Commission File Number 001-38176 |
(Exact name of Registrant as specified in its charter) England and Wales (Jurisdiction of incorporation or organization) Titanium House, Hanzard Drive, Wynyard Park Stockton-On-Tees, TS22 5FD, United Kingdom (Address of principal executive offices) |
Page | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
Condensed Consolidated Statements of Operations | ||||||||
Condensed Consolidated Statements of Comprehensive Income (Loss) | ||||||||
Condensed Consolidated Statements of Equity | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(In millions, except par value) | September 30, 2022 | December 31, 2021 | |||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents(a) | $ | $ | |||||||||
Accounts receivable (net of allowance for doubtful accounts of $ | |||||||||||
Accounts receivable from affiliates | |||||||||||
Inventories(a) | |||||||||||
Prepaid expenses | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net(a) | |||||||||||
Operating lease right-of-use assets, net(a) | |||||||||||
Intangible assets, net(a) | |||||||||||
Investment in unconsolidated affiliates | |||||||||||
Deferred income taxes | |||||||||||
Other noncurrent assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable(a) | $ | $ | |||||||||
Accounts payable to affiliates | |||||||||||
Accrued liabilities(a) | |||||||||||
Current operating lease liability | |||||||||||
Current portion of debt(a) | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Operating lease liability | |||||||||||
Other noncurrent liabilities | |||||||||||
Noncurrent payable to affiliates | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Notes 11 and 12) | |||||||||||
Equity | |||||||||||
Ordinary shares $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total Venator Materials PLC shareholders' equity | |||||||||||
Noncontrolling interest in subsidiaries | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
(Dollars in millions, except per share amounts) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Trade sales, services and fees, net | $ | $ | $ | $ | |||||||||||||||||||
Cost of goods sold | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Restructuring, impairment, and plant closing and transition costs | |||||||||||||||||||||||
Other operating (income) expense, net | ( | ( | |||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Operating (loss) income | ( | ( | ( | ||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Interest income | |||||||||||||||||||||||
Other income, net | |||||||||||||||||||||||
(Loss) income before income taxes | ( | ( | ( | ||||||||||||||||||||
Income tax expense | ( | ( | ( | ( | |||||||||||||||||||
Net (loss) income | ( | ( | ( | ||||||||||||||||||||
Net income attributable to noncontrolling interests | ( | ( | ( | ||||||||||||||||||||
Net (loss) income attributable to Venator | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Per Share Data: | |||||||||||||||||||||||
(Loss) income attributable to Venator Materials PLC ordinary shareholders, basic | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
(Loss) income attributable to Venator Materials PLC ordinary shareholders, diluted | $ | ( | $ | ( | $ | $ | ( |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net (loss) income | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | ( | ( | |||||||||||||||||||
Pension and other postretirement benefits adjustments | ( | ||||||||||||||||||||||
Hedging instruments | ( | ( | |||||||||||||||||||||
Adjustments to equity method investments | |||||||||||||||||||||||
Total other comprehensive loss, net of tax | ( | ( | ( | ( | |||||||||||||||||||
Comprehensive loss | ( | ( | ( | ( | |||||||||||||||||||
Comprehensive income attributable to noncontrolling interest | ( | ( | ( | ||||||||||||||||||||
Comprehensive loss attributable to Venator | $ | ( | $ | ( | $ | ( | $ | ( |
Total Venator Materials PLC Equity | ||||||||||||||||||||||||||||||||||||||
Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Noncontrolling Interest in Subsidiaries | Total | |||||||||||||||||||||||||||||||||
(In millions) | Shares | Amount | ||||||||||||||||||||||||||||||||||||
Balance, January 1, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||
Activity related to stock plans | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||
Activity related to stock plans | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||
Activity related to stock plans | 1 | — | — | — | — | |||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | ( | $ | ( | $ | $ |
Total Venator Materials PLC Equity | ||||||||||||||||||||||||||||||||||||||
Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Noncontrolling Interest in Subsidiaries | Total | |||||||||||||||||||||||||||||||||
(In millions) | Shares | Amount | ||||||||||||||||||||||||||||||||||||
Balance, January 1, 2021 | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||
Activity related to stock plans | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Balance, March 31, 2021 | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||
Activity related to stock plans | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||
Activity related to stock plans | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Balance, September 30, 2021 | $ | $ | $ | ( | $ | ( | $ | $ |
Nine months ended September 30, | |||||||||||
(Dollars in millions) | 2022 | 2021 | |||||||||
Operating Activities: | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Deferred income taxes | |||||||||||
Noncash restructuring and impairment charges | |||||||||||
Noncash legal settlement | ( | ||||||||||
Noncash (gain) loss on foreign currency transactions | ( | ||||||||||
Noncash loss on disposal of businesses/assets, net | ( | ||||||||||
Other, net | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Inventories | ( | ||||||||||
Prepaid expenses | ( | ( | |||||||||
Other current assets | ( | ||||||||||
Other noncurrent assets | ( | ( | |||||||||
Accounts payable | |||||||||||
Accrued liabilities | ( | ( | |||||||||
Other noncurrent liabilities | ( | ||||||||||
Net cash (used in) provided by operating activities | ( | ||||||||||
Investing Activities: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Cash received from unconsolidated affiliates | |||||||||||
Investment in unconsolidated affiliates | ( | ( | |||||||||
Proceeds from sale of business/assets | |||||||||||
Other investing activities | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Financing Activities: | |||||||||||
Net proceeds (repayments) on short-term debt | ( | ||||||||||
Proceeds from notes payable | |||||||||||
Repayment of third-party debt | ( | ( | |||||||||
Proceeds from the termination of cross currency swap contracts | |||||||||||
Dividends paid to noncontrolling interests | ( | ( | |||||||||
Other financing activities | ( | ||||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Effect of exchange rate changes on cash | ( | ( | |||||||||
Net change in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Supplemental cash flow information: | |||||||||||
Cash paid for interest excluding hedging activity | $ | $ | |||||||||
Cash paid for income taxes | |||||||||||
Supplemental disclosure of noncash activities: | |||||||||||
Capital expenditures included in accounts payable as of September 30, 2022 and 2021, respectively. | $ | $ | |||||||||
Three months ended September 30, 2022 | Nine months ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||
Titanium Dioxide | Performance Additives | Total | Titanium Dioxide | Performance Additives | Total | |||||||||||||||||||||||||||||||||
Europe | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
North America | ||||||||||||||||||||||||||||||||||||||
APAC | ||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | $ | $ | $ | $ | $ |
For the Three Months Ended September 30, 2021 | For the Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||
Titanium Dioxide | Performance Additives | Total | Titanium Dioxide | Performance Additives | Total | |||||||||||||||||||||||||||||||||
Europe | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
North America | ||||||||||||||||||||||||||||||||||||||
APAC | ||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | $ | $ | $ | $ | $ |
Three months ended September 30, 2022 | For the Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||
Titanium Dioxide | Performance Additives | Total | Titanium Dioxide | Performance Additives | Total | |||||||||||||||||||||||||||||||||
TiO2 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Color Pigments | ||||||||||||||||||||||||||||||||||||||
Functional Additives | ||||||||||||||||||||||||||||||||||||||
Timber Treatment | ||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | $ | $ | $ | $ | $ |
For the Three Months Ended September 30, 2021 | For the Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||
Titanium Dioxide | Performance Additives | Total | - | Performance Additives | Total | |||||||||||||||||||||||||||||||||
TiO2 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Color Pigments | ||||||||||||||||||||||||||||||||||||||
Functional Additives | ||||||||||||||||||||||||||||||||||||||
Timber Treatment | ||||||||||||||||||||||||||||||||||||||
Water Treatment 1 | ||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | $ | $ | $ | $ | $ |
September 30, 2022 | December 31, 2021 | ||||||||||
Raw materials and supplies | $ | $ | |||||||||
Work in process | |||||||||||
Finished goods | |||||||||||
Total | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenues | $ | $ | $ | $ | |||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Net cash provided by operating activities |
Workforce reductions(1) | Other restructuring costs | Total(2) | |||||||||||||||
Accrued restructuring costs as of December 31, 2021 | $ | $ | $ | ||||||||||||||
2022 charges for 2018 and prior initiatives | |||||||||||||||||
2022 charges for 2019 initiatives | |||||||||||||||||
2022 payments for 2018 and prior initiatives | ( | ( | ( | ||||||||||||||
2022 payments for 2019 initiatives | ( | ( | |||||||||||||||
2022 payments for 2020 initiatives | ( | ( | |||||||||||||||
Foreign currency effect on liability balance | ( | ( | |||||||||||||||
Accrued restructuring costs as of September 30, 2022 | $ | $ | $ |
September 30, 2022 | December 31, 2021 | ||||||||||
2018 initiatives and prior | $ | $ | |||||||||
2019 initiatives | |||||||||||
2020 initiatives | |||||||||||
Total | $ | $ |
Titanium Dioxide | Performance Additives | Total | |||||||||||||||
Accrued restructuring costs as of December 31, 2021 | $ | $ | $ | ||||||||||||||
2022 charges for 2018 and prior initiatives | |||||||||||||||||
2022 charges for 2019 initiatives | |||||||||||||||||
2022 payments for 2018 and prior initiatives | ( | ( | |||||||||||||||
2022 payments for 2019 initiatives | ( | ( | |||||||||||||||
2022 payments for 2020 initiatives | ( | ( | |||||||||||||||
