v3.25.0.1
Geographic and Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Geographic and Segment Information

Note 29. Geographic and Segment Information

 

As described further in "Note 2 – Basis of Presentation", certain prior period amounts reflected in the tables below have been revised to correct for immaterial errors pertaining to income statement presentation of byproduct revenue sales.

 

Geographic Information

 

The following table sets forth the geographic locations of the Company’s net sales for the years ended and property, plant, and equipment, net as of December 31, 2024, 2023 and 2022.

 

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

Net Sales (1)

 

 

Property, Plant, and Equipment, Net

 

 

Net Sales (1)

 

 

Property, Plant, and Equipment, Net

 

 

Net Sales (1)

 

 

Property, Plant, and Equipment, Net

 

North America

 

$

2,589

 

 

$

2,435

 

 

$

2,745

 

 

$

2,345

 

 

$

2,984

 

 

$

2,320

 

Asia Pacific

 

 

1,386

 

 

 

52

 

 

 

1,462

 

 

 

56

 

 

 

1,787

 

 

 

127

 

Europe, the Middle East, and Africa

 

 

1,138

 

 

 

285

 

 

 

1,197

 

 

 

298

 

 

 

1,315

 

 

 

249

 

Latin America (2)

 

 

669

 

 

 

411

 

 

 

674

 

 

 

517

 

 

 

745

 

 

 

475

 

Total

 

$

5,782

 

 

$

3,183

 

 

$

6,078

 

 

$

3,216

 

 

$

6,831

 

 

$

3,171

 
(1)
Net sales are attributed to countries based on customer location.
(2)
Latin America includes Mexico.

 

Segment Information

 

Chemours operates through its three principal reportable segments, which were organized based on their similar economic characteristics, the nature of products and production processes, end-use markets, channels of distribution, and regulatory environments: Thermal & Specialized Solutions, Titanium Technologies, and Advanced Performance Materials. Other non-reportable segment includes the Company’s Performance Chemicals and Intermediates business.

 

The Company's Chief Operating Decision Maker ("CODM"), which is the Company's President and Chief Executive Officer, is regularly provided adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA") which is the primary measure of segment profitability, by segment and on a consolidated basis. The CODM uses Segment Adjusted EBITDA as the primary basis to measure segment performance relative to expectations set during the Company's annual budget process, which is where decisions regarding allocation of the Company's capital expenditures, employees and financial resources predominately occurs. This regular review of segment and consolidated Adjusted EBITDA, which takes place in monthly Business Operating Reviews (BORs), includes budget-to-actual and various period-over-period variances, which allows the CODM to modify resource allocation accordingly. Adjusted EBITDA 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 non-service cost component of net periodic pension (income) costs;
•
exchange (gains) losses included in other income, net;
•
restructuring, asset-related, and other charges;
•
(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, including certain litigation related and environmental charges and Qualified Spend reimbursable by DuPont and/or Corteva as part of the Company's cost-sharing agreement under the terms of the MOU that were previously excluded from Adjusted EBITDA.

The following table sets forth financial information for the Company’s reportable segments as of, and for the years ended December 31, 2024, 2023 and 2022.

 

 

 

Thermal & Specialized Solutions

 

 

Titanium Technologies

 

 

Advanced Performance Materials

 

Year Ended December 31, 2024

 

 

 

 

 

 

 

 

 

Segment information from Consolidated Statements of Operations:

 

 

 

 

 

 

 

 

Net sales to external customers (1)

 

$

1,830

 

 

$

2,572

 

 

$

1,326

 

Segment cost of goods sold

 

 

1,180

 

 

 

2,248

 

 

 

1,102

 

Segment selling, general, and administrative expense

 

 

104

 

 

 

118

 

 

 

147

 

Segment research and development expense

 

 

29

 

 

 

28

 

 

 

50

 

Add back: Depreciation and amortization (2)

 

 

53

 

 

 

133

 

 

 

89

 

Equity in earnings of affiliates

 

 

(8

)

 

 

—

 

 

 

(35

)

Other segment items (3)

 

 

2

 

 

 

(1

)

 

 

(10

)

Segment Adjusted EBITDA

 

$

576

 

 

$

312

 

 

$

161

 

 

 

 

 

 

 

 

 

 

 

Segment information from Consolidated Balance Sheets:

 

 

 

 

 

 

 

 

Total assets

 

$

1,549

 

 

$

2,290

 

 

$

1,748

 

Investments in affiliates

 

 

72

 

 

 

—

 

 

 

81

 

 

 

 

 

 

 

 

 

 

 

Segment information from Consolidated Statements of Cash Flow:

 

 

 

 

 

 

 

 

Purchases of property, plant, and equipment

 

$

168

 

 

$

55

 

 

$

122

 

 

 

 

Thermal & Specialized Solutions

 

 

Titanium Technologies

 

 

Advanced Performance Materials

 

Year Ended December 31, 2023

 

 

 

 

 

 

 

 

 

