Segment Information

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segment Information

25. Segment Information

Chemours operates through its three principal 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: Thermal & Specialized Solutions, Titanium Technologies, and Advanced Performance Materials. The Company’s Performance Chemicals and Intermediates business is included in Other Segment.

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 (income) costs;

•exchange (gains) losses included in other income, 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 certain litigation related and environmental charges and 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.

	Thermal & Specialized Solutions		Titanium Technologies		Advanced Performance Materials		Other Segment		Segment Total
Three Months Ended September 30, 2024
Net sales to external customers	$	460	$	679	$	348	$	14	$	1,501
Adjusted EBITDA		141		85		39		3
Depreciation and amortization		13		35		23		1		72
Three Months Ended September 30, 2023
Net sales to external customers	$	436	$	690	$	343	$	18	$	1,487
Adjusted EBITDA		162		69		68		2
Depreciation and amortization		15		34		21		1		71
	Thermal & Specialized Solutions		Titanium Technologies		Advanced Performance Materials		Other Segment		Segment Total
Nine Months Ended September 30, 2024
Net sales to external customers	$	1,422	$	1,940	$	985	$	41	$	4,388
Adjusted EBITDA		453		235		113		8
Depreciation and amortization		39		99		66		3		207
Nine Months Ended September 30, 2023
Net sales to external customers	$	1,445	$	2,029	$	1,118	$	74	$	4,666
Adjusted EBITDA		561		226		233		18
Depreciation and amortization		47		101		64		5		217
Total Assets
September 30, 2024	$	1,539	$	2,303	$	1,829	$	94	$	5,765
December 31, 2023		1,283		2,226		1,833		96		5,438

Corporate and Other depreciation and amortization expense amounted to $6 and $16 for the three and nine months ended September 30, 2024, respectively, and $5 and $16 for the three and nine months ended September 30, 2023, respectively. Corporate and Other total assets amounted to $1,698 and $2,813 at September 30, 2024 and December 31, 2023, respectively.

The following table sets forth a reconciliation of Segment Adjusted EBITDA to the Company’s consolidated (loss) income before income taxes for the three and nine months ended September 30, 2024 and 2023.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Thermal & Specialized Solutions	$	141		$	162		$	453		$	561
Titanium Technologies		85			69			235			226
Advanced Performance Materials		39			68			113			233
Other Segment		3			2			8			18
Segment Adjusted EBITDA		268			301			809			1,038
Corporate and Unallocated
Corporate expenses (1)		(57	)		(54	)		(187	)		(164	)
Unallocated Items:
Interest expense, net		(69	)		(55	)		(197	)		(145	)
Depreciation and amortization		(78	)		(76	)		(223	)		(233	)
Non-operating pension and other post-retirement employee benefit income (cost)		2			(1	)		4			(1	)
Exchange losses, net		—			(9	)		(6	)		(21	)
Restructuring, asset-related, and other charges (Note 5)		(43	)		(127	)		(51	)		(142	)
Goodwill impairment charge (Note 11)		(56	)		—			(56	)		—
Inventory write-offs (2)		—			(36	)		—			(36	)
Loss on extinguishment of debt		—			(1	)		—			(1	)
Gain on sales of assets and businesses, net (Note 3)		—			106			3			106
Transaction costs (3)		(3	)		(7	)		(15	)		(7	)
Qualified spend recovery (4)		7			11			22			43
Litigation-related charges (5)		(1	)		(31	)		15			(675	)
Environmental charges (6)		—			(8	)		—			(9	)
(Loss) income before income taxes	$	(30	)	$	13		$	118		$	(247	)

(1)Includes corporate costs and certain legal and environmental expenses, and stock-based compensation expenses excluding unallocated items as listed above.

(2)Inventory write-offs for the three and nine months ended September 30, 2023 represents write-off of certain raw materials and stores inventories from the Kuan Yin, Taiwan plant closure, which was not allocated in the measurement of Titanium Technologies segment profitability used by the CODM.

(3)For the three and nine months ended September 30, 2024, transaction costs includes $3 and $15, respectively, of third-party costs related to the Titanium Technologies Transformation Plan, which was not allocated in the measurement of Titanium Technologies segment profitability used by the CODM. For the three and nine months ended September 30, 2023, transaction costs represents costs associated with the New Senior Secured Credit Facilities entered into during the third quarter of 2023 which is discussed in further detail in "Note 16 – Debt".

(4)Qualified spend recovery represents costs and expenses that were previously excluded from the determination of segment Adjusted EBITDA, reimbursable by DuPont and/or Corteva as part of the Company's cost-sharing agreement under the terms of the MOU. Terms of the MOU are discussed in further detail in "Note 18 – Commitments and Contingent Liabilities".

(5)Litigation-related charges pertains to litigation settlements, PFOA drinking water treatment accruals, and other related legal fees. For the three and nine months ended September 30, 2024, litigation-related charges primarily includes $28 and $44, respectively, of benefits from insurance recoveries, along with the $29 accrual associated with the Ohio MDL recorded during the third quarter. For the nine months ended September 30, 2023, litigation-related charges includes the $592 accrual related to the United States Public Water System Class Action Suit Settlement plus $24 of third-party legal fees directly related to the settlement, $58 for other PFAS litigation matters, and $1 of other litigation matters.

(6)Environmental charges pertains to management's assessment of estimated liabilities associated with certain non-recurring environmental remediation expenses at various sites. Refer to "Note 18 – Commitments and Contingent Liabilities" for further details.