Foreign currency effect on liability balance | ( | ( | |||||||||||||||
Accrued restructuring costs as of September 30, 2022 | $ | $ | $ | ||||||||||||||
Current portion of restructuring reserves | $ | ||||||||||||||||
Long-term portion of restructuring reserves | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Cash restructuring charges | $ | $ | ( | $ | $ | ||||||||||||||||||
Accelerated depreciation | |||||||||||||||||||||||
Other plant closure costs | |||||||||||||||||||||||
Total Restructuring, Impairment and Plant Closing and Transition Costs | $ | $ | $ | $ |
September 30, 2022 | December 31, 2021 | ||||||||||
Term Loan Facility due August 2024 | $ | $ | |||||||||
Senior Secured Notes due July 2025 | |||||||||||
Senior Unsecured Notes due July 2025 | |||||||||||
Other | |||||||||||
Total debt | |||||||||||
Less: short-term debt and current portion of long-term debt | |||||||||||
$ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Basic and diluted loss from continuing operations: | |||||||||||||||||||||||
Net (loss) income attributable to Venator Materials PLC ordinary shareholders | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average shares outstanding | |||||||||||||||||||||||
Potential dilutive impact of share-based awards(1) | |||||||||||||||||||||||
Foreign currency translation adjustment(a) | Pension and other postretirement benefits adjustments net of tax(b) | Other comprehensive income of unconsolidated affiliates | Hedging instruments | Total | Amounts attributable to noncontrolling interests | Amounts attributable to Venator | |||||||||||||||||||||||||||||||||||
Beginning balance, January 1, 2022 | $ | ( | $ | ( | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
Other comprehensive (loss) income before reclassifications, gross | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||
Tax expense | |||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss, gross(c) | |||||||||||||||||||||||||||||||||||||||||
Tax expense | |||||||||||||||||||||||||||||||||||||||||
Net current-period other comprehensive (loss) income | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||
Ending balance, September 30, 2022 | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( |
Foreign currency translation adjustment(d) | Pension and other postretirement benefits adjustments net of tax(e) | Other comprehensive income of unconsolidated affiliates | Hedging instruments | Total | Amounts attributable to noncontrolling interests | Amounts attributable to Venator | |||||||||||||||||||||||||||||||||||
Beginning balance, January 1, 2021 | $ | ( | $ | ( | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
Other comprehensive (loss) income before reclassifications, gross | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Tax expense | |||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss, gross(c) | |||||||||||||||||||||||||||||||||||||||||
Tax expense | |||||||||||||||||||||||||||||||||||||||||
Net current-period other comprehensive (loss) income | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Ending balance, September 30, 2021 | $ | ( | $ | ( | $ | ( | $ | $ | ( | $ | $ | ( |
Three months ended September 30, | Nine months ended September 30, | Affected line item in the statement where net income is presented | |||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
Details about Other Comprehensive Loss Components: | |||||||||||||||||||||||||||||
Amortization of pension and other postretirement benefits: | |||||||||||||||||||||||||||||
Actuarial loss | $ | $ | $ | $ | Other income | ||||||||||||||||||||||||
Prior service credit | Other income | ||||||||||||||||||||||||||||
Total before tax | |||||||||||||||||||||||||||||
Income tax expense | Income tax expense | ||||||||||||||||||||||||||||
Total reclassifications for the period, net of tax | $ | $ | $ | $ |
Segment | Product Group | |||||||
Titanium Dioxide | titanium dioxide | |||||||
Performance Additives | functional additives, color pigments, and timber treatment |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Titanium Dioxide | $ | $ | $ | $ | |||||||||||||||||||
Performance Additives | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Adjusted EBITDA(1) | |||||||||||||||||||||||
Titanium Dioxide | $ | ( | $ | $ | $ | ||||||||||||||||||
Performance Additives | |||||||||||||||||||||||
Corporate and other | ( | ( | ( | ( | |||||||||||||||||||
Total | ( | ||||||||||||||||||||||
Reconciliation of adjusted EBITDA to net (loss) income: | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Interest income | |||||||||||||||||||||||
Income tax expense | ( | ( | ( | ( | |||||||||||||||||||
Depreciation and amortization | ( | ( | ( | ( | |||||||||||||||||||
Net income attributable to noncontrolling interests | |||||||||||||||||||||||
Other adjustments: | |||||||||||||||||||||||
Gain (loss) on disposition of business/assets | ( | ||||||||||||||||||||||
Certain legal expenses/settlements | ( | ( | |||||||||||||||||||||
Amortization of pension and postretirement actuarial losses | ( | ( | ( | ( | |||||||||||||||||||
Net plant incident credits (costs) | ( | ( | |||||||||||||||||||||
Restructuring, impairment and plant closing and transition costs | ( | ( | ( | ( | |||||||||||||||||||
Net (loss) income | $ | ( | $ | ( | $ | $ | ( |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||||||||||||||||||||||||
Revenues | $ | 506 | $ | 557 | (9 | %) | $ | 1,807 | $ | 1,677 | 8 | % | |||||||||||||||||||||||
Cost of goods sold | 508 | 511 | (1 | %) | 1,677 | 1,529 | 10 | % | |||||||||||||||||||||||||||
Operating expenses(4) | 23 | 42 | (45 | %) | 95 | 129 | (26 | %) | |||||||||||||||||||||||||||
Restructuring, impairment and plant closing and transition costs | 5 | 35 | (86 | %) | 21 | 60 | (65 | %) | |||||||||||||||||||||||||||
Operating income (loss) | (30) | (31) | (3 | %) | 14 | (41) | NM | ||||||||||||||||||||||||||||
Interest expense, net | (16) | (15) | 7 | % | (44) | (44) | — | % | |||||||||||||||||||||||||||
Other income | 2 | 3 | (33 | %) | 93 | 10 | 830 | % | |||||||||||||||||||||||||||
(Loss) income before income taxes | (44) | (43) | 2 | % | 63 | (75) | NM | ||||||||||||||||||||||||||||
Income tax expense | (4) | (4) | — | % | (18) | (14) | 29 | % | |||||||||||||||||||||||||||
Net (loss) income | (48) | (47) | 2 | % | 45 | (89) | NM | ||||||||||||||||||||||||||||
Reconciliation of net income (loss) to adjusted EBITDA: | |||||||||||||||||||||||||||||||||||
Interest expense, net | 16 | 15 | 7 | % | 44 | 44 | — | % | |||||||||||||||||||||||||||
Income tax expense | 4 | 4 | — | % | 18 | 14 | 29 | % | |||||||||||||||||||||||||||
Depreciation and amortization | 27 | 29 | (7 | %) | 84 | 89 | (6 | %) | |||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | (2) | — | NM | (5) | (2) | (150 | %) | ||||||||||||||||||||||||||||
Other adjustments: | |||||||||||||||||||||||||||||||||||
Loss (gain) on disposition of business/assets | — | — | (1) | 2 | |||||||||||||||||||||||||||||||
Certain legal expenses/settlements | — | 3 | (83) | 4 | |||||||||||||||||||||||||||||||
Amortization of pension and postretirement actuarial losses | 1 | 3 | 2 | 9 | |||||||||||||||||||||||||||||||
Net plant incident (credits) costs | (11) | 6 | (15) | 9 | |||||||||||||||||||||||||||||||
Restructuring, impairment and plant closing and transition costs | 5 | 35 | 21 | 60 | |||||||||||||||||||||||||||||||
Adjusted EBITDA(1) | $ | (8) | $ | 48 | $ | 110 | $ | 140 | |||||||||||||||||||||||||||
Net cash (used in) provided by operating activities | (87) | 2 | NM | ||||||||||||||||||||||||||||||||
Net cash used in investing activities | (55) | (47) | 17 | % | |||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 37 | (12) | NM | ||||||||||||||||||||||||||||||||
Capital expenditures | (48) | (47) | 2 | % |
Three Months Ended | Three Months Ended | ||||||||||
(Dollars in millions, except per share amounts) | September 30, 2022 | September 30, 2021 | |||||||||
Reconciliation of net loss to adjusted net (loss) income attributable to Venator Materials PLC ordinary shareholders: | |||||||||||
Net loss | $ | (48) | $ | (47) | |||||||
Net income attributable to noncontrolling interests | (2) | — | |||||||||
Other adjustments: | |||||||||||
Loss on disposition of business/assets | — | — | |||||||||
Certain legal expenses/settlements | — | 3 | |||||||||
Amortization of pension and postretirement actuarial losses | 1 | 3 | |||||||||
Net plant incident (credits) costs | (11) | 6 | |||||||||
Restructuring, impairment and plant closing and transition costs | 5 | 35 | |||||||||
Income tax adjustments(3) | 19 | 3 | |||||||||
Adjusted net (loss) income attributable to Venator Materials PLC ordinary shareholders(2) | $ | (36) | $ | 3 | |||||||
Weighted-average shares - basic | 108.0 | 107.3 | |||||||||
Weighted-average shares - diluted(5) | 108.0 | 107.5 | |||||||||
Net income (loss) attributable to Venator Materials PLC ordinary shareholders per share: | |||||||||||
Basic | (0.46) | (0.44) | |||||||||
Diluted(5) | (0.46) | (0.44) | |||||||||
Other non-GAAP measures: | |||||||||||
Adjusted net income per share(2): | |||||||||||
Basic | (0.33) | 0.03 | |||||||||
Diluted | (0.33) | 0.03 |
Nine Months Ended | Nine Months Ended | ||||||||||
(Dollars in millions, except per share amounts) | September 30, 2022 | September 30, 2021 | |||||||||
Reconciliation of net income (loss) to adjusted net income attributable to Venator Materials PLC ordinary shareholders: | |||||||||||
Net income (loss) | $ | 45 | $ | (89) | |||||||
Net income attributable to noncontrolling interests | (5) | (2) | |||||||||
Other adjustments: | |||||||||||
(Gain) loss on disposition of business/assets | (1) | 2 | |||||||||
Certain legal expenses/settlements | (83) | 4 | |||||||||
Amortization of pension and postretirement actuarial losses | 2 | 9 | |||||||||
Net plant incident (credits) costs | (15) | 9 | |||||||||
Restructuring, impairment and plant closing and transition costs | 21 | 60 | |||||||||
Income tax adjustments(3) | 21 | 11 | |||||||||
Adjusted net (loss) income attributable to Venator Materials PLC ordinary shareholders(2) | $ | (15) | $ | 4 | |||||||
Weighted-average shares - basic | 107.8 | 107.2 | |||||||||
Weighted-average shares - diluted(5) | 107.9 | 107.5 | |||||||||
Net income (loss) attributable to Venator Materials PLC ordinary shareholders per share: | |||||||||||
Basic | 0.37 | (0.85) | |||||||||
Diluted(5) | 0.37 | (0.85) | |||||||||
Other non-GAAP measures: | |||||||||||
Adjusted net income per share(2): | |||||||||||
Basic | (0.14) | 0.04 | |||||||||
Diluted | (0.14) | 0.04 |
Three Months Ended | Percent Change Favorable (Unfavorable) | ||||||||||||||||
September 30, | |||||||||||||||||
(Dollars in millions) | 2022 | 2021 | |||||||||||||||
Revenues | |||||||||||||||||
Titanium Dioxide | $ | 361 | $ | 430 | (16 | %) | |||||||||||