Segment information from Consolidated Statements of Operations:

 

 

 

 

 

 

 

 

Net sales to external customers (1)

 

$

1,851

 

 

$

2,680

 

 

$

1,462

 

Segment cost of goods sold

 

 

1,130

 

 

 

2,370

 

 

 

1,128

 

Segment selling, general, and administrative expense

 

 

98

 

 

 

122

 

 

 

145

 

Segment research and development expense

 

 

25

 

 

 

32

 

 

 

48

 

Add back: Depreciation and amortization (2)

 

 

62

 

 

 

133

 

 

 

85

 

Equity in earnings of affiliates

 

 

(10

)

 

 

—

 

 

 

(35

)

Other segment items (3)

 

 

(15

)

 

 

(1

)

 

 

(12

)

Segment Adjusted EBITDA

 

$

685

 

 

$

290

 

 

$

273

 

 

 

 

 

 

 

 

 

 

 

Segment information from Consolidated Balance Sheets:

 

 

 

 

 

 

 

 

Total assets

 

$

1,283

 

 

$

2,226

 

 

$

1,833

 

Investments in affiliates

 

 

75

 

 

 

—

 

 

 

84

 

 

 

 

 

 

 

 

 

 

 

Segment information from Consolidated Statements of Cash Flow:

 

 

 

 

 

 

 

 

Purchases of property, plant, and equipment

 

$

75

 

 

$

83

 

 

$

193

 

 

 

 

 

Thermal & Specialized Solutions

 

 

Titanium Technologies

 

 

Advanced Performance Materials

 

Year Ended December 31, 2022

 

 

 

 

 

 

 

 

 

Segment information from Consolidated Statements of Operations:

 

 

 

 

 

 

 

 

Net sales to external customers (1)

 

$

1,702

 

 

$

3,380

 

 

$

1,633

 

Segment cost of goods sold

 

 

1,070

 

 

 

2,746

 

 

 

1,184

 

Segment selling, general, and administrative expense

 

 

101

 

 

 

125

 

 

 

153

 

Segment research and development expense

 

 

25

 

 

 

34

 

 

 

54

 

Add back: Depreciation and amortization (2)

 

 

55

 

 

 

125

 

 

 

82

 

Equity in earnings of affiliates

 

 

(24

)

 

 

—

 

 

 

(31

)

Other segment items (3)

 

 

(18

)

 

 

(1

)

 

 

(12

)

Segment Adjusted EBITDA

 

$

603

 

 

$

601

 

 

$

367

 

 

 

 

 

 

 

 

 

 

 

Segment information from Consolidated Balance Sheets:

 

 

 

 

 

 

 

 

Total assets

 

$

1,238

 

 

$

2,384

 

 

$

1,742

 

Investments in affiliates

 

 

82

 

 

 

—

 

 

 

93

 

 

 

 

 

 

 

 

 

 

 

Segment information from Consolidated Statements of Cash Flow:

 

 

 

 

 

 

 

 

Purchases of property, plant, and equipment

 

$

30

 

 

$

149

 

 

$

115

 
(1)
Segment net sales to external customers are provided by product group in “Note 5 – Net Sales".
(2)
Segment depreciation and amortization expense is included as a component of cost of goods sold; selling, general, and administrative expense; and research and development expense in the amounts regularly provided to the CODM and are therefore added back to arrive at Segment Adjusted EBITDA.
(3)
Other segment items includes segment other (income) expense, net.


The following table sets forth a reconciliation for instances in which the above financial information for the Company’s reportable segments does not sum to consolidated amounts.

 

Year Ended December 31,

 

Segment Total

 

 

Other Non-Reportable Segment

 

 

Corporate

 

 

Total Consolidated

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to external customers

 

$

5,728

 

 

$

54

 

 

$

—

 

 

$

5,782

 

Depreciation and amortization

 

$

275

 

 

$

5

 

 

$

21

 

 

$

301

 

Total assets (1)

 

$

5,587

 

 

$

97

 

 

$

1,831

 

 

$

7,515

 

Purchases of property, plant, and equipment

 

$

345

 

 

$

5

 

 

$

10

 

 

$

360

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to external customers

 

$

5,993

 

 

$

85

 

 

$

—

 

 

$

6,078

 

Depreciation and amortization

 

$

280

 

 

$

6

 

 

$

21

 

 

$

307

 

Total assets (1)

 

$

5,342

 

 

$

96

 

 

$

2,813

 

 

$

8,251

 

Purchases of property, plant, and equipment

 

$

351

 

 

$

7

 

 

$

12

 

 

$

370

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to external customers

 

$

6,715

 

 

$

116

 

 

$

—

 

 

$

6,831

 

Depreciation and amortization

 

$

262

 

 

$

8

 

 

$

21

 

 

$

291

 

Total assets (1)

 

$

5,364

 

 

$

124

 

 

$

2,152

 

 

$

7,640

 

Purchases of property, plant, and equipment

 

$

294

 

 

$

6

 

 

$

7

 

 

$

307

 
(1)
Corporate assets primarily includes cash and cash equivalents, property, plant and equipment associated with the Chemours Discovery Hub, pension assets and deferred tax assets.

