Segment Information (Tables)

3 Months Ended

Mar. 31, 2022

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

	Titanium Technologies		Thermal & Specialized Solutions		Advanced Performance Materials		Other Segment		Segment Total
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

Three Months Ended March 31, 2021
Net sales to external customers	$	723	$	304	$	333	$	76	$	1,436
Adjusted EBITDA		166		90		58		9		323
Depreciation and amortization		33		16		23		5		77

Total Assets
March 31, 2022	$	2,414	$	1,230	$	1,683	$	147	$	5,474
December 31, 2021		2,318		1,124		1,621		149		5,212

Reconciliation of Segment Adjusted EBITDA from Segments to Consolidated Net Income (Loss) Before Income Taxes

The following table sets forth a reconciliation of Segment Adjusted EBITDA to the Company’s consolidated net income (loss) before income taxes for the three months ended March 31, 2022 and 2021.

	Three Months Ended March 31,
	2022			2021
Segment Adjusted EBITDA	$	468		$	323
Corporate and Other expenses (excluding items below)		(65	)		(55	)
Interest expense, net		(41	)		(49	)
Depreciation and amortization		(74	)		(83	)
Non-operating pension and other post-retirement employee benefit income		1			1
Exchanges losses, net		—			(8	)
Restructuring, asset-related, and other charges (1)		(16	)		5
Gain on sales of assets and businesses		1			—
Natural disasters and catastrophic events (2)		—			(16	)
Transaction costs		—			(4	)
Qualified spend recovery (3)		14			—
Legal and environmental charges (4,5)		(8	)		(13	)
Income before income taxes	$	280		$	101

(1)

In 2022, restructuring, asset related, and other charges primarily 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. In 2021, restructuring, asset-related, and other charges primarily includes a net $9 gain resulting from contract termination with a third-party services provider at the Company’s previously owned Mining Solutions facility in Gomez Palacio, Durango, Mexico.

(2)

In 2021, natural disasters and catastrophic events pertains to the total cost of plant repairs and utility charges in excess of historical averages caused by Winter Storm Uri.

(3)

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".

(4)

Legal charges pertains to litigation settlements, PFOA drinking water treatment accruals, and other legal charges which are discussed in further detail in “Note 16 – Commitments and Contingent Liabilities”.

(5)

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.