Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 29, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Chemours Co | |
Entity Central Index Key | 0001627223 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Type | 10-Q | |
Trading Symbol | CC | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 163,963,626 |
Interim Consolidated Statements
Interim Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 1,376 | $ 1,730 |
Cost of goods sold | 1,080 | 1,193 |
Gross profit | 296 | 537 |
Selling, general, and administrative expense | 156 | 143 |
Research and development expense | 22 | 20 |
Restructuring, asset-related, and other charges | 8 | 10 |
Total other operating expenses | 186 | 173 |
Equity in earnings of affiliates | 8 | 12 |
Interest expense, net | (51) | (52) |
Other income, net | 40 | 57 |
Income before income taxes | 107 | 381 |
Provision for income taxes | 13 | 84 |
Net income | 94 | 297 |
Net income attributable to Chemours | $ 94 | $ 297 |
Per share data | ||
Basic earnings per share of common stock | $ 0.56 | $ 1.63 |
Diluted earnings per share of common stock | $ 0.55 | $ 1.58 |
Interim Consolidated Statemen_2
Interim Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income, pre-tax | $ 107 | $ 381 |
Net Income, tax | (13) | (84) |
Net income | 94 | 297 |
Hedging activities: | ||
Unrealized gain (loss) on net investment hedge, pre-tax | 10 | (34) |
Unrealized gain (loss) on net investment hedge, tax | (3) | 8 |
Unrealized gain (loss) on net investment hedge, after tax | 7 | (26) |
Unrealized gain on cash flow hedge, pre-tax | 2 | 0 |
Unrealized gain on cash flow hedge, tax | 0 | 0 |
Unrealized gain on cash flow hedge, after-tax | 2 | 0 |
Reclassifications to net income - cash flow hedge, pre-tax | (3) | 0 |
Reclassifications to net income - cash flow hedge, tax | 0 | 0 |
Reclassifications to net income - cash flow hedge, after-tax | (3) | 0 |
Hedging activities, net, pre-tax | 9 | (34) |
Hedging activities, net, tax | (3) | 8 |
Hedging activities, net, after-tax | 6 | (26) |
Cumulative translation adjustment, pre-tax | 7 | 108 |
Cumulative translation adjustment, tax | 0 | 0 |
Cumulative translation adjustment, after-tax | 7 | 108 |
Defined benefit plans: | ||
Effect of foreign exchange rates, pre-tax | 3 | (9) |
Effect of foreign exchange rates, tax | 0 | 0 |
Effect of foreign exchange rates, after-tax | 3 | (9) |
Amortization of actuarial loss, pre-tax | 5 | 4 |
Amortization of actuarial loss, tax | (1) | (1) |
Amortization of actuarial loss, after-tax | 4 | 3 |
Settlement loss, pre-tax | 1 | 0 |
Settlement loss, tax | 0 | 0 |
Settlement loss, after-tax | 1 | 0 |
Defined benefit plans, net, pre-tax | 9 | (5) |
Defined benefit plans, net, tax | (1) | (1) |
Defined benefit plans, net, after-tax | 8 | (6) |
Other comprehensive income, pre-tax | 25 | 69 |
Other comprehensive income, tax | (4) | 7 |
Other comprehensive income, after-tax | 21 | 76 |
Comprehensive income, pre-tax | 132 | 450 |
Comprehensive income, tax | (17) | (77) |
Comprehensive income, after-tax | 115 | 373 |
Comprehensive income attributable to Chemours, pre-tax | 132 | 450 |
Comprehensive income attributable to Chemours, tax | (17) | (77) |
Comprehensive income attributable to Chemours, after-tax | $ 115 | $ 373 |
Interim Consolidated Balance Sh
Interim Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 697 | $ 1,201 |
Accounts and notes receivable, net | 847 | 861 |
Inventories | 1,218 | 1,147 |
Prepaid expenses and other | 85 | 84 |
Total current assets | 2,847 | 3,293 |
Property, plant, and equipment | 9,089 | 8,992 |
Less: Accumulated depreciation | (5,710) | (5,701) |
Property, plant, and equipment, net | 3,379 | 3,291 |
Operating lease right-of-use assets | 323 | |
Goodwill and other intangible assets, net | 180 | 181 |
Investments in affiliates | 166 | 160 |
Other assets | 430 | 437 |
Total assets | 7,325 | 7,362 |
Current liabilities: | ||
Accounts payable | 1,042 | 1,137 |
Current maturities of long-term debt | 13 | 13 |
Other accrued liabilities | 517 | 559 |
Total current liabilities | 1,572 | 1,709 |
Long-term debt, net | 3,965 | 3,959 |
Operating lease liabilities | 265 | |
Deferred income taxes | 212 | 217 |
Other liabilities | 495 | 457 |
Total liabilities | 6,509 | 6,342 |
Commitments and contingent liabilities | ||
Equity | ||
Common stock (par value $0.01 per share; 810,000,000 shares authorized; 188,693,084 shares issued and 164,990,989 shares outstanding at March 31, 2019; 187,204,567 shares issued and 170,780,474 shares outstanding at December 31, 2018) | 2 | 2 |
Treasury stock, at cost (23,702,095 shares at March 31, 2019; 16,424,093 shares at December 31, 2018) | (1,011) | (750) |
Additional paid-in capital | 845 | 860 |
Retained earnings | 1,517 | 1,466 |
Accumulated other comprehensive loss | (543) | (564) |
Total Chemours stockholders’ equity | 810 | 1,014 |
Non-controlling interests | 6 | 6 |
Total equity | 816 | 1,020 |
Total liabilities and equity | $ 7,325 | $ 7,362 |
Interim Consolidated Balance _2
Interim Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
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) | 188,693,084 | 187,204,567 |
Common stock, shares outstanding (in shares) | 164,990,989 | 170,780,474 |
Treasury stock (in shares) | 23,702,095 | 16,424,093 |
Interim Consolidated Statemen_3
Interim Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Non-controlling Interests [Member] |
Total stockholders' equity, beginning balance at Dec. 31, 2017 | $ 865 | $ 2 | $ (116) | $ 837 | $ 579 | $ (442) | $ 5 |
Shares, beginning balance at Dec. 31, 2017 | 185,343,034 | 2,386,406 | |||||
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) | |||||
Purchases of treasury stock at cost (in shares) | 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 (loss) | 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 | 185,903,112 | 7,365,558 | |||||
Total stockholders' equity, beginning balance at Dec. 31, 2018 | 1,020 | $ 2 | $ (750) | 860 | 1,466 | (564) | 6 |
Shares, beginning balance at Dec. 31, 2018 | 187,204,567 | 16,424,093 | |||||
Common stock issued - compensation plans | 1 | (1) | |||||
Common stock issued - compensation plans (in shares) | 1,078,034 | ||||||
Exercise of stock options, net | 6 | 6 | |||||
Exercise of stock options, net (in shares) | 410,483 | ||||||
Purchases of treasury stock at cost | (261) | $ (261) | |||||
Purchases of treasury stock at cost (in shares) | 7,278,002 | ||||||
Stock-based compensation expense | 8 | 8 | |||||
Cancellation of unissued stock awards withheld to cover taxes | (30) | (30) | |||||
Net income | 94 | 94 | |||||
Dividends | (42) | (42) | |||||
Dividends per share declared during period | $ 0.25 | ||||||
Other comprehensive income (loss) | 21 | 21 | |||||
Total stockholders' equity, ending balance at Mar. 31, 2019 | $ 816 | $ 2 | $ (1,011) | $ 845 | $ 1,517 | $ (543) | $ 6 |
Shares, ending balance at Mar. 31, 2019 | 188,693,084 | 23,702,095 | |||||
Dividends per Share, as of March 31 at Mar. 31, 2019 | $ 0.25 |
Interim Consolidated Statemen_4
Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | ||
Net income | $ 94 | $ 297 |
Adjustments to reconcile net income to cash (used for) provided by operating activities: | ||
Depreciation and amortization | 76 | 70 |
Gain on sales of assets and businesses | 0 | (42) |
Equity in earnings of affiliates, net | (7) | 17 |
Amortization of debt issuance costs and issue discounts | 3 | 3 |
Deferred tax (benefit) provision | (7) | 35 |
Stock-based compensation expense | 8 | 9 |
Net periodic pension cost (income) | 1 | (3) |
Defined benefit plan contributions | (6) | (4) |
Other operating charges and credits, net | 4 | (1) |
Decrease (increase) in operating assets: | ||
Accounts and notes receivable, net | 16 | (150) |
Inventories and other operating assets | (49) | (18) |
(Decrease) increase in operating liabilities: | ||
Accounts payable and other operating liabilities | (177) | (17) |
Cash (used for) provided by operating activities | (44) | 196 |
Cash flows from investing activities | ||
Purchases of property, plant, and equipment | (133) | (102) |
Proceeds from sales of assets and businesses, net | 0 | 39 |
Foreign exchange contract settlements, net | (1) | 5 |
Cash used for investing activities | (134) | (58) |
Cash flows from financing activities | ||
Debt repayments | (3) | (4) |
Purchases of treasury stock, at cost | (255) | (240) |
Proceeds from exercised stock options, net | 6 | 5 |
Payments related to tax withholdings on vested stock awards | (30) | (1) |
Payments of dividends | (42) | (31) |
Cash used for financing activities | (324) | (271) |
Effect of exchange rate changes on cash and cash equivalents | (2) | 11 |
Decrease in cash and cash equivalents | (504) | (122) |
Cash and cash equivalents at January 1, | 1,201 | 1,556 |
Cash and cash equivalents at March 31, | 697 | 1,434 |
Non-cash investing and financing activities: | ||
Changes in property, plant, and equipment included in accounts payable | (11) | (1) |
Obligations incurred under build-to-suit lease arrangement | 17 | 11 |
Purchases of treasury stock not settled by quarter-end | 6 | 15 |
Tax payments accrued for withholdings on vested restricted stock units | $ 0 | $ 4 |
Background, Description of the
Background, Description of the Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
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 Chemours separated from E. I. du Pont de Nemours and Company (“DuPont”) on July 1, 2015. On August 31, 2017, DuPont completed a merger with The Dow Chemical Company (“Dow”), pursuant to which, Dow and DuPont became subsidiaries of DowDuPont, Inc. (“DowDuPont”) with the intent to form three independent, publicly-traded companies. On April 1, 2019, Dow separated from DuPont as part of their planned reorganization. At this time, the agreements related to Chemours’ separation remain between Chemours and DuPont. The accompanying interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). In the opinion of management, all adjustments (consisting of normal, recurring adjustments) considered necessary for a fair statement of the Company’s results for interim periods have been included. The notes that follow are an integral part of the Company’s interim consolidated financial statements. 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. Certain prior period amounts have been reclassified to conform to the current period presentation, the effect of which, was not material to the Company’s interim consolidated financial statements. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Note 2. Recent Accounting Pronouncements Accounting Guidance Issued and Not Yet Adopted Changes to Disclosure Requirements for Defined Benefit Plans In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-14, Compensation –Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans Recently Adopted Accounting Guidance Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) The Company adopted ASU No. 2016-02 on January 1, 2019 using the modified retrospective transition method , which did not require the Company to adjust comparative periods. Operating leases are included in operating lease right-of-use assets, other accrued liabilities, and operating lease liabilities on the consolidated balance sheets. Finance leases are included in property, plant, and equipment, net, current maturities of long-term debt, and long-term debt, net, on the consolidated balance sheets. The Company’s lease assets and lease liabilities are recognized on the lease commencement date in an amount that represents the present value of future lease payments. The Company’s incremental borrowing rate, which is based on information available at the adoption date for existing leases and the commencement date for leases commencing after the adoption date, is used to determine the present value of lease payments. The most significant impact of the Company’s adoption of ASU No. 2016-02 was the recognition of $333 of operating lease right-of-use assets and $349 of operating lease liabilities on its consolidated balance sheets at January 1, 2019. Operating lease right-of-use assets were reduced by $16 due to a tenant improvement allowance on a lease of office space. The Company’s adoption of ASU No. 2016-02 did not have any impact to the Company’s consolidated statements of operations, or its consolidated statements of cash flows. Further, there was no impact on the Company’s covenant compliance under its current debt agreements as a result of the adoption of ASU No. 2016-02. The Company elected the package of practical expedients included in this guidance, which allowed it to not reassess: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and, (iii) the initial direct costs for existing leases. The Company also elected the practical expedient to not assess whether existing or expired land easements contain a lease. The Company does not recognize short-term leases on its consolidated balance sheets, and will recognize those lease payments in the consolidated statements of operations on a straight-line basis over the lease term. Leases with the options to extend their term or terminate early are reflected in the lease term when it is reasonably certain that the Company will exercise such options. Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB issued ASU No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract |
Significant Transaction
Significant Transaction | 3 Months Ended |
Mar. 31, 2019 | |
Significant Transaction [Abstract] | |
Significant Transaction | Note 3. Significant Transaction 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 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 on 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 on the consolidated balance sheets. |
Net Sales
Net Sales | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Net Sales | Note 4. Net Sales 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, 2019. Three Months Ended March 31, 2019 Chemical Titanium Fluoroproducts Solutions Technologies Total Net sales by geographic region (1) North America $ 288 $ 74 $ 197 $ 559 Asia Pacific 163 16 166 345 Europe, the Middle East, and Africa 186 5 113 304 Latin America (2) 50 39 79 168 Total net sales $ 687 $ 134 $ 555 $ 1,376 Net sales by product group Fluorochemicals $ 349 $ — $ — $ 349 Fluoropolymers 338 — — 338 Mining solutions — 68 — 68 Performance chemicals and intermediates — 66 — 66 Titanium dioxide and other minerals — — 555 555 Total net sales $ 687 $ 134 $ 555 $ 1,376 (1) Net sales are attributed to countries based on customer location. (2) Latin America includes Mexico. 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, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 Accounts receivable - trade, net (1) $ 776 $ 790 Customer rebates 42 79 (1) Accounts receivable - trade, net includes trade notes receivable of $3 and $2 and is net of allowances for doubtful accounts of The Company’s deferred revenue balances at March 31, 2019 and December 31, 2018 were not significant. Additionally, changes in the Company’s deferred revenue balances resulting from additions for advance payments and deductions for amounts recognized in net sales during the three months ended March 31, 2019 were not significant. For the three months ended March 31, 2019, the amount of net sales 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, 2019 or December 31, 2018. Remaining Performance Obligations Certain of the Company’s master services agreements 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. At March 31, 2019, Chemours had $132 of remaining performance obligations. The Company expects to recognize approximately 40% of its remaining performance obligations as revenue in 2019, an approximate additional 40% in 2020, and the balance thereafter. The Company applies the allowable practical expedient and does not include remaining performance obligations that have original expected durations of |
Restructuring, Asset-Related, a
Restructuring, Asset-Related, and Other Charges | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring, Asset-Related, and Other Charges | Note 5. Restructuring, Asset-related, and Other Charges The following table sets forth the components of the Company’s restructuring, asset-related, and other charges for the three months ended March 31, 2019 and 2018. Three Months Ended March 31, 2019 2018 Restructuring and other charges: Employee separation charges $ — $ 3 Decommissioning and other charges 8 7 Total restructuring, asset-related, and other charges $ 8 $ 10 The following table sets forth the impacts of the Company’s restructuring programs to segment earnings for the three months ended March 31, 2019 and 2018. Three Months Ended March 31, 2019 2018 Restructuring and other charges: Plant and product line closures: Chemical Solutions $ — $ 1 Corporate and Other 6 — Total plant and product line closures 6 1 2017 Restructuring Program: Fluoroproducts 1 3 Chemical Solutions — 1 Corporate and Other 1 5 Total 2017 Restructuring Program 2 9 Total restructuring, asset-related, and other charges $ 8 $ 10 Plant and Product Line Closures In the fourth quarter of 2015, the Company announced its completion of the strategic review of its Reactive Metals Solutions business and the decision to stop production at its Niagara Falls, New York manufacturing plant. For the three months ended March 31, 2018, the Company recorded additional decommissioning and dismantling-related charges of $1. The Company expects to incur approximately $10 in additional restructuring charges for similar activities through 2021, which will be reflected in Chemical Solutions, and will be expensed as incurred. As of March 31, 2019, the Company incurred, in the aggregate, $36 in restructuring charges related to these activities, excluding asset-related charges. 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, 2019, the Company incurred $6 in decommissioning and dismantling-related charges associated with these efforts. The Company expects to incur approximately $15 to $20 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. As of March 31, 2019, the Company incurred, in the aggregate, $15 in restructuring charges related to these activities. 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 connection with these corporate function efforts, the Company recorded $2 and $6 in restructuring-related charges for the three months as of March 31, 2019 and 2018, respectively. 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 received 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 separated from the Company through 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 were recognized over the period that each participating employee continued to provide service to Chemours, and amounted to $3 for the three months ended March 31, 2018. The Company recorded charges of $2 and $9 for its 2017 program during the three months ended March 31, 2019 and 2018, respectively. The cumulative amount incurred, in the aggregate, for the Company’s 2017 program amounted to $61 at March 31, 2019. The Company has substantially completed all actions related to this program, and the remaining amounts accrued at March 31, 2019 are expected to be paid during the first half of 2019. 2018 Restructuring Program In the fourth quarter of 2018, management initiated a restructuring program of the Company’s corporate functions and recorded the related estimated severance costs of $5. The program is expected to be completed in the first half of 2019. 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, 2019. 2015 Global Restructuring Program 2017 Restructuring Program 2018 Restructuring Program Total Balance at December 31, 2018 $ 1 $ 10 $ 5 $ 16 Credits to income — — (1 ) (1 ) Payments — (9 ) — (9 ) Balance at March 31, 2019 $ 1 $ 1 $ 4 $ 6 At March 31, 2019, there were 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, 2019 | |