Performance Additives(3) | 145 | 127 | 14 | % | |||||||||||||
Total | $ | 506 | $ | 557 | (9 | %) | |||||||||||
Adjusted EBITDA | |||||||||||||||||
Titanium Dioxide | $ | (5) | $ | 54 | (109 | %) | |||||||||||
Performance Additives | 9 | 5 | 80 | % | |||||||||||||
4 | 59 | (93 | %) | ||||||||||||||
Corporate and other | (12) | (11) | (9 | %) | |||||||||||||
Total | $ | (8) | $ | 48 | (117 | %) |
Three Months Ended September 30, 2022 vs. 2021 | |||||||||||||||||||||||
Average Selling Price(1) | |||||||||||||||||||||||
Local Currency | Foreign Currency Translation Impact | Mix & Other | Sales Volumes(2) | ||||||||||||||||||||
Period-Over-Period Increase (Decrease) | |||||||||||||||||||||||
Titanium Dioxide | 19 | % | (7 | %) | 1 | % | (29 | %) | |||||||||||||||
Performance Additives | 31 | % | (6 | %) | (3 | %) | (8 | %) |
Nine Months Ended | Percent Change Favorable (Unfavorable) | ||||||||||||||||
September 30, | |||||||||||||||||
(Dollars in millions) | 2022 | 2021 | |||||||||||||||
Revenues | |||||||||||||||||
Titanium Dioxide | $ | 1,357 | $ | 1,259 | 8 | % | |||||||||||
Performance Additives(3) | 450 | 418 | 8 | % | |||||||||||||
Total | $ | 1,807 | $ | 1,677 | 8 | % | |||||||||||
Segment adjusted EBITDA | |||||||||||||||||
Titanium Dioxide | $ | 93 | $ | 130 | (28 | %) | |||||||||||
Performance Additives | 48 | 46 | 4 | % | |||||||||||||
141 | 176 | (20 | %) | ||||||||||||||
Corporate and other | (31) | (36) | 14 | % | |||||||||||||
Total | $ | 110 | $ | 140 | (21 | %) |
Nine Months Ended September 30, 2022 vs. 2021 | |||||||||||||||||||||||||||||
Average Selling Price(1) | |||||||||||||||||||||||||||||
Local Currency | Foreign Currency Translation Impact | Mix & Other | Sales Volumes(2) | Divestitures (3) | |||||||||||||||||||||||||
Period-Over-Period Increase (Decrease) | |||||||||||||||||||||||||||||
Titanium Dioxide | 26 | % | (7 | %) | 1 | % | (12 | %) | — | % | |||||||||||||||||||
Performance Additives | 26 | % | (5 | %) | (1 | %) | (10 | %) | (2) | % | |||||||||||||||||||
(Dollars in millions) | September 30, 2022 | December 31, 2021 | Increase (Decrease) | Percent Change | |||||||||||||||||||
Cash and cash equivalents | $ | 45 | $ | 156 | $ | (111) | (71 | %) | |||||||||||||||
Accounts and notes receivable, net | 339 | 363 | (24) | (7 | %) | ||||||||||||||||||
Accounts receivable from affiliates | 1 | 8 | (7) | (88 | %) | ||||||||||||||||||
Inventories | 596 | 478 | 118 | 25 | % | ||||||||||||||||||
Prepaid expenses | 43 | 23 | 20 | 87 | % | ||||||||||||||||||
Other current assets | 58 | 61 | (3) | (5 | %) | ||||||||||||||||||
Total current assets | $ | 1,082 | $ | 1,089 | $ | (7) | (1 | %) | |||||||||||||||
Accounts payable | 331 | 360 | (29) | (8 | %) | ||||||||||||||||||
Accounts payable to affiliates | 21 | 17 | 4 | 24 | % | ||||||||||||||||||
Accrued liabilities | 108 | 125 | (17) | (14 | %) | ||||||||||||||||||
Current operating lease liability | 5 | 6 | (1) | (17 | %) | ||||||||||||||||||
Current portion of debt | 24 | 5 | 19 | 380 | % | ||||||||||||||||||
Total current liabilities | $ | 489 | $ | 513 | $ | (24) | (5 | %) | |||||||||||||||
Net current assets | $ | 593 | $ | 576 | $ | 17 | 3 | % |
Incorporated by Reference | ||||||||||||||||||||||||||
Exhibit Number | Description | Schedule Form | Exhibit | Filing Date | ||||||||||||||||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||||||||||||||||||||
101.SCH* | XBRL Taxonomy Extension Schema Document | |||||||||||||||||||||||||
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||||||||||||||||||||
101.DEF* | XBRL Taxonomy Definition Linkbase Document | |||||||||||||||||||||||||
101.LAB* | XBRL Taxonomy Extension Labels Linkbase Document | |||||||||||||||||||||||||
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||||||||||||||||||||
104* | The cover page to this Quarterly Report on Form 6-K, formatted in XBRL |
VENATOR MATERIALS PLC (Registrant) | |||||||||||
Date: | November 14, 2022 | By: | /s/ Kurt D. Ogden | ||||||||
Kurt D. Ogden | |||||||||||
Executive Vice President and Chief Financial Officer |
Cover Page |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Cover [Abstract] | |
Document Type | 6-K |
Entity Registrant Name | Venator Materials PLC |
Document Period End Date | Sep. 30, 2022 |
Entity Central Index Key | 0001705682 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) shares in Millions, $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
||
---|---|---|---|---|
Accounts receivable, allowance for doubtful accounts | $ 3 | $ 4 | ||
Ordinary shares, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||
Ordinary shares, authorized (in shares) | 200 | 200 | ||
Ordinary shares, issued (in shares) | 108 | 107 | ||
Ordinary shares, outstanding (in shares) | 108 | 107 | ||
Cash and cash equivalents | [1] | $ 45 | $ 156 | |
Accounts receivable, net | [1] | 339 | 363 | |
Inventories | [1] | 596 | 478 | |
Property, plant and equipment, net | [1] | 693 | 848 | |
Intangible assets, net | [1] | 3 | 11 | |
Accounts payable | [1] | 331 | 360 | |
Accrued liabilities | [1] | 108 | 125 | |
Consolidated VIE's | ||||
Cash and cash equivalents | 5 | 4 | ||
Accounts receivable, net | 9 | 7 | ||
Inventories | 4 | 2 | ||
Property, plant and equipment, net | 3 | 3 | ||
Intangible assets, net | 3 | 5 | ||
Accounts payable | 2 | 3 | ||
Accrued liabilities | $ 2 | $ 3 | ||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Income Statement [Abstract] | ||||
Trade sales, services and fees, net | $ 506 | $ 557 | $ 1,807 | $ 1,677 |
Cost of goods sold | 508 | 511 | 1,677 | 1,529 |
Operating expenses: | ||||
Selling, general and administrative | 36 | 37 | 112 | 116 |
Restructuring, impairment, and plant closing and transition costs | 5 | 35 | 21 | 60 |
Other operating (income) expense, net | (13) | 5 | (17) | 13 |
Total operating expenses | 28 | 77 | 116 | 189 |
Operating (loss) income | (30) | (31) | 14 | (41) |
Interest expense | (20) | (18) | (55) | (53) |
Interest income | 4 | 3 | 11 | 9 |
Other income, net | 2 | 3 | 93 | 10 |
(Loss) income before income taxes | (44) | (43) | 63 | (75) |
Income tax expense | (4) | (4) | (18) | (14) |
Net (loss) income | (48) | (47) | 45 | (89) |
Net income attributable to noncontrolling interests | (2) | 0 | (5) | (2) |
Net (loss) income attributable to Venator | $ (50) | $ (47) | $ 40 | $ (91) |
Per Share Data: | ||||
Income (loss) attributable to Venator Materials PLC ordinary shareholders, basic (in dollars per share) | $ (0.46) | $ (0.44) | $ 0.37 | $ (0.85) |
Income (loss) attributable to Venator Materials PLC ordinary shareholders, diluted (in dollars per share) | $ (0.46) | $ (0.44) | $ 0.37 | $ (0.85) |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (48) | $ (47) | $ 45 | $ (89) |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustment | (101) | (23) | (191) | (30) |
Pension and other postretirement benefits adjustments | 1 | (3) | 3 | 5 |
Hedging instruments | (4) | 5 | (2) | 9 |
Adjustments to equity method investments | 0 | 0 | 2 | 0 |
Total other comprehensive loss, net of tax | (104) | (21) | (188) | (16) |
Comprehensive loss | (152) | (68) | (143) | (105) |
Comprehensive income attributable to noncontrolling interest | (2) | 0 | (5) | (2) |
Comprehensive loss attributable to Venator | $ (154) | $ (68) | $ (148) | $ (107) |
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) shares in Millions, $ in Millions |
Total |
Ordinary Shares |
Additional Paid-in Capital |
Accumulated Deficit |
Accumulated Other Comprehensive Loss |
Noncontrolling Interest in Subsidiaries |
---|---|---|---|---|---|---|
Balance at the beginning of the period (in shares) at Dec. 31, 2020 | 107 | |||||
Balance at the beginning of the period at Dec. 31, 2020 | $ 624 | $ 0 | $ 1,330 | $ (383) | $ (329) | $ 6 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | (20) | (21) | 1 | |||
Other comprehensive (loss) income, net of tax | (7) | (7) | ||||
Dividends paid to noncontrolling interests | (1) | (1) | ||||
Activity related to stock plans | 1 | 1 | ||||
Balance at the end of the period (in shares) at Mar. 31, 2021 | 107 | |||||
Balance at the end of the period at Mar. 31, 2021 | 597 | $ 0 | 1,331 | (404) | (336) | 6 |
Balance at the beginning of the period (in shares) at Dec. 31, 2020 | 107 | |||||
Balance at the beginning of the period at Dec. 31, 2020 | 624 | $ 0 | 1,330 | (383) | (329) | 6 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | (89) | |||||
Other comprehensive (loss) income, net of tax | (16) | |||||
Balance at the end of the period (in shares) at Sep. 30, 2021 | 107 | |||||
Balance at the end of the period at Sep. 30, 2021 | 521 | $ 0 | 1,335 | (474) | (345) | 5 |
Balance at the beginning of the period (in shares) at Mar. 31, 2021 | 107 | |||||
Balance at the beginning of the period at Mar. 31, 2021 | 597 | $ 0 | 1,331 | (404) | (336) | 6 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | (22) | (23) | 1 | |||
Other comprehensive (loss) income, net of tax | 12 | 12 | ||||
Dividends paid to noncontrolling interests | (1) | (1) | ||||
Activity related to stock plans | 2 | 2 | ||||
Balance at the end of the period (in shares) at Jun. 30, 2021 | 107 | |||||
Balance at the end of the period at Jun. 30, 2021 | 588 | $ 0 | 1,333 | (427) | (324) | 6 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | (47) | (47) | 0 | |||
Other comprehensive (loss) income, net of tax | (21) | (21) | ||||
Dividends paid to noncontrolling interests | (1) | (1) | ||||
Activity related to stock plans | 2 | 2 | ||||
Balance at the end of the period (in shares) at Sep. 30, 2021 | 107 | |||||
Balance at the end of the period at Sep. 30, 2021 | 521 | $ 0 | 1,335 | (474) | (345) | 5 |
Balance at the beginning of the period (in shares) at Dec. 31, 2021 | 107 | |||||
Balance at the beginning of the period at Dec. 31, 2021 | 568 | $ 0 | 1,337 | (460) | (314) | 5 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | (2) | (3) | 1 | |||
Other comprehensive (loss) income, net of tax | (20) | (20) | ||||
Dividends paid to noncontrolling interests | (1) | (1) | ||||
Activity related to stock plans | 1 | 1 | ||||
Balance at the end of the period (in shares) at Mar. 31, 2022 | 107 | |||||
Balance at the end of the period at Mar. 31, 2022 | 546 | $ 0 | 1,338 | (463) | (334) | 5 |
Balance at the beginning of the period (in shares) at Dec. 31, 2021 | 107 | |||||
Balance at the beginning of the period at Dec. 31, 2021 | 568 | $ 0 | 1,337 | (460) | (314) | 5 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 45 | |||||
Other comprehensive (loss) income, net of tax | (188) | |||||
Balance at the end of the period (in shares) at Sep. 30, 2022 | 108 | |||||
Balance at the end of the period at Sep. 30, 2022 | 425 | $ 0 | 1,342 | (420) | (502) | 5 |
Balance at the beginning of the period (in shares) at Mar. 31, 2022 | 107 | |||||
Balance at the beginning of the period at Mar. 31, 2022 | 546 | $ 0 | 1,338 | (463) | (334) | 5 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 95 | 93 | 2 | |||
