10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2013

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                  to                 

1-35573

(Commission file number)

TRONOX LIMITED

(ACN 153 348 111)

(Exact Name of Registrant as Specified in its Charter)

Western Australia, Australia	98-1026700
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)

One Stamford Plaza

263 Tresser Boulevard, Suite 1100

Stamford, Connecticut 06901

(Address of principal executive offices)

Registrant’s telephone number, including area code: (203) 705-3800

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x	Smaller reporting company	¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

As of October 31, 2013, there were 113,494,096 shares of the Registrant’s Class A ordinary shares and Class B ordinary shares outstanding.

   

Table of Contents

	Page
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)	3
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	41
Item 3. Quantitative and Qualitative Disclosures About Market Risk	50
Item 4. Controls and Procedures	51
PART II – OTHER INFORMATION
Item 1. Legal Proceedings	52
Item 1A. Risk Factors	52
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	52
Item 3. Defaults Upon Senior Securities	52
Item 4. Mine Safety Disclosures	52
Item 5. Other Information	52
Item 6. Exhibits	53
SIGNATURES	54

   

 2 

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

	Page
Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2013 and 2012	4
Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2013 and 2012	5
Condensed Consolidated Balance Sheets as of September 30, 2013 and December 31, 2012	6
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2013 and 2012	7
Condensed Consolidated Statements of Shareholders’ Equity for the Nine Months Ended September 30, 2013 and 2012	8
Notes to Condensed Consolidated Financial Statements	9

 3 

TRONOX LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Millions of U.S. dollars, except share and per share data)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Net Sales	$	491		$	487		$	1,486		$	1,350
Cost of goods sold		437			444			1,350			1,025
Gross Margin		54			43			136			325
Selling, general and administrative expenses		45			60			137			207
Income (Loss) from Operations		9			(17	)		(1	)		118
Interest and debt expense		(32	)		(18	)		(94	)		(40	)
Other income (expense)		(10	)		—			18			(4	)
Gain on bargain purchase		—			—			—			1,055
Income (Loss) before Income Taxes		(33	)		(35	)		(77	)		1,129
Income tax benefit (provision)		(8	)		34			(10	)		100
Net Income (Loss)	$	(41	)	$	(1	)	$	(87	)	$	1,229
Net income attributable to noncontrolling interest		8			2			32			2
Net Income (Loss) attributable to Tronox Limited	$	(49	)	$	(3	)	$	(119	)	$	1,227
Income (Loss) per Share, Basic and Diluted:
Basic	$	(0.43	)	$	(0.03	)	$	(1.05	)	$	12.95
Diluted	$	(0.43	)	$	(0.03	)	$	(1.05	)	$	12.59
Weighted Average Shares Outstanding (in thousands):
Basic		113,459			122,352			113,389			94,193
Diluted		113,459			122,352			113,389			96,903

See notes to unaudited condensed consolidated financial statements.

 4 

TRONOX LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(Millions of U.S. dollars)

	Three Months Ended September 30,						Nine Months Ended  September 30,
	2013			2012			2013			2012
Net Income (Loss):
Net Income (Loss)	$	(41	)	$	(1	)	$	(87	)	$	1,229
Other Comprehensive Income (Loss):
Foreign currency translation adjustments		(5	)		14			(206	)		47
Amortization of actuarial gain, net of taxes		1			—			1			—
Other comprehensive income (loss)		(4	)		14			(205	)		47
Total comprehensive income (loss)		(45	)		13			(292	)		1,276
Comprehensive income (loss) attributable to noncontrolling interest:
Net income		8			2			32			2
Foreign currency translation adjustments		(6	)		3			(57	)		13
Comprehensive income (loss) attributable to noncontrolling interest		2			5			(25	)		15
Comprehensive income (loss) attributable to Tronox Limited	$	(47	)	$	8		$	(267	)	$	1,261

See notes to unaudited condensed consolidated financial statements.

 5 

TRONOX LIMITED

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Millions of U.S. dollars, except share and per share data)

	September 30, 2013			December 31, 2012
Current Assets
Cash and cash equivalents	$	1,457		$	716
Accounts receivable, net of allowance for doubtful accounts of $1 million and $3 million,  respectively		373			391
Inventories		734			914
Prepaid and other assets		44			38
Deferred tax assets		96			114
Total Current Assets		2,704			2,173
Noncurrent Assets
Property, plant and equipment, net		1,276			1,423
Mineral leaseholds, net		1,269			1,439
Intangible assets, net		306			326
Long-term deferred tax assets		148			91
Other long-term assets, net		82			59
Total Assets	$	5,785		$	5,511
Current Liabilities
Accounts payable	$	141		$	189
Accrued liabilities		149			209
Short-term debt		—			30
Long-term debt due within one year		18			10
Income taxes payable		14			24
Deferred tax liabilities		1			5
Total Current Liabilities		323			467
Noncurrent Liabilities
Long-term debt		2,386			1,605
Pension and postretirement healthcare benefits		178			176
Asset retirement obligations		99			106
Long-term deferred tax liabilities		220			222
Other long-term liabilities		58			53
Total Liabilities		3,264			2,629
Contingencies and Commitments
Shareholders’ Equity
Class A ordinary shares, par value $0.01 — 64,349,504 shares issued and 62,308,497 shares outstanding at September 30, 2013 and 63,413,288 shares issued and 62,103,989 shares outstanding at December 31, 2012		1			1
Class B ordinary shares, par value $0.01 — 51,154,280 shares issued and outstanding at September 30, 2013 and December 31, 2012		—			—
Capital in excess of par value		1,446			1,429
Retained earnings		1,109			1,314
Accumulated other comprehensive loss		(243	)		(95	)
Total Shareholders’ Equity		2,313			2,649
Noncontrolling interest		208			233
Total Equity		2,521			2,882
Total Liabilities and Equity	$	5,785		$	5,511

See notes to unaudited condensed consolidated financial statements.

 6 

TRONOX LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Millions of U.S. dollars)

	Nine Months Ended September30,
	2013			2012
Cash Flows from Operating Activities
Net income (loss)	$	(87	)	$	1,229
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization		238			124
Deferred income taxes		14			(105	)
Share-based compensation expense		16			29
Amortization of debt issuance costs and debt discounts		7			7
Pension and postretirement healthcare benefit expense, net		7			4
Gain on bargain purchase		—			(1,055	)
Other noncash items affecting net income (loss)		(5	)		131
Changes in assets and liabilities (net of effects of acquisition):
(Increase) decrease in accounts receivable		—			117
(Increase) decrease in inventories		106			(217	)
(Increase) decrease in prepaid and other assets		(7	)		7
Increase (decrease) in accounts payable and accrued liabilities		(42	)		(140	)
Increase (decrease) in income taxes payable		(23	)		(24	)
Other, net		(14	)		(32	)
Cash provided by operating activities		210			75
Cash Flows from Investing Activities
Capital expenditures		(104	)		(91	)
Cash received in acquisition of minerals sands business, net of cash paid		—			114
Cash (used in) provided by investing activities		(104	)		23
Cash Flows from Financing Activities
Repayments of debt		(185	)		(583	)
Proceeds from borrowings		945			1,690
Debt issuance costs		(29	)		(20	)
Dividends paid		(86	)		(32	)
Merger consideration		—			(193	)
Class A ordinary share repurchases, including commissions paid		—			(326	)
Shares purchased for the Employee Participation Program		—			(15	)
Proceeds from conversion of warrants		1			1
Cash provided by financing activities		646			522
Effects of Exchange Rate Changes on Cash and Cash Equivalents		(11	)		—
Net Increase in Cash and Cash Equivalents		741			620
Cash and Cash Equivalents at Beginning of Period		716			154
Cash and Cash Equivalents at End of Period	$	1,457		$	774

See notes to unaudited condensed consolidated financial statements.

 7 

TRONOX LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

(Millions of U.S. dollars)

	Tronox Limited Class A Ordinary Shares		Tronox Limited Class B Ordinary Shares		Capital in Excess of par Value		Retained Earnings			Accumulated Other Comprehensive Loss			Total Shareholders’ Equity			Non- controlling Interest			Total Equity
Balance at December 31, 2012	$	1	$	—	$	1,429	$	1,314		$	(95	)	$	2,649		$	233		$	2,882
Net income (loss)		—		—		—		(119	)		—			(119	)		32			(87	)
Other comprehensive loss		—		—		—		—			(148	)		(148	)		(57	)		(205	)
Share-based compensation		—		—		16		—			—			16			—			16
Warrants exercised		—		—		1		—			—			1			—			1
Class A and Class B dividends declared		—		—		—		(86	)		—			(86	)		—			(86	)
Balance at September 30, 2013	$	1	$	0	$	1,446	$	1,109		$	(243	)	$	2,313		$	208		$	2,521

	Tronox Limited Class A Ordinary Shares		Tronox Limited Class B Ordinary Shares		Capital in Excess of par Value			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Shares			Total Shareholders’ Equity			Non- controlling Interest		Total Equity
Balance at December 31, 2011	$	—	$	—	$	579		$	242		$	(57	)	$	(12	)	$	752		$	—	$	752
Fair value of noncontrolling interest on Transaction Date		—		—		—			—			—			—			—			233		233
Net income(loss)		—		—		—			1,227			—			—			1,227			2		1,229
Other comprehensive income (loss)		—		—		—			—			34			—			34			13		47
Share-based compensation		—		—		2			—			—			—			2			—		2
Merger consideration paid		—		—		(193	)		—			—			—			(193	)		—		(193	)
Issuance of Tronox Limited shares		—		—		1,370			—			—			—			1,370			—		1,370
Class A Shares repurchased		—		—		(326	)		—			—			—			(326	)		—		(326	)
Shares purchased for the Employee Participation Plan		—		—		(15	)		—			—			—			(15	)		—		(15	)
Issuance of Tronox Limited shares in share-split		1		—		—			(1	)		—			—			—			—		—
ClassA and Class B dividends declared		—		—		—			(32	)		—			—			(32	)		—		(32	)
Tronox Incorporated warrants exercised		—		—		1			—			—			—			1			—		1
Tronox Incorporated share-based compensation		—		—		27			—			—			(7	)		20			—		20
Tronox Incorporated shares vested/cancelled		—		—		(19	)		—			—			19			—			—		—
Balance at September 30, 2012	$	1	$	—	$	1,426		$	1,436		$	(23	)	$	—		$	2,840		$	248	$	3,088

See notes to unaudited condensed consolidated financial statements.

 8 

TRONOX LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Millions of U.S. dollars, except share and per share data or unless otherwise noted)

1. The Company

Tronox Limited, a public limited company registered under the laws of the State of Western Australia, Australia, and its subsidiaries (collectively referred to as “Tronox” or the “Company”) is a global leader in the production and marketing of high grade titanium feedstock and titanium dioxide pigment (“TiO₂”). The Company’s world-class, high performance TiO₂ products are critical components of everyday applications such as paint and other coatings, plastics, paper and other applications. The Company’s mineral sands business consists primarily of three product streams—titanium feedstock, zircon and pig iron. Titanium feedstock is primarily used to manufacture TiO₂. Zircon, a hard, glossy mineral, is used for the manufacture of ceramics, refractories, TV screen glass and a range of other industrial and chemical products. Pig iron is a metal material used in the steel and metal casting industries to create wrought iron, cast iron and steel. Tronox operates three TiO₂ pigment production facilities at the following locations: Hamilton, Mississippi; Botlek, The Netherlands; and Kwinana, Western Australia, and operates three separate mining and beneficiation operations: KwaZulu-Natal (“KZN”) Sands and Namakwa Sands located in South Africa, and Cooljarloo Sands located in Western Australia.

Tronox Limited was formed on September 21, 2011 for the purpose of the Transaction (as defined below). Prior to the completion of the Transaction, Tronox Limited was wholly-owned by Tronox Incorporated, and had no operating assets or operations. On September 25, 2011, Tronox Incorporated, a Delaware corporation formed on May 17, 2005 (“Tronox Incorporated”), entered into a definitive agreement (as amended, the “Transaction Agreement”) with Exxaro Resources Limited (“Exxaro”) and certain of its affiliated companies, to acquire 74% of Exxaro’s mineral sands operations, along with its 50% share of the Tiwest Joint Venture (the “Transaction”). On June 15, 2012, the date of the Transaction (the “Transaction Date”), the existing business of Tronox Incorporated was combined with the mineral sands business in an integrated series of transactions whereby Tronox Limited became the parent company.

2. Basis of Presentation

The accompanying condensed consolidated financial statements are unaudited, and have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements, and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. The December 31, 2012 balance sheet was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP for complete financial statements.

The unaudited condensed consolidated balance sheets as of September 30, 2013 and December 31, 2012 relate to Tronox Limited. The unaudited condensed consolidated statements of operations and cash flows for the three and nine months ended September 30, 2013 and three months ended September 30, 2012 reflect the consolidated operating results of Tronox Limited. The unaudited condensed consolidated statements of operations and cash flows for the nine months ended September 30, 2012, reflect the consolidated operating results of Tronox Incorporated prior to June 15, 2012, and, from June 15, 2012 through September 30, 2012, reflect the consolidated operating results of Tronox Limited.

The Company accounted for the Transaction under Accounting Standards Codification (“ASC”) 805, Business Combinations (“ASC 805”). Under the acquisition method of accounting, each tangible and separately identifiable intangible asset acquired and liability assumed was recorded based on its preliminary estimated fair value on the Transaction Date. The excess of the fair value of the net assets acquired over the value of consideration was recorded as an initial bargain purchase gain. Subsequent to the Transaction, the Company made adjustments to its initial valuation. Such adjustments were recorded on the Transaction Date, which has resulted in revised unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2012. The measurement period ended in June 2013.

 9 

Prior to the Transaction Date, Tronox Incorporated operated the Tiwest Joint Venture with Exxaro Australia Sands Pty Ltd. Tronox Incorporated accounted for its share of the Tiwest Joint Venture’s assets that were jointly controlled and its share of liabilities for which it was jointly responsible on a proportionate gross basis in its unaudited Condensed Consolidated Balance Sheet. Additionally, Tronox Incorporated accounted for the revenues generated from its share of the products sold and its share of the expenses of the joint venture on a gross basis in its unaudited Condensed Consolidated Statements of Operations. As of the Transaction Date, the Company owns 100% of the Tiwest Joint Venture operations. As such, the unaudited Condensed Consolidated Balance Sheets at September 30, 2013 and December 31, 2012 include 100% of the Tiwest operations assets and liabilities. The unaudited Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2013 and three months ended September 30, 2012 reflect 100% of the revenue and expenses of the Tiwest operations, while the unaudited Condensed Consolidated Statement of Operations for the nine months ended September 30, 2012 reflects Tronox Incorporated’s revenues generated from its share of the products sold and its share of the expenses of the joint venture on a gross basis prior to June 15, 2012, and, from June 15, 2012 through September 30, 2012 reflect 100% of the revenues and expenses of the Tiwest operations.

In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. It is at least reasonably possible that the effect on the financial statements of a change in estimate within one year of the date of the financial statements due to one or more future confirming events could have a material effect on the financial statements. The consolidated results of operations for interim periods are not necessarily indicative of results for the entire year.

Certain prior period amounts have been reclassified to conform to the manner and presentation in the current period. Such reclassifications did not have an impact on the Company’s net income or consolidated results of operations.

3. Recent Accounting Pronouncements

In March 2013, the Financial Accounting Standards Board (the “FASB”) issued accounting standards update (“ASU”) 2013-5, Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (“ASU 2013-5”), which addresses the treatment of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets within a foreign entity. ASU 2013-5 is effective prospectively for periods beginning after December 15, 2013; however early adoption is permitted. The adoption of this guidance is not anticipated to have a significant impact on the consolidated financial statements.

During 2013, the Company adopted ASU 2013-2, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires the presentation of the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income, if the item is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. The adoption of this guidance did not have a significant impact on the consolidated financial statements.

During 2013, the Company adopted ASU 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, to clarify previously issued guidance related to derivatives that are either offset or subject to an enforceable master netting arrangement or similar agreement. The adoption of this guidance did not have a significant impact on the consolidated financial statements.

 10 

4. Acquisition of the Mineral Sands Business

On September 25, 2011, Tronox Incorporated entered into the Transaction Agreement with Exxaro to acquire 74% of its South African mineral sands operations, including its Namakwa Sands and KZN Sands mines, separation facilities and slag furnaces, along with its 50% share of the Tiwest Joint Venture. On the Transaction Date, the existing business of Tronox Incorporated was combined with the mineral sands business under Tronox Limited. The Transaction was completed in two principal steps. First, Tronox Incorporated became a subsidiary of Tronox Limited, with Tronox Incorporated shareholders receiving one Class A ordinary share (“Class A Share”) and $12.50 in cash (“Merger Consideration”) for each Tronox Incorporated common share. Second, Tronox Limited issued 9,950,856 Class B ordinary shares (“Class B Shares”) to Exxaro and one of its subsidiaries in consideration for the mineral sands business.

Under the terms of the Transaction Agreement, Exxaro agreed that for a three-year period after the completion of the Transaction, it would not engage in any transaction or other action, that would result in its beneficial ownership of the voting shares of Tronox Limited to exceed 45% of the total issued shares of Tronox Limited. In addition, the agreement prohibits Exxaro from selling any shares in the same three-year period. At September 30, 2013, Exxaro held approximately 44.4% of the voting securities of Tronox Limited.

In connection with the Transaction, Exxaro and its subsidiaries retained a 26% ownership interest in each of Tronox KZN Sands Pty Ltd and Tronox Mineral Sands Pty Ltd in order to comply with the ownership requirements of the Black Economic Empowerment legislation in South Africa. Exxaro is entitled to exchange this interest for approximately 3.2% in additional Class B Shares under certain circumstances (i.e., the earlier of the termination of the Empowerment Period or the tenth anniversary of completion of the Transaction). The Company accounts for such ownership as “Noncontrolling Interest” on the unaudited condensed consolidated financial statements.

5. Accounts Receivable

Accounts receivable, net of allowance for doubtful accounts, consisted of the following:

	September 30, 2013			December 31, 2012
Trade receivables	$	358		$	371
Other		16			23
Gross		374			394
Allowance for doubtful accounts		(1	)		(3	)
Net	$	373		$	391

6. Inventories

Inventories consisted of the follows:

	September 30, 2013		December 31, 2012
Raw materials	$	184	$	221
Work-in-process		68		99
Finished goods (1)		344		477
Materials and supplies, net (2)		138		117
Total	$	734	$	914

(1)	Includes inventory on consignment to others of approximately $47 million and $42 million at September 30, 2013 and December 31, 2012, respectively.
(2)	Materials and supplies consist of processing chemicals, maintenance supplies and spare parts, which will be consumed directly and indirectly in the production of the Company’s products.

 11 

7. Property, Plant and Equipment, Net

Property, plant and equipment, net of accumulated depreciation and amortization, consisted of the following:

	September 30, 2013			December 31, 2012
Land and land improvements	$	80		$	80
Buildings		188			194
Machinery and equipment		1,143			1,158
Construction-in-progress		128			153
Furniture and fixtures		23			7
Other		9			6
Gross		1,571			1,598
Less accumulated depreciation and amortization		(295	)		(175	)
Net	$	1,276		$	1,423

Depreciation expense related to property, plant and equipment for the three months ended September 30, 2013 and 2012 was $44 million and $45 million, respectively, and for nine months ended September 30, 2013 and 2012 was $134 million and $81 million, respectively.

8. Mineral Leaseholds, Net

Mineral leaseholds, net of accumulated depletion, consisted of the following:

	September 30, 2013			December 31, 2012
Mineral leaseholds	$	1,412		$	1,502
Less accumulated depletion		(143	)		(63	)
Net	$	1,269		$	1,439

Depletion expense related to mineral leaseholds for the three months ended September 30, 2013 and 2012 was $42 million and $19 million, respectively, and for nine months ended September 30, 2013 and 2012 was $84 million and $24 million, respectively.

9. Intangible Assets, Net

The gross cost and accumulated amortization of intangible assets, by major intangible asset category, were as follows:

	September 30, 2013
	Gross Cost		Accumulated Amortization			Net
Customer relationships	$	294	$	(54	)	$	240
TiO2 technology		32		(4	)		28
Internal-use software		39		(5	)		34
Other		9		(5	)		4
Total	$	374	$	(68	)	$	306

 12 

	December 31, 2012
	Gross Cost		Accumulated Amortization			Net
Customer relationships	$	294	$	(39	)	$	255
TiO2 technology		32		(3	)		29
Internal-use software		38		(2	)		36
Other		9		(3	)		6
Total	$	373	$	(47	)	$	326

Amortization expense related to intangible assets for the three months ended September 30, 2013 and 2012 was $6 million and $7 million, respectively, and for nine months ended September 30, 2013 and 2012 was $20 million and $19 million, respectively.

Estimated future amortization expense related to intangible assets was as follows:

	Future Amortization
2013	$	7
2014		27
2015		26
2016		25
2017		25
Thereafter		196
Total	$	306

10. Accrued Liabilities

Accrued liabilities consisted of the following:

	September 30, 2013		December 31, 2012
Taxes other than income taxes	$	57	$	58
Employee-related costs and benefits		47		45
Sales rebates		19		13
Unfavorable sales contracts		12		64
Interest		7		22
Other		7		7
Total	$	149	$	209

11. Debt

Short-term Debt

Short-term debt consisted of the following:

	Maturity Date		September 30, 2013		December 31, 2012
UBS Revolver		6/18/17	$	—	$	—
ABSA Revolver (1)		6/14/17		—		30
Total			$	—	$	30

(1) Average effective interest rate of 8.5% during both 2013 and 2012.

 13 

UBS Revolver

On June 18, 2012, in connection with the closing of the Transaction, the Company entered into a global senior secured asset-based syndicated revolving credit agreement with UBS AG (the “UBS Revolver”). The UBS Revolver provides the Company with a committed source of capital with a principal borrowing amount of up to $300 million, subject to a borrowing base. In connection with its entry into the Amended and Restated Credit Agreement on March 19, 2013, the Company amended the UBS Revolver to allow for the increased size of the Term Loan over the Term Facility (see “Term Facility” and “Term Loan” below). At September 30, 2013, the Company had no amounts drawn on the UBS Revolver, and its available borrowing base was $267 million.

ABSA Revolving Credit Facility

In connection with the Transaction, the Company entered into a R900 million (approximately $90 million as of September 30, 2013) revolving credit facility with ABSA Bank Limited acting through its ABSA Capital Division (the “ABSA Revolver”). At December 31, 2012, the Company had drawn down R250 million (approximately $30 million), which was repaid during the first quarter of 2013. At September 30, 2013, the Company had no amounts drawn on the ABSA Revolver.

Long-Term Debt

Long-term debt consisted of the following:

	Original Principal		Maturity Date		September 30, 2013			December 31, 2012
Term Loan, net of unamortized discount of $11 million at September 30, 2013 (1)	$	1,500		3/19/2020	$	1,485		$	—
Notes	$	900		8/15/2020		900			900
Term Facility, net of unamortized discount of $6 million at December 30, 2012 (2)	$	700		2/8/2018		—			691
Co-generation Unit Financing Arrangement	$	16		2/1/2016		7			10
Lease financing						12			14
Total debt						2,404			1,615
Less: Long-term debt due in one year						(18	)		(10	)
Long-term debt					$	2,386		$	1,605

(1)	Average effective interest rate of 5.0% during 2013.
(2)	Average effective interest rate of 5.0% during both 2013 and 2012.

At September 30, 2013, the scheduled maturities of the Company’s long-term debt were as follows:

	Total Debt
2013	$	5
2014		18
2015		18
2016		15
2017		15
Thereafter		2,344
Total		2,415
Remaining accretion of discount associated with the Term Loan		(11	)
Total debt	$	2,404

 14 

Term Loan

On March 19, 2013, Tronox Limited’s wholly-owned subsidiary, Tronox Pigments (Netherlands) B.V., Tronox Limited, and certain subsidiaries of Tronox Limited named as guarantors, entered into an Amended and Restated Credit and Guaranty Agreement with Goldman Sachs Bank USA, as Administrative Agent and Collateral Agent, and Goldman Sachs Bank USA, UBS Securities LLC, Credit Suisse Securities (USA) LLC and RBC Capital Markets, as Joint Lead Arrangers, Joint Bookrunners and Co-Syndication Agents. Pursuant to the Amended and Restated Credit Agreement, the Company obtained a $1.5 billion senior secured term loan (the “Term Loan”), which matures in March 2020. The terms of the Amended and Restated Credit Agreement are substantially similar to the Company’s prior Term Facility (defined below). The Term Loan was issued net of an original issue discount of $7 million, or 0.5% of the principal balance. During the three and nine months ended September 30, 2013, the Company made principal repayments of $4 million.

The Term loan bears interest at the option of Tronox at either i) 2.5% plus the base rate defined as the greater of the prime lending rate quoted in the print edition of The Wall Street Journal or the Federal Funds Effective rate in effect on such day plus one half of 1%; provided, however, that the Base Rate is not less than 2% per annum or ii) 3.5% plus the greater of the 3 month LIBOR Eurodollar rate or 1%.   

Notes

On August 20, 2012, Tronox Limited’s wholly-owned subsidiary, Tronox Finance LLC, issued $900 million aggregate principal amount of 6.375% senior notes due 2020 (the “Existing Notes”) at par value. The Existing Notes were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act.

During the second quarter, the Company filed a Registration Statement on Form S-4 for $900 million in aggregate principal amount of 6.375% senior notes due 2020 (the “New Notes”) in exchange for the Existing notes. The New Notes are substantially identical to the Existing Notes. On September 17, 2013, Tronox Finance issued the New Notes in exchange for the Existing Notes (together the “Notes”). As of September 20, 2013, there was $900 million in aggregate principal amount of New Notes outstanding and less than $1 million in aggregate amount of Existing Notes outstanding.

The Notes bear interest semiannually at a rate equal to 6.375%, and are fully and unconditionally guaranteed on a senior, unsecured basis by Tronox Limited and certain of its subsidiaries. The Notes are redeemable at any time at the Company’s discretion.

Term Facility

On February 8, 2012, Tronox Incorporated’s wholly-owned subsidiary, Tronox Pigments (Netherlands) B.V., entered into a term loan facility with Goldman Sachs Bank USA comprised of a $550 million Senior Secured Term Loan (the “Senior Secured Term Loan”) and a $150 million Senior Secured Delayed Draw Term Loan (the “Senior Secured Delayed Draw” together, the “Term Facility”). The Term Facility was issued net of an original issue discount of $7 million, or 1% of the initial principal amount, which was being amortized over the life of the Term Facility. On June 14, 2012, in connection with the closing of the Transaction, Tronox Pigments (Netherlands) B.V. drew down the $150 million Senior Secured Delayed Draw. During the nine months ended September 30, 2012, the Company made principal repayments of $2 million.

On February 28, 2013, Tronox Pigments (Netherlands) B.V. repaid the outstanding principal balance of $149 million, plus interest, related to the $150 million Senior Secured Delayed Draw. In accordance with ASC 470, Debt (“ASC 470”), the Company accounted for such repayment as an extinguishment of debt. As such, the Company recognized a loss on the early extinguishment of debt of $4 million related to the allocated portion of the unamortized original issue discount and debt issuance costs, which is recorded in “Other income (expense)” on the unaudited Condensed Consolidated Statements of Operations.

 15 

The Company allocated these amounts between the $550 million Senior Secured Term Loan and the $150 million Senior Secured Delayed Draw as follows:

	Outstanding Balance		Percentage of Outstanding Balance			Allocation of Unamortized Costs		Loss Extinguishment of Debt
Senior Secured Term Loan	$	547		79	%	$	16	$	—
Senior Secured Delayed Draw		149		21	%		4		4
Total	$	696		100	%	$	20	$	4

In accordance with ASC 470, the outstanding principal balance of the Senior Secured Term Loan of $547 million, which became part of the Term Loan, was accounted for as a debt modification. As such, the unamortized original issue discount of $5 million and debt issuance costs of $11 million related to the Term Facility are being amortized over the life of the Term Loan.

Co-generation Unit Financing Arrangement

In March 2011, in order to finance its share of an asset purchased for the Tiwest Joint Venture, Tronox Incorporated incurred debt totaling $8 million. In connection with the Transaction, the Company acquired the remaining 50% undivided interest in the co-generation plant from Exxaro, along with its debt of $6 million. Under the financing arrangement, monthly payments are required, and interest accrues on the outstanding balance at the rate of 6.5% per annum. The Company made principal repayments of $1 million during both the three months ended September 30, 2013 and 2012 and $2 million during both the nine months ended September 30, 2013 and 2012.

Lease Financing

In connection with the Transaction, the Company acquired capital lease obligations in South Africa, which are payable through 2032 at a weighted average interest rate of approximately 17%. At September 30, 2013, such obligations had a net book value of assets recorded under capital leases aggregating $7 million. The Company made payments of less than $1 million for both the three months ended September 30, 2013 and 2012, and $2 million and less than $1 million for the nine months ended September 30, 2013 and 2012, respectively.

Fair Value

The Company’s debt is recorded at historical amounts. At September 30, 2013, the fair value of the Term Loan was $1,508 million. At September 30, 2013 and December 31, 2012, the fair value of the Notes was $896 million and $910 million, respectively. At December 31, 2012, the fair value of the Term Facility was $709 million. The Company determined the fair value of the Term Loan, the Notes and the Term Facility using Bloomberg market prices. The fair value hierarchy for the Term Loan and the Notes is a Level 1 input.

Debt Covenants

At September 30, 2013, the Company had financial covenants in the UBS Revolver, the ABSA Revolver and the Term Loan; however, only the ABSA Revolver had a financial maintenance covenant.

The terms of the Amended and Restated Credit Agreement are substantially similar to the Company’s prior Credit and Guaranty Agreement with Goldman Sachs Bank USA, dated February 8, 2012, except that the Amended and Restated Credit Agreement (i) eliminates financial maintenance covenants (ii) permits, subject to certain conditions, incurrence of additional senior secured debt up to a leverage ratio of 2:1, (iii) increases the Company’s ability to incur debt in connection with permitted acquisitions and its ability to incur unsecured debt, and (iv) allows for the payment of a $0.25 per share dividend each fiscal quarter. Otherwise, the terms of the Amended and Restated Credit Agreement provide for customary representations and warranties, affirmative and negative covenants and events of default. The terms of the covenants, subject to certain exceptions, restrict, among other things: (i) debt incurrence; (ii) lien incurrence; (iii) investments, dividends and distributions; (iv) disposition of assets and subsidiary interests; (v) acquisitions; (vi) sale and leaseback transactions; and (vii) transactions with affiliates and shareholders.

 16 

The Term Facility and the UBS Revolver are subject to an intercreditor agreement pursuant to which the lenders’ respective rights and interests in the security are set forth. The Company was in compliance with its financial covenants at September 30, 2013.

The Company has pledged the majority of its U.S. assets and certain assets of its non-U.S. subsidiaries in support of its outstanding debt.

Interest and Debt Expense

Interest and debt expense consisted of the following:

	Three Months Ended  September 30,					Nine Months Ended   September 30,
	2013			2012		2013			2012
Interest expense on debt	$	32		$	15	$	88		$	29
Amortization of deferred debt issuance costs (1)		1			2		5			8
Other		—			1		4			4
Capitalized interest		(1	)		—		(3	)		(1	)
Interest and debt expense	$	32		$	18	$	94		$	40

(1) In connection with obtaining debt, the Company incurred debt issuance costs. Such costs are recorded in “Other long-term assets” on the unaudited Condensed Consolidated Balance Sheets,” and are being amortized through the maturity date.

Deferred debt issuance costs and the related amortization expense was as follows:

					Amortization Expense
	Original Deferred Debt Issuance Cost		Balance at September 30,  2013		Three Months Ended September 30,				Nine Months Ended September 30,
					2013		2012		2013		2012
Term Loan	$	29	$	27	$	1	$	—	$	2	$	—
Notes		18		16		—		—		1		—
Term Facility		17		10		—		1		1		3
Other		8		6		—		1		1		5
Total			$	59	$	1	$	2	$	5	$	8

 17 

12. Asset Retirement Obligations

To the extent a legal obligation exists, an asset retirement obligation (“ARO”) is recorded at its estimated fair value, and accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. Fair value is measured using expected future cash outflows discounted at the Company’s credit-adjusted risk-free interest rate. The Company classifies accretion expense related to asset retirement obligations as a production cost, which is included in “Cost of goods sold” on the unaudited Condensed Consolidated Statements of Operations.

The changes in AROs were as follows:

		Three Months Ended September 30,				Nine Months Ended September 30,
		2013		2012		2013			2012
Beginning balance	$	103	$	96	$	113		$	30
Additions		—		—		2			6
Accretion expense		1		1		5			2
Settlements/payments		1		—		(2	)		(1	)
Remeasurement/translation		1		2		(12	)		5
Changes in estimates, including cost and timing of cash flows		—		3		—			3
AROs acquired in the acquisition of mineral sands business		—		—		—			57
Ending balance	$	106	$	102	$	106		$	102
Current portion included in accrued liabilities	$	7	$	2	$	7		$	2
Noncurrent portion	$	99	$	100	$	99		$	100

Environmental Rehabilitation Trust

The Company has established an environmental rehabilitation trust in respect of the prospecting and mining operations in South Africa in accordance with applicable regulations. The trustees of the fund are appointed by the Company, and consist of sufficiently qualified Tronox Limited employees capable of fulfilling their fiduciary duties. The environmental rehabilitation trust receives, holds, and invests funds for the rehabilitation or management of environmental impacts associated with mining and exploration activities. The contributions are aimed at providing sufficient funds at date of estimated closure of mining activities to address the rehabilitation and environmental impacts. Funds accumulated for a specific mine or exploration project can only be utilized for the rehabilitation and environmental impacts of that specific mine or project. Currently, the funds are invested in highly liquid, short-term instruments; however, the investment growth strategy has not been finalized. If a mine or exploration project withdraws from the fund for whatever valid reason, the funds accumulated for such mine or exploration project are transferred to a similar fund approved by management. At September 30, 2013 and December 31, 2012, the environmental rehabilitation trust assets were $19 million and $20 million, respectively, which were recorded in “Other long-term assets” on the unaudited Condensed Consolidated Balance Sheets.

13. Derivative Instruments

The Company manufactures and markets its products in a number of countries throughout the world and, as a result, is exposed to changes in foreign currency exchange rates, particularly in South Africa, Australia and The Netherlands. Costs in South Africa and Australia are primarily incurred in local currencies, while the majority of revenues are in U.S. dollars. In Europe, the majority of revenues and costs are in the local currency. This leaves the Company exposed to movements in the South African Rand and the Australian dollar versus the U.S. dollar. In order to manage this risk, the Company has entered into currency forward contracts to buy and sell foreign currencies as “economic hedges” for these foreign currency transactions.  

At September 30, 2013, the Company had currency forward contracts to exchange an aggregate $17 million for an equivalent value of South African Rand and a currency forward contract to exchange R6 million for an equivalent value of U.S. dollars.  These contracts mature at various dates in the fourth quarter of 2013.

 18 

The Company’s currency forward contracts are not designated for hedge accounting treatment under ASC 815, Derivatives and Hedging, (“ASC 815”). As such, changes in the fair value are recorded in “Other income (expense)” on the unaudited Condensed Consolidated Statements of Operations.

