Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Chemours Co | |
Entity Central Index Key | 1,627,223 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Trading Symbol | CC | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 177,911,882 |
Interim Consolidated Statements
Interim Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 1,730 | $ 1,437 |
Cost of goods sold | 1,193 | 1,081 |
Gross profit | 537 | 356 |
Selling, general, and administrative expense | 143 | 150 |
Research and development expense | 20 | 19 |
Restructuring, asset-related, and other charges, net | 10 | 12 |
Total expenses | 173 | 181 |
Equity in earnings of affiliates | 12 | 7 |
Interest expense, net | (52) | (51) |
Other income, net | 57 | 42 |
Income before income taxes | 381 | 173 |
Provision for income taxes | 84 | 22 |
Net income | 297 | 151 |
Less: Net income attributable to non-controlling interests | 0 | 1 |
Net income attributable to Chemours | $ 297 | $ 150 |
Per share data | ||
Basic earnings per share of common stock | $ 1.63 | $ 0.82 |
Diluted earnings per share of common stock | 1.58 | 0.79 |
Dividends per share of common stock | $ 0.03 |
Interim Consolidated Statement3
Interim Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income, pre-tax | $ 381 | $ 173 |
Net Income, tax | (84) | (22) |
Net income | 297 | 151 |
Other comprehensive (loss) income: | ||
Unrealized loss on net investment hedge, pre tax | (34) | (10) |
Unrealized loss on netinvestment hedge, tax | 8 | 0 |
Unrealized loss on netinvestment hedge, after tax | (26) | (10) |
Cumulative translation adjustment, pre-tax | 108 | 103 |
Cumulative translation adjustment, tax | 0 | 0 |
Cumulative translation adjustment, after-tax | 108 | 103 |
Defined benefit plans: | ||
Effect of foreign exchange rates, pre-tax | (9) | (10) |
Effect of foreign exchange rates, tax | 0 | 2 |
Effect of foreign exchange rates, after-tax | (9) | (8) |
Amortization of actuarial loss, pre-tax | 4 | 5 |
Amortization of actuarial loss, tax | (1) | (1) |
Amortization of actuarial loss, after-tax | 3 | 4 |
Defined benefit plans, net, pre-tax | (5) | (5) |
Defined benefit plans, net, tax | (1) | 1 |
Defined benefit plans, net, after-tax | (6) | (4) |
Other comprehensive income,pre-tax | 69 | 88 |
Other comprehensive income, tax | 7 | 1 |
Other comprehensive income, after tax | 76 | 89 |
Comprehensive income, pre-tax | 450 | 261 |
Comprehensive income, tax | (77) | (21) |
Comprehensive income, after-tax | 373 | 240 |
Less: Comprehensive income attributable to non-controlling interests, pre-tax | 0 | 1 |
Less: Comprehensive income attributable to non-controlling interests, tax | 0 | 0 |
Less: Comprehensive income attributable to non-controlling interests, after-tax | 0 | 1 |
Comprehensive income attributable to Chemours,pre tax | 450 | 260 |
Comprehensive income attributable to Chemours, tax | (77) | (21) |
Comprehensive income attributable to Chemours, after-tax | $ 373 | $ 239 |
Interim Consolidated Balance Sh
Interim Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 1,434 | $ 1,556 |
Accounts and notes receivable, net | 1,083 | 919 |
Inventories | 992 | 935 |
Prepaid expenses and other | 75 | 83 |
Total current assets | 3,584 | 3,493 |
Property, plant, and equipment | 8,719 | 8,511 |
Less: Accumulated depreciation | (5,614) | (5,503) |
Property, plant, and equipment, net | 3,105 | 3,008 |
Goodwill and other intangible assets, net | 165 | 166 |
Investments in affiliates | 166 | 173 |
Other assets | 464 | 453 |
Total assets | 7,484 | 7,293 |
Current liabilities: | ||
Accounts payable | 1,121 | 1,075 |
Current maturities of long-term debt | 14 | 15 |
Other accrued liabilities | 487 | 558 |
Total current liabilities | 1,622 | 1,648 |
Long-term debt, net | 4,141 | 4,097 |
Deferred income taxes | 244 | 208 |
Other liabilities | 475 | 475 |
Total liabilities | 6,482 | 6,428 |
Commitments and contingent liabilities | ||
Equity | ||
Common stock (par value $0.01 per share; 810,000,000 shares authorized; 185,903,112 shares issued and 178,537,554 shares outstanding at March 31, 2018; 185,343,034 shares issued and 182,956,628 shares outstanding at December 31, 2017) | 2 | 2 |
Treasury stock at cost (7,365,558 shares at March 31, 2018; 2,386,406 shares at December 31, 2017) | (361) | (116) |
Additional paid-in capital | 846 | 837 |
Retained earnings | 876 | 579 |
Accumulated other comprehensive loss | (366) | (442) |
Total Chemours stockholders’ equity | 997 | 860 |
Non-controlling interests | 5 | 5 |
Total equity | 1,002 | 865 |
Total liabilities and equity | $ 7,484 | $ 7,293 |
Interim Consolidated Balance S5
Interim Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Common stock, shares authorized (in shares) | 810,000,000 | 810,000,000 |
Common stock , par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares Issued (in shares) | 185,903,112 | 185,343,034 |
Common stock, shares outstanding (in shares) | 178,537,554 | 182,956,628 |
Treasury stock (in shares) | 7,365,558 | 2,386,406 |
Interim Consolidated Statement6
Interim Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-In Capital [Member] | (Accumulated Deficit) Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Non-controlling Interests [Member] |
Total stockholders' equity, beginning balance at Dec. 31, 2016 | $ 104 | $ 2 | $ 789 | $ (114) | $ (577) | $ 4 | |
Shares, beginning balance at Dec. 31, 2016 | 182,600,533 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock issued - compensation plans (in shares) | 415,518 | ||||||
Exercise of stock options, net | 20 | 20 | |||||
Exercise of stock options, net (in shares) | 1,382,363 | ||||||
Stock-based compensation expense | 6 | 6 | |||||
Cancellation of unissued stock awards withheld to cover taxes | (7) | (7) | |||||
Net income | 151 | 150 | 1 | ||||
Dividends paid | (5) | (5) | |||||
Other comprehensive income | 89 | 89 | |||||
Total stockholders' equity, ending balance at Mar. 31, 2017 | 358 | $ 2 | 808 | 31 | (488) | 5 | |
Shares, ending balance at Mar. 31, 2017 | 184,398,414 | ||||||
Total stockholders' equity, beginning balance at Dec. 31, 2017 | 865 | $ 2 | $ (116) | 837 | 579 | (442) | 5 |
Shares, beginning balance at Dec. 31, 2017 | 182,956,628 | 2,386,406 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock issued - compensation plans (in shares) | 286,618 | ||||||
Exercise of stock options, net | 5 | 5 | |||||
Exercise of stock options, net (in shares) | 273,460 | ||||||
Purchases of treasury stock at cost | (245) | $ (245) | $ (245) | ||||
Purchases of treasury stock at cost (in shares) | (4,979,152) | 4,979,152 | |||||
Stock-based compensation expense | 9 | 9 | |||||
Cancellation of unissued stock awards withheld to cover taxes | (5) | (5) | |||||
Net income | 297 | 297 | |||||
Other comprehensive income | 76 | 76 | |||||
Total stockholders' equity, ending balance at Mar. 31, 2018 | $ 1,002 | $ 2 | $ (361) | $ 846 | $ 876 | $ (366) | $ 5 |
Shares, ending balance at Mar. 31, 2018 | 178,537,554 | 7,365,558 |
Interim Consolidated Statement7
Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities | ||
Net income | $ 297 | $ 151 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 70 | 71 |
Gain on sale of assets and businesses | (42) | (16) |
Equity in earnings of affiliates, net | 17 | (7) |
Amortization of deferred financing costs and issuance discount | 3 | 3 |
Deferred tax provision | 35 | 5 |
Other operating charges and credits, net | 8 | 10 |
Decrease (increase) in operating assets: | ||
Accounts and notes receivable, net | (150) | (103) |
Inventories and other operating assets | (29) | (31) |
(Decrease) increase in operating liabilities: | ||
Accounts payable and other operating liabilities | (13) | (42) |
Cash provided by operating activities | 196 | 41 |
Cash flows from investing activities | ||
Purchases of property, plant, and equipment | (102) | (69) |
Proceeds from sales of assets and businesses, net | 39 | 9 |
Foreign exchange contract settlements, net | 5 | (3) |
Cash used for investing activities | (58) | (63) |
Cash flows from financing activities | ||
Debt repayments | (4) | (4) |
Purchases of treasury stock at cost | (240) | 0 |
Proceeds from exercised stock options, net | 5 | 20 |
Tax payments related to withholdings on vested restricted stock units | (1) | 0 |
Payment of dividends | (31) | (5) |
Cash (used for) provided by financing activities | (271) | 11 |
Effect of exchange rate changes on cash and cash equivalents | 11 | 7 |
Decrease in cash and cash equivalents | (122) | (4) |
Cash and cash equivalents at January 1, | 1,556 | 902 |
Cash and cash equivalents at March 31, | 1,434 | 898 |
Non-cash investing and financing activities: | ||
Changes in property, plant, and equipment included in accounts payable | (1) | 14 |
Obligations incurred under build-to-suit lease arrangement | 11 | 0 |
Purchases of treasury stock not settled by quarter-end | 15 | 0 |
Tax payments accrued for withholdings on vested restricted stock units | $ 4 | $ 0 |
Background, Description of the
Background, Description of the Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Background, Description of the Business, and Basis of Presentation | Note 1. Background, Description of the Business, and Basis of Presentation The Chemours Company (Chemours, or the Company) is a leading, global provider of performance chemicals that are key inputs in end-products and processes in a variety of industries. 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, electronics, mining, and oil refining. The Company’s principal products include refrigerants, industrial fluoropolymer resins, sodium cyanide, performance chemicals and intermediates, and titanium dioxide (TiO 2 2 The accompanying interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) in the United States of America (U.S.) for interim financial information. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) considered necessary for a fair statement of the results for interim periods have been included. The Company’s results for interim periods should not be considered indicative of its results for a full year, and the year-end consolidated balance sheet does not include all of the disclosures required by GAAP. As such, these interim consolidated financial statements should be read in conjunction with the Consolidated Financial Statements Unless the context otherwise requires, references herein to “The Chemours Company,” “Chemours,” “the Company,” “our Company,” “we,” “us,” and “our” refer to The Chemours Company and its consolidated subsidiaries. References herein to “DuPont” refer to E. I. du Pont de Nemours and Company, a Delaware corporation, and its consolidated subsidiaries (other than Chemours and its consolidated subsidiaries), unless the context otherwise requires. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Note 2. Recent Accounting Pronouncements Accounting Guidance Issued and Not Yet Adopted Leases In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) The Company will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, which includes a number of optional practical expedients that the Company may elect to apply. The provisions of ASU No. 2016-02 are effective for the Company’s fiscal year beginning January 1, 2019, including interim periods within that fiscal year. At adoption, the Company will recognize a right-of-use asset and a lease liability initially measured at the present value of its operating lease payments. The Company is currently evaluating the impacts of adopting this guidance on its financial position, results of operations, and cash flows. Derivatives and Hedging In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income Recently Adopted Accounting Guidance Revenue from Contracts with Customers In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Effective January 1, 2018, Chemours adopted the new revenue recognition guidance contained in Topic 606 using the modified retrospective transition method. The Company elected to utilize a practical expedient allowed under the modified retrospective transition method to apply the new standard only to contracts that are not completed on the date of initial adoption. In applying this guidance, the Company evaluated its population of open contracts with customers on January 1, 2018 and determined that the impact of adopting Topic 606 was not material to its consolidated financial statements as a whole, and no cumulative adjustment to the Company’s opening retained earnings balance was required. As a result of applying this new guidance, there are changes to the classification of certain amounts in the consolidated statements of operations. Certain royalty income amounts for trademark licensing arrangements that were previously reflected as a component of other income, net in the consolidated statements of operations will now be reflected as a component of net sales, which amounted to $2 for the three months ended March 31, 2018. Additionally, certain expenses related to the Company’s provision of technical services to customers that were previously reflected as a component of selling, general, and administrative expense in the consolidated statements of operations will now be reflected as a component of the cost of goods sold, which amounted to $1 for the three months ended March 31, 2018. Under the modified retrospective transition method, the Company’s comparative financial information as of and for the three months ended March 31, 2017 and as of December 31, 2017 has not been restated, and as such, continues to be reported using the accounting standards in effect during those time periods. The following table sets forth the impacts of the adoption of Topic 606 on the Company’s consolidated statements of operations for the three months ended March 31, 2018. Three Months Ended March 31, 2018 Without Topic 606 Topic 606 Adjustments As Reported Net sales $ 1,728 $ 2 $ 1,730 Cost of goods sold 1,192 1 1,193 Gross profit 536 1 537 Selling, general, and administrative expense 144 (1 ) 143 Research and development expense 20 — 20 Restructuring, asset-related, and other charges, net 10 — 10 Total expenses 174 (1 ) 173 Equity in earnings of affiliates 12 — 12 Interest expense, net (52 ) — (52 ) Other income, net 59 (2 ) 57 Income before income taxes 381 — 381 Provision for income taxes 84 — 84 Net income 297 — 297 Less: Net income attributable to non-controlling interests — — — Net income attributable to Chemours $ 297 $ — $ 297 The adoption of Topic 606 did not impact the Company’s consolidated balance sheets or consolidated statements of cash flows as of and for the three months ended March 31, 2018 and is not expected to have a material impact on the Company’s financial position, results of operations, or cash flows in future periods. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued various updates to ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments Clarifying the Definition of a Business In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business Retirement Benefits In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715) The following table sets forth a reclassification of the Company’s non-operating pension and other post-retirement employee benefit income for the three months ended March 31, 2017. Three Months Ended March 31, 2017 ASU 2017-07 As Reported Adjustments As Reclassified Net sales $ 1,437 $ — $ 1,437 Cost of goods sold 1,079 2 1,081 Gross profit 358 (2 ) 356 Selling, general, and administrative expense 144 6 150 Research and development expense 19 — 19 Restructuring, asset-related, and other charges, net 12 — 12 Total expenses 175 6 181 Equity in earnings of affiliates 7 — 7 Interest expense, net (51 ) — (51 ) Other income, net 34 8 42 Income before income taxes 173 — 173 Provision for income taxes 22 — 22 Net income 151 — 151 Less: Net income attributable to non-controlling interests 1 — 1 Net income attributable to Chemours $ 150 $ — $ 150 |
Significant Transactions and Ev
Significant Transactions and Events | 3 Months Ended |
Mar. 31, 2018 | |
Significant Transactions And Events [Abstract] | |
Significant Transactions and Events | Note 3. Significant Transactions and Events Sale of Land in Linden, New Jersey In March 2016, the Company entered into an agreement to sell a 210-acre plot of land that formerly housed a DuPont manufacturing site in Linden, New Jersey. The land was assigned to Chemours in connection with its separation from DuPont, and the Company completed the sale in March 2018 for a gain of $42 and net cash proceeds of $39. As part of the sales agreement, the buyer has agreed to assume certain costs associated with ongoing environmental remediation activities at the site amounting to $3, which have been reflected as a component of prepaid expenses and other in the consolidated balance sheets. Chemours remains responsible for certain other ongoing environmental remediation activities at the site, which were previously accrued as a component of other liabilities in the consolidated balance sheets. Substantially all of the assets associated with the Linden site had been written-off or fully depreciated prior to its sale. |
Net Sales
Net Sales | 3 Months Ended |
Mar. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Net Sales | Note 4. Net Sales Revenue Recognition Prior to the adoption of Topic 606, Chemours recognized revenue when the earnings process was complete. Revenue for product sales was recognized when product was shipped to the customer in accordance with the terms of the agreement, when title and the risk of loss were transferred, when collectability was reasonably assured, and when pricing was fixed or determinable. Any payments received in advance were recorded as deferred revenue and recognized as shipments were made and title, ownership, and the risk of loss were transferred to the customer. The Company accrued for sales returns and other allowances based on its historical experience, with cash sales incentives reflected as a reduction in revenue and non-cash sales incentives reflected as a charge to the cost of goods sold contemporaneously with the related revenue or selling expense, depending on the nature of the incentive. Amounts billed to customers for shipping and handling fees were included in net sales, and the costs incurred by the Company for the delivery of goods were classified as a component of the cost of goods sold in the consolidated statements of operations. Taxes on revenue-producing transactions were excluded from net sales. Licensing and royalty income was recognized as a component of other income, net in the consolidated statements of operations in accordance with agreed upon terms, when performance obligations were satisfied, when collectability was reasonably assured, and when pricing was fixed or determinable. With the adoption of Topic 606, Chemours recognizes revenue using a five-step model resulting in revenue being recognized as performance obligations within a contract have been satisfied. The steps within that model include: (i) identifying the existence of a contract with a customer; (ii) identifying the performance obligations within the contract; (iii) determining the contract’s transaction price; (iv) allocating the transaction price to the contract’s performance obligations; and, (v) recognizing revenue as the contract’s performance obligations are satisfied. A contract with a customer exists when: (i) the Company enters into an enforceable agreement that defines each party’s rights regarding the goods or services to be transferred, and the related payment terms; (ii) the agreement has commercial substance; and, (iii) it is probable that the Company will collect the consideration to which it is entitled to in the exchange. A performance obligation is a promise in a contract to transfer a distinct good or service, or a series of distinct goods or services to a customer and serves as the unit of account for Topic 606. The transaction price is the customary amount of consideration that the Company expects to be entitled to in exchange for a transfer of the promised goods or services to a customer, excluding any amounts collected by the Company on behalf of third-parties (e.g., sales and use taxes). Judgment is required to apply the principles-based, five-step model for revenue recognition outlined in Topic 606. Management is required to make certain estimates and assumptions about the Company’s contracts with its customers, including, among others, the nature and extent of its performance obligations, its transaction price amounts and any allocations thereof, the critical events which constitute satisfaction of its performance obligations, and when control of any promised goods or services is transferred to its customers. The Company’s revenue from contracts with customers is reflected in the consolidated statements of operations as net sales, the vast majority of which represents product sales that consist of a single performance obligation. Product sales to customers are made under a purchase order (PO), or in certain cases, in accordance with the terms of a master services agreement (MSA) or similar arrangement, which documents the rights and obligations of each party to the contract. When a customer submits a PO for product or requests product under an MSA, a contract for a specific quantity of distinct goods at a specified price is created, and the Company’s performance obligation under the contract is satisfied when control of the product is transferred to the customer, which is indicated by shipment of the product and transfer of title and the risk of loss to the customer. Revenue is recognized on consignment sales when control transfers to the customer, generally at the point of customer usage of the product. The transaction price for product sales is generally the amount specified in the PO or in the request under an MSA; however, as is common in Chemours’ industry, the Company offers variable consideration in the form of rebates, volume discounts, early payment discounts, pricing based on formulas or indices, price matching, and guarantees to certain customers. Such amounts are included in the Company’s estimated transaction price using either the expected value method or the most-likely amount, depending on the nature of the variable consideration included in the contract. The Company regularly assesses its customers’ creditworthiness, and product sales are made based on established credit limits. Payment terms for the Company’s invoices are typically less than 90 days. The Company also licenses the right to access certain of its trademarks to customers under specified terms and conditions in certain arrangements, which is recognized as a component of net sales in the consolidated statements of operations under Topic 606. Under such arrangements, the Company may receive a royalty payment for a trademark license that is entered into on a stand-alone basis or incorporated into an overall product sales arrangement. Royalty income is generally based on customer sales and recognized under the sales-based exception as the customer sale occurs. When minimum guaranteed royalty amounts are included in the transaction price, the Company recognizes royalty income ratably over the license period for the minimum amount. When there is no consideration specified for the use of the Company’s trademark, the entire transaction price is recognized in connection with the transfer of control of product. Royalty income resulting from the right to use the Company’s technology is considered outside the scope of Topic 606 as it is not a part of the Company’s ongoing major or central activities, and consistent with past practice, is recognized as a component of other income, net in the consolidated statements of operations in accordance with agreed upon terms, when performance obligations are