Other comprehensive (loss) income, net of tax | (64) | (64) | ||||
Dividends paid to noncontrolling interests | (2) | (2) | ||||
Activity related to stock plans | 2 | 2 | ||||
Balance at the end of the period (in shares) at Jun. 30, 2022 | 107 | |||||
Balance at the end of the period at Jun. 30, 2022 | 577 | $ 0 | 1,340 | (370) | (398) | 5 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | (48) | (50) | 2 | |||
Other comprehensive (loss) income, net of tax | (104) | (104) | ||||
Dividends paid to noncontrolling interests | (2) | (2) | ||||
Activity related to stock plans | 2 | 2 | ||||
Balance at the end of the period (in shares) at Sep. 30, 2022 | 108 | |||||
Balance at the end of the period at Sep. 30, 2022 | $ 425 | $ 0 | $ 1,342 | $ (420) | $ (502) | $ 5 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Operating Activities: | ||
Net (loss) income | $ 45 | $ (89) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 84 | 89 |
Deferred income taxes | 12 | 3 |
Noncash restructuring and impairment charges | 2 | 7 |
Noncash legal settlement | (10) | 0 |
Noncash (gain) loss on foreign currency transactions | (5) | 4 |
Noncash loss on disposal of businesses/assets, net | (1) | 1 |
Other, net | 9 | 11 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (11) | (79) |
Inventories | (198) | 8 |
Prepaid expenses | (24) | (7) |
Other current assets | (5) | 1 |
Other noncurrent assets | (7) | (42) |
Accounts payable | 38 | 64 |
Accrued liabilities | (10) | (2) |
Other noncurrent liabilities | (6) | 33 |
Net cash (used in) provided by operating activities | (87) | 2 |
Investing Activities: | ||
Capital expenditures | (48) | (47) |
Cash received from unconsolidated affiliates | 44 | 19 |
Investment in unconsolidated affiliates | (53) | (21) |
Proceeds from sale of business/assets | 2 | 6 |
Other investing activities | 0 | (4) |
Net cash used in investing activities | (55) | (47) |
Financing Activities: | ||
Net proceeds (repayments) on short-term debt | 3 | (2) |
Proceeds from notes payable | 23 | 0 |
Repayment of third-party debt | (8) | (4) |
Proceeds from the termination of cross currency swap contracts | 24 | 0 |
Dividends paid to noncontrolling interests | (5) | (3) |
Other financing activities | 0 | (3) |
Net cash provided by (used in) financing activities | 37 | (12) |
Effect of exchange rate changes on cash | (6) | (2) |
Net change in cash and cash equivalents | (111) | (59) |
Cash and cash equivalents at beginning of period | 156 | 220 |
Cash and cash equivalents at end of period | 45 | 161 |
Supplemental cash flow information: | ||
Cash paid for interest excluding hedging activity | 57 | 58 |
Cash paid for income taxes | 5 | 5 |
Supplemental disclosure of noncash activities: | ||
Capital expenditures included in accounts payable as of September 30, 2022 and 2021, respectively. | $ 8 | $ 21 |
Description of Business, Basis of Presentation, and Recent Developments |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business, Basis of Presentation, and Recent Developments | Note 1. Description of Business, Basis of Presentation, and Recent Developments Description of Business Venator became an independent publicly traded company following our IPO and separation from Huntsman Corporation in August 2017. Venator operates in two segments: Titanium Dioxide and Performance Additives. The Titanium Dioxide segment primarily manufactures and sells TiO2, and operates seven TiO2 manufacturing facilities across the globe. The Performance Additives segment manufactures and sells functional additives, color pigments, and timber treatment chemicals. This segment operates 13 manufacturing and processing facilities globally. Basis of Presentation Our unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP" or "U.S. GAAP") and in management’s opinion reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of results of operations, comprehensive loss, financial condition and cash flows for the periods presented. Results for interim periods are not necessarily indicative of those to be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes to consolidated financial statements included in the Annual Report on Form 20-F for the year ended December 31, 2021 for our Company. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the notes to the unaudited condensed consolidated financial statements, all dollar and share amounts in tabulations, except per share amounts, are in millions unless otherwise indicated. Sale of our Iron Oxide Business On November 14, 2022, we entered into a definitive agreement with Cathay Industries to divest the iron oxide business from within the Color Pigments business (the “disposal group”) for an approximate enterprise value of $140 million, consisting of a purchase price of $140 million, less closing indebtedness of $20 million plus primary working capital and closing cash adjustments as of the closing date (approximately $6 million based upon the latest carve out financial statements, dated June 30, 2022), to be paid in cash on March 31, 2023, which is the anticipated closing date. Based on the purchase price of the disposal group and the proceeds from the sale-leaseback transaction, we estimate that we will recognize a pre-tax loss in the amount of $35 million to $45 million in the fourth quarter of 2022 relating to the disposal group, subject to finalization of purchase price adjustments, and we anticipate the sale will result in a decrease in cash taxes for the Company. As of September 30, 2022, these assets were classified as held and used in accordance with ASC 360 because of the perceived uncertainty involved in reaching an agreement and completing a sale as of that date. We evaluated the Color Pigments Business for impairment and concluded the carrying value of the Color Pigments business was recoverable as of September 30, 2022. Sale-Leaseback of our Los Angeles Color Pigments Facility We received proceeds of $42 million, net of $9 million of taxes and other expenses, during the fourth quarter of 2022 as a result of the $51 million sale-leaseback transaction for our color pigments facility located in Los Angeles, California.
|
Recently Issued Accounting Pronouncements |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued Accounting Pronouncements | Note 2. Recently Issued Accounting Pronouncements Accounting Pronouncements Pending Adoption in Future Periods In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848). The amendments in this ASU temporarily simplify the accounting for contract modifications, including hedging relationships, due to the transition from London Interbank Offering Rate ("LIBOR") and other interbank offered rates to alternative reference interest rates. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope, which provided clarifying guidance to ASU 2020-04. Under ASU No. 2021-01, entities can elect not to remeasure contracts at the modification date or reassess a previous accounting determination if certain conditions are met. These ASUs were effective upon issuance and generally can be applied to applicable contract modifications through December 31, 2022. Currently our Term Loan Facility references LIBOR-based rates. Our credit facilities either contain, or will contain, provisions specifying alternative interest rate calculations to be employed when LIBOR ceases to be available as a benchmark. We do not expect a significant impact to our operating results, financial position or cash flows from the transition from LIBOR to alternative reference interest rates, but we will continue to monitor the impact of this transition until it is completed.
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Revenue |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Note 3. Revenue We generate substantially all of our revenues through sales of inventory in the open market and via long-term supply agreements. At contract inception, we assess the goods promised in our contracts and identify a performance obligation for each promise to transfer to the customer a distinct good. In substantially all cases, a contract has a single performance obligation to deliver a promised good to the customer. Revenue is recognized when the performance obligations under the terms of our contracts are satisfied. Generally, this occurs at the time of shipping, at which point the control of the goods transfers to the customer. Further, in determining whether control has transferred, we consider if there is a present right to payment and legal title, along with risks and rewards of ownership having transferred to the customer. Revenue is measured as the amount of consideration we expect to receive in exchange for transferred goods. Sales, value added, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Incidental items that are immaterial in the context of the contract are recognized as expense. We have elected to account for all shipping and handling activities as fulfillment costs. We recognize these costs for shipping and handling when control over products have transferred to the customer as an expense in cost of goods sold. We have also elected to expense commissions when incurred as the amortization period of the commission asset that we would have otherwise recognized is less than one year. The following table disaggregates our revenues by major geographical region for the three and nine months ended September 30, 2022 and 2021:
The following table disaggregates our revenues by major product line for the three and nine months ended September 30, 2022 and 2021:
1 Water treatment business was sold in May 2021. The amount of consideration we receive and revenue we recognize is based upon the terms stated in the sales contract, which may contain variable consideration such as discounts or rebates. We also give our customers a limited right to return products that have been damaged, do not satisfy their specifications, or for other specific reasons. Payment terms on product sales to our customers typically range from 30 days to 90 days. Although certain exceptions exist where standard payment terms are exceeded, these instances are infrequent and do not exceed one year. Discounts are allowed for some customers for early payment or if certain volume commitments are met. As our standard payment terms are less than one year, we have elected to not assess whether a contract has a significant financing component. In order to estimate the applicable variable consideration at the time of revenue recognition, we use historical and current trend information to estimate the amount of discounts, rebates, or returns to which customers are likely to be entitled. Historically, actual discount or rebate adjustments relative to those estimated and accrued at the point of which revenue is recognized have not materially differed.