The fair values of derivative instruments at September 30, 2013 were as follows:

		Fair Value
Currency forward contracts	Other current assets	$	1

Gains (losses) recorded in “Other income (expense)” on the unaudited Condensed Consolidated Statements of Operations consisted of the following:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Currency forward contracts	$	1	$	—	$	1	$	—

14. Commitments and Contingencies

Purchase Commitments — At September 30, 2013, purchase commitments were $42 million for the remainder of 2013, $163 million for 2014, $79 million for 2015, $40 million for 2016, $33 million for 2017 and $123 million thereafter.

Letters of Credit — At September 30, 2013, the Company had outstanding letters of credit, bank guarantees and performance bonds of approximately $45 million, of which $25 million in letters of credit were issued under the UBS Revolver and $18 million were bank guarantees issued by ABSA.

Legal — During 2013, the Western Australia Office of State Revenue (the “OSR”) reviewed their technical position on the imposition of stamp duty on the transfer of Tronox Incorporated’s shares related to Kerr-McGee’s restructuring in 2002 and from the share transfer related to the spinoff of Tronox Incorporated from Kerr-McGee in 2005. On October 20, 2012, the OSR rendered its assessment of $5 million, comprised of a primary stamp duty liability of $3 million and penalty tax of $2 million. As required by law, the Company paid the entire amount of the assessment in January 2013. On October 11, 2013, the OSR denied the Company’s objection to the interest penalty. The Company is assessing its future options with respect to this matter.

Environmental Contingencies — In accordance with ASC 450, Contingencies, the Company recognizes a loss and records an undiscounted liability when litigation has commenced or a claim or an assessment has been asserted or, based on available information, commencement of litigation or assertion of a claim or assessment is probable, and the associated costs can be estimated. It is not possible for the Company to reliably estimate the amount and timing of all future expenditures related to environmental matters because, among other reasons, environmental laws and regulations, as well as enforcement policies and remediation levels, are continually changing, and the outcome of court proceedings, alternative dispute resolution proceedings (including mediation) and discussions with regulatory agencies are inherently uncertain.

The Company believes that it has reserved adequately for the probable and reasonably estimable costs of known contingencies. There is no environmental litigation, claim or assessment that has been asserted nor is there any probability of an assessment or a claim for which the Company has not recorded a liability. However, additions to the reserves may be required as additional information is obtained that enables the Company to better estimate its liabilities. The Company cannot reliably estimate the amount of future additions to the reserves at this time. In certain situations, reserves may be probable but not estimable. Additionally, sites may be identified in the future where the Company could have potential liability for environmental related matters. If a site is identified, the Company will evaluate to determine what reserve, if any, should be established.

 19 

Other Matters — From time to time, the Company may be party to a number of legal and administrative proceedings involving environmental and/or other matters in various courts or agencies. These proceedings, individually and in the aggregate, may have a material adverse effect on the Company. These proceedings may be associated with facilities currently or previously owned, operated or used by the Company and/or its predecessors, some of which may include claims for personal injuries, property damages, cleanup costs and other environmental matters. Current and former operations of the Company may also involve management of regulated materials, which are subject to various environmental laws and regulations including the Comprehensive Environmental Response Compensation and Liability Act (“CERCLA”), the Resource Conservation and Recovery Act (the “RCRA”) or state equivalents. Similar environmental laws and regulations and other requirements exist in foreign countries in which the Company operates.

15. Shareholders’ Equity

The changes in outstanding shares for the nine months ended September 30, 2013 were as follows:

Tronox Limited Class A Shares outstanding:
Balance at December 31, 2012	62,103,989
Shares issued for share-based compensation	73,456
Shares issued for warrants exercised	81,052
Shares issued for options exercised	50,000
Balance at September 30, 2013	62,308,497
Tronox Limited Class B Shares outstanding:
Balance at December 31, 2012	51,154,280
Balance at September 30, 2013	51,154,280

Dividends Declared

On August 6, 2013, the Board declared a quarterly dividend of $0.25 per share to holders of our Class A Shares and Class B Shares at the close of business on August 19, 2013, totaling $29 million, which was paid on September 4, 2013. On May 7, 2013, the Board declared a quarterly dividend of $0.25 per share which was paid on May 28, 2013 to holders of Class A Shares and Class B Shares at close of business on May 20, 2013. On February 19, 2013, the Board declared a quarterly dividend of $0.25 per share which was paid on March 20, 2013 to holders of our Class A Shares and Class B Shares at close of business on March 6, 2013. During the nine months ended September 30, 2013, the Company paid dividends of $86 million.

Liquidation of a Subsidiary

On September 12, 2013, the Company completed the liquidation of the Zurich branch of Tronox Luxembourg S.a.r.l. In accordance with Accounts Standard Board (“ASC”) 830, Foreign Currency Matters, the Company recognized a non-cash loss from the realization of cumulative translation adjustments of $10 million, which was recorded in “Other income (expense)” on the unaudited Condensed Consolidated Statements of Operations.

Warrants

Prior to the Transaction, Tronox Incorporated had issued Series A warrants and Series B warrants (collectively, the “Tronox Incorporated Warrants”). In connection with the Transaction, and pursuant to the terms of the Tronox Incorporated Warrant Agreement, Tronox Limited entered into an amended and restated warrant agreement, dated as of the Transaction Date, whereby the holders of the Tronox Limited Warrants are entitled to purchase one Class A Share and receive $12.50 in cash at the initial exercise prices of $62.13 for each Series A Warrant (the “Series A Warrants”) and $68.56 for each Series B Warrant (the “Series B Warrants”, collectively with the Series A Warrants, the “Warrants”). On the Transaction Date, there were 841,302 Warrants outstanding. The Warrants have a seven-year term from the date initially issued and will expire on February 14, 2018. A holder may exercise the Warrants by paying the applicable exercise price in cash or on a cashless basis. The Warrants are freely transferable by the holder thereof.

 20 

In connection with the share split (see below), holders of the Warrants are entitled to purchase five Class A Shares and receive $12.50 in cash. At September 30, 2013, the exercise price, adjusted for dividends paid, was $60.01 for each Series A Warrant and $66.23 for each Series B Warrants. At September 30, 2013, there were 357,564 Series A Warrants and 465,461 Series B Warrants outstanding.

Share Split Declared

On June 26, 2012, the Board approved a 5-to-1 share split for holders of its Class A Shares and Class B Shares at the close of business on July 20, 2012, by issuance of four additional shares for each share of the same class. As a result of the share split, the Company recorded an increase to “Tronox Limited Class A ordinary shares” of $1 million and an increase to “Tronox Limited Class B ordinary shares” of less than $1 million, with corresponding decreases to “Retained earnings” on the unaudited Condensed Consolidated Balance Sheets.

Share Repurchases

On June 26, 2012, the Board authorized the repurchase of Class A Shares in open market transactions. During 2012, the Company repurchased 12,626,400 Class A Shares, affected for the 5-for-1 share split, at an average price of $25.84 per share, inclusive of commissions, for a total cost of $326 million. Repurchased shares were subsequently cancelled in accordance with Australian law. On September 27, 2012, the Company announced the successful completion of its share repurchase program.

16. Income Taxes

The Company’s operations are conducted through its various subsidiaries in a number of countries throughout the world. The Company has provided for income taxes based upon the tax laws and rates in the countries in which operations are conducted and income is earned.

For the three and nine months ended September 30, 2013, Tronox Limited was the public parent registered under the laws of the State of Western Australia. For the three months ended September 30, 2012 and from June 15, 2012 through September 30, 2012, Tronox Limited was the public parent; however, prior to June 15, 2012, Tronox Incorporated was the public parent, a Delaware corporation registered in the United States.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Income tax benefit (provision)	$	(8	)	$	34		$	(10	)	$	100
Income (Loss) before Income Taxes	$	(33	)	$	(35	)	$	(77	)	$	1,129
Effective tax rate		(24	)%		97	%		(13	)%		(9	)%

The negative effective tax rates for the three months and the nine months ended September 30, 2013, differ from the Australian statutory rate of 30% primarily due to withholding tax accruals, prior year return to provision and other adjustments, valuation allowances in various jurisdictions, and income in foreign jurisdictions taxed at rates different than 30%.

The negative effective tax rate for the nine months ended September 30, 2012, differs from the U.S. statutory rate of 35% primarily as a consequence of the Company re-domiciling in Australia. Because the Australian tax laws provide for a resetting of the tax basis of the business assets to market value, the Company recorded a tax benefit related to this market value basis adjustment. The overall tax benefit from this basis adjustment increase was partially offset by a valuation allowance established for the portion of the tax benefit which the Company believes will not be realized. Because this basis change did not pertain to an entity acquired in the Transaction, this net tax benefit was recorded through tax expense and did not impact the Company’s gain on bargain purchase.

 21 

Additionally, the effective tax rate for the nine months ended September 30, 2012, was impacted by the release of a valuation allowance in The Netherlands, continuing valuation allowances in the United States, income in foreign jurisdictions taxed at rates lower than 35%, and the Company’s gain on the bargain purchase, which was recorded net of the financial tax impact and is not subject to income tax in any jurisdiction.

The high effective tax rate for the three months ended September 30, 2012, differs from the U.S. statutory rate of 35% primarily because the Company incurred a book operating loss for the quarter while recording a tax benefit from the release of a valuation allowance in The Netherlands.

The application of business combination accounting on June 15, 2012 resulted in the re-measurement of deferred income taxes associated with recording the assets and liabilities of acquired entities at fair value pursuant to ASC 805. As a result, deferred income taxes of $205 million were recorded at amounts determined in accordance with ASC 740, Income Taxes (“ASC 740”) as part of the Company’s gain on bargain purchase.

The Company continues to maintain a valuation allowance related to the net deferred tax assets in the United States. Future provisions for income taxes will include no tax benefits with respect to losses incurred and tax expense only to the extent of state tax payments until the valuation allowance in the United States is eliminated. ASC 740 requires that all available positive and negative evidence be weighted to determine whether a valuation allowance should be recorded.  

17. Earnings (Loss) Per Share

The Company calculates basic and diluted earnings (loss) per ordinary share using the two-class method.  Under the two-class method, the earnings used to determine basic earnings per ordinary share are reduced by an amount allocated to participating securities.  Participating securities for the Company include restricted share awards issued under the Tronox Management Equity Incentive Plan and the T-Bucks Employee Participation Plan as both contain non-forfeitable dividend rights and participate equally with ordinary shares with respect to dividends issued or declared. The Company's unexercised options, unexercised Series A and Series B Warrants, and unvested restricted share units do not contain non-forfeitable rights to dividends and are not considered in the calculation of basic earnings per share.  

The Company's unvested restricted shares do not have a contractual obligation to share in losses of the Company.  When the Company records a net loss, none of the loss is allocated to the participating securities.  Consequently, in periods of net loss, the two class method will not have an effect on the Company's basic earnings per share.

Diluted earnings per ordinary share is calculated by dividing net earnings allocable to ordinary shares by the weighted-average number of ordinary shares outstanding for the period, as adjusted for the potential dilutive effect of non-participating restricted share units, options and Series A and Series B Warrants.  The options and Series A and Series B Warrants are included in the calculation of diluted earnings per ordinary share utilizing the treasury stock method.

 22 

The computation of basic and diluted loss per share for the periods indicated is as follows:

	Three Months Ended September 30, 2013			Nine Months Ended September 30, 2013
Numerator – Basic and Diluted
Net Loss	$	(41	)	$	(87	)
Less: Income attributable to noncontrolling interest		(8	)		(32	)
Undistributed loss		(49	)		(119	)
Percentage allocated to ordinary shares		100	%		100	%
Undistributed loss allocated to ordinary shares		(49	)		(119	)
Loss available to ordinary shares	$	(49	)	$	(119	)
Denominator – Basic and Diluted
Weighted-average ordinary shares (in thousands)		113,459			113,389
Loss per Share (1)
Basic loss per Share	$	(0.43	)	$	(1.05	)
Diluted loss per Share	$	(0.43	)	$	(1.05	)

(1) The basic and diluted earnings (loss) per share amounts were computed from exact, not rounded, income and share information

The computation of basic and diluted earnings per share for the periods indicated is as follows:

	Three Months Ended September 30, 2012			Nine Months Ended September 30, 2012
Numerator – Basic and Diluted
Net Income (Loss)	$	(1	)	$	1,229
Less: Income attributable to noncontrolling interest		(2	)		(2	)
Less: Dividends declared		—			(32	)
Undistributed earnings (loss)		(3	)		1,195
Percentage allocated to ordinary shares		100	%		99.4	%
Undistributed earnings allocated to ordinary shares		(3	)		1,188
Add: Dividends declared allocated to common shares		—			32
Earnings available to ordinary shares	$	(3	)	$	1,220
Denominator – Basic
Weighted-average ordinary shares (in thousands)		122,352			94,193
Add: Effect of Dilutive Securities:
Restricted shares		—			66
Warrants		—			2,638
Options		—			6
Denominator – Dilutive		122,352			96,903
Earnings per Share(1)
Basic earnings per Share	$	(0.03	)	$	12.95
Diluted earnings per Share	$	(0.03	)	$	12.59

(1) The basic and diluted earnings (loss) per share amounts were computed from exact, not rounded, income and share information

 23 

In computing diluted earnings (loss) per share under the two-class method, the Company considered potentially dilutive shares. At September 30, 2013, 2,100,611 options with an average exercise price of $20.63, 357,564 Series A Warrants and 465,461 Series B Warrants, with exercise prices of $60.01 and $66.23, respectively, and 304,770 restricted share units with an average price of $21.08 were not recognized in the diluted earnings per share calculation as they were anti-dilutive. At September 30, 2012, 523,970 options with an average exercise price of $25.52, 364,819 Series A Warrants and 474,425 Series B Warrants, with exercise prices of $61.84 and $68.24, respectively, were not recognized in the three months ended diluted earnings per share calculation as they were anti-dilutive.

18. Share-based Compensation

Compensation expense related to restricted share awards was $3 million and $2 million for the three months ended September 30, 2013 and 2012, respectively, and $9 million and $28 million for the nine months ended September 30, 2013 and 2012, respectively. Compensation expense related to the Company’s nonqualified option awards was $1 million and less than $1 million for the three months ended September 30, 2013 and 2012, respectively, and $4 million and $1 million for the nine months ended September 30, 2013 and 2012, respectively.

At September 30, 2013, unrecognized compensation expense related to the Company’s restricted shares and options, adjusted for estimated forfeitures, was approximately $45 million, with such unrecognized compensation expense expected to be recognized over a weighted-average period of approximately 2 years. The ultimate amount of such expense is dependent upon the actual number of restricted shares and options that vest. The Company periodically assesses the forfeiture rates used for such estimates. A change in estimated forfeiture rates would cause the aggregate amount of compensation expense recognized in future periods to differ from the estimated unrecognized compensation expense above.

Tronox Limited Management Equity Incentive Plan

On the Transaction Date, Tronox Limited adopted the Tronox Limited Management Equity Incentive Plan (the “Tronox Limited MEIP”), which permits the grant of awards that constitute incentive options, nonqualified options, share appreciation rights, restricted shares, restricted share units, performance awards and other share-based awards, cash payments and other forms such as the compensation committee of the Board in its discretion deems appropriate, including any combination of the above. Subject to further adjustment, the maximum number of shares which may be the subject of awards (inclusive of incentive options) is 12,781,225 Class A Shares.

Restricted Shares

During the nine months ended September 30, 2013, the Company granted restricted share awards to employees. All restricted share awards vest pursuant to both time requirements and performance requirements. The time provisions are graded vesting, while the performance provisions are cliff vesting and have a variable payout. During the nine months ended September 30, 2013, as part of the annual directors’ compensation program, the Company granted restricted share awards with graded vesting to members of the Board. In accordance with ASC 718, Compensation – Share-Based Compensation (“ASC 718”), the restricted share awards issued during 2013 are classified as equity awards, and are accounted for using the fair value established at the grant date.

Restricted share activity for the nine months ended September 30, 2013 and 2012 was as follows:

	Number of Shares			Fair Value(1)
Balance at December 31, 2012		761,065		$	20.62
Awards granted		820,027			21.14
Awards earned		(71,981	)		24.17
Awards forfeited		(16,338	)		23.83
Balance at September 30, 2013		1,492,773		$	20.70
Outstanding awards expected to vest		1,467,461		$	20.67

 24 

	Number of Shares			Fair Value(1)
Balance at December 31, 2011		—		$	—
Awards converted from Tronox Incorporated to Tronox  Limited in connection with the Transaction		420,765			16.99
Awards granted		184,571			27.11
Awards earned		(7,550	)		25.90
Awards forfeited		(7,985	)		29.29
Balance at September 30, 2012		589,801		$	19.87
Outstanding awards expected to vest		582,887		$	19.78

(1) Represents the weighted-average grant-date fair value

Options

During the nine months ended September 30, 2013, the Company granted options to employees to purchase Class A Shares, which have graded vesting provisions over a three year period. Options activity was as follows:

	Number of Options			Price (1)		Contractual Life Years (1)		Intrinsic Value(2)
Balance at December 31, 2012		612,439		$	24.81
Options issued		1,590,438			19.17
Options exercised		(50,000	)		22.00
Options expired		(32,978	)		25.65
Options forfeited		(19,288	)		20.44
Outstanding at September 30, 2013		2,100,611		$	20.63		9.23	$	9
Outstanding and expected to vest at September 30, 2013		1,872,810		$	20.24		9.27	$	9
Exercisable at September 30, 2013		172,277		$	25.09		8.62	$	—

(1)	Represents weighted average exercise price and weighted average remaining contractual life, as applicable.
(2)	Reflects aggregate intrinsic value based on the difference between the market price of the Company’s shares at September 30, 2013 and the options’ exercise price.

Valuation and Cost Attribution Methods. Fair value is determined on the date of grant using the Black-Scholes option-pricing model, and is recognized in earnings on a straight-line basis over the employee service period of three years necessary to earn the awards, which is the vesting period.

 25 

The Company utilized the Black-Scholes option-pricing model using the following assumptions:

	February 25, 2013			March 11, 2013			September 3, 2013
Number of options granted		1,544,872			8,238			37,328
Fair market value and exercise price (1)	$	19.09		$	21.49		$	21.94
Risk-free interest rate (2)		1.04	%		1.19	%		2.10	%
Expected dividend yield		5.24	%		4.65	%		4.56	%
Expected volatility		56	%		56	%		56	%
Maturity (years)		10			10			10
Expected term (years)		6			6			6
Per-unit fair value of options granted	$	6.28		$	7.48		$	7.92

(1)	The adjusted closing price of Class A Shares, New York Stock Exchange symbol TROX, on the grant date.
(2)	The risk-free interest rate was based on U.S. Treasury Strips available with maturity period consistent with expected life assumption.

During the nine months ended September 30, 2012, the Company granted options to employees to purchase Class A Shares, which have graded vesting provisions over a three year period. Options activity was as follows:

	Number of Options			Price (1)		Contractual Life Years (1)		Intrinsic Value(2)
Balance at December 31, 2011		—		$	—
Options converted to Tronox Limited in connection with the Transaction		517,330			24.56
Options issued		158,960			25.62
Options forfeited		(152,320	)		22.38
Outstanding at September 30, 2012		523,970		$	25.52		9.49	$	—
Outstanding and expected to vest at September 30, 2012		488,791		$	25.59		9.50	$	—
Exercisable at September 30, 2012		7,440		$	24.60		9.27	$	—

(1)	Represents weighted average exercise price and weighted average remaining contractual life, as applicable.
(2)	Reflects aggregate intrinsic value based on the difference between the market price of the Company’s shares at September 30, 2012 and the options’ exercise price.

 26 

Valuation and Cost Attribution Methods. Options’ fair value was determined on the date of grant using the Black-Scholes option-pricing model and was recognized in earnings on a straight-line basis over the employee service period of three years necessary to earn the awards, which is the vesting period.

The Company utilized the Black-Scholes option-pricing model for the options granted and used the following assumptions:

	June 26, 2012			July 31, 2012			August 31, 2012
Number of options granted		135,895			15,808			7,257
Fair market value and exercise price (1)	$	25.90		$	23.17		$	25.79
Risk-free interest rate (2)		0.97	%		0.83	%		0.85	%
Expected dividend yield		3.86	%		4.32	%		3.88	%
Expected volatility		55	%		56	%		56	%
Maturity (years)		10			10			10
Expected term (years)		6			6			6
Per-unit fair value of options granted	$	9.43		$	8.21		$	9.51

(1)	The adjusted closing price of Class A Shares, New York Stock Exchange symbol TROX, on the grant date.
(2)	The risk-free interest rate was based on U.S. Treasury Strips available with maturity period consistent with expected life assumption.

T-Bucks Employee Participation Plan (“T-Bucks EPP”)

During 2012, the Company established the T-Bucks EPP for the benefit of certain qualifying employees (the “Participants”) of Tronox subsidiaries in South Africa (the “Employer Companies”). In accordance with the terms of the Trust Deed of the T-Bucks Trust (the “T-Bucks Trust Deed”), the Employer Companies funded the T-Bucks Trust (the “Trust”) in the amount of R124 million (approximately $15 million), which represents a capital contribution equal to R75,000 for each Participant. The funded amount was used to acquire 548,234 Class A Shares.

On September 3, 2012, the Participants were awarded restricted share units in the Trust which entitles them to receive shares of Tronox Limited upon completion of the vesting period on May 31, 2017. The Participants are also entitled to receive dividends on the Tronox shares during the vesting period. Forfeited shares are retained by the Trust and are allocated to future participants in accordance with the Trust Deed. Under certain conditions, as outlined in the Trust Deed, Participants may receive share units awarded before May 31, 2017. The fair value of the awards is the fair value of the shares determined at the Grant Date. Compensation costs are recognized over the vesting period using the straight-line method. In accordance with ASC 718, the T-Bucks EPP is classified as an equity-settled shared-based payment plan.

At September 30, 2013 and December 31, 2012, there were 548,234 shares in the trust with a fair value of $25.79, which represents the fair value on the date of purchase by the trust. Compensation expense during the three and nine months ended September 30, 2013 was less than $1 million and $2 million, respectively.

Long-Term Incentive Plan

In connection with the Transaction, the Company assumed a long-term incentive plan (the “LTIP”) for the benefit of certain qualifying employees of Tronox subsidiaries in South Africa and Australia. The LTIP is classified as a cash-settled compensation plan, and is remeasured to fair value at each reporting date. At September 30, 2013, the LTlP plan liability was approximately $3 million, which was recorded in “Other long-term liabilities” on the unaudited Condensed Consolidated Balance Sheets. Compensation expense was less than $1 million for both the three months ended September 30, 2013 and 2012 and $1 million and less than $1 million for both the nine months ended September 30, 2013 and 2012, respectively.

 27 

Tronox Incorporated Management Equity Incentive Plan

In connection with its emergence from bankruptcy, Tronox Incorporated adopted the Tronox Incorporated management equity incentive plan (the “Tronox Incorporated MEIP”), which permitted the grant of awards that constitute incentive options, nonqualified options, share appreciation rights, restricted share, restricted share units, performance awards and other share-based awards, cash payments and other forms such as the compensation committee of the Tronox Incorporated Board of Directors in its discretion deemed appropriate, including any combination of the above.

On the Transaction Date, 420,765 restricted shares of Tronox Incorporated vested in connection with the Transaction. The remaining restricted shares of Tronox Incorporated were converted to Tronox Limited restricted shares. Additionally, on the Transaction Date, 517,330 Tronox Incorporated options were converted to Tronox Limited options.

Restricted Shares

During the nine months ended September 30, 2012, Tronox Incorporated granted restricted shares to its employees, which had graded vesting provisions. Tronox Incorporated was withholding the highest combined maximum rate imposed under all applicable federal, state, local and foreign tax laws on behalf of the employees that received these awards. In accordance with ASC 718, such restricted share awards were classified as liability awards and were remeasured to fair value at each reporting date.

Restricted share activity with employees and directors was as follows:

	Number of Shares			Fair Value(1)
Balance at December 31, 2011		1,177,995		$	21.48
Awards granted		52,915			24.36
Awards earned		(810,145	)		32.41
Awards converted to Tronox Limited restricted shares in  connection with the Transaction		(420,765	)		16.99
Balance at September 30, 2012		—		$	—

(1) Represents weighted average fair value. Liability awards are remeasured to fair value at each reporting date and upon vesting, while equity awards are presented at grant date fair value.

Options

Tronox Incorporated options activity was as follows:

	Number of Options			Price (1)
Balance at December 31, 2011		345,000		$	22.00
Options issued		172,330			29.69
Options converted to Tronox Limited in connection with the Transaction		(517,330	)		24.56
Outstanding at September 30, 2012		—		$	—

(1) Represents weighted average exercise price.

 28 

Valuation and Cost Attribution Methods. Fair value is determined on the date of grant using the Black-Scholes option-pricing model, and is recognized in earnings on a straight-line basis over the employee service period of three years necessary to earn the awards, which is the vesting period.

Tronox Incorporated ran the Black-Scholes option-pricing model using the following assumptions:

	January 2, 2012			June 6, 2012
Number of options granted		22,330			150,000
Fair market value and exercise price (1)	$	24.60		$	30.45
Risk-free interest rate (2)		1.97	%		0.94	%
Expected dividend yield		0.0	%		0.0	%
Expected volatility		49	%		55	%
Expected term (years)		10			10
Per-unit fair value of options granted	$	14.78		$	15.64

(1)	The adjusted closing price of Class A Shares, New York Stock Exchange symbol TROX, on the grant date.
(2)	The risk-free interest rate was based on U.S. Treasury Strips available with maturity period consistent with expected life assumption.

19. Pension and Other Postretirement Healthcare Benefits

The Company sponsors noncontributory defined benefit retirement plans (qualified and nonqualified plans) in the United States, a contributory defined benefit retirement plan in The Netherlands, a U.S. contributory postretirement healthcare plan and a South Africa postretirement healthcare plan.

The components of net periodic cost associated with the U.S. and foreign retirement plans recognized in the unaudited Condensed Consolidated Statements of Operations were as follows:

	Retirement Plans
	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Net periodic cost:
Service cost	$	1		$	1		$	4		$	2
Interest cost		5			5			15			16
Expected return on plan assets		(5	)		(5	)		(15	)		(15	)
Net amortization of actuarial loss		1			—			2			—
Total net periodic cost	$	2		$	1		$	6		$	3

The components of the Company’s net periodic cost for the postretirement healthcare plans recognized in the unaudited Condensed Consolidated Statements of Operations were less than $1 million for both the three months ended September 31, 2013 and 2012, and $1 million for both the nine months ended September 30, 2013 and 2012.

 29 

20. Related Party Transactions

At September 30, 2013, Exxaro held approximately 44.4% of the voting securities of Tronox Limited. During the three and nine months ended September 30, 2013, the Company purchased transition services from Exxaro, which amounted to $1 million and $5 million, respectively.

Prior to the Transaction Date, Tronox Incorporated conducted transactions with Exxaro Australia Sands Pty Ltd, Tronox Incorporated’s 50% partner in the Tiwest Joint Venture. Tronox Incorporated purchased, at open market prices, raw materials used in its production of TiO₂, as well as Exxaro Australia Sands Pty Ltd’s share of TiO₂ produced by the Tiwest Joint Venture. Tronox Incorporated also provided administrative services and product research and development activities, which were reimbursed by Exxaro. From January 1, 2012 through the Transaction Date, the Company made payments of $173 million for purchases of raw material and received payments of $9 million for administrative services.

21. Segment Information

Prior to the Transaction, Tronox Incorporated had one reportable segment representing its pigment business. The Pigment segment primarily produced and marketed TiO_2, and included heavy minerals production. The heavy minerals production was integrated with its Australian pigment plant, but also had third-party sales of minerals not utilized by its pigment operations. In connection with the Transaction, the Company acquired 74% of Exxaro’s mineral sands operations, along with its 50% share of the Tiwest Joint Venture in Western Australia. As such, the Company evaluated its new operations under ASC 280, Segments, and determined that the mineral sands operations qualify as a separate segment.

Subsequent to the Transaction, the Company has two reportable segments, Mineral Sands and Pigment. The Mineral Sands segment includes the exploration, mining and beneficiation of mineral sands deposits, as well as heavy mineral production. These operations produce titanium feedstock, including chloride slag, slag fines and rutile, as well as pig iron and zircon. The Pigment segment primarily produces and markets TiO₂, and has production facilities in the United States, Australia, and The Netherlands. Corporate and Other is comprised of corporate activities and businesses that are no longer in operation, as well as electrolytic manufacturing and marketing operations, all of which are located in the United States.

Segment performance is evaluated based on segment operating profit (loss), which represents the results of segment operations before unallocated costs, such as general corporate expenses not identified to a specific segment, environmental provisions, net of reimbursements, related to sites no longer in operation, interest expense, other income (expense) and income tax expense or benefit.

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	Mineral Sands		Pigment			Corporate And Other			Eliminations			Total
Three Months Ended September 30, 2013
Net Sales (1)	$	245	$	300		$	35		$	(89	)	$	491
Income (loss) from operations		41		(29	)		(20	)		17			9
Interest and debt expense													(32	)
Other income													(10	)
Loss before Income Taxes													(33	)
Depreciation, Depletion and Amortization	$	67	$	20		$	5		$	—		$	92
Capital Expenditures	$	10	$	14		$	1		$	—		$	25
Three Months Ended September 30, 2012
Net Sales (1)	$	272	$	280		$	38		$	(103	)	$	487
Income (loss) from operations		32		(4	)		(26	)		(19	)		(17	)
Interest and debt expense													(18	)
Loss before Income Taxes												$	(35	)
Depreciation, Depletion and Amortization	$	47	$	20		$	4		$	—		$	71
Capital Expenditures	$	27	$	10		$	6		$	—		$	43
Nine Months Ended September 30, 2013
Net Sales (1)	$	855	$	892		$	97		$	(358	)	$	1,486
Income (loss) from operations		205		(153	)		(55	)		2			(1	)
Interest and debt expense													(94	)
Other expense													18
Income before Income Taxes												$	(77	)
Depreciation, Depletion and Amortization	$	165	$	61		$	12		$	—		$	238
Capital Expenditures	$	59	$	39		$	6		$	—		$	104
Nine Months Ended September 30, 2012
Net Sales (1)	$	444	$	990		$	97		$	(181	)	$	1,350
Income (loss) from operations		129		142			(130	)		(23	)		118
Interest and debt expense													(40	)
Other expense													(4	)
Gain on bargain purchase													1,055
Income before Income Taxes												$	1,129
Depreciation, Depletion and Amortization	$	63	$	50		$	11		$	—		$	124
Capital Expenditures	$	47	$	25		$	19		$	—		$	91

(1) Net sales by geographic region, principally based on country of production, were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
U.S. operations	$	219	$	211	$	622	$	670
International operations:
South Africa		129		115		383		139
Australia		90		103		311		346
The Netherlands		53		58		170		195
Total	$	491	$	487	$	1,486	$	1,350

 31 

Total assets by segment were as follows:

	September 30, 2013			December 31, 2012
Mineral Sands	$	2,948		$	3,164
Pigment		1,726			1,680
Corporate and Other		1,167			725
Eliminations		(56	)		(58	)
Total	$	5,785		$	5,511

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

	September 30, 2013		December 31, 2012
U.S. operations	$	198	$	196
International operations:
South Africa		1,046		1,263
Australia		1,247		1,348
The Netherlands		54		55
Total	$	2,545	$	2,862

22. Emergence from Chapter 11

On January 12, 2009, the petition date, Tronox Incorporated and certain of its subsidiaries (collectively, the “Debtors”) filed voluntary petitions in the U.S. Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”) seeking reorganization relief under the provisions of Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”). The Debtors’ Chapter 11 cases were consolidated for the purpose of joint administration.

In May 2009, the Company commenced an adversary proceeding in the Bankruptcy Court against Kerr-McGee and its new parent, Anadarko, related to the 2005 Spin-Off of Tronox (Tronox Inc. v. Anadarko Petroleum Corp. (In re Tronox Inc.), 09-1198, U.S. Bankruptcy Court, Southern District New York (Manhattan)) (the “Anadarko Litigation”). Pursuant the Plan, the Company assigned the rights to any pre-tax proceeds that may be recovered in the Anadarko Litigation to its creditors.

On November 30, 2010 (the “Confirmation Date”), the Bankruptcy Court entered an order confirming the Debtors’ First Amended Joint Plan of Reorganization pursuant to Chapter 11 of the Bankruptcy Code, dated November 5, 2010 (as amended and confirmed, the “Plan”). Material conditions to the Plan were resolved during the period from the Confirmation Date until January 26, 2011, and subsequently, on February 14, 2011 (the “Effective Date”), the Debtors emerged from bankruptcy and continued operations as reorganized Tronox Incorporated.

On June 13, 2013, the Bankruptcy Court entered a Final Decree and ordered that the bankruptcy cases, other than the adversary proceedings with Anadarko Petroleum Corporation (“Anadarko”), be closed.

 32 

23. Guarantor Condensed Consolidated Financial Statements

Our obligations under the 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 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.

