 115 | ||||||
Titanium Technologies [Member] | Operating Segments [Member] | Titanium Technologies Site Closure [Member] | Decommissioning Costs [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | 14 | ||||||
Titanium Technologies [Member] | Operating Segments [Member] | Titanium Technologies Site Closure [Member] | Additional Restructuring Charges [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | 50 | ||||||
Titanium Technologies [Member] | Operating Segments [Member] | Fluroproducts Restructuring [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | 0 | ||||||
Titanium Technologies [Member] | Operating Segments [Member] | Reactive Metals Solutions Plant (RMS) Closure [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | 0 | ||||||
Titanium Technologies [Member] | Operating Segments [Member] | 2014 Restructuring Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | 3 | ||||||
Fluoroproducts [Member] | Operating Segments [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | 78 | ||||||
Fluoroproducts [Member] | Operating Segments [Member] | Titanium Technologies Site Closure [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | 0 | ||||||
Fluoroproducts [Member] | Operating Segments [Member] | Fluroproducts Restructuring [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | 21 | 24 | |||||
Fluoroproducts [Member] | Operating Segments [Member] | Fluroproducts Restructuring [Member] | Employee separation [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | 2 | ||||||
Fluoroproducts [Member] | Operating Segments [Member] | Fluroproducts Restructuring [Member] | Property, Plant and Equipment Related Charges [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | 18 | ||||||
Fluoroproducts [Member] | Operating Segments [Member] | Fluroproducts Restructuring [Member] | Decommissioning Costs [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | 1 | ||||||
Fluoroproducts [Member] | Operating Segments [Member] | Fluroproducts Restructuring [Member] | Additional Restructuring Charges [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | $ 5 | ||||||
Fluoroproducts [Member] | Operating Segments [Member] | Reactive Metals Solutions Plant (RMS) Closure [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | $ 0 | ||||||
Fluoroproducts [Member] | Operating Segments [Member] | 2014 Restructuring Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Employee separation and asset related charges, net | $ 16 | ||||||
New Johnsonville, Tennessee [Member] | Titanium Technologies Site Closure [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Number of production lines shut down during period | production_line | 1 | ||||||
Niagara Falls, NY [Member] | Reactive Metals Solutions Plant (RMS) Closure [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expected number of positions to be eliminated | position | 200 |
Employee Separation and Asset70
Employee Separation and Asset Related Charges, Net (Segment Earnings) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | $ 333 | $ 21 | $ 2 | ||
2014 Restructuring Program [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | 19 | ||||
Operating Segments [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | 333 | ||||
Operating Segments [Member] | Titanium Technologies [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | 173 | ||||
Operating Segments [Member] | Fluoroproducts [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | 78 | ||||
Operating Segments [Member] | Chemical Solutions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | 82 | ||||
Operating Segments [Member] | Titanium Technologies Site Closure [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | 140 | ||||
Operating Segments [Member] | Titanium Technologies Site Closure [Member] | Titanium Technologies [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | $ 140 | 140 | |||
Operating Segments [Member] | Titanium Technologies Site Closure [Member] | Fluoroproducts [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | 0 | ||||
Operating Segments [Member] | Titanium Technologies Site Closure [Member] | Chemical Solutions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | 0 | ||||
Operating Segments [Member] | Fluroproducts Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | 24 | ||||
Operating Segments [Member] | Fluroproducts Restructuring [Member] | Titanium Technologies [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | 0 | ||||
Operating Segments [Member] | Fluroproducts Restructuring [Member] | Fluoroproducts [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | $ 21 | 24 | |||
Operating Segments [Member] | Fluroproducts Restructuring [Member] | Chemical Solutions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | 0 | ||||
Operating Segments [Member] | Reactive Metals Solutions Plant (RMS) Closure [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | 57 | ||||
Operating Segments [Member] | Reactive Metals Solutions Plant (RMS) Closure [Member] | Titanium Technologies [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | 0 | ||||
Operating Segments [Member] | Reactive Metals Solutions Plant (RMS) Closure [Member] | Fluoroproducts [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | 0 | ||||
Operating Segments [Member] | Reactive Metals Solutions Plant (RMS) Closure [Member] | Chemical Solutions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | 57 | ||||
Operating Segments [Member] | 2015 Restructuring Program [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | [1] | 112 | |||
Operating Segments [Member] | 2015 Restructuring Program [Member] | Titanium Technologies [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | 33 | ||||
Operating Segments [Member] | 2015 Restructuring Program [Member] | Fluoroproducts [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | 54 | ||||
Operating Segments [Member] | 2015 Restructuring Program [Member] | Chemical Solutions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | 25 | ||||
Operating Segments [Member] | 2014 Restructuring Program [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | 19 | ||||
Operating Segments [Member] | 2014 Restructuring Program [Member] | Titanium Technologies [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | 3 | ||||
Operating Segments [Member] | 2014 Restructuring Program [Member] | Fluoroproducts [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | 16 | ||||
Operating Segments [Member] | 2014 Restructuring Program [Member] | Chemical Solutions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | $ 0 | ||||
Corporate, Non-Segment [Member] | 2015 Restructuring Program [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee separation and asset related charges, net | $ 24 | ||||
[1] | Includes approximately $24 related to corporate overhead functions that was allocated to our segments |
Employee Separation and Asset71
Employee Separation and Asset Related Charges, Net (Restructuring Program schedule) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning | $ 12 | $ 0 | |
Restructuring charges | 135 | 16 | |
Payments | (50) | (2) | |
Net currency translation adjustment | 0 | [1] | (2) |
Restructuring reserve, ending | 97 | 12 | |
Titanium Technologies Site Closure [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning | 0 | 0 | |
Restructuring charges | 11 | 0 | |
Payments | 0 | 0 | |
Net currency translation adjustment | 0 | [1] | 0 |
Restructuring reserve, ending | 11 | 0 | |
Chemical Solutions Site Closures [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning | 0 | 0 | |
Restructuring charges | 12 | 0 | |
Payments | 0 | 0 | |
Net currency translation adjustment | 0 | [1] | 0 |
Restructuring reserve, ending | 12 | 0 | |
2015 Restructuring Program [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning | 0 | 0 | |
Restructuring charges | 112 | 0 | |
Payments | (39) | 0 | |
Net currency translation adjustment | 0 | [1] | 0 |
Restructuring reserve, ending | 73 | 0 | |
2014 Restructuring Program [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning | 12 | 0 | |
Restructuring charges | 0 | 16 | |
Payments | (11) | (2) | |
Net currency translation adjustment | 0 | [1] | (2) |
Restructuring reserve, ending | 1 | $ 12 | |
Maximum [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Net currency translation adjustment | $ 1 | ||
[1] | Net currency translation adjustment for the year ended December 31, 2015 was less than $1. |
Other Income, Net (Schedule of
Other Income, Net (Schedule of Other Income) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Component of Other Income [Line Items] | ||||
Leasing, contract services and miscellaneous income | $ 25 | $ 17 | $ 24 | |
Royalty income | [1] | 19 | 28 | 24 |
Gain on purchase of equity method investment | 0 | 0 | 7 | |
(Loss) gain on sale of assets and businesses | [2] | (9) | 40 | 0 |
Exchange gains (losses), net | [3] | 19 | (66) | (31) |
Other income, net | 54 | 19 | $ 24 | |
Gain (loss) on sale of assets | 40 | |||
Exchange gains (losses),net | (23) | |||
Forward Contracts [Member] | ||||
Component of Other Income [Line Items] | ||||
Gain on derivative | 42 | |||
Operating Segments [Member] | Fluoroproducts [Member] | ||||
Component of Other Income [Line Items] | ||||
Gain (loss) on sale of assets | 30 | |||
Gain on sale of remaining assets | 6 | |||
Operating Segments [Member] | Titanium Technologies [Member] | ||||
Component of Other Income [Line Items] | ||||
Gain (loss) on sale of assets | $ 4 | |||
Sweden [Member] | ||||
Component of Other Income [Line Items] | ||||
Proceeds from sale of subsidiary | 4 | |||
Sweden [Member] | Operating Segments [Member] | Fluoroproducts [Member] | ||||
Component of Other Income [Line Items] | ||||
Gain (loss) on sale of assets | $ (9) | |||
[1] | Royalty income is primarily for technology and trademark licensing. | |||
[2] | In 2015, the Company sold its subsidiary in Sweden for proceeds of $4 that resulted in a loss on sale of $9 in the Fluoroproducts segment. In 2014, the gain of $40 includes gains on sales of businesses of $30 and $4 in the Fluoroproducts and Titanium Technologies segments, respectively. The remaining $6 related to gain on other sale of assets in the Fluoroproducts segment. | |||
[3] | Chemours uses foreign currency forward contracts to offset its net exposure, by currency, related to its non-functional currency-denominated monetary assets and liabilities. See Note 20 for further information. The pre-tax exchange gains are recorded in other income, net and the related tax impact is recorded in provision for income taxes in the Consolidated Statements of Operations. The $19 net exchange gain for the year ended December 31, 2015 includes a gain on derivatives of $42, partially offset by a $23 pre-tax exchange loss on non-functional monetary assets and liabilities as a result of the strengthening of the U.S. dollar against the Mexican peso, Euro, Thai baht, Chinese yuan and other currencies. Exchange losses in 2014 and 2013, respectively, were primarily driven by the strengthening of the U.S. Dollar versus the Swiss franc and the Euro in 2014, and a strengthening of the U.S. dollar versus the Venezuelan bolivar and the Brazilian real in 2013. |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Current tax expense: | ||||
U.S. federal | $ 37 | [1] | $ 85 | $ 67 |
U.S. state and local | 1 | [1] | 13 | 11 |
International | 62 | 73 | 88 | |
Total current tax expense | 100 | 171 | 166 | |