satisfied, when collectability is reasonably assured, and when pricing is fixed or determinable. Consistent with the fact that the vast majority of the Company’s payment terms are less than 90 days from the point at which control of the promised goods or services is transferred, no adjustments have been made for the effects of a significant financing component under Topic 606. Additionally, the Company has elected to recognize incremental costs associated with obtaining contracts as an expense when incurred if the amortization period of the assets that the Company would have recognized is one year or less. Amounts billed to customers for shipping and handling fees are considered a fulfillment cost and are included in net sales, and the costs incurred by the Company for the delivery of goods are classified as a component of the cost of goods sold in the consolidated statements of operations. Disaggregation of Net Sales The following table sets forth a disaggregation of the Company’s net sales by geographic region, product group, and segment for the three months ended March 31, 2018. Three Months Ended March 31, 2018 Chemical Titanium Fluoroproducts Solutions Technologies Total Net sales by geographic region (1) North America $ 303 $ 81 $ 233 $ 617 Asia Pacific 153 19 242 414 Europe, the Middle East, and Africa 222 5 247 474 Latin America (2) 54 39 132 225 Total net sales $ 732 $ 144 $ 854 $ 1,730 Net sales by product group Fluorochemicals $ 395 $ — $ — $ 395 Fluoropolymers 337 — — 337 Mining solutions — 66 — 66 Performance chemicals and intermediates — 78 — 78 Titanium dioxide and other minerals — — 854 854 Total net sales $ 732 $ 144 $ 854 $ 1,730 (1) Net sales are attributed to countries based on customer location. (2) Latin America includes Mexico. Substantially all of the Company’s net sales are derived from goods and services transferred at a point in time. Contract Balances The Company’s assets and liabilities from contracts with customers constitute accounts receivable - trade, deferred revenue, and customer rebates. An amount for accounts receivable - trade is recorded when the right to consideration under a contract becomes unconditional. An amount for deferred revenue is recorded when consideration is received prior to the conclusion that a contract exists, or when a customer transfers consideration prior to the Company satisfying its performance obligations under a contract. Customer rebates represent an expected refund liability to a customer based on a contract. In contracts with customers where a rebate is offered, it is generally applied retroactively based on the achievement of a certain sales threshold. As revenue is recognized, the Company estimates whether or not the sales threshold will be achieved to determine the amount of variable consideration to include in the transaction price. The following table sets forth the Company’s contract balances from contracts with customers at March 31, 2018 and December 31, 2017. March 31, 2018 December 31, 2017 Accounts receivable - trade, net (1) $ 1,016 $ 847 Customer rebates 54 83 (1) Accounts receivable - trade, net includes trade notes receivable of $3 and $1 and is net of allowances for doubtful accounts of $6 and $5 at March 31, 2018 and December 31, 2017, respectively. Such allowances are equal to the estimated uncollectible amounts. The Company’s deferred revenue balance as of March 31, 2018 and December 31, 2017 was not significant. Additionally, changes in the Company’s deferred revenue balance resulting from additions for advance payments and deductions for amounts recognized in net sales during the three months ended March 31, 2018 were not significant. For the three months ended March 31, 2018, the amount of revenue recognized from performance obligations satisfied in prior periods (e.g., due to changes in transaction price) was not significant. There were no other contract asset balances or capitalized costs associated with obtaining or fulfilling customer contracts as of March 31, 2018 or December 31, 2017. Remaining Performance Obligations Certain of the Company’s MSA or other arrangements contain take-or-pay clauses, whereby customers are required to purchase a fixed minimum quantity of product during a specified period, or pay the Company for such orders, even if not requested by the customer. The Company considers these take-or-pay clauses to be an enforceable contract, and as such, the legally-enforceable minimum amounts under such an arrangement are considered to be outstanding performance obligations on contracts with an original expected duration greater than one year. As of March 31, 2018, Chemours had $87 of remaining performance obligations. The Company expects to recognize approximately 20% of its remaining performance obligations as revenue in 2018, an additional 25% in 2019, and the balance thereafter. The Company applies the practical expedient in Topic 606 and does not include remaining performance obligations that have original expected durations of one year or less, or amounts for variable consideration allocated to wholly-unsatisfied performance obligations or wholly-unsatisfied distinct goods that form part of a single performance obligation, if any. Amounts for contract renewals that are not yet exercised as of March 31, 2018 are also excluded. |
Restructuring, Asset-Related, a
Restructuring, Asset-Related, and Other Charges, Net | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring, Asset-Related, and Other Charges, Net | Note 5. Restructuring, Asset-related, and Other Charges, Net The following table sets forth the components of the Company’s restructuring, asset-related, and other charges, net for the three months ended March 31, 2018 and 2017. Three Months Ended March 31, 2018 2017 Employee separation charges $ 3 $ — Decommissioning and other charges, net 7 12 Total restructuring, asset-related, and other charges, net $ 10 $ 12 The following table sets forth the impacts of the Company’s restructuring programs to segment earnings for the three months ended March 31, 2018 and 2017. Three Months Ended March 31, 2018 2017 Plant and product line closures: Fluoroproducts $ — $ 3 Chemical Solutions 1 5 Titanium Technologies — 4 Total plant and product line closures 1 12 2017 Restructuring Program 9 — Total restructuring, asset-related, and other charges, net $ 10 $ 12 Plant and Product Line Closures In August 2015, in an effort to improve the profitability of the Company’s Fluoroproducts segment, management approved the closure of certain production lines in the segment’s U.S. manufacturing plants. For the three months ended March 31, 2017, the Company recorded additional decommissioning and dismantling-related charges of $3 for certain of these production lines. At December 31, 2017, the Company had substantially completed all actions related to the restructuring activities for certain of its production lines, which amounted to $17 in the aggregate, excluding non-cash asset-related charges. In the fourth quarter of 2015, the Company announced the completion of the strategic review of its Reactive Metals Solutions (RMS) business and the decision to stop production at its Niagara Falls, New York manufacturing plant. The RMS plant had approximately 200 employees and contractors impacted by this action, and production stopped at the plant in September 2016, when the Company immediately began actions to decommission the plant. For the three months ended March 31, 2018 and 2017, the Company recorded additional decommissioning and dismantling-related charges of $1 and $5, respectively. The Company expects to incur approximately $3 in additional restructuring charges for similar activities through the end of 2018, which will be expensed as incurred. As of March 31, 2018, the Company incurred, in the aggregate, $32 in restructuring charges related to these activities, excluding non-cash asset-related charges. In August 2015, the Company announced the closure of its Edge Moor, Delaware manufacturing plant. The Edge Moor plant produced TiO 2 2 In the first quarter of 2018, the Company began a project to demolish and remove several dormant, unused buildings at its Chambers Works site in Deepwater, New Jersey, which were assigned to Chemours in connection with its separation from DuPont. For the three months ended March 31, 2018, the Company incurred less than $1 in decommissioning and dismantling-related charges associated with these efforts. The Company expects to incur approximately $30 in additional restructuring charges related to its Chambers Works site through the end of 2020, which will be reflected in Corporate and Other, and will be expensed as incurred. 2017 Restructuring Program In 2017, the Company announced certain restructuring activities designed to further the cost savings and productivity improvements outlined under management’s transformation plan. These activities include, among other efforts: (i) outsourcing and further centralizing certain business process activities; (ii) consolidating existing, outsourced third-party information technology (IT) providers; and, (iii) implementing various upgrades to the Company’s current IT infrastructure. In 2017, the Company also announced a voluntary separation program (VSP) for certain eligible U.S. employees in an effort to better manage the anticipated future changes to its workforce. Employees who volunteered for, and were accepted under the VSP will receive certain financial incentives above the Company’s customary involuntary termination benefits to end their employment with Chemours after providing a mutually agreed-upon service period. Approximately 300 employees will separate from the Company by the end of 2018. An accrual representing the majority of these termination benefits, amounting to $18, was recognized in the fourth quarter of 2017. The remaining incremental, one-time financial incentives under the VSP will be recognized over the period that each participating employee continues to provide service to Chemours. For the three months ended March 31, 2018, the Company recorded additional charges of $9 related to its 2017 program. No such charges were recorded for the three months ended March 31, 2017. The cumulative amount incurred, in the aggregate, for the Company’s 2017 program amounted to $41 at March 31, 2018. As a result of its 2017 program, the Company expects to incur charges for restructuring-related activities and termination benefits of approximately $20 through the end of 2018, which will be expensed as incurred. The following table sets forth the change in the Company’s employee separation-related liabilities associated with its restructuring programs for the three months ended March 31, 2018. Titanium Technologies Site Closures Fluoroproducts Lines Shutdown Chemical Solutions Site Closures 2015 Global Restructuring Program 2017 Restructuring Program Total Balance at December 31, 2017 $ 1 $ — $ 2 $ 1 $ 23 $ 27 Charges to income — — — — 3 3 Payments — — (1 ) — (5 ) (6 ) Balance at March 31, 2018 $ 1 $ — $ 1 $ 1 $ 21 $ 24 At March 31, 2018, there are no significant outstanding liabilities related to the Company’s decommissioning and other restructuring-related charges. |
Other Income, Net
Other Income, Net | 3 Months Ended |
Mar. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Other Income, Net | Note 6. Other Income, Net The following table sets forth the components of the Company’s other income, net for the three months ended March 31, 2018 and 2017. Three Months Ended March 31, 2018 2017 Leasing, contract services, and miscellaneous income $ 3 $ 8 Royalty income (1) 5 5 Gain on sale of assets and businesses (2) 42 16 Exchange gains, net (3) — 5 Non-operating pension and other post-retirement employee benefit income 7 8 Total other income, net $ 57 $ 42 (1) Royalty income for the three months ended March 31, 2018 is primarily from technology licensing. Royalty income for the three months ended March 31, 2017 is primarily from technology and trademark licensing, portions of which are now reflected as a component of net sales in the consolidated statements of operations with the Company’s adoption of Topic 606. (2) For the three months ended March 31, 2018, gain on sale includes a $42 gain associated with the sale of the Company’s Linden, New Jersey site. For the three months ended March 31, 2017, gain on sale includes a $12 gain associated with the sale of the Company’s Edge Moor, Delaware site and a $4 gain associated with the sale of the Company’s land in Repauno, New Jersey that was previously deferred and realized upon meeting certain milestones. (3) Exchange gains, net includes gains and losses on foreign currency forward contracts. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7. Income Taxes For the three months ended March 31, 2018 and 2017, Chemours recorded a provision for income taxes of $84 and $22, respectively, resulting in effective income tax rates of approximately 22% and 13%, respectively. The Company’s provision for income taxes for the three months ended March 31, 2018 is inclusive of income tax expenses of $10 related to asset sales that took place in the first quarter of 2018 and $8 related to the impact of certain U.S. tax reform provisions, which are offset by $5 in income tax benefits related to windfalls on share-based payments. The Company’s income tax provision for the three months ended March 31, 2017 is inclusive of income tax expenses of $6 related to asset sales that took place in the first quarter of 2017, which are offset by $10 in income tax benefits related to windfalls on share-based payments. The remaining change in the Company’s effective tax rate from the prior year is primarily attributable to changes in its geographic mix of earnings. In connection with the new federal tax legislation commonly referred to as the Tax Cut and Jobs Act (Tax Act), the Company recorded provisional estimates for U.S. tax reform in its provision for income taxes for the year ended December 31, 2017 amounting to a net benefit of $3. Staff Accounting Bulletin No. 118 (SAB No. 118) issued by the U.S. Securities and Exchange Commission allows registrants to record provisional estimates for the Tax Act during a measurement period not to exceed one year from the enactment date, which was December 22, 2017. The impacts of the Tax Act may differ from the Company’s provisional estimates due to many factors, including, but not limited to, changes to its interpretations of the provisions in the Tax Act, U.S. Internal Revenue Service and U.S. Treasury guidance that may be issued, and actions that the Company may take. For the three months ended March 31, 2018, the Company has not recorded any adjustments to its provisional estimates. The Company is still evaluating the effects of the Tax Act’s provisions on its consolidated financial statements; however, the Company expects to complete its evaluation within the applicable measurement period, pursuant to SAB No. 118. As such, the Company’s provisional estimates for the Tax Act could change significantly within this period, resulting in a material impact to its financial position, results of operations, or cash flows. Each year, Chemours and/or its subsidiaries file income tax returns in U.S. federal and state jurisdictions and non-U.S. jurisdictions. These tax returns are subject to examination and possible challenge by the cognizant taxing authorities. Positions challenged by the taxing authorities may be settled or appealed by Chemours. As a result, income tax uncertainties are recognized in Chemours’ consolidated financial statements in accordance with accounting for income taxes under Topic 740, Income Taxes |
Earnings Per Share of Common St
Earnings Per Share of Common Stock | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share of Common Stock | Note 8. Earnings Per Share of Common Stock Reconciliations of the numerators and denominators for the Company’s basic and diluted earnings per share (EPS) calculations for the three months ended March 31, 2018 and 2017 are set forth in the following table. Three Months Ended March 31, 2018 2017 Numerator: Net income attributable to Chemours $ 297 $ 150 Denominator: Weighted-average number of common shares outstanding - basic 182,069,982 183,408,309 Dilutive effect of the Company’s employee compensation plans 6,263,215 5,741,621 Weighted-average number of common shares outstanding - diluted 188,333,197 189,149,930 Basic earnings per share of common stock $ 1.63 $ 0.82 Diluted earnings per share of common stock 1.58 0.79 The following table sets forth the average number of stock options that were anti-dilutive and, therefore, were not included in the Company’s diluted EPS calculations for the three months ended March 31, 2018 and 2017. Three Months Ended March 31, 2018 2017 Average number of stock options — 169,118 |
Accounts and Notes Receivable,
Accounts and Notes Receivable, Net | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Accounts and Notes Receivable, Net | Note 9. Accounts and Notes Receivable, Net The following table sets forth the components of the Company’s accounts and notes receivable, net at March 31, 2018 and December 31. 2017. March 31, 2018 December 31, 2017 Accounts receivable - trade, net (1) $ 1,016 $ 847 VAT, GST, and other taxes (2) 57 54 Other receivables (3) 10 18 Total accounts and notes receivable, net $ 1,083 $ 919 (1) Accounts receivable - trade, net includes trade notes receivable of $3 and $1 and is net of allowances for doubtful accounts of $6 and $5 at March 31, 2018 and December 31, 2017, respectively. Such allowances are equal to the estimated uncollectible amounts. (2) Value added tax (VAT) and goods and services tax (GST) for various jurisdictions. (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 approximately $1 for the three months ended March 31, 2018 and 2017. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Net [Abstract] | |
Inventories | Note 10. Inventories The following table sets forth the components of the Company’s inventories at March 31, 2018 and December 31, 2017. March 31, 2018 December 31, 2017 Finished products $ 695 $ 648 Semi-finished products 164 164 Raw materials, stores, and supplies 326 313 Inventories before LIFO adjustment 1,185 1,125 Less: Adjustment of inventories to LIFO basis (193 ) (190 ) Total inventories $ 992 $ 935 Inventory values, before last-in, first-out (LIFO) adjustment, are generally determined by the average cost method, which approximates current cost. Inventories are valued under the LIFO method at substantially all U.S. locations, which comprised $542 and $509, or 46% and 45%, of inventories before the LIFO adjustments at March 31, 2018 and December 31, 2017, respectively. The remainder of inventory held in international locations and certain U.S. locations is valued under the average cost method. |
Property, Plant, and Equipment,
Property, Plant, and Equipment, Net | 3 Months Ended |
Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, Plant, and Equipment, Net | Note 11. Property, Plant, and Equipment, Net The following table sets forth the components of the Company’s property, plant, and equipment, net at March 31, 2018 and December 31, 2017. March 31, 2018 December 31, 2017 Equipment $ 7,047 $ 6,961 Buildings 905 875 Construction-in-progress 608 520 Land 123 119 Mineral rights 36 36 Property, plant, and equipment 8,719 8,511 Less: Accumulated depreciation (5,614 ) (5,503 ) Total property, plant, and equipment, net $ 3,105 $ 3,008 Depreciation expense amounted to $69 and $70 for the three months ended March 31, 2018 and 2017, respectively. Property, plant, and equipment, net includes gross assets under capital leases of $7 at March 31, 2018 and December 31, 2017, and a build-to-suit lease asset of $19 and $8 at March 31, 2018 and December 31, 2017, respectively. |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets | Note 12. Other Assets The following table sets forth the components of the Company’s other assets at March 31, 2018 and December 31, 2017. March 31, 2018 December 31, 2017 Capitalized repair and maintenance costs $ 102 $ 117 Pension assets (1) 282 260 Deferred income taxes 46 40 Miscellaneous (2) 34 36 Total other assets $ 464 $ 453 (1) Pension assets represent the funded status of certain of the Company's long-term employee benefit plans. (2) Miscellaneous includes deferred financing fees related to the Company’s senior secured revolving credit facility of $8 and $9 at March 31, 2018 and December 31, 2017, respectively, and Company-owned life insurance policies on former key executives of a U.S. subsidiary. These life insurance policies have a cash surrender value of $64 at March 31, 2018 and December 31, 2017, and are presented net of outstanding loans from the policy issuer of $64 and $63 at March 31, 2018 and December 31, 2017, respectively. |
Accounts Payable
Accounts Payable | 3 Months Ended |
Mar. 31, 2018 | |
Payables And Accruals [Abstract] | |
Accounts Payable | Note 13. Accounts Payable The following table sets forth the components of the Company’s accounts payable at March 31, 2018 and December 31, 2017. March 31, 2018 December 31, 2017 Trade payables $ 1,094 $ 1,008 Dividends payable (1) — 31 VAT and other payables 27 36 Total accounts payable $ 1,121 $ 1,075 (1) Represents a $0.17 per share dividend declared in December 2017, which was paid on March 15, 2018 to the Company’s shareholders of record as of the close of business on February 15, 2018. |
Other Accrued Liabilities
Other Accrued Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Payables And Accruals [Abstract] | |
Other Accrued Liabilities | Note 14. Other Accrued Liabilities The following table sets forth the components of the Company’s other accrued liabilities at March 31, 2018 and December 31, 2017. March 31, 2018 December 31, 2017 Compensation and other employee-related costs $ 94 $ 174 Employee separation costs (1) 24 27 Accrued litigation (2) 10 13 Environmental remediation (2) 75 66 Income taxes 68 58 Customer rebates 54 83 Deferred income 5 8 Accrued interest 69 24 Miscellaneous (3) 88 105 Total other accrued liabilities $ 487 $ 558 (1) Represents the current portion of accrued employee separation costs related to the Company’s restructuring activities. (2) Represents the current portions of accrued litigation and environmental remediation, which are discussed further in “Note 17 – Commitments and Contingent Liabilities.” (3) Miscellaneous primarily includes accrued utility expenses, property taxes, an accrued indemnification liability, the current portion of the Company’s asset retirement obligations, and other miscellaneous expenses. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Note 15. Debt The following table sets forth the components of the Company’s debt at March 31, 2018 and December 31, 2017. March 31, 2018 December 31, 2017 Senior secured term loans: Tranche B-1 Dollar Term Loan due May 2022 $ 921 $ 923 Tranche B-1 Euro Term Loan due May 2022 (€393 at March 31, 2018 and €395 at December 31, 2017) 487 469 Senior unsecured notes: 6.625% due May 2023 1,158 1,158 7.000% due May 2025 750 750 6.125% due May 2023 (€295 at March 31, 2018 and December 31, 2017) 365 350 5.375% due May 2027 500 500 Capital lease obligations 2 3 Build-to-suit lease obligation 19 8 Total debt 4,202 4,161 Less: Unamortized issue discounts (8 ) (8 ) Less: Unamortized debt issuance costs (39 ) (41 ) Less: Current maturities of long-term debt (14 ) (15 ) Total long-term debt, net $ 4,141 $ 4,097 Senior Secured Credit Facilities The Company’s credit agreement, as amended, provides for seven-year, senior secured term loans and a five-year No 0.20 As discussed more fully in “Note 23 – Subsequent Events,” on April 3, 2018, the Company entered into an amended and restated credit agreement with respect to its senior secured credit facilities. Build-to-suit Lease Obligation In October 2017, Chemours executed a build-to-suit lease agreement to construct a new 312,000-square-foot research and development facility on the Science, Technology, and Advanced Research campus of the University of Delaware (UD) in Newark, Delaware (The Chemours Discovery Hub). The land on which The Chemours Discovery Hub will be located is leased to a third-party owner-lessor by UD, and Chemours will act as the construction agent and ultimate lessee of the facility based on the Company’s agreement with the owner-lessor. Project costs paid by the owner-lessor are reflected in the Company’s consolidated balance sheets as construction-in-progress within property, plant, and equipment, and a corresponding build-to-suit lease liability within long-term debt. Through March 31, 2018, project costs paid by the owner-lessor amounted to $19. Construction of The Chemours Discovery Hub is expected to be completed by early 2020. Maturities Debt maturities related to the Company’s senior secured term loans under the amended and restated credit agreement are discussed more fully in “Note 23 – Subsequent Events.” Debt maturities related to the Company’s Notes (collectively, the 2023 Notes, the 2025 Notes, the Euro Notes, and the 2027 Notes) in 2023 and beyond will be $2,773. Debt Fair Value The fair values of the Dollar Term Loan, the Euro Term Loan, the 2023 Notes, the 2025 Notes, the Euro Notes, and the 2027 Notes at March 31, 2018 were $922, $490, $1,217, $812, $383, and $502, respectively. The estimated fair values of the Dollar Term Loan, the Euro Term Loan, and the Notes are based on quotes received from third-party brokers, and are classified as Level 2 financial instruments in the fair value hierarchy. |