 33 

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three months ended September 30, 2013

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	491		$	(61	)	$	—		$	326		$	226
Cost of goods sold		437			(84	)		—			326			195
Gross Margin		54			23			—			—			31
Selling, general and administrative expenses		45			(1	)		2			32			12
Income from Operations		9			24			(2	)		(32	)		19
Interest and debt expense		(32	)		—			137			(159	)		(10	)
Other income (expense)		(10	)		(44	)		—			(3	)		37
Equity in earnings of subsidiary		—			135			(135	)		—			—
Income (Loss) before Income Taxes		(33	)		115			—			(194	)		46
Income tax benefit (provision)		(8	)		—			(50	)		52			(10	)
Net Income (Loss)		(41	)		115			(50	)		(142	)		36
Income attributable to noncontrolling interest		8			—			—			8			—
Net Income (Loss) attributable to Tronox Limited	$	(49	)	$	115		$	(50	)	$	(150	)	$	36

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Nine Months ended September 30, 2013

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	1,486		$	(256	)	$	—		$	994		$	748
Cost of goods sold		1,350			(256	)		—			968			638
Gross Margin		136			—			—			26			110
Selling, general and administrative expenses		137			(3	)		11			98			31
Income from Operations		(1	)		3			(11	)		(72	)		79
Interest and debt expense		(94	)		—			410			(483	)		(21	)
Other income (expense)		18			(44	)		1			5			56
Equity in earnings of subsidiary		—			391			(391	)		—			—
Income (Loss) before Income Taxes		(77	)		350			9			(550	)		114
Income tax benefit (provision)		(10	)		—			(128	)		143			(25	)
Net Income (Loss)		(87	)		350			(119	)		(407	)		89
Income attributable to noncontrolling interest		32			—			—			32			—
Net Income (Loss) attributable to Tronox Limited	$	(119	)	$	350		$	(119	)	$	(439	)	$	89

 34 

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three months ended September 30, 2013

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations		Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	(41	)	$	115	$	(50	)	$	(142	)	$	36
Other Comprehensive Income (Loss):
Foreign currency translation adjustments		(5	)		—		—			—			(5	)
Amortization of actuarial losses, net of taxes		1			—		—			2			(1	)
Other comprehensive income (loss)		(4	)		—		—			2			(6	)
Total comprehensive income (loss)		(45	)		115		(50	)		(140	)		30
Comprehensive income (loss) attributable to noncontrolling interest:
Net income		8			—		—			8			—
Foreign currency translation adjustments		(6	)		—		—			(6	)		—
Comprehensive income (loss) attributable to noncontrolling interest		2			—		—			2			—
Comprehensive income (loss) attributable to Tronox Limited	$	(47	)	$	115	$	(50	)	$	(142	)	$	30

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Nine Months ended September 30, 2013

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations		Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	(87	)	$	350	$	(119	)	$	(407	)	$	89
Other Comprehensive Income (Loss):
Foreign currency translation adjustments		(206	)		—		—			—			(206	)
Amortization of actuarial losses, net of taxes		1			—		—			2			(1	)
Other comprehensive income (loss)		(205	)		—		—			2			(207	)
Total comprehensive income (loss)		(292	)		350		(119	)		(405	)		(118	)
Comprehensive income (loss) attributable to noncontrolling interest:
Net income		32			—		—			32			—
Foreign currency translation adjustments		(57	)		—		—			(57	)		—
Comprehensive income (loss) attributable to noncontrolling interest		(25	)		—		—			(25	)		—
Comprehensive income (loss) attributable to Tronox Limited	$	(267	)	$	350	$	(119	)	$	(380	)	$	(118	)

 35 

GUARANTOR CONDENSED CONSOLIDATED BALANCE SHEETS

As of September 30, 2013

(Unaudited)

(Millions of U.S. dollars)

	Consolidated		Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	$	1,457	$	—		$	339		$	934		$	184
Investment in subsidiaries		—		(998	)		(1,012	)		1,553			457
Property, plant and equipment, net		1,276		—			—			716			560
Mineral leaseholds, net		1,269		—			—			730			539
Other assets		1,783		(9,275	)		6,422			2,397			2,239
Total Assets	$	5,785	$	(10,273	)	$	5,749		$	6,330		$	3,979
Liabilities and Equity
Long-term debt	$	2,386	$	—		$	—		$	901		$	1,485
Other liabilities		878		(9,224	)		1,426			8,085			591
Total Liabilities		3,264		(9,224	)		1,426			8,986			2,076
Total Equity		2,521		(1,049	)		4,323			(2,656	)		1,903
Total Liabilities and Equity	$	5,785	$	(10,273	)	$	5,749		$	6,330		$	3,979

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
Property, plant and equipment, net		1,423		—			—			747			676
Mineral leaseholds, net		1,439		—			—			796			643
Other assets		1,933		(8,300	)		6,044			2,582			1,607
Total Assets	$	5,511	$	(9,895	)	$	5,955		$	5,967		$	3,484
Liabilities and Equity
Long-term debt	$	1,605	$	—		$	—		$	902		$	703
Other liabilities		1,024		(8,248	)		1,442			7,111			719
Total Liabilities		2,629		(8,248	)		1,442			8,013			1,422
Total 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

 36 

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months ended September 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)	$	(87	)	$	350		$	(119	)	$	(407	)	$	89
Other		297			(350	)		10			1,302			(665	)
Cash provided by (used in) operating activities		210			—			(109	)		895			(576	)
Cash Flows from Investing Activities:
Capital expenditures		(104	)		—			—			(43	)		(61	)
Cash used in investing activities		(104	)		—			—			(43	)		(61	)
Cash Flows from Financing Activities
Repayments of debt		(185	)		—			—			—			(185	)
Proceeds from borrowings		945			—			—			—			945
Debt issuance costs		(29	)		—			—			—			(29	)
Dividends paid		(86	)		—			(86	)		—			—
Proceeds from the conversion of warrants		1			—			1			—			—
Cash provided by (used in) financing activities		646			—			(85	)		—			731
Effects of Exchange Rate Changes on Cash and Cash Equivalents		(11	)		—			—			—			(11	)
Net Increase (Decrease) in Cash and Cash Equivalents		741			—			(194	)		852			83
Cash and Cash Equivalents at Beginning of Period		716			—			533			82			101
Cash and Cash Equivalents at End of Period	$	1,457		$	—		$	339		$	934		$	184

 37 

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three months ended September 30, 2012

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	487		$	(46	)	$	—		$	321		$	212
Cost of goods sold		444			(28	)		—			271			201
Gross Margin		43			(18	)		—			50			11
Selling, general and administrative expenses		60			(1	)		1			49			11
Income from Operations		(17	)		(17	)		(1	)		1			—
Interest and debt expense		(18	)		—			137			(158	)		3
Other income (expense)		—			—			—			(5	)		5
Equity in earnings of subsidiary		—			102			(102	)		—			—
Income (Loss) before Income Taxes		(35	)		85			34			(162	)		8
Income tax benefit (provision)		34			—			(36	)		60			10
Net Income (Loss)		(1	)		85			(2	)		(102	)		18
Income attributable to noncontrolling interest		2			—			—			2			—
Net Income (Loss) attributable to Tronox Limited	$	(3	)	$	85		$	(2	)	$	(104	)	$	18

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Nine months ended September 30, 2012

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	1,350		$	(96	)	$	—		$	1,048		$	398
Cost of goods sold		1,025			(82	)		—			770			337
Gross Margin		325			(14	)		—			278			61
Selling, general and administrative expenses		207			(3	)		39			148			23
Income from Operations		118			(11	)		(39	)		130			38
Interest and debt expense		(40	)		—			—			(18	)		(22	)
Other income (expense)		(4	)		37			160			(171	)		(30	)
Gain on bargain purchase		1,055			—			1,055			—			—
Equity in earnings of subsidiary		—			1,092			(1,094	)		2			—
Income (Loss) before Income Taxes		1,129			1,118			82			(57	)		(14	)
Income tax benefit (provision)		100			—			(32	)		119			13
Net Income (Loss)		1,229			1,118			50			62			(1	)
Income attributable to noncontrolling interest		2			—			—			2			—
Net Income (Loss) attributable to Tronox Limited	$	1,227		$	1,118		$	50		$	60		$	(1	)

 38 

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three months ended September 30, 2012

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations		Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	(1	)	$	85	$	(2	)	$	(102	)	$	18
Other Comprehensive Income:
Foreign currency translation adjustments		14			—		—			—			14
Other comprehensive income		14			—		—			—			14
Total comprehensive income		13			85		(2	)		(102	)		32
Comprehensive income attributable to noncontrolling interest:
Income attributable to noncontrolling interest		2			—		—			2			—
Foreign currency translation adjustments		3			—		—			3			—
Comprehensive income attributable to noncontrolling interest		5			—		—			5			—
Comprehensive income (loss) attributable to Tronox Limited	$	8		$	85	$	(2	)	$	(107	)	$	32

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Nine months ended September 30, 2012

(Unaudited)

(Millions of U.S. dollars)

	Consolidated		Eliminations		Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	1,229	$	1,118	$	50	$	62		$	(1	)
Other Comprehensive Income (Loss):
Foreign currency translation adjustments		47		19		—		(2	)		30
Retirement and postretirement plans adjustments, net of tax		—		—		—		(17	)		17
Deferred Tax		—		—		—		(3	)		3
Other comprehensive income (loss)		47		19		—		(22	)		50
Total comprehensive income		1,276		1,137		50		40			49
Comprehensive income attributable to noncontrolling interest:
Income attributable to noncontrolling interest		2		—		—		2			—
Foreign currency translation adjustments		13		—		—		13			—
Comprehensive income attributable to noncontrolling interest		15		—		—		15			—
Comprehensive income attributable to Tronox Limited	$	1,261	$	1,137	$	50	$	25		$	49

 39 

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months ended September 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)	$	1,229		$	1,118		$	50		$	62		$	(1	)
Gain on bargain purchase		(1,055	)		—			(1,055	)		—			—
Other		(99	)		(1,118	)		1,441			154			(576	)
Cash provided by (used in) operating activities		75			—			436			216			(577	)
Cash Flows from Investing Activities:
Capital expenditures		(91	)		—			—			(61	)		(30	)
Cash received in acquisition of mineral sands business, net of cash paid		114			—			114			—			—
Cash provided by (used in) investing activities		23			—			114			(61	)		(30	)
Cash Flows from Financing Activities
Reductions of debt		(583	)		—			—			(481	)		(102	)
Proceeds from borrowings		1,690			—			—			943			747
Debt issuance costs		(20	)		—			—			—			(20	)
Paid dividends		(32	)		—			(32	)		—			—
Merger consideration		(193	)		—			(193	)		—			—
Class A ordinary share repurchases		(326	)		—			(326	)		—			—
Proceeds from conversion of warrants		1			—			1			—			—
Shares purchased for the Employee Participation Program		(15	)		—			—			—			(15	)
Cash provided by (used in) financing activities		522			—			(550	)		462			610
Effects of Exchange Rate Changes on Cash and Cash Equivalents		—			—			—			—			—
Net Increase (Decrease) in Cash and Cash Equivalents		620			—			—			617			3
Cash and Cash Equivalents at Beginning of Period		154			—			—			107			47
Cash and Cash Equivalents at End of Period	$	774		$	—		$	—		$	724		$	50

 40 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with Tronox Limited’s condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q, as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2012. This discussion contains forward-looking statements that involve risks and uncertainties, and actual results could differ materially from those discussed in the forward-looking statements as a result of numerous factors.

This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains certain financial measures, in particular the presentation of Income from Operations, EBITDA and Adjusted EBITDA, which are not presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). We are presenting these non-U.S. GAAP financial measures because they provide us and readers of this Form 10-Q with additional insight into our operational performance relative to earlier periods and relative to our competitors. We do not intend for these non-U.S GAAP financial measures to be a substitute for any U.S. GAAP financial information. Readers of these statements should use these non-U.S. GAAP financial measures only in conjunction with the comparable U.S. GAAP financial measures. A reconciliation of Income from Operations to Income from Continuing Operations, the most comparable U.S. GAAP measure is provided herein. A reconciliation of Net income to EBITDA and Adjusted EBITDA is also provided herein.

Executive Overview

We are a global leader in the production and marketing of titanium bearing mineral sands and titanium dioxide pigment (“TiO₂”). We are the third largest global producer and marketer of TiO₂ manufactured via chloride technology, as well as the third largest global producer of titanium feedstock and a leader in global zircon production. We have operations in North America, Europe, South Africa and the Asia-Pacific region. We operate three TiO₂ facilities at the following locations: Hamilton, Mississippi; Botlek, The Netherlands; and Kwinana, Western Australia, representing approximately 465,000 tonnes of annual TiO₂ production capacity. Additionally, we operate three separate mining operations: KwaZulu-Natal (“KZN”) Sands located in South Africa, Namakwa Sands located in South Africa and Cooljarloo Sands located in Western Australia, which have a combined annual production capacity of approximately 753,000 tonnes of titanium feedstock and approximately 265,000 tonnes of zircon.

We have two reportable operating segments, Mineral Sands and Pigment. Corporate and other is comprised of our electrolytic manufacturing and marketing operations, as well as our corporate activities.

The Mineral Sands segment includes the exploration, mining and beneficiation of mineral sands deposits. These operations produce titanium feedstock, including chloride slag, slag fines and rutile, as well as zircon and pig iron. Titanium feedstock is used primarily to manufacture TiO₂. Zircon is a mineral which is primarily used as an opacifier in ceramic glazes for tiles, plates, dishes and industrial products. Pig iron is a metal material used in the steel and metal casting industries to create wrought iron, cast iron and steel.

The Pigment segment primarily produces and markets TiO₂. TiO₂ is used in a wide range of products due to its ability to impart whiteness, brightness and opacity. TiO₂ is used extensively in the manufacture of paint and other coatings, plastics and paper and in a wide range of other applications, including inks, fibers, rubber, food, cosmetics and pharmaceuticals. TiO₂ is a critical component of everyday consumer applications due to its superior ability to cover or mask other materials effectively and efficiently relative to alternative white pigments and extenders. We believe that, at present, TiO₂ has no effective substitute because no other white pigment has the physical properties for achieving comparable opacity and brightness or can be incorporated in a cost-effective manner.

 41 

Acquisition of Mineral Sands Business

Because we believe that becoming vertically integrated will benefit us by assuring our access to critical supply, retaining cash and margin in the Company, and enabling general operating flexibility, we acquired a global producer of mineral sands with production facilities and sales and marketing presence strategically positioned throughout the world. Specifically, we acquired 74% of Exxaro Resources Ltd’s (“Exxaro”) South African mineral sands operations, including its Namakwa and KZN Sands mines, separation and slag furnaces, along with its 50% share of the Tiwest Joint Venture in Western Australia (together the “mineral sands business”) (the “Transaction”). On June 15, 2012, the date of the Transaction (the “Transaction Date”), the existing business of Tronox Incorporated was combined with the mineral sands business under Tronox Limited. As such, as of the Transaction Date, we own 100% of the operations formerly operated by the Tiwest Joint Venture.

Prior to the Transaction Date, Tronox Incorporated operated the Tiwest Joint Venture with Exxaro Australia Sands Pty Ltd., a subsidiary of Exxaro, which operated a chloride process TiO₂ plant located in Kwinana, Western Australia, a mining operation in Cooljarloo, Western Australia, and a mineral separation plant and a synthetic rutile processing facility, both in Chandala, Western Australia.

Recent Developments

Fairbreeze Water Use License — During the week of November 4, 2013, Tronox received notice that the Mtunzini Conservancy has filed an appeal of the Water Use License granted by the South African Department of Water Affairs for our KwaZulu-Natal Fairbreeze mine. The filing of the appeal requires Tronox to suspend on-going construction at the mine site. Tronox plans to file a petition with the Ministry to lift the stay and continue construction on the site while the appeal is pending before a South African Tribunal.   While the appeal and subsequent stay on construction were anticipated in our operating planning, there can be no assurance regarding the Ministry’s disposition of our petition.

Dividends Declared — On November 5, 2013, the Board declared a quarterly dividend of $0.25 per share to holders of our Class A Shares and Class B Shares at the close of business on November 18, 2013, totaling $29 million, which will be paid on December 3, 2013. On August 6, 2013, the Board declared a quarterly dividend of $0.25 per share to holders of our Class A Shares and Class B Shares at the close of business on August 19, 2013, totaling $29 million, which was paid on September 4, 2013. During the nine months ended September 30, 2013, the Company paid dividends of $86 million. See Note 15 of Notes to unaudited Condensed Consolidated Financial Statements.

Liquidation of a Non-operating Subsidiary — On September 12, 2013, we completed the liquidation of our non-operating Zurich branch of Tronox Luxembourg S.a.r.l., and recognized a noncash loss from the realization of cumulative translation adjustments of $10 million, which was recorded in “Other income (expense)” on the unaudited Condensed Consolidated Statements of Operations. See Note 15 of Notes to unaudited Condensed Consolidated Financial Statements.

Term Loan — On March 19, 2013, we entered into an Amended and Restated Credit and Guaranty Agreement (the “Amended and Restated Credit Agreement”). Pursuant to the Amended and Restated Credit Agreement, we obtained a $1.5 billion senior secured term loan (the “Term Loan”), which matures on March 19, 2020. See Note 11 of Notes to unaudited Condensed Consolidated Financial Statements.

Extinguishment of Debt — On February 28, 2013, we repaid the outstanding principal balance of $149 million, plus interest, related to the $150 million Senior Secured Delayed Draw Term Loan (the “Senior Secured Delayed Draw Term Loan”). See Note 11 of Notes to unaudited Condensed Consolidated Financial Statements.

 42 

Business Environment

The following discussion includes trends and factors that may affect future operating results.

Vertical Integration — Our integration plan is on track to more fully demonstrate the material cost advantages it gives us. The vertical integration of titanium feedstock and TiO₂ production provides us with a secure and cost competitive supply of high grade titanium feedstock over the long term. Our ability to supply all of the feedstock that our pigment operations require enables us to balance our consumption and sales in ways that we believe our competitors cannot. Beginning with the first quarter of 2013, titanium feedstock sold internally to the pigment segment increased. As a result, during the first quarter of 2013, we cancelled, at our option and without penalty, contracts with two external ore suppliers. During the third quarter of 2013, all Pigment segment feedstock purchases were from the Mineral Sands segment.

Mineral Sands — Titanium feedstock selling prices declined during the third quarter of 2013 and will remain under pressure into the fourth quarter. A moderate decline in pricing may occur for certain feedstock products into specific applications before a recovery that is expected during the first half of 2014.  Both zircon and low manganese pig iron pricing remained in a narrow range from second quarter levels into the third quarter and price stability is forecast for the fourth quarter.

Pigment — During the third quarter of 2013, average feedstock costs were $1,188 per metric ton, down from $1,333 per metric ton in the second quarter of 2013. Additionally, during the third quarter of 2013, we saw stable demand of TiO₂ sales volumes across all regions compared to the second quarter of 2013; however, we experienced a slight decrease in selling prices during the third quarter.

Competition — We operate in highly competitive markets, and face competition not only from chloride process pigment producers, but also sulphate process pigment producers. Moreover, because transportation costs are minor relative to the cost of our product, there is also some competition between products produced in one region versus products produced in another region.

Seasonality — The demand for TiO₂ during a given year is subject to seasonal fluctuations. Because TiO₂ is widely used in paint and other coatings, titanium feedstock is in higher demand prior to the painting season (spring and summer in the Northern Hemisphere), and pig iron is in lower demand during the European summer holidays, when many steel plants and foundries undergo maintenance. Zircon generally is a non-seasonal product but is negatively impacted by the Chinese winter and New Year celebrations due to reduced zircon demand from China.

Currency Exchange Rates — The financial condition and results of operations of our operating entities in The Netherlands, Australia and South Africa are reported in various foreign currencies and then converted into U.S. dollars at the applicable exchange rates for inclusion in our consolidated financial statements. As a result, any volatility of the U.S. dollar against these foreign currencies creates uncertainty and may have a positive or negative impact on reported sales and operating results. Foreign currency effects appear in our financial statements in several ways. First, they impact reported amounts of revenues and expenses and are embedded in each line item of the financial statements. Second, for remeasurements in reported asset and liability amounts, changes are reported in either other income (expense) on the unaudited Condensed Consolidated Statements of Operations or in cumulative translation adjustments in “Accumulated other comprehensive income (loss)” on the unaudited Condensed Consolidated Balance Sheets. For the three and nine months ended September 30, 2013, the U.S. dollar strengthened approximately 2% and 13%, respectively, against the South African Rand, while remaining relatively flat against both the Euro and the Australian dollar.

Environmental — We currently report and manage greenhouse gas (“GHG”) emissions as required by law for sites located in areas (European Union/Australia) requiring such managing and reporting. While the United States has not adopted any federal climate change legislation, the Environmental Protection Agency (the “EPA”) has introduced some GHG programs. For example, under the EPA’s GHG “Tailoring Rule,” expansions or new construction could be subject to the Clean Air Act’s Prevention of Significant Deterioration (“PSD”) requirements. Some of our facilities are currently subject to GHG emissions monitoring and reporting. Changes or additional requirements due to GHG regulations could impact our capital and operating costs. However, it is not possible at the present time to estimate any financial impacts to these U.S. operating sites. Also, some in the scientific community believe that increasing concentrations of GHGs in the atmosphere may result in climatic changes. Depending on the severity of climatic changes, our operations could be adversely affected.

 43 

Consolidated Results of Operations

	Three Months Ended September 30,									Nine Months Ended September 30,
	2013			2012			Variance			2013			2012			Variance
Net Sales	$	491		$	487		$	4		$	1,486		$	1,350		$	136
Cost of goods sold		437			444			(7	)		1,350			1,025			325
Gross Margin		54			43			11			136			325			(189	)
Selling, general and administrative expenses		45			60			(15	)		137			207			(70	)
Income (Loss) from Operations		9			(17	)		26			(1	)		118			(119	)
Interest and debt expense		(32	)		(18	)		(14	)		(94	)		(40	)		(54	)
Other income (expense)		(10	)		—			(10	)		18			(4	)		22
Gain on bargain purchase		—			—			—			—			1,055			(1,055	)
Income (Loss) before Income Taxes		(33	)		(35	)		2			(77	)		1,129			(1,206	)
Income tax provision		(8	)		34			(42	)		(10	)		100			(110	)
Net (Loss) Income		(41	)		(1	)		(40	)		(87	)		1,229			(1,316	)
Income attributable to noncontrolling interest		8			2			6			32			2			30
Net (Loss) Income attributable to Tronox Limited	$	(49	)	$	(3	)	$	(46	)	$	(119	)	$	1,227		$	(1,346	)

Net sales for the third quarter of 2013 and nine months ended September 30, 2013 increased 1% and 10%, respectively. The increase in net sales for the three months ended September 30, 2013 is primarily due to higher volumes of $161 million and favorable currency translation of $4 million, offset by lower pricing and mix of $161 million. The increase in net sales for the nine months ended September 30, 2013 reflects the impact of the acquired businesses of $273 million and higher volumes across all business units of $259 million, partially offset by lower selling prices and mix of $396 million. Higher volumes in the pigment business primarily reflect an increase in shipments to the Asia-Pacific, North American and European regions, while Mineral Sands volumes grew due to stronger sales of zircon. Lower prices primarily resulted from softening market demand in the pigment business due to industry destocking and regional sales mix. The impact of foreign currency exchange rates was negligible on the nine months ended September 30, 2013 as compared to 2012.

Cost of goods sold for the third quarter of 2013 decreased 2% while cost of goods sold for the nine months ended September 30, 2013 increased 32%.  The three months comparison principally reflects the impact of the higher volumes in both pigment and mineral sands business of $118 million, partially offset by lower ore and production costs of $109 million and favorable currency translation of $16 million.  The nine months comparison principally reflects the impact of the acquired business of $191 million and higher volumes in both pigment and mineral sands business of $185 million, partially offset by lower ore and production costs of $30 million and favorable currency translation of $21million. For the three and nine months ended September 30, 2013, cost of goods sold includes a net credit of $24 million and $18 million, respectively, related to noncash amortization of inventory step-up and unfavorable ore sales contracts as a result of our purchase price allocation compared to a net charge of $64 million and $85 million for the three and nine months ended September 30, 2012, respectively.

Our gross margin increased during the third quarter of 2013 to 11% of net sales as compared to 9% of net sales in the third quarter of 2012. The increase for the quarter was primarily due to lower costs and favorable currency translation outpacing lower selling prices. During the nine months ended September 30, 2013, our gross margin decreased to 9% of net sales as compared to 24% of net sales in the same period during 2012. The decrease for the nine months was principally due to lower selling prices offset by a favorable change in mix towards minerals sands products. For the three months ended September 30, 2013 and 2012, net noncash depreciation, depletion and amortization of $51 million and $27 million, respectively, as a result of purchase accounting impacted the gross margin by 10% and 6%, respectively. For the nine months ended September 30, 2013 and 2012, net noncash depreciation, depletion and amortization of $115 million and $32 million, respectively, as a result of purchase accounting impacted the gross margin by 8% and 2%, respectively.

Selling, general and administrative expenses for the three and nine months ended September 30, 2013 decreased 25% and 34%, respectively. The net decrease during the quarter ended September 30, 2013 compared to the three months ended September 30, 2012 is primarily due to one-time costs incurred in connection with the acquisition of the Mineral Sands business of $12 million, comprised mainly of transaction and severance costs. During the nine months ended September 30, 2013, the acquired business contributed an

 44 

incremental $6 million to our total selling, general and administrative costs compared to the same period in 2012. The remaining net decrease during 2013 compared to 2012 is primarily due to one-time costs incurred in connection with the acquisition of Mineral Sands business of $94 million, comprised of transfer taxes of $37 million and other transaction costs and severance of $36 million, as well as share-based compensation awards of $21 million.

The increase in interest and debt expense for the three and nine months is primarily attributable to interest expense on the $900 million aggregate principal amount of 6.375% senior notes due 2020 (the “Notes”), the Term Loan and the Term Facility, as detailed below:

	Three Months Ended September 30,							Nine Months Ended September 30,
	2013		2012		Variance			2013		2012		Variance
Notes	$	14	$	7	$	7		$	43	$	7	$	36
Term Loan		17		—		17			37		—		37
Term Facility		—		8		(8	)		6		18		(12	)
Other		1		3		(2	)		8		15		(7	)
Total	$	32	$	18	$	14		$	94	$	40	$	54

Other expense during the three months ended September 30, 2013 is primarily attributable to a $10 million loss in the third quarter of 2013 related to the realization of cumulative translation adjustments on the liquidation of a subsidiary. Other income in the nine months ended September 30, 2013 is primarily attributable to a gain on foreign currency exchange rates of $28 million due to a strengthening U.S. dollar as compared to the South African Rand and Australian dollar, as well as interest income of $5 million, partially offset by a $10 million loss related to the realization of cumulative translation adjustments on the liquidation of a subsidiary and a $4 million loss on the early extinguishment of debt.

The negative effective tax rates for the three months and the nine months ended September 30, 2013, differ from the Australian statutory rate of 30% primarily due to withholding tax accruals, prior year true-ups, valuation allowances in various jurisdictions, and income in foreign jurisdictions taxed at rates different than 30%.

The negative effective tax rate for the nine months ended September 30, 2012, differs from the U.S. statutory rate of 35% primarily as a consequence of the Company re-domiciling in Australia. Because the Australian tax laws provide for a resetting of the tax basis of the business assets to market value, the Company recorded a tax benefit related to this market value basis adjustment. The overall tax benefit from this basis adjustment increase was partially offset by a valuation allowance established for the portion of the tax benefit which the Company believes will not be realized. Because this basis change did not pertain to an entity acquired in the Transaction, this net tax benefit was recorded through tax expense and did not impact the Company’s gain on bargain purchase.

Operations Review of Segment Revenue and Profit

Net Sales

	Three Months Ended September 30,									Nine Months Ended September 30,
	2013			2012			Variance			2013			2012			Variance
Mineral Sands segment	$	245		$	272		$	(27	)	$	855		$	444		$	411
Pigment segment		300			280			20			892			990			(98	)
Corporate and other		35			38			(3	)		97			97			0
Eliminations		(89	)		(103	)		14			(358	)		(181	)		(177	)
Net Sales	$	491		$	487		$	4		$	1,486		$	1,350		$	136

Mineral Sands segment

Net sales for the third quarter of 2013 decreased 10% principally due to lower selling prices of $115 million, offset by a $88 million increase due to sales volumes.  Minerals Sands selling prices declined across all product lines, especially zircon and rutile. Minerals sales volumes were higher primarily due to higher zircon volumes and to increased shipments of synthetic rutile to our pigments business, as we achieve full internal sourcing.

 45 

Net sales for the nine months ended September 30, 2013 increased 93%, compared to the same periods in 2012, primarily attributable to the acquired business which, on a segment basis, contributed an incremental $461 million during 2013 versus 2012. The remaining net decrease for the nine months was principally due to lower selling prices of $190 million, offset by a $144 million increase due to sales volumes. Minerals Sands selling prices declined across all product lines, especially zircon and rutile. Minerals sales volumes were higher primarily due to higher zircon volumes and to increased shipments of synthetic rutile to our pigments business, as we achieve full internal sourcing. For the nine months ended September 30, 2013, the effect of changes in foreign currency negatively impacted mineral sands net sales by $4 million.

Pigment segment

Pigment segment net sales increased 7% during the third quarter of 2013 as compared to the third quarter of 2012. The increase is primarily due to higher volumes of $94 million, offset by a decrease in selling prices and mix of $77 million in the third quarter of 2013 compared to the third quarter of 2012. The volume impact reflects increased shipments to the North American, European and Asia-Pacific regions. For the three months ended September 30, 2013, the effect of changes in foreign currency translation positively impacted pigment net sales by $3 million.

Pigment segment net sales decreased 10% during the nine months ended September 30, 2013 as compared to the same period during 2012. The decrease is primarily due to a decrease in selling prices and mix of $264 million, offset by higher volumes of $162 million. The volume impact reflects increased shipments to the North American, European and Asia-Pacific regions. For the nine months ended September 30, 2013, the effect of changes in foreign currency translation positively impacted pigment net sales by $4 million.

Corporate and other

Corporate and other includes our electrolytic manufacturing business. Net sales decreased 8% during the third quarter of 2013 as compared to the third quarter of 2012. The change in electrolytic and other chemical products net sales was primarily due to decreased volumes of electrolytic manganese dioxide (“EMD”) and sodium chlorate.  Net sales increased 1% remained flat during the nine months ended September 30, 2013 as compared to the same period in 2012.

Income from Operations

	Three Months Ended September 30,									Nine Months Ended September 30,
	2013			2012			Variance			2013			2012			Variance
Mineral Sands segment	$	41		$	32		$	9		$	205		$	129		$	76
Pigment segment		(29	)		(4	)		(25	)		(153	)		142			(295	)
Corporate and other		(20	)		(26	)		6			(55	)		(130	)		75
Eliminations		17			(19	)		36			2			(23	)		25
Income (loss) from operations		9			(17	)		26			(1	)		118			(119	)
Interest and debt expense		(32	)		(18	)		(14	)		(94	)		(40	)		(54	)
Other income (expense)		(10	)		—			(10	)		18			(4	)		22
Gain on bargain purchase		—			—			—			—			1,055			(1,055	)
Income (loss) from operations before taxes		(33	)		(35	)		2			(77	)		1,129			(1,206	)
Income tax provision		(8	)		34			(42	)		(10	)		100			(110	)
Net income (loss)	$	(41	)	$	(1	)	$	(40	)	$	(87	)	$	1,229		$	(1,316	)

Mineral Sands segment

During the three months ended September 30, 2013, income from operations increased 28% compared to the same periods during 2012, which is primarily attributable to higher volumes of $42 million, lower production costs of $57 million and favorable currency translation of $24 million, offset by a $114 million decrease in selling prices. Cost of goods sold in the Mineral Sands segment in the three months ended September 30, 2013, includes a net credit of $24 million related to purchase accounting adjustments for inventory step-up and unfavorable contract amortization compared to a net noncash charge of $64 million in the three months ended September 30, 2012.

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During the nine months ended September 30, 2013, income from operations increased 59% compared to the same periods during 2012. For the nine months ended September 30, 2013, the acquired businesses contributed an incremental $123 million to segment income from operations. The remaining decrease of $53 million during the nine months ended September 30, 2013 is primarily attributable to a $190 million decrease in selling prices offset by lower production costs of $52 million, higher volumes of $64 million and favorable currency translation of $25 million. Cost of goods sold in the Mineral Sands segment in the nine months ended September 30, 2013, includes a net credit of $18 million related to purchase accounting adjustments for inventory step-up and unfavorable contract amortization compared to a net noncash charge $74 million in the nine months ended September 30, 2012.

Pigment segment

During the three months ended September 30, 2013, income from operations decreased $25 million compared to the same period during 2012, which was primarily driven by lower selling prices and mix of $77 million, offset principally by lower unit costs of $51 million and higher volumes of $1 million during the third quarter of 2013.

During the nine months ended September 30, 2013, income from operations decreased over 100% compared to the same periods during 2012, which was primarily driven by lower selling prices and mix of $265 million, during the nine months ended September 30, 2013.

Corporate and other

Operations improved by $6 million and $75 million during the three and nine months ended September 30, 2013 compared to the same periods in 2012, respectively. The improvement for both periods was due to decrease in corporate SG&A costs (principally due to one-time costs associated with the acquisition of the mineral sands business), offset by slightly higher loss from operations of the electrolytic and other chemical products business.

Non-U.S. GAAP Financial Measures

EBITDA and Adjusted EBITDA, which are used by management to measure performance, are non-U.S. GAAP financial measures. Management believes that EBITDA is useful to investors, as it is commonly used in the industry as a means of evaluating operating performance. EBITDA and Adjusted EBITDA are not recognized terms under U.S. GAAP and do not purport to be an alternative measure of our financial performance as determined in accordance with U.S. GAAP. Because other companies may calculate EBITDA and Adjusted EBITDA differently than we do, EBITDA and Adjusted EBITDA, as presented herein, may not be comparable to similarly titled measures reported by other companies.

Management believes these non-U.S. GAAP financial measures:

· Reflect our ongoing business in a manner that allows for meaningful period-to-period comparison and analysis of trends in our business, as they exclude income and expense that are not reflective of ongoing operating results;

· Provide useful information in understanding and evaluating our operating results and comparing financial results across periods;

· Provide a normalized view of our operating performance by excluding items that are either noncash or non-recurring in nature;

· Enable investors to assess our compliance with financial covenants under our debt instruments; and

· Adjusted EBITDA is one of the primary measures management uses for planning and budgeting processes and to monitor and evaluate financial and operating results.

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The following table reconciles net income (loss) to EBITDA and Adjusted EBITDA for the periods presented:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Net income (loss)	$	(41	)	$	(1	)	$	(87	)	$	1,229
Interest and debt expense, net of interest income		29			17			89			39
Income tax provision (benefit)		8			(34	)		10			(100	)
Depreciation, depletion and amortization expense		92			71			238			124
EBITDA		88			53			250			1,292
Share-based compensation		5			2			16			29
Amortization of inventory step-up and unfavorable ore sales contracts from purchase price allocation, net		(24	)		64			(18	)		85
Gain on bargain purchase		—			—			—			(1,055	)
Foreign currency remeasurement		4			(6	)		(15	)		(5	)
Transaction related costs		—			12			—			73
Other items(a)		19			9			33			13
Adjusted EBITDA	$	92		$	134		$	266		$	432

(a) Includes noncash pension and postretirement costs, accretion expense, severance expense, and other non-recurring items.

Financial Condition and Liquidity

The following table provides information for the analysis of our historical financial condition and liquidity:

	September 30, 2013		December 31, 2012
Cash and cash equivalents	$	1,457	$	716
Working capital (1)	$	2,381	$	1,706
Net debt (2)	$	947	$	929
Total assets	$	5,785	$	5,511
Total long-term debt	$	2,404	$	1,615

(1)	Represents excess of current assets over current liabilities.
(2)	Represents excess of debt over cash and cash equivalents.

As of September 30, 2013, our total liquidity was $1,814 million, which was comprised of $267 million available under the $300 million UBS Revolver (as defined below), $90 million available under the ABSA Revolver (as defined below) and $1,457 million in cash and cash equivalents. As of September 30, 2013, we had $25 million in letters of credit issued against the UBS Revolver.

At September 30, 2013, we held $1,457 million in cash and cash equivalents in the respective jurisdictions: $711 million in Europe, $446 million in Australia, $165 million in South Africa and $135 million in the United States. Our credit facilities limit transfers of funds from subsidiaries in the United States to certain foreign subsidiaries.

At September 30, 2013, Tronox Limited had various subsidiaries with positive earnings.  However, since Australia is a territorial taxing jurisdiction, they are not accessible for Australian tax purposes.  The Company has made no provision for deferred taxes for these undistributed earnings because they are considered to be indefinitely reinvested outside of the parents’ taxing jurisdictions. The distribution of these earnings in the form of dividends or otherwise may subject the Company to U.S. federal and state income taxes and potentially to foreign withholding taxes.

The use of our cash will include servicing our interest and debt repayment obligations, making pension contributions and funding capital expenditures for innovative initiatives, productivity enhancements and maintenance and safety requirements.

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Capital Resources

Short-Term Debt

We have a $300 million global senior secured asset-based syndicated revolving credit agreement with UBS AG (the “UBS Revolver”) and a R900 million (approximately $90 million as of September 30, 2013) revolving credit facility with ABSA Bank Limited acting through its ABSA Capital Division (the “ABSA Revolver”). At September 30, 2013, we had not drawn on either revolver. At September 30, 2013, we had outstanding letters of credit, bank guarantees and performance bonds of approximately $45 million, of which $25 million in letters of credit were issued under the UBS Revolver and $18 million were bank guarantees issued by ABSA.

See Note 11 of Notes to unaudited Condensed Consolidated Financial Statements for additional information related to our short-term and long-term debt.

Debt Covenants

At September 30, 2013, we were in compliance with our debt covenants. See Note 11 of Notes to unaudited Condensed Consolidated Financial Statements for additional information related to our debt covenants.

