22. Guarantor Condensed Consolidated Financial Statements

Our obligations under the Senior Notes are fully and unconditionally guaranteed on a senior unsecured basis, jointly and severally, by each current and future U.S. restricted subsidiary, other than excluded subsidiaries that guarantee any indebtedness of Tronox Limited or our restricted subsidiaries. Our subsidiaries that do not guarantee the Senior Notes are referred to as the “Non-Guarantor Subsidiaries.” The Guarantor Condensed Consolidated Financial Data presented below presents the statements of operations, statements of comprehensive income, balance sheets and statements of cash flow data for: (i) Tronox Limited (the “Parent Company”), the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries on a consolidated basis (which is derived from Tronox historical reported financial information); (ii) the Parent Company, alone (accounting for our Guarantor Subsidiaries and the Non-Guarantor Subsidiaries on an equity basis under which the investments are recorded by each entity owning a portion of another entity at cost, adjusted for the applicable share of the subsidiary’s cumulative results of operations, capital contributions and distributions, and other equity changes); (iii) the Guarantor Subsidiaries alone; and (iv) the Non-Guarantor Subsidiaries alone.

The guarantor condensed consolidated financial statements are presented on a legal entity basis, not on a business segment basis.

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three months ended June 30, 2013

(Unaudited)

(Millions of U.S. dollars)


	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	525		$	(101	)	$	—		$	356		$	270
Cost of goods sold		475			(104	)		—			339			240

Gross Margin		50			3			—			17			30
Selling, general and administrative expenses		41			(1	)		4			31			7

Income from Operations		9			4			(4	)		(14	)		23
Interest and debt expense		(35	)		—			137			(161	)		(11	)
Other income (expense)		26			—			—			13			13
Equity in earnings of subsidiary		—			106			(106	)		—			—

Income (Loss) before Income Taxes		—			110			27			(162	)		25
Income tax benefit (provision)		(1	)		—			(40	)		40			(1	)

Net Income (Loss)		(1	)		110			(13	)		(122	)		24
Income attributable to noncontrolling interest		12			—			—			12			—

Net Income (Loss) attributable to Tronox Limited	$	(13	)	$	110		$	(13	)	$	(134	)	$	24

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Six months ended June 30, 2013

(Unaudited)

(Millions of U.S. dollars)


	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	995		$	(195	)	$	—		$	668		$	522
Cost of goods sold		913			(172	)		—			642			443

Gross Margin		82			(23	)		—			26			79
Selling, general and administrative expenses		92			(2	)		9			66			19

Income from Operations		(10	)		(21	)		(9	)		(40	)		60
Interest and debt expense		(62	)		—			273			(324	)		(11	)
Loss on extinguishment of debt		(4	)		—			—			(3	)		(1	)
Other income (expense)		32			—			1			11			20
Equity in earnings of subsidiary		—			256			(256	)		—			—

Income (Loss) before Income Taxes		(44	)		235			9			(356	)		68
Income tax benefit (provision)		(2	)		—			(78	)		91			(15	)

Net Income (Loss)		(46	)		235			(69	)		(265	)		53
Income attributable to noncontrolling interest		24			—			—			24			—

Net Income (Loss) attributable to Tronox Limited	$	(70	)	$	235		$	(69	)	$	(289	)	$	53

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three months ended June 30, 2013

(Unaudited)

(Millions of U.S. dollars)


	Consolidated			Eliminations		Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	(1	)	$	110	$	(13	)	$	(122	)	$	24
Other Comprehensive Income (Loss):
Foreign currency translation adjustments		(82	)		—		—			—			(82	)
Amortization of actuarial losses, net of taxes		(1	)		—		—			—			(1	)

Other comprehensive income (loss)		(83	)		—		—			—			(83	)

Total comprehensive income (loss)		(84	)		110		(13	)		(122	)		(59	)

Comprehensive income (loss) attributable to noncontrolling interest:
Net income		12			—		—			12			—
Foreign currency translation adjustments		(23	)		—		—			(23	)		—

Comprehensive income (loss) attributable to noncontrolling interest		(11	)		—		—			(11	)		—

Comprehensive income (loss) attributable to Tronox Limited	$	(73	)	$	110	$	(13	)	$	(111	)	$	(59	)

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Six months ended June 30, 2013

(Unaudited)

(Millions of U.S. dollars)


	Consolidated			Eliminations		Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	(46	)	$	235	$	(69	)	$	(265	)	$	53
Other Comprehensive Income (Loss):
Foreign currency translation adjustments		(201	)		—		—			—			(201	)
Amortization of actuarial losses, net of taxes		—			—		—			—			—

Other comprehensive income (loss)		(201	)		—		—			—			(201	)

