Segment Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

Chemours’ operations are classified into three reportable segments based on similar economic characteristics, the nature of products and production processes, end-use markets, channels of distribution and regulatory environment. Chemours’ reportable segments are Titanium Technologies, Fluoroproducts and Chemical Solutions. Corporate costs and certain legal and environmental expenses that are not aligned with the reportable segments and foreign exchange gains and losses are reflected in Corporate and Other.

Segment sales include transfers to another reportable segment. Certain products are transferred between segments on a basis intended to reflect, as nearly as practicable, the market value of the products. These product transfers were limited and were not significant for each of the periods presented. Adjusted EBITDA - or Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization, is the primary measure of segment profitability used by the 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 postretirement employee benefit costs, which represent the components of net periodic pension costs (income) excluding service cost component.

• exchange gains (losses),

• employee separation, asset-related charges and other charges, net,

• asset impairments, 

• gains (losses) on sale of business or assets, and

• other items not considered indicative of our ongoing operational performance and expected to occur infrequently.

The tables presented below reflect the reclassification of certain corporate costs, certain legal and environmental expenses that are not aligned with our reportable segments, and foreign exchange gains and losses from our reportable segments into Corporate and Other. All periods presented reflect the current definition of Adjusted EBITDA.

Three months ended June 30,	Titanium Technologies		Fluoroproducts		Chemical Solutions		Corporate and Other			Total
2016
Net sales to external customers	$	596	$	573	$	214	$	—		$	1,383
Adjusted EBITDA	111		105		11		(40		)	187
Depreciation and amortization	32		25		8		8			73
2015
Net sales to external customers	$	642	$	588	$	278	$	—		$	1,508
Adjusted EBITDA	91		54		4		(22		)	127
Depreciation and amortization	32		21		14		—			67

Six months ended June 30,	Titanium Technologies		Fluoroproducts		Chemical Solutions		Corporate and Other			Total
2016
Net sales to external customers	$	1,117	$	1,104	$	459	$	—		$	2,680
Adjusted EBITDA	166		190		21		(62		)	315
Depreciation and amortization	54		49		20		16			139
2015
Net sales to external customers	$	1,187	$	1,140	$	544	$	—		$	2,871
Adjusted EBITDA	184		129		5		(46		)	272
Depreciation and amortization	63		42		26		—			131

The following is a tabular reconciliation of consolidated income (loss) before income taxes to Adjusted EBITDA:

	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
(Loss) income before income taxes	$	(41	)	$	(18	)	$	28		$	40
Interest expense, net	50			28			106			28
Depreciation and amortization	73			67			139			131
Non-operating pension and other postretirement employee benefit (income) costs	(7		)	8			(14		)	15
Exchange losses (gains)	14			(19		)	20			(3		)
Restructuring charges	9			61			27			61
Asset related charges 1	63			—			63			—
Loss (gain) on sale of assets or business	1			—			(88		)	—
Transaction costs 2	12			—			15			—
Legal and other charges 3	13			—			19			—
Adjusted EBITDA	$	187		$	127		$	315		$	272

¹  Includes the $58 asset impairment in connection with the sale of the Sulfur business (See Note 6) and other asset write-offs in the Chemical Solutions segment.

²  Includes accounting, legal and bankers transaction fees incurred related to the Company's strategic initiatives, which includes pre-sale transaction cost incurred in connection with the sale of the C&D and Sulfur businesses (see Note 6).

³  Includes litigation settlements, water treatment accruals related to PFOA, and lease termination charges.