Investment in TiO2 Manufacturing Joint Venture

12 Months Ended

Dec. 31, 2021

Equity Method Investments And Joint Ventures [Abstract]

Investment in TiO2 Manufacturing Joint Venture

Note 5 – Investment in TiO₂ manufacturing joint venture:

We own a 50% interest in Louisiana Pigment Company, L.P. (LPC). LPC is a manufacturing joint venture whose other 50%-owner is Venator Investments LLC (Venator Investments). Venator Investments is a wholly-owned subsidiary of Venator Group, of which Venator Materials PLC owns 100% and is the ultimate parent. LPC owns and operates a chloride-process TiO₂ plant near Lake Charles, Louisiana.

We and Venator Investments are both required to purchase one-half of the TiO₂ produced by LPC, unless we and Venator Investments agree otherwise. LPC operates on a break-even basis and, accordingly, we report no equity in earnings of LPC. Each owner’s acquisition transfer price for its share of the TiO₂ produced is equal to its share of the joint venture’s production costs and interest expense, if any. Our share of net cost is reported as cost of sales as the related TiO₂ acquired from LPC is sold. We report distributions we receive from LPC, which generally relate to excess cash generated by LPC from its non-cash production costs, and contributions we make to LPC, which generally relate to cash required by LPC when it builds working capital, as part of our cash flows from operating activities in our Consolidated Statements of Cash Flows. The components of our net cash distributions from (contributions to) LPC are shown in the table below.

	Years ended December 31,
	2019		2020		2021
	(In millions)
Distributions from LPC	$	40.6	$	32.7	$	28.5
Contributions to LPC		(49.9)		(45.5)		(24.7)
Net distributions (contributions)	$	(9.3)	$	(12.8)	$	3.8

Summary balance sheets of LPC are shown below:

	December 31,
	2020		2021
	(In millions)
ASSETS
Current assets	$	105.8	$	111.7
Property and equipment, net		134.1		142.6
Total assets	$	239.9	$	254.3
LIABILITIES AND PARTNERS’ EQUITY
Other liabilities, primarily current	$	30.6	$	47.8
Partners’ equity		209.3		206.5
Total liabilities and partners’ equity	$	239.9	$	254.3

Summary income statements of LPC are shown below:

	Years ended December 31,
	2019		2020		2021
	(In millions)
Revenues and other income:
Kronos	$	176.2	$	167.8	$	188.6
Venator Investments		177.0		168.3		189.6
Total revenues and other income		353.2		336.1		378.2
Cost and expenses:
Cost of sales		352.8		335.7		377.8
General and administrative		.4		.4		.4
Total costs and expenses		353.2		336.1		378.2
Net income	$	-	$	-	$	-

We have certain related party transactions with LPC, as more fully described in Note 14.