Deferred tax (benefit) expense: | ||||
U.S. federal | (187) | (20) | (4) | |
U.S. state and local | (14) | (3) | (2) | |
International | 3 | 1 | (8) | |
Total deferred tax benefit | (198) | (22) | (14) | |
Total (benefit from) provision for income taxes | $ (98) | $ 149 | $ 152 | |
[1] | Recorded pursuant to the tax matters agreement. |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets-noncurrent: | ||
Other assets and other accrued liabilities | $ 257 | $ 188 |
Tax loss carryforwards | 124 | 36 |
Total deferred tax assets-noncurrent | 381 | 224 |
Valuation allowance | 0 | (36) |
Total deferred tax assets, net | 381 | 188 |
Deferred tax liabilities-noncurrent: | ||
Goodwill and other intangibles | 0 | (2) |
Accrued expenses and other liabilities | (7) | (34) |
Property, plant and equipment | (530) | (533) |
Inventories and other assets | (31) | (33) |
Total deferred tax liabilities-noncurrent | (568) | (602) |
Net deferred tax liability | $ (187) | $ (414) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory U.S. federal income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 5.10% | 1.00% | 1.00% |
Benefit from (lower effective tax rate) on international operations-net | 12.00% | (9.60%) | (10.20%) |
Valuation allowance | 0.00% | 2.00% | 1.20% |
Exchange (gains) losses | 0.50% | 2.70% | 2.30% |
Depletion | 3.40% | (3.90%) | (4.10%) |
Goodwill | (3.20%) | (0.00%) | (0.00%) |
Section 199 deduction | (0.00%) | (0.70%) | (0.80%) |
Other, net | (0.50%) | 0.60% | 2.00% |
Total effective tax rate | 52.30% | 27.10% | 26.40% |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. (including exports) | $ (492) | $ 244 | $ 224 | ||||||||
International | 304 | 306 | 352 | ||||||||
(Loss) income before income taxes | $ (121) | $ (107) | $ (18) | $ 58 | $ 120 | $ 143 | $ 155 | $ 132 | $ (188) | $ 550 | $ 576 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Provision (benefit) for income taxes | $ (98) | $ 149 | $ 152 |
Decrease in tax provision | (247) | ||
Unremitted earnings of foreign subsidiaries | 1,500 | ||
Tax Credit Carryforward [Line Items] | |||
Tax effect of tax carryforwards | 124 | ||
Expires in 2026 [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Tax effect of tax carryforwards | 25 | ||
Expires in 2036 [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Tax effect of tax carryforwards | 90 | ||
Expiration Between Years 2021 to 2036 [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Tax effect of tax carryforwards | $ 9 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Total unrecognized tax benefits as of January 1 | $ 39 | $ 26 | $ 24 | |
Gross amounts of decreases in unrecognized tax benefits as a result of adjustments to tax provisions taken during the prior period | 0 | (1) | (1) | |
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken during the current period | 0 | 15 | 5 | |
Reduction to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations | (32) | [1] | (1) | (2) |
Total unrecognized tax benefits as of December 31 | 7 | 39 | 26 | |
Total unrecognized tax benefits, if recognized, that would impact the effective tax rate | 0 | 39 | 26 | |
Total amount of interest and penalties recognized in the Consolidated Statements of Operations | 1 | [1] | 2 | 2 |
Total amount of interest and penalties recognized in the Consolidated Balance Sheets | $ 0 | $ 8 | $ 6 | |
[1] | Recorded pursuant to the tax matters agreement. |
Income Taxes - Summary of Valua
Income Taxes - Summary of Valuation Allowance (Details) - Valuation Allowance of Deferred Tax Assets [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of period | $ 36 | $ 26 | $ 19 | |
Net charges to income tax expense | 0 | 10 | 7 | |
Release of valuation allowance | [1] | (36) | 0 | 0 |
Balance at end of period | $ 0 | $ 36 | $ 26 | |
[1] | Release of valuation allowance during 2015 was primarily related to the tax attributes retained by DuPont pursuant to the tax matters agreement. |
Earnings Per Share of Common 80
Earnings Per Share of Common Stock (Earnings per Share Calculation) (Details) - USD ($) $ in Millions | Jul. 01, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Numerator: | |||||||||||||||
Net (loss) income attributable to Chemours | $ (86) | $ (29) | $ (18) | $ 43 | $ 79 | $ 107 | $ 116 | $ 98 | $ (90) | $ 400 | $ 423 | ||||
Denominator: | |||||||||||||||
Weighted-average number of common shares outstanding- Basic | 180,993,623 | 180,966,833 | [1] | 180,966,833 | [1] | ||||||||||
Dilutive effect of the Company's employee compensation plans, shares | [2] | 0 | 0 | 0 | |||||||||||
Weighted average number of common shares outstanding - Diluted | [2] | 180,993,623 | 180,966,833 | 180,966,833 | |||||||||||
Distribution of Common Stock at separation (in shares) | 180,966,833 | ||||||||||||||
[1] | For 2013 and 2014, pro forma earnings per share (EPS) was calculated based on 180,966,833 shares of Chemours common stock that were distributed to DuPont shareholders on July 1, 2015. | ||||||||||||||
[2] | Diluted (loss) earnings per share is calculated using net (loss) income available to common shareholders divided by diluted weighted-average shares of common shares outstanding during each period, which includes unvested restricted shares. Diluted earnings per share considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an antidilutive effect. Chemours had no equity awards outstanding prior to the spin-off. |
Earnings Per Share of Common 81
Earnings Per Share of Common Stock (Antidilutive Shares Excluded from Computation of Earnings per Share) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Average number of stock options | 8,358,894 | 0 | 0 |
Accounts and Notes Receivable82
Accounts and Notes Receivable - Trade, Net (Schedule of Accounts and Notes Receivable) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Receivables [Abstract] | |||
Accounts receivable-trade, net | [1] | $ 757 | $ 746 |
VAT, GST and other taxes | [2] | 68 | 62 |
Leases receivable-current | 13 | 12 | |
Other receivables | [3] | 21 | 26 |
Total | $ 859 | $ 846 | |
[1] | Accounts receivable-trade is net of allowances of $4 and $4 as of December 31, 2015 and 2014, respectively. Allowances are equal to the estimated uncollectible amounts. | ||
[2] | Value Added Tax (VAT) and Goods and Services Tax (GST). | ||
[3] | Other receivables consist of notes receivable, advances and other deposits. |
Accounts and Notes Receivable83
Accounts and Notes Receivable - Trade, Net (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)facility | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Receivables [Abstract] | |||
Allowance for doubtful accounts receivable | $ 4 | $ 4 | |
Bad debt expense (less than $1 for year ended December 31, 2015) | $ 1 | 1 | $ 2 |
Number of facilities with fixed assets constructed on land | facility | 2 | ||
Leases receivable | $ 138 | $ 149 | |
Estimated future residual value of leased assets | $ 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory, Net [Abstract] | ||
Finished products | $ 613 | $ 611 |
Semi-finished products | 172 | 173 |
Raw materials, stores and supplies | 433 | 521 |
Subtotal | 1,218 | 1,305 |
Adjustment of inventories to LIFO basis | (246) | (253) |
Total | 972 | 1,052 |
LIFO inventory amount | $ 744 | $ 684 |
Percentage of LIFO inventory | 61.00% | 52.00% |
Property, Plant and Equipment85
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2015 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Property, plant and equipment, gross | $ 9,015 | $ 9,282 | |||
Less: Accumulated depreciation | (5,838) | (5,974) | |||
Net property, plant and equipment | 3,177 | 3,308 | $ 2,972 | ||
Depreciation expense | 264 | 254 | 255 | ||
Capital leased assets | 7 | 6 | |||
Interest capitalized | 21 | 0 | 0 | ||
Asset impairment charges | 48 | 0 | $ 0 | ||
Consideration for disposal group | $ 140 | ||||
Equipment [Member] | |||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Property, plant and equipment, gross | 7,327 | 7,500 | |||
Building [Member] | |||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Property, plant and equipment, gross | 737 | 778 | |||
Construction in progress [Member] | |||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Property, plant and equipment, gross | 804 | 852 | |||
Land [Member] | |||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Property, plant and equipment, gross | 111 | 116 | |||
Mineral rights [Member] | |||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Property, plant and equipment, gross | 36 | $ 36 | |||
Operating Segments [Member] | Chemical Solutions [Member] | |||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Asset impairment charges | $ 45 | ||||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | |||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Asset disposal group | $ 46 |
Goodwill and Other Intangible86
Goodwill and Other Intangible Assets, Net (Schedule of Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 198 | $ 198 | |
Impairment charge | (25) | 0 | $ 0 |
Other adjustments | (7) | 0 | |
Goodwill, ending balance | 166 | 198 | 198 |
Chemical Solutions [Member] | |||
Goodwill [Roll Forward] | |||
Impairment charge | (25) | ||
Operating Segments [Member] | Titanium Technologies [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 13 | 13 | |
Impairment charge | 0 | 0 | |
Other adjustments | 0 | 0 | |
Goodwill, ending balance | 13 | 13 | 13 |
Operating Segments [Member] | Fluroproducts [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 85 | 85 | |
Impairment charge | 0 | 0 | |
Other adjustments | 0 | 0 | |
Goodwill, ending balance | 85 | 85 | 85 |
Operating Segments [Member] | Chemical Solutions [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 100 | 100 | |
Impairment charge | (25) | 0 | |
Other adjustments | (7) | 0 | |
Goodwill, ending balance | $ 68 | $ 100 | $ 100 |
Goodwill and Other Intangible87
Goodwill and Other Intangible Assets, Net (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Indefinite-lived Intangible Assets [Line Items] | |||
Number of reportable segments | segment | 3 | ||
Impairment charge | $ 25 | $ 0 | $ 0 |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense, 2016 | 3 | ||
Amortization expense, 2017 | 2 | ||
Amortization expense, 2018 | 1 | ||
Amortization expense, 2019 | 1 | ||
Amortization expense, 2020 | 1 | ||
Chemical Solutions [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment charge | $ 25 | ||
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 5 years | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 20 years | ||
Continuing Operations [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Aggregate pre-tax amortization expense | $ 3 | 3 | $ 6 |
Operating Segments [Member] | Chemical Solutions [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment charge | $ 25 | $ 0 | |
Number of reporting unit | 7 | ||
Operating Segments [Member] | Fluoroproducts [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Number of reporting unit | 3 |
Goodwill and Other Intangible88
Goodwill and Other Intangible Assets, Net (Schedule of Other Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | $ 45 | $ 42 |
Intangible Assets, Accumulated Amortization | (35) | (31) |
Intangible Assets, Net | 10 | 11 |
Customer Lists [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | 13 | 13 |
Intangible Assets, Accumulated Amortization | (10) | (10) |
Intangible Assets, Net | 3 | 3 |