Other Liabilities
Other Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Note 16. Other Liabilities The following table sets forth the components of the Company’s other liabilities at March 31, 2018 and December 31, 2017. March 31, 2018 December 31, 2017 Environmental remediation (1) $ 179 $ 187 Employee-related costs (2) 131 123 Accrued litigation (1) 50 48 Asset retirement obligations 44 43 Deferred income 5 6 Miscellaneous (3) 66 68 Total other liabilities $ 475 $ 475 (1) The Company’s accrued environmental remediation and accrued litigation liabilities are discussed further in “Note 17 – Commitments and Contingent Liabilities.” (2) Employee-related costs primarily represent liabilities associated with the Company’s long-term employee benefits plans. (3) Miscellaneous primarily includes an accrued indemnification liability of $50 and $52 at March 31, 2018 and December 31, 2017, respectively. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Note 17. Commitments and Contingent Liabilities Litigation In addition to the matters discussed below, Chemours, by virtue of its status as a subsidiary of DuPont prior to the separation, is subject to or required under the separation-related agreements executed prior to the separation to indemnify DuPont against various pending legal proceedings arising out of the normal course of Chemours’ business including product liability, intellectual property, commercial, environmental, and anti-trust lawsuits. It is not possible to predict the outcomes of these various proceedings. Except for the litigation specific to PFOA (collectively, perfluorooctanoic acids and its salts, including the ammonium salt) and GenX and other perfluorinated and polyfluorinated compounds Asbestos In the separation, DuPont assigned its asbestos docket to Chemours. At March 31, 2018 and December 31, 2017, there were approximately 1,600 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 U.S. and are individually set for trial. A small number of cases are pending outside the U.S. 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 or household members of contractors or DuPont employees. Finally, certain lawsuits allege personal injury as a result of exposure to DuPont products. At March 31, 2018 and December 31, 2017, Chemours had an accrual of $38 related to this matter. Chemours reviews this estimate and related assumptions quarterly. Benzene In the separation, DuPont assigned its benzene docket to Chemours. As of March 31, 2018 and December 31, 2017, there were 18 and 17 cases pending against DuPont alleging benzene-related illnesses, respectively. 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 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. In March 2016, acting on the Company’s motion, the court struck the punitive award. Through DuPont, Chemours has filed an appeal on the remaining award based upon substantial errors made at the trial court level. Plaintiffs filed a cross appeal. 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, the performance chemicals segment of DuPont made PFOA at its Fayetteville, North Carolina plant and used PFOA as a processing aid in the manufacture of fluoropolymers and fluoroelastomers at certain sites including: Washington Works, Parkersburg, West Virginia; Chambers Works, Deepwater, New Jersey; Dordrecht Works, Netherlands; Changshu Works, China; and, Shimizu, Japan. These sites are now owned and/or operated by Chemours. Chemours recorded accruals of $16 and $14 related to the PFOA matters discussed below at March 31, 2018 and December 31, 2017, respectively. Specific to the PFOA MDL Settlement (also discussed below), the Company recorded an accrual of $335 at December 31, 2016, which was paid in installments of $15 and $320 during the second and third quarters of 2017, respectively. These accruals also 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 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 health advisory. A provisional health advisory level was set by the EPA in 2009 at 0.4 parts per billion (ppb) that includes PFOA in drinking water. In May 2016, the EPA announced a health advisory level of 0.07 ppb that includes PFOA in drinking water. As a result, Chemours recorded an additional $4 in the second quarter of 2016 based on management’s best estimate of the impact of the new health advisory level on the Company’s obligations to the EPA, which have expanded the testing and water supply commitments previously established. Based on prior testing, the Company has initiated additional testing and treatment in certain additional locations in and around the Chambers Works and Washington Works plants. The Company will continue to work with the EPA regarding the extent of work that may be required with respect to these matters. In February 2018, the State of Ohio initiated litigation against DuPont regarding historical PFOA emissions from the Washington Works site. Chemours is an additional named defendant. Ohio alleges damage to natural resources and seeks damages including remediation and other costs and punitive damages. This action is in its early stages and it is not possible at this point to predict the timing, course, or outcome. 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. DuPont funded a series of health studies which were completed in October 2012 by an independent science panel of experts (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. DuPont 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, DuPont, put $1 in an escrow account to fund medical monitoring as required by the settlement agreement. The court-appointed director of medical monitoring 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 is ongoing and associated payments to service providers are being disbursed from the escrow account. As of March 31, 2018, approximately $1 has been disbursed from the escrow account related to medical monitoring. 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. In addition, under the Leach settlement agreement, DuPont must continue to provide water treatment designed to reduce the level of PFOA in water to six area water districts and private well users. At separation, this obligation was assigned to Chemours, which is included in the accrual amounts recorded as of March 31, 2018. Under the Leach settlement, 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. Approximately 3,500 lawsuits were filed in various federal and state courts in Ohio and West Virginia and consolidated in multi-district litigation (MDL) in Ohio federal court. Settlement of MDL between DuPont and MDL Plaintiffs In March 2017, DuPont entered into an agreement with the MDL plaintiffs’ counsel providing for a global settlement of all cases and claims in the MDL, including all filed and unfiled personal injury cases and claims that are part of the plaintiffs’ counsel’s claim inventory, as well as cases that have been tried to a jury verdict (MDL Settlement). The total settlement amount is $670.7 in cash, with half paid by Chemours and half paid by DuPont. DuPont’s payment was not subject to indemnification or reimbursement by Chemours, and Chemours accrued $335 associated with this matter at December 31, 2016. In exchange for payment of the total settlement amount, DuPont and Chemours received a complete release of all claims by the settling plaintiffs. The MDL Settlement was entered into solely by way of compromise and settlement and is not in any way an admission of liability or fault by DuPont or Chemours. As of September 30, 2017, Chemours had paid the full $335 accrued under the MDL Settlement. Settlement between DuPont and Chemours Related to MDL DuPont and Chemours agreed to a limited sharing of potential future PFOA costs (indemnifiable losses, as defined in the separation agreement between DuPont and Chemours) for a period of five years. During that five-year period, Chemours will annually pay future PFOA costs up to $25 and, if such amount is exceeded, DuPont will pay any excess amount up to the next $25 (which payment will not be subject to indemnification by Chemours), with Chemours annually bearing any further excess costs under the terms of the separation agreement. After the five-year period, this limited sharing agreement will expire, and Chemours’ indemnification obligations under the separation agreement will continue unchanged. Chemours has also agreed that it will not contest its indemnification obligations to DuPont under the separation agreement for PFOA costs on the basis of ostensible defenses generally applicable to the indemnification provisions under the separation agreement, including defenses relating to punitive damages, fines or penalties, or attorneys’ fees, and waives any such defenses with respect to PFOA costs. Chemours has, however, retained other defenses, including as to whether any particular PFOA claim is within the scope of the indemnification provisions of the separation agreement. Post-MDL Settlement Injury Matters All MDL lawsuits were dismissed or resolved through the MDL Settlement. The MDL Settlement does not resolve PFOA personal-injury claims of plaintiffs who did not have cases or claims in the MDL or personal-injury claims based on diseases first diagnosed after February 11, 2017. Since the resolution of the MDL, personal-injury cases have been filed in West Virginia, Ohio, and New York courts. The New York matters, which are not part of the Leach class, are brought by three individual plaintiffs alleging negligence and other claims in the release of perfluorinated compounds, including PFOA, into drinking water, and seeking compensatory and punitive damages against current and former owners and suppliers of a manufacturing facility in Hoosick Falls, New York. Management believes that the probability of loss is reasonably possible but not estimable at this time due to various reasons including, among others, that the proceedings are in early stages and there are significant factual issues to be resolved. Water Districts In May 2017, the Water Works and Sewer Board of the Town of Centre, Alabama filed suit against numerous carpet manufacturers located in Dalton, Georgia and suppliers and former suppliers, including DuPont, in Alabama state court. The complaint alleges negligence, nuisance, and trespass in the release of perfluorinated compounds, including PFOA, into a river leading to the town’s water source, and seeks compensatory and punitive damages. In February 2018, the New Jersey-American Water Company, Inc. (NJAW), filed suit against DuPont and Chemours in New Jersey federal court alleging that discharges of perfluorochemicals, in violation of the New Jersey Compensation and Control Act, were made into groundwater utilized in the NJAW Penns Grove water system. NJAW alleges that damages include costs associated with remediating, operating, and maintaining its system, and attorney fees. Management believes that the probability of loss as to these matters is remote. PFOA Summary Chemours accrued $335 associated with the MDL Settlement at December 31, 2016, of which all $335 had been paid as of December 31, 2017. U.S. Smelter and Lead Refinery, Inc. Six lawsuits, including one putative class action, are pending against DuPont by area residents concerning the U.S. Smelter and Lead Refinery multi-party Superfund site in East Chicago, Indiana. Five of the lawsuits allege that Chemours is now responsible for DuPont environmental liabilities. The lawsuits include allegations for personal injury damages, property diminution, and damages under the Comprehensive Environmental Response Compensation and Liability Act (CERCLA, often referred to as Superfund). At separation, DuPont assigned Chemours its former plant site, which is located south of the residential portion of the Superfund area, and its responsibility for the environmental remediation at the Superfund site. DuPont has requested that Chemours defend and indemnify it, and Chemours has agreed to do so under a reservation of rights. Management believes a loss is reasonably possible, but not estimable at this time due to various reasons including, among others, that such matters are in early stages and have significant factual issues to be resolved. GenX and Other Perfluorinated and Polyfluorinated Compounds As reported in the press and noted in public statements by the Company, governmental agencies and local community members have made inquiries and engaged in discussions with the Company with respect to the discharge of the polymerization processing aid HFPO Dimer Acid (sometimes referred to as GenX or C3 Dimer) and perfluorinated and polyfluorinated compounds from the Company’s facility in Fayetteville, North Carolina into the Cape Fear River, groundwater, and air. The Company believes that such discharges have not impacted the safety of drinking water in North Carolina. The Company has commenced capturing and separately disposing process wastewater from the Fayetteville facility and is cooperating with a variety of ongoing inquiries and investigations from federal, state, and local authorities, regulators, and other governmental entities, including responding to federal grand jury subpoenas, issued in connection with an ongoing investigation being conducted by the U.S. Attorney’s Office for the Eastern District of North Carolina and the Environmental and Natural Resources Division of the U.S. Department of Justice. In September 2017, the North Carolina Department of Environmental Quality (NC DEQ) issued a 60-day notice of intent to suspend the permit for the Fayetteville facility and the State of North Carolina filed an action in North Carolina state court regarding the discharges seeking a temporary restraining order and preliminary injunction, as well as other relief including abatement and site correction. A partial consent order was entered partially resolving the state’s action in return for the Company’s agreement to continue and supplement the voluntary wastewater-disposal measures it had previously commenced and to provide certain information. In November 2017, NC DEQ informed the Company that it was suspending the process wastewater discharge permit for the Fayetteville facility. The Company thereafter commenced the capture and separate disposal of all process wastewater from the Fayetteville facility related to the Company’s own operations. In April 2018, the North Carolina Department of Air Quality (NC DAQ) issued a 60-day Notice of Intent to modify the Fayetteville site’s air emissions permit to ensure that air emissions do not contribute or cause violations of groundwater rules. The NC DEQ amended its complaint regarding air emissions and groundwater. The Company continues to take action in response to these issues and will continue efforts to reach final resolution. It is possible that issues relating to groundwater deposition and/or air emissions could result in further litigation or regulatory demands with regard to the Fayetteville facility, including potential permit modifications that, if effected, could affect the facility’s continued operations. Civil actions have been filed against the Company and DuPont in North Carolina federal court relating to discharges from the Fayetteville site. These actions include, a consolidated action brought by water systems seeking damages and injunctive relief, a consolidated purported class action seeking medical monitoring and property damage and/or other monetary and injunctive relief on behalf of the putative classes of property owners and residents in areas near or that draw drinking water from the Cape Fear River, and an action by private well owners seeking compensatory and punitive damages. It is possible that additional litigation may be filed against the Company and/or DuPont concerning the discharges. The Company believes it has valid defenses to such litigation including that the discharges did not impact the safety of drinking water or cause any damages or injury. It is not possible at this point to predict the timing, course, or outcome of the governmental and regulatory inquiries, the notices issued by NC DEQ and NC DAQ, the action brought by North Carolina, and the other litigation, and it is possible that these matters could materially affect the Company’s results and operations. In addition, local communities, organizations, and federal and state regulatory agencies have raised questions concerning HFPO Dimer Acid at certain other manufacturing sites operated by the Company, and it is possible that similar developments to those described above and centering on the Fayetteville site could arise in other locations. Environmental Chemours, due to the terms of its separation-related agreements with DuPont, 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. Much of this liability results from CERCLA, the Resource Conservation and Recovery Act, 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. At March 31, 2018 and December 31, 2017, the consolidated balance sheets included a liability relating to these matters of $254 and $253, respectively, which, in management’s opinion, is appropriate based on existing facts and circumstances. The time-frame for a site to go through all phases of remediation (investigation and active clean-up) may take about 15 to 20 years, followed by several years of operation, maintenance, and monitoring (OM&M) activities. Remediation activities, including OM&M 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 requirements, as well as the presence or absence of other potentially responsible parties. In addition, for claims that Chemours may be required to indemnify DuPont pursuant to the separation-related agreements, Chemours, through DuPont, has limited available information for certain sites or is in the early stages of discussions with regulators. For these sites in particular, there may be considerable variability between the clean-up activities that are currently being undertaken or planned and the ultimate actions that could be required. Therefore, considerable uncertainty exists with respect to environmental remediation costs and, under adverse changes in circumstances, although deemed remote, the potential liability may range up to approximately $510 above the amount accrued at March 31, 2018. For the three months ended March 31, 2018 and 2017, Chemours incurred environmental remediation expenses of $11 and $9, respectively. 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 Company’s financial position, results of operations, or cash flows in any given year, as such obligation can be satisfied or settled over many years. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2018 | |
Stockholders Equity Note [Abstract] | |
Equity | Note 18. Equity Share Repurchase Program On November 30, 2017, the Company’s board of directors approved a share repurchase program authorizing the purchase of shares of Chemours’ issued and outstanding common stock in an aggregate amount not to exceed $500, plus any associated fees or costs in connection with the Company’s share repurchase activity. Under the share repurchase program, shares of Chemours’ common stock may be purchased on the open market from time to time, subject to management’s discretion, as well as general business and market conditions. The Company’s share repurchase program became effective on November 30, 2017 and continues through its expiration on December 31, 2020. The program may be suspended or discontinued at any time. All common shares purchased under the share repurchase program are held as treasury stock and are accounted for using the cost method. Under the share repurchase program, the Company purchased an additional 4,979,152 shares of Chemours’ issued and outstanding common stock during the first quarter of 2018, which amounted to $245 at an average share price of $49.17 per share. Of the 4,979,152 shares purchased by the Company, 324,600 shares amounting to $15 settled subsequent to March 31, 2018. As of March 31, 2018, the Company has purchased a cumulative 7,365,558 shares of Chemours’ issued and outstanding common stock, which amounted to $361 at an average share price of $49.05 per share. The aggregate amount of Chemours’ common stock that remained available for purchase under the share repurchase program at March 31, 2018 was $139. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Note 19. 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 operates within 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 on its 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. Gains and losses on the Company’s derivative instruments are intended to be offset by any gains or losses on the underlying asset or liability. At March 31, 2018, there were 20 foreign currency forward contracts outstanding, with an aggregate notional U.S. dollar equivalent of $547. There were no foreign currency forward contracts outstanding at December 31, 2017. Chemours recognized in other income, net of the consolidated statements of operations, a net gain of $4 and a net loss of $1 for the three months ended March 31, 2018 and 2017, respectively. Net Investment Hedge - Foreign Currency Borrowings Chemours designated its Euro Notes and Euro Term Loan as a hedge of its net investments in certain of its international subsidiaries that use the euro as their 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 uses the spot method to measure the effectiveness of its net investment hedge. For each reporting period, the change in the carrying value of the Euro Notes and the Euro Term Loan due to remeasurement of the effective portion are reported in accumulated other comprehensive loss on the consolidated balance sheets, 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. Chemours did not record any ineffectiveness for the three months ended March 31, 2018 or 2017. The Company recognized pre-tax losses of $34 and $10 on its net investment hedges within accumulated other comprehensive loss for the three months ended March 31, 2018 and 2017, respectively. Fair Value of Derivative Instruments The following table sets forth the fair value of the Company’s derivative assets and liabilities, and their level within the fair value hierarchy, at March 31, 2018 and December 31, 2017. Fair Value Using Level 2 Inputs Balance Sheet Location March 31, 2018 December 31, 2017 Asset derivatives: Foreign currency forward contracts Accounts and notes receivable, net $ 1 $ — Total asset derivatives $ 1 $ — Liability derivatives: Foreign currency forward contracts Other accrued liabilities $ 2 $ — Total liability derivatives $ 2 $ — The Company’s foreign currency forward contracts are classified as Level 2 financial instruments within the fair value hierarchy 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/quality checks. |