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | InventoriesInventories are stated at the lower of cost or market, with cost determined using first-in, first-out and average cost methods for different components of inventory. Inventories at September 30, 2022 and December 31, 2021 consisted of the following:
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Variable Interest Entities |
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Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | Note 5. Variable Interest Entities We evaluate our investments and transactions to identify variable interest entities for which we are the primary beneficiary. We hold a variable interest in the following joint ventures for which we are the primary beneficiary: •Pacific Iron Products Sdn Bhd is our 50%-owned joint venture with Coogee Chemicals that manufactures products for Venator. It was determined that the activities that most significantly impact its economic performance are raw material supply, manufacturing and sales. In this joint venture we supply all the raw materials through a fixed cost supply contract, operate the manufacturing facility and market the products of the joint venture to customers. Through a fixed price raw materials supply contract with the joint venture we are exposed to the risk related to the fluctuation of raw material pricing. As a result, we concluded that we are the primary beneficiary. •Viance, LLC ("Viance") is our 50%-owned joint venture with Lanxess. Viance markets timber treatment products for Venator. We have determined that the activity that most significantly impacts Viance’s economic performance is manufacturing. The joint venture sources all of its products through a contract manufacturing arrangement at our Harrisburg, North Carolina facility and we bear a disproportionate amount of working capital risk of loss due to the supply arrangement whereby we control manufacturing on Viance’s behalf. As a result, we concluded that we are the primary beneficiary. Creditors of these entities have no recourse to Venator’s general credit. As the primary beneficiary of these variable interest entities at September 30, 2022, the joint ventures’ assets, liabilities and results of operations are included in Venator’s unaudited condensed consolidated financial statements. The revenues, income before income taxes and net cash provided by operating activities for our variable interest entities for the three and nine months ended September 30, 2022 and 2021 are as follows:
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Restructuring, Impairment, and Plant Closing and Transition Costs |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring, Impairment, and Plant Closing and Transition Costs | Note 6. Restructuring, Impairment, and Plant Closing and Transition Costs Venator has initiated various restructuring programs in an effort to reduce operating costs and maximize operating efficiency. Restructuring Activities Company-wide Restructuring In December 2020, we implemented a plan to decommission certain existing equipment in a section of our Duisburg, Germany titanium dioxide and functional additives manufacturing site. As part of the program, we recorded a restructuring expense of nil for the three and nine months ended September 30, 2022. We recorded a restructuring credit of $5 million and restructuring expense of $10 million for the three and nine months ended September 30, 2021, all of which was related to employee benefits. We expect to incur additional cash charges of approximately $4 million through the end of 2023, all of which relates to employee costs. We expect $2 million of these future costs will relate to the Titanium Dioxide segment and $2 million will relate to the Performance Additives segment. Titanium Dioxide Segment In March 2017, we implemented a plan to close the white-end finishing and packaging operation of our titanium dioxide manufacturing facility at our Calais, France site. The announced plan followed the 2015 closure of the black-end manufacturing operations and resulted in the closure of the entire facility. As part of the program, we recorded restructuring and plant closure expense of $1 million and $3 million for the three and nine months ended September 30, 2022, and $1 million and $8 million for the three and nine months ended September 30, 2021, all of which related to plant shutdown costs. $1 million and $5 million of the plant shutdown costs recorded in the three and nine months ended September 30, 2021 were non-restructuring plant closure costs. We expect to incur additional cash plant shutdown costs for our Calais, France facility of approximately $10 million through 2024. In September 2018, we implemented a plan to close our Pori, Finland titanium dioxide manufacturing facility. We recorded $4 million of restructuring and plant closing costs for the three months ended September 30, 2022, all of which was restructuring expense related to cash plant shutdown costs. We recorded $17 million of restructuring and plant closing costs for the nine months ended September 30, 2022, of which approximately $13 million was restructuring expense related to the plan and $4 million was non-restructuring plant shutdown expenses. Restructuring expense for the nine months ended September 30, 2022 was comprised of $11 million related to cash plant shutdown costs and $2 million related to accelerated depreciation. We recorded restructuring expense related to our Pori, Finland manufacturing facility of $39 million for the three months ended September 30, 2021, of which approximately $3 million was restructuring expense related to the plan and $36 million was non-restructuring plant shutdown costs. Restructuring expense related to the plan consisted of $1 million of plant shutdown costs and $2 million of accelerated depreciation. We recorded restructuring expense of $42 million for the nine months ended September 30, 2021, of which $36 million was non-restructuring plant shutdown costs, and $6 million was restructuring expense related to the plan. Restructuring expense related to the plan consisted of $3 million related to cash plant shutdown costs, $1 million related to cash other employee costs and $2 million related to accelerated depreciation. We expect to incur additional charges related to our Pori facility of approximately $23 million through the end of 2025, of which $1 million relates to accelerated depreciation, $20 million relates to plant shut down costs, $1 million relates to other employee costs and $1 million relates to the write off of other assets. Future charges consist of $2 million of noncash costs and $21 million of cash costs. Performance Additives Segment In May 2021, we completed the sale of our water treatment business for approximately $6 million in cash. We recorded a loss on disposal of $2 million which is included in Other income in our unaudited condensed consolidated statements of operations. Accrued Restructuring Costs As of September 30, 2022 and December 31, 2021, current and non-current accrued restructuring costs by type of cost and year of initiative consisted of the following:
(1)The total workforce reduction reserves of $7 million relate to the termination of 41 positions, of which 34 positions have been terminated but require future payment as of September 30, 2022. (2)Accrued liabilities remaining at September 30, 2022 and December 31, 2021 by year of initiatives were as follows:
Details with respect to our reserves for restructuring are provided below by segment and initiative:
Restructuring, Impairment and Plant Closing and Transition Costs Details with respect to restructuring, impairment and plant closing and transition costs for the three and nine months ended September 30, 2022 and 2021 are provided below:
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Note 7. Debt Outstanding debt, excluding finance leases and net of remaining unamortized discount and issuance costs of $10 million and $14 million as of September 30, 2022 and December 31, 2021, respectively, consisted of the following:
The estimated fair value of the Term Loan Facility was $313 million and $359 million as of September 30, 2022 and December 31, 2021, respectively. The estimated fair value of the Senior Secured Notes was $219 million and $247 million as of September 30, 2022 and December 31, 2021, respectively. The estimated fair value of the Senior Unsecured Notes was $257 million and $362 million as of September 30, 2022 and December 31, 2021, respectively. The estimated fair values of the Term Loan Facility, Senior Secured Notes and Senior Unsecured Notes are based upon quoted market prices (Level 1). The aggregate principal outstanding under our ABL Facility was nil as of September 30, 2022 and December 31, 2021, each. Senior Credit Facilities Our Senior Credit Facilities provide for first lien senior secured financing of up to $705 million, consisting of: •the Term Loan Facility in an aggregate principal amount of $375 million, with a maturity date of August 2024; and •the ABL Facility in an aggregate principal amount of up to $330 million, with a maturity of October 15, 2026, or if earlier, 91 days prior to maturity of any indebtedness in an amount in excess of $75 million. The Term Loan Facility amortizes in aggregate annual amounts equal to 1% of the original principal amount of the Term Loan Facility and is paid quarterly. Availability to borrow under the ABL Facility is subject to a borrowing base calculation comprising both accounts receivable and inventory in the U.S., Canada, the U.K. and Germany and only accounts receivable in France and Spain. Thus, the base calculation may fluctuate from time to time and may be further impacted by the lenders’ discretionary ability to impose reserves and availability blocks that might otherwise incrementally increase or decrease borrowing availability. The borrowing base calculation as of September 30, 2022, after taking account of $45 million reserved for letters of credit available to be issued by one of our lenders, is approximately $279 million of which $233 million is available to be drawn as a result of approximately $46 million of letters of credit issued and outstanding. Borrowings under the Term Loan Facility bear interest at a rate equal to, at Venator’s option, either (a) a LIBOR based rate determined by reference to the costs of funds for Eurodollar deposits for the interest period relevant to such borrowing, adjusted for certain additional costs subject to an interest rate floor to be agreed or (b) a base rate determined by reference to the highest of (i) the rate of interest per annum determined from time to time by JPMorgan Chase Bank, N.A. as its prime rate in effect at its principal office in New York City, (ii) the federal funds rate plus 0.50% per annum and (iii) the one-month adjusted LIBOR plus 1.00% per annum, in each case plus an applicable margin to be agreed upon. Borrowings under the ABL Facility bear interest at a variable rate equal to an applicable margin based on the applicable quarterly average excess availability under the ABL Facility plus either a LIBOR or a base rate. The applicable margin percentage is calculated and established once every three calendar months and varies from 150 to 200 basis points for LIBOR loans depending on the quarterly average excess availability under the ABL Facility for the immediately preceding three-month period. The Senior Credit Facilities contain covenants that are usual and customary for facilities of this type, including events of default and financial, affirmative and negative covenants. In addition, the ABL Facility contains a springing financial covenant that requires the Company and its restricted subsidiaries to maintain a consolidated fixed charge coverage ratio of at least 1:1 for certain periods of time, if borrowing availability is less than a specified threshold. The Senior Credit Facilities contain customary change of control provisions, the breach of which entitle the lenders to take various actions, including the acceleration of amounts due under the facility. Senior Secured Notes On May 22, 2020, we completed an offering of $225 million in aggregate principal amount of senior secured notes (the "Senior Secured Notes") due on July 1, 2025 at 98% of their face value. The Senior Secured Notes are obligations of our wholly owned subsidiaries, Venator Finance S.à r.l. and Venator Materials LLC (the "Issuers") and bear interest of 9.5% per year payable semi-annually in arrears. The Senior Secured Notes are guaranteed on a senior secured basis by Venator and each of Venator's restricted subsidiaries (other than the Issuers and certain other excluded subsidiaries) that is a guarantor under Venator's Term Loan Facility and ABL Facility. The Senior Secured Notes are secured on a first-priority basis by liens on all of the assets that secure the Term Loan Facility on a first-priority basis and are secured on a second-priority basis in all inventory, accounts receivable, deposit accounts, securities accounts, certain related assets and other current assets that secure the ABL Facility on a first-priority basis and the Term Loan Facility on a second-priority basis, in each case, other than certain excluded assets. The Senior Secured Notes contain covenants that are usual and customary for facilities of this type, including events of default and financial, affirmative and negative covenants. Upon the occurrence of certain change of control events, holders of the Venator Senior Secured Notes will have the right to require that the Issuers purchase all or a portion of such holder’s Senior Secured Notes in cash at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest, if any, to the date of repurchase. Senior Unsecured Notes Our Senior Unsecured Notes are general unsecured senior obligations of the Issuers and are guaranteed on a general unsecured senior basis by Venator and certain of Venator’s subsidiaries. The indenture related to the Senior Unsecured Notes imposes certain limitations on the ability of Venator and certain of its subsidiaries to, among other things, incur additional indebtedness secured by any principal properties, incur indebtedness of non-guarantor subsidiaries, enter into certain sale and leaseback transactions with respect to any principal properties and consolidate or merge with or into any other person or lease, or sell or transfer all or substantially all of its properties and assets. The Senior Unsecured Notes bear interest of 5.75% per year payable semi-annually and will mature on July 15, 2025. The Senior Unsecured Notes will be redeemable in whole or in part at any time at the redemption prices set forth in the indenture, plus accrued and unpaid interest, if any, up to, but not including, the redemption date. Upon the occurrence of certain change of control events (other than the separation), holders of the Venator Senior Unsecured Notes will have the right to require that the Issuers purchase all or a portion of such holder’s Senior Unsecured Notes in cash at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest, if any, to the date of repurchase. Guarantees All obligations under the Senior Credit Facilities are guaranteed by Venator and substantially all of our subsidiaries (the "Guarantors"), and are secured by substantially all of the assets of Venator and the Guarantors, in each case subject to certain exceptions. Lien priority as between the Term Loan Facility and the ABL Facility with respect to the collateral will be governed by an intercreditor agreement. Letters of Credit As of September 30, 2022 we had $87 million of issued and outstanding letters of credit and bank guarantees to third parties. Of this amount, $8 million were issued by various banks on an unsecured basis with the remaining $79 million issued from our secured ABL Facility. Other Short-Term Notes Payable In the third quarter of 2022 we entered into an agreement to finance the premiums for some of our corporate insurance programs. The premium finance agreement includes an initial amount of $23 million and interest is payable at 4.4% per annum. Payment of principle and interest is due in monthly installments with the final amount payable in June 2023. Approximately $19 million was outstanding at September 30, 2022 and is included in "current portion of debt" on our condensed consolidated balance sheet.