Cash Flows

The following table presents cash flow for the periods indicated:

	Nine Months Ended September 30,
	2013			2012
Cash provided by operating activities	$	210		$	75
Cash (used in) provided by investing activities		(104	)		23
Cash provided by financing activities		646			522
Effects of exchange rate changes on cash and cash equivalents		(11	)		—
Net increase in cash and cash equivalents	$	741		$	620

Cash Flows from Operating Activities — Cash flows from operating activities for 2013 were a source of funds of $210 million compared to a source of funds of $75 million in 2012. The source of funds during 2013 was primarily attributable to a decrease in inventory offset by cash used in operations.

Cash Flows from Investing Activities — Net cash used by investing activities during 2013 reflects $104 million of capital expenditures. Capital expenditures for the remainder of 2013 are expected to be in the range of $70 million to $80 million.

Cash Flows from Financing Activities — Net cash provided by financing activities during 2013 of $646 million was comprised of the following:

Cash inflows:

· Refinancing of the Senior Secured Term Loan with the Term Loan resulting in a cash inflow of $945 million.

Cash outflows:

· Repayment of the Senior Secured Delayed Draw Term Loan of $149 million;

· Repayment of the ABSA Revolver of $29 million;

· Repayment of the Term Facility of $4 million;

· Repayment of other debt of $3 million;

· Payment of debt issuance costs associated with the refinancing of the Senior Secured Term Loan with the Term Loan of $29 million; and

· Dividends paid of $86 million.

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Contractual Obligations

The following table sets forth information relating to our contractual obligations as of September 30, 2013:

	Contractual Obligation Payments Due by Year
	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Long-term debt and lease financing (including interest) (1)	$	3,267	$	145	$	288	$	281	$	2,553
Purchase obligations (2)		480		83		211		70		116
Operating leases		226		13		45		39		129
Total	$	3,973	$	241	$	544	$	390	$	2,798

(1) During 2013, we repaid the Senior Secured Delayed Draw and modified the Senior Secured Term Loan with a $1.5 billion Term Loan. We calculated the Term Loan interest at a base rate of 1% plus a margin of 3.5%. See Note 11 of Notes to unaudited Condensed Consolidated Financial Statements.

(2) Includes obligations to purchase requirements of process chemicals, supplies, utilities and services. During 2013, the Company terminated ore contracts with two suppliers.

Recent Accounting Pronouncements

See Note 3 of Notes to unaudited Condensed Consolidated Financial Statements for recently issued accounting pronouncements.

Environmental Matters

We are subject to a broad array of international, federal, state and local laws and regulations relating to safety, pollution, protection of the environment and the generation, storage, handling, transportation, treatment, disposal and remediation of hazardous substances and waste materials. In the ordinary course of business, we are subject to frequent environmental inspections and monitoring and occasional investigations by governmental enforcement authorities. Under these laws, we are or may be required to obtain or maintain permits or licenses in connection with our operations. In addition, under these laws, we are or may be required to remove or mitigate the effects on the environment of the disposal or release of chemical, petroleum, low-level radioactive and other substances at our facilities. We may incur future costs for capital improvements and general compliance under environmental, health and safety laws, including costs to acquire, maintain and repair pollution control equipment. Environmental laws and regulations are becoming increasingly stringent, and compliance costs are significant and will continue to be significant in the foreseeable future. There can be no assurance that such laws and regulations or any environmental law or regulation enacted in the future is not likely to have a material effect on our business. We are in compliance with applicable environmental rules and regulations. Currently, we do not have any outstanding notices of violations or orders from regulatory agencies.

At many of our operations, we comply with worldwide, voluntary standards developed by the International Organization for Standardization (“ISO”), a nongovernmental organization that promotes the development of standards and serves as a bridging organization for quality and environmental standards, such as ISO 9002 for quality management and ISO 14001 for environmental management.

In December 2006, the European parliament and European council approved a new European regulatory framework for chemicals called REACH. REACH took effect on June 1, 2007, and the program it establishes will be phased in over 11 years. The registration, evaluation and authorization phases of the program will require expenditures and resource commitments in order to, for example, participate in mandatory data-sharing forums; acquire, generate and evaluate data; prepare and submit dossiers for substance registration; obtain legal advice and reformulate products, if necessary.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to various market, credit, operational and liquidity risks in the normal course of business, which are discussed below. We manage these risks through normal operating and financing activities and, when appropriate, through the use of derivative instruments. We do not invest in derivative instruments for speculative purposes, but historically have entered into, and may enter into, derivative instruments for hedging purposes in order to reduce the exposure to fluctuations in interest rates, natural gas prices and exchange rates.

 50 

Commodity Price Risk

A substantial portion of our products and raw materials are commodities that reprice as market supply and demand fundamentals change. Accordingly, product margins and the level of our profitability tend to vary with changes in the business cycle and are expected to do so in the near term as ore prices are expected to fluctuate over the next few years. The Company tries to protect against such instability through various business strategies. These include provisions in sales contracts allowing us to pass on higher raw material costs through timely price increases and formula price contracts to transfer or share commodity price risk.

Credit Risk

A significant portion of our liquidity is concentrated in trade accounts receivable that arise from sales of TiO₂ and titanium feedstock to customers in the TiO₂ industry. The industry concentration has the potential to impact the Company’s overall exposure to credit risk, either positively or negatively, in that its customers may be similarly affected by changes in economic, industry or other conditions. The Company performs ongoing credit evaluations of its customers, and uses credit risk insurance policies from time to time as deemed appropriate to mitigate credit risk but generally does not require collateral. The Company maintains allowances for potential credit losses based on historical experience. For the period ended September 30, 2013, the Company’s ten largest TiO₂ customers represented approximately 27% of total net sales; however, no single customer accounted for more than 10% of total net sales. For the period ended September 30, 2013, the Company’s ten largest mineral customers represented approximately 19% of total net sales with no single customer accounted for more than 10%.

Interest Rate Risk

Our exposure to interest rate risk is minimized by the fact that our $1.5 billion of floating rate debt includes a Libor floor of 1%. As such, Libor would need to increase from the rate in effect at September 30, 2013 to greater than 1% before our borrowing rate would increase. Using a sensitivity analysis as of September 30, 2013, a hypothetical 1% increase in interest rates would result in an increase to pre-tax income of approximately $11 million on an annualized basis. This is due to the fact that earnings on our floating rate financial assets of $1.5 billion at September 30, 2013 would increase by the full 1% while the interest expense on our floating rate debt would increase by less than the full 1%.

Foreign Exchange Risk

The Company manufactures and markets its products in a number of countries throughout the world and, as a result, is exposed to changes in foreign currency exchange rates, particularly in Australia, South Africa and The Netherlands. The exposure is more prevalent in South Africa and Australia as the majority of revenues are earned in U.S. dollars while expenses are incurred in local currencies. The foreign exchange risk in Europe however, is partially mitigated as the majority of revenues and expenses are in the same local currency creating a partially natural hedge. Since the Company is exposed to movements in the South African Rand and the Australian Dollar versus the US dollar, we have entered into forward contracts to buy and sell foreign currencies as “economic hedges” for these foreign currency transactions.

Item 4. Controls and Procedures

(a)  Disclosure Controls and Procedures

As of September 30, 2013, our management, including our Chief Executive Officer and Chief Financial Officer, have conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15(b) of the Exchange Act. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures are effective as of the end of the period covered by this Report.

(b) Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting during the third quarter ended September 30, 2013 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, the Company may be party to a number of legal and administrative proceedings involving environmental and/or other matters in various courts or agencies. These proceedings, individually and in the aggregate, may have a material adverse effect on the Company. These proceedings may be associated with facilities currently or previously owned, operated or used by the Company and/or its predecessors, some of which may include claims for personal injuries, property damages, cleanup costs and other environmental matters. Current and former operations of the Company may also involve management of regulated materials, which are subject to various environmental laws and regulations including the Comprehensive Environmental Response Compensation and Liability Act (“CERCLA”), the Resource Conservation and Recovery Act (“RCRA”) or state equivalents. Similar environmental laws and regulations and other requirements exist in foreign countries in which the Company operates.

Legal — During 2013, the Western Australia Office of State Revenue (the “OSR”) reviewed their technical position on the imposition of stamp duty on the transfer of Tronox Incorporated’s shares related to Kerr-McGee’s restructuring in 2002 and from the share transfer related to the spinoff of Tronox Incorporated from Kerr-McGee in 2005. On October 20, 2012, the OSR rendered its assessment of $5 million, comprised of a primary stamp duty liability of $3 million and penalty tax of $2 million. As required by law, the Company paid the entire amount of the assessment in January 2013. On October 11, 2013, the OSR denied the Company’s objection to the interest penalty. The Company is assessing its future options with respect to this matter.

Item 1A. Risk Factors

In addition to the other information set forth in this Quarterly Report, you should carefully consider the factors discussed under “Risk Factors” included within our Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2012. The risks described in the Form 10-K are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results. There have been no material changes from the risk factors disclosed under the heading “Risk Factors” in our Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

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Item 6. Exhibits

10.1	Form 8-K Current Report filed August 7, 2013, Entry into a Material Definitive Agreement, Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
10.2 20.1 20.2 20.3 20.4 31.1*	Form 8-K Current Report filed September 20, 2013. Form S-4/A Registration Statement filed August 1, 2013. Form S-4/A Registration Statement filed August 2, 2013. Form S-4/A Registration Statement filed August 19, 2013. Form S-4/A Registration Statement filed August 28, 2013. Rule 13a-14(a) Certification of Thomas Casey.
31.2*	Rule 13a-14(a) Certification of Katherine C. Harper.
32.1*	Section 1350 Certification for Thomas Casey.
32.2*	Section 1350 Certification for Katherine C. Harper.
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

* Each document marked with an asterisk is filed herewith.

 53 

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: November 7, 2013

TRONOX LIMITED
By:	/s/ Thomas Casey
Name:	Thomas Casey
Title:	Chairman of the Board and Chief Executive Officer
By:	/s/ Katherine C. Harper
Name:	Katherine C. Harper
Title:	Senior Vice President and Chief Financial Officer

 54 

EX-31

EXHIBIT 31.1

SECTION 302 CERTIFICATION

I, Thomas Casey, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 of Tronox Ltd (the “Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: November 7, 2013

/s/ Thomas Casey

Thomas Casey

Chairman and Chief Executive Officer

       

EX-31

EXHIBIT 31.2

SECTION 302 CERTIFICATION

I, Katherine C. Harper, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 of Tronox Ltd (the “Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: November 7, 2013

/s/ Katherine C. Harper

Katherine C. Harper

Senior Vice President and Chief Financial Officer

       

EX-32

EXHIBIT 32.1

WRITTEN STATEMENT OF CHIEF EXECUTIVE OFFICER

FURNISHED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002 (18 USC. SECTION 1350)

AND FOR THE PURPOSE OF COMPLYING WITH RULE 13a-14(b)

OF THE SECURITIES EXCHANGE ACT OF 1934.

November 7, 2013

Securities and Exchange Commission

100 F Street, NE

Washington, DC 20549

Pursuant to 18 U.S.C. § 1350, the undersigned officer of Tronox Limited (the “Registrant”) hereby certifies that the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/s/ Thomas Casey

Thomas Casey

Chairman and Chief Executive Officer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.

       

EX-32

EXHIBIT 32.2

WRITTEN STATEMENT OF PRINCIPAL FINANCIAL OFFICER

FURNISHED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002 (18 USC. SECTION 1350)

AND FOR THE PURPOSE OF COMPLYING WITH RULE 13a-14(b)

OF THE SECURITIES EXCHANGE ACT OF 1934.

November 7, 2013

Securities and Exchange Commission

100 F Street, NE

Washington, DC 20549

Pursuant to 18 U.S.C. § 1350, the undersigned officer of Tronox Limited (the “Registrant”) hereby certifies that the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/s/ Katherine C. Harper

Katherine C. Harper

Senior Vice President and Chief Financial Officer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.

       

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Share-Based Compensation - Restricted Stock Share Activity with Employees (Detail) (Tronox Limited Management Equity Incentive Plan, Restricted Stock, USD $)	9 Months Ended
	Sep. 30, 2013		Sep. 30, 2012
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Number of Shares, Beginning balance	761,065
Number of Shares, Awards granted	820,027		184,571
Number of Shares, Awards earned	(71,981)		(7,550)
Number of Shares, Awards forfeited	(16,338)		(7,985)
Number of Shares, Ending Balance	1,492,773		589,801
Number of Shares, Outstanding awards expected to vest	1,467,461		582,887
Fair Value, Beginning Balance	$ 20.62	[1]		[1]
Fair Value, Awards granted	$ 21.14	[1]	$ 27.11	[1]
Fair Value, Awards earned	$ 24.17	[1]	$ 25.90	[1]
Fair Value, Awards forfeited	$ 23.83	[1]	$ 29.29	[1]
Fair Value, Ending Balance	$ 20.70	[1]	$ 19.87	[1]
Fair Value, Outstanding awards expected to vest	$ 20.67	[1]	$ 19.78	[1]
Awards converted from Tronox Incorporated to Tronox Limited in connection with the Transaction			420,765
Fair Value of Awards converted connection with the Transaction			$ 16.99	[1]
Employees And Directors
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Number of Shares, Beginning balance			1,177,995
Number of Shares, Awards granted			52,915
Number of Shares, Awards earned			(810,145)
Number of Shares, Ending Balance
Fair Value, Beginning Balance			$ 21.48	[2]
Fair Value, Awards granted			$ 24.36	[2]
Fair Value, Awards earned			$ 32.41	[2]
Fair Value, Ending Balance				[2]
Awards converted to Tronox Limited restricted shares in connection with the Transaction			(420,765)
Awards converted to Tronox Limited restricted shares in connection with the Transaction			$ 16.99	[2]

[1] Represents the weighted-average grant-date fair value

[2] Represents weighted average fair value. Liability awards are remeasured to fair value at each reporting date and upon vesting, while equity awards are presented at grant date fair value.

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Derivative Instruments - Fair Value of Derivative Instruments (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013
Derivatives Fair Value [Line Items]
Currency forward contracts, other current assets, fair value	$ 1

XML

Derivative Instruments - Additional Information (Detail) In Millions, unless otherwise specified	Sep. 30, 2013 USD ($)	Sep. 30, 2013 ZAR
Derivatives Fair Value [Line Items]
Currency forward contracts exchange aggregate value	$ 17	6

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Related Party Transactions - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended	9 Months Ended
	Sep. 30, 2013	Jun. 15, 2012	Sep. 30, 2013
Related Party Transaction [Line Items]
Payments made for purchasing transition services	$ 1		$ 5
Reimbursement of payments made for administrative services		9
Parent
Related Party Transaction [Line Items]
Percentage of holding			44.40%
Payments made for purchase of raw materials		$ 173
Tiwest Joint Venture
Related Party Transaction [Line Items]
Percentage of holding	50.00%		50.00%

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Guarantor Condensed Consolidated Financial Statements - Schedule of Guarantor Subsidiaries Condensed Consolidating Balance Sheets (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011
Assets
Cash and cash equivalents	$ 1,457	$ 716	$ 774	$ 154
Property, plant and equipment, net	1,276	1,423
Mineral leaseholds, net	1,269	1,439
Other assets	1,783	1,933
Net Assets	5,785	5,511
Liabilities and Equity
Long-term debt	2,386	1,605
Other liabilities	878	1,024
Total Liabilities	3,264	2,629
Total Equity	2,521	2,882	3,088	752
Total Liabilities and Equity	5,785	5,511
Eliminations
Assets
Investment in subsidiaries	(998)	(1,595)
Other assets	(9,275)	(8,300)
Net Assets	(10,273)	(9,895)
Liabilities and Equity
Other liabilities	(9,224)	(8,248)
Total Liabilities	(9,224)	(8,248)
Total Equity	(1,049)	(1,647)
Total Liabilities and Equity	(10,273)	(9,895)
Parent Company
Assets
Cash and cash equivalents	339	533
Investment in subsidiaries	(1,012)	(622)
Other assets	6,422	6,044
Net Assets	5,749	5,955
Liabilities and Equity
Other liabilities	1,426	1,442
Total Liabilities	1,426	1,442
Total Equity	4,323	4,513
Total Liabilities and Equity	5,749	5,955
Guarantor Subsidiaries
Assets
Cash and cash equivalents	934	82	724	107
Investment in subsidiaries	1,553	1,760
Property, plant and equipment, net	716	747
Mineral leaseholds, net	730	796
Other assets	2,397	2,582
Net Assets	6,330	5,967
Liabilities and Equity
Long-term debt	901	902
Other liabilities	8,085	7,111
Total Liabilities	8,986	8,013
Total Equity	(2,656)	(2,046)
Total Liabilities and Equity	6,330	5,967
Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	184	101	50	47
Investment in subsidiaries	457	457
Property, plant and equipment, net	560	676
Mineral leaseholds, net	539	643
Other assets	2,239	1,607
Net Assets	3,979	3,484
Liabilities and Equity
Long-term debt	1,485	703
Other liabilities	591	719
Total Liabilities	2,076	1,422
Total Equity	1,903	2,062
Total Liabilities and Equity	$ 3,979	$ 3,484

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Accrued Liabilities

9 Months Ended

Sep. 30, 2013

Accrued Liabilities

10. Accrued Liabilities

Accrued liabilities consisted of the following:

	September30, 2013		December31, 2012
Taxes other than income taxes	$	57	$	58
Employee-related costs and benefits		47		45
Sales rebates		19		13
Unfavorable sales contracts		12		64
Interest		7		22
Other		7		7
Total	$	149	$	209

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Inventories - Net of Allowance for Obsolete Inventories and Supplies (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Inventory Disclosure [Abstract]
Inventory on Consignment to Others	$ 47	$ 42

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Condensed Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Current Assets
Cash and cash equivalents	$ 1,457	$ 716
Accounts receivable, net of allowance for doubtful accounts of $1 million and $3 million, respectively	373	391
Inventories	734	914
Prepaid and other assets	44	38
Deferred tax assets	96	114
Total Current Assets	2,704	2,173
Noncurrent Assets
Property, plant and equipment, net	1,276	1,423
Mineral leaseholds, net	1,269	1,439
Intangible assets, net	306	326
Long-term deferred tax assets	148	91
Other long-term assets, net	82	59
Total Assets	5,785	5,511
Current Liabilities
Accounts payable	141	189
Accrued liabilities	149	209
Short-term debt		30
Long-term debt due within one year	18	10
Income taxes payable	14	24
Deferred tax liabilities	1	5
Total Current Liabilities	323	467
Noncurrent Liabilities
Long-term debt	2,386	1,605
Pension and postretirement healthcare benefits	178	176
Asset retirement obligations	99	106
Long-term deferred tax liabilities	220	222
Other long-term liabilities	58	53
Total Liabilities	3,264	2,629
Contingencies and Commitments
Shareholders' Equity
Capital in excess of par value	1,446	1,429
Retained earnings	1,109	1,314
Accumulated other comprehensive loss	(243)	(95)
Total Shareholders' Equity	2,313	2,649
Noncontrolling interest	208	233
Total Equity	2,521	2,882
Total Liabilities and Equity	5,785	5,511
Class A common stock
Shareholders' Equity
Common stock, value	1	1
Total Equity	1	1
Class B common stock
Shareholders' Equity
Common stock, value
Total Equity	$ 0

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Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2013

Recent Accounting Pronouncements

3. Recent Accounting Pronouncements

In March 2013, the Financial Accounting Standards Board (the “FASB”) issued accounting standards update (“ASU”) 2013-5, Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (“ASU 2013-5”), which addresses the treatment of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets within a foreign entity. ASU 2013-5 is effective prospectively for periods beginning after December15, 2013; however early adoption is permitted. The adoption of this guidance is not anticipated to have a significant impact on the consolidated financial statements.

During 2013, the Company adopted ASU 2013-2,Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires the presentation of the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income, if the item is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. The adoption of this guidance did not have a significant impact on the consolidated financial statements.

During 2013, the Company adopted ASU 2013-01,Clarifyingthe Scope of Disclosures about Offsetting Assets and Liabilities, to clarify previously issued guidance related to derivatives that are either offset or subject to an enforceable master netting arrangement or similar agreement. The adoption of this guidance did not have a significant impact on the consolidated financial statements.

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Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2013

Earnings (Loss) Per Share

17. Earnings (Loss) Per Share

The Company calculates basic and diluted earnings (loss) per ordinary share using the two-class method.  Under the two-class method, the earnings used to determine basic earnings per ordinary share are reduced by an amount allocated to participating securities.  Participating securities for the Company include restricted share awards issued under the Tronox Management Equity Incentive Plan and the T-Bucks Employee Participation Plan as both contain non-forfeitable dividend rights and participate equally with ordinary shares with respect to dividends issued or declared. The Company's unexercised options, unexercised Series A and Series B Warrants, and unvested restricted share units do not contain non-forfeitable rights to dividends and are not considered in the calculation of basic earnings per share. 

The Company's unvested restricted shares do not have a contractual obligation to share in losses of the Company.  When the Company records a net loss, none of the loss is allocated to the participating securities.  Consequently, in periods of net loss, the two class method will not have an effect on the Company's basic earnings per share.

Diluted earnings per ordinary share is calculated by dividing net earnings allocable to ordinary shares by the weighted-average number of ordinary shares outstanding for the period, as adjusted for the potential dilutive effect of non-participating restricted share units, options and Series A and Series B Warrants.  The options and Series A and Series B Warrants are included in the calculation of diluted earnings per ordinary share utilizing the treasury stock method.

The computation of basic and diluted loss per share for the periods indicated is as follows:

	ThreeMonths Ended September30,2013				NineMonths Ended September30,2013
Numerator – Basic and Diluted
Net Loss	$	(41	)		$	(87	)
Less: Income attributable to noncontrolling interest		(8	)			(32	)
Undistributed loss		(49	)			(119	)
Percentage allocated to ordinary shares		100		%		100		%
Undistributed loss allocated to ordinary shares		(49	)			(119	)
Loss available to ordinary shares	$	(49	)		$	(119	)
Denominator – Basic and Diluted
Weighted-average ordinary shares (in thousands)		113,459				113,389
Loss per Share (1)
Basic loss per Share	$	(0.43	)		$	(1.05	)
Diluted loss per Share	$	(0.43	)		$	(1.05	)

  (1 ) The basic and diluted earnings (loss) per share amounts were computed from exact, not rounded, income and share information

The computation of basic and diluted earnings per share for the periods indicated is as follows:

	ThreeMonths Ended September30,2012				NineMonths Ended September30,2012
Numerator – Basic and Diluted
Net Income (Loss)	$	(1	)		$	1,229
Less: Income attributable to noncontrolling interest		(2	)			(2	)
Less: Dividends declared		—				(32	)
Undistributed earnings (loss)		(3	)			1,195
Percentage allocated to ordinary shares		100		%		99.4		%
Undistributed earnings allocated to ordinary shares		(3	)			1,188
Add: Dividends declared allocated to common shares		—				32
Earnings available to ordinary shares	$	(3	)		$	1,220
Denominator – Basic
Weighted-average ordinary shares (in thousands)		122,352				94,193
Add: Effect of Dilutive Securities:
Restricted shares		—				66
Warrants		—				2,638
Options		—				6
Denominator – Dilutive		122,352				96,903
Earnings per Share(1)
Basic earnings per Share	$	(0.03	)		$	12.95
Diluted earnings per Share	$	(0.03	)		$	12.59

  (1 ) The basic and diluted earnings (loss) per share amounts were computed from exact, not rounded, income and share information

In computing diluted earnings (loss) per share under the two-class method, the Company considered potentially dilutive shares. At September30, 2013, 2,100,611 options with an average exercise price of $20.63, 357,564 Series A Warrants and 465,461Series B Warrants, with exercise prices of $60.01 and $66.23, respectively, and 304,770 restricted share units with an average price of $21.08 were not recognized in the diluted earnings per share calculation as they were anti-dilutive. At September30, 2012, 523,970 options with an average exercise price of $25.52, 364,819 Series A Warrants and 474,425 Series B Warrants, with exercise prices of $61.84 and $68.24, respectively, were not recognized in the three months ended diluted earnings per share calculation as they were anti-dilutive.

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Debt - Summary of Interest and Debt Expense (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2013		Sep. 30, 2012		Sep. 30, 2013		Sep. 30, 2012
Debt Disclosure [Abstract]
Interest expense on debt	$ 32		$ 15		$ 88		$ 29
Amortization of deferred debt issuance costs	1	[1]	2	[1]	5	[1]	8	[1]
Other			1		4		4
Capitalized interest	(1)				(3)		(1)
Interest and debt expense	$ 32		$ 18		$ 94		$ 40

[1] In connection with obtaining debt, the Company incurred debt issuance costs. Such costs are recorded in “Other long-term assets” on the unaudited Condensed Consolidated Balance Sheets,” and are being amortized through the maturity date.

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Mineral Leaseholds, Net - Summary of Mineral Leaseholds (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Property Plant And Equipment Useful Life And Values [Abstract]
Mineral leaseholds	$ 1,412	$ 1,502
Less accumulated depletion	(143)	(63)
Net	$ 1,269	$ 1,439

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Debt

9 Months Ended

Sep. 30, 2013

Debt

11. Debt

Short-term Debt

Short-term debt consisted of the following:

	Maturity Date		September30, 2013		December31, 2012
UBS Revolver		6/18/17	$	—	$	—
ABSA Revolver (1)		6/14/17		—		30
Total			$	—	$	30

  (1 ) Average effective interest rate of 8.5% during both 2013 and 2012.

UBS Revolver

On June18, 2012, in connection with the closing of the Transaction, the Company entered into a global senior secured asset-based syndicated revolving credit agreement with UBS AG (the “UBS Revolver”). The UBS Revolver provides the Company with a committed source of capital with a principal borrowing amount of up to $300 million, subject to a borrowing base. In connection with its entry into the Amended and Restated Credit Agreement on March19, 2013, the Company amended the UBS Revolver to allow for the increased size of the Term Loan over the Term Facility (see “Term Facility” and “Term Loan” below). At September30, 2013, the Company had no amounts drawn on the UBS Revolver, and its available borrowing base was $267 million.

ABSA Revolving Credit Facility

In connection with the Transaction, the Company entered into a R900 million (approximately $90 million as of September30, 2013) revolving credit facility with ABSA Bank Limited acting through its ABSA Capital Division (the “ABSA Revolver”). At December31, 2012, the Company had drawn down R250 million (approximately $30 million), which was repaid during the first quarter of 2013. At September30, 2013, the Company had no amounts drawn on the ABSA Revolver.

Long-Term Debt

Long-term debt consisted of the following:

	Original Principal		Maturity Date		September30, 2013			December31, 2012
Term Loan, net of unamortized discount of $11 million at September 30, 2013 (1)	$	1,500		3/19/2020	$	1,485		$	—
Notes	$	900		8/15/2020		900			900
Term Facility, net of unamortized discount of $6 million at December 30, 2012 (2)	$	700		2/8/2018		—			691
Co-generation Unit Financing Arrangement	$	16		2/1/2016		7			10
Lease financing						12			14
Total debt						2,404			1,615
Less: Long-term debt due in one year						(18	)		(10	)
Long-term debt					$	2,386		$	1,605

(1	)	Average effective interest rate of 5.0% during 2013.
(2	)	Average effective interest rate of 5.0% during both 2013 and 2012.

At September30, 2013, the scheduled maturities of the Company’s long-term debt were as follows:

	TotalDebt
2013	$	5
2014		18
2015		18
2016		15
2017		15
Thereafter		2,344
Total		2,415
Remaining accretion of discount associated with the Term Loan		(11	)
Total debt	$	2,404

Term Loan

On March19, 2013, Tronox Limited’s wholly-owned subsidiary, Tronox Pigments (Netherlands) B.V., Tronox Limited, and certain subsidiaries of Tronox Limited named as guarantors, entered into an Amended and Restated Credit and Guaranty Agreement with Goldman Sachs Bank USA, as Administrative Agent and Collateral Agent, and Goldman Sachs Bank USA, UBS Securities LLC, Credit Suisse Securities (USA) LLC and RBC Capital Markets, as Joint Lead Arrangers, Joint Bookrunners and Co-Syndication Agents. Pursuant to the Amended and Restated Credit Agreement, the Company obtained a $1.5 billion senior secured term loan (the “Term Loan”), which matures in March 2020. The terms of the Amended and Restated Credit Agreement are substantially similar to the Company’s prior Term Facility (defined below). The Term Loan was issued net of an original issue discount of $7 million, or 0.5% of the principal balance. During the three and nine months ended September 30, 2013, the Company made principal repayments of $4 million.

The Term loan bears interest at the option of Tronox at either i) 2.5% plus the base rate defined as the greater of the prime lending rate quoted in the print edition of The Wall Street Journal or the Federal Funds Effective rate in effect on such day plusone halfof 1%;provided, however, that the Base Rate is not less than 2%per annum or ii) 3.5% plus the greater of the 3 month LIBOR Eurodollar rate or 1%. 

Notes

On August20, 2012, Tronox Limited’s wholly-owned subsidiary, Tronox Finance LLC, issued $900 million aggregate principal amount of 6.375% senior notes due 2020 (the “Existing Notes”) at par value. The Existing Notes were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act.

During the second quarter, the Company filed a Registration Statement on Form S-4 for $900 million in aggregate principal amount of 6.375% senior notes due 2020 (the “New Notes”) in exchange for the Existing notes. The New Notes are substantially identical to the Existing Notes. On September 17, 2013, Tronox Financeissuedthe New Notes in exchange for the Existing Notes (together the “Notes”). As of September 20, 2013, there was $900 million in aggregate principal amount of New Notes outstanding and less than $1 million in aggregate amount of Existing Notes outstanding.

The Notes bear interest semiannually at a rate equal to 6.375%, and are fully and unconditionally guaranteed on a senior, unsecured basis by Tronox Limited and certain of its subsidiaries. The Notes are redeemable at any time at the Company’s discretion.

Term Facility

On February8, 2012, Tronox Incorporated’s wholly-owned subsidiary, Tronox Pigments (Netherlands) B.V., entered into a term loan facility with Goldman Sachs Bank USA comprised of a $550 million Senior Secured Term Loan (the “Senior Secured Term Loan”) and a $150 million Senior Secured Delayed Draw Term Loan (the “Senior Secured Delayed Draw” together, the “Term Facility”). The Term Facility was issued net of an original issue discount of $7 million, or 1% of the initial principal amount, which was being amortized over the life of the Term Facility. On June14, 2012, in connection with the closing of the Transaction, Tronox Pigments (Netherlands) B.V. drew down the $150 million Senior Secured Delayed Draw. During the nine months ended September 30, 2012, the Company made principal repayments of $2 million.

On February28, 2013, Tronox Pigments (Netherlands) B.V. repaid the outstanding principal balance of $149 million, plus interest, related to the $150 million Senior Secured Delayed Draw. In accordance with ASC 470, Debt (“ASC 470”), the Company accounted for such repayment as an extinguishment of debt. As such, the Company recognized a loss on the early extinguishment of debt of $4 million related to the allocated portion of the unamortized original issue discount and debt issuance costs, which is recorded in “Other income (expense)” on the unaudited Condensed Consolidated Statements of Operations.

The Company allocated these amounts between the $550 million Senior Secured Term Loan and the $150 million Senior Secured Delayed Draw as follows:

	Outstanding Balance		Percentageof Outstanding Balance			Allocationof Unamortized Costs		Loss Extinguishment of Debt
Senior Secured Term Loan	$	547		79	%	$	16	$	—
Senior Secured Delayed Draw		149		21	%		4		4
Total	$	696		100	%	$	20	$	4

In accordance with ASC 470, the outstanding principal balance of the Senior Secured Term Loan of $547 million, which became part of the Term Loan, was accounted for as a debt modification. As such, the unamortized original issue discount of $5 million and debt issuance costs of $11 million related to the Term Facility are being amortized over the life of the Term Loan.

Co-generation Unit­­­ Financing Arrangement

In March 2011, in order to finance its share of an asset purchased for the Tiwest Joint Venture, Tronox Incorporated incurred debt totaling $8million. In connection with the Transaction, the Company acquired the remaining 50% undivided interest in the co-generation plant from Exxaro, along with its debt of $6 million. Under the financing arrangement, monthly payments are required, and interest accrues on the outstanding balance at the rate of 6.5%per annum. The Company made principal repayments of $1 million during both the three months ended September 30, 2013 and 2012 and $2 million during both the nine months ended September 30, 2013 and 2012.

Lease Financing

In connection with the Transaction, the Company acquired capital lease obligations in South Africa, which are payable through 2032 at a weighted average interest rate of approximately 17%. At September30, 2013, such obligations had a net book value of assets recorded under capital leases aggregating $7 million. The Company made payments of less than $1 million for both the three months ended September 30, 2013 and 2012, and $2 million and less than $1 million for the nine months ended September 30, 2013 and 2012, respectively.

Fair Value

The Company’s debt is recorded at historical amounts. At September30, 2013, the fair value of the Term Loan was $1,508 million. At September30, 2013 and December31, 2012, the fair value of the Notes was$896 million and $910 million, respectively. At December31, 2012, the fair value of the Term Facility was $709 million. The Company determined the fair value of the Term Loan, the Notes and the Term Facility using Bloomberg market prices. The fair value hierarchy for the Term Loan and the Notes is a Level 1 input.

Debt Covenants

At September30, 2013, the Company had financial covenants in the UBS Revolver, the ABSA Revolver and the Term Loan; however, only the ABSA Revolver had a financial maintenance covenant.

The terms of the Amended and Restated Credit Agreement are substantially similar to the Company’s prior Credit and Guaranty Agreement with Goldman Sachs Bank USA, dated February8, 2012, except that the Amended and Restated Credit Agreement (i)eliminates financial maintenance covenants (ii)permits, subject to certain conditions, incurrence of additional senior secured debt up to a leverage ratio of 2:1, (iii)increases the Company’s ability to incur debt in connection with permitted acquisitions and its ability to incur unsecured debt, and (iv)allows for the payment of a $0.25 per share dividend each fiscal quarter. Otherwise, the terms of the Amended and Restated Credit Agreement provide for customary representations and warranties, affirmative and negative covenants and events of default.The terms of the covenants, subject to certain exceptions, restrict, among other things: (i)debt incurrence; (ii)lien incurrence; (iii)investments, dividends and distributions; (iv)disposition of assets and subsidiary interests; (v)acquisitions; (vi)sale and leaseback transactions; and (vii)transactions with affiliates and shareholders.

The Term Facility and the UBS Revolver are subject to an intercreditor agreement pursuant to which the lenders’ respective rights and interests in the security are set forth. The Company was in compliance with its financial covenants at September30, 2013.

The Company has pledged the majority of its U.S. assets and certain assets of its non-U.S. subsidiaries in support of its outstanding debt.

Interest and Debt Expense

Interest and debt expense consisted of the following:

	ThreeMonthsEnded September30,						NineMonthsEnded September30,
	2013			2012		2013				2012
Interest expense on debt	$	32		$	15	$		88		$	29
Amortization of deferred debt issuance costs (1)		1			2			5			8
Other		—			1			4			4
Capitalized interest		(1	)		—			(3	)		(1	)
Interest and debt expense	$	32		$	18	$		94		$	40

  (1 ) In connection with obtaining debt, the Company incurred debt issuance costs. Such costs are recorded in “Other long-term assets” on the unaudited Condensed Consolidated Balance Sheets,” and are being amortized through the maturity date.