Total comprehensive income (loss)		(247	)		235		(69	)		(265	)		(148	)

Comprehensive income (loss) attributable to noncontrolling interest:
Net income		24			—		—			24			—
Foreign currency translation adjustments		(51	)		—		—			(51	)		—

Comprehensive income (loss) attributable to noncontrolling interest		(27	)		—		—			(27	)		—

Comprehensive income (loss) attributable to Tronox Limited	$	(220	)	$	235	$	(69	)	$	(238	)	$	(148	)

GUARANTOR CONDENSED CONSOLIDATED BALANCE SHEETS

As of June 30, 2013

(Unaudited)

(Millions of U.S. dollars)


	Consolidated		Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	$	1,389	$	—		$	398		$	882		$	109
Investment in subsidiaries		—		(1,132	)		(878	)		1,553			457
Other current assets		1,265		(9,173	)		6,285			2,048			2,105
Property, plant and equipment, net		1,309		—			—			729			580
Mineral leaseholds, net		1,321		—			—			766			555
Other assets		563		—			(3	)		382			184

Total Assets	$	5,847	$	(10,305	)	$	5,802		$	6,360		$	3,990

Liabilities and Shareholders’ Equity
Current liabilities	$	336	$	(1,155	)	$	473		$	842		$	176
Long-term debt		2,390		—			—			901			1,489
Other long-term liabilities		531		(7,947	)		933			7,136			409

Total Liabilities		3,257		(9,102	)		1,406			8,879			2,074
Total Shareholders’ Equity		2,590		(1,203	)		4,396			(2,519	)		1,916

Total Liabilities and Equity	$	5,847	$	(10,305	)	$	5,802		$	6,360		$	3,990

GUARANTOR CONDENSED CONSOLIDATED BALANCE SHEETS

As of December 31, 2012

(Unaudited)

(Millions of U.S. dollars)


	Consolidated		Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	$	716	$	—		$	533		$	82		$	101
Investment in subsidiaries		—		(1,595	)		(622	)		1,760			457
Other current assets		1,457		(8,300	)		6,047			2,181			1,529
Property, plant and equipment, net		1,423		—			—			747			676
Mineral leaseholds, net		1,439		—			—			796			643
Other assets		476		—			(3	)		401			78

Total Assets	$	5,511	$	(9,895	)	$	5,955		$	5,967		$	3,484

Liabilities and Shareholders’ Equity
Current liabilities	$	467	$	(539	)	$	560		$	133		$	313
Long-term debt		1,605		—			—			902			703
Other long-term liabilities		557		(7,709	)		882			6,978			406

Total Liabilities		2,629		(8,248	)		1,442			8,013			1,422
Total Shareholders’ Equity		2,882		(1,647	)		4,513			(2,046	)		2,062

Total Liabilities and Equity	$	5,511	$	(9,895	)	$	5,955		$	5,967		$	3,484

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six months ended June 30, 2013

(Unaudited)

(Millions of U.S. dollars)


	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Cash Flows from Operating Activities
Net income (loss)	$	(46	)	$	235		$	(70	)	$	(265	)	$	54
Other		125			(235	)		(9	)		1,094			(725	)

Cash provided by (used in) operating activities		79			—			(79	)		829			(671	)

Cash Flows from Investing Activities:
Capital expenditures		(79	)		—			—			(31	)		(48	)

Cash used in investing activities		(79	)		—			—			(31	)		(48	)

Cash Flows from Financing Activities
Repayments of debt		(180	)		—			—			(1	)		(179	)
Proceeds from borrowings		945			—			—			—			945
Debt issuance costs		(28	)		—			—			—			(28	)
Dividends paid		(57	)		—			(57	)		—			—
Proceeds from the conversion of warrants		1			—			1			—			—

Cash provided by (used in) financing activities		681			—			(56	)		(1	)		738

Effects of Exchange Rate Changes on Cash and Cash Equivalents		(8	)		—			—			—			(8	)

Net Increase (Decrease) in Cash and Cash Equivalents		673			—			(135	)		797			11
Cash and Cash Equivalents at Beginning of Period		716			—			533			85			98

Cash and Cash Equivalents at End of Period	$	1,389		$	—		$	398		$	882		$	109

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three months ended June 30, 2012

(Unaudited)

(Millions of U.S. dollars)


	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	429		$	(33	)	$	—		$	363		$	99
Cost of goods sold		304			(42	)		—			266			80

Gross Margin		125			9			—			97			19
Selling, general and administrative expenses		103			(1	)		38			58			8

Income from Operations		22			10			(38	)		39			11
Interest and debt expense		(14	)		—			24			(36	)		(2	)
Other income (expense)		(3	)		1			—			49			(53	)
Gain on bargain purchase		1,055			—			1,055			—			—
Equity in earnings of subsidiary		—			1,026			(991	)		(35	)		—