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Derivative Instruments and Hedging Activities |
9 Months Ended |
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Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities To reduce cash flow volatility from foreign currency fluctuations, we enter into forward and swap contracts to hedge portions of cash flows of certain foreign currency transactions. We do not use derivative financial instruments for trading or speculative purposes. Cross-Currency Swaps In August 2019, we entered into three cross-currency interest rate swaps which notionally exchanged $200 million at a fixed rate of 5.75% for €181 million on which a weighted average rate of 3.73% was payable. The cross-currency swaps were designated as cash flow hedges of a fixed rate U.S. Dollar intercompany loan and the economic effect was to eliminate uncertainty on the U.S. Dollar cash flows. In May 2022, we terminated the three cross-currency interest rate swaps entered into in 2019, resulting in cash proceeds of $8 million. Concurrently, we entered into three new cross-currency interest rate swaps which notionally exchanged $200 million at a fixed rate of 5.75% for €188 million on which a weighted average rate of 4.11% is payable. The cross-currency swaps have been designated as fair value hedges of a fixed rate U.S. Dollar intercompany loan. The cross-currency swaps were set to mature in July 2025, which was the best estimate of the repayment date on the intercompany loan. During the third quarter of 2022, we entered into four transactions whereby, in each transaction, we terminated three existing cross-currency swaps and concurrently entered into three new cross-currency interest rate swaps resulting in total cash proceeds of $16 million across all four transactions. As of September 30, 2022 we have three cross-currency interest rate swaps which notionally exchanged $200 million at a fixed rate of 5.75% for €207 million on which a weighted average rate of 4.30% is payable. The cross-currency swaps have been designated as fair value hedges of a fixed rate U.S. Dollar intercompany loan. The cross-currency swaps are set to mature in July 2025, which is the best estimate of the repayment date on the intercompany loan. We formally assessed the hedging relationship at the inception of the fair value hedge in order to determine whether the derivatives that are used in the hedging transactions are highly effective in offsetting changes in fair value attributable to the hedged item and we will continue to assess the relationship on an ongoing basis. We use the spot method to measure effectiveness of our cross-currency swap agreement, comparing the quarterly change in the spot exchange rates on the USD notional amount underlying the cross-currency swap designated hereunder and the quarterly change in spot exchange rates on the USD debt. Fair value changes attributable to the change in spot foreign currency rates are recognized in foreign exchange gain (loss), and reported in Other operating expense (income) in our condensed consolidated statement of operations, along with the offsetting gains and losses of the related hedged item. We have elected to exclude the forward interest rate differential from the assessment of hedge effectiveness in the fair value hedge and account for it as an excluded component. The changes in fair value of the excluded component of the cross-currency swaps are recorded in Other comprehensive income (loss). The fair value of these hedges were liabilities of $2 million and $1 million at September 30, 2022 and December 31, 2021, and are recorded as other noncurrent liabilities on our unaudited condensed consolidated balance sheets. We estimate the fair values of our cross-currency swaps by taking into consideration valuations obtained from a third-party valuation service that utilizes an income-based industry standard valuation model for which all significant inputs are observable either directly or indirectly. These inputs include foreign currency exchange rates, credit default swap rates and cross-currency basis swap spreads. The cross-currency swaps have been classified as Level 2 because the fair value is based upon observable market-based inputs or unobservable inputs that are corroborated by market data. For the nine months ended September 30, 2022 and 2021, the change in accumulated other comprehensive loss associated with hedging activities was a loss of $2 million and a gain of $9 million, respectively. As of September 30, 2022, accumulated other comprehensive loss of nil is expected to be reclassified to earnings during the next twelve months. The actual amount that will be reclassified to earnings over the next twelve months may vary from this amount due to changing market conditions. We would be exposed to credit losses in the event of nonperformance by a counterparty to our derivative financial instruments. We continually monitor our position and the credit rating of our counterparties, and we do not anticipate nonperformance by the counterparties. Forward Currency Contracts Not Designated as Hedges We transact business in various foreign currencies and we enter into currency forward contracts to offset the risks associated with foreign currency exposure. At September 30, 2022 and December 31, 2021, we had $77 million and $68 million, respectively, notional amount (in U.S. Dollar equivalents) outstanding in foreign currency contracts with a term of approximately one month. The contracts are valued using observable market rates (Level 2).
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Income Taxes |
9 Months Ended |
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Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9. Income Taxes Venator uses the asset and liability method of accounting for income taxes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial and tax reporting purposes. We evaluate deferred tax assets to determine whether it is more likely than not that they will be realized. Valuation allowances are reviewed on a tax jurisdiction basis to analyze whether there is sufficient positive or negative evidence to support a change in judgment about the realizability of the related deferred tax assets for each jurisdiction. These conclusions require significant judgment. In evaluating the objective evidence that historical results provide, we consider the cyclicality of Venator and cumulative income or losses during the applicable period. Cumulative losses incurred over the period limits our ability to consider other subjective evidence such as our projections for the future. Changes in expected future income in applicable tax jurisdictions could affect the realization of deferred tax assets in those jurisdictions. We recorded income tax expense of $4 million and $4 million for the three months ended September 30, 2022 and 2021, respectively and $18 million and $14 million for the nine months ended September 30, 2022 and 2021, respectively. Our tax expense is significantly affected by the mix of income and losses in tax jurisdictions in which we operate, as impacted by the presence of valuation allowances in certain tax jurisdictions. Based on management’s ongoing analysis of positive and negative evidence within our Malaysia business we have concluded at September 30, 2022 that there is insufficient positive evidence to overcome a history of losses. As a result, we believe it is more likely than not that deferred tax assets will not be realized and we have recognized a full valuation allowance against net deferred tax assets of $9 million. In future periods we will continue to evaluate whether sufficient objective positive evidence of future taxable income exists, which would provide a basis for the recognition of deferred tax assets without a valuation allowance. For U.S. federal income tax purposes Huntsman recognized a gain as a result of the IPO and the separation to the extent the fair market value of the assets associated with our U.S. businesses exceeded the basis of such assets for U.S. federal income tax purposes at the time of the separation. As a result of such gain recognized, the basis of the assets associated with our U.S. businesses was increased. Pursuant to the tax matters agreement entered into at the time of the separation, we are required to make a future payment to Huntsman for any actual U.S. federal income tax savings we recognize as a result of any such basis increase for tax years through December 31, 2028. For the year ended December 31, 2019, we estimated that the aggregate future payments required by this provision were expected to be approximately $30 million and we recognized a noncurrent liability for this amount as of December 31, 2019. Due to a decrease in the expectation of future payments as a result of the Internal Revenue Code Section 382 change of control limitation, resulting from SK Capital's acquisition of Venator shares during 2020, our total liability as of September 30, 2022 and December 31, 2021 was $21 million. Any subsequent adjustment asserted by U.S. taxing authorities could change the amount of gain recognized with a corresponding basis and liability adjustment for us under the tax matters agreement.
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Earnings Per Share |
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Earnings Per Share | Earnings Per Share Basic earnings per share excludes dilution and is computed by dividing net income attributable to Venator ordinary shareholders by the weighted average number of shares outstanding during the period. Diluted earnings per share reflects all potential dilutive ordinary shares outstanding during the period and is computed by dividing net income available to Venator ordinary shareholders by the weighted average number of shares outstanding during the period increased by the number of additional shares that would have been outstanding as dilutive securities. Basic and diluted earnings per share are determined using the following information:
(1) The potentially dilutive impact of share-based awards was excluded from the calculation of net income (loss) per share for the three months ended September 30, 2022 and the three and nine months ended September 30, 2021 because there is an anti-dilutive effect as we are in net loss positions. For the three and nine months ended September 30, 2022, the number of anti-dilutive employee share-based awards excluded from the computation of diluted earnings per share was 5 million. For the three and nine months ended September 30, 2021, the number of anti-dilutive employee share-based awards excluded from the computation of dilutive earnings per share was 3 million.
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Commitments and Contingencies |
9 Months Ended |
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Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11. Commitments and Contingencies Legal Proceedings Overview We accrue liabilities related to legal matters when they are either known or considered probable and can be reasonably estimated. Legal matters are inherently unpredictable and subject to significant uncertainties, and significant judgment is required to determine both probability and the estimated amount. Some of these uncertainties include the stage of litigation, available facts, uncertainty as to the outcome of any legal proceedings or settlement discussions, and any novel legal issues presented. In addition to the matters discussed below, we are a party to various other proceedings instituted by private plaintiffs, governmental authorities and others arising under provisions of applicable laws, including various environmental, products liability and other laws. Except as otherwise disclosed in these unaudited condensed consolidated financial statements, we do not believe that the outcome of any of these matters will have a material effect on our financial statements. In re: Venator Materials PLC Securities Litigation We were a party to litigation proceedings filed in federal courts alleging that inaccurate and misleading statements were made regarding the impact to our operations, and prospects for restoration thereof, resulting from the fire that occurred at our Pori, Finland manufacturing facility in 2017, among other allegations. On October 29, 2019, the federal court cases were consolidated into a single action in the U.S. District Court for the Southern District of Texas, known as In re: Venator Materials PLC Securities Litigation. The Company entered into definitive documentation with the plaintiffs to settle this matter, which received final approval by the court on September 9, 2022. All of the Company’s payment obligations under the settlement are covered by insurance, except for an amount not material to Venator's financial statements which was made during the second quarter of 2022. Neste Engineering Services Matter We were party to an arbitration proceeding initiated by Neste Engineering Services Oy (“NES”) on December 19, 2018, for payment of invoices allegedly due of approximately €14 million in connection with the delivery of services by NES to the Company in respect of the Pori site rebuild project. A settlement agreement regarding all claims and the counterclaim in the arbitration, without admission of liability by either party, was reached on July 3, 2022, pursuant to which NES’s outstanding invoices allegedly due, for which we previously accrued, are deemed to have been discharged in full and NES was required to make a payment to Venator of approximately $13 million in connection with Venator’s counterclaim. Payment was received on July 14, 2022. We recognized $10 million of income in Other operating (income) expense on our unaudited condensed consolidated statement of operations as a result of the settlement with NES during the second quarter of 2022 and we recognized a further approximately $13 million in the third quarter of 2022 upon receipt of the payment from NES. Calais Pipeline Matter The Region Hauts-de-France (the “Region”) issued two duplicate title perception demands against us requiring repayment of €12 million, or $13 million using exchange rates at September 30, 2022. This sum was previously paid to us by the Region under a settlement agreement, pursuant to which we were required to move an effluent pipeline at our Calais site. We filed claims with the Administrative Court in Lille, France on February 14, 2018 and April 12, 2018, requesting orders that the demands be set aside, which suspended enforcement of the demands. On July 12, 2018, the court set aside the first demand. On July 19, 2022, the court set aside the second demand and determined the original settlement agreement to be null and void. The judgement did not include a requirement for Venator to make any payments and was subject to appeal by both parties. Venator filed an appeal against the July 19, 2022 judgement on September 14, 2022. No date has been set for the appeal hearing. At this stage we are unable to determine the likelihood of an unfavorable outcome to the appeal and we have not made any accrual with regard to this matter. Scarlino Gypsum Developments Our Scarlino, Italy TiO2 manufacturing facility generates gypsum from the manufacturing process, which has been landfilled on-site and also transported for use in a reclamation project at Montioni, a nearby former quarry