Deferred debt issuance costsand the related amortization expense was as follows:

					Amortization Expense
	Original DeferredDebt Issuance Cost		Balance at September30, 2013		ThreeMonthsEndedSeptember30,				NineMonthsEndedSeptember30,
					2013		2012		2013		2012
Term Loan	$	29	$	27	$	1	$	—	$	2	$	—
Notes		18		16		—		—		1		—
Term Facility		17		10		—		1		1		3
Other		8		6		—		1		1		5
Total			$	59	$	1	$	2	$	5	$	8

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Share-Based Compensation - Activity for Company's Options (Detail) (USD $) In Millions, except Share data, unless otherwise specified	9 Months Ended
	Sep. 30, 2013		Sep. 30, 2012
Tronox Limited Management Equity Incentive Plan | Stock Options
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Number of options, Beginning balance	612,439
Number of Options issued	1,590,438
Number of Options, exercised	(50,000)
Number of Options, Options expired	(32,978)
Number of Shares, Awards forfeited	(19,288)
Number of Options, Ending Balance	2,100,611
Number of Shares, Outstanding awards expected to vest	1,872,810
Number of Options, Exercisable at end of period	172,277
Price, Beginning Balance	$ 24.81	[1]
Price, Options issued	$ 19.17	[1]
Price, Options exercised	$ 22.00	[1]
Price, Options expired	$ 25.65	[1]
Price, Options forfeitures	$ 20.44	[1]
Price, Ending Balance	$ 20.63	[1]
Price, Outstanding awards expected to vest	$ 20.24	[1]
Price, Exercisable at end of period	$ 25.09	[1]
Contractual life years, beginning balance		[1]
Contractual life years, options issued		[1]
Contractual life years, Options exercised		[1]
Contractual life years, Options expired		[1]
Contractual life years, options forfeited		[1]
Contractual life years, ending balance	9 years 2 months 23 days	[1]
Contractual life, Outstanding awards expected to vest	9 years 3 months 7 days	[1]
Contractual life years, Exercisable	8 years 7 months 13 days	[1]
Intrinsic value, beginning balance		[2]
Intrinsic value, Options issued		[2]
Intrinsic value, Options exercised		[2]
Intrinsic value, Options expired		[2]
Intrinsic Value, Ending Balance	9	[2]
Intrinsic Value ,Outstanding awards expected to vest	9	[2]
Tronox Incorporated Management Equity Incentive Plan
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Number of options, Beginning balance			345,000
Number of Options issued			172,330
Number of Options, Ending Balance
Price, Beginning Balance			$ 22.00	[3]
Price, Options issued			$ 29.69	[3]
Price, Ending Balance				[3]
Awards converted to Tronox Limited restricted shares in connection with the Transaction	517,330		(517,330)
Awards converted to Tronox Limited restricted shares in connection with the Transaction			$ 24.56	[3]
Tronox Incorporated Management Equity Incentive Plan | Stock Options
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Number of options, Beginning balance
Number of Options issued			158,960
Number of Shares, Awards forfeited			(152,320)
Number of Options, Ending Balance			523,970
Number of Shares, Outstanding awards expected to vest			488,791
Number of Options, Exercisable at end of period			7,440
Price, Beginning Balance				[1]
Price, Options issued			$ 25.62	[1]
Price, Options forfeitures			$ 22.38	[1]
Price, Ending Balance			$ 25.52	[1]
Price, Outstanding awards expected to vest			$ 25.59	[1]
Price, Exercisable at end of period			$ 24.60	[1]
Contractual life years, ending balance			9 years 5 months 27 days	[1]
Contractual life, Outstanding awards expected to vest			9 years 6 months	[1]
Contractual life years, Exercisable			9 years 3 months 7 days	[1]
Intrinsic Value, Ending Balance				[4]
Intrinsic Value ,Outstanding awards expected to vest				[4]
Intrinsic Value, Exercisable at end of period				[4]
Awards converted to Tronox Limited restricted shares in connection with the Transaction			517,330
Awards converted to Tronox Limited restricted shares in connection with the Transaction			$ 24.56	[1]

[1] Represents weighted average exercise price and weighted average remaining contractual life, as applicable.

[2] Reflects aggregate intrinsic value based on the difference between the market price of the Company’s shares at September 30, 2013 and the options’ exercise price.

[3] Represents weighted average exercise price.

[4] Reflects aggregate intrinsic value based on the difference between the market price of the Company’s shares at September 30, 2012 and the options’ exercise price.

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The Company - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2013 Operations Facility
Number of TiO2 operation facilities	3
Number of mining operations	3
Exxaro
Acquisition mineral sands operations	74.00%
Tiwest Joint Venture
Percentage of outstanding voting securities of Tronox Limited	50.00%

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Shareholders' Equity - Changes in Outstanding and Treasury Shares (Detail)	9 Months Ended
	Sep. 30, 2013 Class A common stock	Sep. 30, 2013 Class B common stock	Dec. 31, 2012 Class B common stock
Beginning balance, shares outstanding	62,103,989	51,154,280	51,154,280
Shares issued for share-based compensation	73,456
Shares issued for warrants exercised	81,052
Shares issued for options exercised	50,000
Ending balance, shares outstanding	62,308,497	51,154,280	51,154,280

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Mineral Leaseholds, Net - Additional Information (Detail) (Mineral leaseholds, USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Mineral leaseholds
Interest Cost Capitalized And Depreciation And Amortization Expenses For Property Plant And Equipment [Line Items]
Depletion expense related to mineral leasehold	$ 42	$ 19	$ 84	$ 24

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Debt (Tables)

9 Months Ended

Sep. 30, 2013

Short-Term Debt

Short-term debt consisted of the following:

	Maturity Date		September30, 2013		December31, 2012
UBS Revolver		6/18/17	$	—	$	—
ABSA Revolver (1)		6/14/17		—		30
Total			$	—	$	30

  (1 ) Average effective interest rate of 8.5% during both 2013 and 2012.

Long-Term Debt

Long-term debt consisted of the following:

	Original Principal		Maturity Date		September30, 2013			December31, 2012
Term Loan, net of unamortized discount of $11 million at September 30, 2013 (1)	$	1,500		3/19/2020	$	1,485		$	—
Notes	$	900		8/15/2020		900			900
Term Facility, net of unamortized discount of $6 million at December 30, 2012 (2)	$	700		2/8/2018		—			691
Co-generation Unit Financing Arrangement	$	16		2/1/2016		7			10
Lease financing						12			14
Total debt						2,404			1,615
Less: Long-term debt due in one year						(18	)		(10	)
Long-term debt					$	2,386		$	1,605

(1	)	Average effective interest rate of 5.0% during 2013.
(2	)	Average effective interest rate of 5.0% during both 2013 and 2012.

Scheduled Maturities of Company's Long-Term Debt

At September30, 2013, the scheduled maturities of the Company’s long-term debt were as follows:

	TotalDebt
2013	$	5
2014		18
2015		18
2016		15
2017		15
Thereafter		2,344
Total		2,415
Remaining accretion of discount associated with the Term Loan		(11	)
Total debt	$	2,404

Summary of Allocation of Senior Secured Loans

The Company allocated these amounts between the $550 million Senior Secured Term Loan and the $150 million Senior Secured Delayed Draw as follows:

	Outstanding Balance		Percentageof Outstanding Balance			Allocationof Unamortized Costs		Loss Extinguishment of Debt
Senior Secured Term Loan	$	547		79	%	$	16	$	—
Senior Secured Delayed Draw		149		21	%		4		4
Total	$	696		100	%	$	20	$	4

Summary of Interest and Debt Expense

Interest and debt expense consisted of the following:

	ThreeMonthsEnded September30,						NineMonthsEnded September30,
	2013			2012		2013				2012
Interest expense on debt	$	32		$	15	$		88		$	29
Amortization of deferred debt issuance costs (1)		1			2			5			8
Other		—			1			4			4
Capitalized interest		(1	)		—			(3	)		(1	)
Interest and debt expense	$	32		$	18	$		94		$	40

  (1 ) In connection with obtaining debt, the Company incurred debt issuance costs. Such costs are recorded in “Other long-term assets” on the unaudited Condensed Consolidated Balance Sheets,” and are being amortized through the maturity date.

Deferred Debt Issuance Costs and Related Amortization Expense

Deferred debt issuance costsand the related amortization expense was as follows:

					Amortization Expense
	Original DeferredDebt Issuance Cost		Balance at September30, 2013		ThreeMonthsEndedSeptember30,				NineMonthsEndedSeptember30,
					2013		2012		2013		2012
Term Loan	$	29	$	27	$	1	$	—	$	2	$	—
Notes		18		16		—		—		1		—
Term Facility		17		10		—		1		1		3
Other		8		6		—		1		1		5
Total			$	59	$	1	$	2	$	5	$	8

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Related Party Transactions

9 Months Ended

Sep. 30, 2013

Related Party Transactions

20. Related Party Transactions

At September30, 2013, Exxaro held approximately 44.4% of the voting securities of Tronox Limited. During the three and nine months ended September30, 2013, the Company purchased transition services from Exxaro, which amounted to $1 million and $5 million, respectively.

Prior to the Transaction Date, Tronox Incorporated conducted transactions with Exxaro Australia Sands Pty Ltd, Tronox Incorporated’s 50% partner in the Tiwest Joint Venture. Tronox Incorporated purchased, at open market prices, raw materials used in its production of TiO2, as well as Exxaro Australia Sands Pty Ltd’s share of TiO2 produced by the Tiwest Joint Venture. Tronox Incorporated also provided administrative services and product research and development activities, which were reimbursed by Exxaro. From January1, 2012 through the Transaction Date, the Company made payments of $173 million for purchases of raw material and received payments of $9 million for administrative services.

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Pension and Other Postretirement Healthcare Benefits

9 Months Ended

Sep. 30, 2013

Pension and Other Postretirement Healthcare Benefits

19. Pension and Other Postretirement Healthcare Benefits

The Company sponsors noncontributory defined benefit retirement plans (qualified and nonqualified plans) in the United States, a contributory defined benefit retirement plan in The Netherlands, a U.S.contributory postretirement healthcare plan and a South Africa postretirement healthcare plan.

The components of net periodic cost associated with the U.S.and foreign retirement plans recognized in the unaudited Condensed Consolidated Statements of Operations were as follows:

	RetirementPlans
	ThreeMonthsEndedSeptember30,							NineMonthsEndedSeptember30,
	2013			2012			2013				2012
Net periodic cost:
Service cost	$	1		$	1		$		4		$	2
Interest cost		5			5				15			16
Expected return on plan assets		(5	)		(5	)			(15	)		(15	)
Net amortization of actuarial loss		1			—				2			—
Total net periodic cost	$	2		$	1		$		6		$	3

The components of the Company’s net periodic cost for the postretirement healthcare plans recognized in the unaudited Condensed Consolidated Statements of Operations were less than $1 million for both the three months ended September 31, 2013 and 2012, and $1 million for both the nine months ended September30, 2013 and 2012.

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Guarantor Condensed Consolidated Financial Statements - Schedule of Guarantor Subsidiaries Condensed Consolidating Statements of Comprehensive Income (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net Income (Loss):
Net Income (Loss)	$ (41)	$ (1)	$ (87)	$ 1,229
Other Comprehensive Income (Loss):
Foreign currency translation adjustments	(5)	14	(206)	47
Amortization of actuarial losses, net of taxes	1		1
Other comprehensive loss	(4)	14	(205)	47
Deferred Tax
Total comprehensive income (loss)	(45)	13	(292)	1,276
Comprehensive income (loss) attributable to noncontrolling interest:
Net income	8	2	32	2
Foreign currency translation adjustments	(6)	3	(57)	13
Comprehensive income (loss) attributable to noncontrolling interest	2	5	(25)	15
Net income attributable to noncontrolling interest	8	2	32	2
Comprehensive income (loss) attributable to Tronox Limited	(47)	8	(267)	1,261
Eliminations
Net Income (Loss):
Net Income (Loss)	115	85	350	1,118
Other Comprehensive Income (Loss):
Foreign currency translation adjustments				19
Amortization of actuarial losses, net of taxes
Other comprehensive loss				19
Deferred Tax
Total comprehensive income (loss)	115	85	350	1,137
Comprehensive income (loss) attributable to noncontrolling interest:
Net income
Foreign currency translation adjustments
Comprehensive income (loss) attributable to noncontrolling interest
Net income attributable to noncontrolling interest
Comprehensive income (loss) attributable to Tronox Limited	115	85	350	1,137
Parent Company
Net Income (Loss):
Net Income (Loss)	(50)	(2)	(119)	50
Other Comprehensive Income (Loss):
Foreign currency translation adjustments
Amortization of actuarial losses, net of taxes
Other comprehensive loss
Deferred Tax
Total comprehensive income (loss)	(50)	(2)	(119)	50
Comprehensive income (loss) attributable to noncontrolling interest:
Net income
Foreign currency translation adjustments
Comprehensive income (loss) attributable to noncontrolling interest
Net income attributable to noncontrolling interest
Comprehensive income (loss) attributable to Tronox Limited	(50)	(2)	(119)	50
Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	(142)	(102)	(407)	62
Other Comprehensive Income (Loss):
Foreign currency translation adjustments				(2)
Amortization of actuarial losses, net of taxes	2		2	(17)
Other comprehensive loss	2		2	(22)
Deferred Tax				(3)
Total comprehensive income (loss)	(140)	(102)	(405)	40
Comprehensive income (loss) attributable to noncontrolling interest:
Net income	8	2	32	2
Foreign currency translation adjustments	(6)	3	(57)	13
Comprehensive income (loss) attributable to noncontrolling interest	2	5	(25)	15
Net income attributable to noncontrolling interest	8	2	32	2
Comprehensive income (loss) attributable to Tronox Limited	(142)	(107)	(380)	25
Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	36	18	89	(1)
Other Comprehensive Income (Loss):
Foreign currency translation adjustments	(5)	14	(206)	30
Amortization of actuarial losses, net of taxes	(1)		(1)	17
Other comprehensive loss	(6)	14	(207)	50
Deferred Tax				3
Total comprehensive income (loss)	30	32	(118)	49
Comprehensive income (loss) attributable to noncontrolling interest:
Net income
Foreign currency translation adjustments
Comprehensive income (loss) attributable to noncontrolling interest
Net income attributable to noncontrolling interest
Comprehensive income (loss) attributable to Tronox Limited	$ 30	$ 32	$ (118)	$ 49

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2013

Segment Reporting Information

Segment performance is evaluated based on segment operating profit (loss), which represents the results of segment operations before unallocated costs, such as general corporate expenses not identified to a specific segment, environmental provisions, net of reimbursements, related to sites no longer in operation, interest expense, other income (expense) and income tax expense or benefit.

	Mineral Sands		Pigment			Corporate AndOther			Eliminations			Total
Three Months Ended September30, 2013
Net Sales (1)	$	245	$	300		$	35		$	(89	)	$	491
Income (loss) from operations		41		(29	)		(20	)		17			9
Interest and debt expense													(32	)
Other income													(10	)
Loss before Income Taxes													(33	)
Depreciation, Depletion and Amortization	$	67	$	20		$	5		$	—		$	92
Capital Expenditures	$	10	$	14		$	1		$	—		$	25
Three Months Ended September30, 2012
Net Sales (1)	$	272	$	280		$	38		$	(103	)	$	487
Income (loss) from operations		32		(4	)		(26	)		(19	)		(17	)
Interest and debt expense													(18	)
Loss before Income Taxes												$	(35	)
Depreciation, Depletion and Amortization	$	47	$	20		$	4		$	—		$	71
Capital Expenditures	$	27	$	10		$	6		$	—		$	43
Nine Months Ended September30, 2013
Net Sales (1)	$	855	$	892		$	97		$	(358	)	$	1,486
Income (loss) from operations		205		(153	)		(55	)		2			(1	)
Interest and debt expense													(94	)
Other expense													18
Income before Income Taxes												$	(77	)
Depreciation, Depletion and Amortization	$	165	$	61		$	12		$	—		$	238
Capital Expenditures	$	59	$	39		$	6		$	—		$	104
Nine Months Ended September30, 2012
Net Sales (1)	$	444	$	990		$	97		$	(181	)	$	1,350
Income (loss) from operations		129		142			(130	)		(23	)		118
Interest and debt expense													(40	)
Other expense													(4	)
Gain on bargain purchase													1,055
Income before Income Taxes												$	1,129
Depreciation, Depletion and Amortization	$	63	$	50		$	11		$	—		$	124
Capital Expenditures	$	47	$	25		$	19		$	—		$	91

Segment Reporting Information of Revenue, Net Asset and Property, Plant and Equipment

  (1 ) Net sales by geographic region, principally based on country of production, were as follows:

	ThreeMonthsEndedSeptember30,				NineMonthsEndedSeptember30,
	2013		2012		2013		2012
U.S. operations	$	219	$	211	$	622	$	670
International operations:
South Africa		129		115		383		139
Australia		90		103		311		346
The Netherlands		53		58		170		195
Total	$	491	$	487	$	1,486	$	1,350

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

	September30, 2013		December31, 2012
U.S. operations	$	198	$	196
International operations:
South Africa		1,046		1,263
Australia		1,247		1,348
The Netherlands		54		55
Total	$	2,545	$	2,862

Schedule of Total Assets By Segment

Total assets by segment were as follows:

	September30, 2013			December31, 2012
Mineral Sands	$	2,948		$	3,164
Pigment		1,726			1,680
Corporate and Other		1,167			725
Eliminations		(56	)		(58	)
Total	$	5,785		$	5,511

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Property, Plant and Equipment, Net (Tables)

9 Months Ended

Sep. 30, 2013

Net Property, Plant and Equipment

Property, plant and equipment, net of accumulated depreciation and amortization, consisted of the following:

	September30, 2013			December31, 2012
Land and land improvements	$	80		$	80
Buildings		188			194
Machinery and equipment		1,143			1,158
Construction-in-progress		128			153
Furniture and fixtures		23			7
Other		9			6
Gross		1,571			1,598
Less accumulated depreciation and amortization		(295	)		(175	)
Net	$	1,276		$	1,423

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Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value of Derivative Instruments

The fair values of derivative instruments at September 30, 2013 were as follows:

		Fair Value
Currency forward contracts	Other current assets	$	1

Schedule of Gains (Losses) Recorded in Other Income (Expense)

Gains (losses) recorded in “Other income (expense)” on the unaudited Condensed Consolidated Statements of Operations consisted of the following:

	ThreeMonthsEndedSeptember30,				NineMonthsEndedSeptember30,
	2013		2012		2013			2012
Currency forward contracts	$	1	$	—		$	1		$	—

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Basis of Presentation - Additional Information (Detail) (Tiwest Joint Venture)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Dec. 31, 2012
Tiwest Joint Venture
Schedule Of Equity Method Investments [Line Items]
Investment in joint venture operation	100.00%		100.00%	100.00%
Percentage of revenue and expense of joint venture incorporation	100.00%	100.00%	100.00%

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Recent Accounting Pronouncements (Policies)

9 Months Ended

Sep. 30, 2013

Accounting for Cumulative Translation Adjustment

In March 2013, the Financial Accounting Standards Board (the “FASB”) issued accounting standards update (“ASU”) 2013-5, Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (“ASU 2013-5”), which addresses the treatment of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets within a foreign entity. ASU 2013-5 is effective prospectively for periods beginning after December15, 2013; however early adoption is permitted. The adoption of this guidance is not anticipated to have a significant impact on the consolidated financial statements.

Presentation of Comprehensive Income

During 2013, the Company adopted ASU 2013-2,Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires the presentation of the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income, if the item is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. The adoption of this guidance did not have a significant impact on the consolidated financial statements.

Offsetting Assets And Liabilities Related to Derivatives

During 2013, the Company adopted ASU 2013-01,Clarifyingthe Scope of Disclosures about Offsetting Assets and Liabilities, to clarify previously issued guidance related to derivatives that are either offset or subject to an enforceable master netting arrangement or similar agreement. The adoption of this guidance did not have a significant impact on the consolidated financial statements.

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Debt - Long-Term Debt (Detail) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2013		Dec. 31, 2012
Long Term Debt Current And Noncurrent [Line Items]
Total debt	$ 2,404		$ 1,615
Less: Long-term debt due in one year	(18)		(10)
Long-term debt	2,386		1,605
Term Loan
Long Term Debt Current And Noncurrent [Line Items]
Original Principal	1,500	[1]
Maturity Date	Mar. 19, 2020	[1]
Total debt	1,485	[1]
Notes
Long Term Debt Current And Noncurrent [Line Items]
Original Principal	900
Maturity Date	Aug. 15, 2020
Total debt	900		900
Term Facility
Long Term Debt Current And Noncurrent [Line Items]
Original Principal	700	[2]
Maturity Date	Feb. 08, 2018	[2]
Total debt			691	[2]
Co-generation Unit Financing Arrangement
Long Term Debt Current And Noncurrent [Line Items]
Original Principal	16
Maturity Date	Feb. 01, 2016
Total debt	7		10
Lease Financing
Long Term Debt Current And Noncurrent [Line Items]
Total debt	$ 12		$ 14

[1] Average effective interest rate of 5.0% during 2013.

[2] Average effective interest rate of 5.0% during both 2013 and 2012.

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Debt - Co-generation Unit Financing Arrangement - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended	3 Months Ended		9 Months Ended				9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013 Co-generation Unit Financing Arrangement	Sep. 30, 2012 Co-generation Unit Financing Arrangement	Sep. 30, 2013 Co-generation Unit Financing Arrangement	Sep. 30, 2012 Co-generation Unit Financing Arrangement	Sep. 30, 2013 Tiwest Joint Venture	Dec. 31, 2012 Tiwest Joint Venture	Sep. 30, 2013 Exxaro
Line Of Credit Facility Covenant Compliance [Line Items]
Additional debt amount							$ 8		$ 6
Investment in joint venture operation							100.00%	100.00%	50.00%
Interest accrual rate	6.50%	6.50%
Principal repayment	$ 4	$ 4	$ 1	$ 1	$ 2	$ 2

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Debt - Short-Term Debt (Parenthetical) (Detail) (ABSA Revolver)	Sep. 30, 2013	Dec. 31, 2012
ABSA Revolver
Standby Letters Of Credit [Line Items]
Average effective interest	8.50%	8.50%

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Earnings (Loss) Per Share (Tables)

9 Months Ended

Sep. 30, 2013

Computation of Basic and Diluted Earnings Per Share From Continuing Operations

The computation of basic and diluted loss per share for the periods indicated is as follows:

	ThreeMonths Ended September30,2013				NineMonths Ended September30,2013
Numerator – Basic and Diluted
Net Loss	$	(41	)		$	(87	)
Less: Income attributable to noncontrolling interest		(8	)			(32	)
Undistributed loss		(49	)			(119	)
Percentage allocated to ordinary shares		100		%		100		%
Undistributed loss allocated to ordinary shares		(49	)			(119	)
Loss available to ordinary shares	$	(49	)		$	(119	)
Denominator – Basic and Diluted
Weighted-average ordinary shares (in thousands)		113,459				113,389
Loss per Share (1)
Basic loss per Share	$	(0.43	)		$	(1.05	)
Diluted loss per Share	$	(0.43	)		$	(1.05	)

  (1 ) The basic and diluted earnings (loss) per share amounts were computed from exact, not rounded, income and share information

The computation of basic and diluted earnings per share for the periods indicated is as follows:

	ThreeMonths Ended September30,2012				NineMonths Ended September30,2012
Numerator – Basic and Diluted
Net Income (Loss)	$	(1	)		$	1,229
Less: Income attributable to noncontrolling interest		(2	)			(2	)
Less: Dividends declared		—				(32	)
Undistributed earnings (loss)		(3	)			1,195
Percentage allocated to ordinary shares		100		%		99.4		%
Undistributed earnings allocated to ordinary shares		(3	)			1,188
Add: Dividends declared allocated to common shares		—				32
Earnings available to ordinary shares	$	(3	)		$	1,220
Denominator – Basic
Weighted-average ordinary shares (in thousands)		122,352				94,193
Add: Effect of Dilutive Securities:
Restricted shares		—				66
Warrants		—				2,638
Options		—				6
Denominator – Dilutive		122,352				96,903
Earnings per Share(1)
Basic earnings per Share	$	(0.03	)		$	12.95
Diluted earnings per Share	$	(0.03	)		$	12.59

  (1 ) The basic and diluted earnings (loss) per share amounts were computed from exact, not rounded, income and share information

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Debt - Additional Information (Detail) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended					9 Months Ended
	Sep. 30, 2013 USD ($)	Sep. 30, 2012 USD ($)	Sep. 30, 2013 USD ($)	Sep. 30, 2012 USD ($)	Sep. 20, 2013 USD ($)	Jun. 30, 2013 USD ($)	Aug. 20, 2012 USD ($)	Sep. 30, 2013 Financial Covenant	Sep. 30, 2013 Debt Covenants USD ($)	Sep. 30, 2013 Significant Other Observable Inputs (Level 2) Term Loan USD ($)	Sep. 30, 2013 Significant Other Observable Inputs (Level 2) Notes USD ($)	Dec. 31, 2012 Significant Other Observable Inputs (Level 2) Notes USD ($)	Dec. 31, 2012 Significant Other Observable Inputs (Level 2) Term Facility USD ($)	Sep. 30, 2013 UBS Revolver USD ($)	Sep. 30, 2013 UBS Revolver Maximum USD ($)	Sep. 30, 2013 ABSA Revolver USD ($)	Sep. 30, 2013 ABSA Revolver ZAR	Dec. 31, 2012 ABSA Revolver USD ($)	Dec. 31, 2012 ABSA Revolver ZAR
Line Of Credit Facility Covenant Compliance [Line Items]
Principal borrowing amount															$ 300	$ 90	900
Borrowing base														267
Repayment																		30	250
Principal borrowing amount					900	900	900
Senior notes percentage due 2020			6.375%
Weighted average interest rate	17.00%		17.00%
Net assets recorded under capital leases	7		7
Payments on capital leases	1	1	2	1
Fair value of term loan										1,508	896	910	709
Leverage ratio								2
Payment of dividend									$ 0.25
Aggregate amount of existing notes outstanding					$ 1
Senior notes bear interest rate sold at par value	6.375%		6.375%

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Segment Information - Additional Information (Detail)	Sep. 30, 2013
Exxaro
Segment Reporting Information [Line Items]
Acquisition mineral sands operations	74.00%
Tiwest Joint Venture
Segment Reporting Information [Line Items]
Percentage of outstanding voting securities of Tronox Limited	50.00%

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Segment Information - Segment Reporting Information (Detail) (USD $) In Millions, unless otherwise specified	1 Months Ended	3 Months Ended				9 Months Ended
	Jun. 15, 2012	Sep. 30, 2013		Sep. 30, 2012		Sep. 30, 2013		Sep. 30, 2012
Segment Reporting Information [Line Items]
Net Sales		$ 491	[1]	$ 487	[1]	$ 1,486	[1]	$ 1,350	[1]
Income (loss) from operations		9		(17)		(1)		118
Interest and debt expense		(32)		(18)		(94)		(40)
Other income (expense)		(10)				18		(4)
Income (Loss) before Income Taxes		(33)		(35)		(77)		1,129
Depreciation, depletion and amortization		92		71		238		124
Capital Expenditures		25		43		104		91
Gain on bargain purchase	205							1,055
Minerals Sands
Segment Reporting Information [Line Items]
Net Sales		245	[1]	272	[1]	855	[1]	444	[1]
Income (loss) from operations		41		32		205		129
Depreciation, depletion and amortization		67		47		165		63
Capital Expenditures		10		27		59		47
Pigment
Segment Reporting Information [Line Items]
Net Sales		300	[1]	280	[1]	892	[1]	990	[1]
Income (loss) from operations		(29)		(4)		(153)		142
Depreciation, depletion and amortization		20		20		61		50
Capital Expenditures		14		10		39		25
Corporate and Other
Segment Reporting Information [Line Items]
Net Sales		35	[1]	38	[1]	97	[1]	97	[1]
Income (loss) from operations		(20)		(26)		(55)		(130)
Depreciation, depletion and amortization		5		4		12		11
Capital Expenditures		1		6		6		19
Eliminations
Segment Reporting Information [Line Items]
Net Sales		(89)	[1]	(103)	[1]	(358)	[1]	(181)	[1]
Income (loss) from operations		$ 17		$ (19)		$ 2		$ (23)

[1] Net sales by geographic region, principally based on country of production

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Segment Information - Summary of Net Assets by Segments (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Revenues From External Customers And Long Lived Assets [Line Items]
Net Assets	$ 5,785	$ 5,511
Mineral Sands
Revenues From External Customers And Long Lived Assets [Line Items]
Net Assets	2,948	3,164
Pigment
Revenues From External Customers And Long Lived Assets [Line Items]
Net Assets	1,726	1,680
Corporate and Other
Revenues From External Customers And Long Lived Assets [Line Items]
Net Assets	1,167	725
Eliminations
Revenues From External Customers And Long Lived Assets [Line Items]
Net Assets	$ (56)	$ (58)

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Share-based Compensation

9 Months Ended

Sep. 30, 2013

Share-based Compensation

18. Share-based Compensation

Compensation expense related to restricted share awards was $3 million and $2 million for the three months ended September30, 2013 and 2012, respectively, and $9 million and $28 million for the nine months ended September30, 2013 and 2012, respectively. Compensation expense related to the Company’s nonqualified option awards was $1 million and less than $1 million for the three months ended September30, 2013 and 2012, respectively, and $4 million and $1 million for the nine months ended September30, 2013 and 2012, respectively.

At September30, 2013, unrecognized compensation expense related to the Company’s restricted shares and options, adjusted for estimated forfeitures, was approximately $45 million, with such unrecognized compensation expense expected to be recognized over a weighted-average period of approximately 2 years. The ultimate amount of such expense is dependent upon the actual number of restricted shares and options that vest. The Company periodically assesses the forfeiture rates used for such estimates. A change in estimated forfeiture rates would cause the aggregate amount of compensation expense recognized in future periods to differ from the estimated unrecognized compensation expense above.

Tronox Limited Management Equity Incentive Plan

On the Transaction Date, Tronox Limited adopted the Tronox Limited Management Equity Incentive Plan (the “Tronox Limited MEIP”), which permits the grant of awards that constitute incentive options, nonqualified options, share appreciation rights, restricted shares, restricted share units, performance awards and other share-based awards, cash payments and other forms such as the compensation committee of the Board in its discretion deems appropriate, including any combination of the above. Subject to further adjustment, the maximum number of shares which may be the subject of awards (inclusive of incentive options) is 12,781,225 ClassA Shares.

Restricted Shares

During the nine months ended September30, 2013, the Company granted restricted share awards to employees. All restricted share awards vest pursuant to both time requirements and performance requirements. The time provisions are graded vesting, while the performance provisions are cliff vesting and have a variable payout. During the nine months ended September30, 2013, as part of the annual directors’ compensation program, the Company granted restricted share awards with graded vesting to members of the Board. In accordance with ASC 718, Compensation – Share-Based Compensation (“ASC 718”), the restricted share awards issued during 2013 are classified as equity awards, and are accounted for using the fair value established at the grant date.

Restricted share activity for the nine months ended September30, 2013 and 2012 was as follows:

	Numberof Shares				Fair Value(1)
Balance at December31, 2012		761,065		$		20.62
Awards granted		820,027				21.14
Awards earned		(71,981	)			24.17
Awards forfeited		(16,338	)			23.83
Balance at September30, 2013		1,492,773		$		20.70
Outstanding awards expected to vest		1,467,461		$		20.67

	Numberof Shares				Fair Value(1)
Balance at December31, 2011		—		$		—
Awards converted from Tronox Incorporated to Tronox Limited in connection with the Transaction		420,765				16.99
Awards granted		184,571				27.11
Awards earned		(7,550	)			25.90
Awards forfeited		(7,985	)			29.29
Balance at September30, 2012		589,801		$		19.87
Outstanding awards expected to vest		582,887		$		19.78

  (1 ) Represents the weighted-average grant-date fair value

Options

During the nine months ended September30, 2013, the Company granted options to employees to purchase ClassA Shares, which have graded vesting provisions over a three year period. Options activity was as follows:

	Numberof Options			Price(1)		Contractual Life Years(1)		Intrinsic Value(2)
Balance at December31, 2012		612,439		$	24.81
Options issued		1,590,438			19.17
Options exercised		(50,000	)		22.00
Options expired		(32,978	)		25.65
Options forfeited		(19,288	)		20.44
Outstanding at September30, 2013		2,100,611		$	20.63		9.23	$	9
Outstanding and expected to vest at September30, 2013		1,872,810		$	20.24		9.27	$	9
Exercisable at September30, 2013		172,277		$	25.09		8.62	$	—

(1	)	Represents weighted average exercise price and weighted average remaining contractual life, as applicable.
(2	)	Reflects aggregate intrinsic value based on the difference between the market price of the Company’s shares at September30, 2013 and the options’ exercise price.

Valuation and Cost Attribution Methods.Fair value is determined on the date of grant using the Black-Scholes option-pricing model, and is recognized in earnings on a straight-line basis over the employee service period of three years necessary to earn the awards, which is the vesting period.

The Company utilized the Black-Scholes option-pricing model using the following assumptions:

	February25, 2013			March11, 2013			September 3, 2013
Number of options granted		1,544,872			8,238			37,328
Fair market value and exercise price (1)	$	19.09		$	21.49		$	21.94
Risk-free interest rate (2)		1.04	%		1.19	%		2.10	%
Expected dividend yield		5.24	%		4.65	%		4.56	%
Expected volatility		56	%		56	%		56	%
Maturity (years)		10			10			10
Expected term (years)		6			6			6
Per-unit fair value of options granted	$	6.28		$	7.48		$	7.92

(1	)	The adjusted closing price of ClassA Shares, New York Stock Exchange symbol TROX, on the grant date.
(2	)	The risk-free interest rate was based on U.S. Treasury Strips available with maturity period consistent with expected life assumption.

During the nine months ended September30, 2012, the Company granted options to employees to purchase ClassA Shares, which have graded vesting provisions over a three year period. Options activity was as follows:

	Numberof Options			Price(1)		Contractual Life Years (1)		Intrinsic Value(2)
Balance at December31, 2011		—		$	—
Options converted to Tronox Limited in connection with the Transaction		517,330			24.56
Options issued		158,960			25.62
Options forfeited		(152,320	)		22.38
Outstanding at September30, 2012		523,970		$	25.52		9.49	$	—
Outstanding and expected to vest at September30, 2012		488,791		$	25.59		9.50	$	—
Exercisable at September30, 2012		7,440		$	24.60		9.27	$	—

(1	)	Represents weighted average exercise price and weighted average remaining contractual life, as applicable.
(2	)	Reflects aggregate intrinsic value based on the difference between the market price of the Company’s shares at September30, 2012 and the options’ exercise price.

Valuation and Cost Attribution Methods.Options’ fair value was determined on the date of grant using the Black-Scholes option-pricing model and was recognized in earnings on a straight-line basis over the employee service period of three years necessary to earn the awards, which is the vesting period.

The Company utilized the Black-Scholes option-pricing model for the options granted and used the following assumptions:

	June26,2012			July31,2012				August31,2012
Number of options granted		135,895			15,808				7,257
Fair market value and exercise price (1)	$	25.90		$	23.17		$		25.79
Risk-free interest rate (2)		0.97	%		0.83	%			0.85	%
Expected dividend yield		3.86	%		4.32	%			3.88	%
Expected volatility		55	%		56	%			56	%
Maturity (years)		10			10				10
Expected term (years)		6			6				6
Per-unit fair value of options granted	$	9.43		$	8.21		$		9.51

(1	)	The adjusted closing price of ClassA Shares, New York Stock Exchange symbol TROX, on the grant date.
(2	)	The risk-free interest rate was based on U.S. Treasury Strips available with maturity period consistent with expected life assumption.