Long-term Employee Benefits
Long-term Employee Benefits | 3 Months Ended |
Mar. 31, 2018 | |
General Discussion Of Pension And Other Postretirement Benefits [Abstract] | |
Long-term Employee Benefits | Note 20. Long-term Employee Benefits Chemours sponsors defined benefit pension plans for certain of its employees in various jurisdictions outside of the U.S. The Company’s net periodic pension income is based on estimated values and an extensive use of assumptions about the discount rate, expected return on plan assets, and the rate of future compensation increases received by its employees. The following table sets forth the Company’s net periodic pension income and amounts recognized in other comprehensive income (loss) for the three months ended March 31, 2018 and 2017. Three Months Ended March 31, 2018 2017 Net periodic pension (cost) income: Service cost $ (4 ) $ (4 ) Interest cost (4 ) (4 ) Expected return on plan assets 15 17 Amortization of actuarial loss (4 ) (5 ) Net periodic pension income 3 4 Changes in plan assets and benefit obligations recognized in other comprehensive income: Amortization of actuarial loss 4 5 Benefit recognized in other comprehensive income 4 5 Total net periodic pension income and benefit recognized in comprehensive income $ 7 $ 9 The Company made cash contributions of $4 to its pension plans during the three months ended March 31, 2018, and expects to make additional cash contributions of |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based Compensation | Note 21. Stock-based Compensation Total stock-based compensation cost included in the consolidated statements of operations was $9 and $6 for the three months ended March 31, 2018 and 2017, respectively. The Chemours Company 2017 Equity and Incentive Plan and The Chemours Company Equity and Incentive Plan provide for grants to certain employees, independent contractors, or non-employee directors of the Company of different forms of awards, including stock options, restricted stock units (RSUs), and performance share units (PSUs). The Chemours Compensation Committee determines the long-term incentive awards mix and may authorize new grants annually. Stock Options In the three months ended March 31, 2018, Chemours granted approximately 470,000 non-qualified stock options to certain of its employees, which will vest over a three-year period and expire 10 years from the date of grant. The fair value of the stock options is based upon the Black-Scholes valuation model. The following table sets forth the assumptions used to determine the fair value of stock option awards granted during the three months ended March 31, 2018. Three Months Ended March 31, 2018 Risk-free interest rate 2.64 % Expected term (years) 6.00 Volatility 47.56 % Dividend yield 1.40 % Fair value per stock option $ 20.55 The Company recorded $5 and $1 in stock-based compensation expense specific to its stock options for the three months ended March 31, 2018 and 2017, respectively. At March 31, 2018, approximately 6,770,000 stock options remain outstanding. Restricted Stock Units In the three months ended March 31, 2018, Chemours granted approximately 110,000 RSUs to certain of its employees, which will vest over a three-year period and, upon vesting, convert one-for-one to Chemours’ common stock. The fair value of the RSUs is based upon the market price of the underlying common stock as of the grant date. The Company recorded $2 and $4 in stock-based compensation expense specific to its RSUs for the three months ended March 31, 2018 and 2017, respectively. At March 31, 2018, approximately 970,000 RSUs remain non-vested. Performance Share Units In the three months ended March 31, 2018, Chemours granted approximately 140,000 PSUs to key senior management employees, which, upon vesting, convert one-for-one to Chemours’ common stock if specified performance goals, including certain market-based conditions, are met over the three-year performance period specified in the grant, subject to exceptions through the respective vesting period of three years. Each grantee is granted a target award of PSUs, and may earn between 0% and 200% of the target amount depending on the Company’s performance against stated performance goals. A portion of the fair value of PSUs was estimated at the grant date based on the probability of satisfying the market-based conditions associated with the PSUs using the Monte Carlo valuation method, which assesses probabilities of various outcomes of market conditions. The other portion of the fair value of the PSUs is based on the fair market value of the Company’s stock at the grant date, regardless of whether the market-based condition is satisfied. The Company recorded $2 and $1 in stock-based compensation expense specific to its PSUs for the three months ended March 31, 2018 and 2017, respectively. At March 31, 2018, approximately 810,000 PSUs at 100% of the target amount remain non-vested. Employee Stock Purchase Plan On January 26, 2017, the Company’s board of directors approved The Chemours Company Employee Stock Purchase Plan (ESPP), which was approved by Chemours’ stockholders on April 26, 2017. Under the ESPP, a total of 7,000,000 shares of Chemours’ common stock is reserved and authorized for issuance to participating employees, as defined by the ESPP, which excludes executive officers of the Company. The ESPP provides for consecutive 12-month offering periods, each with four purchase periods beginning and ending on the calendar quarters within those offering periods. The initial offering period under the ESPP began on October 2, 2017. Participating employees are eligible to purchase the Company’s common stock at a discounted rate equal to 95% of its fair value on the last trading day of each purchase period. In the first quarter of 2018, the Company executed an open market transaction to purchase Company stock on behalf of ESPP participants. Total purchases amounted to less than $1, which was used to purchase approximately 12,000 shares of Chemours’ common stock for the purchase period ending December 31, 2017. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Note 22. Segment Information Chemours’ reportable segments are: Fluoroproducts, Chemical Solutions, and Titanium Technologies. Corporate costs and certain legal and environmental expenses that are not allocated to the reportable segments and foreign exchange gains and losses are reflected in Corporate and Other. Segment sales include transfers to another reportable segment. Certain products are transferred between segments on a basis intended to reflect, as nearly as practicable, the market value of the products. These product transfers were limited and were not significant for each of the periods presented. Depreciation and amortization includes depreciation on research and development facilities and the amortization of other intangible assets, excluding any write-downs of assets. Adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) is the primary measure of segment profitability used by the Company’s Chief Operating Decision Maker 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, which represent the components of net periodic pension (income) costs excluding the service cost component; • exchange (gains) losses included in other income (expense), net; • restructuring, asset-related, and other charges, net; • asset impairments; • (gains) losses on sale of business or assets; and, • other items not considered indicative of the Company’s ongoing operational performance and expected to occur infrequently. The following table sets forth certain summary financial information for the Company’s reportable segments and Corporate and Other for the three months ended March 31, 2018 and 2017. Three Months Ended March 31, Fluoroproducts Chemical Solutions Titanium Technologies Corporate and Other Total 2018 Net sales to external customers $ 732 $ 144 $ 854 $ — $ 1,730 Adjusted EBITDA 206 11 294 (43 ) 468 Depreciation and amortization 28 5 30 7 70 2017 Net sales to external customers $ 652 $ 139 $ 646 $ — $ 1,437 Adjusted EBITDA 155 12 159 (41 ) 285 Depreciation and amortization 26 4 33 8 71 The following table sets forth a reconciliation of Adjusted EBITDA to the Company’s consolidated net income before income taxes for the three months ended March 31, 2018 and 2017. Three Months Ended March 31, 2018 2017 Income before income taxes $ 381 $ 173 Interest expense, net 52 51 Depreciation and amortization 70 71 Non-operating pension and other post-retirement employee benefit income (7 ) (8 ) Exchange gains — (5 ) Restructuring, asset-related, and other charges, net 10 12 Gain on sale of assets and businesses (1) (42 ) (16 ) Legal and other charges (2) 4 7 Adjusted EBITDA $ 468 $ 285 (1) For the three months ended March 31, 2018, gain on sale includes a $42 gain associated with the sale of the Company’s Linden, New Jersey site. For the three months ended March 31, 2017, gain on sale includes a $12 gain associated with the sale of the Company’s Edge Moor, Delaware site and a $4 gain associated with the sale of the Company’s land in Repauno, New Jersey that was previously deferred and realized upon meeting certain milestones. (2) Includes litigation settlements, water treatment accruals, and other charges. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 23. Subsequent Events Acquisition of ICOR International, Inc. On April 2, 2018, the Company, through its wholly-owned subsidiary, The Chemours Company FC, LLC, entered into a Stock Purchase Agreement (SPA) to acquire all of the outstanding stock of ICOR International, Inc. (ICOR), a closely-held private company that produces, sells, and distributes replacement refrigerant gases for use in commercial, industrial, and automotive refrigerant applications, for $35 in total consideration. Pursuant to the terms of the SPA, the Company paid $32 at closing in the all-cash acquisition, which is subject to customary working capital and other adjustments within a specified time period. The acquisition of ICOR complements the Company’s existing portfolio of product offerings within the Fluoroproducts segment, as well as provides the Company with access to ICOR’s established customer base and assembled workforce. The Company will account for the acquisition of ICOR as a business combination, and as such, all assets acquired and liabilities assumed will be recorded at their estimated fair values, and the excess of the consideration transferred over the fair value of the net assets acquired will be recorded as goodwill within the Fluoroproducts segment. Amended and Restated Credit Agreement On April 3, 2018, the Company entered into an amended and restated credit agreement that provides for a seven-year, senior secured term loan facility and a five-year, $800 senior secured revolving credit facility (New Revolving Credit Facility) (collectively, the New Senior Secured Credit Facilities). The senior secured term loan facility provides for a class of term loans, denominated in U.S. dollars, in an aggregate principal amount of $900 (New Dollar Term Loan) and a class of term loans, denominated in euros, in an aggregate principal amount of €350 (New Euro Term Loan) (collectively, the New Term Loans). The proceeds of the New Term Loans, together with cash on hand, were primarily used to prepay in full all outstanding amounts under the Company’s existing credit agreement, which amounted to $921 and €393 at March 31, 2018. The New Dollar Term Loan bears a variable interest rate equal to, at the election of the Company, adjusted LIBOR plus 1.75% or adjusted base rate plus 0.75%, subject to an adjusted LIBOR or an adjusted base rate floor of 0.00% or 1.00%, respectively. The New Euro Term Loan bears a variable interest rate equal to adjusted EURIBOR plus 2.00%, subject to an adjusted EURIBOR floor of 0.50%. The New Term Loans will mature on April 3, 2025, and are subject to acceleration in certain circumstances. The proceeds of any loans made under the New Revolving Credit Facility can be used for working capital needs and other general corporate purposes, including permitted acquisitions and other transactions, as defined under the amended and restated credit agreement. The New Revolving Credit Facility bears a variable interest rate range based on the Company’s total net leverage ratio, as defined in the amended and restated credit agreement, between (i) a 0.25% and a 1.00% spread for adjusted base rate loans, and (ii) a 1.25% and a 2.00% spread for LIBOR and EURIBOR loans. In addition, the Company is required to pay a commitment fee on the average daily unused amount of the New Revolving Credit Facility within an interest rate range based on its total net leverage ratio, between 0.10% and 0.25%. The New Revolving Credit Facility will mature on April 3, 2023, and is subject to acceleration in certain circumstances. The amended and restated credit agreement also modifies or eliminates certain provisions of the Company’s existing credit agreement, including certain negative covenants to allow for further flexibility. Under the amended and restated credit agreement, solely with respect to the New Revolving Credit Facility, the Company is required to not exceed a maximum senior secured net leverage ratio of: (i) 2.50 to 1.00 in each quarter through June 30, 2018; (ii) 2.25 to 1.00 in each quarter through December 31, 2018; and, (iii) 2.00 to 1.00 in each quarter beginning January 1, 2019, through the date of maturity. The Company’s minimum interest coverage ratio requirements under the existing credit agreement were eliminated in the amended and restated credit agreement. In addition, the amended and restated credit agreement contains customary affirmative and negative covenants that, among other things, limit or restrict the Company’s and its subsidiaries’ ability, subject to certain exceptions, to incur additional indebtedness or liens, pay dividends, and engage in certain transactions, including mergers, acquisitions, asset sales, or investments, outside of specified carve-outs. The amended and restated credit agreement also contains customary representations and warranties and events of default, which are substantially similar to those in the existing credit agreement. The Company was in compliance with its debt covenants at March 31, 2018. The Company’s obligations under the New Senior Secured Credit Facilities are guaranteed on a senior secured basis by all of its material domestic subsidiaries, which are also guarantors of the Company’s outstanding notes, subject to certain exceptions. The obligations under the New Senior Secured Credit Facilities are also, subject to certain exceptions, secured by a first priority lien on substantially all of the Company’s assets and substantially all of the assets of its wholly-owned, material domestic subsidiaries, including 100% of the stock of certain of its domestic subsidiaries and 65% of the stock of certain of its foreign subsidiaries. The Company has required quarterly payments related to the New Senior Secured Credit Facilities equivalent to 1.00% per annum through December 2024, with the balance due at maturity. Principal maturities on the New Senior Secured Credit Facilities over the next five years are $10 for the remainder of 2018, approximately $13 in each year from 2019 to 2022, and approximately $1,270 in 2023 and beyond. Also, following the end of each fiscal year commencing on the year ended December 31, 2019, on an annual basis, the Company is required to make additional principal payments depending on leverage levels, as defined in the amended and restated credit agreement, equivalent to up to 50% of excess cash flows based on certain leverage targets with step-downs to 25% and 0% as actual leverage decreases to below a 3.50 to 1.00 leverage target. The transaction resulted in a net prepayment of the Company’s total outstanding senior secured debt balance by approximately $75, based on the euro exchange rate on April 3, 2018. The Company is currently evaluating the accounting treatment for its amended and restated credit agreement, including the treatment of any related transaction costs. Share Repurchase Program In connection with its share repurchase program, the Company purchased an additional 764,786 shares of Chemours’ issued and outstanding common stock in April 2018, which amounted to $39. |
Guarantor Condensed Consolidati
Guarantor Condensed Consolidating Financial Information | 3 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Guarantor Condensed Consolidating Financial Information | Note 24. Guarantor Condensed Consolidating Financial Information The following guarantor financial information is included in accordance with Rule 3-10 of Regulation S-X (Rule 3-10) in connection with the issuance of the Notes by The Chemours Company (Parent Issuer). 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 of its 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, Non-Guarantor Subsidiaries). The Guarantor Subsidiaries, 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 condensed consolidating statements of comprehensive income for the three months ended March 31, 2018 and 2017; • the condensed consolidating balance sheets at March 31, 2018 and December 31, 2017; and, • the condensed consolidating statements of cash flows for the three months ended March 31, 2018 and 2017. The condensed consolidating financial information is presented using the equity method of accounting for the Company’s investments in its 100% owned subsidiaries. Under the equity method, the investments in subsidiaries are recorded at cost and adjusted for the Company’s share of its 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 included herein should be read in conjunction with the consolidated financial statements presented and the related notes. Condensed Consolidating Statements of Comprehensive Income Three Months Ended March 31, 2018 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Adjustments Consolidated Net sales $ — $ 1,017 $ 1,174 $ (461 ) $ 1,730 Cost of goods sold — 798 871 (476 ) 1,193 Gross profit — 219 303 15 537 Selling, general, and administrative expense 10 102 40 (9 ) 143 Research and development expense — 19 1 — 20 Restructuring, asset-related, and other charges, net — 9 1 — 10 Total expenses 10 130 42 (9 ) 173 Equity in earnings of affiliates — — 12 — 12 Equity in earnings of subsidiaries 331 — — (331 ) — Interest (expense) income, net (56 ) 2 2 — (52 ) Intercompany interest income (expense), net 13 1 (14 ) — — Other income (expense), net 9 73 (16 ) (9 ) 57 Income before income taxes 287 165 245 (316 ) 381 (Benefit from) provision for income taxes (10 ) 50 45 (1 ) 84 Net income 297 115 200 (315 ) 297 Less: Net income attributable to non-controlling interests — — — — — Net income attributable to Chemours $ 297 $ 115 $ 200 $ (315 ) $ 297 Comprehensive income attributable to Chemours $ 373 $ 117 $ 299 $ (416 ) $ 373 Condensed Consolidating Statements of Comprehensive Income Three Months Ended March 31, 2017 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Adjustments Consolidated Net sales $ — $ 960 $ 894 $ (417 ) $ 1,437 Cost of goods sold — 795 706 (420 ) 1,081 Gross profit — 165 188 3 356 Selling, general, and administrative expense 7 114 35 (6 ) 150 Research and development expense — 18 1 — 19 Restructuring, asset-related, and other charges, net — 11 1 — 12 Total expenses 7 143 37 (6 ) 181 Equity in earnings of affiliates — — 7 — 7 Equity in earnings of subsidiaries 172 — — (172 ) — Interest (expense) income, net (51 ) (1 ) 1 — (51 ) Intercompany interest income (expense), net 16 — (16 ) — — Other income, net 6 42 — (6 ) 42 Income before income taxes 136 63 143 (169 ) 173 (Benefit from) provision for income taxes (14 ) 5 30 1 22 Net income 150 58 113 (170 ) 151 Less: Net income attributable to non-controlling interests — — 1 — 1 Net income attributable to Chemours $ 150 $ 58 $ 112 $ (170 ) $ 150 Comprehensive income attributable to Chemours $ 239 $ 59 $ 210 $ (269 ) $ 239 Condensed Consolidating Balance Sheets March 31, 2018 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 470 $ 964 $ — $ 1,434 Accounts and notes receivable, net — 367 716 — 1,083 Intercompany receivable 19 1,175 589 (1,783 ) — Inventories — 419 647 (74 ) 992 Prepaid expenses and other — 45 30 — 75 Total current assets 19 2,476 2,946 (1,857 ) 3,584 Property, plant, and equipment — 6,538 2,181 — 8,719 Less: Accumulated depreciation — (4,484 ) (1,130 ) — (5,614 ) Property, plant and equipment, net — 2,054 1,051 — 3,105 Goodwill and other intangible assets, net — 151 14 — 165 Investments in affiliates — — 166 — 166 Investment in subsidiaries 4,844 — — (4,844 ) — Intercompany notes receivable 1,150 — — (1,150 ) — Other assets 30 103 353 (22 ) 464 Total assets $ 6,043 $ 4,784 $ 4,530 $ (7,873 ) $ 7,484 Liabilities Current liabilities: Accounts payable $ — $ 626 $ 495 $ — $ 1,121 Current maturities of long-term debt 14 — — — 14 Intercompany payable 827 589 367 (1,783 ) — Other accrued liabilities 85 240 163 (1 ) 487 Total current liabilities 926 1,455 1,025 (1,784 ) 1,622 Long-term debt, net 4,120 21 — — 4,141 Intercompany notes payable — — 1,150 (1,150 ) — Deferred income taxes — 156 111 (23 ) 244 Other liabilities — 384 91 — 475 Total liabilities 5,046 2,016 2,377 (2,957 ) 6,482 Commitments and contingent liabilities Equity Total Chemours stockholders’ equity 997 2,768 2,148 (4,916 ) 997 Non-controlling interests — — 5 — 5 Total equity 997 2,768 2,153 (4,916 ) 1,002 Total liabilities and equity $ 6,043 $ 4,784 $ 4,530 $ (7,873 ) $ 7,484 Condensed Consolidating Balance Sheets December 31, 2017 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 761 $ 795 $ — $ 1,556 Accounts and notes receivable, net — 308 611 — 919 Intercompany receivable 3 904 581 (1,488 ) — Inventories — 394 631 (90 ) 935 Prepaid expenses and other — 57 15 11 83 Total current assets 3 2,424 2,633 (1,567 ) 3,493 Property, plant, and equipment — 6,449 2,062 — 8,511 Less: Accumulated depreciation — (4,438 ) (1,065 ) — (5,503 ) Property, plant and equipment, net — 2,011 997 — 3,008 Goodwill and other intangible assets, net — 152 14 — 166 Investments in affiliates — — 173 — 173 Investment in subsidiaries 4,393 — — (4,393 ) — Intercompany notes receivable 1,150 — — (1,150 ) — Other assets 23 115 328 (13 ) 453 Total assets $ 5,569 $ 4,702 $ 4,145 $ (7,123 ) $ 7,293 Liabilities Current liabilities: Accounts payable $ 31 $ 606 $ 438 $ — $ 1,075 Current maturities of long-term debt 15 — — — 15 Intercompany payable 542 581 365 (1,488 ) — Other accrued liabilities 34 343 181 — 558 Total current liabilities 622 1,530 984 (1,488 ) 1,648 Long-term debt, net 4,087 10 — — 4,097 Intercompany notes payable — — 1,150 (1,150 ) — Deferred income taxes — 127 105 (24 ) 208 Other liabilities — 388 87 — 475 Total liabilities 4,709 2,055 2,326 (2,662 ) 6,428 Commitments and contingent liabilities Equity Total Chemours stockholders’ equity 860 2,647 1,814 (4,461 ) 860 Non-controlling interests — — 5 — 5 Total equity 860 2,647 1,819 (4,461 ) 865 Total liabilities and equity $ 5,569 $ 4,702 $ 4,145 $ (7,123 ) $ 7,293 Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2018 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Adjustments Consolidated Cash flows from operating activities Cash (used for) provided by operating activities $ (17 ) $ 33 $ 180 $ — $ 196 Cash flows from investing activities Purchases of property, plant, and equipment — (80 ) (22 ) — (102 ) Proceeds from sales of assets and businesses, net — 39 — — 39 Intercompany investing activities — (288 ) — 288 — Foreign exchange contract settlements, net — 5 — — 5 Cash used for investing activities — (324 ) (22 ) 288 (58 ) Cash flows from financing activities Debt repayments (4 ) — — — (4 ) Purchases of treasury stock at cost (240 ) (240 ) Intercompany financing activities 288 (288 ) — Proceeds from exercised stock options, net 5 — — — 5 Tax payments related to withholdings on vested restricted stock units (1 ) — — — (1 ) Payment of dividends (31 ) — — — (31 ) Cash provided by (used for) financing activities 17 — — (288 ) (271 ) Effect of exchange rate changes on cash and cash equivalents — — 11 — 11 (Decrease) increase in cash and cash equivalents — (291 ) 169 — (122 ) Cash and cash equivalents at beginning of the period — 761 795 — 1,556 Cash and cash equivalents at end of the period $ — $ 470 $ 964 $ — $ 1,434 Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2017 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Adjustments Consolidated Cash flows from operating activities Cash (used for) provided by operating activities $ (3 ) $ (2 ) $ 46 $ — $ 41 Cash flows from investing activities Purchases of property, plant, and equipment — (50 ) (19 ) — (69 ) Proceeds from sales of assets and businesses, net — 9 — — 9 Intercompany investing activities — 8 — (8 ) — Foreign exchange contract settlements, net — (3 ) — — (3 ) Cash used for investing activities — (36 ) (19 ) (8 ) (63 ) Cash flows from financing activities Intercompany short-term borrowing repayments, net (8 ) — — 8 — Debt repayments (4 ) — — — (4 ) Proceeds from exercised stock options, net 20 — — — 20 Payment of dividends (5 ) — — — (5 ) Cash provided by financing activities 3 — — 8 11 Effect of exchange rate changes on cash and cash equivalents — — 7 — 7 (Decrease) increase in cash and cash equivalents — (38 ) 34 — (4 ) Cash and cash equivalents at beginning of the period — 224 678 — 902 Cash and cash equivalents at end of the period $ — $ 186 $ 712 $ — $ 898 |