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, 2019 and 2018. Three Months Ended March 31, 2019 2018 Leasing, contract services, and miscellaneous income (1) $ 26 $ 3 Royalty income (2) 5 5 Gain on sales of assets and businesses (3) — 42 Exchange gains, net (4) 6 — Non-operating pension and other post-retirement employee benefit income 3 7 Total other income, net $ 40 $ 57 (1) Leasing, contract services, and miscellaneous income includes European Union fluorinated greenhouse gas quota authorization sales of $24 and $2 for the three months ended March 31, 2019 and 2018, respectively. (2) Royalty income is primarily from technology licensing. (3) 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. (4) Exchange gains, net includes gains and losses on foreign currency forward contracts. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7. Income Taxes For the three months ended March 31, 2019 and 2018, Chemours recorded provisions for income taxes of $13 and $84, resulting in effective income tax rates of approximately 12% and 22%, respectively. The Company’s provision for income taxes for the three months ended March 31, 2019 included $9 of income tax benefits related to legal settlements and restructuring costs, and $6 of income tax benefits related to windfalls on share-based payments. The Company’s provision for income taxes for the three months ended March 31, 2018 included $10 of income tax expenses related to certain asset sales and $8 of income tax expenses related to the impact of certain U.S. tax reform provisions, which were somewhat offset by $5 of 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. With respect to U.S. tax reform, while management has completed its analysis within the applicable measurement period, pursuant to the U.S. Securities and Exchange Commission’s Staff Accounting Bulletin No. 118, the Company is accounting for the tax impact of new provisions based on an interpretation of existing statutory law, including proposed regulations issued by the U.S. Treasury and the Internal Revenue Service. While there can be no assurances as to the effect of any final regulations on the Company’s provision for income taxes, management will continue to evaluate the impact as any regulations issued become final during 2019. |
Earnings Per Share of Common St
Earnings Per Share of Common Stock | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share of Common Stock | Note 8. Earnings Per Share of Common Stock The following table sets forth the 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, 2019 and 2018. Three Months Ended March 31, 2019 2018 Numerator: Net income attributable to Chemours $ 94 $ 297 Denominator: Weighted-average number of common shares outstanding - basic 167,866,468 182,069,982 Dilutive effect of the Company’s employee compensation plans 4,194,432 6,263,215 Weighted-average number of common shares outstanding - diluted 172,060,900 188,333,197 Basic earnings per share of common stock $ 0.56 $ 1.63 Diluted earnings per share of common stock 0.55 1.58 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, 2019 and 2018. Three Months Ended March 31, 2019 2018 Average number of stock options 683,135 — |
Accounts and Notes Receivable,
Accounts and Notes Receivable, Net | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 Accounts receivable - trade, net (1) $ 776 $ 790 VAT, GST, and other taxes (2) 59 56 Other receivables (3) 12 15 Total accounts and notes receivable, net $ 847 $ 861 (1) Accounts receivable - trade, net includes trade notes receivable of $3 and $2 and is net of allowances for doubtful accounts of $5 at March 31, 2019 and December 31, 2018, 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 derivative instruments, advances, and other deposits. Accounts and notes receivable are carried at amounts that approximate fair value. Bad debt expense was less than $1 and $1 for the three months ended March 31, 2019 and 2018, respectively. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Net [Abstract] | |
Inventories | Note 10. Inventories The following table sets forth the components of the Company’s inventories at March 31, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 Finished products $ 724 $ 701 Semi-finished products 206 195 Raw materials, stores, and supplies 514 476 Inventories before LIFO adjustment 1,444 1,372 Less: Adjustment of inventories to LIFO basis (226 ) (225 ) Total inventories $ 1,218 $ 1,147 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 of the Company’s U.S. locations, which comprised $694 and $622 (or 48% and 45%) of inventories before the LIFO adjustments at March 31, 2019 and December 31, 2018, respectively. The remainder of the Company’s 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, 2019 | |
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, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 Equipment $ 7,382 $ 7,344 Buildings 918 914 Construction-in-progress 634 579 Land 119 119 Mineral rights 36 36 Property, plant, and equipment 9,089 8,992 Less: Accumulated depreciation (5,710 ) (5,701 ) Total property, plant, and equipment, net $ 3,379 $ 3,291 Depreciation expense amounted to $74 and $69 for the three months ended March 31, 2019 and 2018, respectively. Property, plant, and equipment, net includes a build-to-suit lease asset of $72 and $55 at March 31, 2019 and December 31, 2018, respectively. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 12. Leases The Company leases certain office space, equipment, railcars, tanks, barges, tow boats, and warehouses. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets and lease expense is recognized over the term of these leases on a straight-line basis. The Company’s leases have remaining terms of up to 18 years. Some leases of equipment contain immaterial amounts of residual value guarantees. The following table sets forth the Company’s lease assets and lease liabilities and their balance sheet location at March 31, 2019. Balance Sheet Location March 31, 2019 Lease assets: Operating lease right-of-use assets Operating lease right-of-use assets $ 323 Finance lease assets Property, plant, and equipment, net 2 Total lease assets $ 325 Lease liabilities: Current: Operating lease liabilities Other accrued liabilities $ 76 Non-current: Operating lease liabilities Operating lease liabilities 265 Finance lease liabilities Long-term debt, net 2 Total non-current lease liabilities 267 Total lease liabilities $ 343 The following table sets forth the components of the Company’s lease cost for the three months ended March 31, 2019. Three Months Ended March 31, 2019 Operating lease cost $ 25 Short-term lease cost 1 Variable lease cost 4 Total lease cost $ 30 The total cost associated with the Company’s finance leases amounted to less than $1 for the three months ended March 31, 2019. The following table sets forth the cash flows related to the Company’s leases for the three months ended March 31, 2019. Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 25 Non-cash operating lease liabilities activity: Leased assets obtained in exchange for new operating lease liabilities $ 19 The total cash flows associated with the Company’s finance leases amounted to less than $1 for the three months ended March 31, 2019. The following table sets forth the weighted-average term and weighted-average discount rate for the Company’s leases at March 31, 2019. March 31, 2019 Weighted-average remaining lease term (years): Operating leases 8.50 Finance leases 2.80 Weighted-average discount rate: Operating leases 5.10 % Finance leases 4.90 % The following table sets forth the Company’s lease liabilities’ maturities for the next five years and thereafter. As of March 31, 2019 Operating Leases Finance Leases Total Remainder of 2019 $ 72 $ — $ 72 2020 73 2 75 2021 62 — 62 2022 44 — 44 2023 29 — 29 Thereafter 135 — 135 Total lease payments 415 2 417 Less: Imputed interest 74 — 74 Present value of lease liabilities $ 341 $ 2 $ 343 The following table sets forth the Company’s lease liabilities’ maturities for the next five years and thereafter under the previous lease accounting standard. As of December 31, 2018 Operating Leases Finance Leases Total 2019 $ 92 $ — $ 92 2020 70 2 72 2021 59 — 59 2022 42 — 42 2023 27 — 27 Thereafter 134 — 134 Total lease payments $ 424 $ 2 $ 426 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 on the Company’s consolidated balance sheets as construction-in-progress within property, plant, and equipment, net, and a corresponding build-to-suit lease liability within long-term debt, net. Through March 31, 2019 and December 31, 2018, project costs paid by the owner-lessor amounted to $72 and $55, respectively. Construction of The Chemours Discovery Hub is expected to be completed by the end of 2019. |
Investments in Affiliates
Investments in Affiliates | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Affiliates | Note 13. Investments in Affiliates The Company engages in transactions with its equity method investees in the ordinary course of business. For the three months ended March 31, 2019 and 2018, net sales to the Company’s equity method investees amounted to $32 and $27, respectively, and purchases from the Company’s equity method investees amounted to $44 and $37, respectively. The Company also received $1 and $30 in dividends from its equity method investees for the three months ended March 31, 2019 and 2018, respectively. |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets | Note 14. Other Assets The following table sets forth the components of the Company’s other assets at March 31, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 Capitalized repair and maintenance costs $ 160 $ 178 Pension assets (1) 183 174 Deferred income taxes 46 46 Miscellaneous 41 39 Total other assets $ 430 $ 437 (1) Pension assets represent the funded status of certain of the Company's long-term employee benefit plans. |
Accounts Payable
Accounts Payable | 3 Months Ended |
Mar. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accounts Payable | Note 15. Accounts Payable The following table sets forth the components of the Company’s accounts payable at March 31, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 Trade payables $ 1,010 $ 1,111 VAT and other payables 32 26 Total accounts payable $ 1,042 $ 1,137 |
Other Accrued Liabilities
Other Accrued Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Payables And Accruals [Abstract] | |
Other Accrued Liabilities | Note 16. Other Accrued Liabilities The following table sets forth the components of the Company’s other accrued liabilities at March 31, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 Compensation and other employee-related costs $ 70 $ 108 Employee separation costs (1) 6 16 Accrued litigation (2) 31 76 Environmental remediation (2) 69 74 Income taxes 63 87 Customer rebates 42 79 Deferred income 7 6 Accrued interest 62 21 Operating lease liabilities (3) 76 — Miscellaneous (4) 91 92 Total other accrued liabilities $ 517 $ 559 (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 19 – Commitments and Contingent Liabilities.” (3) Represents the current portion of the Company’s operating lease liabilities, which is discussed further in “Note 2 – Recent Accounting Pronouncements” and “Note 12 – Leases.” (4) 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, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 17 . Debt The following table sets forth the components of the Company’s debt at March 31, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 Senior secured term loans: Tranche B-2 U.S. dollar term loan due May 2025 $ 891 $ 893 Tranche B-2 euro term loan due May 2025 (€347 at March 31, 2019 and December 31, 2018) 391 396 Senior unsecured notes: 6.625% due May 2023 908 908 7.000% due May 2025 750 750 4.000% due May 2026 (€450 at March 31, 2019 and December 31, 2018) 507 513 5.375% due May 2027 500 500 Finance lease liabilities 2 2 Build-to-suit lease obligation 72 55 Total debt 4,021 4,017 Less: Unamortized issue discounts (10 ) (10 ) Less: Unamortized debt issuance costs (33 ) (35 ) Less: Current maturities of long-term debt (13 ) (13 ) Total long-term debt, net $ 3,965 $ 3,959 Senior Secured Credit Facilities The Company’s credit agreement, as amended, provides for seven-year, senior secured term loans and a five-year No 0.10 Maturities The Company has required quarterly principal payments related to its senior secured term loans equivalent to 1.00% per annum through December 2024, with the balance due at maturity. 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 following table sets forth the Company’s debt principal maturities for the next five years and thereafter. Year Ended December 31, Remainder of 2019 $ 10 2020 13 2021 13 2022 13 2023 921 Thereafter 2,977 Total principal maturities on senior debt $ 3,947 The Company’s senior secured credit facilities are also subject to a springing maturity in the event that its 6.625% senior unsecured notes due May 2023 are not redeemed, repaid, modified, and/or refinanced within the 91-day period prior to their maturity date. Debt Fair Value The following table sets forth the estimated fair values of the Company’s senior debt issues, which are based on quotes received from third-party brokers, and are classified as Level 2 financial instruments in the fair value hierarchy. March 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Senior secured term loans: Tranche B-2 U.S. dollar term loan due May 2025 $ 891 $ 892 $ 893 $ 862 Tranche B-2 euro term loan due May 2025 (€347 at March 31, 2019 and December 31, 2018) 391 392 396 394 Senior unsecured notes: 6.625% due May 2023 908 942 908 918 7.000% due May 2025 750 793 750 761 4.000% due May 2026 (€450 at March 31, 2019 and December 31, 2018) 507 515 513 487 5.375% due May 2027 500 497 500 454 Total senior debt 3,947 $ 4,031 3,960 $ 3,876 Less: Unamortized issue discounts (10 ) (10 ) Less: Unamortized debt issuance costs (33 ) (35 ) Total senior debt, net $ 3,904 $ 3,915 |
Other Liabilities
Other Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Note 18. Other Liabilities The following table sets forth the components of the Company’s other liabilities at March 31, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 Environmental remediation (1) $ 164 $ 152 Employee-related costs (2) 118 130 Accrued litigation (1) 91 53 Asset retirement obligations 50 51 Deferred revenue 6 7 Miscellaneous (3) 66 64 Total other liabilities $ 495 $ 457 (1) The Company’s accrued environmental remediation and accrued litigation liabilities are discussed further in “Note 19 – 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 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Note 19. Commitments and Contingent Liabilities Litigation In addition to the matters discussed below, the Company and certain of its subsidiaries, from time to time, are subject to various lawsuits, claims, assessments, and proceedings with respect to product liability, intellectual property, personal injury, commercial, contractual, employment, governmental, environmental, anti-trust, and other such matters that arise in the ordinary course of business. In addition, 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. It is not possible to predict the outcomes of these various lawsuits, claims, assessments, or proceedings. While management believes it is reasonably possible that Chemours could incur losses in excess of the amounts accrued, if any, for the aforementioned proceedings, it does not believe any such loss would have a material impact on the Company’s consolidated financial position, results of operations, or cash flows. Disputes between Chemours and DuPont may also arise with respect to indemnification matters, including disputes based on matters of law or contract interpretation. If and to the extent these disputes arise, they could materially adversely affect Chemours. Asbestos In the separation, DuPont assigned its asbestos docket to Chemours. At March 31, 2019 and December 31, 2018, there were approximately 1,300 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 of the U.S. Most of the actions were brought by contractors who worked at sites between the 1950s 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, 2019 and December 31, 2018, Chemours had an accrual of $37 related to these matters. Benzene In the separation, DuPont assigned its benzene docket to Chemours. At March 31, 2019 and December 31, 2018, there were 21 and 19 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. Management believes that a loss is reasonably possible as to the docket as a whole; 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” (collectively, perfluorooctanoic acids and its salts, including the ammonium salt) 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 maintained accruals of $22 related to the PFOA matters discussed below at March 31, 2019 and December 31, 2018. These accruals relate 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 (“NJ DEP”). 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 state or the national health advisory. The Company will continue to work with the EPA regarding the extent of work that may be required with respect to these matters. Leach Settlement In 2004, DuPont settled a class action captioned Leach v. DuPont 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. Under the terms of the settlement, DuPont is obligated to fund up to $235 for a medical monitoring program for eligible class members and pay the administrative cost associated with the program, including class counsel fees. The court-appointed Director of Medical Monitoring implemented the program and testing is ongoing with associated payments to service providers disbursed from an escrow account which the Company replenishes pursuant to the settlement agreement. As of March 31, 2019, approximately $1.6 has been disbursed from escrow related to medical monitoring. While it is reasonably possible that the Company will incur additional costs related to the medical monitoring program, 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 and is included in the $22 accrued for these matters at March 31, 2019 and December 31, 2018. PFOA Leach Class Personal Injury Further, under the Leach settlement, class members may pursue personal injury claims against DuPont only for those diseases for which the C8 Science Panel determined a probable link exists. Approximately 3,500 lawsuits were subsequently filed in various federal and state courts in Ohio and West Virginia and consolidated in multi-district litigation (“MDL”) in Ohio federal court. These were resolved in March 2017 when DuPont entered into an agreement settling all MDL cases and claims, including all filed and unfiled personal injury cases and claims that were part of the plaintiffs’ counsel’s claims inventory, as well as cases tried to a jury verdict (“MDL Settlement”) for $670.7 in cash, with half paid by Chemours, and half paid by DuPont. Concurrently with the MDL Settlement, 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. While all MDL lawsuits were dismissed or resolved through the MDL Settlement, the MDL Settlement did 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, approximately 54 personal injury cases have been filed and are pending in West Virginia or Ohio courts alleging status as a Leach class member. These cases are consolidated before the MDL court. State of Ohio 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. PFAS DuPont and Chemours have been named in other litigations brought by individuals, water districts, businesses, and a putative national medical monitoring putative class action alleging exposure to and/or contamination from perfluorinated and polyfluorinated compounds (“PFAS”), including PFOA. Aqueous Film Forming Foam Matters DuPont and Chemours have been named in four matters involving aqueous film forming foam (“AFFF”), which is used to extinguish hydrocarbon-based (i.e., Class B) fires and subject to U.S. military specifications. Some matters have been transferred to a multidistrict litigation (“AFFF MDL”) in South Carolina federal court. In February 2019, two commercial dairy farms near Cannon Air Force Base in New Mexico filed lawsuits in federal court in New Mexico against DuPont and Chemours, as well as against several manufacturers of AFFF. These cases allege that decades of use of AFFF for firefighting practice at the nearby Air Force base contaminated the groundwater, the aquifer, and the property with PFAS, including PFOA and “PFOS” (perfluorooctane sulfonic acid) and threatens their milk and crop production. These cases allege that DuPont and Chemours manufactured AFFF and its non-defined “constituents.” Plaintiffs seek to recover damages for investigating, monitoring, remediating, treating, and otherwise responding to the contamination, and punitive damages. Also in February 2019, the City of Dayton, Ohio (“City”) filed an amended complaint to add DuPont and Chemours as defendants to a lawsuit filed in Ohio federal court against numerous AFFF manufacturers. The City alleges that decades of AFFF use in firefighting practice at Wright-Patterson Air Force Base in Ohio and at the City’s own firefighting practice center contaminated the drinking water supply. The City alleges that DuPont and Chemours manufactured AFFF and its non-defined “constituents.” The City seeks to recover damages for investigating, monitoring, remediating, treating, and otherwise responding to the PFAS contamination and punitive damages. The case was transferred to the AFFF MDL. In April 2019, the Atlantic City Municipal Utilities Authority filed a complaint in New Jersey federal court against AFFF manufacturers, the Federal Aviation Administration (“FAA”), DuPont, and Chemours regarding use of AFFF at William J. Hughes Technical Center in New Jersey, an FAA-owned site. Plaintiffs allege that DuPont manufactured, marketed, sold, or otherwise promoted the use of AFFF and that Chemours is responsible for sharing DuPont liabilities. The plaintiff seeks to recover damages including clean-up costs, compensatory, and punitive damages regarding contamination of its drinking water wells. Other PFAS Matters DuPont has also been named in approximately 51 lawsuits pending in New York courts, which are not part of the Leach class, brought by individual plaintiffs alleging negligence and other claims in the release of PFAS, including PFOA, into drinking water, and seeking medical monitoring, compensatory, and punitive damages against current and former owners and suppliers of a manufacturing facility in Hoosick Falls, New York. Two other lawsuits in New York have been filed by a business seeking to recover its losses and by nearby property owners and residents in a putative class action seeking medical monitoring, compensatory and punitive damages, and injunctive relief. 