T-Bucks Employee Participation Plan (“T-Bucks EPP”)

During 2012, the Company established the T-Bucks EPP for the benefit of certain qualifying employees (the “Participants”) of Tronox subsidiaries in South Africa (the “Employer Companies”). In accordance with the terms of the Trust Deed of the T-Bucks Trust (the “T-Bucks Trust Deed”), the Employer Companies funded the T-Bucks Trust (the “Trust”) in the amount of R124 million (approximately $15 million), which represents a capital contribution equal to R75,000 for each Participant. The funded amount was used to acquire 548,234 ClassA Shares.

On September3, 2012, the Participants were awarded restricted share units in the Trust which entitles them to receive shares of Tronox Limited upon completion of the vesting period on May31, 2017. The Participants are also entitled to receive dividends on the Tronox shares during the vesting period. Forfeited shares are retained by the Trust and are allocated to future participants in accordance with the Trust Deed. Under certain conditions, as outlined in the Trust Deed, Participants may receive share units awarded before May31, 2017. The fair value of the awards is the fair value of the shares determined at the Grant Date. Compensation costs are recognizedover the vesting period using the straight-line method. In accordance with ASC 718, the T-Bucks EPP is classified as an equity-settled shared-based payment plan.

At September30, 2013 and December31, 2012, there were 548,234 shares in the trust with a fair value of $25.79, which represents the fair value on the date of purchase by the trust. Compensation expense during the three and nine months ended September30, 2013 was less than $1 million and $2 million, respectively.

Long-Term Incentive Plan

In connection with the Transaction, the Company assumed a long-term incentive plan (the “LTIP”) for the benefit of certain qualifying employees of Tronox subsidiaries in South Africa and Australia. The LTIP is classified as a cash-settled compensation plan, and is remeasured to fair value at each reporting date. At September30, 2013, the LTlP plan liability was approximately $3 million, which was recorded in “Other long-term liabilities” on the unaudited Condensed Consolidated Balance Sheets. Compensation expense was less than $1 million for both the three months ended September 30, 2013 and 2012 and $1 million and less than $1 million for both the nine months ended September 30, 2013 and 2012, respectively.

Tronox Incorporated Management Equity Incentive Plan

In connection with its emergence from bankruptcy, Tronox Incorporated adopted the Tronox Incorporated management equity incentive plan (the “Tronox Incorporated MEIP”), which permitted the grant of awards that constitute incentive options, nonqualified options, share appreciation rights, restricted share, restricted share units, performance awards and other share-based awards, cash payments and other forms such as the compensation committee of the Tronox Incorporated Board of Directors in its discretion deemed appropriate, including any combination of the above.

On the Transaction Date, 420,765 restricted shares of Tronox Incorporated vested in connection with the Transaction. The remaining restricted shares of Tronox Incorporated were converted to Tronox Limited restricted shares. Additionally, on the Transaction Date, 517,330Tronox Incorporated options were converted to Tronox Limited options.

Restricted Shares

During the nine months ended September30, 2012, Tronox Incorporated granted restricted shares to its employees, which had graded vesting provisions. Tronox Incorporated was withholding the highest combined maximum rate imposed under all applicable federal, state, local and foreign tax laws on behalf of the employees that received these awards. In accordance with ASC 718,such restricted share awards were classified as liability awards and were remeasured to fair value at each reporting date.

Restricted share activity with employees and directors was as follows:

	Number of Shares				Fair Value(1)
Balance at December31, 2011		1,177,995		$		21.48
Awards granted		52,915				24.36
Awards earned		(810,145	)			32.41
Awards converted to Tronox Limited restricted shares in connection with the Transaction		(420,765	)			16.99
Balance at September30, 2012		—		$		—

  (1 ) Represents weighted average fair value. Liability awards are remeasured to fair value at each reporting date and upon vesting, while equity awards are presented at grant date fair value.

Options

Tronox Incorporated options activity was as follows:

	Numberof Options			Price(1)
Balance at December31, 2011		345,000		$	22.00
Options issued		172,330			29.69
Options converted to Tronox Limited in connection with the Transaction		(517,330	)		24.56
Outstanding at September30, 2012		—		$	—

  (1 ) Represents weighted average exercise price.

Valuation and Cost Attribution Methods.Fair value is determined on the date of grant using the Black-Scholes option-pricing model, and is recognized in earnings on a straight-line basis over the employee service period of three years necessary to earn the awards, which is the vesting period.

Tronox Incorporated ran the Black-Scholes option-pricing model using the following assumptions:

	January2, 2012			June6, 2012
Number of options granted		22,330			150,000
Fair market value and exercise price (1)	$	24.60		$	30.45
Risk-free interest rate (2)		1.97	%		0.94	%
Expected dividend yield		0.0	%		0.0	%
Expected volatility		49	%		55	%
Expected term (years)		10			10
Per-unit fair value of options granted	$	14.78		$	15.64

(1	)	The adjusted closing price of ClassA Shares, New York Stock Exchange symbol TROX, on the grant date.
(2	)	The risk-free interest rate was based on U.S. Treasury Strips available with maturity period consistent with expected life assumption.

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Condensed Consolidated Statements Of Cash Flows (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash Flows from Operating Activities
Net Income (Loss)	$ (87)	$ 1,229
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	238	124
Deferred income taxes	14	(105)
Share-based compensation expense	16	29
Amortization of debt issuance costs and debt discounts	7	7
Pension and postretirement healthcare benefit expense, net	7	4
Gain on bargain purchase		(1,055)
Other noncash items affecting net income (loss)	(5)	131
Changes in assets and liabilities (net of effects of acquisition):
(Increase) decrease in accounts receivable		117
(Increase) decrease in inventories	106	(217)
(Increase) decrease in prepaid and other assets	(7)	7
Increase (decrease) in accounts payable and accrued liabilities	(42)	(140)
Increase (decrease) in income taxes payable	(23)	(24)
Other, net	(14)	(32)
Cash provided by operating activities	210	75
Cash Flows from Investing Activities
Capital expenditures	(104)	(91)
Cash received in acquisition of minerals sands business, net of cash paid		114
Cash (used in) provided by investing activities	(104)	23
Cash Flows from Financing Activities
Repayments of debt	(185)	(583)
Proceeds from borrowings	945	1,690
Debt issuance costs	(29)	(20)
Dividends paid	(86)	(32)
Merger consideration		(193)
Class A ordinary share repurchases, including commissions paid		(326)
Shares purchased for the Employee Participation Program		(15)
Proceeds from conversion of warrants	1	1
Cash provided by financing activities	646	522
Effects of Exchange Rate Changes on Cash and Cash Equivalents	(11)
Net Increase in Cash and Cash Equivalents	741	620
Cash and Cash Equivalents at Beginning of Period	716	154
Cash and Cash Equivalents at End of Period	$ 1,457	$ 774

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The Company

9 Months Ended

Sep. 30, 2013

The Company

1. The Company

Tronox Limited, a public limited company registered under the laws of the State of Western Australia, Australia, and its subsidiaries (collectively referred to as “Tronox” or the “Company”) is a global leader in the production and marketing of high grade titanium feedstock and titanium dioxide pigment (“TiO2”). The Company’s world-class, high performance TiO2 products are critical components of everyday applications such as paint and other coatings, plastics, paper and other applications. The Company’s mineral sands business consists primarily of three product streams—titanium feedstock, zircon and pig iron. Titanium feedstock is primarily used to manufacture TiO2. Zircon, a hard, glossy mineral, is used for the manufacture of ceramics, refractories, TV screen glass and a range of other industrial and chemical products. Pig iron is a metal material used in the steel and metal casting industries to create wrought iron, cast iron and steel. Tronox operates three TiO2pigment production facilities at the following locations: Hamilton, Mississippi; Botlek, The Netherlands; and Kwinana, Western Australia, and operates three separate mining and beneficiation operations: KwaZulu-Natal (“KZN”) Sands and Namakwa Sands located in South Africa, and Cooljarloo Sands located in Western Australia.

Tronox Limited was formed on September21, 2011 for the purpose of the Transaction (as defined below). Prior to the completion of the Transaction, Tronox Limited was wholly-owned by Tronox Incorporated, and had no operating assets or operations. On September25, 2011, Tronox Incorporated, a Delaware corporation formed on May17, 2005 (“Tronox Incorporated”), entered into a definitive agreement (as amended, the “Transaction Agreement”) with Exxaro Resources Limited (“Exxaro”) and certain of its affiliated companies, to acquire 74% of Exxaro’s mineral sands operations, along with its 50% share of the Tiwest Joint Venture (the “Transaction”). On June15, 2012, the date of the Transaction (the “Transaction Date”), the existing business of Tronox Incorporated was combined with the mineral sands business in an integrated series of transactions whereby Tronox Limited became the parent company.

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Acquisition of the Mineral Sands Business

9 Months Ended

Sep. 30, 2013

Acquisition of the Mineral Sands Business

4. Acquisition of the Mineral Sands Business

On September25, 2011, Tronox Incorporated entered into the Transaction Agreement with Exxaro to acquire 74% of its South African mineral sands operations, including its Namakwa Sands and KZN Sands mines, separation facilities and slag furnaces, along with its 50% share of the Tiwest Joint Venture. On the Transaction Date, the existing business of Tronox Incorporated was combined with the mineral sands business under Tronox Limited. The Transaction was completed in two principal steps. First, Tronox Incorporated became a subsidiary of Tronox Limited, with Tronox Incorporated shareholders receiving one ClassA ordinary share (“Class A Share”) and $12.50 in cash (“Merger Consideration”) for each Tronox Incorporated common share. Second, Tronox Limited issued 9,950,856 Class B ordinary shares (“Class B Shares”) to Exxaro and one of its subsidiaries in consideration for the mineral sands business.

Under the terms of the Transaction Agreement, Exxaro agreed that for a three-year period after the completion of the Transaction, it would not engage in any transaction or other action, that would result in its beneficial ownership of the voting shares of Tronox Limited to exceed 45% of the total issued shares of Tronox Limited. In addition, the agreement prohibits Exxaro from selling any shares in the same three-year period. At September30, 2013, Exxaro held approximately 44.4% of the voting securities of Tronox Limited.

In connection with the Transaction, Exxaro and its subsidiaries retained a 26% ownership interest in each of Tronox KZN Sands Pty Ltd and Tronox Mineral Sands Pty Ltd in order to comply with the ownership requirements of the Black Economic Empowerment legislation in South Africa. Exxaro is entitled to exchange this interest for approximately 3.2% in additional Class B Shares under certain circumstances (i.e., the earlier of the termination of the Empowerment Period or the tenth anniversary of completion of the Transaction). The Company accounts for such ownership as “Noncontrolling Interest” on the unaudited condensed consolidated financial statements.

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Debt - Summary of Allocation of Senior Secured Delayed Draw Term Loan (Detail) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2013
Proforma Debt Instrument [Line Items]
Outstanding Balance	$ 696
Percentage of Outstanding Balance	100.00%
Allocation of Unamortized Costs	20
Loss on extinguishment of debt	4
Senior Secured Term Loan
Proforma Debt Instrument [Line Items]
Outstanding Balance	547
Percentage of Outstanding Balance	79.00%
Allocation of Unamortized Costs	16
Loss on extinguishment of debt
Senior Secured Delayed Draw
Proforma Debt Instrument [Line Items]
Outstanding Balance	149
Percentage of Outstanding Balance	21.00%
Allocation of Unamortized Costs	4
Loss on extinguishment of debt	$ 4

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Basis of Presentation

9 Months Ended

Sep. 30, 2013

Basis of Presentation

2. Basis of Presentation

The accompanying condensed consolidated financial statements are unaudited, and have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements, and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December31, 2012. The December31, 2012 balance sheet was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP for complete financial statements.

The unaudited condensed consolidated balance sheets as of September30, 2013 and December31, 2012 relate to Tronox Limited. The unaudited condensed consolidated statements of operations and cash flows for the three and nine months ended September30, 2013 and three months ended September 30, 2012 reflect the consolidated operating results of Tronox Limited. The unaudited condensed consolidated statements of operations and cash flows for the nine months ended September30, 2012, reflect the consolidated operating results of Tronox Incorporated prior to June15, 2012, and, from June15, 2012 through September30, 2012, reflect the consolidated operating results of Tronox Limited.

The Company accounted for the Transaction under Accounting Standards Codification (“ASC”) 805,Business Combinations (“ASC 805”). Under the acquisition method of accounting, each tangible and separately identifiable intangible asset acquired and liability assumed was recorded based on its preliminary estimated fair value on the Transaction Date. The excess of the fair value of the net assets acquired over the value of consideration was recorded as an initial bargain purchase gain. Subsequent to the Transaction, the Company made adjustments to its initial valuation. Such adjustments were recorded on the Transaction Date, which has resulted in revised unaudited condensed consolidated financial statements for the three and nine months ended September30, 2012. The measurement period ended in June 2013.

Prior to the Transaction Date, Tronox Incorporated operated the Tiwest Joint Venture with Exxaro Australia Sands Pty Ltd. Tronox Incorporated accounted for its share of the Tiwest Joint Venture’s assets that were jointly controlled and its share of liabilities for which it was jointly responsible on a proportionate gross basis in its unaudited Condensed Consolidated Balance Sheet. Additionally, Tronox Incorporated accounted for the revenues generated from its share of the products sold and its share of the expenses of the joint venture on a gross basis in its unaudited Condensed Consolidated Statements of Operations. As of the Transaction Date, the Company owns 100% of the Tiwest Joint Venture operations. As such, the unaudited Condensed Consolidated Balance Sheets at September30, 2013 and December31, 2012 include 100% of the Tiwest operations assets and liabilities. The unaudited Condensed Consolidated Statements of Operations for the three and nine months ended September30, 2013 and three months ended September 30, 2012 reflect 100% of the revenue and expenses of the Tiwest operations, while the unaudited Condensed Consolidated Statement of Operations for the nine months ended September30, 2012 reflects Tronox Incorporated’s revenues generated from its share of the products sold and its share of the expenses of the joint venture on a gross basis prior to June15, 2012, and, from June15, 2012 through September30, 2012 reflect 100% of the revenues and expenses of the Tiwest operations.

In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. It is at least reasonably possible that the effect on the financial statements of a change in estimate within one year of the date of the financial statements due to one or more future confirming events could have a material effect on the financial statements. The consolidated results of operations for interim periods are not necessarily indicative of results for the entire year.

Certain prior period amounts have been reclassified to conform to the manner and presentation in the current period. Such reclassifications did not have an impact on the Company’s net income or consolidated results of operations.

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Shareholders Equity (Tables)

9 Months Ended

Sep. 30, 2013

Changes in Outstanding and Treasury Shares

The changes in outstanding shares for the nine months ended September30, 2013 were as follows:

Tronox Limited Class A Shares outstanding:
Balance at December31, 2012	62,103,989
Shares issued for share-based compensation	73,456
Shares issued for warrants exercised	81,052
Shares issued for options exercised	50,000
Balance at September30, 2013	62,308,497
Tronox Limited Class B Shares outstanding:
Balance at December31, 2012	51,154,280
Balance at September30, 2013	51,154,280

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Segment Information

9 Months Ended

Sep. 30, 2013

Segment Information

21. Segment Information

Prior to the Transaction, Tronox Incorporated had one reportable segment representing its pigment business. The Pigment segment primarily produced and marketed TiO2, and included heavy minerals production. The heavy minerals production was integrated with its Australian pigment plant, but also had third-party sales of minerals not utilized by its pigment operations. In connection with the Transaction, the Company acquired 74% of Exxaro’s mineral sands operations, along with its 50% share of the Tiwest Joint Venture in Western Australia. As such, the Company evaluated its new operations under ASC 280, Segments, and determined that the mineral sands operations qualify as a separate segment.

Subsequent to the Transaction, the Company has two reportable segments, Mineral Sands and Pigment. The Mineral Sands segment includes the exploration, mining and beneficiation of mineral sands deposits, as well as heavy mineral production. These operations produce titanium feedstock, including chloride slag, slag fines and rutile, as well as pig iron and zircon. The Pigment segment primarily produces and markets TiO2, and has production facilities in the United States, Australia, and The Netherlands. Corporate and Other is comprised of corporate activities and businesses that are no longer in operation, as well as electrolytic manufacturing and marketing operations, all of which are located in the United States.

Segment performance is evaluated based on segment operating profit (loss), which represents the results of segment operations before unallocated costs, such as general corporate expenses not identified to a specific segment, environmental provisions, net of reimbursements, related to sites no longer in operation, interest expense, other income (expense) and income tax expense or benefit.

	Mineral Sands		Pigment			Corporate AndOther			Eliminations			Total
Three Months Ended September30, 2013
Net Sales (1)	$	245	$	300		$	35		$	(89	)	$	491
Income (loss) from operations		41		(29	)		(20	)		17			9
Interest and debt expense													(32	)
Other income													(10	)
Loss before Income Taxes													(33	)
Depreciation, Depletion and Amortization	$	67	$	20		$	5		$	—		$	92
Capital Expenditures	$	10	$	14		$	1		$	—		$	25
Three Months Ended September30, 2012
Net Sales (1)	$	272	$	280		$	38		$	(103	)	$	487
Income (loss) from operations		32		(4	)		(26	)		(19	)		(17	)
Interest and debt expense													(18	)
Loss before Income Taxes												$	(35	)
Depreciation, Depletion and Amortization	$	47	$	20		$	4		$	—		$	71
Capital Expenditures	$	27	$	10		$	6		$	—		$	43
Nine Months Ended September30, 2013
Net Sales (1)	$	855	$	892		$	97		$	(358	)	$	1,486
Income (loss) from operations		205		(153	)		(55	)		2			(1	)
Interest and debt expense													(94	)
Other expense													18
Income before Income Taxes												$	(77	)
Depreciation, Depletion and Amortization	$	165	$	61		$	12		$	—		$	238
Capital Expenditures	$	59	$	39		$	6		$	—		$	104
Nine Months Ended September30, 2012
Net Sales (1)	$	444	$	990		$	97		$	(181	)	$	1,350
Income (loss) from operations		129		142			(130	)		(23	)		118
Interest and debt expense													(40	)
Other expense													(4	)
Gain on bargain purchase													1,055
Income before Income Taxes												$	1,129
Depreciation, Depletion and Amortization	$	63	$	50		$	11		$	—		$	124
Capital Expenditures	$	47	$	25		$	19		$	—		$	91

  (1 ) Net sales by geographic region, principally based on country of production, were as follows:

	ThreeMonthsEndedSeptember30,				NineMonthsEndedSeptember30,
	2013		2012		2013		2012
U.S. operations	$	219	$	211	$	622	$	670
International operations:
South Africa		129		115		383		139
Australia		90		103		311		346
The Netherlands		53		58		170		195
Total	$	491	$	487	$	1,486	$	1,350

Total assets by segment were as follows:

	September30, 2013			December31, 2012
Mineral Sands	$	2,948		$	3,164
Pigment		1,726			1,680
Corporate and Other		1,167			725
Eliminations		(56	)		(58	)
Total	$	5,785		$	5,511

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

	September30, 2013		December31, 2012
U.S. operations	$	198	$	196
International operations:
South Africa		1,046		1,263
Australia		1,247		1,348
The Netherlands		54		55
Total	$	2,545	$	2,862

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Accounts Receivable (Tables)

9 Months Ended

Sep. 30, 2013

Accounts Receivable, Net of Allowance for Doubtful Accounts

Accounts receivable, net of allowance for doubtful accounts, consisted of the following:

	September30, 2013			December31, 2012
Trade receivables	$	358		$	371
Other		16			23
Gross		374			394
Allowance for doubtful accounts		(1	)		(3	)
Net	$	373		$	391

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Debt - Term Loan - Additional Information (Detail) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012
Line Of Credit Facility Covenant Compliance [Line Items]
Proceeds from senior secured term loan		$ 1,500,000,000
Senior secured term loan, Maturity Date		2020-03
Original Issue discount	11,000,000	11,000,000	6,000,000
Original Issue discount, percent		0.50%
Principal repayment	4,000,000	4,000,000
Term Facility
Line Of Credit Facility Covenant Compliance [Line Items]
Original Issue discount	$ 7,000,000	$ 7,000,000
Term Loan
Line Of Credit Facility Covenant Compliance [Line Items]
Interest rate, applicable margin	2.50%	2.50%
Minimum Interest rate, applicable margin	1.00%	1.00%
Term Loan | Minimum
Line Of Credit Facility Covenant Compliance [Line Items]
Interest Rate	1.00%	1.00%
Base Rate		2.00%
Term Loan | Euro Dollar Margin
Line Of Credit Facility Covenant Compliance [Line Items]
Interest rate, applicable margin	3.50%	3.50%

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Accrued Liabilities (Tables)

9 Months Ended

Sep. 30, 2013

Accrued Liabilities

Accrued liabilities consisted of the following:

	September30, 2013		December31, 2012
Taxes other than income taxes	$	57	$	58
Employee-related costs and benefits		47		45
Sales rebates		19		13
Unfavorable sales contracts		12		64
Interest		7		22
Other		7		7
Total	$	149	$	209

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Debt - Term Facility - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended			9 Months Ended	1 Months Ended	9 Months Ended		0 Months Ended	1 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Sep. 30, 2013 Senior Secured Term Loan	Feb. 28, 2013 Term Facility	Sep. 30, 2013 Term Facility	Feb. 08, 2012 Term Facility Senior Secured Term Loan	Feb. 08, 2012 Term Facility Senior Secured Delayed Draw	Feb. 28, 2013 Term Facility Senior Secured Delayed Draw	Sep. 30, 2013 Term Facility Senior Secured Delayed Draw	Sep. 30, 2012 Term Facility Senior Secured Delayed Draw	Jun. 30, 2012 Term Facility Senior Secured Delayed Draw
Line Of Credit Facility Covenant Compliance [Line Items]
Amount of exit facility								$ 550	$ 150
Original Issue discount	11	11		6	5		7		7
Principal amount percent									1.00%
Principal repayment	4	4										2
Amount of exit facility													150
Repayment of outstanding principal balance						149
Proceeds from borrowings		945	1,690							150
Loss on extinguishment of debt		4									4
Outstanding Balance	696	696			547
Debt issuance cost							$ 11

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Segment Information - Segment Reporting Information of Revenue and Property, Plant and Equipment (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2013		Sep. 30, 2012		Sep. 30, 2013		Sep. 30, 2012		Dec. 31, 2012
Revenues From External Customers And Long Lived Assets [Line Items]
Net Sales	$ 491	[1]	$ 487	[1]	$ 1,486	[1]	$ 1,350	[1]
Property plant and equipment and mineral leaseholds, net	2,545				2,545				2,862
U.S. operations
Revenues From External Customers And Long Lived Assets [Line Items]
Net Sales	219		211		622		670
Property plant and equipment and mineral leaseholds, net	198				198				196
South Africa
Revenues From External Customers And Long Lived Assets [Line Items]
Net Sales	129		115		383		139
Property plant and equipment and mineral leaseholds, net	1,046				1,046				1,263
Australia
Revenues From External Customers And Long Lived Assets [Line Items]
Net Sales	90		103		311		346
Property plant and equipment and mineral leaseholds, net	1,247				1,247				1,348
The Netherlands
Revenues From External Customers And Long Lived Assets [Line Items]
Net Sales	53		58		170		195
Property plant and equipment and mineral leaseholds, net	$ 54				$ 54				$ 55

[1] Net sales by geographic region, principally based on country of production

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Property, Plant and Equipment, Net - Additional Information (Detail) (Property plant and equipment, USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Property plant and equipment
Property Plant And Equipment [Line Items]
Depreciation expense related to property, plant and equipment	$ 44	$ 45	$ 134	$ 81

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Acquisition of the Mineral Sands Business - Additional Information (Detail) (USD $)	9 Months Ended
	Sep. 30, 2013
Exxaro
Business Acquisition Information [Line Items]
Acquisition mineral sands operations	74.00%
Retained ownership interest of Exxaro and its subsidiaries	45.00%
Percentage of Tronox Limited's voting securities	44.40%
Retained ownership interest in Tronox KZN Sands	26.00%
Percentage of exchange interest in additional Class B shares	3.20%
Tronox Incorporated Stockholders
Business Acquisition Information [Line Items]
Cash for each share of Tronox incorporated common stock	$ 12.50
Class B Shares
Business Acquisition Information [Line Items]
Number of Class B Shares	9,950,856
Tiwest Joint Venture
Business Acquisition Information [Line Items]
Percentage of outstanding voting securities of Tronox Limited	50.00%

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Pension and Other Postretirement Healthcare Benefits (Tables)

9 Months Ended

Sep. 30, 2013

Components of Net Periodic Pension and Postretirement Healthcare Cost

The components of net periodic cost associated with the U.S.and foreign retirement plans recognized in the unaudited Condensed Consolidated Statements of Operations were as follows:

	RetirementPlans
	ThreeMonthsEndedSeptember30,							NineMonthsEndedSeptember30,
	2013			2012			2013				2012
Net periodic cost:
Service cost	$	1		$	1		$		4		$	2
Interest cost		5			5				15			16
Expected return on plan assets		(5	)		(5	)			(15	)		(15	)
Net amortization of actuarial loss		1			—				2			—
Total net periodic cost	$	2		$	1		$		6		$	3

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Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net Income (Loss):
Net Income (Loss)	$ (41)	$ (1)	$ (87)	$ 1,229
Other Comprehensive Income (Loss):
Foreign currency translation adjustments	(5)	14	(206)	47
Amortization of actuarial gain, net of taxes	1		1
Other comprehensive income (loss)	(4)	14	(205)	47
Total comprehensive income (loss)	(45)	13	(292)	1,276
Comprehensive income (loss) attributable to noncontrolling interest:
Net income	8	2	32	2
Foreign currency translation adjustments	(6)	3	(57)	13
Comprehensive income (loss) attributable to noncontrolling interest	2	5	(25)	15
Comprehensive income (loss) attributable to Tronox Limited	$ (47)	$ 8	$ (267)	$ 1,261

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Property, Plant and Equipment, Net

9 Months Ended

Sep. 30, 2013

Property, Plant and Equipment, Net

7. Property, Plant and Equipment, Net

Property, plant and equipment, net of accumulated depreciation and amortization, consisted of the following:

	September30, 2013			December31, 2012
Land and land improvements	$	80		$	80
Buildings		188			194
Machinery and equipment		1,143			1,158
Construction-in-progress		128			153
Furniture and fixtures		23			7
Other		9			6
Gross		1,571			1,598
Less accumulated depreciation and amortization		(295	)		(175	)
Net	$	1,276		$	1,423

Depreciation expense related to property, plant and equipment for the three months ended September30, 2013 and 2012 was $44 million and $45 million, respectively, and for nine months ended September30, 2013 and 2012 was $134 million and $81 million, respectively.

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Net of allowance for doubtful accounts receivable	$ 1	$ 3
Class A common stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	64,349,504	63,413,288
Common stock, shares outstanding	62,308,497	62,103,989
Class B common stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	51,154,280	51,154,280
Common stock, shares outstanding	51,154,280	51,154,280

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Intangible Assets, Net - Gross Cost and Accumulated Amortization of Intangible Assets (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Finite Lived Intangible Assets [Line Items]
Gross Cost	$ 374	$ 373
Accumulated Amortization	(68)	(47)
Net	306	326
Customer relationships
Finite Lived Intangible Assets [Line Items]
Gross Cost	294	294
Accumulated Amortization	(54)	(39)
Net	240	255
TiO2 Technology
Finite Lived Intangible Assets [Line Items]
Gross Cost	32	32
Accumulated Amortization	(4)	(3)
Net	28	29
Internal-use software
Finite Lived Intangible Assets [Line Items]
Gross Cost	39	38
Accumulated Amortization	(5)	(2)
Net	34	36
Other
Finite Lived Intangible Assets [Line Items]
Gross Cost	9	9
Accumulated Amortization	(5)	(3)
Net	$ 4	$ 6

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Condensed Consolidated Statements of Operations (USD $) In Millions, except Share data in Thousands, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2013		Sep. 30, 2012		Sep. 30, 2013		Sep. 30, 2012
Net Sales	$ 491	[1]	$ 487	[1]	$ 1,486	[1]	$ 1,350	[1]
Cost of goods sold	437		444		1,350		1,025
Gross Margin	54		43		136		325
Selling, general and administrative expenses	45		60		137		207
Income (Loss) from Operations	9		(17)		(1)		118
Interest and debt expense	(32)		(18)		(94)		(40)
Other income (expense)	(10)				18		(4)
Gain on bargain purchase							1,055
Income (Loss) before Income Taxes	(33)		(35)		(77)		1,129
Income tax benefit (provision)	(8)		34		(10)		100
Net Income (Loss)	(41)		(1)		(87)		1,229
Net income attributable to noncontrolling interest	8		2		32		2
Net Income (Loss) attributable to Tronox Limited	$ (49)		$ (3)		$ (119)		$ 1,227
Income (Loss) per Share, Basic and Diluted:
Basic	$ (0.43)		$ (0.03)		$ (1.05)		$ 12.95
Diluted	$ (0.43)		$ (0.03)		$ (1.05)		$ 12.59
Weighted Average Shares Outstanding (in thousands):
Basic	113,459		122,352		113,389		94,193
Diluted	113,459		122,352		113,389		96,903

[1] Net sales by geographic region, principally based on country of production

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Accounts Receivable - Accounts Receivable, Net of Allowance for Doubtful Accounts (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Accounts Notes And Loans Receivable [Line Items]
Gross	$ 374	$ 394
Allowance for doubtful accounts	(1)	(3)
Net	373	391
Trade Receivables
Accounts Notes And Loans Receivable [Line Items]
Gross	358	371
Other
Accounts Notes And Loans Receivable [Line Items]
Gross	$ 16	$ 23

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Commitments and Contingencies - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Oct. 20, 2012
Short Term Debt [Line Items]
Purchase commitments obligation 2013	$ 42
Purchase commitments obligation 2014	163
Purchase commitments obligation 2015	79
Purchase commitments obligation 2016	40
Purchase commitments obligation 2017	33
Purchase commitments obligation thereafter	123
Outstanding letters of credit	45
Office of State Revenue Assessment		5
Primary stamp duty liability		3
Penalty tax		2
UBS Revolver
Short Term Debt [Line Items]
Outstanding letters of credit	25
ABSA Revolver
Short Term Debt [Line Items]
Outstanding letters of credit	$ 18

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Asset Retirement Obligations - Summary of Changes in AROs (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Asset Retirement Obligations [Line Items]
Beginning balance	$ 103	$ 96	$ 113	$ 30
Additions			2	6
Accretion expense	1	1	5
Settlements/payments	1		(2)
Remeasurement/translation	1	2	(12)	5
Changes in estimates, including cost and timing of cash flows		3		3
AROs acquired in the acquisition of mineral sands business				57
Ending balance	106	102	106	102
Current portion included in accrued liabilities	149		149		209
Asset Retirement Obligation
Asset Retirement Obligations [Line Items]
Current portion included in accrued liabilities	7	2	7	2
Noncurrent portion	$ 99	$ 100	$ 99	$ 100

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Emergence from Chapter 11

9 Months Ended

Sep. 30, 2013

Emergence from Chapter 11

22. Emergence from Chapter 11

On January12, 2009, the petition date, Tronox Incorporated and certain of its subsidiaries (collectively, the “Debtors”) filed voluntary petitions in the U.S. Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”) seeking reorganization relief under the provisions of Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”). The Debtors’ Chapter 11 cases were consolidated for the purpose of joint administration.

In May 2009, the Company commenced an adversary proceeding in the Bankruptcy Court against Kerr-McGee and its new parent, Anadarko, related to the 2005 Spin-Off of Tronox (Tronox Inc. v. Anadarko Petroleum Corp. (In re Tronox Inc.), 09-1198, U.S. Bankruptcy Court, Southern District New York (Manhattan)) (the “Anadarko Litigation”).Pursuant the Plan, the Company assigned the rights to any pre-tax proceeds that may be recovered in the Anadarko Litigation to its creditors.

On November30, 2010 (the “Confirmation Date”), the Bankruptcy Court entered an order confirming the Debtors’ First Amended Joint Plan of Reorganization pursuant to Chapter 11 of the Bankruptcy Code, dated November5, 2010 (as amended and confirmed, the “Plan”). Material conditions to the Plan were resolved during the period from the Confirmation Date until January26, 2011, and subsequently, on February14, 2011 (the “Effective Date”), the Debtors emerged from bankruptcy and continued operations as reorganized Tronox Incorporated.

On June13, 2013, the Bankruptcy Court entered a Final Decree and ordered that the bankruptcy cases, other than the adversary proceedings with Anadarko Petroleum Corporation (“Anadarko”), be closed.

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Income Taxes

9 Months Ended

Sep. 30, 2013

Income Taxes

16. Income Taxes

The Company’s operations are conducted through its various subsidiaries in a number of countries throughout the world. The Company has provided for income taxes based upon the tax laws and rates in the countries in which operations are conducted and income is earned.

For the three and nine months ended September30, 2013, Tronox Limited was the public parent registered under the laws of the State of Western Australia. For the three months ended September30, 2012 and from June15, 2012 through September30, 2012, Tronox Limited was the public parent; however, prior to June15, 2012, Tronox Incorporated was the public parent, a Delaware corporation registered in the United States.

	ThreeMonthsEndedSeptember30,								NineMonthsEndedSeptember30,
	2013			2012				2013				2012
Income tax benefit (provision)	$	(8	)	$	34			$		(10	)	$	100
Income (Loss) before Income Taxes	$	(33	)	$	(35	)		$		(77	)	$	1,129
Effective tax rate		(24	)%		97		%			(13	)%		(9	)%

The negative effective tax rates for the three months and the nine months ended September30, 2013, differ from the Australianstatutory rate of 30% primarily due to withholding tax accruals, prior year return to provision and other adjustments, valuation allowances in various jurisdictions, and income in foreign jurisdictions taxed at rates different than 30%.

The negative effective tax rate for the nine months ended September30, 2012, differs from the U.S.statutory rate of 35% primarily as a consequence of the Company re-domiciling in Australia. Because the Australian tax laws provide for a resetting of the tax basis of the business assets to market value, the Company recorded a tax benefit related to this market value basis adjustment. The overall tax benefit from this basis adjustment increase was partially offset by a valuation allowance established for the portion of the tax benefit which the Company believes will not be realized. Because this basis change did not pertain to an entity acquired in the Transaction, this net tax benefit was recorded through tax expense and did not impact the Company’s gain on bargain purchase.

Additionally, the effective tax rate for the nine months ended September30, 2012, was impacted by the release of a valuation allowance in The Netherlands, continuing valuation allowances in the United States, income in foreign jurisdictions taxed at rates lower than 35%, and the Company’s gain on the bargain purchase, which was recorded net of the financial tax impact and is not subject to income tax in any jurisdiction.

The high effective tax rate for the three months ended September30, 2012, differs from the U.S. statutory rate of35% primarily because the Company incurred a book operating loss for the quarter while recording a tax benefit from the release of a valuation allowance in The Netherlands.

The application of business combination accounting on June15, 2012 resulted in the re-measurement of deferred income taxes associated with recording the assets and liabilities of acquired entities at fair value pursuant to ASC 805. As a result, deferred income taxes of $205 million were recorded at amounts determined in accordance with ASC 740, Income Taxes (“ASC 740”) as part of the Company’s gain on bargain purchase.

The Company continues to maintain a valuation allowance related to the net deferred tax assets in the United States.Future provisions for income taxes will include no tax benefits with respect to losses incurred and tax expense only to the extent of state tax payments until the valuation allowance in the United Statesis eliminated. ASC740 requires that all available positive and negative evidence be weighted to determine whether a valuation allowance should be recorded.

