v3.25.1
Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Information 22. 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 costs;
•
exchange (gains) losses included in other income (expense), 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 certain summary financial information for the Company’s reportable segments for the periods presented.

 

 

 

Thermal & Specialized Solutions

 

 

Titanium Technologies

 

 

Advanced Performance Materials

 

Three Months Ended March 31, 2025

 

 

 

 

 

 

 

 

 

Segment information from Interim Consolidated Statements of Operations:

 

 

 

 

 

 

 

 

Net sales to external customers (1)

 

$

466

 

 

$

597

 

 

$

294

 

Segment cost of goods sold

 

 

312

 

 

 

544

 

 

 

250

 

Segment selling, general and administrative expense

 

 

25

 

 

 

28

 

 

 

33

 

Segment research and development expense

 

 

7

 

 

 

7

 

 

 

12

 

Add back: Depreciation and amortization (2)

 

 

16

 

 

 

31

 

 

 

35

 

Equity in earnings of affiliates

 

 

2

 

 

 

—

 

 

 

6

 

Other segment items (3)

 

 

(5

)

 

 

(1

)

 

 

(4

)

Segment Adjusted EBITDA

 

$

141

 

 

$

50

 

 

$

32

 

 

 

 

 

 

 

 

 

 

 

March 31, 2025

 

 

 

 

 

 

 

 

 

Segment information from Interim Consolidated Balance Sheets:

 

 

 

 

 

 

 

 

Total assets

 

$

1,646

 

 

$

2,290

 

 

$

1,759

 

Investments in affiliates

 

 

75

 

 

 

—

 

 

 

90

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2025

 

 

 

 

 

 

 

 

 

Segment information from Interim Consolidated Statements of Cash Flow:

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

33

 

 

 

37

 

 

 

13

 

 

 

 

 

 

 

 

 

 

 

 

 

Thermal & Specialized Solutions

 

 

Titanium Technologies

 

 

Advanced Performance Materials

 

Three Months Ended March 31, 2024

 

 

 

 

 

 

 

 

 

Segment information from Interim Consolidated Statements of Operations:

 

 

 

 

 

 

 

 

Net sales to external customers (1)

 

$

454

 

 

$

591

 

 

$

303

 

Segment cost of goods sold

 

 

277

 

 

 

514

 

 

 

252

 

Segment selling, general and administrative expense

 

 

26

 

 

 

28

 

 

 

38

 

Segment research and development expense

 

 

8

 

 

 

7

 

 

 

12

 

Add back: Depreciation and amortization (2)

 

 

13

 

 

 

31

 

 

 

21

 

Equity in earnings of affiliates

 

 

2

 

 

 

—

 

 

 

10

 

Other segment items (3)

 

 

4

 

 

 

4

 

 

 

(18

)

Segment Adjusted EBITDA

 

$

150

 

 

$

69

 

 

$

30

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

 

 

 

Segment information from Consolidated Balance Sheets:

 

 

 

 

 

 

 

 

Total assets

 

$

1,541

 

 

$

2,289

 

 

$

1,748

 

Investments in affiliates

 

 

72

 

 

 

—

 

 

 

81

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2024

 

 

 

 

 

 

 

 

 

Segment information from Interim Consolidated Statements of Cash Flow:

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

24

 

 

 

19

 

 

 

54

 
(1)
Segment net sales to external customers are provided by product group in "Note 3 – 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.

 

 

 

Segment Total

 

 

Other Non-Reportable Segment

 

 

Corporate

 

 

Total Consolidated

 

Three Months Ended March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to external customers

$

 

1,357

 

$

 

11

 

$

 

—

 

$

 

1,368

 

Depreciation and amortization

$

 

82

 

$

 

1

 

$

 

5

 

$

 

88

 

Purchases of property, plant, and equipment

$

 

83

 

$

 

1

 

$

 

—

 

$

 

84

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to external customers

$

 

1,348

 

$

 

14

 

$

 

—

 

$

 

1,362

 

Depreciation and amortization

$

 

65

 

$

 

1

 

$

 

5

 

$

 

71

 

Purchases of property, plant, and equipment

$

 

97

 

$

 

2

 

$

 

3

 

$

 

102

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets (1)

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2025

$

 

5,695

 

$

 

96

 

$

 

1,603

 

$

 

7,394

 

December 31, 2024

$

 

5,578

 

$

 

97

 

$

 

1,838

 

$

 

7,513

 
(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 before income taxes for the three months ended March 31, 2025 and 2024.

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Thermal & Specialized Solutions

 

$

141

 

 

$

150

 

Titanium Technologies

 

 

50

 

 

 

69

 

Advanced Performance Materials

 

 

32

 

 

 

30

 

Segment Adjusted EBITDA

 

 

223

 

 

 

249

 

Other non-reportable segment Adjusted EBITDA

 

 

1

 

 

 

2

 

Corporate expenses (1)

 

 

(57

)

 

 

(55

)

Unallocated Items:

 

 

 

 

 

 

Interest expense, net

 

 

(66

)

 

 

(63

)

Depreciation and amortization

 

 

(88

)

 

 

(71

)

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

 

 

2

 

 

 

1

 

Exchange (losses) gains, net

 

 

(3

)

 

 

1

 

Restructuring, asset-related, and other charges (2) (Note 4)

 

 

(21

)

 

 

(4

)

Gain on sales of assets and businesses, net

 

 

1

 

 

 

3

 

Transaction costs (3)

 

 

(1

)

 

 

(5

)

Qualified spend recovery (4)

 

 

9

 

 

 

7

 

Litigation-related charges

 

 

—

 

 

 

5

 

Income (loss) before income taxes

 

$

—

 

 

$

70

 
(1)
Includes corporate costs and certain legal and environmental expenses, and stock-based compensation expenses excluding unallocated items as listed above.
(2)
Accelerated depreciation charges of $11 incurred as part of the Company's decision to exit its SPS CapstoneTM business are included within the "Depreciation and amortization" caption above, and therefore are not included as separate adjustment within this caption.
(3)
For the three months ended March 31, 2025 and 2024, transaction costs includes $1 and $5, respectively, of third-party costs related to the Titanium Technologies Transformation Plan, which were not allocated in the measurement of Titanium Technologies segment profitability used by the CODM.
(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 16 – Commitments and Contingent Liabilities".