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 PFAS, 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 in violation of the New Jersey Spill Compensation and Control Act (“Spill 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. In October 2018, a putative class action was filed in Ohio federal court against 3M Company (“3M”), DuPont, Chemours, and other defendants seeking class action status for U.S. residents having a detectable level of PFAS in their blood serum. The complaint seeks declaratory and injunctive relief, including the establishment of a “PFAS Science Panel.” In December 2018, the owners of a dairy farm filed a lawsuit in Maine state court against numerous defendants including DuPont and Chemours alleging that their dairy farm was contaminated by PFAS, including PFOS and PFOA present in treated municipal sewer sludge used in agricultural spreading applications on their farm. The complaint asserts negligence, trespass, and other tort and state statutory claims and seeks damages. In January 2019, the Town of East Hampton , New York ( “Town”) filed a lawsuit against DuPont, Chemours , and numerous other defendants in New York state court alleging that it has and will incur costs for assessment, remediation, an d response to address PFAs contamination, including PFOA and PFOS in drinking water and the environment. As to DuPont and Chemours, the Town alleges that PFOA and/or PFOS washed from clothing or cleaning supplies to cesspools and then subsurface water. In addition to cost recovery, the Town seeks natural resource damages, compensatory and punitive damages , and injunctive relief. Other defendants, identified as manufacturers of AFFF , transferred the case to the AFFF MDL. In February 2019, the Ridgewood City Water Department (“Ridgewood Water”), a public water supplier in Bergen County, New Jersey filed a lawsuit in New Jersey state court against DuPont, Chemours, and numerous other defendants. As to DuPont and Chemours, Ridgewood Water alleges that “PTFE” (polytetrafluoroethylene fluoropolymers) is one of the sources of alleged PFAS contamination, including PFOA and PFOS. Ridgewood Water seeks declaratory relief requiring defendants to pay for assessment, remediation, and response costs, as well as compensatory and punitive damages. In March 2019, the NJ DEP issued two Directives and filed four lawsuits against defendants, including Chemours. Of these actions, the State-wide PFAS Directive and the lawsuits concerning the Company’s Chambers Works, New Jersey and Parlin, New Jersey sites involve PFAS. All the NJ DEP matters are described further below. PFOA and PFAS Summary There may be additional lawsuits filed related to PFOA and/or PFAS, including DuPont’s use of PFOA, its manufacture of PFOA, or its customers’ use of DuPont products. Any such litigation could result in Chemours incurring additional costs and liabilities. Management believes that it is reasonably possible that the Company could incur losses related to PFOA and/or PFAS matters in excess of amounts accrued, but any such losses are not estimable at this time due to various reasons, including, among others, that such matters are in their early stages and have significant factual issues to be resolved. New Jersey Department of Environmental Protection Directives and Litigation In March 2019, the NJ DEP issued two Directives and filed four lawsuits against Chemours and other defendants. The Directives are: (i) a state-wide PFAS Directive issued to DuPont, DowDuPont, DuPont Specialty Products USA, LLC (“DuPont SP USA”), Solvay S.A., 3M, and Chemours seeking a meeting to discuss future costs for PFAS-related costs incurred by the NJ DEP and establishing a funding source for such costs by the Directive recipients, and information relating to historic and current use of certain PFAS compounds; and, (ii) a Pompton Lakes natural resource damage Directive to DuPont and Chemours demanding $0.1 to cover the cost of preparation of a natural resource damage assessment plan and access to related documents. The lawsuits filed in New Jersey state courts by the NJ DEP are: (i) in Salem County, against DuPont, 3M, and Chemours, primarily alleging clean-up and removal costs and damages and natural resource damages under the Spill Act, the Water Pollution Control Act (“WPCA”), the Industrial Site Recovery Act (“ISRA”), and common law regarding past and present operations at Chambers Works, a site assigned to Chemours at separation; (ii) in Middlesex County, against DuPont, DuPont SP USA, 3M, and Chemours, primarily alleging clean-up and removal costs, and damages and natural resource damages under the Spill Act, WPCA, ISRA, and common law regarding past and present operations at Parlin, a DuPont-owned site; (iii) in Gloucester County, against DuPont and Chemours, primarily alleging clean-up and removal costs, and damages and natural resource damages under the Spill Act, WPCA, and common law regarding past operations at Repauno, a non-operating remediation site assigned to Chemours at separation, which has been sold; and, (iv) in Passaic County, against DuPont and Chemours, primarily alleging clean-up and removal costs, and damages and natural resource damages under the Spill Act, WPCA, and common law regarding past operations at Pompton Lakes, a non-operating remediation site assigned to Chemours at separation. The alleged pollutants listed in the Salem County and Middlesex County matters above include PFAS. Management believes that a loss is reasonably possible as to these matters, but not estimable for reasons including that these matters are in their early stages, and have significant factual issues to be resolved. U.S. Smelter and Lead Refinery, Inc. There are six lawsuits, including one putative class action, pending against DuPont by area residents concerning the U.S. Smelter and Lead Refinery multi-party Superfund site in East Chicago, Indiana. Several 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. 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 their early stages and have significant factual issues to be resolved. GenX and Other Perfluorinated and Polyfluorinated Compounds At its Fayetteville, North Carolina facility, the Company continues to capture and separately dispose of process waste water containing the polymerization processing aid hexafluoropropylene oxide dimer acid (“HFPO Dimer Acid,” sometimes referred to as “GenX” or “C3 Dimer Acid”) and other perfluorinated and polyfluorinated compounds. The Company believes that discharges to the Cape Fear River, site surface water, groundwater, and air emissions have not impacted the safety of drinking water in North Carolina and is cooperating with a variety of ongoing inquiries and investigations from federal, state, and local authorities, regulators, and other governmental entities, including an ongoing investigation being conducted by the U.S. Attorney’s Office for the Eastern District of North Carolina and the Environment 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 waste water disposal measures it had previously commenced and to provide certain information. In November 2017, the NC DEQ informed the Company that it was suspending the process waste water discharge permit for the Fayetteville facility. The Company thereafter commenced the capture and separate disposal of all process waste water from the Fayetteville facility related to the Company’s own operations. In addition, in June 2018, the North Carolina Legislature enacted legislation (i) granting the governor the authority, in certain circumstances, to require a facility with unauthorized PFAS discharges to cease operations, and (ii) granting the governor the authority, in certain circumstances, to direct the NC DEQ secretary to order a PFAS discharger to establish permanent replacement water supplies for parties whose water was contaminated by the discharge. On July 13, 2018, Cape Fear River Watch (“CFRW”), a non-profit organization, sued the NC DEQ in North Carolina state court, seeking to require the NC DEQ to take additional actions as to the Fayetteville facility. On August 29, 2018, CFRW sued the Company in North Carolina federal court for alleged violations of the Clean Water Act (“CWA”) and the Toxic Substances Control Act (“TSCA”), seeking declaratory and injunctive relief and penalties. On February 25, 2019, the North Carolina Superior Court for Bladen County approved a Consent Order between NC DEQ and the Company resolving the State’s and CFRW’s lawsuits and other matters (including issues regarding the legislation referenced above and Notices of Violation (“NOVs”) issued by the State) and litigation brought by CFRW. Under its terms, Chemours paid $13 in March 2019 to cover a civil penalty and investigative costs and continues to take additional actions to address site surface water, groundwater, and air emissions, including installing technology to abate future emissions by specified dates and meeting specified emissions reductions (with stipulated penalties for failures to do so). In connection with the approved Consent Order, the Company accrued an additional $27 during the first quarter of 2019 and had total accrued liabilities of $83 for this matter at March 31, 2019, of which, $58 is treated as accrued litigation costs. The Company’s estimated liability is based on management’s assessment of the current facts and circumstances for this matter, which are subject to various assumptions that include, but are not limited to, the number of affected properties, the type of water treatment system required, the cost of proposed water treatment systems and any related operation, maintenance, and monitoring (“OM&M”) requirements, assessed fines and penalties, and other charges contemplated by the Consent Order. In February 2019, the Company received an NOV from the EPA alleging certain TSCA violations at its Fayetteville site. Matters raised in the NOV could have the potential to affect operations at the Fayetteville site. The Company responded to the EPA in March 2019 asserting that the Company has not violated environmental laws. At this time, management does not believe that a loss is probable related to the matters in this NOV. It is also possible that issues relating to site discharges could result in further litigation or regulatory demands with regard to the Fayetteville facility, including potential permit modifications. If such issues arise, if the Consent Order is modified, or as implementation of the obligations under the Consent Order proceed, an additional loss is reasonably possible but not estimable at this time. The Company has responded to grand jury subpoenas, produced witnesses before a grand jury and for interviews with government investigators and attorneys, and met with the U.S. Attorney’s Office for the Eastern District of North Carolina and the Environmental Natural Resources Division of the U.S. Department of Justice regarding their investigation into a potential violation of the CWA . Although the Company is not able at this point to predict the outcome of that investigation, it is reasonably possible that it could result in a criminal or civil proceeding, the imposition of fines and penalties, and/or other remedies. Civil actions have been filed against DuPont and Chemours in North Carolina federal court relating to discharges from the Fayetteville site. These actions include a consolidated action brought by public water suppliers 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. Ruling on the Company’s motions in April 2019, the court dismissed the medical monitoring, injunctive demand, and many other alleged causes of actions in these lawsuits. It is not possible at this point to predict the timing, course, or outcome of all governmental and regulatory inquiries and notices, and litigation, and it is possible that these matters could materially affect the Company’s financial results and operations. In addition, local communities, organizations, and federal and state regulatory agencies have raised questions concerning HFPO Dimer Acid and other perfluorinated and polyfluorinated compounds 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. Mining Solutions Facility Construction Stoppage In March 2018, a civil association in Mexico filed a complaint against the government authorities involved in the permitting process of the Company’s new Mining Solutions facility under construction in Gomez Palacio, Durango, Mexico. The claimant sought and obtained a suspension from the district judge to stop the Company’s construction work while the claim is studied and reviewed. Chemours, as the third-party affected, has filed an appeal. The Company has declared force majeure with its vendors while plant construction is idled. Chemours’ project permits fully comply with the laws and regulations at the federal, state, and municipal levels, and the Company is working with local and federal authorities, along with community leaders, to address the complaint. Management determined that these delays represented a trigger event, which required the long-lived assets under construction at the facility and the Mining Solutions reporting unit’s goodwill to be tested for impairment at March 31, 2019. No impairments were noted as a result of these tests. If the Company is unable to resume construction on the facility, a significant portion of the associated long-lived assets could be impaired. 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, 2019 and December 31, 2018, the consolidated balance sheets included liabilities relating to these matters of $233 and $226, respectively, which, in management’s opinion, are 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 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 $450 above the amount accrued at March 31, 2019. For the three months ended March 31, 2019 and 2018, Chemours incurred environmental remediation expenses of $15 and $11, respectively. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders Equity Note [Abstract] | |
Equity | Note 20. Equity 2017 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 (“2017 Share Repurchase Program”). Under the 2017 Share Repurchase Program, shares of Chemours’ common stock were 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 2017 Share Repurchase Program became effective on November 30, 2017. On May 31, 2018, the Company completed the aggregate $500 in authorized purchases of Chemours’ issued and outstanding common stock under the 2017 Share Repurchase Program, which amounted to a cumulative 10,085,647 shares purchased at an average share price of $49.58 per share. All common shares purchased under the 2017 Share Repurchase Program are held as treasury stock and were accounted for using the cost method. 2018 Share Repurchase Program On August 1, 2018, 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 $750, plus any associated fees or costs in connection with the Company’s share repurchase activity (“2018 Share Repurchase Program”). On February 13, 2019, the Company’s board of directors increased the authorization amount of the 2018 Share Repurchase Program from $750 to $1,000. Under the 2018 Share Repurchase Program, shares of Chemours’ common stock can 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 2018 Share Repurchase Program became effective on August 1, 2018 and will continue through the earlier of its expiration on December 31, 2020, or the completion of repurchases up to the approved amount. The program may be suspended or discontinued at any time. All common shares purchased under the 2018 Share Repurchase Program are expected to be held as treasury stock and accounted for using the cost method. Under the 2018 Share Repurchase Program, the Company purchased an additional 7,278,002 shares of Chemours’ issued and outstanding common stock during the first quarter of 2019, which amounted to $261 at an average share price of $35.87 per share. As of March 31, 2019, the Company has purchased a cumulative 13,628,859 shares of Chemours’ issued and outstanding common stock under the 2018 Share Repurchase Program, which amounted to $511 at an average share price of $37.47 per share. The aggregate amount of Chemours’ common stock that remained available for purchase under the 2018 Share Repurchase Program at March 31, 2019 was $489. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | Note 21. Stock-based Compensation The Company’s total stock-based compensation expense for the three months ended March 31, 2019 and 2018 amounted to $8 and $9, respectively. Stock Options During the three months ended March 31, 2019, Chemours granted approximately 760,000 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 Company’s stock options are based on the Black-Scholes valuation model. The following table sets forth the assumptions used to determine the fair value of the Company’s stock option awards that were granted during the three months ended March 31, 2019. Three Months Ended March 31, 2019 Risk-free interest rate 2.60 % Expected term (years) 6.00 Volatility 48.07 % Dividend yield 2.63 % Fair value per stock option $ 14.40 The Company recorded $4 and $5 in stock-based compensation expense specific to its stock options for the three months ended March 31, 2019 and 2018, respectively. At March 31, 2019, approximately 6,980,000 stock options remained outstanding. Restricted Stock Units During the three months ended March 31, 2019, Chemours granted approximately 150,000 restricted stock units (“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 on the market price of the underlying common stock at the grant date. The Company recorded $2 in stock-based compensation expense specific to its RSUs for the three months ended March 31, 2019 and 2018. At March 31, 2019, approximately 270,000 RSUs remained non-vested. Performance Share Units During the three months ended March 31, 2019, Chemours granted approximately 200,000 performance share units (“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 250% of the target amount depending on the Company’s performance against stated performance goals. During the three months ended March 31, 2019, approximately 1,520,000 PSUs granted in 2016 to the Company’s key senior management employees vested, based on the attainment of certain performance and market-based conditions. Of the 1,520,000 PSUs that vested during the three months ended March 31, 2019, approximately 680,000 non-issued shares were cancelled to cover the employee portion of income taxes related to this award. 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 conditions are satisfied. The Company recorded $2 in stock-based compensation expense specific to its PSUs for the three months ended March 31, 2019 and 2018. At March 31, 2019, approximately 540,000 PSUs at 100% of the target amount remained 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 are 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 two purchase periods in March and September 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 2019, the Company executed an open market transaction to purchase the Company’s common stock on behalf of its ESPP participants, which amounted to approximately 25,000 shares at $1. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Note 22. Financial Instruments Derivative Instruments Objectives and Strategies for Holding Derivative Instruments In the ordinary course of business, Chemours enters into contractual arrangements (i.e., derivatives) to reduce its exposure to foreign currency risks. The Company has established a derivative program to be utilized for financial risk management, which currently includes three distinct risk management strategies: (i) foreign currency forward contracts, which are used to minimize the volatility in the Company’s earnings related to foreign exchange gains and losses resulting from remeasuring its monetary assets and liabilities that are denominated in non-functional currencies; (ii) foreign currency forward contracts, which are also used to mitigate the risks associated with fluctuations in the euro against the U.S. dollar for forecasted U.S. dollar-denominated inventory purchases in certain of the Company’s international subsidiaries that use the euro as their functional currency; and, (iii) euro-denominated debt, which is used to reduce the volatility in stockholders’ equity caused by changes in foreign currency exchange rates of the euro with respect to the U.S. dollar for certain of its international subsidiaries that use the euro as their functional currency. The Company’s derivative 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, and the Company does not enter into derivative financial instruments for trading or speculative purposes. Net Monetary Assets and Liabilities Hedge – Foreign Currency Forward Contracts At March 31, 2019, the Company had 15 foreign currency forward contracts outstanding with an aggregate gross notional U.S. dollar equivalent of $424, and an average maturity of one month. At December 31, 2018, the Company had 20 foreign currency forward contracts outstanding with an aggregate gross notional U.S. dollar equivalent of $503, and an average maturity of one month. Chemours recognized a net loss of $2 and a net gain of $4 in other income, net for the three months ended March 31, 2019 and 2018, respectively. Cash Flow Hedge – Foreign Currency Forward Contracts At March 31, 2019, the Company had 95 foreign currency contracts outstanding under Chemours’ cash flow hedge program with an aggregate notional U.S. dollar equivalent of $158, and an average maturity of four months. At December 31, 2018, the Company had 75 foreign currency contracts outstanding under Chemours’ cash flow hedge program with an aggregate notional U.S. dollar equivalent of $143, and an average maturity of four months. The Company recognized a pre-tax gain of $2 for the three months ended March 31, 2019 on its cash flow hedge within accumulated other comprehensive loss. For the three months ended March 31, 2019, $3 of gain was reclassified to the cost of goods sold from accumulated other comprehensive loss. The Company expects to reclassify an approximate $5 of net gain from accumulated other comprehensive loss to the cost of goods sold over the next 12 months, based on current foreign currency exchange rates. Net Investment Hedge – Foreign Currency Borrowings T he Company recognized a pre-tax gain of $10 and a pre-tax loss of $34 for the three months ended March 31, 2019 and 2018, respectively, on its net investment hedges within accumulated other comprehensive loss. amounts were reclassified from accumulated other comprehensive loss for the Company’s net investment hedges during the three months ended March 31, 2019 and 2018. Fair Value of Derivative Instruments The following table sets forth the fair value of the Company’s derivative assets and liabilities at March 31, 2019 and December 31, 2018. Fair Value Using Level 2 Inputs Balance Sheet Location March 31, 2019 December 31, 2018 Asset derivatives: Foreign currency forward contracts not designated as a hedging instrument Accounts and notes receivable, net $ 1 $ 1 Foreign currency forward contracts designated as a cash flow hedge Accounts and notes receivable, net 3 3 Total asset derivatives $ 4 $ 4 Liability derivatives: Foreign currency forward contracts not designated as a hedging instrument Other accrued liabilities $ 1 $ 1 Total liability derivatives $ 1 $ 1 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 the 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 are subjected to tolerance and/or quality checks. Summary of Derivative Instruments The following table sets forth the pre-tax changes in fair value of the Company’s derivative assets and liabilities for the three months ended March 31, 2019 and 2018. Gain (Loss) Recognized In Other Comprehensive Three months ended March 31, Cost of Goods Sold Other Income, Net Income 2019 Foreign currency forward contracts not designated as a hedging instrument $ — $ (2 ) $ — Foreign currency forward contracts designated as a cash flow hedge 3 — 2 Euro-denominated debt designated as a net investment hedge — — 10 2018 Foreign currency forward contracts not designated as a hedging instrument $ — $ 4 $ — Euro-denominated debt designated as a net investment hedge — — (34 ) |
Long-term Employee Benefits
Long-term Employee Benefits | 3 Months Ended |
Mar. 31, 2019 | |
General Discussion Of Pension And Other Postretirement Benefits [Abstract] | |
Long-term Employee Benefits | Note 23. 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 (cost) is based on estimated values and the 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 (cost) income and amounts recognized in other comprehensive income for the three months ended March 31, 2019 and 2018. Three Months Ended March 31, 2019 2018 Service cost $ (3 ) $ (4 ) Interest cost (5 ) (4 ) Expected return on plan assets 13 15 Amortization of actuarial loss (5 ) (4 ) Settlement loss (1 ) — Total net periodic pension (cost) income $ (1 ) $ 3 Amortization of actuarial loss $ 5 $ 4 Settlement loss 1 — Effect of foreign exchange rates 3 (9 ) Total changes in plan assets and benefit obligations recognized in other comprehensive income $ 9 $ (5 ) The Company made cash contributions of $6 and $4 to its defined benefit pension plans during the three months ended March 31, 2019 and 2018, respectively, and expects to make additional cash contributions of $11 to its defined benefit pension plans during the remainder of 2019. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Note 24. Segment Information Chemours’ reportable segments are Fluoroproducts, Chemical Solutions, and Titanium Technologies. Corporate costs and certain legal and environmental expenses, stock-based compensation expenses, and foreign exchange gains and losses arising from the remeasurement of balances in currencies other than the functional currency of the Company’s legal entities are reflected in Corporate and Other. Segment net 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 represents 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; • asset impairments; • (gains) losses on sales of assets and businesses; 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, 2019 and 2018. Three Months Ended March 31, Fluoroproducts Chemical Solutions Titanium Technologies Corporate and Other Total 2019 Net sales to external customers $ 687 $ 134 $ 555 $ — $ 1,376 Adjusted EBITDA 159 15 126 (38 ) 262 Depreciation and amortization 32 6 30 8 76 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 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, 2019 and 2018. Three Months Ended March 31, 2019 2018 Income before income taxes $ 107 $ 381 Interest expense, net 51 52 Depreciation and amortization 76 70 Non-operating pension and other post-retirement employee benefit income (3 ) (7 ) Exchange gains, net (6 ) — Restructuring, asset-related, and other charges (1) 8 10 Gain on sales of assets and businesses (2) — (42 ) Legal charges (3) 29 4 Adjusted EBITDA $ 262 $ 468 (1) Includes restructuring, asset-related, and other charges, which are discussed in further detail in “Note 5 – Restructuring, Asset-related, and Other Charges.” (2) For the three months ended March 31, 2018, the Company recognized a gain of $42 on the sale of its Linden, New Jersey site. (3) Includes litigation settlements, PFOA drinking water treatment accruals, and other legal charges. For the three months ended March 31, 2019, legal charges included $27 in additional charges for the approved final Consent Order associated with certain matters at the Company’s Fayetteville, North Carolina facility, which are discussed in further detail in “Note 19 – Commitments and Contingent Liabilities.” |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 25. Subsequent Event The Company repurchased an additional 1,387,241 shares of its issued and outstanding common stock under the 2018 Share Repurchase Program subsequent to March 31, 2019, which amounted to $53 at an average share price of $38.51 per share . |
Guarantor Condensed Consolidati
Guarantor Condensed Consolidating Financial Information | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Guarantor Condensed Consolidating Financial Information | Note 26 . Guarantor Condensed Consolidating Financial Information The following guarantor condensed consolidating financial information is included in accordance with Rule 3-10 of Regulation S-X (“Rule 3-10”) in connection with the subsidiary guarantees of the “Notes” (collectively, the 6.625% senior unsecured notes due May 2023, the 7.000% senior unsecured notes due May 2025, the 4.000% senior unsecured notes due May 2026, which are denominated in euros, and the 5.375% senior unsecured notes due May 2027), in each case, issued by The Chemours Company (“Parent Issuer”). As of the dates indicated, each series of the Notes was fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis, subject to certain exceptions, by the same group of subsidiaries of the Parent Issuer (together, “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”). Pursuant to the indentures governing the Notes, the Guarantor Subsidiaries 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, 2019 and 2018; • the condensed consolidating balance sheets at March 31, 2019 and December 31, 2018; and, • the condensed consolidating statements of cash flows for the three months ended March 31, 2019 and 2018. The following guarantor condensed consolidating financial information is presented using the equity method of accounting for the Company’s investments in its wholly-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 may not necessarily be indicative of the financial positions, results of operations, or cash flows of the Company’s subsidiaries had they operated as independent entities, and should be read in conjunction with the interim consolidated financial statements and the related notes thereto. Condensed Consolidating Statements of Comprehensive Income Three Months Ended March 31, 2019 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Adjustments Consolidated Net sales $ — $ 877 $ 898 $ (399 ) $ 1,376 Cost of goods sold — 741 737 (398 ) 1,080 Gross profit — 136 161 (1 ) 296 Selling, general, and administrative expense 8 117 38 (7 ) 156 Research and development expense — 20 2 — 22 Restructuring, asset-related, and other charges — 8 — — 8 Total other operating expenses 8 145 40 (7 ) 186 Equity in earnings of affiliates — — 8 — 8 Equity in earnings (loss) of subsidiaries 127 (2 ) — (125 ) — Interest (expense) income, net (53 ) — 2 — (51 ) Intercompany interest income (expense), net 9 5 (14 ) — — Other income, net 9 34 4 (7 ) 40 Income before income taxes 84 28 121 (126 ) 107 (Benefit from) provision for income taxes (10 ) (1 ) 25 (1 ) 13 Net income 94 29 96 (125 ) 94 Net income attributable to Chemours $ 94 $ 29 $ 96 $ (125 ) $ 94 Comprehensive income attributable to Chemours $ 115 $ 29 $ 110 $ (139 ) $ 115 Condensed Consolidating Statement s 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 — 9 1 — 10 Total other operating 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 Net income attributable to Chemours $ 297 $ 115 $ 200 $ (315 ) $ 297 Comprehensive income attributable to Chemours $ 373 $ 117 $ 299 $ (416 ) $ 373 Condensed Consolidating Balance Sheets March 31, 2019 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 115 $ 582 $ — $ 697 Accounts and notes receivable, net — 305 542 — 847 Intercompany receivables 18 967 383 (1,368 ) — Inventories — 581 723 (86 ) 1,218 Prepaid expenses and other — 51 29 5 85 Total current assets 18 2,019 2,259 (1,449 ) 2,847 Property, plant, and equipment — 6,956 2,133 — 9,089 Less: Accumulated depreciation — (4,596 ) (1,114 ) — (5,710 ) Property, plant, and equipment, net — 2,360 1,019 — 3,379 Operating lease right-of-use assets — 300 23 — 323 Goodwill and other intangible assets, net — 165 15 — 180 Investments in affiliates — — 166 — 166 Investments in subsidiaries 4,576 — — (4,576 ) — Intercompany notes receivable 1,150 — — (1,150 ) — Other assets 17 141 281 (9 ) 430 Total assets $ 5,761 $ 4,985 $ 3,763 $ (7,184 ) $ 7,325 Liabilities Current liabilities: Accounts payable $ — $ 603 $ 439 $ — $ 1,042 Current maturities of long-term debt 13 — — — 13 Intercompany payables 970 103 295 (1,368 ) — Other accrued liabilities 68 297 153 (1 ) 517 Total current liabilities 1,051 1,003 887 (1,369 ) 1,572 Long-term debt, net 3,891 74 — — 3,965 Operating lease liabilities — 251 14 — 265 Intercompany notes payable — — 1,150 (1,150 ) — Deferred income taxes 9 135 85 (17 ) 212 Other liabilities — 411 84 — 495 Total liabilities 4,951 1,874 2,220 (2,536 ) 6,509 Commitments and contingent liabilities Equity Total Chemours stockholders’ equity 810 3,111 1,537 (4,648 ) 810 Non-controlling interests — — 6 — 6 Total equity 810 3,111 1,543 (4,648 ) 816 Total liabilities and equity $ 5,761 $ 4,985 $ 3,763 $ (7,184 ) $ 7,325 Condensed Consolidating Balance Sheets December 31, 2018 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 239 $ 962 $ — $ 1,201 Accounts and notes receivable, net — 297 564 — 861 Intercompany receivables 2 1,057 91 (1,150 ) — Inventories — 483 749 (85 ) 1,147 Prepaid expenses and other — 58 26 — 84 Total current assets 2 2,134 2,392 (1,235 ) 3,293 Property, plant, and equipment — 6,870 2,122 — 8,992 Less: Accumulated depreciation — (4,591 ) (1,110 ) — (5,701 ) Property, plant, and equipment, net — 2,279 1,012 — 3,291 Goodwill and other intangible assets, net — 167 14 — 181 Investments in affiliates — — 160 — 160 Investments in subsidiaries 4,487 11 — (4,498 ) — Intercompany notes receivable 1,150 — — (1,150 ) — Other assets 17 154 274 (8 ) 437 Total assets $ 5,656 $ 4,745 $ 3,852 $ (6,891 ) $ 7,362 Liabilities Current liabilities: Accounts payable $ — $ 637 $ 500 $ — $ 1,137 Current maturities of long-term debt 13 — — — 13 Intercompany payables 698 92 360 (1,150 ) — Other accrued liabilities 21 341 198 (1 ) 559 Total current liabilities 732 1,070 1,058 (1,151 ) 1,709 Long-term debt, net 3,902 57 — — 3,959 Intercompany notes payable — — 1,150 (1,150 ) — Deferred income taxes 8 143 82 (16 ) 217 Other liabilities — 372 85 — 457 Total liabilities 4,642 1,642 2,375 (2,317 ) 6,342 Commitments and contingent liabilities Equity Total Chemours stockholders’ equity 1,014 3,103 1,471 (4,574 ) 1,014 Non-controlling interests — — 6 — 6 Total equity 1,014 3,103 1,477 (4,574 ) 1,020 Total liabilities and equity $ 5,656 $ 4,745 $ 3,852 $ (6,891 ) $ 7,362 Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2019 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Adjustments Consolidated Cash flows from operating activities Cash provided by (used for) operating activities $ 53 $ (26 ) $ (32 ) $ (39 ) $ (44 ) Cash flows from investing activities Purchases of property, plant, and equipment — (113 ) (20 ) — (133 ) Intercompany investing activities — 16 (279 ) 263 — Foreign exchange contract settlements, net — (1 ) — — (1 ) Cash used for investing activities — (98 ) (299 ) 263 (134 ) Cash flows from financing activities Debt repayments (3 ) — — — (3 ) Purchases of treasury stock, at cost (255 ) — — — (255 ) Intercompany financing activities 271 — (47 ) (224 ) — Proceeds from exercised stock options, net 6 — — — 6 Payments related to tax withholdings on vested stock awards (30 ) — — — (30 ) Payments of dividends (42 ) — — — (42 ) Cash used for financing activities (53 ) — (47 ) (224 ) (324 ) Effect of exchange rate changes on cash and cash equivalents — — (2 ) — (2 ) Decrease in cash and cash equivalents — (124 ) (380 ) — (504 ) Cash and cash equivalents at January 1, — 239 962 — 1,201 Cash and cash equivalents at March 31, $ — $ 115 $ 582 $ — $ 697 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 Payments related to tax withholdings on vested stock awards (1 ) — — — (1 ) Payments 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 January 1, — 761 795 — 1,556 Cash and cash equivalents at March 31, $ — $ 470 $ 964 $ — $ 1,434 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Accounting Guidance Issued and Not Yet Adopted Changes to Disclosure Requirements for Defined Benefit Plans In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-14, Compensation –Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans Recently Adopted Accounting Guidance Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) The Company adopted ASU No. 2016-02 on January 1, 2019 using the modified retrospective transition method , which did not require the Company to adjust comparative periods. Operating leases are included in operating lease right-of-use assets, other accrued liabilities, and operating lease liabilities on the consolidated balance sheets. Finance leases are included in property, plant, and equipment, net, current maturities of long-term debt, and long-term debt, net, on the consolidated balance sheets. The Company’s lease assets and lease liabilities are recognized on the lease commencement date in an amount that represents the present value of future lease payments. The Company’s incremental borrowing rate, which is based on information available at the adoption date for existing leases and the commencement date for leases commencing after the adoption date, is used to determine the present value of lease payments. The most significant impact of the Company’s adoption of ASU No. 2016-02 was the recognition of $333 of operating lease right-of-use assets and $349 of operating lease liabilities on its consolidated balance sheets at January 1, 2019. Operating lease right-of-use assets were reduced by $16 due to a tenant improvement allowance on a lease of office space. The Company’s adoption of ASU No. 2016-02 did not have any impact to the Company’s consolidated statements of operations, or its consolidated statements of cash flows. Further, there was no impact on the Company’s covenant compliance under its current debt agreements as a result of the adoption of ASU No. 2016-02. The Company elected the package of practical expedients included in this guidance, which allowed it to not reassess: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and, (iii) the initial direct costs for existing leases. The Company also elected the practical expedient to not assess whether existing or expired land easements contain a lease. The Company does not recognize short-term leases on its consolidated balance sheets, and will recognize those lease payments in the consolidated statements of operations on a straight-line basis over the lease term. Leases with the options to extend their term or terminate early are reflected in the lease term when it is reasonably certain that the Company will exercise such options. Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB issued ASU No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract |
Net Sales (Tables)
Net Sales (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019. Three Months Ended March 31, 2019 Chemical Titanium Fluoroproducts Solutions Technologies Total Net sales by geographic region (1) North America $ 288 $ 74 $ 197 $ 559 Asia Pacific 163 16 166 345 Europe, the Middle East, and Africa 186 5 113 304 Latin America (2) 50 39 79 168 Total net sales $ 687 $ 134 $ 555 $ 1,376 Net sales by product group Fluorochemicals $ 349 $ — $ — $ 349 Fluoropolymers 338 — — 338 Mining solutions — 68 — 68 Performance chemicals and intermediates — 66 — 66 Titanium dioxide and other minerals — — 555 555 Total net sales $ 687 $ 134 $ 555 $ 1,376 (1) Net sales are attributed to countries based on customer location. (2) Latin America includes Mexico. 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, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 Accounts receivable - trade, net (1) $ 776 $ 790 Customer rebates 42 79 (1) Accounts receivable - trade, net includes trade notes receivable of $3 and $2 and is net of allowances for doubtful accounts of |
Restructuring, Asset-Related,_2
Restructuring, Asset-Related, and Other Charges (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 for the three months ended March 31, 2019 and 2018. Three Months Ended March 31, 2019 2018 Restructuring and other charges: Employee separation charges $ — $ 3 Decommissioning and other charges 8 7 Total restructuring, asset-related, and other charges $ 8 $ 10 The following table sets forth the impacts of the Company’s restructuring programs to segment earnings for the three months ended March 31, 2019 and 2018. Three Months Ended March 31, 2019 2018 Restructuring and other charges: Plant and product line closures: Chemical Solutions $ — $ 1 Corporate and Other 6 — Total plant and product line closures 6 1 2017 Restructuring Program: Fluoroproducts 1 3 Chemical Solutions — 1 Corporate and Other 1 5 Total 2017 Restructuring Program 2 9 Total restructuring, asset-related, and other charges $ 8 $ 10 |