owned and operated by third parties. Venator Italy Srl, the quarry operator and site management are subjects of an investigation by the Italian Public Prosecutor’s Office concerning whether our Scarlino site and the quarry operator are in full compliance with applicable laws and permits with regard to the use of gypsum for reclamation at the quarry. Following a decree by the Region of Tuscany in May 2022, operations at the reclamation project were temporarily suspended. On July 27, 2022 the Administrative Court of Tuscany ordered that operational activities at Montioni could resume pending a court hearing on the legality of the Region’s decree, which hearing currently is scheduled to occur in January 2023. In the second quarter of 2021, we requested regional approval for a project for the use of gypsum in a specified on-site area on our Scarlino site. Following a review with relevant regional representatives, we submitted a revised request for regional approval in the first quarter of 2022. Subsequently, we received notice that a preliminary (or screening) environmental impact assessment would be required, and we provided the requested information. While the authorities have indicated informally that the request is unlikely to be approved, we are awaiting their final determination and formal notice. By combining the remaining capacity at the Montioni reclamation project, currently approved on-site landfill capacity and capacity at a yet to be approved third-party commercial landfill, we believe we have capacity for gypsum storage into the second quarter of 2023 at the current one-stream operating rate. We continue to suspend TiO2 production from two of the three calciner streams at the facility to reduce the rate at which the remaining gypsum capacity both on-site and in the Montioni reclamation project is consumed. Further regional approvals are being sought for additional on-site landfill capacity and temporary storage, and at the neighboring Solmine site, which would provide additional storage capacity for gypsum in and beyond the second quarter of 2023. We may further reduce production and/or stop production at the facility until such time as necessary approvals are received, an alternative solution for gypsum produced at the site becomes available, or we determine to close the site. We continue to pursue longer-term options should the site remain in production, including operational changes to reduce the volume of gypsum produced in our process and developing new business opportunities for the sale of gypsum for commercial use. In September 2022 Venator was the successful bidder in an auction to purchase the La Vallina quarry in Tuscany. If we successfully complete the purchase and we receive the required approvals from regional authorities, at a future point the site could be used as a landfill to provide longer-term disposal capacity for gypsum we produce at the Scarlino site. Gasum Matter On October 25, 2022, we received a letter from Gasum LNG Oy demanding full and immediate payment of a total of €33 million plus interest from October 14, 2022 for all amounts allegedly owed under a natural gas supply agreement that we entered into with Skangas Oy (predecessor to Gasum) in 2015 to supply natural gas to our Pori, Finland manufacturing facility. Under the agreement, we were required to purchase a minimum annual quantity, subject to a mechanism for making up shortfalls. The minimum annual quantity could be reduced (even to zero) in the event of a "Force Majeure Event". We declared that the fire at our Pori facility in January 2017 was a Force Majeure Event under the agreement, reducing the minimum annual quantity to the actual quantity purchased. Gasum alleged that this Force Majeure Event subsequently ceased to apply and that we were thereafter again obliged to purchase the original minimum annual quantity and filed arbitration proceedings seeking declaratory relief to require us to take or pay the original minimum annual quantities of natural gas. On August 6, 2021, the arbitration tribunal issued its decision in the matter, ruling that we were obligated to continue to purchase the minimum annual quantity under the supply agreement until termination of the supply agreement, which subsequently occurred on August 31, 2022. Gasum issued an invoice to us on October 13, 2022 for payment of €33 million due and allegedly outstanding under the contract, which we have previously accrued. We dispute that any sums are yet due and outstanding other than a €3 million termination fee as of October 13, 2022. Gasum indicated in their letter of October 25, 2022 that if full payment has not been received by October 31, 2022, they would commence legal measures to collect the claimed amount. The supply agreement contains an arbitration provision that we believe will apply to this dispute regarding timing of payments.
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Environmental, Health and Safety Matters |
9 Months Ended |
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Sep. 30, 2022 | |
ENVIRONMENTAL, HEALTH AND SAFETY MATTERS | |
Environmental, Health and Safety Matters | Note 12. Environmental, Health and Safety Matters Environmental, Health and Safety Capital Expenditures We may incur future costs for capital improvements and general compliance under EHS laws, including costs to acquire, maintain and repair pollution control equipment. For the nine months ended September 30, 2022 and 2021, our capital expenditures for EHS matters totaled $10 million and $12 million, respectively. Because capital expenditures for these matters are subject to evolving regulatory requirements and depend, in part, on the timing, promulgation and enforcement of specific requirements, our capital expenditures for EHS matters have varied significantly from year to year and we cannot provide assurance that our recent expenditures are indicative of future amounts we may spend related to EHS and other applicable laws. A number of our EHS capital expenditures have been subjected to extended timelines as a result of the COVID-19 pandemic, and we continue to assess the timelines of all projects as as we manage through global inflationary pressures. Changes to timelines may be related to regulatory orders or guidelines that cause suppliers or contractors to cease or slow down operational activities, including as a result of changes to social distancing rules, among other factors. The impacts may vary significantly between different jurisdictions. Environmental Liabilities We accrue liabilities relating to anticipated environmental cleanup obligations, site reclamation and closure costs, and known penalties. Liabilities are recorded when potential liabilities are either known or considered probable and can be reasonably estimated. Our liability estimates are based upon requirements placed upon us by regulators, available facts, existing technology, and past experience. The environmental liabilities do not include amounts recorded as asset retirement obligations. As of September 30, 2022 and December 31, 2021, we had environmental reserves of $4 million and $10 million, respectively. Environmental Matters We have incurred, and we may in the future incur, liabilities to investigate and clean up waste or contamination at our current or former facilities or facilities operated by third parties at which we may have disposed of waste or other materials. Similarly, we may incur costs for the cleanup of waste that was disposed of prior to the purchase of our businesses. Under some circumstances, the scope of our liability may extend to damages to natural resources. In the EU, the Environmental Liability Directive (Directive 2004/35/EC) has established a framework based on the "polluter pays" principle for the prevention and remediation of environmental damage, which establishes measures to prevent and remedy environmental damage. The directive defines "environmental damage" as damage to protected species and natural habitats, damage to water and damage to soil. Operators carrying out dangerous activities listed in the Directive are strictly liable for remediation, even if they are not at fault or negligent. Under EU Directive 2010/75/EU on industrial emissions, permitted facility operators may be liable for significant pollution of soil and groundwater over the lifetime of the activity concerned. We are in the process of plant closures at facilities in the EU and liability to investigate and clean up waste or contamination may arise during the surrender of operators' permits at these locations under the directive and associated legislation such as the Water Framework Directive (Directive 2000/60/EC) and the Groundwater Directive (Directive 2006/118/EC). In March 2022, the EU issued a proposed regulation for the revision of the industrial emissions directive that may require changes to emissions abatement systems at some of our EU based facilities. If implemented, the directive is not expected to come into force until 2024 at the earliest. Under CERCLA and similar state laws, a current or former owner or operator of real property in the U.S. may be liable for remediation costs regardless of whether the release or disposal of hazardous substances was in compliance with law at the time it occurred, and a current owner or operator may be liable regardless of whether it owned or operated the facility at the time of the release. Outside the U.S., analogous contaminated property laws, such as those in effect in France, can hold past owners and/or operators liable for remediation at former facilities. We have not been notified by third parties of claims against us for cleanup liabilities at former facilities or third-party sites, including, but not limited to, sites listed under CERCLA. Under RCRA in the U.S. and similar state laws, we may be required to remediate contamination originating from our properties as a condition to our hazardous waste permit. Some of our manufacturing sites have an extended history of industrial chemical manufacturing and use, including on-site waste disposal and we have made accruals for related remediation activity. We are aware of soil, groundwater or surface contamination from past operations at some of our sites and have made accruals for related remediation activity, and we may find contamination at other sites in the future. Similar laws exist in a number of locations in which we currently operate, or previously operated, manufacturing facilities. Recent developments in climate change related policy and regulations include the Green Deal in the EU, mandatory TCFD disclosures in the U.K. and the U.K. commitment to becoming carbon neutral by 2050. Other nations have made or indicated a desire to make similar policy changes and commitments, including the U.S. Securities and Exchange Commission's proposed rule changes requiring climate-related disclosure. These changes are affecting us in a number of ways including potential requirements to decarbonize manufacturing processes and increased costs of GHG allowances. We are currently monitoring these developments closely while investigating and developing appropriate climate change strategies to enable us to comply with the new regulations and conform to new disclosure requirements, including TCFD. We expect that our facilities will be subject to additional regulation related to climate change and climate change itself may also have some impact on our operations. However, these impacts are currently uncertain and we cannot predict the nature and scope of these impacts. Scarlino Investigation Our Scarlino, Italy TiO2 manufacturing facility generates gypsum from the manufacturing process, which has been landfilled on-site and also transported for use in a reclamation project at Montioni, a nearby former quarry owned and operated by third parties. Venator Italy Srl, the quarry operator and Scarlino site management are subjects of an investigation by the Italian Public Prosecutor’s Office concerning whether our Scarlino site and the quarry operator are in full compliance with applicable laws and permits with regard to the use of gypsum for reclamation at the quarry. Following a decree by the Region of Tuscany in May 2022, operations at the reclamation project were temporarily suspended. On July 27, 2022, the Administrative Court of Tuscany ordered that operational activities at Montioni could resume pending a court hearing on the legality of the Region’s decree, which hearing currently is scheduled to occur in January 2023. The authorities continue to investigate the matter and further environmental investigations will be carried out in the fourth quarter of 2022. Harrisburg Remediation We are engaged in source removal and groundwater remediation at our facility in Harrisburg, NC, under a corrective action plan agreed with the North Carolina Department of Environmental Quality. The agreed interim corrective measures include the removal of a settlement lagoon and the relining of lagoons and containment areas prior to risk based remediation of groundwater. We have environmental reserves of $2 million at September 30, 2022 for this remediation obligation however the risk-based remediation of the groundwater following the remediation of the lagoons and containment areas cannot be reliably estimated at this stage, and these costs could be material to our unaudited condensed consolidated financial statements. Calais Remediation Following the closure of our manufacturing facility in Calais, France we are engaged in a site assessment and a remediation assessment. We have reserves of less than $1 million at September 30, 2022 related to decontamination of structures on the site. We have not otherwise set environmental reserves for this remediation obligation as the risk-based targets for remediation and the extent of any required remediation are yet to be agreed with regulators and cannot be reliably estimated. However, these costs could be material to our unaudited condensed consolidated financial statements. Duisburg Remediation We are engaged in the assessment of metals in the groundwater and the hydrogeological nature of the groundwater beneath our Duisburg, Germany facility and have completed a risk assessment of the status of the groundwater body. The risk assessment has concluded that remediation will be required and that options for remediation should be investigated. We have reserves of $1 million at September 30, 2022 for investigation into environmental contamination. The scope of any required remediation of the groundwater has not been determined and is not reliably estimable at this stage and will require further technical assessment and regulatory agreement, but these costs could be material to our unaudited condensed consolidated financial statements.
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Accumulated Other Comprehensive Loss |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consisted of the following:
(a)Amounts are net of tax of nil as of September 30, 2022 and January 1, 2022, each. (b)Amounts are net of tax of $50 million as of September 30, 2022 and January 1, 2022, each. (c)See table below for details about the amounts reclassified from accumulated other comprehensive loss. (d)Amounts are net of tax of nil as of September 30, 2021 and January 1, 2021, each. (e)Amounts are net of tax of $50 million as of September 30, 2021 and January 1, 2021, each.