Patents [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | 19 | 19 |
Intangible Assets, Accumulated Amortization | (17) | (15) |
Intangible Assets, Net | 2 | 4 |
Purchased trademarks [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | 5 | 5 |
Intangible Assets, Accumulated Amortization | (2) | (1) |
Intangible Assets, Net | 3 | 4 |
Purchased and licensed technology [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | 8 | 5 |
Intangible Assets, Accumulated Amortization | (6) | (5) |
Intangible Assets, Net | $ 2 | $ 0 |
Other Assets (Details)
Other Assets (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)location | Dec. 31, 2014USD ($) | ||
Debt Instrument [Line Items] | |||
Leases receivable - non-current | [1] | $ 125 | $ 137 |
Capitalized repair and maintenance costs | 149 | 185 | |
Noncurrent assets | [2] | 138 | 0 |
Advances and deposits | 11 | 17 | |
Deferred income taxes | 47 | 10 | |
Miscellaneous | [3] | 38 | 28 |
Total | $ 508 | $ 377 | |
Direct financing leases, number of locations | location | 2 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Deferred financing fee | $ 19 | ||
[1] | Leases receivable includes direct financing leases of property at two locations. See Note 10 for further information. | ||
[2] | Pension assets represent pension plans commencing in 2015. See Note 21 for further information. | ||
[3] | Miscellaneous includes prepaid expenses for royalty fees, vendor supply agreements and taxes other than income taxes, deferred financing fees related to the Revolving Credit Facility of $19 at December 31, 2015, as well as capitalized expenses for the preparation of future landfill cells at Titanium Technologies' New Johnsonville plant site. |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Accrued Liabilities, Current [Abstract] | |||
Compensation and other employee-related costs | $ 109 | $ 109 | |
Employee separation costs | [1] | 76 | 12 |
Accrued litigation | [2] | 11 | 7 |
Environmental remediation | 68 | 69 | |
Income taxes | 32 | 0 | |
Customer rebates | 53 | 59 | |
Deferred revenue | 20 | 28 | |
Accrued interest | 21 | 0 | |
Miscellaneous | [3] | 64 | 68 |
Total | $ 454 | $ 352 | |
[1] | See Note 6 for further information. | ||
[2] | See Note 19 for further discussion of environmental remediation and accrued litigation. | ||
[3] | Miscellaneous primarily includes accrued utility expenses, property taxes, an accrued indemnification liability and other miscellaneous expenses. |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Liabilities [Abstract] | |||
Environmental remediation | [1] | $ 223 | $ 226 |
Employee-related costs | [2] | 108 | 32 |
Employee separation costs | 23 | 0 | |
Accrued litigation | [1] | 58 | 52 |
Asset retirement obligations | [1] | 41 | 43 |
Deferred revenue | 11 | 13 | |
Miscellaneous | [3] | 89 | 98 |
Total | $ 553 | $ 464 | |
[1] | See Note 19 for further details on environmental remediation, asset retirement obligations and accrued litigation. | ||
[2] | See Note 21 for further details on long-term employee benefits. | ||
[3] | Miscellaneous primarily includes an accrued indemnification liability. |
Debt (Components of Long-Term D
Debt (Components of Long-Term Debt) (Details) € in Millions, $ in Millions | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | May. 12, 2015USD ($) | May. 12, 2015EUR (€) | Dec. 31, 2014USD ($) |
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 3,995 | ||||
Long-term debt | $ 4,014 | ||||
Less: Unamortized debt issuance costs | 60 | ||||
Less: Short-term borrowings and current maturities | 39 | $ 0 | |||
Total long-term debt | 3,915 | $ 0 | |||
Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 2,503 | ||||
Senior Notes [Member] | 6.625% Senior Notes Due May 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 1,350 | ||||
Long-term debt | $ 1,350 | ||||
Debt instrument interest rate | 6.625% | 6.625% | |||
Senior Notes [Member] | 7.00% Senior Notes Due May 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 750 | ||||
Long-term debt | $ 750 | ||||
Debt instrument interest rate | 7.00% | 7.00% | |||
Senior Notes [Member] | Senior Notes 6.125% Due May 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 395 | € 360 | € 360 | ||
Long-term debt | $ 395 | ||||
Debt instrument interest rate | 6.125% | 6.125% | |||
Other Payables [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 26 | ||||
The Term Loan Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Unamortized discount | 7 | $ 7 | |||
Long-term debt | $ 1,493 | ||||
Debt instrument interest rate | 1.00% | 1.00% |
Debt (Senior Secured Credit Fac
Debt (Senior Secured Credit Facilities) (Details) - USD ($) $ in Millions | May. 12, 2015 | Dec. 31, 2015 | Feb. 19, 2016 |
Line of Credit Facility [Line Items] | |||
Long-term debt | $ 4,014 | ||
Domestic Subsidiary [Member] | |||
Line of Credit Facility [Line Items] | |||
Collateral as percentage of common stock | 100.00% | ||
Foreign Subsidiary [Member] | |||
Line of Credit Facility [Line Items] | |||
Collateral as percentage of common stock | 65.00% | ||
The Term Loan Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt instrument term | 7 years | ||
Line of credit facility, maximum borrowing capacity | $ 1,500 | ||
Periodic payment, percentage of face amount | 1.00% | ||
Unamortized discount | $ 7 | 7 | |
Stated percentage rate, minimum | 3.75% | ||
Long-term debt | 1,493 | ||
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt instrument term | 5 years | ||
Line of credit facility, maximum borrowing capacity | $ 1,000 | ||
Long-term debt | 0 | ||
Letters of credit outstanding | $ 129 | ||
Commitment fee percentage | 0.35% | ||
Maximum net leverage ratio | 3.50 | ||
Minimum interest coverage ratio | 1.75 | ||
Revolving Credit Facility [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Unused capacity commitment fee percentage | 0.20% | ||
Revolving Credit Facility [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Unused capacity commitment fee percentage | 0.35% | ||
Revolving Credit Facility [Member] | Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Variable rate | 1.25% | ||
Revolving Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Variable rate | 0.50% | ||
Revolving Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Variable rate | 1.25% | ||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Line of Credit Facility [Line Items] | |||
Variable rate | 2.25% | ||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Variable rate | 1.50% | ||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Variable rate | 2.25% | ||
Subsequent Event [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 750 |
Debt (Senior Unsecured Notes) (
Debt (Senior Unsecured Notes) (Details) € in Millions, $ in Millions | May. 12, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | May. 12, 2015EUR (€) |
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 3,995 | |||
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 2,503 | |||
Debt Instrument, interest rate, additional | 0.25% | 0.25% | ||
Threshold consecutive days following registration default | 90 days | |||
Threshold consecutive days following registration default, additional | 90 days | |||
Interest rate additional maximum | 0.50% | 0.50% | ||
Obligation threshold for debt to become guaranteed | $ 75 | |||
Repurchase price obligation, percentage of principal amount redeemed in event of change of control | 101.00% | 101.00% | ||
Repurchase price obligation, percentage of principal amount redeemed in event of change of asset dispositions | 100.00% | 100.00% | ||
Senior Notes [Member] | 6.625% Senior Notes Due May 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 1,350 | |||
Senior Notes [Member] | 7.00% Senior Notes Due May 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 750 | |||
Debt Instrument, face amount | $ 507 | |||
Senior Notes [Member] | Senior Notes 6.125% Due May 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 395 | € 360 | € 360 |
Debt (Maturities and Fair Value
Debt (Maturities and Fair Value) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |
Years with no long term debt maturities, except term loan facilities | 7 years |
Senior Notes [Member] | 6.625% Senior Notes Due May 2023 [Member] | |
Debt Instrument [Line Items] | |
Debt instrument interest rate | 6.625% |
Senior Notes [Member] | 7.00% Senior Notes Due May 2025 [Member] | |
Debt Instrument [Line Items] | |
Debt instrument interest rate | 7.00% |
Senior Notes [Member] | Senior Notes 6.125% Due May 2023 [Member] | |
Debt Instrument [Line Items] | |
Debt instrument interest rate | 6.125% |
Level 2 [Member] | Senior Notes [Member] | 6.625% Senior Notes Due May 2023 [Member] | |
Debt Instrument [Line Items] | |
Notes, fair value | $ 946 |
Level 2 [Member] | Senior Notes [Member] | 7.00% Senior Notes Due May 2025 [Member] | |
Debt Instrument [Line Items] | |
Notes, fair value | 513 |
Level 2 [Member] | Senior Notes [Member] | Senior Notes 6.125% Due May 2023 [Member] | |
Debt Instrument [Line Items] | |
Notes, fair value | $ 277 |
The Term Loan Facility [Member] | |
Debt Instrument [Line Items] | |
Debt instrument interest rate | 1.00% |
2,016 | $ 15 |
2,017 | 15 |
2,018 | 15 |
2,019 | 15 |
2,020 | 15 |
2021 and beyond | 3,913 |
The Term Loan Facility [Member] | Level 2 [Member] | |
Debt Instrument [Line Items] | |
Line of credit facility, fair value | $ 1,348 |
Commitments and Contingent Li96
Commitments and Contingent Liabilities (Guarantees) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ||
Guarantee obligations | $ 8 | $ 41 |
Accounts Payable (Details)
Accounts Payable (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Trade payables | $ 945 | $ 1,004 |
VAT and other payables | 28 | 42 |
Total | $ 973 | $ 1,046 |
Commitments and Contingent Li98
Commitments and Contingent Liabilities (Operating Leases) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Future minimum lease payments, 2016 | $ 84 | ||
Future minimum lease payments, 2017 | 73 | ||
Future minimum lease payments, 2018 | 62 | ||
Future minimum lease payments, 2019 | 53 | ||
Future minimum lease payments, 2020 | 36 | ||
Future minimum lease payments, thereafter | 38 | ||
Net expense under operating leases | $ 83 | $ 75 | $ 62 |
Commitments and Contingent Li99
Commitments and Contingent Liabilities (Asset Retirement Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Commitments and Contingencies Disclosure [Abstract] | |||||
Asset retirement obligation liabilities | $ 43 | $ 42 | $ 42 | $ 43 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||||
Beginning balance | 43 | 42 | |||
Accretion expense | 1 | 2 | |||
Additional liabilities incurred | 0 | 1 | |||
Changes in estimated cash flows | 0 | 0 | |||
Settlements/payments | (2) | (2) | |||
Ending balance | $ 42 | $ 43 | |||
Current portion | 1 | 0 | |||
Non-current portion | [1] | $ 41 | $ 43 | ||
[1] | See Note 19 for further details on environmental remediation, asset retirement obligations and accrued litigation. |
Commitments and Contingent L100
Commitments and Contingent Liabilities (Litigation) (Narrative) (Details) resident in Thousands, $ in Millions | Oct. 20, 2015USD ($) | Jan. 31, 2016trial | May. 31, 2013doctorwater_district | Dec. 31, 2015USD ($)lawsuit | Dec. 31, 2005USD ($) | Dec. 31, 2004resident | Dec. 31, 2014USD ($) | Sep. 30, 2014plantiff | Jan. 31, 2012USD ($) |
Loss Contingencies [Line Items] | |||||||||
Loss contingency, potential additional loss | $ 611 | ||||||||