Schedule of Restructuring Charges | 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, 2019. 2015 Global Restructuring Program 2017 Restructuring Program 2018 Restructuring Program Total Balance at December 31, 2018 $ 1 $ 10 $ 5 $ 16 Credits to income — — (1 ) (1 ) Payments — (9 ) — (9 ) Balance at March 31, 2019 $ 1 $ 1 $ 4 $ 6 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and 2018. Three Months Ended March 31, 2019 2018 Leasing, contract services, and miscellaneous income (1) $ 26 $ 3 Royalty income (2) 5 5 Gain on sales of assets and businesses (3) — 42 Exchange gains, net (4) 6 — Non-operating pension and other post-retirement employee benefit income 3 7 Total other income, net $ 40 $ 57 (1) Leasing, contract services, and miscellaneous income includes European Union fluorinated greenhouse gas quota authorization sales of $24 and $2 for the three months ended March 31, 2019 and 2018, respectively. (2) Royalty income is primarily from technology licensing. (3) 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. (4) Exchange gains, net includes gains and losses on foreign currency forward contracts. |
Earnings Per Share of Common _2
Earnings Per Share of Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the 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, 2019 and 2018. Three Months Ended March 31, 2019 2018 Numerator: Net income attributable to Chemours $ 94 $ 297 Denominator: Weighted-average number of common shares outstanding - basic 167,866,468 182,069,982 Dilutive effect of the Company’s employee compensation plans 4,194,432 6,263,215 Weighted-average number of common shares outstanding - diluted 172,060,900 188,333,197 Basic earnings per share of common stock $ 0.56 $ 1.63 Diluted earnings per share of common stock 0.55 1.58 |
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, 2019 and 2018. Three Months Ended March 31, 2019 2018 Average number of stock options 683,135 — |
Accounts and Notes Receivable_2
Accounts and Notes Receivable, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The following table sets forth the components of the Company’s accounts and notes receivable, net at March 31, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 Accounts receivable - trade, net (1) $ 776 $ 790 VAT, GST, and other taxes (2) 59 56 Other receivables (3) 12 15 Total accounts and notes receivable, net $ 847 $ 861 (1) Accounts receivable - trade, net includes trade notes receivable of $3 and $2 and is net of allowances for doubtful accounts of $5 at March 31, 2019 and December 31, 2018, 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 derivative instruments, advances, and other deposits. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Net [Abstract] | |
Schedule of Inventories | The following table sets forth the components of the Company’s inventories at March 31, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 Finished products $ 724 $ 701 Semi-finished products 206 195 Raw materials, stores, and supplies 514 476 Inventories before LIFO adjustment 1,444 1,372 Less: Adjustment of inventories to LIFO basis (226 ) (225 ) Total inventories $ 1,218 $ 1,147 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 Equipment $ 7,382 $ 7,344 Buildings 918 914 Construction-in-progress 634 579 Land 119 119 Mineral rights 36 36 Property, plant, and equipment 9,089 8,992 Less: Accumulated depreciation (5,710 ) (5,701 ) Total property, plant, and equipment, net $ 3,379 $ 3,291 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Lease Assets and Lease Liabilities and their Balance Sheet Location | The following table sets forth the Company’s lease assets and lease liabilities and their balance sheet location at March 31, 2019. Balance Sheet Location March 31, 2019 Lease assets: Operating lease right-of-use assets Operating lease right-of-use assets $ 323 Finance lease assets Property, plant, and equipment, net 2 Total lease assets $ 325 Lease liabilities: Current: Operating lease liabilities Other accrued liabilities $ 76 Non-current: Operating lease liabilities Operating lease liabilities 265 Finance lease liabilities Long-term debt, net 2 Total non-current lease liabilities 267 Total lease liabilities $ 343 |
Schedule of Components of Company's Lease Cost | The following table sets forth the components of the Company’s lease cost for the three months ended March 31, 2019. Three Months Ended March 31, 2019 Operating lease cost $ 25 Short-term lease cost 1 Variable lease cost 4 Total lease cost $ 30 |
Schedule of Cash Flows Related to Company's Leases | The following table sets forth the cash flows related to the Company’s leases for the three months ended March 31, 2019. Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 25 Non-cash operating lease liabilities activity: Leased assets obtained in exchange for new operating lease liabilities $ 19 |
Schedule of Weighted-Average Term and Weighted-Average Discount Rate For Company's Leases | The following table sets forth the weighted-average term and weighted-average discount rate for the Company’s leases at March 31, 2019. March 31, 2019 Weighted-average remaining lease term (years): Operating leases 8.50 Finance leases 2.80 Weighted-average discount rate: Operating leases 5.10 % Finance leases 4.90 % |
Schedule of Company's Lease Liabilities' Maturities for Next Five Years and Thereafter | The following table sets forth the Company’s lease liabilities’ maturities for the next five years and thereafter. As of March 31, 2019 Operating Leases Finance Leases Total Remainder of 2019 $ 72 $ — $ 72 2020 73 2 75 2021 62 — 62 2022 44 — 44 2023 29 — 29 Thereafter 135 — 135 Total lease payments 415 2 417 Less: Imputed interest 74 — 74 Present value of lease liabilities $ 341 $ 2 $ 343 |
Schedule of Company's Lease Liabilities' Maturities for Next Five Years and Thereafter under Previous Lease Accounting Standard | The following table sets forth the Company’s lease liabilities’ maturities for the next five years and thereafter under the previous lease accounting standard. As of December 31, 2018 Operating Leases Finance Leases Total 2019 $ 92 $ — $ 92 2020 70 2 72 2021 59 — 59 2022 42 — 42 2023 27 — 27 Thereafter 134 — 134 Total lease payments $ 424 $ 2 $ 426 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 Capitalized repair and maintenance costs $ 160 $ 178 Pension assets (1) 183 174 Deferred income taxes 46 46 Miscellaneous 41 39 Total other assets $ 430 $ 437 (1) Pension assets represent the funded status of certain of the Company's long-term employee benefit plans. |
Accounts Payable (Tables)
Accounts Payable (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Payables And Accruals [Abstract] | |
Schedule of Accounts Payable | The following table sets forth the components of the Company’s accounts payable at March 31, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 Trade payables $ 1,010 $ 1,111 VAT and other payables 32 26 Total accounts payable $ 1,042 $ 1,137 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 Compensation and other employee-related costs $ 70 $ 108 Employee separation costs (1) 6 16 Accrued litigation (2) 31 76 Environmental remediation (2) 69 74 Income taxes 63 87 Customer rebates 42 79 Deferred income 7 6 Accrued interest 62 21 Operating lease liabilities (3) 76 — Miscellaneous (4) 91 92 Total other accrued liabilities $ 517 $ 559 (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 19 – Commitments and Contingent Liabilities.” (3) Represents the current portion of the Company’s operating lease liabilities, which is discussed further in “Note 2 – Recent Accounting Pronouncements” and “Note 12 – Leases.” (4) 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, 2019 | |
Debt Disclosure [Abstract] | |
Components of Debt | The following table sets forth the components of the Company’s debt at March 31, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 Senior secured term loans: Tranche B-2 U.S. dollar term loan due May 2025 $ 891 $ 893 Tranche B-2 euro term loan due May 2025 (€347 at March 31, 2019 and December 31, 2018) 391 396 Senior unsecured notes: 6.625% due May 2023 908 908 7.000% due May 2025 750 750 4.000% due May 2026 (€450 at March 31, 2019 and December 31, 2018) 507 513 5.375% due May 2027 500 500 Finance lease liabilities 2 2 Build-to-suit lease obligation 72 55 Total debt 4,021 4,017 Less: Unamortized issue discounts (10 ) (10 ) Less: Unamortized debt issuance costs (33 ) (35 ) Less: Current maturities of long-term debt (13 ) (13 ) Total long-term debt, net $ 3,965 $ 3,959 |
Schedule of Debt Principal Maturities | The following table sets forth the Company’s debt principal maturities for the next five years and thereafter. Year Ended December 31, Remainder of 2019 $ 10 2020 13 2021 13 2022 13 2023 921 Thereafter 2,977 Total principal maturities on senior debt $ 3,947 |
Estimated Fair Values of Senior Debt Issues | The following table sets forth the estimated fair values of the Company’s senior debt issues, which are based on quotes received from third-party brokers, and are classified as Level 2 financial instruments in the fair value hierarchy. March 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Senior secured term loans: Tranche B-2 U.S. dollar term loan due May 2025 $ 891 $ 892 $ 893 $ 862 Tranche B-2 euro term loan due May 2025 (€347 at March 31, 2019 and December 31, 2018) 391 392 396 394 Senior unsecured notes: 6.625% due May 2023 908 942 908 918 7.000% due May 2025 750 793 750 761 4.000% due May 2026 (€450 at March 31, 2019 and December 31, 2018) 507 515 513 487 5.375% due May 2027 500 497 500 454 Total senior debt 3,947 $ 4,031 3,960 $ 3,876 Less: Unamortized issue discounts (10 ) (10 ) Less: Unamortized debt issuance costs (33 ) (35 ) Total senior debt, net $ 3,904 $ 3,915 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Liabilities | The following table sets forth the components of the Company’s other liabilities at March 31, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 Environmental remediation (1) $ 164 $ 152 Employee-related costs (2) 118 130 Accrued litigation (1) 91 53 Asset retirement obligations 50 51 Deferred revenue 6 7 Miscellaneous (3) 66 64 Total other liabilities $ 495 $ 457 (1) The Company’s accrued environmental remediation and accrued litigation liabilities are discussed further in “Note 19 – 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 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock Options Weighted Average Assumptions | The following table sets forth the assumptions used to determine the fair value of the Company’s stock option awards that were granted during the three months ended March 31, 2019. Three Months Ended March 31, 2019 Risk-free interest rate 2.60 % Expected term (years) 6.00 Volatility 48.07 % Dividend yield 2.63 % Fair value per stock option $ 14.40 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Assets and Liabilities At Fair Value | The following table sets forth the fair value of the Company’s derivative assets and liabilities at March 31, 2019 and December 31, 2018. Fair Value Using Level 2 Inputs Balance Sheet Location March 31, 2019 December 31, 2018 Asset derivatives: Foreign currency forward contracts not designated as a hedging instrument Accounts and notes receivable, net $ 1 $ 1 Foreign currency forward contracts designated as a cash flow hedge Accounts and notes receivable, net 3 3 Total asset derivatives $ 4 $ 4 Liability derivatives: Foreign currency forward contracts not designated as a hedging instrument Other accrued liabilities $ 1 $ 1 Total liability derivatives $ 1 $ 1 |
Schedule of Pre-tax Charge the Fair Value of Derivative Assets and Liabilities | The following table sets forth the pre-tax changes in fair value of the Company’s derivative assets and liabilities for the three months ended March 31, 2019 and 2018. Gain (Loss) Recognized In Other Comprehensive Three months ended March 31, Cost of Goods Sold Other Income, Net Income 2019 Foreign currency forward contracts not designated as a hedging instrument $ — $ (2 ) $ — Foreign currency forward contracts designated as a cash flow hedge 3 — 2 Euro-denominated debt designated as a net investment hedge — — 10 2018 Foreign currency forward contracts not designated as a hedging instrument $ — $ 4 $ — Euro-denominated debt designated as a net investment hedge — — (34 ) |
Long-term Employee Benefits (Ta
Long-term Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
General Discussion Of Pension And Other Postretirement Benefits [Abstract] | |
Schedules of Net Periodic Pension (Cost) Income | The following table sets forth the Company’s net periodic pension (cost) income and amounts recognized in other comprehensive income for the three months ended March 31, 2019 and 2018. Three Months Ended March 31, 2019 2018 Service cost $ (3 ) $ (4 ) Interest cost (5 ) (4 ) Expected return on plan assets 13 15 Amortization of actuarial loss (5 ) (4 ) Settlement loss (1 ) — Total net periodic pension (cost) income $ (1 ) $ 3 Amortization of actuarial loss $ 5 $ 4 Settlement loss 1 — Effect of foreign exchange rates 3 (9 ) Total changes in plan assets and benefit obligations recognized in other comprehensive income $ 9 $ (5 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and 2018. Three Months Ended March 31, Fluoroproducts Chemical Solutions Titanium Technologies Corporate and Other Total 2019 Net sales to external customers $ 687 $ 134 $ 555 $ — $ 1,376 Adjusted EBITDA 159 15 126 (38 ) 262 Depreciation and amortization 32 6 30 8 76 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 |
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, 2019 and 2018. Three Months Ended March 31, 2019 2018 Income before income taxes $ 107 $ 381 Interest expense, net 51 52 Depreciation and amortization 76 70 Non-operating pension and other post-retirement employee benefit income (3 ) (7 ) Exchange gains, net (6 ) — Restructuring, asset-related, and other charges (1) 8 10 Gain on sales of assets and businesses (2) — (42 ) Legal charges (3) 29 4 Adjusted EBITDA $ 262 $ 468 (1) Includes restructuring, asset-related, and other charges, which are discussed in further detail in “Note 5 – Restructuring, Asset-related, and Other Charges.” (2) For the three months ended March 31, 2018, the Company recognized a gain of $42 on the sale of its Linden, New Jersey site. (3) Includes litigation settlements, PFOA drinking water treatment accruals, and other legal charges. For the three months ended March 31, 2019, legal charges included $27 in additional charges for the approved final Consent Order associated with certain matters at the Company’s Fayetteville, North Carolina facility, which are discussed in further detail in “Note 19 – Commitments and Contingent Liabilities.” |
Guarantor Condensed Consolida_2
Guarantor Condensed Consolidating Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Adjustments Consolidated Net sales $ — $ 877 $ 898 $ (399 ) $ 1,376 Cost of goods sold — 741 737 (398 ) 1,080 Gross profit — 136 161 (1 ) 296 Selling, general, and administrative expense 8 117 38 (7 ) 156 Research and development expense — 20 2 — 22 Restructuring, asset-related, and other charges — 8 — — 8 Total other operating expenses 8 145 40 (7 ) 186 Equity in earnings of affiliates — — 8 — 8 Equity in earnings (loss) of subsidiaries 127 (2 ) — (125 ) — Interest (expense) income, net (53 ) — 2 — (51 ) Intercompany interest income (expense), net 9 5 (14 ) — — Other income, net 9 34 4 (7 ) 40 Income before income taxes 84 28 121 (126 ) 107 (Benefit from) provision for income taxes (10 ) (1 ) 25 (1 ) 13 Net income 94 29 96 (125 ) 94 Net income attributable to Chemours $ 94 $ 29 $ 96 $ (125 ) $ 94 Comprehensive income attributable to Chemours $ 115 $ 29 $ 110 $ (139 ) $ 115 Condensed Consolidating Statement s 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 — 9 1 — 10 Total other operating 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 Net income attributable to Chemours $ 297 $ 115 $ 200 $ (315 ) $ 297 Comprehensive income attributable to Chemours $ 373 $ 117 $ 299 $ (416 ) $ 373 |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets March 31, 2019 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 115 $ 582 $ — $ 697 Accounts and notes receivable, net — 305 542 — 847 Intercompany receivables 18 967 383 (1,368 ) — Inventories — 581 723 (86 ) 1,218 Prepaid expenses and other — 51 29 5 85 Total current assets 18 2,019 2,259 (1,449 ) 2,847 Property, plant, and equipment — 6,956 2,133 — 9,089 Less: Accumulated depreciation — (4,596 ) (1,114 ) — (5,710 ) Property, plant, and equipment, net — 2,360 1,019 — 3,379 Operating lease right-of-use assets — 300 23 — 323 Goodwill and other intangible assets, net — 165 15 — 180 Investments in affiliates — — 166 — 166 Investments in subsidiaries 4,576 — — (4,576 ) — Intercompany notes receivable 1,150 — — (1,150 ) — Other assets 17 141 281 (9 ) 430 Total assets $ 5,761 $ 4,985 $ 3,763 $ (7,184 ) $ 7,325 Liabilities Current liabilities: Accounts payable $ — $ 603 $ 439 $ — $ 1,042 Current maturities of long-term debt 13 — — — 13 Intercompany payables 970 103 295 (1,368 ) — Other accrued liabilities 68 297 153 (1 ) 517 Total current liabilities 1,051 1,003 887 (1,369 ) 1,572 Long-term debt, net 3,891 74 — — 3,965 Operating lease liabilities — 251 14 — 265 Intercompany notes payable — — 1,150 (1,150 ) — Deferred income taxes 9 135 85 (17 ) 212 Other liabilities — 411 84 — 495 Total liabilities 4,951 1,874 2,220 (2,536 ) 6,509 Commitments and contingent liabilities Equity Total Chemours stockholders’ equity 810 3,111 1,537 (4,648 ) 810 Non-controlling interests — — 6 — 6 Total equity 810 3,111 1,543 (4,648 ) 816 Total liabilities and equity $ 5,761 $ 4,985 $ 3,763 $ (7,184 ) $ 7,325 Condensed Consolidating Balance Sheets December 31, 2018 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 239 $ 962 $ — $ 1,201 Accounts and notes receivable, net — 297 564 — 861 Intercompany receivables 2 1,057 91 (1,150 ) — Inventories — 483 749 (85 ) 1,147 Prepaid expenses and other — 58 26 — 84 Total current assets 2 2,134 2,392 (1,235 ) 3,293 Property, plant, and equipment — 6,870 2,122 — 8,992 Less: Accumulated depreciation — (4,591 ) (1,110 ) — (5,701 ) Property, plant, and equipment, net — 2,279 1,012 — 3,291 Goodwill and other intangible assets, net — 167 14 — 181 Investments in affiliates — — 160 — 160 Investments in subsidiaries 4,487 11 — (4,498 ) — Intercompany notes receivable 1,150 — — (1,150 ) — Other assets 17 154 274 (8 ) 437 Total assets $ 5,656 $ 4,745 $ 3,852 $ (6,891 ) $ 7,362 Liabilities Current liabilities: Accounts payable $ — $ 637 $ 500 $ — $ 1,137 Current maturities of long-term debt 13 — — — 13 Intercompany payables 698 92 360 (1,150 ) — Other accrued liabilities 21 341 198 (1 ) 559 Total current liabilities 732 1,070 1,058 (1,151 ) 1,709 Long-term debt, net 3,902 57 — — 3,959 Intercompany notes payable — — 1,150 (1,150 ) — Deferred income taxes 8 143 82 (16 ) 217 Other liabilities — 372 85 — 457 Total liabilities 4,642 1,642 2,375 (2,317 ) 6,342 Commitments and contingent liabilities Equity Total Chemours stockholders’ equity 1,014 3,103 1,471 (4,574 ) 1,014 Non-controlling interests — — 6 — 6 Total equity 1,014 3,103 1,477 (4,574 ) 1,020 Total liabilities and equity $ 5,656 $ 4,745 $ 3,852 $ (6,891 ) $ 7,362 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2019 Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations and Adjustments Consolidated Cash flows from operating activities Cash provided by (used for) operating activities $ 53 $ (26 ) $ (32 ) $ (39 ) $ (44 ) Cash flows from investing activities Purchases of property, plant, and equipment — (113 ) (20 ) — (133 ) Intercompany investing activities — 16 (279 ) 263 — Foreign exchange contract settlements, net — (1 ) — — (1 ) Cash used for investing activities — (98 ) (299 ) 263 (134 ) Cash flows from financing activities Debt repayments (3 ) — — — (3 ) Purchases of treasury stock, at cost (255 ) — — — (255 ) Intercompany financing activities 271 — (47 ) (224 ) — Proceeds from exercised stock options, net 6 — — — 6 Payments related to tax withholdings on vested stock awards (30 ) — — — (30 ) Payments of dividends (42 ) — — — (42 ) Cash used for financing activities (53 ) — (47 ) (224 ) (324 ) Effect of exchange rate changes on cash and cash equivalents — — (2 ) — (2 ) Decrease in cash and cash equivalents — (124 ) (380 ) — (504 ) Cash and cash equivalents at January 1, — 239 962 — 1,201 Cash and cash equivalents at March 31, $ — $ 115 $ 582 $ — $ 697 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 Payments related to tax withholdings on vested stock awards (1 ) — — — (1 ) Payments 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 January 1, — 761 795 — 1,556 Cash and cash equivalents at March 31, $ — $ 470 $ 964 $ — $ 1,434 |
Background, Description of th_2