Income (Loss) before Income Taxes		1,060			1,037			50			17			(44	)
Income tax benefit (provision)		84			—			4			59			21

Net Income (Loss)		1,144			1,037			54			76			(23	)
Income attributable to noncontrolling interest		—			—			—			—			—

Net Income (Loss) attributable to Tronox Limited	$	1,144		$	1,037		$	54		$	76		$	(23	)

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Six months ended June 30, 2012

(Unaudited)

(Millions of U.S. dollars)


	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	863		$	(51	)	$	—		$	727		$	187
Cost of goods sold		581			(55	)		—			499			137

Gross Margin		282			4			—			228			50
Selling, general and administrative expenses		147			(2	)		38			99			12

Income from Operations		135			6			(38	)		129			38
Interest and debt expense		(22	)		—			24			(41	)		(5	)
Other income (expense)		(4	)		38			—			14			(56	)
Gain on bargain purchase		1,055			—			1,055			—			—
Equity in earnings of subsidiary		—			989			(991	)		2			—

Income (Loss) before Income Taxes		1,164			1,033			50			104			(23	)
Income tax benefit (provision)		66			—			4			59			3

Net Income (Loss)		1,230			1,033			54			163			(20	)
Income attributable to noncontrolling interest		—			—			—			—			—

Net Income (Loss) attributable to Tronox Limited	$	1,230		$	1,033		$	54		$	163		$	(20	)

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three months ended June 30, 2012

(Unaudited)

(Millions of U.S. dollars)


	Consolidated		Eliminations		Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	1,144	$	1,037	$	54	$	76		$	(23	)
Other Comprehensive Income (Loss):
Foreign currency translation adjustments		26		—		—		1			25
Retirement and postretirement plans adjustments, net of tax		—		—		—		(17	)		17
Deferred Tax		—		—		—		(3	)		3

Other comprehensive income (loss)		26		—		—		(19	)		45

Total comprehensive income		1,170		1,037		54		57			22

Comprehensive income attributable to noncontrolling interest:
Foreign currency translation adjustments		10		—		—		10			—

Comprehensive income attributable to noncontrolling interest		10		—		—		10			—

Comprehensive income attributable to Tronox Limited	$	1,160	$	1,037	$	54	$	47		$	22

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Six months ended June 30, 2012

(Unaudited)

(Millions of U.S. dollars)


	Consolidated		Eliminations		Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	1,230	$	1,033	$	54	$	163		$	(20	)
Other Comprehensive Income (Loss):
Foreign currency translation adjustments		33		20		—		(1	)		14
Retirement and postretirement plans adjustments, net of tax		—		—		—		(20	)		20
Deferred Tax		—		—		—		(3	)		3

Other comprehensive income (loss)		33		20		—		(24	)		37

Total comprehensive income		1,263		1,053		54		139			17

Comprehensive income attributable to noncontrolling interest:
Foreign currency translation adjustments		10		—		—		10			—

Comprehensive income attributable to noncontrolling interest		10		—		—		10			—

Comprehensive income attributable to Tronox Limited	$	1,253	$	1,053	$	54	$	129		$	17

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six months ended June 30, 2012

(Unaudited)

(Millions of U.S. dollars)


	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Cash Flows from Operating Activities
Net income (loss)	$	1,230		$	1,033		$	54		$	163		$	(20	)
Gain on bargain purchase		(1,055	)		—			(1,055	)		—			—
Other		(222	)		(1,033	)		1,082			333			(604	)

Cash provided by (used in) operating activities		(47	)		—			81			496			(624	)

Cash Flows from Investing Activities:
Capital expenditures		(48	)		—			—			(40	)		(8	)
Cash pain the acquisition of mineral sands business		(1	)		—			(1	)		—			—
Cash received in acquisition of mineral sands business		115			—			115			—			—

Cash provided by (used in) investing activities		66			—			114			(40	)		(8	)

Cash Flows from Financing Activities
Reductions of debt		(554	)		—			—			(421	)		(133	)
Proceeds from borrowings		777			—			—			—			777
Debt issuance costs		(20	)		—			—			—			(20	)
Merger consideration		(193	)		—			(193	)		—			—
Class A ordinary share repurchases		(2	)		—			(2	)		—			—

Cash provided by (used in) financing activities		8			—			(195	)		(421	)		624

Effects of Exchange Rate Changes on Cash and Cash Equivalents		5			—			—			1			4

Net Increase (Decrease) in Cash and Cash Equivalents		32			—			—			36			(4	)
Cash and Cash Equivalents at Beginning of Period		154			—			—			107			47

Cash and Cash Equivalents at End of Period	$	186		$	—		$	—		$	143		$	43