Asbestos Issue [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Lawsuits alleging personal injury - Filed | lawsuit | 2,212 | ||||||||
Accrual balance | $ 42 | $ 38 | |||||||
Annual review projection period | 20 years | ||||||||
Asbestos Issue [Member] | Non-US [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Accrual balance | $ 3 | ||||||||
Benzene Related Illness [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Lawsuits alleging illness | lawsuit | 29 | ||||||||
Years of exposure to benzene | 24 years | ||||||||
Compensatory damages awarded | $ 6.9 | ||||||||
Punitive damages awarded | $ 1.5 | ||||||||
PFOA Matters [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Accrual balance | $ 20 | $ 14 | |||||||
PFOA Matters: Drinking Water Actions [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Binding settlement agreement, class size | resident | 80 | ||||||||
Number of doctors to release initial screening recommendations | doctor | 3 | ||||||||
PFOA Matters: Drinking Water Actions [Member] | Payment for Plaintiffs Attorney Fees [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Settlement payments | $ 23 | ||||||||
PFOA Matters: Drinking Water Actions [Member] | Payment to fund community health project [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Settlement payments | $ 70 | ||||||||
PFOA Matters: Drinking Water Actions [Member] | Funding for medical monitoring program [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, potential additional loss | 235 | ||||||||
Escrow deposit | $ 1 | ||||||||
Escrow deposit disbursements (less than) | $ 1 | ||||||||
PFOA Matters: Additional Actions [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Lawsuits alleging personal injury - Filed | lawsuit | 3,500 | ||||||||
Lawsuits alleging wrongful death | lawsuit | 37 | ||||||||
PFOA MDL Plaintiffs selected for individual trial | plantiff | 6 | ||||||||
Damages awarded due to negligence | $ 1.1 | ||||||||
Damages awarded due to emotional distress | $ 0.5 | ||||||||
Subsequent Event [Member] | PFOA Matters: Drinking Water Actions [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Expected number of scheduled plaintiff trials annually | trial | 40 | ||||||||
Percentage of total cases in MDL claiming cancer | 7.00% | ||||||||
Percentage of cases to remain inactive | 93.00% | ||||||||
Parent Issuer | PFOA Matters: Drinking Water Actions [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of water districts Company must provide treatment | water_district | 6 |
Commitments and Contingent L101
Commitments and Contingent Liabilities (Environmental) (Narrative) (Details) $ in Millions | 1 Months Ended | 12 Months Ended |
Jun. 30, 2015USD ($)a | Dec. 31, 2015USD ($) | |
Environmental Remediation [Line Items] | ||
Accrual for environmental remediation activities | $ 290 | |
Loss contingency, potential additional loss | 611 | |
Pompton Lakes [Member] | Lead and Mercury Emissions [Member] | ||
Environmental Remediation [Line Items] | ||
Accrual for environmental remediation activities | 87 | |
Loss contingency, potential additional loss | $ 119 | |
Area of lake | a | 36 | |
Environmental remediation expense | $ 50 | |
Minimum [Member] | ||
Environmental Remediation [Line Items] | ||
Average time frame of disbursements of environmental site remediation | 15 years | |
Minimum [Member] | Pompton Lakes [Member] | Lead and Mercury Emissions [Member] | ||
Environmental Remediation [Line Items] | ||
Average time frame of disbursements of environmental site remediation | 2 years | |
Maximum [Member] | ||
Environmental Remediation [Line Items] | ||
Average time frame of disbursements of environmental site remediation | 20 years | |
Maximum [Member] | Pompton Lakes [Member] | Lead and Mercury Emissions [Member] | ||
Environmental Remediation [Line Items] | ||
Average time frame of disbursements of environmental site remediation | 3 years |
Financial Instruments (Details)
Financial Instruments (Details) € in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015USD ($)contract | Dec. 31, 2015EUR (€)contract | May. 12, 2015USD ($) | May. 12, 2015EUR (€) | Dec. 31, 2014contract | Dec. 31, 2013contract | |
Derivative [Line Items] | ||||||
Long-term debt, gross | $ 3,995 | |||||
Senior Notes [Member] | ||||||
Derivative [Line Items] | ||||||
Long-term debt, gross | $ 2,503 | |||||
Senior Notes 6.125% Due May 2023 [Member] | Senior Notes [Member] | ||||||
Derivative [Line Items] | ||||||
Long-term debt, gross | $ 395 | € 360 | € 360 | |||
Designated as Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Recognized gain on derivative net investment hedge | $ 8 | |||||
Foreign Exchange Contract [Member] | ||||||
Derivative [Line Items] | ||||||
Number of forward exchange currency contracts | contract | 41 | 41 | 0 | 0 | ||
Derivative notional value | $ 288 | |||||
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Income [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative gain | $ 42 |
Financial Instruments (Schedule
Financial Instruments (Schedule of the Fair Value of Derivative Instruments) (Details) - Fair Value, Measurements, Recurring [Member] - Level 2 [Member] - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | $ 2 | $ 0 |
Liability derivatives | 2 | 0 |
Foreign Exchange Contract [Member] | Accounts and notes receivable - trade, net [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 2 | 0 |
Foreign Exchange Contract [Member] | Other accrued liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $ 2 | $ 0 |
Long-Term Employee Benefits (Na
Long-Term Employee Benefits (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer contributions during period | $ 28 | |||
Parent Issuer | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer matching contribution percent of match | 100.00% | |||
Employer matching contribution percent of employees' gross pay | 6.00% | |||
Employer contribution vesting period | 3 years | |||
Employer contributions during period | $ 26 | $ 52 | $ 50 | |
Minimum [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer matching contribution percent of employees' gross pay | 1.00% | |||
Maximum [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer matching contribution percent of employees' gross pay | 7.00% |
Long-Term Employee Benefits (Mu
Long-Term Employee Benefits (Multiemployer Plan) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
DuPont Pension and Retirement Plan (U.S.) [Member] | |||
Multiemployer Plans [Line Items] | |||
Pension and other postretirement benefit expense | $ 48 | $ 51 | $ 126 |
Other U.S. and non-U.S. Plans [Member] | |||
Multiemployer Plans [Line Items] | |||
Pension and other postretirement benefit expense | $ 5 | $ (1) | $ 38 |
Long-Term Employee Benefits (Sc
Long-Term Employee Benefits (Schedule of Net Periodic Benefit Cost and Amounts Recognized in Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Changes in plan assets and benefit obligations recognized in other comprehensive income: | ||||
Net loss | $ 11 | $ 0 | $ 0 | |
Amortization of loss | [1] | (16) | 0 | 0 |
Prior service credit | (24) | 0 | 0 | |
Amortization of prior service cost | [1] | (4) | 0 | 0 |
Effect of foreign exchange rates | (33) | 0 | 0 | |
Total benefit recognized in other comprehensive income | [1] | (66) | $ 0 | $ 0 |
Foreign Pension Plan [Member] | ||||
Net periodic pension cost (income): | ||||
Service cost | 16 | |||
Interest cost | 19 | |||
Expected return on plan assets | (83) | |||
Amortization of loss | 16 | |||
Amortization of prior service cost | 4 | |||
Net periodic benefit cost | (28) | |||
Changes in plan assets and benefit obligations recognized in other comprehensive income: | ||||
Net loss | 11 | |||
Amortization of loss | (16) | |||
Prior service credit | (24) | |||
Amortization of prior service cost | (4) | |||
Effect of foreign exchange rates | (33) | |||
Total benefit recognized in other comprehensive income | (66) | |||
Total recognized in net periodic pension income and other comprehensive income | $ (94) | |||
[1] | These other comprehensive income (loss) components are included in the computation of net periodic benefit costs. Refer to Note 21 for further information. |
Long-Term Employee Benefits (Am
Long-Term Employee Benefits (Amounts Recognized in Accumulated Other Comprehensive Loss) (Details) - Foreign Pension Plan [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Net loss | $ 363 |
Prior service credit | (16) |
Total amount recognized in accumulated other comprehensive loss | 347 |
Estimated net loss to be amortized into net periodic benefit cost in the next fiscal year | 20 |
Prior service cost to be amortized into net periodic benefit cost in the next fiscal year | $ 2 |
Long-Term Employee Benefits (Ch
Long-Term Employee Benefits (Change in Benefit Obligation and Plan Assets) (Details) - Foreign Pension Plan [Member] - USD ($) $ in Millions | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |
Benefit obligation at beginning of year | $ 0 |
Assumption and establishment of pension plans | 1,332 |
Service cost | 16 |
Interest cost | 19 |
Plan participants' contributions | 2 |
Actuarial loss (gain) | (76) |
Benefits paid | (39) |
Plan Amendments | (24) |
Settlements & Transfers | (6) |
Currency translation | (118) |
Benefit obligation at end of year | 1,106 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |
Fair value of plan assets at beginning of year | 0 |
Assumption and establishment of pension plans | 1,297 |
Actual loss on plan assets | (7) |
Employer contributions | 16 |
Plan participants' contributions | 2 |
Benefits paid | (39) |
Settlements & Transfers | (6) |
Currency translation | (123) |
Fair value of plan assets at end of year | 1,140 |
Funded status at end of year | $ 34 |
Long-Term Employee Benefits 109
Long-Term Employee Benefits (Amounts Recognized in Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Noncurrent assets | [1] | $ 138 | $ 0 |
The accumulated benefit obligation for all pension plans | 1,030 | ||
Foreign Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Noncurrent assets | 138 | ||
Current liabilities | (2) | ||
Noncurrent liabilities | (102) | ||
Net amount recognized | $ 34 | ||
[1] | Pension assets represent pension plans commencing in 2015. See Note 21 for further information. |
Long-Term Employee Benefits (Su
Long-Term Employee Benefits (Summary of Projected Benefit Obligations and Accumulated Benefit Obligations in Excess of Plan Assets) (Details) - Foreign Pension Plan [Member] $ in Millions | Dec. 31, 2015USD ($) |
Information for pension plans with projected benefit obligation in excess of plan assets | |
Projected benefit obligation | $ 194 |
Accumulated benefit obligation | 158 |
Fair value of plan assets | 93 |
Information for pension plans with accumulated benefit obligations in excess of plan assets | |
Projected benefit obligation | 190 |
Accumulated benefit obligation | 157 |
Fair value of plan assets | $ 90 |
Long-Term Employee Benefits (As
Long-Term Employee Benefits (Assumptions) (Details) - Foreign Pension Plan [Member] | 12 Months Ended | |
Dec. 31, 2015 | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Discount rate | 2.40% | |
Rate of compensation increase | 2.60% | [1] |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate | 1.70% | |
Rate of compensation increase | 3.90% | [1] |
Expected return on plan assets | 7.20% | |