Background, Description of the Business, and Basis of Presentation - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of reportable segments | 3 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 323 | |
Operating lease liabilities | 341 | |
ASU 2016-02 [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 333 | |
Operating lease liabilities | $ 349 | |
ASU 2016-02 [Member] | Office Space [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ (16) |
Significant Transaction - Narra
Significant Transaction - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2018USD ($) | Mar. 31, 2016a | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | |
Significant Transaction [Line Items] | ||||
Recognized gain on sale of land | $ 42 | $ 0 | $ 42 | |
Net cash proceeds of transaction | 39 | 0 | 39 | |
Environmental remediation activities amount | $ 3 | $ 15 | $ 11 | |
Linden, New Jersey [Member] | ||||
Significant Transaction [Line Items] | ||||
Number of acre of land for sale | a | 210 |
Net Sales - Summary of Disaggre
Net Sales - Summary of Disaggregation of Net Sales by Geographical Region, Product Group, and Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | $ 1,376 | $ 1,730 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 1,376 | 1,730 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Fluorochemicals [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 349 | 395 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Fluoropolymers [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 338 | 337 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Mining Solutions [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 68 | 66 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Performance Chemicals and Intermediates [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 66 | 78 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Titanium Dioxide and Other Minerals [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 555 | 854 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | North America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 559 | 617 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Asia Pacific [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 345 | 414 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Europe, the Middle East, and Africa [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 304 | 474 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Latin America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 168 | 225 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Fluoroproducts [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 687 | 732 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Fluoroproducts [Member] | Fluorochemicals [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 349 | 395 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Fluoroproducts [Member] | Fluoropolymers [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 338 | 337 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Fluoroproducts [Member] | North America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 288 | 303 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Fluoroproducts [Member] | Asia Pacific [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 163 | 153 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Fluoroproducts [Member] | Europe, the Middle East, and Africa [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 186 | 222 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Fluoroproducts [Member] | Latin America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 50 | 54 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Chemical Solutions [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 134 | 144 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Chemical Solutions [Member] | Mining Solutions [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 68 | 66 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Chemical Solutions [Member] | Performance Chemicals and Intermediates [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 66 | 78 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Chemical Solutions [Member] | North America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 74 | 81 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Chemical Solutions [Member] | Asia Pacific [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 16 | 19 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Chemical Solutions [Member] | Europe, the Middle East, and Africa [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 5 | 5 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Chemical Solutions [Member] | Latin America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 39 | 39 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Titanium Technologies [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 555 | 854 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Titanium Technologies [Member] | Titanium Dioxide and Other Minerals [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 555 | 854 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Titanium Technologies [Member] | North America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 197 | 233 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Titanium Technologies [Member] | Asia Pacific [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 166 | 242 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Titanium Technologies [Member] | Europe, the Middle East, and Africa [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | 113 | 247 |
Topic 606 [Member] | Transferred at a Point in Time [Member] | Titanium Technologies [Member] | Latin America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of Net Sales | $ 79 | $ 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, 2019 | Dec. 31, 2018 |
Disaggregation Of Revenue [Line Items] | ||
Accounts receivable - trade, net | $ 776 | $ 790 |
Customer rebates | $ 42 | $ 79 |
Net Sales - Summary of Contra_2
Net Sales - Summary of Contract Balances from Contracts with Customers (Parenthetical) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Disaggregation Of Revenue [Line Items] | ||
Trade notes receivable | $ 12 | $ 15 |
Allowance for doubtful accounts | 5 | 5 |
Topic 606 [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Trade notes receivable | 3 | 2 |
Allowance for doubtful accounts | $ 5 | $ 5 |
Net Sales - Narrative (Details)
Net Sales - Narrative (Details) - Topic 606 [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Contract asset balances | $ 0 | $ 0 |
Capitalized costs | 0 | $ 0 |
Remaining performance obligations | $ 132,000,000 | |
Revenue, practical expedient, financing component | true |
Net Sales - Narrative (Details1
Net Sales - Narrative (Details1) - Topic 606 [Member] | Mar. 31, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Percentage of remaining performance obligations as revenue | 40.00% |
Remaining performance obligations original expected period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Percentage of remaining performance obligations as revenue | 40.00% |
Remaining performance obligations original expected period | 1 year |
Restructuring, Asset-Related,_3
Restructuring, Asset-Related, and Other Charges - Schedule of Restructuring Program (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring And Related Activities [Abstract] | ||
Employee separation charges | $ 0 | $ 3 |
Decommissioning and other charges | 8 | 7 |
Total restructuring, asset-related, and other charges | $ 8 | $ 10 |
Restructuring, Asset-Related,_4
Restructuring, Asset-Related, and Other Charges - Schedule of Restructuring Programs to Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring, asset-related and other charges | $ 8 | $ 10 |
2017 Restructuring Program [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | 2 | 9 |
Restructuring, asset-related and other charges | 2 | 9 |
Plant and Product Line Closures [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | 6 | 1 |
Operating Segments [Member] | Chemical Solutions [Member] | 2017 Restructuring Program [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | 0 | 1 |
Operating Segments [Member] | Chemical Solutions [Member] | Plant and Product Line Closures [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | 0 | 1 |
Operating Segments [Member] | Fluoroproducts [Member] | 2017 Restructuring Program [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | 1 | 3 |
Corporate and Other [Member] | 2017 Restructuring Program [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | 1 | 5 |
Corporate and Other [Member] | Plant and Product Line Closures [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | $ 6 | $ 0 |
Restructuring, Asset-Related,_5
Restructuring, Asset-Related, and Other Charges - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017Employee | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, asset-related and other charges | $ 8,000,000 | $ 10,000,000 | ||
Employee separation charges | 0 | 3,000,000 | ||
2017 Restructuring Program [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, asset-related and other charges | 2,000,000 | 9,000,000 | ||
Aggregate restructuring costs | 61,000,000 | |||
2018 Restructuring Program [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Employee separation charges | 5,000,000 | |||
Corporate Function Efforts [Member] | 2017 Restructuring Program [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Employee separation and asset related charges | 2,000,000 | 6,000,000 | ||
Voluntary Separation Program [Member] | 2017 Restructuring Program [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of employees to be separated by end of 2018 | Employee | 300 | |||
Accrual of termination benefits recognized | $ 18,000,000 | |||
Voluntary Separation Program One-Time Financial Incentives [Member] | 2017 Restructuring Program [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Accrual of termination benefits recognized | 3,000,000 | |||
Operating Segments [Member] | Niagara Falls, NY [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs, excluding non-cash asset-related charges | 36,000,000 | |||
Operating Segments [Member] | Decommissioning Costs [Member] | Niagara Falls, NY [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, asset-related and other charges | $ 1,000,000 | |||
Operating Segments [Member] | Additional Restructuring Charges [Member] | Niagara Falls, NY [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additional restructuring charges expected to be incurred | 10,000,000 | |||
Corporate and Other [Member] | Decommissioning Costs [Member] | Deepwater, New Jersey [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, asset-related and other charges | 6,000,000 | |||
Corporate and Other [Member] | Additional Restructuring Charges [Member] | Deepwater, New Jersey [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges incurred | 15,000,000 | |||
Corporate and Other [Member] | Additional Restructuring Charges [Member] | Deepwater, New Jersey [Member] | Minimum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additional restructuring charges expected to be incurred | 15,000,000 | |||
Corporate and Other [Member] | Additional Restructuring Charges [Member] | Deepwater, New Jersey [Member] | Maximum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additional restructuring charges expected to be incurred | $ 20,000,000 |
Restructuring, Asset-Related,_6
Restructuring, Asset-Related, and Other Charges - Restructuring Program Schedule (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning | $ 16 | |
Credits to income | $ (1) | |
Payments | (9) | |
Restructuring reserve, ending | 6 | |
2018 Restructuring Program [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning | 5 | |
Credits to income | (1) | |
Payments | 0 | |
Restructuring reserve, ending | 4 | |
2015 Global Restructuring Program [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning | 1 | |
Credits to income | 0 | |
Payments | 0 | |
Restructuring reserve, ending | 1 | |
2017 Restructuring Program [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning | 10 | |
Credits to income | $ 0 | |
Payments | (9) | |
Restructuring reserve, ending | $ 1 |
Other Income, Net - Components
Other Income, Net - Components of Other Income (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Other Income And Expenses [Abstract] | |||
Leasing, contract services and miscellaneous income | $ 26 | $ 3 | |
Royalty income | 5 | 5 | |
Gain on sales of assets and businesses | $ 42 | 0 | 42 |
Exchange gains, net | 6 | 0 | |
Non-operating pension and other post-retirement employee benefit income | 3 | 7 | |
Total other income, net | $ 40 | $ 57 |
Other Income, Net - Component_2
Other Income, Net - Components of Other Income (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Component of Other Income [Line Items] | ||
Leasing, contract services and miscellaneous income | $ 26 | $ 3 |
European Union [Member] | Fluorinated Greenhouse Gas [Member] | ||
Component of Other Income [Line Items] | ||
Leasing, contract services and miscellaneous income | $ 24 | 2 |
Linden, New Jersey Sites [Member] | ||
Component of Other Income [Line Items] | ||
Gain on sale of asset | $ 42 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 13 | $ 84 |
Effective income tax rate | 12.00% | 22.00% |
Income tax benefits related to legal settlements and restructuring costs | $ 9 | |
Income tax expenses related to asset sales | $ 10 | |
Income tax expenses related to impact of tax reform provisions | 8 | |
Income tax benefits related to windfalls on share-based payments | $ 6 | $ 5 |
Earnings Per Share of Common _3
Earnings Per Share of Common Stock - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net income attributable to Chemours | $ 94 | $ 297 |
Denominator: | ||
Weighted-average number of common shares outstanding - basic | 167,866,468 | 182,069,982 |
Dilutive effect of the Company’s employee compensation plans | 4,194,432 | 6,263,215 |
Weighted-average number of common shares outstanding - diluted | 172,060,900 | 188,333,197 |
Basic earnings per share of common stock | $ 0.56 | $ 1.63 |
Diluted earnings per share of common stock | $ 0.55 | $ 1.58 |
Earnings Per Share of Common _4
Earnings Per Share of Common Stock - Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share (Details) | 3 Months Ended |
Mar. 31, 2019shares | |
Earnings Per Share [Abstract] | |
Average number of stock options | 683,135 |
Accounts and Notes Receivable_3
Accounts and Notes Receivable, Net - Schedule of Accounts and Notes Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Accounts receivable - trade, net | $ 776 | $ 790 |
VAT, GST and other taxes | 59 | 56 |
Other receivables | 12 | 15 |
Total accounts and notes receivable, net | $ 847 | $ 861 |
Accounts and Notes Receivable_4
Accounts and Notes Receivable, Net - Schedule of Accounts and Notes Receivable (Parenthetical) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||
Accounts receivable - trade, net | $ 776 | $ 790 |
Allowance for doubtful accounts receivable | 5 | 5 |
Trade Notes Receivable [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accounts receivable - trade, net | $ 3 | $ 2 |
Accounts and Notes Receivable_5
Accounts and Notes Receivable, Net - (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accounts Notes And Loans Receivable [Line Items] | ||
Bad debt expense | $ 1 | |
Maximum [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Bad debt expense | $ 1 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Net [Abstract] | ||
Finished products | $ 724 | $ 701 |
Semi-finished products | 206 | 195 |
Raw materials, stores, and supplies | 514 | 476 |
Inventories before LIFO adjustment | 1,444 | 1,372 |
Less: Adjustment of inventories to LIFO basis | (226) | (225) |
Total inventories | $ 1,218 | $ 1,147 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Net [Abstract] | ||
LIFO inventory amount | $ 694 | $ 622 |
Percentage of LIFO inventory | 48.00% | 45.00% |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment, Net - Summary of Property, Plant, and Equipment, Net (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 9,089 | $ 8,992 |
Less: Accumulated depreciation | (5,710) | (5,701) |
Property, plant, and equipment, net | 3,379 | 3,291 |
Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 7,382 | 7,344 |
Building [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 918 | 914 |
Construction-in-progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 634 | 579 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 119 | 119 |
Mineral rights [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 36 | $ 36 |
Property, Plant, and Equipmen_4
Property, Plant, and Equipment, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 74 | $ 69 | |
Build to suit lease assets | $ 72 | $ 55 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lessee Lease Description [Line Items] | |
Lease agreements initial terms | 12 months |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease term of contract | 18 years |
Total cost associated with the company’s finance leases | $ 1,000,000 |
Total cash flows associated with the company’s finance leases | $ 1,000,000 |
Leases - Schedule of Lease Asse
Leases - Schedule of Lease Assets and Lease Liabilities and their Balance Sheet Location (Details) $ in Millions | Mar. 31, 2019USD ($) |
Lease assets: | |
Operating lease right-of-use assets | $ 323 |
Finance lease assets | $ 2 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet |
Total lease assets | $ 325 |
Current: | |
Operating lease liabilities | $ 76 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent |
Non-current: | |
Operating lease liabilities | $ 265 |
Finance lease liabilities | $ 2 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtNoncurrent |
Total non-current lease liabilities | $ 267 |
Total lease liabilities | $ 343 |
Leases - Schedule of Components
Leases - Schedule of Components of Company's Lease Cost (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 25 |
Short-term lease cost | 1 |
Variable lease cost | 4 |
Total lease cost | $ 30 |
Leases - Schedule of Cash Flows
Leases - Schedule of Cash Flows Related to Company's Leases (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 25 |
Non-cash operating lease liabilities activity: | |
Leased assets obtained in exchange for new operating lease liabilities | $ 19 |
Leases - Schedule of Weighted-A
Leases - Schedule of Weighted-Average Term and Weighted-Average Discount Rate For Company's Leases (Details) | Mar. 31, 2019 |
Weighted-average remaining lease term (years): | |
Operating leases | 8 years 6 months |
Finance leases | 2 years 9 months 18 days |
Weighted-average discount rate: | |
Operating leases | 5.10% |
Finance leases | 4.90% |
Leases - Schedule of Company's
Leases - Schedule of Company's Lease Liabilities' Maturities For Next Five Years and Thereafter (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Operating Leases | ||
Remainder of 2019 | $ 72 | |
2020 | 73 | |
2021 | 62 | |
2022 | 44 | |
2023 | 29 | |
Thereafter | 135 | |
Total lease payments | 415 | |
Less: Imputed interest | 74 | |
Present value of lease liabilities | 341 | |
Finance Leases | ||
2020 | 2 | |
Total lease payments | 2 | |
Present value of lease liabilities | 2 | $ 2 |
Operating and Finance Leases, Total | ||
Remainder of 2019 | 72 | |
2020 | 75 | |
2021 | 62 | |
2022 | 44 | |
2023 | 29 | |
Thereafter | 135 | |
Total lease payments | 417 | |
Less: Imputed interest | 74 | |
Present value of lease liabilities | $ 343 |
Leases - Schedule of Company'_2
Leases - Schedule of Company's Lease Liabilities' Maturities For Next Five Years and Thereafter under Previous Lease Accounting Standard (Details) $ in Millions | Dec. 31, 2018USD ($) |
Operating Leases | |
2019 | $ 92 |
2020 | 70 |
2021 | 59 |
2022 | 42 |
2023 | 27 |
Thereafter | 134 |
Total lease payments | 424 |
Finance Leases | |
2020 | 2 |
Total lease payments | 2 |
Operating and Finance Leases, Total | |
2019 | 92 |
2020 | 72 |
2021 | 59 |
2022 | 42 |
2023 | 27 |
Thereafter | 134 |
Total lease payments | $ 426 |
Leases - Build-to-suit Lease Ob
Leases - Build-to-suit Lease Obligation - Narrative (Details) - Discovery Hub [Member] $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Oct. 31, 2017ft² | |
Lessee Lease Description [Line Items] | |||
Build to suit lease area of land | ft² | 312,000 | ||
Build to suit lease project costs paid by third party owner lessor | $ | $ 72 | $ 55 |
Investments in Affiliates - Nar
Investments in Affiliates - Narrative (Details) - Equity Method Investee [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Investments in Affiliates | ||
Net sales | $ 32 | $ 27 |
Purchases | 44 | 37 |
Dividends | $ 1 | $ 30 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets - (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Capitalized repair and maintenance costs | $ 160 | $ 178 |
Pension assets | 183 | 174 |
