Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

23. Segment Information

Chemours operates through its three reportable segments, which were organized based on their similar economic characteristics, the nature of products and production processes, end-use markets, channels of distribution, and regulatory environments: Titanium Technologies, Thermal & Specialized Solutions, and Advanced Performance Materials. The Company’s Performance Chemicals and Intermediates business is included in Other Segment. Corporate costs and certain legal and environmental expenses, stock-based compensation expenses, and foreign exchange gains and losses arising from the remeasurement of balances in currencies other than the functional currency of the Company’s legal entities are reflected in Corporate and Other.

Adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA") is the primary measure of segment profitability used by the Company’s Chief Operating Decision Maker ("CODM") and is defined as income (loss) before income taxes, excluding the following:

•interest expense, depreciation, and amortization;

•non-operating pension and other post-retirement employee benefit costs, which represents the non-service cost component of net periodic pension costs;

•exchange (gains) losses included in other income (expense), net;

•restructuring, asset-related, and other charges;

•(gains) losses on sales of assets and businesses; and,

•other items not considered indicative of the Company’s ongoing operational performance and expected to occur infrequently, including Qualified Spend reimbursable by DuPont and/or Corteva as part of the Company’s cost-sharing agreement under the terms of the MOU that were previously excluded from Adjusted EBITDA.

The following table sets forth certain summary financial information for the Company’s reportable segments for the periods presented.

	Titanium Technologies		Thermal & Specialized Solutions		Advanced Performance Materials		Other Segment		Segment Total
Three Months Ended March 31, 2023
Net sales to external customers	$	632	$	486	$	388	$	30	$	1,536
Adjusted EBITDA		70		185		84		10		349
Depreciation and amortization		34		16		21		2		73
Three Months Ended March 31, 2022
Net sales to external customers	$	928	$	425	$	385	$	26	$	1,764
Adjusted EBITDA		206		174		88		—		468
Depreciation and amortization		32		14		21		2		69
Total Assets
March 31, 2023	$	2,522	$	1,346	$	1,791	$	128	$	5,787
December 31, 2022		2,384		1,238		1,742		124		5,488

Corporate and Other depreciation and amortization expense amounted to $6 and $5 for the three months ended March 31, 2023 and 2022, respectively. Corporate and Other total assets amounted to $1,837 and $2,152 at March 31, 2023 and December 31, 2022, respectively.

The following table sets forth a reconciliation of Segment Adjusted EBITDA to the Company’s consolidated income (loss) before income taxes for the three months ended March 31, 2023 and 2022.

	Three Months Ended March 31,
	2023			2022
Segment Adjusted EBITDA	$	349		$	468
Corporate and Other expenses (excluding items below)		(45	)		(65	)
Interest expense, net		(42	)		(41	)
Depreciation and amortization		(79	)		(74	)
Non-operating pension and other post-retirement employee benefit income		—			1
Exchanges losses, net		(7	)		—
Restructuring, asset-related, and other charges (1)		(16	)		(16	)
Gain on sales of assets and businesses		—			1
Qualified spend recovery (2)		14			14
Legal and environmental charges (3,4)		(1	)		(8	)
Income before income taxes	$	173		$	280

(1)In 2023, restructuring, asset-related, and other charges primarily includes charges related to the Company's decision to abandon its implementation of a new ERP software platform. In 2022, includes asset charges and write-offs resulting from the conflict between Russia and Ukraine and the Company’s decision to suspend its business with Russian entities. Refer to "Note 4 - Restructuring, Asset-related, and Other charges" for further details.

(2)Qualified spend recovery represents costs and expenses that were previously excluded from Adjusted EBITDA, reimbursable by DuPont and/or Corteva as part of the Company's cost-sharing agreement under the terms of the MOU which is discussed in further detail in "Note 16 – Commitments and Contingent Liabilities".

(3)Legal charges pertains to litigation settlements, PFOA drinking water treatment accruals, and other legal charges. Refer to “Note 16 – Commitments and Contingent Liabilities” for further details.

(4)Environmental charges pertains to management’s assessment of estimated liabilities associated with certain non-recurring environmental remediation expenses at various sites. Refer to “Note 16 – Commitments and Contingent Liabilities” for further details.