[1] | The rate of compensation increase represents the single annual effective salary increase that an average plan participant would receive during the participant's entire career at Chemours. |
Long-Term Employee Benefits (Pl
Long-Term Employee Benefits (Plan Assets) (Details) - Foreign Pension Plan [Member] - USD ($) $ in Millions | Jan. 01, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 100.00% | ||
Fair value of plan assets | $ 1,140 | $ 0 | |
Fair value of plan liabilities | (3) | ||
Fair value of plan assets, net of plan liabilities | 1,137 | ||
Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 148 | ||
Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 992 | ||
Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 2.70% | ||
Fair value of plan assets | 40 | ||
Cash and Cash Equivalents [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 40 | ||
Cash and Cash Equivalents [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Equity securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 42.30% | ||
Fair value of plan assets | 460 | ||
Equity securities [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 370 | ||
Equity securities [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 423 | ||
Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 55.00% | ||
Derivatives - Asset Position[Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | ||
Derivatives - Asset Position[Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Derivatives - Asset Position[Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | ||
Derivative Liability Position [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | (16) | ||
Derivative Liability Position [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Derivative Liability Position [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | (16) | ||
Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | ||
Other [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | ||
Other [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | ||
Government Issued [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 465 | ||
Government Issued [Member] | Fixed Income Securities [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7 | ||
Government Issued [Member] | Fixed Income Securities [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 458 | ||
Corporate Issued [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 148 | ||
Corporate Issued [Member] | Fixed Income Securities [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 60 | ||
Corporate Issued [Member] | Fixed Income Securities [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 88 | ||
Asset backed [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 33 | ||
Asset backed [Member] | Fixed Income Securities [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Asset backed [Member] | Fixed Income Securities [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 33 |
Long-Term Employee Benefits (Ca
Long-Term Employee Benefits (Cash Flow) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Foreign Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer contributions | $ 16 | ||||
Estimated future employer contributions in current fiscal year | 18 | ||||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |||||
2,016 | $ 42 | 42 | |||
2,017 | 45 | 45 | |||
2,018 | 44 | 44 | |||
2,019 | 47 | 47 | |||
2,020 | 47 | 47 | |||
2021 - 2025 | 250 | $ 250 | |||
Foreign Pension Plan [Member] | Parent Issuer | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer contributions | $ 8 | $ 38 | $ 35 | $ 34 | |
Other Long-Term Employee Benefit Plans [Member] | Parent Issuer | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer contributions | $ 66 | $ 58 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jul. 31, 2015 | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jul. 01, 2015USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation cost | $ 17 | $ 7 | $ 6 | ||||
Income tax benefit | 7 | $ 3 | $ 2 | ||||
Stock Compensation Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Intrinsic value | $ 18 | ||||||
Conversion of stock incremental cost | $ 3 | ||||||
Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expiration period | 10 years | ||||||
Unrecognized compensation cost related to stock options | $ 5 | $ 5 | |||||
Unrecognized compensation cost period for recognition | 1 year 11 months 12 days | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost period for recognition | 2 years 1 month 13 days | ||||||
Stock-based compensation award vesting period | 3 years | ||||||
Common stock conversion ratio | 1 | ||||||
Restricted stock units granted and converted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 14.94 | ||||||
Unrecognized compensation cost related to restricted stock units | $ 23 | $ 23 | |||||
Chemours Company Equity and Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares reserved for grants plus the number of converted awards | shares | 13,500,000 |
Stock-based Compensation (Stock
Stock-based Compensation (Stock Option Assumptions) (Details) - Employee Stock Option [Member] | 12 Months Ended |
Dec. 31, 2015$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 1.50% |
Expected term (years) | 5 years 4 months 24 days |
Volatility | 42.00% |
Dividend yield | 6.90% |
Fair value per stock option (in dollars per share) | $ 3.17 |
Stock-based Compensation (St116
Stock-based Compensation (Stock Option Activity) (Details) - Employee Stock Option [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options outstanding, number of shares, beginning balance | 7,794 | |
Options granted, number of shares | 662 | |
Options exercised, number of shares | (22) | |
Options forfeited, number of shares | (150) | |
Options expired, number of shares | 0 | |
Options outstanding, number of shares, ending balance | 8,284 | 8,284 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Options outstanding, weighted average exercise price, beginning balance (in dollars per share) | $ / shares | $ 14.56 | |
Options granted, weighted average exercise price (in dollars per share) | $ / shares | 16.04 | |
Options exercised, weighted average exercise price (in dollars per share) | $ / shares | 5.82 | |
Options forfeited, weighted average exercise price (in dollars per share) | $ / shares | 17.20 | |
Options outstanding, weighted average exercise price, ending balance (in dollars per share) | $ / shares | $ 14.66 | $ 14.66 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Options exercisable, number of shares | 5,595 | 5,595 |
Options exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 13.79 | $ 13.79 |
Options outstanding, weighted average remaining contractual term | 4 years 9 months 25 days | |
Options exercisable, weighted average remaining contractual term | 4 years 2 months 15 days | |
Options outstanding, aggregate intrinsic value | $ | $ 0 | $ 0 |
Options exercisable, aggregate intrinsic value | $ | $ 0 | $ 0 |
Stock-based Compensation (Restr
Stock-based Compensation (Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 6 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Restricted stock units nonvested, number of shares, beginning balance | shares | 1,431 |
Restricted stock units granted, number of shares | shares | 1,065 |
Restricted stock units vested, number of shares | shares | (133) |
Restricted stock units forfeited, number of shares | shares | (14) |
Restricted stock units nonvested, number of shares, ending balance | shares | 2,349 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Restricted stock units nonvested, weighted average grant date fair value, beginning balance (in dollars per share) | $ / shares | $ 16 |
Restricted stock units granted, weighted average grant date fair value | $ / shares | 13.50 |
Restricted stock units vested, weighted average grant date fair value | $ / shares | 16 |
Restricted stock units forfeited, weighted average grant date fair value | $ / shares | 16 |
Restricted stock units nonvested, weighted average grant date fair value, ending balance (in dollars per share) | $ / shares | $ 14.87 |
Geographic and Segment Infor118
Geographic and Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Net Sales | $ 1,360 | $ 1,486 | $ 1,508 | $ 1,363 | $ 1,549 | $ 1,632 | $ 1,682 | $ 1,569 | $ 5,717 | [1] | $ 6,432 | [1] | $ 6,859 | [1] | |
Net property, plant and equipment | 3,177 | 3,308 | $ 3,177 | 3,308 | 2,972 | ||||||||||
Number of reportable segments | segment | 3 | ||||||||||||||
North America [Member] | |||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Net Sales | [1],[2] | $ 2,570 | 2,759 | 3,138 | |||||||||||
Net property, plant and equipment | [2] | 2,184 | 2,273 | 2,184 | 2,273 | 2,183 | |||||||||
Asia Pacific [Member] | |||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Net Sales | [1] | 1,393 | 1,548 | 1,519 | |||||||||||
Net property, plant and equipment | 136 | 140 | 136 | 140 | 138 | ||||||||||
Canada [Member] | |||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Net Sales | [2] | 140 | 147 | 145 | |||||||||||
Net property, plant and equipment | 13 | 14 | 13 | 14 | 13 | ||||||||||
EMEA [Member] | |||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Net Sales | [1],[3] | 977 | 1,190 | 1,237 | |||||||||||
Net property, plant and equipment | [3] | 308 | 372 | 308 | 372 | 321 | |||||||||
Latin America [Member] | |||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||
Net Sales | [1],[4] | 777 | 935 | 965 | |||||||||||
Net property, plant and equipment | [4] | $ 549 | $ 523 | $ 549 | $ 523 | $ 330 | |||||||||
[1] | Net sales are attributed to countries based on customer location. | ||||||||||||||
[2] | Includes net sales in Canada of? $140, $147 and $145 in 2015, 2014 and 2013, respectively. Also includes net property, plant and equipment in Canada of? $13, $14 and $13 in 2015, 2014 and 2013, respectively. | ||||||||||||||
[3] | EMEA includes Europe, Middle East and Africa. | ||||||||||||||
[4] | Latin America includes Mexico. |
Geographic and Segment Infor119
Geographic and Segment Information - (Schedule of Segment Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | $ 1,360 | $ 1,486 | $ 1,508 | $ 1,363 | $ 1,549 | $ 1,632 | $ 1,682 | $ 1,569 | $ 5,717 | [1] | $ 6,432 | [1] | $ 6,859 | [1] |
Adjusted EBITDA | 573 | 876 | 984 | |||||||||||
Depreciation and amortization | 267 | 257 | 261 | |||||||||||
Equity in earnings of affiliates | 22 | 20 | 22 | |||||||||||
Net assets | 130 | 3,673 | 130 | 3,673 | 3,217 | |||||||||
Investments in affiliates | 136 | 124 | 136 | 124 | 123 | |||||||||
Purchases of plant, property and equipment | 519 | 604 | 438 | |||||||||||
Operating Segments [Member] | Titanium Technologies [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 2,392 | 2,937 | 3,019 | |||||||||||
Adjusted EBITDA | 326 | 723 | 726 | |||||||||||
Depreciation and amortization | 125 | 125 | 117 | |||||||||||
Equity in earnings of affiliates | 0 | 0 | 0 | |||||||||||
Net assets | 1,659 | 1,748 | 1,659 | 1,748 | 1,390 | |||||||||
Investments in affiliates | 0 | 0 | 0 | 0 | 0 | |||||||||
Purchases of plant, property and equipment | 255 | 365 | 290 | |||||||||||
Operating Segments [Member] | Fluoroproducts [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 2,230 | 2,327 | 2,379 | |||||||||||
Adjusted EBITDA | 300 | 282 | 395 | |||||||||||
Depreciation and amortization | 88 | 83 | 90 | |||||||||||
Equity in earnings of affiliates | 21 | 20 | 22 | |||||||||||
Net assets | 1,567 | 1,480 | 1,567 | 1,480 | 1,387 | |||||||||