Recent Accounting Pronounceme32
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Accounting Guidance Issued and Not Yet Adopted Leases In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) The Company will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, which includes a number of optional practical expedients that the Company may elect to apply. The provisions of ASU No. 2016-02 are effective for the Company’s fiscal year beginning January 1, 2019, including interim periods within that fiscal year. At adoption, the Company will recognize a right-of-use asset and a lease liability initially measured at the present value of its operating lease payments. The Company is currently evaluating the impacts of adopting this guidance on its financial position, results of operations, and cash flows. Derivatives and Hedging In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income Recently Adopted Accounting Guidance Revenue from Contracts with Customers In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Effective January 1, 2018, Chemours adopted the new revenue recognition guidance contained in Topic 606 using the modified retrospective transition method. The Company elected to utilize a practical expedient allowed under the modified retrospective transition method to apply the new standard only to contracts that are not completed on the date of initial adoption. In applying this guidance, the Company evaluated its population of open contracts with customers on January 1, 2018 and determined that the impact of adopting Topic 606 was not material to its consolidated financial statements as a whole, and no cumulative adjustment to the Company’s opening retained earnings balance was required. As a result of applying this new guidance, there are changes to the classification of certain amounts in the consolidated statements of operations. Certain royalty income amounts for trademark licensing arrangements that were previously reflected as a component of other income, net in the consolidated statements of operations will now be reflected as a component of net sales, which amounted to $2 for the three months ended March 31, 2018. Additionally, certain expenses related to the Company’s provision of technical services to customers that were previously reflected as a component of selling, general, and administrative expense in the consolidated statements of operations will now be reflected as a component of the cost of goods sold, which amounted to $1 for the three months ended March 31, 2018. Under the modified retrospective transition method, the Company’s comparative financial information as of and for the three months ended March 31, 2017 and as of December 31, 2017 has not been restated, and as such, continues to be reported using the accounting standards in effect during those time periods. The following table sets forth the impacts of the adoption of Topic 606 on the Company’s consolidated statements of operations for the three months ended March 31, 2018. Three Months Ended March 31, 2018 Without Topic 606 Topic 606 Adjustments As Reported Net sales $ 1,728 $ 2 $ 1,730 Cost of goods sold 1,192 1 1,193 Gross profit 536 1 537 Selling, general, and administrative expense 144 (1 ) 143 Research and development expense 20 — 20 Restructuring, asset-related, and other charges, net 10 — 10 Total expenses 174 (1 ) 173 Equity in earnings of affiliates 12 — 12 Interest expense, net (52 ) — (52 ) Other income, net 59 (2 ) 57 Income before income taxes 381 — 381 Provision for income taxes 84 — 84 Net income 297 — 297 Less: Net income attributable to non-controlling interests — — — Net income attributable to Chemours $ 297 $ — $ 297 The adoption of Topic 606 did not impact the Company’s consolidated balance sheets or consolidated statements of cash flows as of and for the three months ended March 31, 2018 and is not expected to have a material impact on the Company’s financial position, results of operations, or cash flows in future periods. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued various updates to ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments Clarifying the Definition of a Business In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business Retirement Benefits In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715) The following table sets forth a reclassification of the Company’s non-operating pension and other post-retirement employee benefit income for the three months ended March 31, 2017. Three Months Ended March 31, 2017 ASU 2017-07 As Reported Adjustments As Reclassified Net sales $ 1,437 $ — $ 1,437 Cost of goods sold 1,079 2 1,081 Gross profit 358 (2 ) 356 Selling, general, and administrative expense 144 6 150 Research and development expense 19 — 19 Restructuring, asset-related, and other charges, net 12 — 12 Total expenses 175 6 181 Equity in earnings of affiliates 7 — 7 Interest expense, net (51 ) — (51 ) Other income, net 34 8 42 Income before income taxes 173 — 173 Provision for income taxes 22 — 22 Net income 151 — 151 Less: Net income attributable to non-controlling interests 1 — 1 Net income attributable to Chemours $ 150 $ — $ 150 |
Recent Accounting Pronounceme33
Recent Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
ASU 2014-09 [Member] | |
Impacts of Adoption of New Accounting Guidance on Consolidated Statements of Operations | The following table sets forth the impacts of the adoption of Topic 606 on the Company’s consolidated statements of operations for the three months ended March 31, 2018. Three Months Ended March 31, 2018 Without Topic 606 Topic 606 Adjustments As Reported Net sales $ 1,728 $ 2 $ 1,730 Cost of goods sold 1,192 1 1,193 Gross profit 536 1 537 Selling, general, and administrative expense 144 (1 ) 143 Research and development expense 20 — 20 Restructuring, asset-related, and other charges, net 10 — 10 Total expenses 174 (1 ) 173 Equity in earnings of affiliates 12 — 12 Interest expense, net (52 ) — (52 ) Other income, net 59 (2 ) 57 Income before income taxes 381 — 381 Provision for income taxes 84 — 84 Net income 297 — 297 Less: Net income attributable to non-controlling interests — — — Net income attributable to Chemours $ 297 $ — $ 297 |
ASU 2017-07 [Member] | |
Impacts of Adoption of New Accounting Guidance on Consolidated Statements of Operations | The following table sets forth a reclassification of the Company’s non-operating pension and other post-retirement employee benefit income for the three months ended March 31, 2017. Three Months Ended March 31, 2017 ASU 2017-07 As Reported Adjustments As Reclassified Net sales $ 1,437 $ — $ 1,437 Cost of goods sold 1,079 2 1,081 Gross profit 358 (2 ) 356 Selling, general, and administrative expense 144 6 150 Research and development expense 19 — 19 Restructuring, asset-related, and other charges, net 12 — 12 Total expenses 175 6 181 Equity in earnings of affiliates 7 — 7 Interest expense, net (51 ) — (51 ) Other income, net 34 8 42 Income before income taxes 173 — 173 Provision for income taxes 22 — 22 Net income 151 — 151 Less: Net income attributable to non-controlling interests 1 — 1 Net income attributable to Chemours $ 150 $ — $ 150 |
Net Sales (Tables)
Net Sales (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregation of Net Sales by Geographical Region, Product Group, and Segment | The following table sets forth a disaggregation of the Company’s net sales by geographic region, product group, and segment for the three months ended March 31, 2018. Three Months Ended March 31, 2018 Chemical Titanium Fluoroproducts Solutions Technologies Total Net sales by geographic region (1) North America $ 303 $ 81 $ 233 $ 617 Asia Pacific 153 19 242 414 Europe, the Middle East, and Africa 222 5 247 474 Latin America (2) 54 39 132 225 Total net sales $ 732 $ 144 $ 854 $ 1,730 Net sales by product group Fluorochemicals $ 395 $ — $ — $ 395 Fluoropolymers 337 — — 337 Mining solutions — 66 — 66 Performance chemicals and intermediates — 78 — 78 Titanium dioxide and other minerals — — 854 854 Total net sales $ 732 $ 144 $ 854 $ 1,730 (1) Net sales are attributed to countries based on customer location. (2) Latin America includes Mexico. |
Summary of Contract Balances from Contracts with Customers | The following table sets forth the Company’s contract balances from contracts with customers at March 31, 2018 and December 31, 2017. March 31, 2018 December 31, 2017 Accounts receivable - trade, net (1) $ 1,016 $ 847 Customer rebates 54 83 (1) Accounts receivable - trade, net includes trade notes receivable of $3 and $1 and is net of allowances for doubtful accounts of $6 and $5 at March 31, 2018 and December 31, 2017, respectively. Such allowances are equal to the estimated uncollectible amounts. |
Restructuring, Asset-Related,35
Restructuring, Asset-Related, and Other Charges, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Restructuring Program | The following table sets forth the components of the Company’s restructuring, asset-related, and other charges, net for the three months ended March 31, 2018 and 2017. Three Months Ended March 31, 2018 2017 Employee separation charges $ 3 $ — Decommissioning and other charges, net 7 12 Total restructuring, asset-related, and other charges, net $ 10 $ 12 |
Schedule of Restructuring Charges | The following table sets forth the impacts of the Company’s restructuring programs to segment earnings for the three months ended March 31, 2018 and 2017. Three Months Ended March 31, 2018 2017 Plant and product line closures: Fluoroproducts $ — $ 3 Chemical Solutions 1 5 Titanium Technologies — 4 Total plant and product line closures 1 12 2017 Restructuring Program 9 — Total restructuring, asset-related, and other charges, net $ 10 $ 12 The following table sets forth the change in the Company’s employee separation-related liabilities associated with its restructuring programs for the three months ended March 31, 2018. Titanium Technologies Site Closures Fluoroproducts Lines Shutdown Chemical Solutions Site Closures 2015 Global Restructuring Program 2017 Restructuring Program Total Balance at December 31, 2017 $ 1 $ — $ 2 $ 1 $ 23 $ 27 Charges to income — — — — 3 3 Payments — — (1 ) — (5 ) (6 ) Balance at March 31, 2018 $ 1 $ — $ 1 $ 1 $ 21 $ 24 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Components of Other Income | The following table sets forth the components of the Company’s other income, net for the three months ended March 31, 2018 and 2017. Three Months Ended March 31, 2018 2017 Leasing, contract services, and miscellaneous income $ 3 $ 8 Royalty income (1) 5 5 Gain on sale of assets and businesses (2) 42 16 Exchange gains, net (3) — 5 Non-operating pension and other post-retirement employee benefit income 7 8 Total other income, net $ 57 $ 42 (1) Royalty income for the three months ended March 31, 2018 is primarily from technology licensing. Royalty income for the three months ended March 31, 2017 is primarily from technology and trademark licensing, portions of which are now reflected as a component of net sales in the consolidated statements of operations with the Company’s adoption of Topic 606. (2) For the three months ended March 31, 2018, gain on sale includes a $42 gain associated with the sale of the Company’s Linden, New Jersey site. For the three months ended March 31, 2017, gain on sale includes a $12 gain associated with the sale of the Company’s Edge Moor, Delaware site and a $4 gain associated with the sale of the Company’s land in Repauno, New Jersey that was previously deferred and realized upon meeting certain milestones. (3) Exchange gains, net includes gains and losses on foreign currency forward contracts. |
Earnings Per Share of Common 37
Earnings Per Share of Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Reconciliations of the numerators and denominators for the Company’s basic and diluted earnings per share (EPS) calculations for the three months ended March 31, 2018 and 2017 are set forth in the following table. Three Months Ended March 31, 2018 2017 Numerator: Net income attributable to Chemours $ 297 $ 150 Denominator: Weighted-average number of common shares outstanding - basic 182,069,982 183,408,309 Dilutive effect of the Company’s employee compensation plans 6,263,215 5,741,621 Weighted-average number of common shares outstanding - diluted 188,333,197 189,149,930 Basic earnings per share of common stock $ 1.63 $ 0.82 Diluted earnings per share of common stock 1.58 0.79 |
Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share | The following table sets forth the average number of stock options that were anti-dilutive and, therefore, were not included in the Company’s diluted EPS calculations for the three months ended March 31, 2018 and 2017. Three Months Ended March 31, 2018 2017 Average number of stock options — 169,118 |
Accounts and Notes Receivable38
Accounts and Notes Receivable, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | March 31, 2018 December 31, 2017 Accounts receivable - trade, net (1) $ 1,016 $ 847 VAT, GST, and other taxes (2) 57 54 Other receivables (3) 10 18 Total accounts and notes receivable, net $ 1,083 $ 919 (1) Accounts receivable - trade, net includes trade notes receivable of $3 and $1 and is net of allowances for doubtful accounts of $6 and $5 at March 31, 2018 and December 31, 2017, respectively. Such allowances are equal to the estimated uncollectible amounts. (2) Value added tax (VAT) and goods and services tax (GST) for various jurisdictions. (3) Other receivables consist of notes receivable, advances, and other deposits. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Net [Abstract] | |
Schedule of Inventories | March 31, 2018 December 31, 2017 Finished products $ 695 $ 648 Semi-finished products 164 164 Raw materials, stores, and supplies 326 313 Inventories before LIFO adjustment 1,185 1,125 Less: Adjustment of inventories to LIFO basis (193 ) (190 ) Total inventories $ 992 $ 935 |
Property, Plant, and Equipmen40
Property, Plant, and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant, and Equipment, Net | The following table sets forth the components of the Company’s property, plant, and equipment, net at March 31, 2018 and December 31, 2017. March 31, 2018 December 31, 2017 Equipment $ 7,047 $ 6,961 Buildings 905 875 Construction-in-progress 608 520 Land 123 119 Mineral rights 36 36 Property, plant, and equipment 8,719 8,511 Less: Accumulated depreciation (5,614 ) (5,503 ) Total property, plant, and equipment, net $ 3,105 $ 3,008 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | The following table sets forth the components of the Company’s other assets at March 31, 2018 and December 31, 2017 March 31, 2018 December 31, 2017 Capitalized repair and maintenance costs $ 102 $ 117 Pension assets (1) 282 260 Deferred income taxes 46 40 Miscellaneous (2) 34 36 Total other assets $ 464 $ 453 (1) Pension assets represent the funded status of certain of the Company's long-term employee benefit plans. (2) Miscellaneous includes deferred financing fees related to the Company’s senior secured revolving credit facility of $8 and $9 at March 31, 2018 and December 31, 2017, respectively, and Company-owned life insurance policies on former key executives of a U.S. subsidiary. These life insurance policies have a cash surrender value of $64 at March 31, 2018 and December 31, 2017, and are presented net of outstanding loans from the policy issuer of $64 and $63 at March 31, 2018 and December 31, 2017, respectively. |
Accounts Payable (Tables)
Accounts Payable (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payables And Accruals [Abstract] | |
Schedule of Accounts Payable | The following table sets forth the components of the Company’s accounts payable at March 31, 2018 and December 31, 2017. March 31, 2018 December 31, 2017 Trade payables $ 1,094 $ 1,008 Dividends payable (1) — 31 VAT and other payables 27 36 Total accounts payable $ 1,121 $ 1,075 (1) Represents a $0.17 per share dividend declared in December 2017, which was paid on March 15, 2018 to the Company’s shareholders of record as of the close of business on February 15, 2018. |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payables And Accruals [Abstract] | |
Schedule of Other Accrued Liabilities | The following table sets forth the components of the Company’s other accrued liabilities at March 31, 2018 and December 31, 2017. March 31, 2018 December 31, 2017 Compensation and other employee-related costs $ 94 $ 174 Employee separation costs (1) 24 27 Accrued litigation (2) 10 13 Environmental remediation (2) 75 66 Income taxes 68 58 Customer rebates 54 83 Deferred income 5 8 Accrued interest 69 24 Miscellaneous (3) 88 105 Total other accrued liabilities $ 487 $ 558 (1) Represents the current portion of accrued employee separation costs related to the Company’s restructuring activities. (2) Represents the current portions of accrued litigation and environmental remediation, which are discussed further in “Note 17 – Commitments and Contingent Liabilities.” (3) Miscellaneous primarily includes accrued utility expenses, property taxes, an accrued indemnification liability, the current portion of the Company’s asset retirement obligations, and other miscellaneous expenses. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Components of Debt | The following table sets forth the components of the Company’s debt at March 31, 2018 and December 31, 2017. March 31, 2018 December 31, 2017 Senior secured term loans: Tranche B-1 Dollar Term Loan due May 2022 $ 921 $ 923 Tranche B-1 Euro Term Loan due May 2022 (€393 at March 31, 2018 and €395 at December 31, 2017) 487 469 Senior unsecured notes: 6.625% due May 2023 1,158 1,158 7.000% due May 2025 750 750 6.125% due May 2023 (€295 at March 31, 2018 and December 31, 2017) 365 350 5.375% due May 2027 500 500 Capital lease obligations 2 3 Build-to-suit lease obligation 19 8 Total debt 4,202 4,161 Less: Unamortized issue discounts (8 ) (8 ) Less: Unamortized debt issuance costs (39 ) (41 ) Less: Current maturities of long-term debt (14 ) (15 ) Total long-term debt, net $ 4,141 $ 4,097 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Liabilities | The following table sets forth the components of the Company’s other liabilities at March 31, 2018 and December 31, 2017. March 31, 2018 December 31, 2017 Environmental remediation (1) $ 179 $ 187 Employee-related costs (2) 131 123 Accrued litigation (1) 50 48 Asset retirement obligations 44 43 Deferred income 5 6 Miscellaneous (3) 66 68 Total other liabilities $ 475 $ 475 (1) The Company’s accrued environmental remediation and accrued litigation liabilities are discussed further in “Note 17 – Commitments and Contingent Liabilities.” (2) Employee-related costs primarily represent liabilities associated with the Company’s long-term employee benefits plans. (3) Miscellaneous primarily includes an accrued indemnification liability of $50 and $52 at March 31, 2018 and December 31, 2017, respectively. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Assets at Fair Value | The following table sets forth the fair value of the Company’s derivative assets and liabilities, and their level within the fair value hierarchy, at March 31, 2018 and December 31, 2017. Fair Value Using Level 2 Inputs Balance Sheet Location March 31, 2018 December 31, 2017 Asset derivatives: Foreign currency forward contracts Accounts and notes receivable, net $ 1 $ — Total asset derivatives $ 1 $ — Liability derivatives: Foreign currency forward contracts Other accrued liabilities $ 2 $ — Total liability derivatives $ 2 $ — |
Schedule of Derivative Liabilities at Fair Value | The following table sets forth the fair value of the Company’s derivative assets and liabilities, and their level within the fair value hierarchy, at March 31, 2018 and December 31, 2017. Fair Value Using Level 2 Inputs Balance Sheet Location March 31, 2018 December 31, 2017 Asset derivatives: Foreign currency forward contracts Accounts and notes receivable, net $ 1 $ — Total asset derivatives $ 1 $ — Liability derivatives: Foreign currency forward contracts Other accrued liabilities $ 2 $ — Total liability derivatives $ 2 $ — |
Long-term Employee Benefits (Ta
Long-term Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
General Discussion Of Pension And Other Postretirement Benefits [Abstract] | |
Schedules of Net Periodic Pension Income | The following table sets forth the Company’s net periodic pension income and amounts recognized in other comprehensive income (loss) for the three months ended March 31, 2018 and 2017. Three Months Ended March 31, 2018 2017 Net periodic pension (cost) income: Service cost $ (4 ) $ (4 ) Interest cost (4 ) (4 ) Expected return on plan assets 15 17 Amortization of actuarial loss (4 ) (5 ) Net periodic pension income 3 4 Changes in plan assets and benefit obligations recognized in other comprehensive income: Amortization of actuarial loss 4 5 Benefit recognized in other comprehensive income 4 5 Total net periodic pension income and benefit recognized in comprehensive income $ 7 $ 9 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock Options Weighted Average Assumptions | The fair value of the stock options is based upon the Black-Scholes valuation model. The following table sets forth the assumptions used to determine the fair value of stock option awards granted during the three months ended March 31, 2018. Three Months Ended March 31, 2018 Risk-free interest rate 2.64 % Expected term (years) 6.00 Volatility 47.56 % Dividend yield 1.40 % Fair value per stock option $ 20.55 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following table sets forth certain summary financial information for the Company’s reportable segments and Corporate and Other for the three months ended March 31, 2018 and 2017. Three Months Ended March 31, Fluoroproducts Chemical Solutions Titanium Technologies Corporate and Other Total 2018 Net sales to external customers $ 732 $ 144 $ 854 $ — $ 1,730 Adjusted EBITDA 206 11 294 (43 ) 468 Depreciation and amortization 28 5 30 7 70 2017 Net sales to external customers $ 652 $ 139 $ 646 $ — $ 1,437 Adjusted EBITDA 155 12 159 (41 ) 285 Depreciation and amortization 26 4 33 8 71 |