Deferred income taxes | 46 | 46 |
Miscellaneous | 41 | 39 |
Total other assets | $ 430 | $ 437 |
Accounts Payable - Schedule of
Accounts Payable - Schedule of Accounts Payable (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Trade payables | $ 1,010 | $ 1,111 |
VAT and other payables | 32 | 26 |
Total accounts payable | $ 1,042 | $ 1,137 |
Other Accrued Liabilities - Sch
Other Accrued Liabilities - Schedule of Other Accrued Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Accrued Liabilities, Current [Abstract] | ||
Compensation and other employee-related costs | $ 70 | $ 108 |
Employee separation costs | 6 | 16 |
Accrued litigation | 31 | 76 |
Environmental remediation | 69 | 74 |
Income taxes | 63 | 87 |
Customer rebates | 42 | 79 |
Deferred income | 7 | 6 |
Accrued interest | 62 | 21 |
Operating lease liabilities | 76 | |
Miscellaneous | 91 | 92 |
Total other accrued liabilities | $ 517 | $ 559 |
Debt - Components of Debt (Deta
Debt - Components of Debt (Details) € in Millions, $ in Millions | Mar. 31, 2019USD ($) | Mar. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) |
Debt Instrument [Line Items] | ||||
Finance lease liabilities | $ 2 | $ 2 | ||
Build-to-suit lease obligation | 72 | 55 | ||
Total debt | 4,021 | 4,017 | ||
Less: Unamortized issue discounts | (10) | (10) | ||
Less: Unamortized debt issuance costs | (33) | (35) | ||
Less: Current maturities of long-term debt | (13) | (13) | ||
Total long-term debt, net | 3,965 | 3,959 | ||
Senior unsecured notes [Member] | 6.625% Senior Notes Due May 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 908 | 908 | ||
Senior unsecured notes [Member] | 7.000% Senior Notes Due May 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 750 | 750 | ||
Senior unsecured notes [Member] | 4.000% Senior Notes Due May 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 507 | € 450 | 513 | € 450 |
Senior unsecured notes [Member] | 5.375% Senior Notes Due May 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 500 | 500 | ||
Senior Secured Tranche B-2 U.S Dollar Term Loan Due May 2025 [Member] | Senior unsecured notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 891 | 893 | ||
Senior Secured Tranche B-2 Euro Term Loan Due May 2025 [Member] | Senior unsecured notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 391 | € 347 | $ 396 | € 347 |
Debt - Components of Debt (Pare
Debt - Components of Debt (Parenthetical) (Details) - Senior unsecured notes [Member] € in Millions, $ in Millions | Mar. 31, 2019USD ($) | Mar. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) |
Senior Secured Tranche B-2 Euro Term Loan Due May 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 391 | € 347 | $ 396 | € 347 |
6.625% Senior Notes Due May 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 908 | $ 908 | ||
Debt instrument interest rate | 6.625% | 6.625% | 6.625% | 6.625% |
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% |
4.000% Senior Notes Due May 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 507 | € 450 | $ 513 | € 450 |
Debt instrument interest rate | 4.00% | 4.00% | 4.00% | 4.00% |
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% |
Debt - Senior Secured Credit Fa
Debt - Senior Secured Credit Facilities - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Senior Secured Term Loan Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt instrument term | 7 years | |
Senior Secured Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt instrument term | 5 years | |
Line of credit facility, maximum borrowing capacity | $ 800,000,000 | |
Commitment fee percentage | 0.10% | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term debt | $ 0 | $ 0 |
Letters of credit outstanding | $ 103,000,000 | $ 104,000,000 |
Dollar Term Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Effective interest rates on senior secured term loan | 4.25% | |
Euro Term Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Effective interest rates on senior secured term loan | 2.50% |
Debt - Maturities and Fair Valu
Debt - Maturities and Fair Value - Narrative (Details) | Apr. 03, 2018 | Mar. 31, 2019 | Dec. 31, 2018 |
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 Secured Term Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 1.00% | ||
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% |
Debt - Schedule of Debt Princip
Debt - Schedule of Debt Principal Maturities (Details) - Senior Secured Revolving Credit Facility [Member] $ in Millions | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |
Remainder of 2019 | $ 10 |
2020 | 13 |
2021 | 13 |
2022 | 13 |
2023 | 921 |
Thereafter | 2,977 |
Total principal maturities on senior debt | $ 3,947 |
Debt - Estimated Fair Values of
Debt - Estimated Fair Values of Senior Debt Issues (Details) € in Millions, $ in Millions | Mar. 31, 2019USD ($) | Mar. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) |
Debt Instrument [Line Items] | ||||
Less: Unamortized issue discounts | $ (10) | $ (10) | ||
Less: Unamortized debt issuance costs | (33) | (35) | ||
Senior unsecured notes [Member] | Senior Secured Tranche B-2 U.S Dollar Term Loan Due May 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total senior debt, Carrying Value | 891 | 893 | ||
Senior unsecured notes [Member] | Senior Secured Tranche B-2 Euro Term Loan Due May 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total senior debt, Carrying Value | 391 | € 347 | 396 | € 347 |
6.625% Senior Notes Due May 2023 [Member] | Senior unsecured notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Total senior debt, Carrying Value | 908 | 908 | ||
7.000% Senior Notes Due May 2025 [Member] | Senior unsecured notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Total senior debt, Carrying Value | 750 | 750 | ||
4.000% Senior Notes Due May 2026 [Member] | Senior unsecured notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Total senior debt, Carrying Value | 507 | € 450 | 513 | € 450 |
5.375% Senior Notes Due May 2027 [Member] | Senior unsecured notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Total senior debt, Carrying Value | 500 | 500 | ||
Level 2 [Member] | Senior unsecured notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior debt, Fair Value | 4,031 | 3,876 | ||
Total senior debt, net | 3,904 | 3,915 | ||
Less: Unamortized issue discounts | (10) | (10) | ||
Less: Unamortized debt issuance costs | (33) | (35) | ||
Level 2 [Member] | Senior unsecured notes [Member] | Senior Debt Obligations [Member] | ||||
Debt Instrument [Line Items] | ||||
Total senior debt, Carrying Value | 3,947 | 3,960 | ||
Level 2 [Member] | Senior unsecured notes [Member] | Senior Secured Tranche B-2 U.S Dollar Term Loan Due May 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total senior debt, Carrying Value | 891 | 893 | ||
Senior debt, Fair Value | 892 | 862 | ||
Level 2 [Member] | Senior unsecured notes [Member] | Senior Secured Tranche B-2 Euro Term Loan Due May 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total senior debt, Carrying Value | 391 | 396 | ||
Senior debt, Fair Value | 392 | 394 | ||
Level 2 [Member] | 6.625% Senior Notes Due May 2023 [Member] | Senior unsecured notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Total senior debt, Carrying Value | 908 | 908 | ||
Senior debt, Fair Value | 942 | 918 | ||
Level 2 [Member] | 7.000% Senior Notes Due May 2025 [Member] | Senior unsecured notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Total senior debt, Carrying Value | 750 | 750 | ||
Senior debt, Fair Value | 793 | 761 | ||
Level 2 [Member] | 4.000% Senior Notes Due May 2026 [Member] | Senior unsecured notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Total senior debt, Carrying Value | 507 | 513 | ||
Senior debt, Fair Value | 515 | 487 | ||
Level 2 [Member] | 5.375% Senior Notes Due May 2027 [Member] | Senior unsecured notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Total senior debt, Carrying Value | 500 | 500 | ||
Senior debt, Fair Value | $ 497 | $ 454 |
Debt - Estimated Fair Values _2
Debt - Estimated Fair Values of Senior Debt Issues (Parenthetical) (Details) - Senior unsecured notes [Member] € in Millions, $ in Millions | Mar. 31, 2019USD ($) | Mar. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) |
6.625% Senior Notes Due May 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 908 | $ 908 | ||
Debt instrument interest rate | 6.625% | 6.625% | 6.625% | 6.625% |
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% |
4.000% Senior Notes Due May 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 507 | € 450 | $ 513 | € 450 |
Debt instrument interest rate | 4.00% | 4.00% | 4.00% | 4.00% |
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-2 Euro Term Loan Due May 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 391 | € 347 | $ 396 | € 347 |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Other Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Noncurrent [Abstract] | ||
Environmental remediation | $ 164 | $ 152 |
Employee-related costs | 118 | 130 |
Accrued litigation | 91 | 53 |
Asset retirement obligations | 50 | 51 |
Deferred revenue | 6 | 7 |
Miscellaneous | 66 | 64 |
Total other liabilities | $ 495 | $ 457 |
Other Liabilities - Schedule _2
Other Liabilities - Schedule of Other Liabilities (Parenthetical) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Noncurrent [Abstract] | ||
Accrued indemnification liability | $ 46 | $ 46 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities - Litigation - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($)lawsuitwater_district | Mar. 31, 2017USD ($) | Dec. 31, 2004resident | Dec. 31, 2018USD ($)lawsuit | |
Loss Contingencies [Line Items] | ||||
Accrued environmental liability | $ 233,000,000 | $ 226,000,000 | ||
Accrued litigation | 91,000,000 | $ 53,000,000 | ||
Maximum [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, potential additional loss | 450,000,000 | |||
Funding for medical monitoring program [Member] | ||||
Loss Contingencies [Line Items] | ||||
Escrow deposit disbursements | $ 1,600,000 | |||
MDL Settlement [Member] | ||||
Loss Contingencies [Line Items] | ||||
Date of Agreement | Mar. 31, 2017 | |||
Total settlement amount | $ 670,700,000 | |||
PFOA MDL Settlement [Member] | ||||
Loss Contingencies [Line Items] | ||||
Lawsuits alleging personal injury - Filed | lawsuit | 54 | |||
Benzene Related Illness [Member] | ||||
Loss Contingencies [Line Items] | ||||
Lawsuits alleging illness | lawsuit | 21 | 19 | ||
PFOA Matters [Member] | ||||
Loss Contingencies [Line Items] | ||||
Accrual balance | $ 22,000,000 | $ 22,000,000 | ||
Number of lawsuits filed | lawsuit | 4 | |||
Cost of preparation of natural resource damage assessment plan and access to related documents | $ 100,000 | |||
Civil penalty and investigative costs | 13,000,000 | |||
Additional accrued environmental liability | 27,000,000 | |||
Accrued environmental liability | 83,000,000 | |||
Accrued litigation | 58,000,000 | |||
PFOA Matters [Member] | Maximum [Member] | ||||
Loss Contingencies [Line Items] | ||||
Settlement payments | $ 25,000,000 | |||
Period of payments | 5 years | |||
PFOA Matters: Drinking Water Actions [Member] | ||||
Loss Contingencies [Line Items] | ||||
Accrual balance | $ 22,000,000 | $ 22,000,000 | ||
Binding settlement agreement, class size | resident | 80,000 | |||
Number of water districts Company must provide treatment | water_district | 6 | |||
PFOA Matters: Drinking Water Actions [Member] | Funding for medical monitoring program [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, potential additional loss | $ 235,000,000 | |||
PFOA Matters: Additional Actions [Member] | ||||
Loss Contingencies [Line Items] | ||||
Lawsuits alleging personal injury - Filed | lawsuit | 3,500 | |||
DuPont [Member] | ||||
Loss Contingencies [Line Items] | ||||
Lawsuits alleging illness | lawsuit | 51 | |||
DuPont [Member] | Maximum [Member] | ||||
Loss Contingencies [Line Items] | ||||
Settlement payments | $ 25,000,000 | |||
DuPont [Member] | Business Seeking to Recover Losses [Member] | ||||
Loss Contingencies [Line Items] | ||||
Lawsuits alleging illness | lawsuit | 2 | |||
PFAS Matters [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of lawsuits filed | lawsuit | 4 | |||
Asbestos Issue [Member] | ||||
Loss Contingencies [Line Items] | ||||
Lawsuits alleging personal injury - Filed | lawsuit | 1,300 | 1,300 | ||
Accrual balance | $ 37,000,000 | $ 37,000,000 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Environmental - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Environmental Remediation [Line Items] | ||||
Accrual for environmental remediation activities | $ 233 | $ 226 | ||
Environmental remediation activities amount | $ 3 | $ 15 | $ 11 | |
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 | $ 450 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) | May 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Feb. 13, 2019 | Dec. 31, 2018 | Aug. 01, 2018 | Nov. 30, 2017 |
Equity Class Of Treasury Stock [Line Items] | |||||||
Purchase of additional common stock value under the share repurchase program | $ 261,000,000 | $ 245,000,000 | |||||
Purchase of common stock value under the share repurchase program | $ 1,011,000,000 | $ 750,000,000 | |||||
Common Stock [Member] | 2017 Share Repurchase Program [Member] | |||||||
Equity Class Of Treasury Stock [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 500,000,000 | ||||||
Stock repurchase program effective date | Nov. 30, 2017 | ||||||
Average share price | $ 49.58 | ||||||
Purchase of common stock under the share repurchase program | 10,085,647 | ||||||
Common Stock [Member] | 2017 Share Repurchase Program [Member] | Maximum [Member] | |||||||
Equity Class Of Treasury Stock [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 500,000,000 | ||||||
Common Stock [Member] | 2018 Share Repurchase Program [Member] | |||||||
Equity Class Of Treasury Stock [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 1,000,000,000 | ||||||
Stock repurchase program effective date | Aug. 1, 2018 | ||||||
Average share price | $ 37.47 | ||||||
Purchase of common stock under the share repurchase program | 13,628,859 | ||||||
Stock repurchase program expiration date | Dec. 31, 2020 | ||||||
Purchase of additional common stock under the share repurchase program | 7,278,002 | ||||||
Purchase of additional common stock value under the share repurchase program | $ 261,000,000 | ||||||
Average share price during the period | $ 35.87 | ||||||
Purchase of common stock value under the share repurchase program | $ 511,000,000 | ||||||
Remaining available amount of common stock under the share repurchase program | $ 489,000,000 | ||||||
Common Stock [Member] | 2018 Share Repurchase Program [Member] | Maximum [Member] | |||||||
Equity Class Of Treasury Stock [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 750,000,000 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) $ in Millions | Jan. 26, 2017USD ($)Periodshares | Mar. 31, 2019USD ($)shares | Mar. 31, 2018USD ($) |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ | $ 8 | $ 9 | |
Stock Option [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ | $ 4 | 5 | |
Number of shares granted | 760,000 | ||
Expiration period | 10 years | ||
Stock-based compensation award vesting period | 3 years | ||
Stock options outstanding | 6,980,000 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ | $ 2 | 2 | |
Stock-based compensation award vesting period | 3 years | ||
Shares issued upon conversion of equity award | 1 | ||
Number of shares non-vested | 270,000 | ||
Restricted Stock Units (RSUs) [Member] | Employees and Non-Employee Directors [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares granted | 150,000 | ||
Performance Share Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ | $ 2 | $ 2 | |
Stock-based compensation award vesting period | 3 years | ||
Number of shares granted | 200,000 | ||
Shares issued upon conversion of equity award | 1 | ||
Number of shares non-vested | 540,000 | ||
Percentage of target award available for grant | 100.00% | ||
Number of common stock shares reserved for issuance | 7,000,000 | ||
Consecutive offering periods | 12 months | ||
Number of purchase periods in offer period | Period | 2 | ||
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, Share | 25,000 | ||
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 | 250.00% | ||
Performance Share Units [Member] | Chemours Company Equity and Incentive Plan (the “Prior Plan”) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares granted | 1,520,000 | ||
Number of non-issued shares cancelled | 680,000 |
Stock-based Compensation - Weig
Stock-based Compensation - Weighted Average Assumptions of Stock Option (Details) - Stock Option [Member] | 3 Months Ended |
Mar. 31, 2019$ / shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Risk-free interest rate | 2.60% |
Expected term (years) | 6 years |
Volatility | 48.07% |
Dividend yield | 2.63% |
Fair value per stock option | $ 14.40 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2019USD ($)contract | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($)contract | |
Derivative [Line Items] | |||
Recognized gains (loss) on derivative cash flow hedge, pre-tax | $ 2,000,000 | $ 0 | |
Designated as Hedging Instrument [Member] | Net Investment Hedge [Member] | |||
Derivative [Line Items] | |||
Recognized gain (loss) on derivative net investment hedge, pre-tax | 10,000,000 | (34,000,000) | |
Reclassification on derivative net investment hedge, pre-tax | $ 0 | 0 | |
Foreign currency forward contracts [Member] | |||
Derivative [Line Items] | |||
Number of forward exchange currency contracts | contract | 15 | 20 | |
Derivative notional value | $ 424,000,000 | $ 503,000,000 | |
Foreign currency forward contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Income (Expense), Net [Member] | |||
Derivative [Line Items] | |||
Derivative gains (losses) | (2,000,000) | 4,000,000 | |
Gain reclassification to cost of goods sold on derivative cash flow hedge | $ (2,000,000) | $ 4,000,000 | |
Foreign currency forward contracts [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedge [Member] | |||
Derivative [Line Items] | |||
Number of forward exchange currency contracts | contract | 95 | 75 | |
Derivative notional value | $ 158,000,000 | $ 143,000,000 | |
Recognized gains (loss) on derivative cash flow hedge, pre-tax | 2,000,000 | ||
Derivative cash flow hedge gain from accumulated other comprehensive loss to cost of goods sold to be reclassified with in twelve months | 5,000,000 | ||
Foreign currency forward contracts [Member] | Designated as Hedging Instrument [Member] | Cost of Goods Sold [Member] | Cash Flow Hedge [Member] | |||
Derivative [Line Items] | |||
Gain reclassification to cost of goods sold on derivative cash flow hedge | $ 3,000,000 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Derivative Assets and Liabilities At Fair Value (Details) - Fair Value, Measurements, Recurring [Member] - Level 2 [Member] - Foreign currency forward contracts [Member] - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | $ 4 | $ 4 |
Liability derivatives | 1 | 1 |
Not Designated as Hedging Instrument [Member] | Accounts and notes receivable - trade, net [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 1 | 1 |
Not Designated as Hedging Instrument [Member] | Other accrued liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | 1 | 1 |
Cash Flow Hedge [Member] | Designated as Hedging Instrument [Member] | Accounts and notes receivable - trade, net [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | $ 3 | $ 3 |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Pre-tax Charge the Fair Value of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivatives, Fair Value [Line Items] | ||
Gain (Loss) Recognized In Other Comprehensive Income | $ 10 | $ (34) |
Foreign currency forward contracts [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedge [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gain (Loss) Recognized In Other Comprehensive Income | 2 | |
Euro-denominated debt [Member] | Designated as Hedging Instrument [Member] | Net Investment Hedge [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gain (Loss) Recognized In Other Comprehensive Income | 10 | (34) |
Cost of Goods Sold [Member] | Foreign currency forward contracts [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedge [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gain (Loss) Recognized In Derivative Instruments | 3 | |
Other Income (Expense), Net [Member] | Foreign currency forward contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gain (Loss) Recognized In Derivative Instruments | $ (2) | $ 4 |
Long-term Employee Benefits (Sc
Long-term Employee Benefits (Schedule of Net Periodic Pension (Cost) Income and Amounts Recognized in Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Total net periodic pension (cost) income | $ (1) | $ 3 |