 

The following table sets forth a reconciliation of Segment Adjusted EBITDA to the Company’s consolidated income (loss) before income taxes for the years ended December 31, 2024, 2023 and 2022.

 

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Thermal & Specialized Solutions

 

$

576

 

 

$

685

 

 

$

603

 

Titanium Technologies

 

 

312

 

 

 

290

 

 

 

601

 

Advanced Performance Materials

 

 

161

 

 

 

273

 

 

 

367

 

Segment Adjusted EBITDA

 

 

1,049

 

 

 

1,248

 

 

 

1,571

 

Other non-reportable segment Adjusted EBITDA

 

 

8

 

 

 

18

 

 

 

2

 

Corporate expenses (1)

 

 

(255

)

 

 

(212

)

 

 

(212

)

Unallocated Items:

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(264

)

 

 

(208

)

 

 

(163

)

Depreciation and amortization

 

 

(301

)

 

 

(307

)

 

 

(291

)

Non-operating pension and other post-retirement employee benefit income

 

 

3

 

 

 

—

 

 

 

5

 

Exchange losses, net (Note 8)

 

 

(9

)

 

 

(38

)

 

 

(15

)

Restructuring, asset-related, and other charges (Note 7)

 

 

(58

)

 

 

(153

)

 

 

(15

)

Goodwill impairment charge (Note 15)

 

 

(56

)

 

 

—

 

 

 

—

 

Inventory write-offs (2)

 

 

—

 

 

 

(40

)

 

 

—

 

(Loss) gain on extinguishment of debt

 

 

(1

)

 

 

(1

)

 

 

7

 

Gain on sales of assets and businesses, net (Note 4)

 

 

3

 

 

 

110

 

 

 

21

 

Transaction costs (3)

 

 

(18

)

 

 

(16

)

 

 

—

 

Qualified spend recovery (4)

 

 

26

 

 

 

54

 

 

 

58

 

Litigation-related charges (5)

 

 

15

 

 

 

(764

)

 

 

(23

)

Environmental charges (6)

 

 

(15

)

 

 

(9

)

 

 

(204

)

Income (loss) before income taxes

 

$

127

 

 

$

(318

)

 

$

741

 
(1)
Includes corporate costs and certain legal and environmental expenses, and stock-based compensations expenses excluding unallocated items as listed above.
(2)
Inventory adjustments for the year ended December 31, 2023 represents write-off of certain raw materials and stores inventories from the Kuan Yin, Taiwan plant closure, which was not allocated in the measurement of Titanium Technologies segment profitability used by the CODM.
(3)
For the year ended December 31, 2024, transaction costs includes $16 of third-party costs related to the Titanium Technologies Transformation Plan, which was not allocated in the measurement of Titanium Technologies segment profitability used by the CODM. For the year ended December 31, 2023, transaction costs includes $7 of costs associated with the Senior Secured Credit Facilities, which is discussed in further detail in "Note 20 – Debt", and $9 of third-party costs related to the Titanium Technologies Transformation Plan.
(4)
Qualified spend recovery represents costs and expenses that were previously excluded from the determination of Segment Adjusted EBITDA, reimbursable by DuPont and/or Corteva as part of the Company's cost-sharing agreement under the terms of the MOU. Terms of the MOU are discussed in further detail in "Note 22 – Commitments and Contingent Liabilities".
(5)
Litigation-related charges pertains to litigation settlements, PFOA drinking water treatment accruals, and other related legal fees. For the year ended December 31, 2024, litigation-related charges primarily includes $44 of benefits from insurance recoveries, along with the $29 accrual associated with the Ohio MDL. For the year ended December 31, 2023, litigation-related charges includes the $592 accrual related to the United States Public Water System Class Action Suit Settlement plus $24 of third-party legal fees directly related to the settlement, $55 of charges related to the Company's portion of Chemours, DuPont, Corteva, EID and the State of Ohio's agreement entered into in November 2023, $13 related to the Company's portion of the supplemental payment to the State of Delaware, $76 for other PFAS litigation matters, and $4 of other litigation matters. For the year ended December 31, 2022, litigation-related charges primarily include proceeds from a settlement in a patent infringement matter relating to certain copolymer patents associated with the Company’s Advanced Performance Materials segment and $20 associated with the Company's portion of the potential loss in the single matter not included in the Leach settlement.
(6)
Environmental charges pertains to management’s assessment of estimated liabilities associated with certain non-recurring environmental remediation expenses at various sites. For the year ended December 31, 2024, environmental charges primarily includes off-site remediation costs at Dordrecht Works. For the years ended December 31, 2022, environmental charges primarily include $196 related to on-site and off-site remediation costs at Fayetteville. Refer to “Note 22 – Commitments and Contingent Liabilities” for further details.