Segment Information

12 Months Ended

Dec. 31, 2015

Segment Information [Abstract]

Segment Information

25. Segment Information

The reportable segments presented below represent our operating segments for which separate financial information is available and which is utilized on a regular basis by our Chief Executive Officer, who is our chief operating decision maker (“CODM”), to assess performance and to allocate resources.

Prior to the Alkali Transaction, we had two operating and reportable segments, Mineral Sands and Pigment, based on the way the management team was organized and our CODM monitored performance, aligned strategies, and allocated resources. As a result of the increased interdependency between the Mineral Sands and Pigment businesses and related organizational changes, our CODM determined that it was better to review the Mineral Sands and Pigment businesses, along with our electrolytic business, as a combined one, TiO₂, and to assess performance and allocate resources at that level. Following the Alkali Transaction, we restructured our organization to reflect two business segments, TiO₂ and Alkali. The change in reportable segments for financial reporting purposes that occurred in the second quarter of 2015 has been retrospectively applied.

Our TiO₂ operating segment includes the following:

· exploration, mining, and beneficiation of mineral sands deposits;

· production of titanium feedstock (including chloride slag, slag fines, and rutile), pig iron, and zircon;

· production and marketing of TiO₂; and

· electrolytic manganese dioxide manufacturing and marketing.

Our Alkali operating segment includes the mining of trona ore for the production from trona of natural soda ash and its derivatives: sodium bicarbonate, sodium sesquicarbonate and caustic soda (collectively referred to as “alkali-products”).

 Segment performance is evaluated based on segment operating income (loss), which represents the results of segment operations before unallocated costs, such as general corporate expenses not identified to a specific segment, interest expense, other income (expense), and income tax expense or benefit.

Net sales and income (loss) from operations by segment were as follows:

	Year Ended December 31,
	2015			2014			2013
TiO2 segment	$	1,510		$	1,737		$	1,922
Alkali segment		602			—			—
Net sales	$	2,112		$	1,737		$	1,922
TiO2 segment	$	(123	)	$	78		$	70
Alkali segment		69			—			—
Corporate		(64	)		(78	)		(67	)
Income (loss) from operations		(118	)		—			3
Interest and debt expense, net		(176	)		(133	)		(130	)
Net gain (loss) on liquidation of non-operating subsidiaries		—			(35	)		24
Loss on extinguishment of debt		—			(8	)		(4	)
Other income, net		28			27			46
Loss before income taxes		(266	)		(149	)		(61	)
Income tax provision		(41	)		(268	)		(29	)
Net loss	$	(307	)	$	(417	)	$	(90	)

Net sales to external customers, by geographic region, based on country of production, were as follows:

	Year Ended December 31,
	2015		2014		2013
U.S. operations	$	1,223	$	749	$	793
International operations:
Australia		380		426		424
South Africa		313		329		481
The Netherlands		196		233		224
Total net sales	$	2,112	$	1,737	$	1,922

Net sales from external customers for each similar product were as follows:

	Year Ended December 31,
	2015		2014		2013
Pigment	$	976	$	1,179	$	1,169
Alkali		602		—		—
Titanium feedstock and co-products		426		445		625
Electrolytic		108		113		128
Total net sales	$	2,112	$	1,737	$	1,922

During 2015, our ten largest third-party TiO₂ customers and our ten largest Alkali customers represented approximately 29% and 18%, respectively, of our consolidated net sales. ANSAC accounted for 10% of our consolidated net sales.  See Note 24 for further details.

Depreciation, amortization and depletion by segment were as follows:

	Year Ended December 31,
	2015		2014		2013
TiO2 segment	$	246	$	289	$	327
Alkali segment		42		—		—
Corporate		6		6		6
Total depreciation, amortization and depletion	$	294	$	295	$	333

Capital expenditures by segment were as follows:

	Year Ended December 31,
	2015		2014		2013
TiO2 segment	$	164	$	184	$	159
Alkali segment		26		—		—
Corporate		1		3		6
Total capital expenditures	$	191	$	187	$	165

Total assets by segment were as follows:

	December 31,
	2015		2014
TiO2 segment	$	3,055	$	3,821
Alkali segment		1,690		—
Corporate		327		1,244
Total	$	5,072	$	5,065

Property, plant and equipment, net and mineral leaseholds, net, by geographic region, were as follows:

	December 31,
	2015		2014
U.S. operations	$	1,687	$	211
International operations:
South Africa		747		941
Australia		968		1,083
The Netherlands		45		50
Total	$	3,447	$	2,285