Reconciliation of EBITDA from Segments to Consolidated Net Income Before Income Taxes | The following table sets forth a reconciliation of Adjusted EBITDA to the Company’s consolidated net income before income taxes for the three months ended March 31, 2018 and 2017. Three Months Ended March 31, 2018 2017 Income before income taxes $ 381 $ 173 Interest expense, net 52 51 Depreciation and amortization 70 71 Non-operating pension and other post-retirement employee benefit income (7 ) (8 ) Exchange gains — (5 ) Restructuring, asset-related, and other charges, net 10 12 Gain on sale of assets and businesses (1) (42 ) (16 ) Legal and other charges (2) 4 7 Adjusted EBITDA $ 468 $ 285 (1) For the three months ended March 31, 2018, gain on sale includes a $42 gain associated with the sale of the Company’s Linden, New Jersey site. For the three months ended March 31, 2017, gain on sale includes a $12 gain associated with the sale of the Company’s Edge Moor, Delaware site and a $4 gain associated with the sale of the Company’s land in Repauno, New Jersey that was previously deferred and realized upon meeting certain milestones. (2) Includes litigation settlements, water treatment accruals, and other charges. |
Guarantor Condensed Consolida50
Guarantor Condensed Consolidating Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Statements of Comprehensive Income | Condensed Consolidating Statements of Comprehensive Income Three Months Ended March 31, 2018 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Adjustments Consolidated Net sales $ — $ 1,017 $ 1,174 $ (461 ) $ 1,730 Cost of goods sold — 798 871 (476 ) 1,193 Gross profit — 219 303 15 537 Selling, general, and administrative expense 10 102 40 (9 ) 143 Research and development expense — 19 1 — 20 Restructuring, asset-related, and other charges, net — 9 1 — 10 Total expenses 10 130 42 (9 ) 173 Equity in earnings of affiliates — — 12 — 12 Equity in earnings of subsidiaries 331 — — (331 ) — Interest (expense) income, net (56 ) 2 2 — (52 ) Intercompany interest income (expense), net 13 1 (14 ) — — Other income (expense), net 9 73 (16 ) (9 ) 57 Income before income taxes 287 165 245 (316 ) 381 (Benefit from) provision for income taxes (10 ) 50 45 (1 ) 84 Net income 297 115 200 (315 ) 297 Less: Net income attributable to non-controlling interests — — — — — Net income attributable to Chemours $ 297 $ 115 $ 200 $ (315 ) $ 297 Comprehensive income attributable to Chemours $ 373 $ 117 $ 299 $ (416 ) $ 373 Condensed Consolidating Statements of Comprehensive Income Three Months Ended March 31, 2017 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Adjustments Consolidated Net sales $ — $ 960 $ 894 $ (417 ) $ 1,437 Cost of goods sold — 795 706 (420 ) 1,081 Gross profit — 165 188 3 356 Selling, general, and administrative expense 7 114 35 (6 ) 150 Research and development expense — 18 1 — 19 Restructuring, asset-related, and other charges, net — 11 1 — 12 Total expenses 7 143 37 (6 ) 181 Equity in earnings of affiliates — — 7 — 7 Equity in earnings of subsidiaries 172 — — (172 ) — Interest (expense) income, net (51 ) (1 ) 1 — (51 ) Intercompany interest income (expense), net 16 — (16 ) — — Other income, net 6 42 — (6 ) 42 Income before income taxes 136 63 143 (169 ) 173 (Benefit from) provision for income taxes (14 ) 5 30 1 22 Net income 150 58 113 (170 ) 151 Less: Net income attributable to non-controlling interests — — 1 — 1 Net income attributable to Chemours $ 150 $ 58 $ 112 $ (170 ) $ 150 Comprehensive income attributable to Chemours $ 239 $ 59 $ 210 $ (269 ) $ 239 |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets March 31, 2018 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 470 $ 964 $ — $ 1,434 Accounts and notes receivable, net — 367 716 — 1,083 Intercompany receivable 19 1,175 589 (1,783 ) — Inventories — 419 647 (74 ) 992 Prepaid expenses and other — 45 30 — 75 Total current assets 19 2,476 2,946 (1,857 ) 3,584 Property, plant, and equipment — 6,538 2,181 — 8,719 Less: Accumulated depreciation — (4,484 ) (1,130 ) — (5,614 ) Property, plant and equipment, net — 2,054 1,051 — 3,105 Goodwill and other intangible assets, net — 151 14 — 165 Investments in affiliates — — 166 — 166 Investment in subsidiaries 4,844 — — (4,844 ) — Intercompany notes receivable 1,150 — — (1,150 ) — Other assets 30 103 353 (22 ) 464 Total assets $ 6,043 $ 4,784 $ 4,530 $ (7,873 ) $ 7,484 Liabilities Current liabilities: Accounts payable $ — $ 626 $ 495 $ — $ 1,121 Current maturities of long-term debt 14 — — — 14 Intercompany payable 827 589 367 (1,783 ) — Other accrued liabilities 85 240 163 (1 ) 487 Total current liabilities 926 1,455 1,025 (1,784 ) 1,622 Long-term debt, net 4,120 21 — — 4,141 Intercompany notes payable — — 1,150 (1,150 ) — Deferred income taxes — 156 111 (23 ) 244 Other liabilities — 384 91 — 475 Total liabilities 5,046 2,016 2,377 (2,957 ) 6,482 Commitments and contingent liabilities Equity Total Chemours stockholders’ equity 997 2,768 2,148 (4,916 ) 997 Non-controlling interests — — 5 — 5 Total equity 997 2,768 2,153 (4,916 ) 1,002 Total liabilities and equity $ 6,043 $ 4,784 $ 4,530 $ (7,873 ) $ 7,484 Condensed Consolidating Balance Sheets December 31, 2017 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 761 $ 795 $ — $ 1,556 Accounts and notes receivable, net — 308 611 — 919 Intercompany receivable 3 904 581 (1,488 ) — Inventories — 394 631 (90 ) 935 Prepaid expenses and other — 57 15 11 83 Total current assets 3 2,424 2,633 (1,567 ) 3,493 Property, plant, and equipment — 6,449 2,062 — 8,511 Less: Accumulated depreciation — (4,438 ) (1,065 ) — (5,503 ) Property, plant and equipment, net — 2,011 997 — 3,008 Goodwill and other intangible assets, net — 152 14 — 166 Investments in affiliates — — 173 — 173 Investment in subsidiaries 4,393 — — (4,393 ) — Intercompany notes receivable 1,150 — — (1,150 ) — Other assets 23 115 328 (13 ) 453 Total assets $ 5,569 $ 4,702 $ 4,145 $ (7,123 ) $ 7,293 Liabilities Current liabilities: Accounts payable $ 31 $ 606 $ 438 $ — $ 1,075 Current maturities of long-term debt 15 — — — 15 Intercompany payable 542 581 365 (1,488 ) — Other accrued liabilities 34 343 181 — 558 Total current liabilities 622 1,530 984 (1,488 ) 1,648 Long-term debt, net 4,087 10 — — 4,097 Intercompany notes payable — — 1,150 (1,150 ) — Deferred income taxes — 127 105 (24 ) 208 Other liabilities — 388 87 — 475 Total liabilities 4,709 2,055 2,326 (2,662 ) 6,428 Commitments and contingent liabilities Equity Total Chemours stockholders’ equity 860 2,647 1,814 (4,461 ) 860 Non-controlling interests — — 5 — 5 Total equity 860 2,647 1,819 (4,461 ) 865 Total liabilities and equity $ 5,569 $ 4,702 $ 4,145 $ (7,123 ) $ 7,293 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2018 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Adjustments Consolidated Cash flows from operating activities Cash (used for) provided by operating activities $ (17 ) $ 33 $ 180 $ — $ 196 Cash flows from investing activities Purchases of property, plant, and equipment — (80 ) (22 ) — (102 ) Proceeds from sales of assets and businesses, net — 39 — — 39 Intercompany investing activities — (288 ) — 288 — Foreign exchange contract settlements, net — 5 — — 5 Cash used for investing activities — (324 ) (22 ) 288 (58 ) Cash flows from financing activities Debt repayments (4 ) — — — (4 ) Purchases of treasury stock at cost (240 ) (240 ) Intercompany financing activities 288 (288 ) — Proceeds from exercised stock options, net 5 — — — 5 Tax payments related to withholdings on vested restricted stock units (1 ) — — — (1 ) Payment of dividends (31 ) — — — (31 ) Cash provided by (used for) financing activities 17 — — (288 ) (271 ) Effect of exchange rate changes on cash and cash equivalents — — 11 — 11 (Decrease) increase in cash and cash equivalents — (291 ) 169 — (122 ) Cash and cash equivalents at beginning of the period — 761 795 — 1,556 Cash and cash equivalents at end of the period $ — $ 470 $ 964 $ — $ 1,434 Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2017 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Adjustments Consolidated Cash flows from operating activities Cash (used for) provided by operating activities $ (3 ) $ (2 ) $ 46 $ — $ 41 Cash flows from investing activities Purchases of property, plant, and equipment — (50 ) (19 ) — (69 ) Proceeds from sales of assets and businesses, net — 9 — — 9 Intercompany investing activities — 8 — (8 ) — Foreign exchange contract settlements, net — (3 ) — — (3 ) Cash used for investing activities — (36 ) (19 ) (8 ) (63 ) Cash flows from financing activities Intercompany short-term borrowing repayments, net (8 ) — — 8 — Debt repayments (4 ) — — — (4 ) Proceeds from exercised stock options, net 20 — — — 20 Payment of dividends (5 ) — — — (5 ) Cash provided by financing activities 3 — — 8 11 Effect of exchange rate changes on cash and cash equivalents — — 7 — 7 (Decrease) increase in cash and cash equivalents — (38 ) 34 — (4 ) Cash and cash equivalents at beginning of the period — 224 678 — 902 Cash and cash equivalents at end of the period $ — $ 186 $ 712 $ — $ 898 |
Background, Description of th51
Background, Description of the Business and Basis of Presentation (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2018segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of reportable segments | 3 |
Recent Accounting Pronounceme52
Recent Accounting Pronouncements (Narrative) (Details) - ASU 2014-09 [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Net Sales [Member] | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Changes in classification of amounts on adoption of new guidance | $ 2 |
Cost of Goods Sold [Member] | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Changes in classification of amounts on adoption of new guidance | $ 1 |
Recent Accounting Pronounceme53
Recent Accounting Pronouncements (Impacts of Adoption of Topic 606 on Consolidated Statements of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Net sales | $ 1,730 | $ 1,437 |
Cost of goods sold | 1,193 | 1,081 |
Gross profit | 537 | 356 |
Selling, general, and administrative expense | 143 | 150 |
Research and development expense | 20 | 19 |
Restructuring, asset-related, and other charges, net | 10 | 12 |
Total expenses | 173 | 181 |
Equity in earnings of affiliates | 12 | 7 |
Interest expense, net | (52) | (51) |
Other income, net | 57 | 42 |
Income before income taxes | 381 | 173 |
Provision for income taxes | 84 | 22 |
Net income | 297 | 151 |
Less: Net income attributable to non-controlling interests | 0 | 1 |
Net income attributable to Chemours | 297 | $ 150 |
ASU 2014-09 [Member] | Without Topic 606 [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Net sales | 1,728 | |
Cost of goods sold | 1,192 | |
Gross profit | 536 | |
Selling, general, and administrative expense | 144 | |
Research and development expense | 20 | |
Restructuring, asset-related, and other charges, net | 10 | |
Total expenses | 174 | |
Equity in earnings of affiliates | 12 | |
Interest expense, net | (52) | |
Other income, net | 59 | |
Income before income taxes | 381 | |
Provision for income taxes | 84 | |
Net income | 297 | |
Net income attributable to Chemours | 297 | |
ASU 2014-09 [Member] | Topic 606 Adjustments [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Net sales | 2 | |
Cost of goods sold | 1 | |
Gross profit | 1 | |
Selling, general, and administrative expense | (1) | |
Total expenses | (1) | |
Other income, net | $ (2) |
Recent Accounting Pronounceme54
Recent Accounting Pronouncements (Reclassification of Non-operating Pension and Other Post-retirement Employee Benefit Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Net sales | $ 1,730 | $ 1,437 |
Cost of goods sold | 1,193 | 1,081 |
Gross profit | 537 | 356 |
Selling, general, and administrative expense | 143 | 150 |
Research and development expense | 20 | 19 |
Restructuring, asset-related, and other charges, net | 10 | 12 |
Total expenses | 173 | 181 |
Equity in earnings of affiliates | 12 | 7 |
Interest expense, net | (52) | (51) |
Other income, net | 57 | 42 |
Income before income taxes | 381 | 173 |
Provision for income taxes | 84 | 22 |
Net income | 297 | 151 |
Less: Net income attributable to non-controlling interests | 0 | 1 |
Net income attributable to Chemours | $ 297 | 150 |
As Reported [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Net sales | 1,437 | |
Cost of goods sold | 1,079 | |
Gross profit | 358 | |
Selling, general, and administrative expense | 144 | |
Research and development expense | 19 | |
Restructuring, asset-related, and other charges, net | 12 | |
Total expenses | 175 | |
Equity in earnings of affiliates | 7 | |
Interest expense, net | (51) | |
Other income, net | 34 | |
Income before income taxes | 173 | |
Provision for income taxes | 22 | |
Net income | 151 | |
Less: Net income attributable to non-controlling interests | 1 | |
Net income attributable to Chemours | 150 | |
ASU 2017-07 [Member] | Adjustments [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Cost of goods sold | 2 | |
Gross profit | (2) | |
Selling, general, and administrative expense | 6 | |
Total expenses | 6 | |
Other income, net | $ 8 |
Significant Transactions and 55
Significant Transactions and Events (Narrative) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2018USD ($) | Mar. 31, 2016a | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | |
Significant Transactions And Events [Line Items] | ||||
Recognized gain on sale of land | $ 42 | $ 16 | ||
Net cash proceeds of transaction | 39 | 9 | ||
Environmental remediation activities amount | $ 3 | $ 11 | $ 9 | |
Linden, New Jersey [Member] | ||||
Significant Transactions And Events [Line Items] | ||||
Number of acre of land for sale | a | 210 |
Net Sales (Narrative) (Details)
Net Sales (Narrative) (Details) - Topic 606 [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | ||
Payment terms for invoices | less than 90 days | |
Contract asset balances | $ 0 | $ 0 |
Capitalized costs | 0 | $ 0 |
Remaining performance obligations | $ 87,000,000 | |
Percentage of remaining performance obligations as revenue in 2018 | 20.00% | |
Percentage of remaining performance obligations as revenue in 2019 | 25.00% | |
Maximum [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Remaining performance obligations original expected period | 1 year |
Net Sales - Summary of Disaggre
Net Sales - Summary of Disaggregation of Net Sales by Geographical Region, Product Group, and Segment (Details) - Topic 606 [Member] - Transferred at a Point in Time [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | $ 1,730 |
Fluorochemicals [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 395 |
Fluoropolymers [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 337 |
Mining Solutions [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 66 |
Performance Chemicals and Intermediates [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 78 |
Titanium Dioxide and Other Minerals [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 854 |
North America [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 617 |
Asia Pacific [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 414 |
Europe, the Middle East, and Africa [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 474 |
Latin America [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 225 |
Fluoroproducts [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 732 |
Fluoroproducts [Member] | Fluorochemicals [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 395 |
Fluoroproducts [Member] | Fluoropolymers [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 337 |
Fluoroproducts [Member] | North America [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 303 |
Fluoroproducts [Member] | Asia Pacific [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 153 |
Fluoroproducts [Member] | Europe, the Middle East, and Africa [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 222 |
Fluoroproducts [Member] | Latin America [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 54 |
Chemical Solutions [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 144 |
Chemical Solutions [Member] | Mining Solutions [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 66 |
Chemical Solutions [Member] | Performance Chemicals and Intermediates [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 78 |
Chemical Solutions [Member] | North America [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 81 |
Chemical Solutions [Member] | Asia Pacific [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 19 |
Chemical Solutions [Member] | Europe, the Middle East, and Africa [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 5 |
Chemical Solutions [Member] | Latin America [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 39 |
Titanium Technologies [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 854 |
Titanium Technologies [Member] | Titanium Dioxide and Other Minerals [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 854 |
Titanium Technologies [Member] | North America [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 233 |
Titanium Technologies [Member] | Asia Pacific [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 242 |
Titanium Technologies [Member] | Europe, the Middle East, and Africa [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | 247 |
Titanium Technologies [Member] | Latin America [Member] | |
Disaggregation Of Revenue [Line Items] | |
Disaggregation of Net Sales | $ 132 |
Net Sales - Summary of Contract
Net Sales - Summary of Contract Balances from Contracts with Customers (Details) - Topic 606 [Member] - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Disaggregation Of Revenue [Line Items] | ||
Accounts receivable - trade, net | $ 1,016 | $ 847 |
Customer rebates | $ 54 | $ 83 |
Net Sales - Summary of Contra59
Net Sales - Summary of Contract Balances from Contracts with Customers (Parenthetical) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Disaggregation Of Revenue [Line Items] | ||
Trade notes receivable | $ 10 | $ 18 |
Allowance for doubtful accounts | 6 | 5 |
Topic 606 [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Trade notes receivable | 3 | 1 |
Allowance for doubtful accounts | $ 6 | $ 5 |
Restructuring, Asset-Related,60
Restructuring, Asset-Related, and Other Charges, Net (Charges) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring And Related Activities [Abstract] | ||
Employee separation charges | $ 3 | $ 0 |
Decommissioning and other charges, net | 7 | 12 |
Total restructuring, asset-related, and other charges, net | $ 10 | $ 12 |
Restructuring, Asset-Related,61
Restructuring, Asset-Related, and Other Charges, Net (Segment Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring, asset-related, and other charges, net | $ 10 | $ 12 |
2017 Restructuring Program [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and asset related charges, net | 9 | 0 |
Plant and Product Line Closures [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and asset related charges, net | 1 | 12 |
Operating Segments [Member] | Fluoroproducts [Member] | Plant and Product Line Closures [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and asset related charges, net | 0 | 3 |
Operating Segments [Member] | Chemical Solutions [Member] | Plant and Product Line Closures [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and asset related charges, net | 1 | 5 |
Operating Segments [Member] | Titanium Technologies [Member] | Plant and Product Line Closures [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and asset related charges, net | $ 0 | $ 4 |
Restructuring, Asset-Related,62
Restructuring, Asset-Related, and Other Charges, Net (Narrative) (Details) | Dec. 31, 2017USD ($) | Aug. 31, 2015production_line | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2015position | Dec. 31, 2018USD ($) | Dec. 31, 2017Employee |
2017 Restructuring Program [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Employee separation and asset related charges | $ 9,000,000 | $ 0 | ||||||
Aggregate restructuring costs | 41,000,000 | |||||||
2017 Restructuring Program [Member] | Restructuring-Related Charges Expected to be Incurred Though December 31, 2018 [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Employee separation and asset related charges | $ 20,000,000 | |||||||
New Johnsonville, Tennessee [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of production lines shut down during period | production_line | 1 | |||||||
Additional Restructuring Charges [Member] | 2017 Restructuring Program [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Employee separation and asset related charges | 9,000,000 | 0 | ||||||
Voluntary Separation Program [Member] | 2017 Restructuring Program [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Expected number of positions to be eliminated | Employee | 300 | |||||||
Amounts recognized in consolidated financial statements | $ 18,000,000 | |||||||
Operating Segments [Member] | Niagara Falls, NY [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs, excluding non-cash asset-related charges | 32,000,000 | |||||||
Expected number of positions to be eliminated | position | 200 | |||||||
Operating Segments [Member] | Fluoroproducts [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs, excluding non-cash asset-related charges | $ 17,000,000 | |||||||
Operating Segments [Member] | Titanium Technologies [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Land sold | 10,000,000 | |||||||
Operating Segments [Member] | Titanium Technologies [Member] | Edge Moor Plant [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs, excluding non-cash asset-related charges | 60,000,000 | |||||||
Operating Segments [Member] | Decommissioning Costs [Member] | Niagara Falls, NY [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Employee separation and asset related charges | 1,000,000 | 5,000,000 | ||||||
Operating Segments [Member] | Decommissioning Costs [Member] | Deepwater, New Jersey [Member] | Maximum [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Employee separation and asset related charges | 1,000,000 | |||||||
Operating Segments [Member] | Decommissioning Costs [Member] | Fluoroproducts [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Employee separation and asset related charges | 3,000,000 | |||||||
Operating Segments [Member] | Decommissioning Costs [Member] | Titanium Technologies [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Employee separation and asset related charges | $ 4,000,000 | |||||||
Operating Segments [Member] | Additional Restructuring Charges [Member] | Niagara Falls, NY [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Additional restructuring charges expected to be incurred in 2018 | 3,000,000 | |||||||
Operating Segments [Member] | Additional Restructuring Charges [Member] | Deepwater, New Jersey [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Employee separation and asset related charges | $ 30,000,000 |