Amortization of actuarial loss, pre-tax | 5 | 4 |
Effect of foreign exchange rates, pre-tax | 3 | (9) |
Total changes in plan assets and benefit obligations recognized in other comprehensive income | 9 | (5) |
Pension Plan [Member] | Foreign [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | (3) | (4) |
Interest cost | (5) | (4) |
Expected return on plan assets | 13 | 15 |
Amortization of actuarial loss | (5) | (4) |
Settlement loss | (1) | |
Total net periodic pension (cost) income | (1) | 3 |
Amortization of actuarial loss, pre-tax | 5 | 4 |
Settlement loss | 1 | |
Effect of foreign exchange rates, pre-tax | 3 | (9) |
Total changes in plan assets and benefit obligations recognized in other comprehensive income | $ 9 | $ (5) |
Long-term Employee Benefits (Na
Long-term Employee Benefits (Narrative) (Details) - Defined Benefit Pension Plan [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions by employer | $ 6 | $ 4 |
Estimated future employer contributions in current fiscal year | $ 11 |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,376 | $ 1,730 |
Adjusted EBITDA | 262 | 468 |
Depreciation and amortization | 76 | 70 |
Operating Segments [Member] | Fluoroproducts [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 687 | 732 |
Adjusted EBITDA | 159 | 206 |
Depreciation and amortization | 32 | 28 |
Operating Segments [Member] | Chemical Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 134 | 144 |
Adjusted EBITDA | 15 | 11 |
Depreciation and amortization | 6 | 5 |
Operating Segments [Member] | Titanium Technologies [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 555 | 854 |
Adjusted EBITDA | 126 | 294 |
Depreciation and amortization | 30 | 30 |
Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | (38) | (43) |
Depreciation and amortization | $ 8 | $ 7 |
Segment Information - Reconcili
Segment Information - Reconciliation of EBITDA from Segments to Consolidated Net Income Before Income Taxes (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting [Abstract] | |||
Income before income taxes | $ 107 | $ 381 | |
Interest expense, net | 51 | 52 | |
Depreciation and amortization | 76 | 70 | |
Non-operating pension and other post-retirement employee benefit income | (3) | (7) | |
Exchange gains, net | (6) | 0 | |
Restructuring, asset-related, and other charges | 8 | 10 | |
Gain on sales of assets and businesses | $ (42) | 0 | (42) |
Legal charges | 29 | 4 | |
Adjusted EBITDA | $ 262 | $ 468 |
Segment Information - Reconci_2
Segment Information - Reconciliation of EBITDA from Segments to Consolidated Net Income Before Income Taxes (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Legal charges | $ 29 | $ 4 |
GenX and Other Perfluorinated and Polyfluorinated Compounds [Member] | ||
Segment Reporting Information [Line Items] | ||
Legal charges | $ 27 | |
Linden, New Jersey Site [Member] | ||
Segment Reporting Information [Line Items] | ||
Gain on sale of asset | $ 42 |
Subsequent Event - Narrative (D
Subsequent Event - Narrative (Details) - USD ($) | May 03, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | |||
Purchase of common stock value under the share repurchase program | $ 1,011,000,000 | $ 750,000,000 | |
Common Stock [Member] | 2018 Share Repurchase Program [Member] | |||
Subsequent Event [Line Items] | |||
Repurchase of common stock shares under the share repurchase program | 13,628,859 | ||
Purchase of common stock value under the share repurchase program | $ 511,000,000 | ||
Average share price | $ 37.47 | ||
Subsequent Event [Member] | Common Stock [Member] | 2018 Share Repurchase Program [Member] | |||
Subsequent Event [Line Items] | |||
Repurchase of common stock shares under the share repurchase program | 1,387,241 | ||
Purchase of common stock value under the share repurchase program | $ 53,000,000 | ||
Average share price | $ 38.51 |
Guarantor Condensed Consolida_3
Guarantor Condensed Consolidating Financial Information - Narrative (Details) - Senior unsecured notes [Member] | Mar. 31, 2019 | Dec. 31, 2018 |
6.625% Senior Notes Due May 2023 [Member] | ||
Condensed Financial Statements Captions [Line Items] | ||
Debt instrument interest rate | 6.625% | 6.625% |
7.000% Senior Notes Due May 2025 [Member] | ||
Condensed Financial Statements Captions [Line Items] | ||
Debt instrument interest rate | 7.00% | 7.00% |
4.000% Senior Notes Due May 2026 [Member] | ||
Condensed Financial Statements Captions [Line Items] | ||
Debt instrument interest rate | 4.00% | 4.00% |
5.375% Senior Notes Due May 2027 [Member] | ||
Condensed Financial Statements Captions [Line Items] | ||
Debt instrument interest rate | 5.375% | 5.375% |
Guarantor Condensed Consolida_4
Guarantor Condensed Consolidating Financial Information - Condensed Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||
Net sales | $ 1,376 | $ 1,730 |
Cost of goods sold | 1,080 | 1,193 |
Gross profit | 296 | 537 |
Selling, general, and administrative expense | 156 | 143 |
Research and development expense | 22 | 20 |
Restructuring, asset-related, and other charges | 8 | 10 |
Total other operating expenses | 186 | 173 |
Equity in earnings of affiliates | 8 | 12 |
Equity in earnings (loss) of subsidiaries | 0 | 0 |
Interest (expense) income, net | (51) | (52) |
Intercompany interest income (expense), net | 0 | 0 |
Other income (expense), net | 40 | 57 |
Income before income taxes | 107 | 381 |
(Benefit from) provision for income taxes | 13 | 84 |
Net income | 94 | 297 |
Net income attributable to Chemours | 94 | 297 |
Comprehensive income attributable to Chemours | 115 | 373 |
Eliminations and Adjustments [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net sales | (399) | (461) |
Cost of goods sold | (398) | (476) |
Gross profit | (1) | 15 |
Selling, general, and administrative expense | (7) | (9) |
Research and development expense | 0 | 0 |
Restructuring, asset-related, and other charges | 0 | 0 |
Total other operating expenses | (7) | (9) |
Equity in earnings of affiliates | 0 | 0 |
Equity in earnings (loss) of subsidiaries | (125) | (331) |
Interest (expense) income, net | 0 | 0 |
Intercompany interest income (expense), net | 0 | 0 |
Other income (expense), net | (7) | (9) |
Income before income taxes | (126) | (316) |
(Benefit from) provision for income taxes | (1) | (1) |
Net income | (125) | (315) |
Net income attributable to Chemours | (125) | (315) |
Comprehensive income attributable to Chemours | (139) | (416) |
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 | 8 | 10 |
Research and development expense | 0 | 0 |
Restructuring, asset-related, and other charges | 0 | 0 |
Total other operating expenses | 8 | 10 |
Equity in earnings of affiliates | 0 | 0 |
Equity in earnings (loss) of subsidiaries | 127 | 331 |
Interest (expense) income, net | (53) | (56) |
Intercompany interest income (expense), net | 9 | 13 |
Other income (expense), net | 9 | 9 |
Income before income taxes | 84 | 287 |
(Benefit from) provision for income taxes | (10) | (10) |
Net income | 94 | 297 |
Net income attributable to Chemours | 94 | 297 |
Comprehensive income attributable to Chemours | 115 | 373 |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net sales | 877 | 1,017 |
Cost of goods sold | 741 | 798 |
Gross profit | 136 | 219 |
Selling, general, and administrative expense | 117 | 102 |
Research and development expense | 20 | 19 |
Restructuring, asset-related, and other charges | 8 | 9 |
Total other operating expenses | 145 | 130 |
Equity in earnings of affiliates | 0 | 0 |
Equity in earnings (loss) of subsidiaries | (2) | 0 |
Interest (expense) income, net | 0 | 2 |
Intercompany interest income (expense), net | 5 | 1 |
Other income (expense), net | 34 | 73 |
Income before income taxes | 28 | 165 |
(Benefit from) provision for income taxes | (1) | 50 |
Net income | 29 | 115 |
Net income attributable to Chemours | 29 | 115 |
Comprehensive income attributable to Chemours | 29 | 117 |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net sales | 898 | 1,174 |
Cost of goods sold | 737 | 871 |
Gross profit | 161 | 303 |
Selling, general, and administrative expense | 38 | 40 |
Research and development expense | 2 | 1 |
Restructuring, asset-related, and other charges | 0 | 1 |
Total other operating expenses | 40 | 42 |
Equity in earnings of affiliates | 8 | 12 |
Equity in earnings (loss) of subsidiaries | 0 | 0 |
Interest (expense) income, net | 2 | 2 |
Intercompany interest income (expense), net | (14) | (14) |
Other income (expense), net | 4 | (16) |
Income before income taxes | 121 | 245 |
(Benefit from) provision for income taxes | 25 | 45 |
Net income | 96 | 200 |
Net income attributable to Chemours | 96 | 200 |
Comprehensive income attributable to Chemours | $ 110 | $ 299 |
Guarantor Condensed Consolida_5
Guarantor Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||||
Cash and cash equivalents | $ 697 | $ 1,201 | $ 1,434 | $ 1,556 |
Accounts and notes receivable, net | 847 | 861 | ||
Intercompany receivables | 0 | 0 | ||
Inventories | 1,218 | 1,147 | ||
Prepaid expenses and other | 85 | 84 | ||
Total current assets | 2,847 | 3,293 | ||
Property, plant, and equipment | 9,089 | 8,992 | ||
Less: Accumulated depreciation | (5,710) | (5,701) | ||
Property, plant, and equipment, net | 3,379 | 3,291 | ||
Operating lease right-of-use assets | 323 | |||
Goodwill and other intangible assets, net | 180 | 181 | ||
Investments in affiliates | 166 | 160 | ||
Investments in subsidiaries | 0 | 0 | ||
Intercompany notes receivable | 0 | 0 | ||
Other assets | 430 | 437 | ||
Total assets | 7,325 | 7,362 | ||
Current liabilities: | ||||
Accounts payable | 1,042 | 1,137 | ||
Current maturities of long-term debt | 13 | 13 | ||
Intercompany payables | 0 | 0 | ||
Other accrued liabilities | 517 | 559 | ||
Total current liabilities | 1,572 | 1,709 | ||
Long-term debt, net | 3,965 | 3,959 | ||
Operating lease liabilities | 265 | |||
Intercompany notes payable | 0 | 0 | ||
Deferred income taxes | 212 | 217 | ||
Other liabilities | 495 | 457 | ||
Total liabilities | 6,509 | 6,342 | ||
Commitments and contingent liabilities | ||||
Equity | ||||
Total Chemours stockholders’ equity | 810 | 1,014 | ||
Non-controlling interests | 6 | 6 | ||
Total equity | 816 | 1,020 | 1,002 | 865 |
Total liabilities and equity | 7,325 | 7,362 | ||
Eliminations and Adjustments [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts and notes receivable, net | 0 | 0 | ||
Intercompany receivables | (1,368) | (1,150) | ||
Inventories | (86) | (85) | ||
Prepaid expenses and other | 5 | 0 | ||
Total current assets | (1,449) | (1,235) | ||
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 | ||
Investments in subsidiaries | (4,576) | (4,498) | ||
Intercompany notes receivable | (1,150) | (1,150) | ||
Other assets | (9) | (8) | ||
Total assets | (7,184) | (6,891) | ||
Current liabilities: | ||||
Accounts payable | 0 | 0 | ||
Current maturities of long-term debt | 0 | 0 | ||
Intercompany payables | (1,368) | (1,150) | ||
Other accrued liabilities | (1) | (1) | ||
Total current liabilities | (1,369) | (1,151) | ||
Long-term debt, net | 0 | 0 | ||
Operating lease liabilities | 0 | |||
Intercompany notes payable | (1,150) | (1,150) | ||
Deferred income taxes | (17) | (16) | ||
Other liabilities | 0 | 0 | ||
Total liabilities | (2,536) | (2,317) | ||
Commitments and contingent liabilities | ||||
Equity | ||||
Total Chemours stockholders’ equity | (4,648) | (4,574) | ||
Non-controlling interests | 0 | 0 | ||
Total equity | (4,648) | (4,574) | ||
Total liabilities and equity | (7,184) | (6,891) | ||
Parent Issuer [Member] | Reportable Legal Entities [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts and notes receivable, net | 0 | 0 | ||
Intercompany receivables | 18 | 2 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other | 0 | 0 | ||
Total current assets | 18 | 2 | ||
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 | ||
Investments in subsidiaries | 4,576 | 4,487 | ||
Intercompany notes receivable | 1,150 | 1,150 | ||
Other assets | 17 | 17 | ||
Total assets | 5,761 | 5,656 | ||
Current liabilities: | ||||
Accounts payable | 0 | 0 | ||
Current maturities of long-term debt | 13 | 13 | ||
Intercompany payables | 970 | 698 | ||
Other accrued liabilities | 68 | 21 | ||
Total current liabilities | 1,051 | 732 | ||
Long-term debt, net | 3,891 | 3,902 | ||
Operating lease liabilities | 0 | |||
Intercompany notes payable | 0 | 0 | ||
Deferred income taxes | 9 | 8 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 4,951 | 4,642 | ||
Commitments and contingent liabilities | ||||
Equity | ||||
Total Chemours stockholders’ equity | 810 | 1,014 | ||
Non-controlling interests | 0 | 0 | ||
Total equity | 810 | 1,014 | ||
Total liabilities and equity | 5,761 | 5,656 | ||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 115 | 239 | 470 | 761 |
Accounts and notes receivable, net | 305 | 297 | ||
Intercompany receivables | 967 | 1,057 | ||
Inventories | 581 | 483 | ||
Prepaid expenses and other | 51 | 58 | ||
Total current assets | 2,019 | 2,134 | ||
Property, plant, and equipment | 6,956 | 6,870 | ||
Less: Accumulated depreciation | (4,596) | (4,591) | ||
Property, plant, and equipment, net | 2,360 | 2,279 | ||
Operating lease right-of-use assets | 300 | |||
Goodwill and other intangible assets, net | 165 | 167 | ||
Investments in affiliates | 0 | 0 | ||
Investments in subsidiaries | 0 | 11 | ||
Intercompany notes receivable | 0 | 0 | ||
Other assets | 141 | 154 | ||
Total assets | 4,985 | 4,745 | ||
Current liabilities: | ||||
Accounts payable | 603 | 637 | ||
Current maturities of long-term debt | 0 | 0 | ||
Intercompany payables | 103 | 92 | ||
Other accrued liabilities | 297 | 341 | ||
Total current liabilities | 1,003 | 1,070 | ||
Long-term debt, net | 74 | 57 | ||
Operating lease liabilities | 251 | |||
Intercompany notes payable | 0 | 0 | ||
Deferred income taxes | 135 | 143 | ||
Other liabilities | 411 | 372 | ||
Total liabilities | 1,874 | 1,642 | ||
Commitments and contingent liabilities | ||||
Equity | ||||
Total Chemours stockholders’ equity | 3,111 | 3,103 | ||
Non-controlling interests | 0 | 0 | ||
Total equity | 3,111 | 3,103 | ||
Total liabilities and equity | 4,985 | 4,745 | ||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 582 | 962 | $ 964 | $ 795 |
Accounts and notes receivable, net | 542 | 564 | ||
Intercompany receivables | 383 | 91 | ||
Inventories | 723 | 749 | ||
Prepaid expenses and other | 29 | 26 | ||
Total current assets | 2,259 | 2,392 | ||
Property, plant, and equipment | 2,133 | 2,122 | ||
Less: Accumulated depreciation | (1,114) | (1,110) | ||
Property, plant, and equipment, net | 1,019 | 1,012 | ||
Operating lease right-of-use assets | 23 | |||
Goodwill and other intangible assets, net | 15 | 14 | ||
Investments in affiliates | 166 | 160 | ||
Investments in subsidiaries | 0 | 0 | ||
Intercompany notes receivable | 0 | 0 | ||
Other assets | 281 | 274 | ||
Total assets | 3,763 | 3,852 | ||
Current liabilities: | ||||
Accounts payable | 439 | 500 | ||
Current maturities of long-term debt | 0 | 0 | ||
Intercompany payables | 295 | 360 | ||
Other accrued liabilities | 153 | 198 | ||
Total current liabilities | 887 | 1,058 | ||
Long-term debt, net | 0 | 0 | ||
Operating lease liabilities | 14 | |||
Intercompany notes payable | 1,150 | 1,150 | ||
Deferred income taxes | 85 | 82 | ||
Other liabilities | 84 | 85 | ||
Total liabilities | 2,220 | 2,375 | ||
Commitments and contingent liabilities | ||||
Equity | ||||
Total Chemours stockholders’ equity | 1,537 | 1,471 | ||
Non-controlling interests | 6 | 6 | ||
Total equity | 1,543 | 1,477 | ||
Total liabilities and equity | $ 3,763 | $ 3,852 |
Guarantor Condensed Consolida_6
Guarantor Condensed Consolidating Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | |||
Cash provided by (used for) operating activities | $ (44) | $ 196 | |
Cash flows from investing activities | |||
Purchases of property, plant, and equipment | (133) | (102) | |
Proceeds from sales of assets and businesses, net | $ 39 | 0 | 39 |
Intercompany investing activities | 0 | 0 | |
Foreign exchange contract settlements, net | (1) | 5 | |
Cash used for investing activities | (134) | (58) | |
Cash flows from financing activities | |||
Debt repayments | (3) | (4) | |
Purchases of treasury stock, at cost | (255) | (240) | |
Intercompany financing activities | 0 | 0 | |
Proceeds from exercised stock options, net | 6 | 5 | |
Payments related to tax withholdings on vested stock awards | (30) | (1) | |
Payments of dividends | (42) | (31) | |
Cash used for financing activities | (324) | (271) | |
Effect of exchange rate changes on cash and cash equivalents | (2) | 11 | |
Decrease in cash and cash equivalents | (504) | (122) | |
Cash and cash equivalents at January 1, | 1,201 | 1,556 | |
Cash and cash equivalents at March 31, | 1,434 | 697 | 1,434 |
Eliminations and Adjustments [Member] | |||
Cash flows from operating activities | |||
Cash provided by (used for) operating activities | (39) | 0 | |
Cash flows from investing activities | |||
Purchases of property, plant, and equipment | 0 | 0 | |
Proceeds from sales of assets and businesses, net | 0 | ||
Intercompany investing activities | 263 | 288 | |
Foreign exchange contract settlements, net | 0 | 0 | |
Cash used for investing activities | 263 | 288 | |
Cash flows from financing activities | |||
Debt repayments | 0 | 0 | |
Purchases of treasury stock, at cost | 0 | ||
Intercompany financing activities | (224) | (288) | |
Proceeds from exercised stock options, net | 0 | 0 | |
Payments related to tax withholdings on vested stock awards | 0 | 0 | |
Payments of dividends | 0 | 0 | |
Cash used for financing activities | (224) | (288) | |
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 | ||
Cash and cash equivalents at March 31, | 0 | ||
Parent Issuer [Member] | Reportable Legal Entities [Member] | |||
Cash flows from operating activities | |||
Cash provided by (used for) operating activities | 53 | (17) | |
Cash flows from investing activities | |||
Purchases of property, plant, and equipment | 0 | 0 | |
Proceeds from sales of assets and businesses, net | 0 | ||
Intercompany investing activities | 0 | 0 | |
Foreign exchange contract settlements, net | 0 | 0 | |
Cash used for investing activities | 0 | ||
Cash flows from financing activities | |||
Debt repayments | (3) | (4) | |
Purchases of treasury stock, at cost | (255) | (240) | |
Intercompany financing activities | 271 | 288 | |
Proceeds from exercised stock options, net | 6 | 5 | |
Payments related to tax withholdings on vested stock awards | (30) | (1) | |
Payments of dividends | (42) | (31) | |
Cash used for financing activities | (53) | 17 | |
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 | ||
Cash and cash equivalents at March 31, | 0 | ||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||
Cash flows from operating activities | |||
Cash provided by (used for) operating activities | (26) | 33 | |
Cash flows from investing activities | |||
Purchases of property, plant, and equipment | (113) | (80) | |
Proceeds from sales of assets and businesses, net | 39 | ||
Intercompany investing activities | 16 | (288) | |
Foreign exchange contract settlements, net | (1) | 5 | |
Cash used for investing activities | (98) | (324) | |
Cash flows from financing activities | |||
Debt repayments | 0 | 0 | |
Purchases of treasury stock, at cost | 0 | ||
Proceeds from exercised stock options, net | 0 | 0 | |
Payments related to tax withholdings on vested stock awards | 0 | 0 | |
Payments of dividends | 0 | 0 | |
Cash used for financing activities | 0 | ||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | |
Decrease in cash and cash equivalents | (124) | (291) | |
Cash and cash equivalents at January 1, | 239 | 761 | |
Cash and cash equivalents at March 31, | 470 | 115 | 470 |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||
Cash flows from operating activities | |||
Cash provided by (used for) operating activities | (32) | 180 | |
Cash flows from investing activities | |||
Purchases of property, plant, and equipment | (20) | (22) | |
Proceeds from sales of assets and businesses, net | 0 | ||
Intercompany investing activities | (279) | 0 | |
Foreign exchange contract settlements, net | 0 | 0 | |
Cash used for investing activities | (299) | (22) | |
Cash flows from financing activities | |||
Debt repayments | 0 | 0 | |
Purchases of treasury stock, at cost | 0 | ||
Intercompany financing activities | (47) | ||
Proceeds from exercised stock options, net | 0 | 0 | |
Payments related to tax withholdings on vested stock awards | 0 | 0 | |
Payments of dividends | 0 | 0 | |
Cash used for financing activities | (47) | 0 | |
Effect of exchange rate changes on cash and cash equivalents | (2) | 11 | |
Decrease in cash and cash equivalents | (380) | 169 | |
Cash and cash equivalents at January 1, | 962 | 795 | |
Cash and cash equivalents at March 31, | $ 964 | $ 582 | $ 964 |