Investments in affiliates | 127 | 124 | 127 | 124 | 123 | |||||||||
Purchases of plant, property and equipment | 142 | 133 | 96 | |||||||||||
Operating Segments [Member] | Chemical Solutions [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 1,095 | 1,168 | 1,461 | |||||||||||
Adjusted EBITDA | 29 | 17 | 101 | |||||||||||
Depreciation and amortization | 52 | 48 | 53 | |||||||||||
Equity in earnings of affiliates | 0 | 0 | 0 | |||||||||||
Net assets | 839 | 782 | 839 | 782 | 734 | |||||||||
Investments in affiliates | 0 | 0 | 0 | 0 | 0 | |||||||||
Purchases of plant, property and equipment | 117 | 106 | 52 | |||||||||||
Corporate and Other [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 0 | 0 | 0 | |||||||||||
Adjusted EBITDA | (820) | (146) | (238) | |||||||||||
Depreciation and amortization | 20 | 1 | 1 | |||||||||||
Equity in earnings of affiliates | 10 | 0 | 0 | |||||||||||
Net assets | (3,935) | (337) | (3,935) | (337) | (294) | |||||||||
Investments in affiliates | $ 9 | $ 0 | 9 | 0 | 0 | |||||||||
Purchases of plant, property and equipment | $ 50 | $ 0 | $ 0 | |||||||||||
[1] | Net sales are attributed to countries based on customer location. |
Geographic and Segment Infor120
Geographic and Segment Information - (Reconciliation to Consolidated Income Statements) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Segment Reporting [Abstract] | ||||||||||||
Total Adjusted EBITDA | $ 573 | $ 876 | $ 984 | |||||||||
Interest expense, net | (132) | 0 | 0 | |||||||||
Depreciation and amortization | (267) | (257) | (261) | |||||||||
Non-operating pension and other post-retirement employee benefit costs | 3 | (22) | (114) | |||||||||
Exchange gains (losses) | [1] | 19 | (66) | (31) | ||||||||
Asset impairments | (73) | 0 | 0 | |||||||||
Restructuring charges | (285) | (21) | (2) | |||||||||
Transaction, legal and other charges | (17) | 0 | 0 | |||||||||
(Loss) gain on sale of assets and businesses | [2] | (9) | 40 | 0 | ||||||||
(Loss) income before income taxes | $ (121) | $ (107) | $ (18) | $ 58 | $ 120 | $ 143 | $ 155 | $ 132 | (188) | 550 | 576 | |
(Benefit from) provision for income taxes | (98) | 149 | 152 | |||||||||
Net (loss) income | $ (86) | $ (29) | $ (18) | $ 43 | $ 79 | $ 108 | $ 116 | $ 98 | $ (90) | $ 401 | $ 424 | |
[1] | Chemours uses foreign currency forward contracts to offset its net exposure, by currency, related to its non-functional currency-denominated monetary assets and liabilities. See Note 20 for further information. The pre-tax exchange gains are recorded in other income, net and the related tax impact is recorded in provision for income taxes in the Consolidated Statements of Operations. The $19 net exchange gain for the year ended December 31, 2015 includes a gain on derivatives of $42, partially offset by a $23 pre-tax exchange loss on non-functional monetary assets and liabilities as a result of the strengthening of the U.S. dollar against the Mexican peso, Euro, Thai baht, Chinese yuan and other currencies. Exchange losses in 2014 and 2013, respectively, were primarily driven by the strengthening of the U.S. Dollar versus the Swiss franc and the Euro in 2014, and a strengthening of the U.S. dollar versus the Venezuelan bolivar and the Brazilian real in 2013. | |||||||||||
[2] | In 2015, the Company sold its subsidiary in Sweden for proceeds of $4 that resulted in a loss on sale of $9 in the Fluoroproducts segment. In 2014, the gain of $40 includes gains on sales of businesses of $30 and $4 in the Fluoroproducts and Titanium Technologies segments, respectively. The remaining $6 related to gain on other sale of assets in the Fluoroproducts segment. |
Accumulated Other Comprehens121
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 3,669 | |||
Assumption and establishment of pension plans, net | [1] | 52 | $ 0 | $ 0 |
Ending Balance | 126 | 3,669 | ||
Currency Translation Adjustment [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 19 | 19 | 19 | |
Assumption and establishment of pension plans, net | 0 | |||
Other comprehensive income (loss) | (304) | 0 | 0 | |
Ending Balance | (285) | 19 | 19 | |
Derivative Instruments [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 0 | 0 | 0 | |
Assumption and establishment of pension plans, net | 0 | |||
Other comprehensive income (loss) | 8 | 0 | 0 | |
Ending Balance | 8 | 0 | 0 | |
Employee Benefits [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 0 | 0 | 0 | |
Assumption and establishment of pension plans, net | (311) | |||
Other comprehensive income (loss) | 52 | 0 | 0 | |
Ending Balance | (259) | 0 | 0 | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 19 | 19 | 19 | |
Assumption and establishment of pension plans, net | (311) | |||
Other comprehensive income (loss) | (244) | 0 | 0 | |
Ending Balance | $ (536) | $ 19 | $ 19 | |
[1] | These other comprehensive income (loss) components are included in the computation of net periodic benefit costs. Refer to Note 21 for further information. |
Quarterly Financial Data (Un122
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 01, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Net Sales | $ 1,360 | $ 1,486 | $ 1,508 | $ 1,363 | $ 1,549 | $ 1,632 | $ 1,682 | $ 1,569 | $ 5,717 | [1] | $ 6,432 | [1] | $ 6,859 | [1] | |
Cost of goods sold | 1,147 | 1,222 | 1,282 | 1,111 | 1,248 | 1,273 | 1,311 | 1,240 | 4,762 | 5,072 | 5,395 | ||||
Income (loss) before income taxes | (121) | (107) | (18) | 58 | 120 | 143 | 155 | 132 | (188) | 550 | 576 | ||||
Net income (loss) | (86) | (29) | (18) | 43 | 79 | 108 | 116 | 98 | (90) | 401 | 424 | ||||
Net income (loss) attributable to Chemours | $ (86) | $ (29) | $ (18) | $ 43 | $ 79 | $ 107 | $ 116 | $ 98 | $ (90) | $ 400 | $ 423 | ||||
Basic earnings (loss) per share (in dollars per share) | $ (0.48) | $ (0.16) | $ (0.10) | $ 0.24 | $ 0.44 | $ 0.59 | $ 0.64 | $ 0.54 | $ (0.50) | $ 2.21 | [2] | $ 2.34 | [2] | ||
Diluted earnings (loss) per share (in dollars per share) | $ (0.48) | $ (0.16) | $ (0.10) | $ 0.24 | $ 0.44 | $ 0.59 | $ 0.64 | $ 0.54 | $ (0.50) | $ 2.21 | [2] | $ 2.34 | [2] | ||
Number of basic common shares | 180,966,833 | ||||||||||||||
[1] | Net sales are attributed to countries based on customer location. | ||||||||||||||
[2] | On July 1, 2015, E. I. du Pont de Nemours and Company distributed 180,966,833 shares of Chemours' common stock to holders of its common stock. Basic and diluted (loss) earnings per common share for the years ended December 31, 2014 and 2013 were calculated using the shares distributed on July 1, 2015. Refer to Note 9 for information regarding the calculation of basic and diluted earnings per share. |
Guarantor Condensed Consolid123
Guarantor Condensed Consolidating Financial Information - Impact of revision on Condensed Consolidating Impact of revision on Statements of Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Net sales | $ 1,360 | $ 1,486 | $ 1,508 | $ 1,363 | $ 1,549 | $ 1,632 | $ 1,682 | $ 1,569 | $ 5,717 | [1] | $ 6,432 | [1] | $ 6,859 | [1] |
Cost of goods sold | 1,147 | 1,222 | 1,282 | 1,111 | 1,248 | 1,273 | 1,311 | 1,240 | 4,762 | 5,072 | 5,395 | |||
Gross (loss) profit | 955 | 1,360 | 1,464 | |||||||||||
Selling, general and administrative expense | 632 | 685 | 768 | |||||||||||
Equity in earnings of subsidiaries | 0 | 0 | ||||||||||||
(Loss) income before income taxes | (121) | (107) | (18) | 58 | 120 | 143 | 155 | 132 | (188) | 550 | 576 | |||
(Benefit from) provision for income taxes | (98) | 149 | 152 | |||||||||||
Net (loss) income | $ (86) | $ (29) | $ (18) | $ 43 | $ 79 | $ 108 | $ 116 | $ 98 | (90) | 401 | 424 | |||
Comprehensive (loss) income attributable to Chemours | (334) | 400 | 423 | |||||||||||
Parent Company [Member] | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Net sales | 0 | 0 | 0 | |||||||||||
Cost of goods sold | 0 | 0 | 0 | |||||||||||
Gross (loss) profit | 0 | 0 | 0 | |||||||||||
Selling, general and administrative expense | 15 | 0 | 0 | |||||||||||
Equity in earnings of subsidiaries | (47) | 400 | ||||||||||||
Interest expense and other income, net | (74) | |||||||||||||
(Loss) income before income taxes | (136) | 400 | 0 | |||||||||||
(Benefit from) provision for income taxes | (46) | 0 | 0 | |||||||||||
Net (loss) income | (90) | 400 | 0 | |||||||||||
Comprehensive (loss) income attributable to Chemours | (82) | 400 | 0 | |||||||||||
Parent Company [Member] | As Reported | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Net sales | 0 | |||||||||||||
Cost of goods sold | 0 | |||||||||||||
Gross (loss) profit | 0 | |||||||||||||
Selling, general and administrative expense | 15 | |||||||||||||
Equity in earnings of subsidiaries | (15) | |||||||||||||
Interest expense and other income, net | (106) | |||||||||||||
(Loss) income before income taxes | (136) | |||||||||||||
(Benefit from) provision for income taxes | (46) | |||||||||||||
Net (loss) income | (90) | |||||||||||||
Comprehensive (loss) income attributable to Chemours | (82) | |||||||||||||
Guarantor Subsidiaries [Member] | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Net sales | 4,044 | 4,593 | 5,066 | |||||||||||
Cost of goods sold | 3,708 | 3,863 | 4,250 | |||||||||||
Gross (loss) profit | 336 | 730 | 816 | |||||||||||
Selling, general and administrative expense | 426 | 429 | 492 | |||||||||||
Equity in earnings of subsidiaries | 0 | 0 | ||||||||||||
Interest expense and other income, net | 91 | |||||||||||||
(Loss) income before income taxes | (413) | 243 | 225 | |||||||||||
(Benefit from) provision for income taxes | (89) | 75 | 72 | |||||||||||
Net (loss) income | (324) | 168 | 153 | |||||||||||
Comprehensive (loss) income attributable to Chemours | (324) | 168 | 153 | |||||||||||
Guarantor Subsidiaries [Member] | As Reported | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Net sales | 4,067 | |||||||||||||
Cost of goods sold | 4,123 | |||||||||||||
Gross (loss) profit | (56) | |||||||||||||
Selling, general and administrative expense | 460 | |||||||||||||
Equity in earnings of subsidiaries | 0 | |||||||||||||
Interest expense and other income, net | 192 | |||||||||||||
(Loss) income before income taxes | (734) | |||||||||||||
(Benefit from) provision for income taxes | (114) | |||||||||||||
Net (loss) income | (620) | |||||||||||||
Comprehensive (loss) income attributable to Chemours | (620) | |||||||||||||
Non-Guarantor Subsidiaries [Member] | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Net sales | 3,269 | 3,722 | 3,690 | |||||||||||
Cost of goods sold | 2,650 | 3,093 | 3,053 | |||||||||||
Gross (loss) profit | 619 | 629 | 637 | |||||||||||
Selling, general and administrative expense | 204 | 256 | 276 | |||||||||||
Equity in earnings of subsidiaries | 0 | 0 | ||||||||||||
Interest expense and other income, net | (75) | |||||||||||||
(Loss) income before income taxes | 321 | 306 | 340 | |||||||||||
(Benefit from) provision for income taxes | 40 | 76 | 77 | |||||||||||
Net (loss) income | 281 | 230 | 263 | |||||||||||
Comprehensive (loss) income attributable to Chemours | 29 | 229 | 262 | |||||||||||
Non-Guarantor Subsidiaries [Member] | As Reported | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Net sales | 3,200 | |||||||||||||
Cost of goods sold | 2,246 | |||||||||||||
Gross (loss) profit | 954 | |||||||||||||
Selling, general and administrative expense | 170 | |||||||||||||
Equity in earnings of subsidiaries | 0 | |||||||||||||
Interest expense and other income, net | (107) | |||||||||||||