Restructuring, Asset-Related,63
Restructuring, Asset-Related, and Other Charges, Net (Restructuring Program Schedule) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning | $ 27 |
Charges to income | 3 |
Payments | (6) |
Restructuring reserve, ending | 24 |
Titanium Technologies Site Closure [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning | 1 |
Charges to income | 0 |
Payments | 0 |
Restructuring reserve, ending | 1 |
Fluoroproducts Lines Shutdown [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning | 0 |
Charges to income | 0 |
Payments | 0 |
Restructuring reserve, ending | 0 |
Chemical Solutions Site Closures [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning | 2 |
Charges to income | 0 |
Payments | (1) |
Restructuring reserve, ending | 1 |
2015 Global Restructuring Program [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning | 1 |
Charges to income | 0 |
Payments | 0 |
Restructuring reserve, ending | 1 |
2017 Restructuring Program [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning | 23 |
Charges to income | 3 |
Payments | (5) |
Restructuring reserve, ending | $ 21 |
Other Income,Net (Components of
Other Income,Net (Components of Other Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Income And Expenses [Abstract] | ||
Leasing, contract services and miscellaneous income | $ 3 | $ 8 |
Royalty income | 5 | 5 |
Gain on sale of assets and businesses | 42 | 16 |
Exchange gains, net | 0 | 5 |
Non-operating pension and other post-retirement employee benefit income | 7 | 8 |
Total other income, net | $ 57 | $ 42 |
Other Income,Net (Components 65
Other Income,Net (Components of Other Income) (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Linden Site [Member] | ||
Component of Other Income [Line Items] | ||
Gain on sale of asset | $ 42 | |
Edge Moor Site [Member] | ||
Component of Other Income [Line Items] | ||
Gain on sale of asset | $ 12 | |
Land [Member] | Repauno New Jersey [Member] | ||
Component of Other Income [Line Items] | ||
Gain on sale of asset | $ 4 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Provision for income taxes | $ 84 | $ 22 | |
Effective income tax rate | 22.00% | 13.00% | |
Income tax expenses related to asset sales | $ 10 | $ 6 | |
Income tax expenses related to impact of tax reform provisions | 8 | ||
Income tax benefits related to windfalls on share-based payments | $ 5 | $ 10 | |
Income tax benefit as impact of Tax Act | $ 3 | ||
Maximum measurement period for estimation of Tax Act | 1 year |
Earnings Per Share of Common 67
Earnings Per Share of Common Stock (Earnings per Share Calculation) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator: | ||
Net income attributable to Chemours | $ 297 | $ 150 |
Denominator: | ||
Weighted-average number of common shares outstanding - basic | 182,069,982 | 183,408,309 |
Dilutive effect of the Company’s employee compensation plans | 6,263,215 | 5,741,621 |
Weighted-average number of common shares outstanding - diluted | 188,333,197 | 189,149,930 |
Basic earnings per share of common stock | $ 1.63 | $ 0.82 |
Diluted earnings per share of common stock | $ 1.58 | $ 0.79 |
Earnings Per Share of Common 68
Earnings Per Share of Common Stock (Anti-dilutive Shares Excluded from Computation of Earnings per Share) (Details) | 3 Months Ended |
Mar. 31, 2017shares | |
Earnings Per Share [Abstract] | |
Average number of stock options | 169,118 |
Accounts and Notes Receivable69
Accounts and Notes Receivable, Net (Schedule of Accounts and Notes Receivable) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Accounts receivable - trade, net | $ 1,016 | $ 847 |
VAT, GST and other taxes | 57 | 54 |
Other receivables | 10 | 18 |
Total accounts and notes receivable, net | $ 1,083 | $ 919 |
Accounts and Notes Receivable70
Accounts and Notes Receivable, Net (Schedule of Accounts and Notes Receivable) (Parenthetical) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts Notes And Loans Receivable [Line Items] | ||
Accounts receivable - trade, net | $ 1,016 | $ 847 |
Allowance for doubtful accounts receivable | 6 | 5 |
Trade Notes Receivable [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accounts receivable - trade, net | $ 3 | $ 1 |
Accounts and Notes Receivable71
Accounts and Notes Receivable, Net (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Receivables [Abstract] | ||
Bad debt expense | $ 1 | $ 1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Net [Abstract] | ||
Finished products | $ 695 | $ 648 |
Semi-finished products | 164 | 164 |
Raw materials, stores, and supplies | 326 | 313 |
Inventories before LIFO adjustment | 1,185 | 1,125 |
Less: Adjustment of inventories to LIFO basis | (193) | (190) |
Total inventories | 992 | 935 |
LIFO inventory amount | $ 542 | $ 509 |
Percentage of LIFO inventory | 46.00% | 45.00% |
Property, Plant, and Equipmen73
Property, Plant, and Equipment, Net (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 8,719 | $ 8,511 |
Less: Accumulated depreciation | (5,614) | (5,503) |
Property, plant, and equipment, net | 3,105 | 3,008 |
Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 7,047 | 6,961 |
Building [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 905 | 875 |
Construction-in-progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 608 | 520 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 123 | 119 |
Mineral rights [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 36 | $ 36 |
Property, Plant, and Equipmen74
Property, Plant, and Equipment, Net (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 69 | $ 70 | |
Capital leased assets | 7 | $ 7 | |
Build to suit lease assets | $ 19 | $ 8 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Other Assets [Line Items] | ||
Capitalized repair and maintenance costs | $ 102 | $ 117 |
Pension assets | 282 | 260 |
Deferred income taxes | 46 | 40 |
Miscellaneous | 34 | 36 |
Total other assets | 464 | 453 |
Life insurance policies cash surrender value | 64 | 64 |
Outstanding loans from policy issuer | 64 | 63 |
Senior Secured Revolving Credit Facility [Member] | ||
Other Assets [Line Items] | ||
Deferred financing fee | $ 8 | $ 9 |
Accounts Payable (Details)
Accounts Payable (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Payables And Accruals [Abstract] | ||
Trade payables | $ 1,094 | $ 1,008 |
Dividends payable | 31 | |
VAT and other payables | 27 | 36 |
Total accounts payable | $ 1,121 | $ 1,075 |
Accounts Payable (Parenthetical
Accounts Payable (Parenthetical) (Details) | 3 Months Ended |
Mar. 31, 2018$ / shares | |
Payables And Accruals [Abstract] | |
Dividend per share | $ 0.17 |
Dividends payable declared date | 2017-12 |
Dividends payable payment date | Mar. 15, 2018 |
Dividends payable record date | Feb. 15, 2018 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Accrued Liabilities, Current [Abstract] | |||
Compensation and other employee-related costs | $ 94 | $ 174 | |
Employee separation costs | [1] | 24 | 27 |
Accrued litigation | [2] | 10 | 13 |
Environmental remediation | [2] | 75 | 66 |
Income taxes | 68 | 58 | |
Customer rebates | 54 | 83 | |
Deferred income | 5 | 8 | |
Accrued interest | 69 | 24 | |
Miscellaneous | [3] | 88 | 105 |
Total other accrued liabilities | $ 487 | $ 558 | |
[1] | Represents the current portion of accrued employee separation costs related to the Company’s restructuring activities. | ||
[2] | Represents the current portions of accrued litigation and environmental remediation, which are discussed further in “Note 17 – Commitments and Contingent Liabilities.” | ||
[3] | Miscellaneous primarily includes accrued utility expenses, property taxes, an accrued indemnification liability, the current portion of the Company’s asset retirement obligations, and other miscellaneous expenses. |
Debt (Components of Debt) (Deta
Debt (Components of Debt) (Details) € in Millions, $ in Millions | Mar. 31, 2018USD ($) | Mar. 31, 2018EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) |
Debt Instrument [Line Items] | ||||
Capital lease obligations | $ 2 | $ 3 | ||
Build-to-suit lease obligation | 19 | 8 | ||
Total debt | 4,202 | 4,161 | ||
Less: Unamortized issue discounts | (8) | (8) | ||
Less: Unamortized debt issuance costs | (39) | (41) | ||
Less: Current maturities of long-term debt | (14) | (15) | ||
Total long-term debt, net | 4,141 | 4,097 | ||
Senior unsecured notes [Member] | 6.625% Senior Notes Due May 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 1,158 | $ 1,158 | ||
Debt instrument interest rate | 6.625% | 6.625% | 6.625% | 6.625% |
Senior unsecured notes [Member] | 7.000% Senior Notes Due May 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 750 | $ 750 | ||
Debt instrument interest rate | 7.00% | 7.00% | 7.00% | 7.00% |
Senior unsecured notes [Member] | Senior Notes 6.125% Due May 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 365 | $ 350 | ||
Long-term debt, gross | € | € 295 | € 295 | ||
Debt instrument interest rate | 6.125% | 6.125% | 6.125% | 6.125% |
Senior unsecured notes [Member] | 5.375% Senior Notes Due May 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 500 | $ 500 | ||
Debt instrument interest rate | 5.375% | 5.375% | 5.375% | 5.375% |
Senior Secured Tranche B-1 Dollar Term Loan Due May 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 921 | $ 923 | ||
Senior Secured Tranche B-1 Euro Term Loan Due May 2022 [Member] | Senior unsecured notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 487 | € 393 | $ 469 | € 395 |
Debt (Senior Secured Credit Fac
Debt (Senior Secured Credit Facilities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Senior secured term loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt instrument term | 7 years | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt instrument term | 5 years | |
Line of credit facility, maximum borrowing capacity | $ 750 | |
Long-term debt | 0 | $ 0 |
Letters of credit outstanding | $ 106 | $ 101 |
Commitment fee percentage | 0.20% | |
Euro Term Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Effective interest rates on senior secured term loan | 3.00% | |
Dollar Term Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Effective interest rates on senior secured term loan | 4.15% |
Debt (Build-to-suit Lease Oblig
Debt (Build-to-suit Lease Obligation) (Details) - Discovery Hub [Member] $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($) | Oct. 31, 2017ft² | |
Debt Instrument [Line Items] | ||
Build to suit lease area of land | ft² | 312,000 | |
Build to suit lease project costs paid by third party owner lessor | $ | $ 19 |
Debt (Maturities and Fair Value
Debt (Maturities and Fair Value) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
2023 and beyond | $ 2,773 | |
Senior unsecured notes [Member] | 6.625% Senior Notes Due May 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 6.625% | 6.625% |
Senior unsecured notes [Member] | 7.000% Senior Notes Due May 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 7.00% | 7.00% |
Senior unsecured notes [Member] | Senior Notes 6.125% Due May 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 6.125% | 6.125% |
Senior unsecured notes [Member] | 5.375% Senior Notes Due May 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 5.375% | 5.375% |
Fair Value, Inputs, Level 2 [Member] | Senior unsecured notes [Member] | 6.625% Senior Notes Due May 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Notes, fair value | $ 1,217 | |
Fair Value, Inputs, Level 2 [Member] | Senior unsecured notes [Member] | 7.000% Senior Notes Due May 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Notes, fair value | 812 | |
Fair Value, Inputs, Level 2 [Member] | Senior unsecured notes [Member] | Senior Notes 6.125% Due May 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Notes, fair value | 383 | |
Fair Value, Inputs, Level 2 [Member] | Senior unsecured notes [Member] | 5.375% Senior Notes Due May 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Notes, fair value | 502 | |
Euro Term Loan [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, fair value | 490 | |
The Dollar Term Loans [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, fair value | $ 922 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Other Liabilities Noncurrent [Abstract] | ||
Environmental remediation | $ 179 | $ 187 |
Employee-related costs | 131 | 123 |
Accrued litigation | 50 | 48 |
Asset retirement obligations | 44 | 43 |
Deferred income | 5 | 6 |
Miscellaneous | 66 | 68 |
Total other liabilities | $ 475 | $ 475 |
Other Liabilities (Parenthetica
Other Liabilities (Parenthetical) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Other Liabilities Noncurrent [Abstract] | ||
Accrued indemnification liability | $ 50 | $ 52 |
Commitments and Contingent Li85
Commitments and Contingent Liabilities (Litigation) (Narrative) (Details) | Oct. 20, 2015USD ($) | Sep. 30, 2014 | May 31, 2013doctorwater_district | Mar. 31, 2018USD ($)lawsuitplaintiff | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)lawsuit | Dec. 31, 2016USD ($) | Dec. 31, 2005USD ($) | Dec. 31, 2004resident | Jan. 31, 2012USD ($) |
Maximum [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Loss contingency, potential additional loss | $ 510,000,000 | |||||||||||||
Funding for medical monitoring program [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Escrow deposit disbursements | $ 1,000,000 | |||||||||||||
MDL Settlement [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Accrual balance | $ 335,000,000 | |||||||||||||
Settlement payments | $ 335,000,000 | $ 335,000,000 | ||||||||||||
Date of Agreement | Mar. 31, 2017 | |||||||||||||
Total settlement amount | $ 670,700,000 | |||||||||||||
Post-MDL Settlement Injury Matters [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Number of plaintiffs alleging negligence and other claims | plaintiff | 3 | |||||||||||||
Benzene Related Illness [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Lawsuits alleging illness | lawsuit | 18 | 17 | ||||||||||||
Years of exposure to benzene | 24 years | |||||||||||||
Compensatory damages awarded | $ 6,900,000 | |||||||||||||
Punitive damages awarded | $ 1,500,000 | |||||||||||||
PFOA Matters [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Accrual balance | $ 16,000,000 | $ 14,000,000 | ||||||||||||
Additional estimated charges | $ 4,000,000 | |||||||||||||
PFOA Matters [Member] | Maximum [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Settlement payments | $ 25,000,000 | |||||||||||||
Period of payments | 5 years | |||||||||||||
PFOA Matters [Member] | PFOA MDL Settlement [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Additional estimated charges | $ 335,000,000 | |||||||||||||
Settlement payments | $ 320,000,000 | $ 15,000,000 | ||||||||||||
PFOA Matters: Drinking Water Actions [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Binding settlement agreement, class size | resident | 80,000 | |||||||||||||
Number of doctors to release initial screening recommendations | doctor | 3 | |||||||||||||
Follow-up screening and diagnostic testing recommended period after initial testing | 3 years | |||||||||||||
Number of water districts Company must provide treatment | water_district | 6 | |||||||||||||
PFOA Matters: Drinking Water Actions [Member] | Payment for Plaintiffs Attorney Fees [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Settlement payments | $ 23,000,000 | |||||||||||||
PFOA Matters: Drinking Water Actions [Member] | Payment to fund community health project [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Settlement payments | $ 70,000,000 | |||||||||||||
PFOA Matters: Drinking Water Actions [Member] | Funding for medical monitoring program [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Loss contingency, potential additional loss | $ 235,000,000 | |||||||||||||
Escrow deposit | $ 1,000,000 | |||||||||||||
PFOA Matters: Additional Actions [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Lawsuits alleging personal injury - Filed | lawsuit | 3,500 | |||||||||||||
DuPont [Member] | Maximum [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Settlement payments | $ 25,000,000 | |||||||||||||
Asbestos Issue [Member] | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Lawsuits alleging personal injury - Filed | lawsuit | 1,600 | 1,600 | ||||||||||||
Accrual balance | $ 38,000,000 | $ 38,000,000 |
Commitments and Contingent Li86
Commitments and Contingent Liabilities (Environmental) (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Environmental Remediation [Line Items] | ||||
Accrual for environmental remediation activities | $ 254 | $ 254 | $ 253 | |
Environmental remediation expense | 3 | $ 11 | $ 9 | |
Minimum [Member] | ||||
Environmental Remediation [Line Items] | ||||
Average time frame of disbursements of environmental site remediation | 15 years | |||
Maximum [Member] | ||||
Environmental Remediation [Line Items] | ||||
Average time frame of disbursements of environmental site remediation | 20 years | |||
Loss contingency, potential additional loss | $ 510 | $ 510 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2017 | |
Equity Class Of Treasury Stock [Line Items] | |||
Purchase of additional common stock value under the share repurchase program | $ 245,000,000 | ||
Purchase of common stock value under the share repurchase program | $ 361,000,000 | $ 116,000,000 | |
Common Stock [Member] | |||
Equity Class Of Treasury Stock [Line Items] | |||
Stock repurchase program effective date | Nov. 30, 2017 | ||
Stock repurchase program expiration date | Dec. 31, 2020 | ||
Purchase of additional common stock under the share repurchase program | 4,979,152 | ||
Purchase of additional common stock value under the share repurchase program | $ 245,000,000 | ||
Average share price during the period | $ 49.17 | ||
Purchase of common stock under the share repurchase program, share Settled | 324,600 | ||
Purchase of common stock value under the share repurchase program, for share Settled | $ 15,000,000 | ||
Purchase of common stock under the share repurchase program | 7,365,558 | ||
Purchase of common stock value under the share repurchase program | $ 361,000,000 | ||
Average share price | $ 49.05 | ||
Remaining available amount of common stock under the share repurchase program | $ 139,000,000 | ||
Common Stock [Member] | Maximum [Member] | |||
Equity Class Of Treasury Stock [Line Items] | |||
Stock repurchase program, authorized amount | $ 500,000,000 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($)contract | Mar. 31, 2017USD ($) | |
Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Recognized loss on derivative net investment hedge, pre-tax | $ (34) | $ (10) |
Foreign currency forward contracts [Member] | ||
Derivative [Line Items] | ||
Number of forward exchange currency contracts | contract | 20 | |
Derivative notional value | $ 547 | |
Foreign currency forward contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Income (Expense), Net [Member] | ||
Derivative [Line Items] | ||
Derivative gain (loss) | $ 4 | $ (1) |
Financial Instruments (Schedule
Financial Instruments (Schedule of the Fair Value of Derivative Instruments) (Details) - Fair Value, Measurements, Recurring [Member] - Fair Value, Inputs, Level 2 [Member] - Not Designated as Hedging Instrument [Member] $ in Millions | Mar. 31, 2018USD ($) |
Derivatives, Fair Value [Line Items] | |
Asset derivatives | $ 1 |
Liability derivatives | 2 |
Foreign currency forward contracts [Member] | Accounts and notes receivable - trade, net [Member] | |
Derivatives, Fair Value [Line Items] | |
Asset derivatives | 1 |
Foreign currency forward contracts [Member] | Other accrued liabilities [Member] | |
Derivatives, Fair Value [Line Items] | |
Liability derivatives | $ 2 |
Long-term Employee Benefits (Sc
Long-term Employee Benefits (Schedule of Net Periodic Pension Income and Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Changes in plan assets and benefit obligations recognized in other comprehensive income: | ||
Amortization of actuarial loss, pre-tax | $ 4 | $ 5 |
Benefit recognized in other comprehensive income | (5) | (5) |
Pension Plan [Member] | Foreign [Member] | ||
Net periodic pension (cost) income: | ||
Service cost | (4) | (4) |
Interest cost | (4) | (4) |
Expected return on plan assets | 15 | 17 |
Amortization of actuarial loss | (4) | (5) |
Net periodic benefit cost | 3 | 4 |
Changes in plan assets and benefit obligations recognized in other comprehensive income: | ||
Amortization of actuarial loss, pre-tax | 4 | 5 |
Benefit recognized in other comprehensive income | 4 | 5 |
Total net periodic pension income and benefit recognized in comprehensive income | $ 7 | $ 9 |
Long-term Employee Benefits (Na
Long-term Employee Benefits (Narrative) (Details) - Pension Plan [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions by employer | $ 4 |
Estimated future employer contributions in current fiscal year | $ 11 |
Stock-based Compensation (Narra
Stock-based Compensation (Narrative) (Details) $ in Millions | Jan. 26, 2017Periodshares | Mar. 31, 2018USD ($)shares | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation cost | $ | $ 9 | $ 6 | ||
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of common stock shares reserved for issuance | 7,000,000 | |||
Consecutive offering periods | 12 months | |||
Number of purchase periods in offer period | Period | 4 | |||
Employee stock purchase plan initial offering period | Oct. 2, 2017 | |||
Percentage of common stock discount rate equal to the fair value | 95.00% | |||
Stock purchased under employee stock purchase plan, Value | $ | $ 1 | |||
Stock purchased under employee stock purchase plan, Shares | 12,000 | |||
Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation cost | $ | $ 5 | 1 | ||
Number of shares granted | 470,000 | |||
Expiration period | 10 years | |||
Stock-based compensation award vesting period | 3 years | |||
Stock options outstanding | 6,770,000 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation cost | $ | $ 2 | 4 | ||
Stock-based compensation award vesting period | 3 years | |||
Number of shares granted | 110,000 | |||
Shares issued upon conversion of equity award | 1 | |||
Number of shares non-vested | 970,000 | |||
Performance Share Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation cost | $ | $ 2 | $ 1 | ||
Stock-based compensation award vesting period | 3 years | |||
Number of shares granted | 140,000 | |||
Shares issued upon conversion of equity award | 1 | |||
Number of shares non-vested | 810,000 | |||
Percentage of target award available for grant | 100.00% | |||
Performance Share Units [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of target award available for grant | 0.00% | |||
Performance Share Units [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of target award available for grant | 200.00% |
Stock-based Compensation (Stock
Stock-based Compensation (Stock Option Weighted Average Assumptions) (Details) - Stock Option [Member] | 3 Months Ended |
Mar. 31, 2018$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 2.64% |
Expected term (years) | 6 years |
Volatility | 47.56% |
Dividend yield | 1.40% |
Fair value per stock option | $ 20.55 |
Segment Information (Schedule o
Segment Information (Schedule of Segment Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Net sales to external customers | $ 1,730 | $ 1,437 |
Adjusted EBITDA | 468 | 285 |
Depreciation and amortization | 70 | 71 |
Operating Segments [Member] | Fluoroproducts [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales to external customers | 732 | 652 |
Adjusted EBITDA | 206 | 155 |
Depreciation and amortization | 28 | 26 |
Operating Segments [Member] | Chemical Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales to external customers | 144 | 139 |