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Share-based Compensation (Tables)

9 Months Ended

Sep. 30, 2013

Restricted Stock Share Activity with Employees

Restricted share activity for the nine months ended September30, 2013 and 2012 was as follows:

	Numberof Shares				Fair Value(1)
Balance at December31, 2012		761,065		$		20.62
Awards granted		820,027				21.14
Awards earned		(71,981	)			24.17
Awards forfeited		(16,338	)			23.83
Balance at September30, 2013		1,492,773		$		20.70
Outstanding awards expected to vest		1,467,461		$		20.67

	Numberof Shares				Fair Value(1)
Balance at December31, 2011		—		$		—
Awards converted from Tronox Incorporated to Tronox Limited in connection with the Transaction		420,765				16.99
Awards granted		184,571				27.11
Awards earned		(7,550	)			25.90
Awards forfeited		(7,985	)			29.29
Balance at September30, 2012		589,801		$		19.87
Outstanding awards expected to vest		582,887		$		19.78

  (1 ) Represents the weighted-average grant-date fair value

Restricted share activity with employees and directors was as follows:

	Number of Shares				Fair Value(1)
Balance at December31, 2011		1,177,995		$		21.48
Awards granted		52,915				24.36
Awards earned		(810,145	)			32.41
Awards converted to Tronox Limited restricted shares in connection with the Transaction		(420,765	)			16.99
Balance at September30, 2012		—		$		—

  (1 ) Represents weighted average fair value. Liability awards are remeasured to fair value at each reporting date and upon vesting, while equity awards are presented at grant date fair value.

Activity for Company's Options

During the nine months ended September30, 2013, the Company granted options to employees to purchase ClassA Shares, which have graded vesting provisions over a three year period. Options activity was as follows:

	Numberof Options			Price(1)		Contractual Life Years(1)		Intrinsic Value(2)
Balance at December31, 2012		612,439		$	24.81
Options issued		1,590,438			19.17
Options exercised		(50,000	)		22.00
Options expired		(32,978	)		25.65
Options forfeited		(19,288	)		20.44
Outstanding at September30, 2013		2,100,611		$	20.63		9.23	$	9
Outstanding and expected to vest at September30, 2013		1,872,810		$	20.24		9.27	$	9
Exercisable at September30, 2013		172,277		$	25.09		8.62	$	—

(1	)	Represents weighted average exercise price and weighted average remaining contractual life, as applicable.
(2	)	Reflects aggregate intrinsic value based on the difference between the market price of the Company’s shares at September30, 2013 and the options’ exercise price.

Assumptions Used in Calculating Options Granted

The Company utilized the Black-Scholes option-pricing model using the following assumptions:

	February25, 2013			March11, 2013			September 3, 2013
Number of options granted		1,544,872			8,238			37,328
Fair market value and exercise price (1)	$	19.09		$	21.49		$	21.94
Risk-free interest rate (2)		1.04	%		1.19	%		2.10	%
Expected dividend yield		5.24	%		4.65	%		4.56	%
Expected volatility		56	%		56	%		56	%
Maturity (years)		10			10			10
Expected term (years)		6			6			6
Per-unit fair value of options granted	$	6.28		$	7.48		$	7.92

(1	)	The adjusted closing price of ClassA Shares, New York Stock Exchange symbol TROX, on the grant date.
(2	)	The risk-free interest rate was based on U.S. Treasury Strips available with maturity period consistent with expected life assumption.

Tronox Incorporated ran the Black-Scholes option-pricing model using the following assumptions:

	January2, 2012			June6, 2012
Number of options granted		22,330			150,000
Fair market value and exercise price (1)	$	24.60		$	30.45
Risk-free interest rate (2)		1.97	%		0.94	%
Expected dividend yield		0.0	%		0.0	%
Expected volatility		49	%		55	%
Expected term (years)		10			10
Per-unit fair value of options granted	$	14.78		$	15.64

(1	)	The adjusted closing price of ClassA Shares, New York Stock Exchange symbol TROX, on the grant date.
(2	)	The risk-free interest rate was based on U.S. Treasury Strips available with maturity period consistent with expected life assumption.

Stock Option

Activity for Company's Options

During the nine months ended September30, 2012, the Company granted options to employees to purchase ClassA Shares, which have graded vesting provisions over a three year period. Options activity was as follows:

	Numberof Options			Price(1)		Contractual Life Years (1)		Intrinsic Value(2)
Balance at December31, 2011		—		$	—
Options converted to Tronox Limited in connection with the Transaction		517,330			24.56
Options issued		158,960			25.62
Options forfeited		(152,320	)		22.38
Outstanding at September30, 2012		523,970		$	25.52		9.49	$	—
Outstanding and expected to vest at September30, 2012		488,791		$	25.59		9.50	$	—
Exercisable at September30, 2012		7,440		$	24.60		9.27	$	—

(1	)	Represents weighted average exercise price and weighted average remaining contractual life, as applicable.
(2	)	Reflects aggregate intrinsic value based on the difference between the market price of the Company’s shares at September30, 2012 and the options’ exercise price.

Tronox Incorporated options activity was as follows:

	Numberof Options			Price(1)
Balance at December31, 2011		345,000		$	22.00
Options issued		172,330			29.69
Options converted to Tronox Limited in connection with the Transaction		(517,330	)		24.56
Outstanding at September30, 2012		—		$	—

  (1 ) Represents weighted average exercise price.

Assumptions Used in Calculating Options Granted

The Company utilized the Black-Scholes option-pricing model for the options granted and used the following assumptions:

	June26,2012			July31,2012				August31,2012
Number of options granted		135,895			15,808				7,257
Fair market value and exercise price (1)	$	25.90		$	23.17		$		25.79
Risk-free interest rate (2)		0.97	%		0.83	%			0.85	%
Expected dividend yield		3.86	%		4.32	%			3.88	%
Expected volatility		55	%		56	%			56	%
Maturity (years)		10			10				10
Expected term (years)		6			6				6
Per-unit fair value of options granted	$	9.43		$	8.21		$		9.51

(1	)	The adjusted closing price of ClassA Shares, New York Stock Exchange symbol TROX, on the grant date.
(2	)	The risk-free interest rate was based on U.S. Treasury Strips available with maturity period consistent with expected life assumption.

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Derivative Instruments - Schedule of Gains (Losses) Recorded in Other Income (Expense) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Derivative Instruments Gain Loss [Line Items]
Gain (Losses) on currency forward contracts	$ 1		$ 1

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Property, Plant and Equipment, Net - Net Property, Plant and Equipment (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Property Plant And Equipment [Line Items]
Gross	$ 1,571	$ 1,598
Less accumulated depreciation and amortization	(295)	(175)
Net	1,276	1,423
Land and land improvements
Property Plant And Equipment [Line Items]
Gross	80	80
Buildings
Property Plant And Equipment [Line Items]
Gross	188	194
Machinery and equipment
Property Plant And Equipment [Line Items]
Gross	1,143	1,158
Construction-in-progress
Property Plant And Equipment [Line Items]
Gross	128	153
Furniture and fixtures
Property Plant And Equipment [Line Items]
Gross	23	7
Other
Property Plant And Equipment [Line Items]
Gross	$ 9	$ 6

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Debt - Long-Term Debt (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013 Term Loan	Sep. 30, 2013 Term Facility	Sep. 30, 2012 Term Facility
Long Term Debt Current And Noncurrent [Line Items]
Unamortized discount	$ 11	$ 6		$ 7
Average effective interest rate			5.00%	5.00%	5.00%

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Asset Retirement Obligations (Tables)

9 Months Ended

Sep. 30, 2013

Summary of Changes in AROs

The changes in AROs were as follows:

		Three Months Ended September 30,					Nine Months Ended September 30,
		2013		2012		2013				2012
Beginning balance	$	103	$	96	$	113			$	30
Additions		—		—		2				6
Accretion expense		1		1		5				2
Settlements/payments		1		—		(2		)		(1	)
Remeasurement/translation		1		2		(12		)		5
Changes in estimates, including cost and timing of cash flows		—		3		—				3
AROs acquired in the acquisition of mineral sands business		—		—		—				57
Ending balance	$	106	$	102	$	106			$	102
Current portion included in accrued liabilities	$	7	$	2	$	7			$	2
Noncurrent portion	$	99	$	100	$	99			$	100

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Mineral Leaseholds, Net (Tables)

9 Months Ended

Sep. 30, 2013

Summary of Mineral Leaseholds

Mineral leaseholds, net of accumulated depletion, consisted of the following:

	September30, 2013			December31, 2012
Mineral leaseholds	$	1,412		$	1,502
Less accumulated depletion		(143	)		(63	)
Net	$	1,269		$	1,439

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Intangible Assets, Net (Tables)

9 Months Ended

Sep. 30, 2013

Gross Cost and Accumulated Amortization of Intangible Assets

The gross cost and accumulated amortization of intangible assets, by major intangible asset category, were as follows:

	September30, 2013
	Gross Cost		Accumulated Amortization			Net
Customer relationships	$	294	$	(54	)	$	240
TiO2 technology		32		(4	)		28
Internal-use software		39		(5	)		34
Other		9		(5	)		4
Total	$	374	$	(68	)	$	306

	December31, 2012
	Gross Cost		Accumulated Amortization			Net
Customer relationships	$	294	$	(39	)	$	255
TiO2 technology		32		(3	)		29
Internal-use software		38		(2	)		36
Other		9		(3	)		6
Total	$	373	$	(47	)	$	326

Estimated Future Amortization Expense Related to Intangible Assets

Estimated future amortization expense related to intangible assets was as follows:

	Future Amortization
2013	$	7
2014		27
2015		26
2016		25
2017		25
Thereafter		196
Total	$	306

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Inventories

9 Months Ended

Sep. 30, 2013

Inventories

6. Inventories

Inventories consisted of the follows:

	September30, 2013		December31, 2012
Raw materials	$	184	$	221
Work-in-process		68		99
Finished goods (1)		344		477
Materials and supplies, net (2)		138		117
Total	$	734	$	914

(1	)	Includes inventory on consignment to others of approximately $47million and $42million at September30, 2013 and December31, 2012, respectively.
(2	)	Materials and supplies consist of processing chemicals, maintenance supplies and spare parts, which will be consumed directly and indirectly in the production of the Company’s products.

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Debt - Short-Term Debt (Detail) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2013		Dec. 31, 2012
Standby Letters Of Credit [Line Items]
Short-term debt			$ 30
UBS Revolver
Standby Letters Of Credit [Line Items]
Short-term debt maturity date	Jun. 18, 2017
Short-term debt
ABSA Revolver
Standby Letters Of Credit [Line Items]
Short-term debt maturity date	Jun. 14, 2017	[1]
Short-term debt		[1]	$ 30	[1]

[1] Average effective interest rate of 8.5% during both 2013 and 2012.

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Share-Based Compensation - Additional Information (Detail) In Millions, except Share data, unless otherwise specified	3 Months Ended	9 Months Ended				9 Months Ended													9 Months Ended					3 Months Ended		9 Months Ended	3 Months Ended			9 Months Ended
	Sep. 30, 2013 USD ($)	Sep. 30, 2013 USD ($)	Sep. 30, 2013 ZAR	Sep. 30, 2012 USD ($)	Sep. 30, 2013 Tronox Limited Management Equity Incentive Plan Class A common stock	Sep. 30, 2013 Tronox Incorporated Management Equity Incentive Plan	Sep. 30, 2012 Tronox Incorporated Management Equity Incentive Plan	Sep. 30, 2013 Long Term Incentive Plan USD ($)	Sep. 30, 2013 Restricted Stock USD ($)	Sep. 30, 2013 Restricted Stock Tronox Limited Management Equity Incentive Plan USD ($)		Dec. 31, 2012 Restricted Stock Tronox Limited Management Equity Incentive Plan USD ($)		Sep. 30, 2012 Restricted Stock Tronox Limited Management Equity Incentive Plan USD ($)		Dec. 31, 2011 Restricted Stock Tronox Limited Management Equity Incentive Plan USD ($)		Sep. 30, 2013 Restricted Stock Tronox Incorporated Management Equity Incentive Plan Successor	Sep. 30, 2013 Stock Options Tronox Limited Management Equity Incentive Plan	Sep. 30, 2013 Stock Options Tronox Incorporated Management Equity Incentive Plan	Sep. 30, 2012 Stock Options Tronox Incorporated Management Equity Incentive Plan	Sep. 30, 2013 T Bucks Employee Participation Plan USD ($)	Dec. 31, 2012 T Bucks Employee Participation Plan USD ($)	Sep. 30, 2012 Maximum USD ($)	Sep. 30, 2012 Maximum Long Term Incentive Plan USD ($)	Sep. 30, 2012 Maximum Long Term Incentive Plan USD ($)	Sep. 30, 2013 Maximum T Bucks Employee Participation Plan USD ($)	Sep. 30, 2013 Restricted Stock Grants To Employees USD ($)	Sep. 30, 2012 Restricted Stock Grants To Employees USD ($)	Sep. 30, 2013 Restricted Stock Grants To Employees USD ($)	Sep. 30, 2012 Restricted Stock Grants To Employees USD ($)
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Compensation expense	$ 1	$ 4		$ 1				$ 1																$ 1	$ 1	$ 1		$ 3	$ 2	$ 9	$ 28
Unrecognized compensation expense									45
Recognition of unrecognized compensation expense, weighted average period									2 years
Number of shares, awards granted					12,781,225
Options vesting period																			3 years	3 years
Amount funded to the trust		15	124
Capital contribution for each participant			75,000
Number of shares acquired	548,234	548,234	548,234
Compensation expense																						2					1
Number of shares in trust										1,492,773		761,065		589,801								548,234	548,234
Shares granted										$ 20.70	[1]	$ 20.62	[1]	$ 19.87	[1]		[1]					$ 25.79	$ 25.79
LTlP plan liability	$ 3	$ 3
Number of restricted stock vested																		420,765
Awards converted to Tronox Limited restricted shares in connection with the Transaction						517,330	(517,330)														517,330

[1] Represents the weighted-average grant-date fair value

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Guarantor Condensed Consolidated Financial Statements

9 Months Ended

Sep. 30, 2013

Guarantor Condensed Consolidated Financial Statements

23. Guarantor Condensed Consolidated Financial Statements

Our obligations under the 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 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 September30, 2013

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	491		$	(61	)	$	—		$	326		$	226
Cost of goods sold		437			(84	)		—			326			195
Gross Margin		54			23			—			—			31
Selling, general and administrative expenses		45			(1	)		2			32			12
Income from Operations		9			24			(2	)		(32	)		19
Interest and debt expense		(32	)		—			137			(159	)		(10	)
Other income (expense)		(10	)		(44	)		—			(3	)		37
Equity in earnings of subsidiary		—			135			(135	)		—			—
Income (Loss) before Income Taxes		(33	)		115			—			(194	)		46
Income tax benefit (provision)		(8	)		—			(50	)		52			(10	)
Net Income (Loss)		(41	)		115			(50	)		(142	)		36
Income attributable to noncontrolling interest		8			—			—			8			—
Net Income (Loss) attributable to Tronox Limited	$	(49	)	$	115		$	(50	)	$	(150	)	$	36

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Nine Months ended September30, 2013

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	1,486		$	(256	)	$	—		$	994		$	748
Cost of goods sold		1,350			(256	)		—			968			638
Gross Margin		136			—			—			26			110
Selling, general and administrative expenses		137			(3	)		11			98			31
Income from Operations		(1	)		3			(11	)		(72	)		79
Interest and debt expense		(94	)		—			410			(483	)		(21	)
Other income (expense)		18			(44	)		1			5			56
Equity in earnings of subsidiary		—			391			(391	)		—			—
Income (Loss) before Income Taxes		(77	)		350			9			(550	)		114
Income tax benefit (provision)		(10	)		—			(128	)		143			(25	)
Net Income (Loss)		(87	)		350			(119	)		(407	)		89
Income attributable to noncontrolling interest		32			—			—			32			—
Net Income (Loss) attributable to Tronox Limited	$	(119	)	$	350		$	(119	)	$	(439	)	$	89

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three months ended September30, 2013

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations		Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	(41	)	$	115	$	(50	)	$	(142	)	$	36
Other Comprehensive Income (Loss):
Foreign currency translation adjustments		(5	)		—		—			—			(5	)
Amortization of actuarial losses, net of taxes		1			—		—			2			(1	)
Other comprehensive income (loss)		(4	)		—		—			2			(6	)
Total comprehensive income (loss)		(45	)		115		(50	)		(140	)		30
Comprehensive income (loss) attributable to noncontrolling interest:
Net income		8			—		—			8			—
Foreign currency translation adjustments		(6	)		—		—			(6	)		—
Comprehensive income (loss) attributable to noncontrolling interest		2			—		—			2			—
Comprehensive income (loss) attributable to Tronox Limited	$	(47	)	$	115	$	(50	)	$	(142	)	$	30

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Nine Months ended September30, 2013

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations		Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	(87	)	$	350	$	(119	)	$	(407	)	$	89
Other Comprehensive Income (Loss):
Foreign currency translation adjustments		(206	)		—		—			—			(206	)
Amortization of actuarial losses, net of taxes		1			—		—			2			(1	)
Other comprehensive income (loss)		(205	)		—		—			2			(207	)
Total comprehensive income (loss)		(292	)		350		(119	)		(405	)		(118	)
Comprehensive income (loss) attributable to noncontrolling interest:
Net income		32			—		—			32			—
Foreign currency translation adjustments		(57	)		—		—			(57	)		—
Comprehensive income (loss) attributable to noncontrolling interest		(25	)		—		—			(25	)		—
Comprehensive income (loss) attributable to Tronox Limited	$	(267	)	$	350	$	(119	)	$	(380	)	$	(118	)

GUARANTOR CONDENSED CONSOLIDATED BALANCE SHEETS

As of September30, 2013

(Unaudited)

(Millions of U.S. dollars)

	Consolidated		Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	$	1,457	$	—		$	339		$	934		$	184
Investment in subsidiaries		—		(998	)		(1,012	)		1,553			457
Property, plant and equipment, net		1,276		—			—			716			560
Mineral leaseholds, net		1,269		—			—			730			539
Other assets		1,783		(9,275	)		6,422			2,397			2,239
Total Assets	$	5,785	$	(10,273	)	$	5,749		$	6,330		$	3,979
Liabilities and Equity
Long-term debt	$	2,386	$	—		$	—		$	901		$	1,485
Other liabilities		878		(9,224	)		1,426			8,085			591
Total Liabilities		3,264		(9,224	)		1,426			8,986			2,076
Total Equity		2,521		(1,049	)		4,323			(2,656	)		1,903
Total Liabilities and Equity	$	5,785	$	(10,273	)	$	5,749		$	6,330		$	3,979

GUARANTOR CONDENSED CONSOLIDATED BALANCE SHEETS

As of December31, 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
Property, plant and equipment, net		1,423		—			—			747			676
Mineral leaseholds, net		1,439		—			—			796			643
Other assets		1,933		(8,300	)		6,044			2,582			1,607
Total Assets	$	5,511	$	(9,895	)	$	5,955		$	5,967		$	3,484
Liabilities and Equity
Long-term debt	$	1,605	$	—		$	—		$	902		$	703
Other liabilities		1,024		(8,248	)		1,442			7,111			719
Total Liabilities		2,629		(8,248	)		1,442			8,013			1,422
Total 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

Nine Months ended September30, 2013

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Cash Flows from Operating Activities
Net income (loss)	$	(87	)	$	350		$	(119	)	$	(407	)	$	89
Other		297			(350	)		10			1,302			(665	)
Cash provided by (used in) operating activities		210			—			(109	)		895			(576	)
Cash Flows from Investing Activities:
Capital expenditures		(104	)		—			—			(43	)		(61	)
Cash used in investing activities		(104	)		—			—			(43	)		(61	)
Cash Flows from Financing Activities
Repayments of debt		(185	)		—			—			—			(185	)
Proceeds from borrowings		945			—			—			—			945
Debt issuance costs		(29	)		—			—			—			(29	)
Dividends paid		(86	)		—			(86	)		—			—
Proceeds from the conversion of warrants		1			—			1			—			—
Cash provided by (used in) financing activities		646			—			(85	)		—			731
Effects of Exchange Rate Changes on Cash and Cash Equivalents		(11	)		—			—			—			(11	)
Net Increase (Decrease) in Cash and Cash Equivalents		741			—			(194	)		852			83
Cash and Cash Equivalents at Beginning of Period		716			—			533			82			101
Cash and Cash Equivalents at End of Period	$	1,457		$	—		$	339		$	934		$	184

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three months ended September30, 2012

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	487		$	(46	)	$	—		$	321		$	212
Cost of goods sold		444			(28	)		—			271			201
Gross Margin		43			(18	)		—			50			11
Selling, general and administrative expenses		60			(1	)		1			49			11
Income from Operations		(17	)		(17	)		(1	)		1			—
Interest and debt expense		(18	)		—			137			(158	)		3
Other income (expense)		—			—			—			(5	)		5
Equity in earnings of subsidiary		—			102			(102	)		—			—
Income (Loss) before Income Taxes		(35	)		85			34			(162	)		8
Income tax benefit (provision)		34			—			(36	)		60			10
Net Income (Loss)		(1	)		85			(2	)		(102	)		18
Income attributable to noncontrolling interest		2			—			—			2			—
Net Income (Loss) attributable to Tronox Limited	$	(3	)	$	85		$	(2	)	$	(104	)	$	18

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Nine months ended September30, 2012

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	1,350		$	(96	)	$	—		$	1,048		$	398
Cost of goods sold		1,025			(82	)		—			770			337
Gross Margin		325			(14	)		—			278			61
Selling, general and administrative expenses		207			(3	)		39			148			23
Income from Operations		118			(11	)		(39	)		130			38
Interest and debt expense		(40	)		—			—			(18	)		(22	)
Other income (expense)		(4	)		37			160			(171	)		(30	)
Gain on bargain purchase		1,055			—			1,055			—			—
Equity in earnings of subsidiary		—			1,092			(1,094	)		2			—
Income (Loss) before Income Taxes		1,129			1,118			82			(57	)		(14	)
Income tax benefit (provision)		100			—			(32	)		119			13
Net Income (Loss)		1,229			1,118			50			62			(1	)
Income attributable to noncontrolling interest		2			—			—			2			—
Net Income (Loss) attributable to Tronox Limited	$	1,227		$	1,118		$	50		$	60		$	(1	)

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three months ended September30, 2012

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations		Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	(1	)	$	85	$	(2	)	$	(102	)	$	18
Other Comprehensive Income:
Foreign currency translation adjustments		14			—		—			—			14
Other comprehensive income		14			—		—			—			14
Total comprehensive income		13			85		(2	)		(102	)		32
Comprehensive income attributable to noncontrolling interest:
Income attributable to noncontrolling interest		2			—		—			2			—
Foreign currency translation adjustments		3			—		—			3			—
Comprehensive income attributable to noncontrolling interest		5			—		—			5			—
Comprehensive income (loss) attributable to Tronox Limited	$	8		$	85	$	(2	)	$	(107	)	$	32

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Nine months ended September30, 2012

(Unaudited)

(Millions of U.S. dollars)

	Consolidated		Eliminations		Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	1,229	$	1,118	$	50	$	62		$	(1	)
Other Comprehensive Income (Loss):
Foreign currency translation adjustments		47		19		—		(2	)		30
Retirement and postretirement plans adjustments, net of tax		—		—		—		(17	)		17
Deferred Tax		—		—		—		(3	)		3
Other comprehensive income (loss)		47		19		—		(22	)		50
Total comprehensive income		1,276		1,137		50		40			49
Comprehensive income attributable to noncontrolling interest:
Income attributable to noncontrolling interest		2		—		—		2			—
Foreign currency translation adjustments		13		—		—		13			—
Comprehensive income attributable to noncontrolling interest		15		—		—		15			—
Comprehensive income attributable to Tronox Limited	$	1,261	$	1,137	$	50	$	25		$	49

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months ended September30, 2012

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Cash Flows from Operating Activities
Net income (loss)	$	1,229		$	1,118		$	50		$	62		$	(1	)
Gain on bargain purchase		(1,055	)		—			(1,055	)		—			—
Other		(99	)		(1,118	)		1,441			154			(576	)
Cash provided by (used in) operating activities		75			—			436			216			(577	)
Cash Flows from Investing Activities:
Capital expenditures		(91	)		—			—			(61	)		(30	)
Cash received in acquisition of mineral sands business, net of cash paid		114			—			114			—			—
Cash provided by (used in) investing activities		23			—			114			(61	)		(30	)
Cash Flows from Financing Activities
Reductions of debt		(583	)		—			—			(481	)		(102	)
Proceeds from borrowings		1,690			—			—			943			747
Debt issuance costs		(20	)		—			—			—			(20	)
Paid dividends		(32	)		—			(32	)		—			—
Merger consideration		(193	)		—			(193	)		—			—
ClassA ordinary share repurchases		(326	)		—			(326	)		—			—
Proceeds from conversion of warrants		1			—			1			—			—
Shares purchased for the Employee Participation Program		(15	)		—			—			—			(15	)
Cash provided by (used in) financing activities		522			—			(550	)		462			610
Effects of Exchange Rate Changes on Cash and Cash Equivalents		—			—			—			—			—
Net Increase (Decrease) in Cash and Cash Equivalents		620			—			—			617			3
Cash and Cash Equivalents at Beginning of Period		154			—			—			107			47
Cash and Cash Equivalents at End of Period	$	774		$	—		$	—		$	724		$	50

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2013

Summary of Income Taxes

For the three and nine months ended September30, 2013, Tronox Limited was the public parent registered under the laws of the State of Western Australia. For the three months ended September30, 2012 and from June15, 2012 through September30, 2012, Tronox Limited was the public parent; however, prior to June15, 2012, Tronox Incorporated was the public parent, a Delaware corporation registered in the United States.

	ThreeMonthsEndedSeptember30,								NineMonthsEndedSeptember30,
	2013			2012				2013				2012
Income tax benefit (provision)	$	(8	)	$	34			$		(10	)	$	100
Income (Loss) before Income Taxes	$	(33	)	$	(35	)		$		(77	)	$	1,129
Effective tax rate		(24	)%		97		%			(13	)%		(9	)%

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Intangible Assets, Net

9 Months Ended

Sep. 30, 2013

Intangible Assets, Net

9. Intangible Assets, Net

The gross cost and accumulated amortization of intangible assets, by major intangible asset category, were as follows:

	September30, 2013
	Gross Cost		Accumulated Amortization			Net
Customer relationships	$	294	$	(54	)	$	240
TiO2 technology		32		(4	)		28
Internal-use software		39		(5	)		34
Other		9		(5	)		4
Total	$	374	$	(68	)	$	306

	December31, 2012
	Gross Cost		Accumulated Amortization			Net
Customer relationships	$	294	$	(39	)	$	255
TiO2 technology		32		(3	)		29
Internal-use software		38		(2	)		36
Other		9		(3	)		6
Total	$	373	$	(47	)	$	326

Amortization expense related to intangible assets for the three months ended September30, 2013 and 2012 was $6 million and $7 million, respectively, and for nine months ended September30, 2013 and 2012 was $20 million and $19 million, respectively.

Estimated future amortization expense related to intangible assets was as follows:

	Future Amortization
2013	$	7
2014		27
2015		26
2016		25
2017		25
Thereafter		196
Total	$	306

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Pension and Other Postretirement Healthcare Benefits - Additional Information (Detail) (Postretirement healthcare plan, USD $) In Millions, unless otherwise specified	9 Months Ended		3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013 Maximum	Sep. 30, 2012 Maximum
Pension Plans Postretirement And Other Employee Benefits [Line Items]
Net periodic cost for postretirement healthcare plans	$ 1	$ 1	$ 1	$ 1

XML

Asset Retirement Obligations - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Asset Retirement Obligations [Line Items]
Environmental rehabilitation trust assets	$ 82	$ 59
Environmental Issue
Asset Retirement Obligations [Line Items]
Environmental rehabilitation trust assets	$ 19	$ 20

XML

Accounts Receivable

9 Months Ended

Sep. 30, 2013

Accounts Receivable

5. Accounts Receivable

Accounts receivable, net of allowance for doubtful accounts, consisted of the following:

	September30, 2013			December31, 2012
Trade receivables	$	358		$	371
Other		16			23
Gross		374			394
Allowance for doubtful accounts		(1	)		(3	)
Net	$	373		$	391

XML

Condensed Consolidated Statements of Equity (Unaudited) (USD $) In Millions	Total	Class A common stock	Class B common stock	Capital in Excess of par Value	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total Shareholders' Equity	Non-controlling Interest	Treasury Shares
Beginning Balance at Dec. 31, 2011	$ 752			$ 579	$ 242	$ (57)	$ 752		$ (12)
Net Income (Loss)	1,229				1,227		1,227	2
Other comprehensive loss	47					34	34	13
Share-based compensation	2			2			2
Tronox Incorporated warrants exercised	1			1			1
Class A and Class B dividends declared	(32)				(32)		(32)
Fair value of noncontrolling interest on Transaction Date	233							233
Merger consideration paid	(193)			(193)			(193)
Issuance of Tronox Limited shares	1,370			1,370			1,370
Tronox Limited Class A shares repurchased	(326)			(326)			(326)
Shares purchased for the Employee Participation Program	(15)			(15)			(15)
Issuance of Tronox Limited shares in share-split		1			(1)
Tronox Incorporated share-based compensation	20			27			20		(7)
Tronox Incorporated shares vested/cancelled				(19)					19
Ending Balance at Sep. 30, 2012	3,088	1		1,426	1,436	(23)	2,840	248
Beginning Balance at Dec. 31, 2012	2,882	1		1,429	1,314	(95)	2,649	233
Net Income (Loss)	(87)				(119)		(119)	32
Other comprehensive loss	(205)					(148)	(148)	(57)
Share-based compensation	16			16			16
Tronox Incorporated warrants exercised	1			1			1
Class A and Class B dividends declared	(86)				(86)		(86)
Ending Balance at Sep. 30, 2013	$ 2,521	$ 1	$ 0	$ 1,446	$ 1,109	$ (243)	$ 2,313	$ 208

XML

Pension and Other Postretirement Healthcare Benefits - Components of Net Periodic Pension and Postretirement Healthcare Cost (Detail) (Retirement Plans, USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Retirement Plans
Net periodic cost:
Service cost	$ 1	$ 1	$ 4	$ 2
Interest cost	5	5	15	16
Expected return on plan assets	(5)	(5)	(15)	(15)
Net amortization of actuarial loss	1		2
Total net periodic cost	$ 2	$ 1	$ 6	$ 3

XML

Inventories - Net of Allowance for Obsolete Inventories and Supplies (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013		Dec. 31, 2012
Inventory Disclosure [Abstract]
Raw materials	$ 184		$ 221
Work-in-process	68		99
Finished goods	344	[1]	477	[1]
Materials and supplies, net	138	[2]	117	[2]
Total	$ 734		$ 914

[1] Includes inventory on consignment to others of approximately $47 million and $42 million at September 30, 2013 and December 31, 2012, respectively.

[2] Materials and supplies consist of processing chemicals, maintenance supplies and spare parts, which will be consumed directly and indirectly in the production of the Company’s products.