(Loss) income before income taxes | 654 | |||||||||||||
(Benefit from) provision for income taxes | 54 | |||||||||||||
Net (loss) income | 600 | |||||||||||||
Comprehensive (loss) income attributable to Chemours | 348 | |||||||||||||
Eliminations and Adjustments | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Net sales | (1,596) | (1,883) | (1,897) | |||||||||||
Cost of goods sold | $ (1,596) | (1,884) | (1,908) | |||||||||||
Gross (loss) profit | 1 | 11 | ||||||||||||
Selling, general and administrative expense | $ (13) | 0 | 0 | |||||||||||
Equity in earnings of subsidiaries | 47 | (400) | ||||||||||||
Interest expense and other income, net | (20) | |||||||||||||
(Loss) income before income taxes | 40 | (399) | 11 | |||||||||||
(Benefit from) provision for income taxes | (3) | (2) | 3 | |||||||||||
Net (loss) income | 43 | (397) | 8 | |||||||||||
Comprehensive (loss) income attributable to Chemours | 43 | $ (397) | $ 8 | |||||||||||
Eliminations and Adjustments | As Reported | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Net sales | (1,550) | |||||||||||||
Cost of goods sold | (1,607) | |||||||||||||
Gross (loss) profit | 57 | |||||||||||||
Selling, general and administrative expense | (13) | |||||||||||||
Equity in earnings of subsidiaries | 15 | |||||||||||||
Interest expense and other income, net | (57) | |||||||||||||
(Loss) income before income taxes | 28 | |||||||||||||
(Benefit from) provision for income taxes | 8 | |||||||||||||
Net (loss) income | 20 | |||||||||||||
Comprehensive (loss) income attributable to Chemours | $ 20 | |||||||||||||
[1] | Net sales are attributed to countries based on customer location. |
Guarantor Condensed Consolid124
Guarantor Condensed Consolidating Financial Information - Impact of revision on Condensed Consolidating Statements of Cash Flows (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||
Cash provided by operating activities | $ 182 | $ 505 | $ 798 |
Cash used for investing activities | (497) | (560) | (424) |
Cash provided by (used for) financing activities | 687 | 55 | (374) |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash provided by operating activities | (119) | 0 | 0 |
Cash used for investing activities | 0 | 0 | 0 |
Cash provided by (used for) financing activities | 119 | 0 | 0 |
Parent Company [Member] | Scenario, Previously Reported [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash provided by operating activities | (119) | ||
Cash used for investing activities | 0 | ||
Cash provided by (used for) financing activities | 119 | ||
Guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash provided by operating activities | 171 | 302 | 388 |
Cash used for investing activities | (446) | (237) | (192) |
Cash provided by (used for) financing activities | 370 | (65) | (196) |
Guarantor Subsidiaries [Member] | Scenario, Previously Reported [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash provided by operating activities | (125) | ||
Cash used for investing activities | (446) | ||
Cash provided by (used for) financing activities | 666 | ||
Non-Guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash provided by operating activities | 121 | 208 | 409 |
Cash used for investing activities | (253) | (323) | (232) |
Cash provided by (used for) financing activities | 409 | 115 | (177) |
Non-Guarantor Subsidiaries [Member] | Scenario, Previously Reported [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash provided by operating activities | 440 | ||
Cash used for investing activities | (253) | ||
Cash provided by (used for) financing activities | 90 | ||
Consolidation, Eliminations [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash provided by operating activities | 9 | 9 | 1 |
Cash used for investing activities | 202 | 0 | 0 |
Cash provided by (used for) financing activities | (211) | $ 5 | $ (1) |
Consolidation, Eliminations [Member] | Scenario, Previously Reported [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash provided by operating activities | (14) | ||
Cash used for investing activities | 202 | ||
Cash provided by (used for) financing activities | $ (188) |
Guarantor Condensed Consolid125
Guarantor Condensed Consolidating Financial Information - Condensed Consolidating Statements of Comprehensive (Loss) Income (Detail 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Net sales | $ 1,360 | $ 1,486 | $ 1,508 | $ 1,363 | $ 1,549 | $ 1,632 | $ 1,682 | $ 1,569 | $ 5,717 | [1] | $ 6,432 | [1] | $ 6,859 | [1] |
Cost of goods sold | 1,147 | 1,222 | 1,282 | 1,111 | 1,248 | 1,273 | 1,311 | 1,240 | 4,762 | 5,072 | 5,395 | |||
Gross profit | 955 | 1,360 | 1,464 | |||||||||||
Selling, general and administrative expense | 632 | 685 | 768 | |||||||||||
Research and development expense | 97 | 143 | 164 | |||||||||||
Employee separation and asset related charges, net | 333 | 21 | 2 | |||||||||||
Goodwill impairment | 25 | 0 | 0 | |||||||||||
Total expenses | 1,087 | 849 | 934 | |||||||||||
Equity in earnings of affiliates | 22 | 20 | 22 | |||||||||||
Equity in net loss of subsidiaries | 0 | 0 | ||||||||||||
Interest expense, net | (132) | 0 | 0 | |||||||||||
Intercompany interest income (expense), net | 0 | |||||||||||||
Other income (loss), net | 54 | 19 | 24 | |||||||||||
(Loss) income before income taxes | (121) | (107) | (18) | 58 | 120 | 143 | 155 | 132 | (188) | 550 | 576 | |||
Income Tax Expense (Benefit) | (98) | 149 | 152 | |||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (86) | (29) | (18) | 43 | 79 | 108 | 116 | 98 | (90) | 401 | 424 | |||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 1 | 1 | |||||||||||
Net Income (Loss) Attributable to Parent | $ (86) | $ (29) | $ (18) | $ 43 | $ 79 | $ 107 | $ 116 | $ 98 | (90) | 400 | 423 | |||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (334) | 400 | 423 | |||||||||||
Parent Issuer | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Net sales | 0 | 0 | 0 | |||||||||||
Cost of goods sold | 0 | 0 | 0 | |||||||||||
Gross profit | 0 | 0 | 0 | |||||||||||
Selling, general and administrative expense | 15 | 0 | 0 | |||||||||||
Research and development expense | 0 | 0 | 0 | |||||||||||
Employee separation and asset related charges, net | 0 | 0 | 0 | |||||||||||
Goodwill impairment | 0 | |||||||||||||
Total expenses | 15 | 0 | 0 | |||||||||||
Equity in earnings of affiliates | 0 | 0 | 0 | |||||||||||
Equity in net loss of subsidiaries | (47) | 400 | ||||||||||||
Interest expense, net | (131) | |||||||||||||
Intercompany interest income (expense), net | 44 | |||||||||||||
Other income (loss), net | 13 | 0 | 0 | |||||||||||
(Loss) income before income taxes | (136) | 400 | 0 | |||||||||||
Income Tax Expense (Benefit) | (46) | 0 | 0 | |||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (90) | 400 | 0 | |||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | 0 | |||||||||||
Net Income (Loss) Attributable to Parent | (90) | 400 | 0 | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (82) | 400 | 0 | |||||||||||
Guarantor Subsidiaries | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Net sales | 4,044 | 4,593 | 5,066 | |||||||||||
Cost of goods sold | 3,708 | 3,863 | 4,250 | |||||||||||
Gross profit | 336 | 730 | 816 | |||||||||||
Selling, general and administrative expense | 426 | 429 | 492 | |||||||||||
Research and development expense | 95 | 127 | 147 | |||||||||||
Employee separation and asset related charges, net | 295 | 11 | 0 | |||||||||||
Goodwill impairment | 25 | |||||||||||||
Total expenses | 841 | 567 | 639 | |||||||||||
Equity in earnings of affiliates | 1 | 0 | 0 | |||||||||||
Equity in net loss of subsidiaries | 0 | 0 | ||||||||||||
Interest expense, net | (1) | |||||||||||||
Intercompany interest income (expense), net | 0 | |||||||||||||
Other income (loss), net | 92 | 80 | 48 | |||||||||||
(Loss) income before income taxes | (413) | 243 | 225 | |||||||||||
Income Tax Expense (Benefit) | (89) | 75 | 72 | |||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (324) | 168 | 153 | |||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | 0 | |||||||||||
Net Income (Loss) Attributable to Parent | (324) | 168 | 153 | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (324) | 168 | 153 | |||||||||||
Non-Guarantor Subsidiaries | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Net sales | 3,269 | 3,722 | 3,690 | |||||||||||
Cost of goods sold | 2,650 | 3,093 | 3,053 | |||||||||||
Gross profit | 619 | 629 | 637 | |||||||||||
Selling, general and administrative expense | 204 | 256 | 276 | |||||||||||
Research and development expense | 2 | 16 | 17 | |||||||||||
Employee separation and asset related charges, net | 38 | 10 | 2 | |||||||||||
Goodwill impairment | 0 | |||||||||||||
Total expenses | 244 | 282 | 295 | |||||||||||
Equity in earnings of affiliates | 21 | 20 | 22 | |||||||||||
Equity in net loss of subsidiaries | 0 | 0 | ||||||||||||
Interest expense, net | 0 | |||||||||||||
Intercompany interest income (expense), net | (44) | |||||||||||||
Other income (loss), net | (31) | (61) | (24) | |||||||||||
(Loss) income before income taxes | 321 | 306 | 340 | |||||||||||
Income Tax Expense (Benefit) | 40 | 76 | 77 | |||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 281 | 230 | 263 | |||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 1 | 1 | |||||||||||
Net Income (Loss) Attributable to Parent | 281 | 229 | 262 | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 29 | 229 | 262 | |||||||||||
Eliminations and Adjustments | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Net sales | (1,596) | (1,883) | (1,897) | |||||||||||
Cost of goods sold | $ (1,596) | (1,884) | (1,908) | |||||||||||
Gross profit | 1 | 11 | ||||||||||||
Selling, general and administrative expense | $ (13) | 0 | 0 | |||||||||||
Research and development expense | 0 | 0 | 0 | |||||||||||
Employee separation and asset related charges, net | 0 | 0 | 0 | |||||||||||
Goodwill impairment | 0 | |||||||||||||
Total expenses | (13) | 0 | 0 | |||||||||||
Equity in earnings of affiliates | 0 | 0 | 0 | |||||||||||
Equity in net loss of subsidiaries | 47 | (400) | ||||||||||||
Interest expense, net | 0 | |||||||||||||
Intercompany interest income (expense), net | 0 | |||||||||||||
Other income (loss), net | (20) | 0 | 0 | |||||||||||
(Loss) income before income taxes | 40 | (399) | 11 | |||||||||||
Income Tax Expense (Benefit) | (3) | (2) | 3 | |||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 43 | (397) | 8 | |||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | 0 | |||||||||||
Net Income (Loss) Attributable to Parent | 43 | (397) | 8 | |||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 43 | $ (397) | $ 8 | |||||||||||
[1] | Net sales are attributed to countries based on customer location. |
Guarantor Condensed Consolid126
Guarantor Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheets (Details 3) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets: | ||||
Cash | $ 366 | $ 0 | $ 0 | $ 0 |
Accounts and notes receivable trade | 859 | 846 | ||
Inventories | 972 | 1,052 | ||
Prepaid expenses and other | 104 | 43 | ||
Total current assets | 2,301 | 1,941 | ||
Property, plant and equipment | 9,015 | 9,282 | ||
Less: Accumulated depreciation | (5,838) | (5,974) | ||
Net property, plant and equipment | 3,177 | 3,308 | 2,972 | |
Goodwill | 166 | 198 | 198 | |
Other intangible assets, net | 10 | 11 | ||
Investments in affiliates | 136 | 124 | 123 | |
Investment in subsidiaries | 0 | |||