Adjusted EBITDA | 11 | 12 |
Depreciation and amortization | 5 | 4 |
Operating Segments [Member] | Titanium Technologies [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales to external customers | 854 | 646 |
Adjusted EBITDA | 294 | 159 |
Depreciation and amortization | 30 | 33 |
Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | (43) | (41) |
Depreciation and amortization | $ 7 | $ 8 |
Segment Information - (Reconcil
Segment Information - (Reconciliation of EBITDA from Segments to Consolidated Net Income Before Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Income before income taxes | $ 381 | $ 173 |
Interest expense, net | 52 | 51 |
Depreciation and amortization | 70 | 71 |
Non-operating pension and other post-retirement employee benefit income | (7) | (8) |
Exchange gains | 0 | (5) |
Restructuring, asset-related, and other charges, net | 10 | 12 |
Gain on sale of assets and businesses | (42) | (16) |
Legal and other charges | 4 | 7 |
Adjusted EBITDA | 468 | 285 |
Linden Site [Member] | ||
Segment Reporting Information [Line Items] | ||
Gain on sale of asset | $ 42 | |
Edge Moor Site [Member] | ||
Segment Reporting Information [Line Items] | ||
Gain on sale of asset | 12 | |
Land [Member] | Repauno New Jersey [Member] | ||
Segment Reporting Information [Line Items] | ||
Gain on sale of asset | $ 4 |
Subsequent Events (Details)
Subsequent Events (Details) | Apr. 03, 2018USD ($) | Apr. 02, 2018USD ($) | Mar. 31, 2018USD ($)shares | Mar. 31, 2018EUR (€) | Dec. 31, 2018 | Jun. 30, 2018 | Apr. 03, 2023 | Apr. 30, 2018USD ($)shares | Apr. 03, 2018EUR (€) | Dec. 31, 2017USD ($) |
Subsequent Event [Line Items] | ||||||||||
Proceeds from new term loans | $ 921,000,000 | € 393,000,000 | ||||||||
Purchase of common stock value under the share repurchase program | $ 361,000,000 | $ 116,000,000 | ||||||||
Common Stock [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Purchase of common stock under the share repurchase program | shares | 7,365,558 | |||||||||
Purchase of common stock value under the share repurchase program | $ 361,000,000 | |||||||||
Revolving Credit Facility [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Debt instrument term | 5 years | 5 years | ||||||||
Line of credit facility, maximum borrowing capacity | $ 750,000,000 | |||||||||
Senior secured debt, outstanding | $ 0 | $ 0 | ||||||||
Revolving Credit Facility [Member] | Scenario Forecast [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Maximum net leverage ratio | 2.25% | 2.50% | 2.00% | |||||||
Subsequent Event [Member] | Common Stock [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Purchase of common stock under the share repurchase program | shares | 764,786 | |||||||||
Purchase of common stock value under the share repurchase program | $ 39,000,000 | |||||||||
Subsequent Event [Member] | Senior Secured Term Loan Facility [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Debt instrument term | 7 years | |||||||||
Subsequent Event [Member] | Senior Secured Revolving Credit Facility [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Debt instrument term | 5 years | |||||||||
Line of credit facility, maximum borrowing capacity | $ 800,000,000 | |||||||||
Line of credit facility, maturity date | Apr. 3, 2023 | |||||||||
Maximum net leverage ratio | 0.25% | |||||||||
Debt instrument interest rate | 1.00% | 1.00% | ||||||||
2,018 | $ 10,000,000 | |||||||||
2,019 | 13,000,000 | |||||||||
2,020 | 13,000,000 | |||||||||
2,021 | 13,000,000 | |||||||||
2,022 | 13,000,000 | |||||||||
2023 and beyond | $ 1,270,000,000 | |||||||||
Additional principal repayment, percentage of excess cash flows | 50.00% | |||||||||
Additional principal repayment, percentage of excess cash flow, stepdown level one | 25.00% | |||||||||
Additional principal repayment, percentage of excess cash flow, stepdown level two | 0.00% | |||||||||
Target leverage ratio | 3.50% | |||||||||
Senior secured debt, outstanding | $ 75,000,000 | |||||||||
Subsequent Event [Member] | Senior Secured Revolving Credit Facility [Member] | Domestic Subsidiary [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Collateral as percentage of common stock | 100.00% | |||||||||
Subsequent Event [Member] | Senior Secured Revolving Credit Facility [Member] | Foreign Subsidiary [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Collateral as percentage of common stock | 65.00% | |||||||||
Subsequent Event [Member] | Senior Secured Revolving Credit Facility [Member] | Maximum [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Variable rate | 0.25% | |||||||||
Subsequent Event [Member] | Senior Secured Revolving Credit Facility [Member] | Minimum [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Variable rate | 0.10% | |||||||||
Subsequent Event [Member] | Senior Secured Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Variable rate | 1.25% | |||||||||
Subsequent Event [Member] | Senior Secured Revolving Credit Facility [Member] | Base Rate [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Variable rate | 1.00% | |||||||||
Subsequent Event [Member] | Senior Secured Revolving Credit Facility [Member] | Euro Interbank Offered Rate [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Variable rate | 2.00% | |||||||||
Subsequent Event [Member] | Dollar Term Loan [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 900,000,000 | |||||||||
Line of credit facility, maturity date | Apr. 3, 2025 | |||||||||
Subsequent Event [Member] | Dollar Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Variable rate | 1.75% | |||||||||
Subsequent Event [Member] | Dollar Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Variable rate | 0.00% | |||||||||
Subsequent Event [Member] | Dollar Term Loan [Member] | Base Rate [Member] | Maximum [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Variable rate | 0.75% | |||||||||
Subsequent Event [Member] | Dollar Term Loan [Member] | Base Rate [Member] | Minimum [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Variable rate | 1.00% | |||||||||
Subsequent Event [Member] | Euro Term Loan [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | € | € 350,000,000 | |||||||||
Line of credit facility, maturity date | Apr. 3, 2025 | |||||||||
Subsequent Event [Member] | Euro Term Loan [Member] | Euro Interbank Offered Rate [Member] | Maximum [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Variable rate | 2.00% | |||||||||
Subsequent Event [Member] | Euro Term Loan [Member] | Euro Interbank Offered Rate [Member] | Minimum [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Variable rate | 0.50% | |||||||||
Subsequent Event [Member] | ICOR International, Inc. [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Total consideration | $ 35,000,000 | |||||||||
Cash paid for acquisition | $ 32,000,000 |
Guarantor Condensed Consolida97
Guarantor Condensed Consolidating Financial Information (Condensed Consolidating Statements of Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Income Statements, Captions [Line Items] | ||
Net sales | $ 1,730 | $ 1,437 |
Cost of goods sold | 1,193 | 1,081 |
Gross profit | 537 | 356 |
Selling, general, and administrative expense | 143 | 150 |
Research and development expense | 20 | 19 |
Restructuring, asset-related, and other charges, net | 10 | 12 |
Total expenses | 173 | 181 |
Equity in earnings of affiliates | 12 | 7 |
Equity in earnings of subsidiaries | 0 | 0 |
Interest (expense) income, net | (52) | (51) |
Intercompany interest income (expense), net | 0 | 0 |
Other income (expense), net | 57 | 42 |
Income before income taxes | 381 | 173 |
(Benefit from) provision for income taxes | 84 | 22 |
Net income | 297 | 151 |
Less: Net income attributable to non-controlling interests | 0 | 1 |
Net income attributable to Chemours | 297 | 150 |
Comprehensive income attributable to Chemours | 373 | 239 |
Eliminations and Adjustments [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net sales | (461) | (417) |
Cost of goods sold | (476) | (420) |
Gross profit | 15 | 3 |
Selling, general, and administrative expense | (9) | (6) |
Research and development expense | 0 | 0 |
Restructuring, asset-related, and other charges, net | 0 | 0 |
Total expenses | (9) | (6) |
Equity in earnings of affiliates | 0 | 0 |
Equity in earnings of subsidiaries | (331) | (172) |
Interest (expense) income, net | 0 | 0 |
Intercompany interest income (expense), net | 0 | 0 |
Other income (expense), net | (9) | (6) |
Income before income taxes | (316) | (169) |
(Benefit from) provision for income taxes | (1) | 1 |
Net income | (315) | (170) |
Less: Net income attributable to non-controlling interests | 0 | 0 |
Net income attributable to Chemours | (315) | (170) |
Comprehensive income attributable to Chemours | (416) | (269) |
Parent Issuer [Member] | Reportable Legal Entities [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net sales | 0 | 0 |
Cost of goods sold | 0 | 0 |
Gross profit | 0 | 0 |
Selling, general, and administrative expense | 10 | 7 |
Research and development expense | 0 | 0 |
Restructuring, asset-related, and other charges, net | 0 | 0 |
Total expenses | 10 | 7 |
Equity in earnings of affiliates | 0 | 0 |
Equity in earnings of subsidiaries | 331 | 172 |
Interest (expense) income, net | (56) | (51) |
Intercompany interest income (expense), net | 13 | 16 |
Other income (expense), net | 9 | 6 |
Income before income taxes | 287 | 136 |
(Benefit from) provision for income taxes | (10) | (14) |
Net income | 297 | 150 |
Less: Net income attributable to non-controlling interests | 0 | 0 |
Net income attributable to Chemours | 297 | 150 |
Comprehensive income attributable to Chemours | 373 | 239 |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net sales | 1,017 | 960 |
Cost of goods sold | 798 | 795 |
Gross profit | 219 | 165 |
Selling, general, and administrative expense | 102 | 114 |
Research and development expense | 19 | 18 |
Restructuring, asset-related, and other charges, net | 9 | 11 |
Total expenses | 130 | 143 |
Equity in earnings of affiliates | 0 | 0 |
Equity in earnings of subsidiaries | 0 | 0 |
Interest (expense) income, net | 2 | (1) |
Intercompany interest income (expense), net | 1 | 0 |
Other income (expense), net | 73 | 42 |
Income before income taxes | 165 | 63 |
(Benefit from) provision for income taxes | 50 | 5 |
Net income | 115 | 58 |
Less: Net income attributable to non-controlling interests | 0 | 0 |
Net income attributable to Chemours | 115 | 58 |
Comprehensive income attributable to Chemours | 117 | 59 |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net sales | 1,174 | 894 |
Cost of goods sold | 871 | 706 |
Gross profit | 303 | 188 |
Selling, general, and administrative expense | 40 | 35 |
Research and development expense | 1 | 1 |
Restructuring, asset-related, and other charges, net | 1 | 1 |
Total expenses | 42 | 37 |
Equity in earnings of affiliates | 12 | 7 |
Equity in earnings of subsidiaries | 0 | 0 |
Interest (expense) income, net | 2 | 1 |
Intercompany interest income (expense), net | (14) | (16) |
Other income (expense), net | (16) | 0 |
Income before income taxes | 245 | 143 |
(Benefit from) provision for income taxes | 45 | 30 |
Net income | 200 | 113 |
Less: Net income attributable to non-controlling interests | 0 | 1 |
Net income attributable to Chemours | 200 | 112 |
Comprehensive income attributable to Chemours | $ 299 | $ 210 |
Guarantor Condensed Consolida98
Guarantor Condensed Consolidating Financial Information (Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 1,434 | $ 1,556 | $ 898 | $ 902 |
Accounts and notes receivable, net | 1,083 | 919 | ||
Intercompany receivable | 0 | 0 | ||
Inventories | 992 | 935 | ||
Prepaid expenses and other | 75 | 83 | ||
Total current assets | 3,584 | 3,493 | ||
Property, plant, and equipment | 8,719 | 8,511 | ||
Less: Accumulated depreciation | (5,614) | (5,503) | ||
Property, plant, and equipment, net | 3,105 | 3,008 | ||
Goodwill and other intangible assets, net | 165 | 166 | ||
Investments in affiliates | 166 | 173 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany notes receivable | 0 | 0 | ||
Other assets | 464 | 453 | ||
Total assets | 7,484 | 7,293 | ||
Current liabilities: | ||||
Accounts payable | 1,121 | 1,075 | ||
Current maturities of long-term debt | 14 | 15 | ||
Intercompany payable | 0 | 0 | ||
Other accrued liabilities | 487 | 558 | ||
Total current liabilities | 1,622 | 1,648 | ||
Long-term debt, net | 4,141 | 4,097 | ||
Intercompany notes payable | 0 | 0 | ||
Deferred income taxes | 244 | 208 | ||
Other liabilities | 475 | 475 | ||
Total liabilities | 6,482 | 6,428 | ||
Commitments and contingent liabilities | ||||
Equity | ||||
Total Chemours stockholders’ equity | 997 | 860 | ||
Non-controlling interests | 5 | 5 | ||
Total equity | 1,002 | 865 | 358 | 104 |
Total liabilities and equity | 7,484 | 7,293 | ||
Eliminations and Adjustments [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts and notes receivable, net | 0 | 0 | ||
Intercompany receivable | (1,783) | (1,488) | ||
Inventories | (74) | (90) | ||
Prepaid expenses and other | 0 | 11 | ||
Total current assets | (1,857) | (1,567) | ||
Property, plant, and equipment | 0 | 0 | ||
Less: Accumulated depreciation | 0 | 0 | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Investments in affiliates | 0 | 0 | ||
Investment in subsidiaries | (4,844) | (4,393) | ||
Intercompany notes receivable | (1,150) | (1,150) | ||
Other assets | (22) | (13) | ||
Total assets | (7,873) | (7,123) | ||
Current liabilities: | ||||
Accounts payable | 0 | 0 | ||
Current maturities of long-term debt | 0 | 0 | ||
Intercompany payable | (1,783) | (1,488) | ||
Other accrued liabilities | (1) | 0 | ||
Total current liabilities | (1,784) | (1,488) | ||
Long-term debt, net | 0 | 0 | ||
Intercompany notes payable | (1,150) | (1,150) | ||
Deferred income taxes | (23) | (24) | ||
Other liabilities | 0 | 0 | ||
Total liabilities | (2,957) | (2,662) | ||
Commitments and contingent liabilities | ||||
Equity | ||||
Total Chemours stockholders’ equity | (4,916) | (4,461) | ||
Non-controlling interests | 0 | 0 | ||
Total equity | (4,916) | (4,461) | ||
Total liabilities and equity | (7,873) | (7,123) | ||
Parent Issuer [Member] | Reportable Legal Entities [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts and notes receivable, net | 0 | 0 | ||
Intercompany receivable | 19 | 3 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other | 0 | 0 | ||
Total current assets | 19 | 3 | ||
Property, plant, and equipment | 0 | 0 | ||
Less: Accumulated depreciation | 0 | 0 | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Investments in affiliates | 0 | 0 | ||
Investment in subsidiaries | 4,844 | 4,393 | ||
Intercompany notes receivable | 1,150 | 1,150 | ||
Other assets | 30 | 23 | ||
Total assets | 6,043 | 5,569 | ||
Current liabilities: | ||||
Accounts payable | 0 | 31 | ||
Current maturities of long-term debt | 14 | 15 | ||
Intercompany payable | 827 | 542 | ||
Other accrued liabilities | 85 | 34 | ||
Total current liabilities | 926 | 622 | ||
Long-term debt, net | 4,120 | 4,087 | ||
Intercompany notes payable | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 5,046 | 4,709 | ||
Commitments and contingent liabilities | ||||
Equity | ||||
Total Chemours stockholders’ equity | 997 | 860 | ||
Non-controlling interests | 0 | 0 | ||
Total equity | 997 | 860 | ||
Total liabilities and equity | 6,043 | 5,569 | ||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 470 | 761 | 186 | 224 |
Accounts and notes receivable, net | 367 | 308 | ||
Intercompany receivable | 1,175 | 904 | ||
Inventories | 419 | 394 | ||
Prepaid expenses and other | 45 | 57 | ||
Total current assets | 2,476 | 2,424 | ||
Property, plant, and equipment | 6,538 | 6,449 | ||
Less: Accumulated depreciation | (4,484) | (4,438) | ||
Property, plant, and equipment, net | 2,054 | 2,011 | ||
Goodwill and other intangible assets, net | 151 | 152 | ||
Investments in affiliates | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany notes receivable | 0 | 0 | ||
Other assets | 103 | 115 | ||
Total assets | 4,784 | 4,702 | ||
Current liabilities: | ||||
Accounts payable | 626 | 606 | ||
Current maturities of long-term debt | 0 | 0 | ||
Intercompany payable | 589 | 581 | ||
Other accrued liabilities | 240 | 343 | ||
Total current liabilities | 1,455 | 1,530 | ||
Long-term debt, net | 21 | 10 | ||
Intercompany notes payable | 0 | 0 | ||
Deferred income taxes | 156 | 127 | ||
Other liabilities | 384 | 388 | ||
Total liabilities | 2,016 | 2,055 | ||
Commitments and contingent liabilities | ||||
Equity | ||||
Total Chemours stockholders’ equity | 2,768 | 2,647 | ||
Non-controlling interests | 0 | 0 | ||
Total equity | 2,768 | 2,647 | ||
Total liabilities and equity | 4,784 | 4,702 | ||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 964 | 795 | $ 712 | $ 678 |
Accounts and notes receivable, net | 716 | 611 | ||
Intercompany receivable | 589 | 581 | ||
Inventories | 647 | 631 | ||
Prepaid expenses and other | 30 | 15 | ||
Total current assets | 2,946 | 2,633 | ||
Property, plant, and equipment | 2,181 | 2,062 | ||
Less: Accumulated depreciation | (1,130) | (1,065) | ||
Property, plant, and equipment, net | 1,051 | 997 | ||
Goodwill and other intangible assets, net | 14 | 14 | ||
Investments in affiliates | 166 | 173 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany notes receivable | 0 | 0 | ||
Other assets | 353 | 328 | ||
Total assets | 4,530 | 4,145 | ||
Current liabilities: | ||||
Accounts payable | 495 | 438 | ||
Current maturities of long-term debt | 0 | 0 | ||
Intercompany payable | 367 | 365 | ||
Other accrued liabilities | 163 | 181 | ||
Total current liabilities | 1,025 | 984 | ||
Long-term debt, net | 0 | 0 | ||
Intercompany notes payable | 1,150 | 1,150 | ||
Deferred income taxes | 111 | 105 | ||
Other liabilities | 91 | 87 | ||
Total liabilities | 2,377 | 2,326 | ||
Commitments and contingent liabilities | ||||
Equity | ||||
Total Chemours stockholders’ equity | 2,148 | 1,814 | ||
Non-controlling interests | 5 | 5 | ||
Total equity | 2,153 | 1,819 | ||
Total liabilities and equity | $ 4,530 | $ 4,145 |
Guarantor Condensed Consolida99
Guarantor Condensed Consolidating Financial Information (Condensed Consolidating Statements of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities | ||
Cash (used for) provided by operating activities | $ 196 | $ 41 |
Cash flows from investing activities | ||
Purchases of property, plant, and equipment | (102) | (69) |
Proceeds from sales of assets and businesses, net | 39 | 9 |
Intercompany investing activities | 0 | 0 |
Foreign exchange contract settlements, net | 5 | (3) |
Cash used for investing activities | (58) | (63) |
Cash flows from financing activities | ||
Intercompany short-term borrowings repayments, net | 0 | |
Debt repayments | (4) | (4) |
Purchases of treasury stock at cost | (240) | 0 |
Intercompany financing activities | 0 | |
Proceeds from exercised stock options, net | 5 | 20 |
Tax payments related to withholdings on vested restricted stock units | (1) | 0 |
Payment of dividends | (31) | (5) |
Cash (used for) provided by financing activities | (271) | 11 |
Effect of exchange rate changes on cash and cash equivalents | 11 | 7 |
Decrease in cash and cash equivalents | (122) | (4) |
Cash and cash equivalents at January 1, | 1,556 | 902 |
Cash and cash equivalents at March 31, | 1,434 | 898 |
Eliminations and Adjustments [Member] | ||
Cash flows from operating activities | ||
Cash (used for) provided by operating activities | 0 | 0 |
Cash flows from investing activities | ||
Purchases of property, plant, and equipment | 0 | 0 |
Proceeds from sales of assets and businesses, net | 0 | 0 |
Intercompany investing activities | 288 | (8) |
Foreign exchange contract settlements, net | 0 | 0 |
Cash used for investing activities | 288 | (8) |
Cash flows from financing activities | ||
Intercompany short-term borrowings repayments, net | 8 | |
Debt repayments | 0 | 0 |
Purchases of treasury stock at cost | 0 | |
Intercompany financing activities | (288) | |
Proceeds from exercised stock options, net | 0 | 0 |
Tax payments related to withholdings on vested restricted stock units | 0 | |
Payment of dividends | 0 | 0 |
Cash (used for) provided by financing activities | (288) | 8 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Decrease in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at January 1, | 0 | 0 |
Cash and cash equivalents at March 31, | 0 | 0 |
Parent Issuer [Member] | Reportable Legal Entities [Member] | ||
Cash flows from operating activities | ||
Cash (used for) provided by operating activities | (17) | (3) |
Cash flows from investing activities | ||
Purchases of property, plant, and equipment | 0 | 0 |
Proceeds from sales of assets and businesses, net | 0 | 0 |
Intercompany investing activities | 0 | 0 |
Foreign exchange contract settlements, net | 0 | 0 |
Cash used for investing activities | 0 | 0 |
Cash flows from financing activities | ||
Intercompany short-term borrowings repayments, net | (8) | |
Debt repayments | (4) | (4) |
Purchases of treasury stock at cost | (240) | |
Intercompany financing activities | 288 | |
Proceeds from exercised stock options, net | 5 | 20 |
Tax payments related to withholdings on vested restricted stock units | (1) | |
Payment of dividends | (31) | (5) |
Cash (used for) provided by financing activities | 17 | 3 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Decrease in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at January 1, | 0 | 0 |
Cash and cash equivalents at March 31, | 0 | 0 |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Cash flows from operating activities | ||
Cash (used for) provided by operating activities | 33 | (2) |
Cash flows from investing activities | ||
Purchases of property, plant, and equipment | (80) | (50) |
Proceeds from sales of assets and businesses, net | 39 | 9 |
Intercompany investing activities | (288) | 8 |
Foreign exchange contract settlements, net | 5 | (3) |
Cash used for investing activities | (324) | (36) |
Cash flows from financing activities | ||
Intercompany short-term borrowings repayments, net | 0 | |
Debt repayments | 0 | 0 |
Purchases of treasury stock at cost | 0 | |
Intercompany financing activities | 0 | |
Proceeds from exercised stock options, net | 0 | 0 |
Tax payments related to withholdings on vested restricted stock units | 0 | |
Payment of dividends | 0 | 0 |
Cash (used for) provided by financing activities | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Decrease in cash and cash equivalents | (291) | (38) |
Cash and cash equivalents at January 1, | 761 | 224 |
Cash and cash equivalents at March 31, | 470 | 186 |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Cash flows from operating activities | ||
Cash (used for) provided by operating activities | 180 | 46 |
Cash flows from investing activities | ||
Purchases of property, plant, and equipment | (22) | (19) |
Proceeds from sales of assets and businesses, net | 0 | 0 |
Intercompany investing activities | 0 | 0 |
Foreign exchange contract settlements, net | 0 | 0 |
Cash used for investing activities | (22) | (19) |
Cash flows from financing activities | ||
Intercompany short-term borrowings repayments, net | 0 | |
Debt repayments | 0 | 0 |
Purchases of treasury stock at cost | 0 | |
Intercompany financing activities | 0 | |
Proceeds from exercised stock options, net | 0 | 0 |
Tax payments related to withholdings on vested restricted stock units | 0 | |
Payment of dividends | 0 | 0 |
Cash (used for) provided by financing activities | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 11 | 7 |
Decrease in cash and cash equivalents | 169 | 34 |
Cash and cash equivalents at January 1, | 795 | 678 |
Cash and cash equivalents at March 31, | $ 964 | $ 712 |