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Guarantor Condensed Consolidated Financial Statements (Tables)

9 Months Ended

Sep. 30, 2013

Schedule of Guarantor Subsidiaries Condensed Consolidating Statements of Income

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three months ended September30, 2013

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	491		$	(61	)	$	—		$	326		$	226
Cost of goods sold		437			(84	)		—			326			195
Gross Margin		54			23			—			—			31
Selling, general and administrative expenses		45			(1	)		2			32			12
Income from Operations		9			24			(2	)		(32	)		19
Interest and debt expense		(32	)		—			137			(159	)		(10	)
Other income (expense)		(10	)		(44	)		—			(3	)		37
Equity in earnings of subsidiary		—			135			(135	)		—			—
Income (Loss) before Income Taxes		(33	)		115			—			(194	)		46
Income tax benefit (provision)		(8	)		—			(50	)		52			(10	)
Net Income (Loss)		(41	)		115			(50	)		(142	)		36
Income attributable to noncontrolling interest		8			—			—			8			—
Net Income (Loss) attributable to Tronox Limited	$	(49	)	$	115		$	(50	)	$	(150	)	$	36

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Nine Months ended September30, 2013

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	1,486		$	(256	)	$	—		$	994		$	748
Cost of goods sold		1,350			(256	)		—			968			638
Gross Margin		136			—			—			26			110
Selling, general and administrative expenses		137			(3	)		11			98			31
Income from Operations		(1	)		3			(11	)		(72	)		79
Interest and debt expense		(94	)		—			410			(483	)		(21	)
Other income (expense)		18			(44	)		1			5			56
Equity in earnings of subsidiary		—			391			(391	)		—			—
Income (Loss) before Income Taxes		(77	)		350			9			(550	)		114
Income tax benefit (provision)		(10	)		—			(128	)		143			(25	)
Net Income (Loss)		(87	)		350			(119	)		(407	)		89
Income attributable to noncontrolling interest		32			—			—			32			—
Net Income (Loss) attributable to Tronox Limited	$	(119	)	$	350		$	(119	)	$	(439	)	$	89

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three months ended September30, 2012

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	487		$	(46	)	$	—		$	321		$	212
Cost of goods sold		444			(28	)		—			271			201
Gross Margin		43			(18	)		—			50			11
Selling, general and administrative expenses		60			(1	)		1			49			11
Income from Operations		(17	)		(17	)		(1	)		1			—
Interest and debt expense		(18	)		—			137			(158	)		3
Other income (expense)		—			—			—			(5	)		5
Equity in earnings of subsidiary		—			102			(102	)		—			—
Income (Loss) before Income Taxes		(35	)		85			34			(162	)		8
Income tax benefit (provision)		34			—			(36	)		60			10
Net Income (Loss)		(1	)		85			(2	)		(102	)		18
Income attributable to noncontrolling interest		2			—			—			2			—
Net Income (Loss) attributable to Tronox Limited	$	(3	)	$	85		$	(2	)	$	(104	)	$	18

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Nine months ended September30, 2012

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	1,350		$	(96	)	$	—		$	1,048		$	398
Cost of goods sold		1,025			(82	)		—			770			337
Gross Margin		325			(14	)		—			278			61
Selling, general and administrative expenses		207			(3	)		39			148			23
Income from Operations		118			(11	)		(39	)		130			38
Interest and debt expense		(40	)		—			—			(18	)		(22	)
Other income (expense)		(4	)		37			160			(171	)		(30	)
Gain on bargain purchase		1,055			—			1,055			—			—
Equity in earnings of subsidiary		—			1,092			(1,094	)		2			—
Income (Loss) before Income Taxes		1,129			1,118			82			(57	)		(14	)
Income tax benefit (provision)		100			—			(32	)		119			13
Net Income (Loss)		1,229			1,118			50			62			(1	)
Income attributable to noncontrolling interest		2			—			—			2			—
Net Income (Loss) attributable to Tronox Limited	$	1,227		$	1,118		$	50		$	60		$	(1	)

Schedule of Guarantor Subsidiaries Condensed Consolidating Statements of Comprehensive Income

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three months ended September30, 2013

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations		Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	(41	)	$	115	$	(50	)	$	(142	)	$	36
Other Comprehensive Income (Loss):
Foreign currency translation adjustments		(5	)		—		—			—			(5	)
Amortization of actuarial losses, net of taxes		1			—		—			2			(1	)
Other comprehensive income (loss)		(4	)		—		—			2			(6	)
Total comprehensive income (loss)		(45	)		115		(50	)		(140	)		30
Comprehensive income (loss) attributable to noncontrolling interest:
Net income		8			—		—			8			—
Foreign currency translation adjustments		(6	)		—		—			(6	)		—
Comprehensive income (loss) attributable to noncontrolling interest		2			—		—			2			—
Comprehensive income (loss) attributable to Tronox Limited	$	(47	)	$	115	$	(50	)	$	(142	)	$	30

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Nine Months ended September30, 2013

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations		Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	(87	)	$	350	$	(119	)	$	(407	)	$	89
Other Comprehensive Income (Loss):
Foreign currency translation adjustments		(206	)		—		—			—			(206	)
Amortization of actuarial losses, net of taxes		1			—		—			2			(1	)
Other comprehensive income (loss)		(205	)		—		—			2			(207	)
Total comprehensive income (loss)		(292	)		350		(119	)		(405	)		(118	)
Comprehensive income (loss) attributable to noncontrolling interest:
Net income		32			—		—			32			—
Foreign currency translation adjustments		(57	)		—		—			(57	)		—
Comprehensive income (loss) attributable to noncontrolling interest		(25	)		—		—			(25	)		—
Comprehensive income (loss) attributable to Tronox Limited	$	(267	)	$	350	$	(119	)	$	(380	)	$	(118	)

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three months ended September30, 2012

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations		Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	(1	)	$	85	$	(2	)	$	(102	)	$	18
Other Comprehensive Income:
Foreign currency translation adjustments		14			—		—			—			14
Other comprehensive income		14			—		—			—			14
Total comprehensive income		13			85		(2	)		(102	)		32
Comprehensive income attributable to noncontrolling interest:
Income attributable to noncontrolling interest		2			—		—			2			—
Foreign currency translation adjustments		3			—		—			3			—
Comprehensive income attributable to noncontrolling interest		5			—		—			5			—
Comprehensive income (loss) attributable to Tronox Limited	$	8		$	85	$	(2	)	$	(107	)	$	32

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Nine months ended September30, 2012

(Unaudited)

(Millions of U.S. dollars)

	Consolidated		Eliminations		Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	1,229	$	1,118	$	50	$	62		$	(1	)
Other Comprehensive Income (Loss):
Foreign currency translation adjustments		47		19		—		(2	)		30
Retirement and postretirement plans adjustments, net of tax		—		—		—		(17	)		17
Deferred Tax		—		—		—		(3	)		3
Other comprehensive income (loss)		47		19		—		(22	)		50
Total comprehensive income		1,276		1,137		50		40			49
Comprehensive income attributable to noncontrolling interest:
Income attributable to noncontrolling interest		2		—		—		2			—
Foreign currency translation adjustments		13		—		—		13			—
Comprehensive income attributable to noncontrolling interest		15		—		—		15			—
Comprehensive income attributable to Tronox Limited	$	1,261	$	1,137	$	50	$	25		$	49

Schedule of Guarantor Subsidiaries Condensed Consolidating Balance Sheets

GUARANTOR CONDENSED CONSOLIDATED BALANCE SHEETS

As of September30, 2013

(Unaudited)

(Millions of U.S. dollars)

	Consolidated		Eliminations				Parent Company				Guarantor Subsidiaries				Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	$	1,457	$	—		$		339		$		934		$		184
Investment in subsidiaries		—		(998	)			(1,012	)			1,553				457
Property, plant and equipment, net		1,276		—				—				716				560
Mineral leaseholds, net		1,269		—				—				730				539
Other assets		1,783		(9,275	)			6,422				2,397				2,239
Total Assets	$	5,785	$	(10,273	)	$		5,749		$		6,330		$		3,979
Liabilities and Equity
Long-term debt	$	2,386	$	—		$		—		$		901		$		1,485
Other liabilities		878		(9,224	)			1,426				8,085				591
Total Liabilities		3,264		(9,224	)			1,426				8,986				2,076
Total Equity		2,521		(1,049	)			4,323				(2,656	)			1,903
Total Liabilities and Equity	$	5,785	$	(10,273	)	$		5,749		$		6,330		$		3,979

GUARANTOR CONDENSED CONSOLIDATED BALANCE SHEETS

As of December31, 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
Property, plant and equipment, net		1,423		—			—			747			676
Mineral leaseholds, net		1,439		—			—			796			643
Other assets		1,933		(8,300	)		6,044			2,582			1,607
Total Assets	$	5,511	$	(9,895	)	$	5,955		$	5,967		$	3,484
Liabilities and Equity
Long-term debt	$	1,605	$	—		$	—		$	902		$	703
Other liabilities		1,024		(8,248	)		1,442			7,111			719
Total Liabilities		2,629		(8,248	)		1,442			8,013			1,422
Total 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

Schedule of Guarantor Subsidiaries Condensed Consolidating Statements of Cash Flows

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months ended September30, 2013

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Cash Flows from Operating Activities
Net income (loss)	$	(87	)	$	350		$	(119	)	$	(407	)	$	89
Other		297			(350	)		10			1,302			(665	)
Cash provided by (used in) operating activities		210			—			(109	)		895			(576	)
Cash Flows from Investing Activities:
Capital expenditures		(104	)		—			—			(43	)		(61	)
Cash used in investing activities		(104	)		—			—			(43	)		(61	)
Cash Flows from Financing Activities
Repayments of debt		(185	)		—			—			—			(185	)
Proceeds from borrowings		945			—			—			—			945
Debt issuance costs		(29	)		—			—			—			(29	)
Dividends paid		(86	)		—			(86	)		—			—
Proceeds from the conversion of warrants		1			—			1			—			—
Cash provided by (used in) financing activities		646			—			(85	)		—			731
Effects of Exchange Rate Changes on Cash and Cash Equivalents		(11	)		—			—			—			(11	)
Net Increase (Decrease) in Cash and Cash Equivalents		741			—			(194	)		852			83
Cash and Cash Equivalents at Beginning of Period		716			—			533			82			101
Cash and Cash Equivalents at End of Period	$	1,457		$	—		$	339		$	934		$	184

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months ended September30, 2012

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Cash Flows from Operating Activities
Net income (loss)	$	1,229		$	1,118		$	50		$	62		$	(1	)
Gain on bargain purchase		(1,055	)		—			(1,055	)		—			—
Other		(99	)		(1,118	)		1,441			154			(576	)
Cash provided by (used in) operating activities		75			—			436			216			(577	)
Cash Flows from Investing Activities:
Capital expenditures		(91	)		—			—			(61	)		(30	)
Cash received in acquisition of mineral sands business, net of cash paid		114			—			114			—			—
Cash provided by (used in) investing activities		23			—			114			(61	)		(30	)
Cash Flows from Financing Activities
Reductions of debt		(583	)		—			—			(481	)		(102	)
Proceeds from borrowings		1,690			—			—			943			747
Debt issuance costs		(20	)		—			—			—			(20	)
Paid dividends		(32	)		—			(32	)		—			—
Merger consideration		(193	)		—			(193	)		—			—
ClassA ordinary share repurchases		(326	)		—			(326	)		—			—
Proceeds from conversion of warrants		1			—			1			—			—
Shares purchased for the Employee Participation Program		(15	)		—			—			—			(15	)
Cash provided by (used in) financing activities		522			—			(550	)		462			610
Effects of Exchange Rate Changes on Cash and Cash Equivalents		—			—			—			—			—
Net Increase (Decrease) in Cash and Cash Equivalents		620			—			—			617			3
Cash and Cash Equivalents at Beginning of Period		154			—			—			107			47
Cash and Cash Equivalents at End of Period	$	774		$	—		$	—		$	724		$	50

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Income Taxes - Summary of Income Taxes (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract]
Income tax benefit (provision)	$ (8)	$ 34	$ (10)	$ 100
Income (Loss) before Income Taxes	$ (33)	$ (35)	$ (77)	$ 1,129
Effective tax rate	(24.00%)	97.00%	(13.00%)	(9.00%)

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Inventories (Tables)

9 Months Ended

Sep. 30, 2013

Inventories, Net of Allowance for Obsolete Inventories and Supplies

Inventories consisted of the follows:

	September30, 2013		December31, 2012
Raw materials	$	184	$	221
Work-in-process		68		99
Finished goods (1)		344		477
Materials and supplies, net (2)		138		117
Total	$	734	$	914

(1	)	Includes inventory on consignment to others of approximately $47million and $42million at September30, 2013 and December31, 2012, respectively.
(2	)	Materials and supplies consist of processing chemicals, maintenance supplies and spare parts, which will be consumed directly and indirectly in the production of the Company’s products.

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Guarantor Condensed Consolidated Financial Statements - Schedule of Condensed Consolidated Statement of Cash Flows (Detail) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash Flows from Operating Activities
Net Income (Loss)	$ (87)	$ 1,229
Gain on bargain purchase		(1,055)
Other	297	(99)
Cash provided by (used in) operating activities	210	75
Cash Flows from Investing Activities
Capital expenditures	(104)	(91)
Cash received in acquisition of minerals sands business, net of cash paid		114
Cash used in investing activities	(104)	23
Cash Flows from Financing Activities
Reductions of debt		(583)
Repayments of debt	(185)	(583)
Proceeds from borrowings	945	1,690
Debt issuance costs	(29)	(20)
Merger consideration		(193)
Dividends paid	(86)	(32)
Class A ordinary share repurchases, including commissions paid		(326)
Proceeds from conversion of warrants	1	1
Shares purchased for the Employee Participation Program		(15)
Cash provided by (used in) financing activities	646	522
Effects of Exchange Rate Changes on Cash and Cash Equivalents	(11)
Net Increase (Decrease) in Cash and Cash Equivalents	741	620
Cash and Cash Equivalents at Beginning of Period	716	154
Cash and Cash Equivalents at End of Period	1,457	774
Eliminations
Cash Flows from Operating Activities
Net Income (Loss)	350	1,118
Other	(350)	(1,118)
Cash Flows from Financing Activities
Effects of Exchange Rate Changes on Cash and Cash Equivalents
Parent Company
Cash Flows from Operating Activities
Net Income (Loss)	(119)	50
Gain on bargain purchase		(1,055)
Other	10	1,441
Cash provided by (used in) operating activities	(109)	436
Cash Flows from Investing Activities
Cash used in investing activities		114
Cash Flows from Financing Activities
Merger consideration		(193)
Dividends paid	(86)	(32)
Class A ordinary share repurchases, including commissions paid		(326)
Proceeds from conversion of warrants	1	1
Cash provided by (used in) financing activities	(85)	(550)
Effects of Exchange Rate Changes on Cash and Cash Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents	(194)
Cash and Cash Equivalents at Beginning of Period	533
Cash and Cash Equivalents at End of Period	339
Guarantor Subsidiaries
Cash Flows from Operating Activities
Net Income (Loss)	(407)	62
Other	1,302	154
Cash provided by (used in) operating activities	895	216
Cash Flows from Investing Activities
Capital expenditures	(43)	(61)
Cash used in investing activities	(43)	(61)
Cash Flows from Financing Activities
Reductions of debt		(481)
Proceeds from borrowings		943
Cash provided by (used in) financing activities		462
Effects of Exchange Rate Changes on Cash and Cash Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents	852	617
Cash and Cash Equivalents at Beginning of Period	82	107
Cash and Cash Equivalents at End of Period	934	724
Non-Guarantor Subsidiaries
Cash Flows from Operating Activities
Net Income (Loss)	89	(1)
Gain on bargain purchase
Other	(665)	(576)
Cash provided by (used in) operating activities	(576)	(577)
Cash Flows from Investing Activities
Capital expenditures	(61)	(30)
Cash used in investing activities	(61)	(30)
Cash Flows from Financing Activities
Reductions of debt		(102)
Repayments of debt	(185)
Proceeds from borrowings	945	747
Debt issuance costs	(29)	(20)
Merger consideration
Dividends paid
Class A ordinary share repurchases, including commissions paid
Proceeds from conversion of warrants
Shares purchased for the Employee Participation Program		(15)
Cash provided by (used in) financing activities	731	610
Effects of Exchange Rate Changes on Cash and Cash Equivalents	(11)
Net Increase (Decrease) in Cash and Cash Equivalents	83	3
Cash and Cash Equivalents at Beginning of Period	101	47
Cash and Cash Equivalents at End of Period	$ 184	$ 50

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Guarantor Condensed Consolidated Financial Statements - Schedule of Guarantor Subsidiaries Condensed Consolidating Statements of Income (Detail) (USD $) In Millions, unless otherwise specified	1 Months Ended	3 Months Ended				9 Months Ended
	Jun. 15, 2012	Sep. 30, 2013		Sep. 30, 2012		Sep. 30, 2013		Sep. 30, 2012
Parent Company Only Financial Information [Line Items]
Net Sales		$ 491	[1]	$ 487	[1]	$ 1,486	[1]	$ 1,350	[1]
Cost of goods sold		437		444		1,350		1,025
Gross Margin		54		43		136		325
Selling, general and administrative expenses		45		60		137		207
Income from Operations		9		(17)		(1)		118
Interest and debt expense		(32)		(18)		(94)		(40)
Other income (expense)		(10)				18		(4)
Gain on bargain purchase	205							1,055
Income (Loss) before Income Taxes		(33)		(35)		(77)		1,129
Income tax benefit (provision)		(8)		34		(10)		100
Net Income (Loss)		(41)		(1)		(87)		1,229
Net income attributable to noncontrolling interest		8		2		32		2
Net Income (Loss) attributable to Tronox Limited		(49)		(3)		(119)		1,227
Eliminations
Parent Company Only Financial Information [Line Items]
Net Sales		(61)		(46)		(256)		(96)
Cost of goods sold		(84)		(28)		(256)		(82)
Gross Margin		23		(18)				(14)
Selling, general and administrative expenses		(1)		(1)		(3)		(3)
Income from Operations		24		(17)		3		(11)
Other income (expense)		(44)				(44)		37
Equity in earnings of subsidiary		135		102		391		1,092
Income (Loss) before Income Taxes		115		85		350		1,118
Net Income (Loss)		115		85		350		1,118
Net income attributable to noncontrolling interest
Net Income (Loss) attributable to Tronox Limited		115		85		350		1,118
Parent Company
Parent Company Only Financial Information [Line Items]
Selling, general and administrative expenses		2		1		11		39
Income from Operations		(2)		(1)		(11)		(39)
Interest and debt expense		137		137		410
Other income (expense)						1		160
Gain on bargain purchase								1,055
Equity in earnings of subsidiary		(135)		(102)		(391)		(1,094)
Income (Loss) before Income Taxes				34		9		82
Income tax benefit (provision)		(50)		(36)		(128)		(32)
Net Income (Loss)		(50)		(2)		(119)		50
Net income attributable to noncontrolling interest
Net Income (Loss) attributable to Tronox Limited		(50)		(2)		(119)		50
Guarantor Subsidiaries
Parent Company Only Financial Information [Line Items]
Net Sales		326		321		994		1,048
Cost of goods sold		326		271		968		770
Gross Margin				50		26		278
Selling, general and administrative expenses		32		49		98		148
Income from Operations		(32)		1		(72)		130
Interest and debt expense		(159)		(158)		(483)		(18)
Other income (expense)		(3)		(5)		5		(171)
Equity in earnings of subsidiary								2
Income (Loss) before Income Taxes		(194)		(162)		(550)		(57)
Income tax benefit (provision)		52		60		143		119
Net Income (Loss)		(142)		(102)		(407)		62
Net income attributable to noncontrolling interest		8		2		32		2
Net Income (Loss) attributable to Tronox Limited		(150)		(104)		(439)		60
Non-Guarantor Subsidiaries
Parent Company Only Financial Information [Line Items]
Net Sales		226		212		748		398
Cost of goods sold		195		201		638		337
Gross Margin		31		11		110		61
Selling, general and administrative expenses		12		11		31		23
Income from Operations		19				79		38
Interest and debt expense		(10)		3		(21)		(22)
Other income (expense)		37		5		56		(30)
Gain on bargain purchase
Income (Loss) before Income Taxes		46		8		114		(14)
Income tax benefit (provision)		(10)		10		(25)		13
Net Income (Loss)		36		18		89		(1)
Net income attributable to noncontrolling interest
Net Income (Loss) attributable to Tronox Limited		$ 36		$ 18		$ 89		$ (1)

[1] Net sales by geographic region, principally based on country of production

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Shareholders' Equity - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	1 Months Ended				9 Months Ended		12 Months Ended
	Sep. 04, 2013	Aug. 06, 2013	May 07, 2013	Feb. 19, 2013	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Class Of Warrant Or Right [Line Items]
Dividend declared date		Aug. 06, 2012	May 07, 2013	Feb. 19, 2013
Dividend paid date		Sep. 04, 2013	May 28, 2013	Mar. 20, 2013
Dividends paid	$ 29				$ 86	$ 32
Cash receivable per share under warrant					$ 12.50
Warrants outstanding					841,302
Term of warrants from the date of issue					7 years
Expiry date of warrants					Feb. 14, 2018
Additional shares issued in stock split					4
Increase in value of shares					1
Number of additional repurchased shares							12,626,400
Average price of additional repurchased shares							$ 25.84
Cost of additional repurchased shares							326
Non-cash loss from realization of cumulative translation adjustments					10
Maximum
Class Of Warrant Or Right [Line Items]
Split ratio approved by board					5
Increase in value of shares					$ 1
Minimum
Class Of Warrant Or Right [Line Items]
Split ratio approved by board					1
Series A Warrants
Class Of Warrant Or Right [Line Items]
Exercise price per share					60.01		62.13
Warrants outstanding					357,564	364,819
Series B Warrants
Class Of Warrant Or Right [Line Items]
Exercise price per share					66.23		68.56
Warrants outstanding					465,461
Class A Common Stock
Class Of Warrant Or Right [Line Items]
Common Stock Dividends Per Share Declared		$ 0.25	$ 0.25	$ 0.25
Class B common stock
Class Of Warrant Or Right [Line Items]
Common Stock Dividends Per Share Declared		$ 0.25	$ 0.25	$ 0.25

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Share-Based Compensation - Assumptions Used in Calculating Options Granted (Detail) (USD $)	1 Months Ended
	Aug. 31, 2012		Jul. 31, 2012		Jun. 26, 2012		Jun. 06, 2012		Jan. 02, 2012		Sep. 03, 2013 Successor Tronox Limited Management Equity Incentive Plan Stock Options		Mar. 11, 2013 Successor Tronox Limited Management Equity Incentive Plan Stock Options		Feb. 25, 2013 Successor Tronox Limited Management Equity Incentive Plan Stock Options
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Number of options granted	7,257		15,808		135,895		150,000		22,330		37,328		8,238		1,544,872
Fair market value and exercise price	$ 25.79	[1]	$ 23.17	[1]	$ 25.90	[1]	$ 30.45	[2]	$ 24.60	[2]	$ 21.94	[1]	$ 21.49	[1]	$ 19.09	[1]
Risk-free interest rate	0.85%	[3]	0.83%	[3]	0.97%	[3]	0.94%	[3]	1.97%	[3]	2.10%	[4]	1.19%	[4]	1.04%	[4]
Expected dividend yield	3.88%		4.32%		3.86%		0.00%		0.00%		4.56%		4.65%		5.24%
Expected volatility	56.00%		56.00%		55.00%		55.00%		49.00%		56.00%		56.00%		56.00%
Maturity (years)	10 years		10 years		10 years						10 years		10 years		10 years
Expected term (years)	6 years		6 years		6 years		10 years		10 years		6 years		6 years		6 years
Per-unit fair value of options granted	$ 9.51		$ 8.21		$ 9.43		$ 15.64		$ 14.78		$ 7.92		$ 7.48		$ 6.28

[1] The adjusted closing price of Class A Shares, New York Stock Exchange symbol TROX, on the grant date

[2] The adjusted closing price of Class A Shares, New York Stock Exchange symbol TROX, on the grant date.

[3] The risk-free interest rate was based on U.S. Treasury Strips available with maturity period consistent with expected life assumption.

[4] The risk-free interest rate was based on U.S. Treasury Strips available with maturity period consistent with expected life assumption

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Debt - Scheduled Maturities of Company's Long-Term Debt (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Debt Disclosure [Abstract]
2013	$ 5
2014	18
2015	18
2016	15
2017	15
Thereafter	2,344
Total	2,415
Remaining accretion of discount associated with the Term Loan	(11)	(6)
Total debt	$ 2,404	$ 1,615

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Intangible Assets, Net - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense related to intangible assets	$ 6	$ 7	$ 20	$ 19

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Income Taxes - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	1 Months Ended	3 Months Ended		9 Months Ended
	Jun. 15, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract]
Percentage of Australian statutory rate		30.00%		30.00%
Percentage of U.S statutory rate			35.00%		35.00%
Income in foreign jurisdictions tax rate					35.00%
Gain on bargain purchase	$ 205				$ 1,055

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Asset Retirement Obligations

9 Months Ended

Sep. 30, 2013

Asset Retirement Obligations

12. Asset Retirement Obligations

To the extent a legal obligation exists, an asset retirement obligation (“ARO”) is recorded at its estimated fair value, and accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. Fair value is measured using expected future cash outflows discounted at the Company’s credit-adjusted risk-free interest rate. The Company classifies accretion expense related to asset retirement obligations as a production cost, which is included in “Cost of goods sold” on the unaudited Condensed Consolidated Statements of Operations.

The changes in AROs were as follows:

		Three Months Ended September 30,					Nine Months Ended September 30,
		2013		2012		2013				2012
Beginning balance	$	103	$	96	$	113			$	30
Additions		—		—		2				6
Accretion expense		1		1		5				2
Settlements/payments		1		—		(2		)		(1	)
Remeasurement/translation		1		2		(12		)		5
Changes in estimates, including cost and timing of cash flows		—		3		—				3
AROs acquired in the acquisition of mineral sands business		—		—		—				57
Ending balance	$	106	$	102	$	106			$	102
Current portion included in accrued liabilities	$	7	$	2	$	7			$	2
Noncurrent portion	$	99	$	100	$	99			$	100

Environmental Rehabilitation Trust

The Company has established an environmental rehabilitation trust in respect of the prospecting and mining operations in South Africa in accordance with applicable regulations. The trustees of the fund are appointed by the Company, and consist of sufficiently qualified Tronox Limited employees capable of fulfilling their fiduciary duties. The environmental rehabilitation trust receives, holds, and invests funds for the rehabilitation or management of environmental impacts associated with mining and exploration activities. The contributions are aimed at providing sufficient funds at date of estimated closure of mining activities to address the rehabilitation and environmental impacts. Funds accumulated for a specific mine or exploration project can only be utilized for the rehabilitation and environmental impacts of that specific mine or project. Currently, the funds are invested in highly liquid, short-term instruments; however, the investment growth strategy has not been finalized. If a mine or exploration project withdraws from the fund for whatever valid reason, the funds accumulated for such mine or exploration project are transferred to a similar fund approved by management. At September30, 2013 and December31, 2012, the environmental rehabilitation trust assets were $19 million and $20 million, respectively, which were recorded in “Other long-term assets” on the unaudited Condensed Consolidated Balance Sheets.

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Mineral Leaseholds, Net

9 Months Ended

Sep. 30, 2013

Mineral Leaseholds, Net

8. Mineral Leaseholds, Net

Mineral leaseholds, net of accumulated depletion, consisted of the following:

	September30, 2013			December31, 2012
Mineral leaseholds	$	1,412		$	1,502
Less accumulated depletion		(143	)		(63	)
Net	$	1,269		$	1,439

Depletion expense related to mineral leaseholds for the three months ended September30, 2013 and 2012 was $42 million and $19 million, respectively, and for nine months ended September30, 2013 and 2012 was $84 million and $24 million, respectively.

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Debt - Deferred Debt Issuance Costs and Related Amortization Expense (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Debt Instrument [Line Items]
Balance	$ 59		$ 59
Amortization Expense	1	2	5	8
Term Loan
Debt Instrument [Line Items]
Original Deferred Debt Issuance Cost	29		29
Balance	27		27
Amortization Expense	1		2
Notes
Debt Instrument [Line Items]
Original Deferred Debt Issuance Cost	18		18
Balance	16		16
Amortization Expense			1
Term Facility
Debt Instrument [Line Items]
Original Deferred Debt Issuance Cost	17		17
Balance	10		10
Amortization Expense		1	1	3
Other
Debt Instrument [Line Items]
Original Deferred Debt Issuance Cost	8		8
Balance	6		6
Amortization Expense		$ 1	$ 1	$ 5

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Shareholders Equity

9 Months Ended

Sep. 30, 2013

Shareholders’ Equity

15. Shareholders’ Equity

The changes in outstanding shares for the nine months ended September30, 2013 were as follows:

Tronox Limited Class A Shares outstanding:
Balance at December31, 2012	62,103,989
Shares issued for share-based compensation	73,456
Shares issued for warrants exercised	81,052
Shares issued for options exercised	50,000
Balance at September30, 2013	62,308,497
Tronox Limited Class B Shares outstanding:
Balance at December31, 2012	51,154,280
Balance at September30, 2013	51,154,280

Dividends Declared

On August6, 2013, the Board declared a quarterly dividend of $0.25 per share to holders of our ClassA Shares and Class B Shares at the close of business on August19, 2013, totaling $29 million, which was paid on September4, 2013. On May7, 2013, the Board declared a quarterly dividend of $0.25 per share which was paid on May28, 2013 to holders of ClassA Shares and Class B Shares at close of business on May20, 2013. On February19, 2013, the Board declared a quarterly dividend of $0.25 per share which was paid on March20, 2013 to holders of our ClassA Shares and Class B Shares at close of business on March6, 2013. During the nine months ended September30, 2013, the Company paid dividends of $86 million.

Liquidation of a Subsidiary

On September 12, 2013, the Company completed the liquidation of the Zurich branch of Tronox Luxembourg S.a.r.l. In accordance with Accounts Standard Board (“ASC”) 830, Foreign Currency Matters, the Company recognized a non-cash loss from the realization of cumulative translation adjustments of $10 million, which was recorded in “Other income (expense)” on the unaudited Condensed Consolidated Statements of Operations.

Warrants

Prior to the Transaction, Tronox Incorporated had issued SeriesA warrants and SeriesB warrants (collectively, the “Tronox Incorporated Warrants”). In connection with the Transaction, and pursuant to the terms of the Tronox Incorporated Warrant Agreement, Tronox Limited entered into an amended and restated warrant agreement, dated as of the Transaction Date, whereby the holders of the Tronox Limited Warrants are entitled to purchase one ClassA Share and receive $12.50 in cash at the initial exercise prices of $62.13 for each SeriesA Warrant (the “Series A Warrants”) and $68.56 for each SeriesB Warrant (the “Series B Warrants”, collectively with the Series A Warrants, the “Warrants”). On the Transaction Date, there were 841,302 Warrants outstanding. The Warrants have a seven-year term from the date initially issued and will expire on February14, 2018. A holder may exercise the Warrants by paying the applicable exercise price in cash or on a cashless basis. The Warrants are freely transferable by the holder thereof.

In connection with the share split (see below), holders of the Warrants are entitled to purchase five ClassA Shares and receive $12.50 in cash. At September30, 2013, the exercise price, adjusted for dividends paid, was $60.01 for each SeriesA Warrant and $66.23 for each SeriesB Warrants. At September30, 2013, there were 357,564 Series A Warrants and 465,461 Series B Warrants outstanding.

Share Split Declared

On June26, 2012, the Board approved a 5-to-1 share split for holders of its ClassA Shares and Class B Shares at the close of business on July20, 2012, by issuance of four additional shares for each share of the same class. As a result of the share split, the Company recorded an increase to “Tronox Limited ClassA ordinary shares” of $1 million and an increase to “Tronox Limited Class B ordinary shares” of less than $1 million, with corresponding decreases to “Retained earnings” on the unaudited Condensed Consolidated Balance Sheets.

Share Repurchases

On June26, 2012, the Board authorized the repurchase of ClassA Shares in open market transactions. During 2012, the Company repurchased 12,626,400 ClassA Shares, affected for the 5-for-1 share split, at an average price of $25.84 per share, inclusive of commissions, for a total cost of $326 million. Repurchased shares were subsequently cancelled in accordance with Australian law. On September27, 2012, the Company announced the successful completion of its share repurchase program.

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Derivative Instruments

9 Months Ended

Sep. 30, 2013

Derivative Instruments

13. Derivative Instruments

The Company manufactures and markets its products in a number of countries throughout the world and, as a result, is exposed to changes in foreign currency exchange rates, particularly in South Africa, Australia and The Netherlands. Costs in South Africa and Australia are primarily incurred in local currencies, while the majority of revenues are in U.S. dollars. In Europe, the majority of revenues and costs are in the local currency. This leaves the Company exposed to movements in the South African Rand and the Australian dollar versus the U.S. dollar. In order to manage this risk, the Company has entered into currency forward contracts to buy and sell foreign currencies as “economic hedges” for these foreign currency transactions. 

At September 30, 2013, the Company had currency forward contracts to exchange an aggregate $17 million for an equivalent value of South African Rand and a currency forward contract to exchange R6 million for an equivalent value of U.S. dollars. These contracts mature at various dates in the fourth quarter of 2013.

The Company’s currency forward contracts are not designated for hedge accounting treatment under ASC 815, Derivatives and Hedging, (“ASC 815”). As such, changes in the fair value are recorded in “Other income (expense)” on the unaudited Condensed Consolidated Statements of Operations.

The fair values of derivative instruments at September 30, 2013 were as follows:

		Fair Value
Currency forward contracts	Other current assets	$	1

Gains (losses) recorded in “Other income (expense)” on the unaudited Condensed Consolidated Statements of Operations consisted of the following:

	ThreeMonthsEndedSeptember30,				NineMonthsEndedSeptember30,
	2013		2012		2013			2012
Currency forward contracts	$	1	$	—		$	1		$	—

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Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Oct. 31, 2013 Class A common stock	Oct. 31, 2013 Class B common stock
Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3
Trading Symbol	TROX
Entity Registrant Name	Tronox Ltd
Entity Central Index Key	0001530804
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		113,494,096	113,494,096

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Earnings (Loss) Per Share - Computation of Basic and Diluted Earnings Per Share From Continuing Operations (Detail) (USD $) In Millions, except Share data in Thousands, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2013		Sep. 30, 2012		Sep. 30, 2013		Sep. 30, 2012
Numerator – Basic and Diluted
Net Income (Loss)	$ (41)		$ (1)		$ (87)		$ 1,229
Less: Income attributable to noncontrolling interest	(8)		(2)		(32)		(2)
Less: Dividends declared							(32)
Undistributed earnings (loss)	(49)		(3)		(119)		1,195
Percentage allocated to ordinary shares	100.00%		100.00%		100.00%		99.40%
Undistributed earnings allocated to ordinary shares	(49)		(3)		(119)		1,188
Class A and Class B dividends declared					(86)		(32)
Earnings (loss) available to ordinary shares	$ (49)		$ (3)		$ (119)		$ 1,220
Denominator – Basic and Diluted
Weighted-average ordinary shares	113,459		122,352		113,389		94,193
Add: Effect of Dilutive Securities:
Restricted stock							66
Warrants							2,638
Options							6
Denominator - Dilutive			122,352				96,903
Earnings (loss) per Share :
Basic earnings (loss) per Share	$ (0.43)	[1]	$ (0.03)	[1]	$ (1.05)	[1]	$ 12.95	[1]
Diluted earnings (loss) per Share	$ (0.43)	[1]	$ (0.03)	[1]	$ (1.05)	[1]	$ 12.59	[1]

[1] The basic and diluted earnings (loss) per share amounts were computed from exact, not rounded, income and share information

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2013

Commitments and Contingencies

14. Commitments and Contingencies

Purchase Commitments — At September30, 2013, purchase commitments were $42 million for the remainder of 2013, $163 million for 2014, $79 million for 2015, $40 million for 2016, $33 million for 2017 and $123 million thereafter.

Letters of Credit — At September30, 2013, the Company had outstanding letters of credit, bank guarantees and performance bonds of approximately $45 million, of which $25 million in letters of credit were issued under the UBS Revolver and $18 million were bank guarantees issued by ABSA.

Legal — During 2013, the Western Australia Office of State Revenue (the “OSR”) reviewed their technical position on the imposition of stamp duty on the transfer of Tronox Incorporated’s shares related to Kerr-McGee’s restructuring in 2002 and from the share transfer related to the spinoff of Tronox Incorporated from Kerr-McGee in 2005. On October20, 2012, the OSR rendered its assessment of $5 million, comprised of a primary stamp duty liability of $3 million and penalty tax of $2 million. As required by law, the Company paid the entire amount of the assessment in January 2013.On October 11, 2013, the OSR denied the Company’s objection to the interest penalty. The Company is assessing its future options with respect to this matter.

Environmental Contingencies — In accordance with ASC 450, Contingencies, the Company recognizes a loss and records an undiscounted liability when litigation has commenced or a claim or an assessment has been asserted or, based on available information, commencement of litigation or assertion of a claim or assessment is probable, and the associated costs can be estimated. It is not possible for the Company to reliably estimate the amount and timing of all future expenditures related to environmental matters because, among other reasons, environmental laws and regulations, as well as enforcement policies and remediation levels, are continually changing, and the outcome of court proceedings, alternative dispute resolution proceedings (including mediation) and discussions with regulatory agencies are inherently uncertain.

The Company believes that it has reserved adequately for the probable and reasonably estimable costs of known contingencies. There is no environmental litigation, claim or assessment that has been asserted nor is there any probability of an assessment or a claim for which the Company has not recorded a liability. However, additions to the reserves may be required as additional information is obtained that enables the Company to better estimate its liabilities. The Company cannot reliably estimate the amount of future additions to the reserves at this time. In certain situations, reserves may be probable but not estimable. Additionally, sites may be identified in the future where the Company could have potential liability for environmental related matters. If a site is identified, the Company will evaluate to determine what reserve, if any, should be established.

Other Matters — From time to time, the Company may be party to a number of legal and administrative proceedings involving environmental and/or other matters in various courts or agencies. These proceedings, individually and in the aggregate, may have a material adverse effect on the Company. These proceedings may be associated with facilities currently or previously owned, operated or used by the Company and/or its predecessors, some of which may include claims for personal injuries, property damages, cleanup costs and other environmental matters. Current and former operations of the Company may also involve management of regulated materials, which are subject to various environmental laws and regulations including the Comprehensive Environmental Response Compensation and Liability Act (“CERCLA”), the Resource Conservation and Recovery Act (the “RCRA”) or state equivalents. Similar environmental laws and regulations and other requirements exist in foreign countries in which the Company operates.

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Accrued Liabilities - Accrued Liabilities (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Statement Of Financial Position [Abstract]
Taxes other than income taxes	$ 57	$ 58
Employee-related costs and benefits	47	45
Sales rebates	19	13
Unfavorable sales contracts	12	64
Interest	7	22
Other	7	7
Total	$ 149	$ 209

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Intangible Assets, Net - Estimated Future Amortization Expense Related to Intangible Assets (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Goodwill And Intangible Assets Disclosure [Abstract]
2013	$ 7
2014	27
2015	26
2016	25
2017	25
Thereafter	196
Total	$ 306	$ 326

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Earnings (Loss) Per Share - Additional Information (Detail) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2013
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Number of stock options that were anti-dilutive	523,970	2,100,611
Average exercise price of stock options that were anti-dilutive	$ 25.52	$ 20.63
Warrants		841,302
Restricted Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Number of stock options that were anti-dilutive		304,770
Average exercise price of stock options that were anti-dilutive		$ 21.08
Series A Warrants
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Warrants	364,819	357,564
Exercise Price	$ 61.84	$ 60.01
Class B Warrant
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Warrants	474,425	465,461
Exercise Price	$ 68.24	$ 66.23