Intercompany notes receivable | 0 | |||
Other assets | 508 | 377 | ||
Total assets | 6,298 | 5,959 | ||
Current liabilities: | ||||
Accounts payable | 973 | 1,046 | ||
Short-term borrowings and current maturities of long-term debt | 39 | 0 | ||
Intercompany payable | 0 | |||
Other accrued liabilities | 454 | 352 | ||
Total current liabilities | 1,466 | 1,398 | ||
Long-term debt | 3,915 | 0 | ||
Other liabilities | 553 | 464 | ||
Intercompany notes payable | 0 | |||
Deferred income taxes | 234 | 424 | ||
Total liabilities | $ 6,168 | $ 2,286 | ||
Commitments and contingent liabilities | ||||
Equity | ||||
Total Chemours stockholder's equity | $ 126 | $ 3,669 | ||
Noncontrolling interests | 4 | 4 | ||
Total equity | 130 | 3,673 | 3,217 | 3,167 |
Total liabilities and equity | 6,298 | 5,959 | ||
Parent Issuer | ||||
Current assets: | ||||
Cash | 0 | 0 | 0 | 0 |
Accounts and notes receivable trade | 0 | |||
Intercompany receivable | 3 | 0 | ||
Inventories | 0 | |||
Prepaid expenses and other | 0 | |||
Total current assets | 3 | 0 | ||
Property, plant and equipment | 0 | |||
Less: Accumulated depreciation | 0 | |||
Net property, plant and equipment | 0 | |||
Goodwill | 0 | |||
Other intangible assets, net | 0 | |||
Investments in affiliates | 0 | |||
Investment in subsidiaries | 3,105 | 3,669 | ||
Intercompany notes receivable | 1,150 | |||
Other assets | 19 | 0 | ||
Total assets | 4,277 | 3,669 | ||
Current liabilities: | ||||
Accounts payable | 0 | |||
Short-term borrowings and current maturities of long-term debt | 15 | |||
Intercompany payable | 202 | 0 | ||
Other accrued liabilities | 21 | 0 | ||
Total current liabilities | 238 | 0 | ||
Long-term debt | 3,913 | |||
Other liabilities | 0 | |||
Deferred income taxes | 0 | |||
Total liabilities | 4,151 | 0 | ||
Commitments and contingent liabilities | 0 | 0 | ||
Equity | ||||
Total Chemours stockholder's equity | 126 | 3,669 | ||
Noncontrolling interests | 0 | |||
Total equity | 126 | 3,669 | ||
Total liabilities and equity | 4,277 | 3,669 | ||
Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash | 95 | 0 | 0 | 0 |
Accounts and notes receivable trade | 344 | 355 | ||
Intercompany receivable | 459 | 316 | ||
Inventories | 493 | 510 | ||
Prepaid expenses and other | 49 | 12 | ||
Total current assets | 1,440 | 1,193 | ||
Property, plant and equipment | 7,070 | 7,107 | ||
Less: Accumulated depreciation | (4,899) | (4,848) | ||
Net property, plant and equipment | 2,171 | 2,259 | ||
Goodwill | 141 | 170 | ||
Other intangible assets, net | 10 | 11 | ||
Investments in affiliates | 9 | 0 | ||
Investment in subsidiaries | 0 | |||
Other assets | 275 | 332 | ||
Total assets | 4,046 | 3,965 | ||
Current liabilities: | ||||
Accounts payable | 637 | 614 | ||
Short-term borrowings and current maturities of long-term debt | 24 | |||
Intercompany payable | 54 | 42 | ||
Other accrued liabilities | 287 | 248 | ||
Total current liabilities | 1,002 | 904 | ||
Long-term debt | 2 | |||
Other liabilities | 456 | 454 | ||
Deferred income taxes | 173 | 380 | ||
Total liabilities | 1,633 | 1,738 | ||
Commitments and contingent liabilities | 0 | 0 | ||
Equity | ||||
Total Chemours stockholder's equity | 2,413 | 2,227 | ||
Noncontrolling interests | 0 | |||
Total equity | 2,413 | 2,227 | ||
Total liabilities and equity | 4,046 | 3,965 | ||
Non-Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash | 271 | 0 | 0 | 0 |
Accounts and notes receivable trade | 515 | 491 | ||
Intercompany receivable | 54 | 42 | ||
Inventories | 501 | 616 | ||
Prepaid expenses and other | 52 | 16 | ||
Total current assets | 1,393 | 1,165 | ||
Property, plant and equipment | 1,945 | 2,175 | ||
Less: Accumulated depreciation | (939) | (1,126) | ||
Net property, plant and equipment | 1,006 | 1,049 | ||
Goodwill | 25 | 28 | ||
Other intangible assets, net | 0 | |||
Investments in affiliates | 127 | 124 | ||
Investment in subsidiaries | 0 | |||
Intercompany notes receivable | 0 | |||
Other assets | 214 | 45 | ||
Total assets | 2,765 | 2,411 | ||
Current liabilities: | ||||
Accounts payable | 336 | 432 | ||
Intercompany payable | 260 | 316 | ||
Other accrued liabilities | 146 | 104 | ||
Total current liabilities | 742 | 852 | ||
Other liabilities | 97 | 10 | ||
Intercompany notes payable | 1,150 | |||
Deferred income taxes | 61 | 44 | ||
Total liabilities | 2,050 | 906 | ||
Commitments and contingent liabilities | 0 | 0 | ||
Equity | ||||
Total Chemours stockholder's equity | 711 | 1,501 | ||
Noncontrolling interests | 4 | 4 | ||
Total equity | 715 | 1,505 | ||
Total liabilities and equity | 2,765 | 2,411 | ||
Eliminations and Adjustments | ||||
Current assets: | ||||
Cash | 0 | 0 | $ 0 | $ 0 |
Accounts and notes receivable trade | 0 | |||
Intercompany receivable | (516) | (358) | ||
Inventories | (22) | (74) | ||
Prepaid expenses and other | 3 | 15 | ||
Total current assets | (535) | (417) | ||
Property, plant and equipment | 0 | |||
Less: Accumulated depreciation | 0 | |||
Net property, plant and equipment | 0 | |||
Goodwill | 0 | |||
Other intangible assets, net | 0 | |||
Investments in affiliates | 0 | |||
Investment in subsidiaries | (3,105) | (3,669) | ||
Intercompany notes receivable | (1,150) | |||
Other assets | 0 | |||
Total assets | (4,790) | (4,086) | ||
Current liabilities: | ||||
Accounts payable | 0 | 0 | ||
Intercompany payable | (516) | (358) | ||
Other accrued liabilities | 0 | |||
Total current liabilities | (516) | (358) | ||
Other liabilities | 0 | 0 | ||
Intercompany notes payable | (1,150) | |||
Deferred income taxes | 0 | |||
Total liabilities | (1,666) | (358) | ||
Commitments and contingent liabilities | 0 | 0 | ||
Equity | ||||
Total Chemours stockholder's equity | (3,124) | (3,728) | ||
Noncontrolling interests | 0 | |||
Total equity | (3,124) | (3,728) | ||
Total liabilities and equity | $ (4,790) | $ (4,086) |
Guarantor Condensed Consolid127
Guarantor Condensed Consolidating Financial Information - Condensed Consolidating Statements of Cash Flows (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||
Cash provided by operating activities | $ 182 | $ 505 | $ 798 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||
Purchases of property, plant and equipment | (519) | (604) | (438) |
Proceeds from sales of assets, net | 12 | 32 | 14 |
Foreign exchange contract settlements | 42 | 0 | 0 |
Investment in affiliates | $ (32) | (8) | 0 |
Intercompany investing activities | |||
Other investing activities | $ 0 | 20 | 0 |
Cash used for investing activities | (497) | (560) | (424) |
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||
Proceeds from issuance of debt, net | $ 3,491 | 0 | 0 |
Intercompany short-term borrowings, net | |||
Debt repayments | $ 10 | 0 | 0 |
Dividends paid | 105 | 0 | 0 |
Debt issuance costs | 79 | 0 | 0 |
Cash provided at separation by DuPont | 247 | 0 | 0 |
Net transfers (to) from DuPont | (2,857) | 55 | (374) |
Cash provided by (used for) financing activities | 687 | 55 | (374) |
Effect of exchange rate changes on cash | (6) | 0 | 0 |
Increase in cash | 366 | 0 | 0 |
Cash at beginning of year | 0 | 0 | 0 |
Cash at end of year | 366 | 0 | 0 |
Parent Issuer | |||
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||
Cash provided by operating activities | (119) | 0 | 0 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||
Purchases of property, plant and equipment | 0 | 0 | 0 |
Proceeds from sales of assets, net | 0 | 0 | 0 |
Foreign exchange contract settlements | 0 | ||
Investment in affiliates | 0 | 0 | |
Intercompany investing activities | 0 | ||
Other investing activities | 0 | ||
Cash used for investing activities | 0 | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||
Proceeds from issuance of debt, net | 3,489 | ||
Intercompany short-term borrowings, net | 202 | ||
Debt repayments | (8) | ||
Dividends paid | (105) | ||
Debt issuance costs | (79) | ||
Cash provided at separation by DuPont | 0 | ||
Net transfers (to) from DuPont | (3,380) | 0 | 0 |
Cash provided by (used for) financing activities | 119 | 0 | 0 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Increase in cash | 0 | 0 | 0 |
Cash at beginning of year | 0 | 0 | 0 |
Cash at end of year | 0 | 0 | 0 |
Guarantor Subsidiaries | |||
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||
Cash provided by operating activities | 171 | 302 | 388 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||
Purchases of property, plant and equipment | (292) | (287) | (200) |
Proceeds from sales of assets, net | 6 | 30 | 8 |
Foreign exchange contract settlements | 42 | ||
Investment in affiliates | 0 | 0 | |
Intercompany investing activities | (202) | ||
Other investing activities | 20 | ||
Cash used for investing activities | (446) | (237) | (192) |
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||
Proceeds from issuance of debt, net | 2 | ||
Intercompany short-term borrowings, net | 0 | ||
Debt repayments | (2) | ||
Dividends paid | 0 | ||
Debt issuance costs | 0 | ||
Cash provided at separation by DuPont | 87 | ||
Net transfers (to) from DuPont | 283 | (65) | (196) |
Cash provided by (used for) financing activities | 370 | (65) | (196) |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Increase in cash | 95 | 0 | 0 |
Cash at beginning of year | 0 | 0 | 0 |
Cash at end of year | 95 | 0 | 0 |
Non-Guarantor Subsidiaries | |||
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||
Cash provided by operating activities | 121 | 208 | 409 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||
Purchases of property, plant and equipment | (227) | (317) | (238) |
Proceeds from sales of assets, net | 6 | 2 | 6 |
Foreign exchange contract settlements | 0 | ||
Investment in affiliates | (32) | (8) | |
Intercompany investing activities | 0 | ||
Other investing activities | 0 | ||
Cash used for investing activities | (253) | (323) | (232) |
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||
Proceeds from issuance of debt, net | 0 | ||
Intercompany short-term borrowings, net | 0 | ||
Debt repayments | 0 | ||
Dividends paid | 0 | ||
Debt issuance costs | 0 | ||
Cash provided at separation by DuPont | 160 | ||
Net transfers (to) from DuPont | 249 | 115 | (177) |
Cash provided by (used for) financing activities | 409 | 115 | (177) |
Effect of exchange rate changes on cash | (6) | 0 | 0 |
Increase in cash | 271 | 0 | 0 |
Cash at beginning of year | 0 | 0 | 0 |
Cash at end of year | 271 | 0 | 0 |
Eliminations and Adjustments | |||
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||
Cash provided by operating activities | 9 | 9 | 1 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||
Purchases of property, plant and equipment | 0 | 0 | 0 |
Proceeds from sales of assets, net | 0 | 0 | 0 |
Foreign exchange contract settlements | 0 | ||
Investment in affiliates | 0 | 0 | |
Intercompany investing activities | 202 | ||
Other investing activities | 0 | ||
Cash used for investing activities | 202 | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||
Proceeds from issuance of debt, net | 0 | ||
Intercompany short-term borrowings, net | (202) | ||
Debt repayments | 0 | ||
Dividends paid | 0 | ||
Debt issuance costs | 0 | ||
Cash provided at separation by DuPont | 0 | ||
Net transfers (to) from DuPont | (9) | 5 | (1) |
Cash provided by (used for) financing activities | (211) | 5 | (1) |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Increase in cash | 0 | 0 | 0 |
Cash at beginning of year | 0 | 0 | 0 |
Cash at end of year | $ 0 | $ 0 | $ 0 |