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Operating Segment Information |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Segment Information | Operating Segment Information We derive our revenues, earnings and cash flows from the manufacture and sale of a wide variety of chemical products. We have reported our operations through our two segments, Titanium Dioxide and Performance Additives, and organized our business and derived our operating segments around differences in product lines. The major product groups of each reportable operating segment are as follows:
Sales between segments are generally recognized at external market prices and are eliminated in consolidation. Adjusted EBITDA is presented as a measure of the financial performance of our global business units and for reporting the results of our operating segments. The revenues and adjusted EBITDA for each of the two reportable operating segments are as follows:
(1)Adjusted EBITDA is defined as net income/loss of Venator before interest expense, interest income, income tax expense/benefit, depreciation and amortization and net income attributable to noncontrolling interests, as well as eliminating the following adjustments: (a) loss/gain on disposition of business/assets; (b) certain legal expenses/settlements; (c) amortization of pension and postretirement actuarial losses/gains; (d) net plant incident costs/credits; and (e) restructuring, impairment, and plant closing and transition costs.
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Description of Business, Basis of Presentation, and Recent Developments (Policies) |
9 Months Ended |
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Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Our unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP" or "U.S. GAAP") and in management’s opinion reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of results of operations, comprehensive loss, financial condition and cash flows for the periods presented. Results for interim periods are not necessarily indicative of those to be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes to consolidated financial statements included in the Annual Report on Form 20-F for the year ended December 31, 2021 for our Company. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the notes to the unaudited condensed consolidated financial statements, all dollar and share amounts in tabulations, except per share amounts, are in millions unless otherwise indicated.
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Recently Issued Accounting Pronouncements | Accounting Pronouncements Pending Adoption in Future Periods In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848). The amendments in this ASU temporarily simplify the accounting for contract modifications, including hedging relationships, due to the transition from London Interbank Offering Rate ("LIBOR") and other interbank offered rates to alternative reference interest rates. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope, which provided clarifying guidance to ASU 2020-04. Under ASU No. 2021-01, entities can elect not to remeasure contracts at the modification date or reassess a previous accounting determination if certain conditions are met. These ASUs were effective upon issuance and generally can be applied to applicable contract modifications through December 31, 2022. Currently our Term Loan Facility references LIBOR-based rates. Our credit facilities either contain, or will contain, provisions specifying alternative interest rate calculations to be employed when LIBOR ceases to be available as a benchmark. We do not expect a significant impact to our operating results, financial position or cash flows from the transition from LIBOR to alternative reference interest rates, but we will continue to monitor the impact of this transition until it is completed.
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Revenue (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table disaggregates our revenues by major geographical region for the three and nine months ended September 30, 2022 and 2021:
The following table disaggregates our revenues by major product line for the three and nine months ended September 30, 2022 and 2021:
1 Water treatment business was sold in May 2021.
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Inventories (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Inventory | Inventories at September 30, 2022 and December 31, 2021 consisted of the following:
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Variable Interest Entities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Information of VIE's | The revenues, income before income taxes and net cash provided by operating activities for our variable interest entities for the three and nine months ended September 30, 2022 and 2021 are as follows:
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Restructuring, Impairment, and Plant Closing and Transition Costs (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Restructuring Costs | As of September 30, 2022 and December 31, 2021, current and non-current accrued restructuring costs by type of cost and year of initiative consisted of the following:
(1)The total workforce reduction reserves of $7 million relate to the termination of 41 positions, of which 34 positions have been terminated but require future payment as of September 30, 2022. (2)Accrued liabilities remaining at September 30, 2022 and December 31, 2021 by year of initiatives were as follows:
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Schedule of Accrued Liabilities by Year of Initiatives | Accrued liabilities remaining at September 30, 2022 and December 31, 2021 by year of initiatives were as follows:
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Schedule of Accrued Restructuring Costs by Segment and Initiative | Details with respect to our reserves for restructuring are provided below by segment and initiative:
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Schedule of Restructuring, Impairment and Plant Closing and Transition Costs | Details with respect to restructuring, impairment and plant closing and transition costs for the three and nine months ended September 30, 2022 and 2021 are provided below:
|
Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Outstanding Debt | Outstanding debt, excluding finance leases and net of remaining unamortized discount and issuance costs of $10 million and $14 million as of September 30, 2022 and December 31, 2021, respectively, consisted of the following:
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Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share are determined using the following information:
(1) The potentially dilutive impact of share-based awards was excluded from the calculation of net income (loss) per share for the three months ended September 30, 2022 and the three and nine months ended September 30, 2021 because there is an anti-dilutive effect as we are in net loss positions.
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Accumulated Other Comprehensive Loss (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Comprehensive (Loss) Income | Accumulated other comprehensive loss consisted of the following:
(a)Amounts are net of tax of nil as of September 30, 2022 and January 1, 2022, each. (b)Amounts are net of tax of $50 million as of September 30, 2022 and January 1, 2022, each. (c)See table below for details about the amounts reclassified from accumulated other comprehensive loss. (d)Amounts are net of tax of nil as of September 30, 2021 and January 1, 2021, each. (e)Amounts are net of tax of $50 million as of September 30, 2021 and January 1, 2021, each.
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Schedule of Details about Reclassifications from Other Comprehensive Loss |
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Operating Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segments | The major product groups of each reportable operating segment are as follows:
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Schedule of Segments, Revenues and Adjusted EBITDA | The revenues and adjusted EBITDA for each of the two reportable operating segments are as follows:
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Description of Business, Basis of Presentation, and Recent Developments (Details) $ in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | |
---|---|---|---|---|
May 31, 2021
USD ($)
|
Dec. 31, 2022
USD ($)
|
Sep. 30, 2022
segment
facility
|
Nov. 14, 2022
USD ($)
|
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OPERATING SEGMENT INFORMATION | ||||
Number of reportable segments | segment | 2 | |||
Iron Oxide Business | Forecast | Minimum | ||||
OPERATING SEGMENT INFORMATION | ||||
Loss on sale of business | $ 35 | |||
Iron Oxide Business | Forecast | Maximum | ||||
OPERATING SEGMENT INFORMATION | ||||
Loss on sale of business | 45 | |||
Subsequent Event | ||||
OPERATING SEGMENT INFORMATION | ||||
Net proceeds from sale leaseback transaction | 42 | |||
Taxes and other expenses from sale leaseback transaction | 9 | |||
Gross proceeds from sale leaseback transaction | $ 51 | |||
Subsequent Event | Iron Oxide Business | ||||
OPERATING SEGMENT INFORMATION | ||||
Disposal group consideration | $ 140 | |||
Disposal group consideration, reduction of debt | 20 | |||
Disposal group consideration, working capital and closing cash adjustments | $ 6 | |||
Titanium Dioxide | ||||
OPERATING SEGMENT INFORMATION | ||||
Number of manufacturing and processing facilities | facility | 7 | |||
Performance Additives | ||||
OPERATING SEGMENT INFORMATION | ||||
Number of manufacturing and processing facilities | facility | 13 | |||
Loss on sale of business | $ (2) |
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 506 | $ 557 | $ 1,807 | $ 1,677 |
TiO2 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 361 | 430 | 1,357 | 1,259 |
Color Pigments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 73 | 74 | 238 | 222 |
Functional Additives | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 31 | 29 | 104 | 100 |
Timber Treatment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 41 | 24 | 108 | 87 |
Water Treatment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 9 | ||
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 192 | 265 | 801 | 810 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 193 | 136 | 535 | 411 |
APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 82 | 110 | 328 | 321 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 39 | 46 | 143 | 135 |
Titanium Dioxide | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 361 | 430 | 1,357 | 1,259 |
Titanium Dioxide | TiO2 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 361 | 430 | 1,357 | 1,259 |
Titanium Dioxide | Color Pigments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Titanium Dioxide | Functional Additives | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Titanium Dioxide | Timber Treatment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Titanium Dioxide | Water Treatment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Titanium Dioxide | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 148 | 217 | 648 | 647 |
Titanium Dioxide | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 117 | 81 | 318 | 236 |
Titanium Dioxide | APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 61 | 90 | 261 | 254 |
Titanium Dioxide | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 35 | 42 | 130 | 122 |
Performance Additives | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 145 | 127 | 450 | 418 |
Performance Additives | TiO2 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Performance Additives | Color Pigments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 73 | 74 | 238 | 222 |
Performance Additives | Functional Additives | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 31 | 29 | 104 | 100 |
Performance Additives | Timber Treatment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 41 | 24 | 108 | 87 |
Performance Additives | Water Treatment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 9 | ||
Performance Additives | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 44 | 48 | 153 | 163 |
Performance Additives | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 76 | 55 | 217 | 175 |
Performance Additives | APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 21 | 20 | 67 | 67 |
Performance Additives | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 4 | $ 4 | $ 13 | $ 13 |
Revenue - Narrative (Details) |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue payment term | 30 days |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue payment term | 90 days |
Inventories (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
||
---|---|---|---|---|
Inventory Disclosure [Abstract] | ||||
Raw materials and supplies | $ 229 | $ 185 | ||
Work in process | 52 | 51 | ||
Finished goods | 315 | 242 | ||
Total | [1] | $ 596 | $ 478 | |
|
Variable Interest Entities (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Revenues, income from continuing operations before income taxes and net cash provided by operating activities for our variable interest entities | ||||
Revenues | $ 506 | $ 557 | $ 1,807 | $ 1,677 |
Income before income taxes | (44) | (43) | 63 | (75) |
Net cash provided by operating activities | $ (87) | 2 | ||
Pacific Iron Products | ||||
Identification of variable interest entities through investments and transactions | ||||
Variable interest entity ownership percentage | 50.00% | |||
Viance | ||||
Identification of variable interest entities through investments and transactions | ||||
Variable interest entity ownership percentage | 50.00% | |||
Consolidated VIE's | ||||
Revenues, income from continuing operations before income taxes and net cash provided by operating activities for our variable interest entities | ||||
Revenues | 34 | 18 | $ 90 | 67 |
Income before income taxes | 4 | 0 | 10 | 5 |
Net cash provided by operating activities | $ 5 | $ 2 | $ 12 | $ 10 |
Restructuring, Impairment, and Plant Closing and Transition Costs - Narrative (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 9 Months Ended | 27 Months Ended | ||
---|---|---|---|---|---|---|
May 31, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2024 |
|
Restructuring, impairment and plant closing costs | ||||||
Plant shut down costs | $ 0 | $ 37,000,000 | $ 4,000,000 | $ 41,000,000 | ||
Accelerated depreciation | 0 | 2,000,000 | 2,000,000 | 2,000,000 | ||
Cash restructuring charges | 5,000,000 | (4,000,000) | 15,000,000 | 17,000,000 | ||
Performance Additives | ||||||
Restructuring, impairment and plant closing costs | ||||||
Proceeds from sale of business/assets | $ 6,000,000 | |||||
Loss on disposal of business | $ 2,000,000 | |||||
Duisburg, Germany | Facility closing | ||||||
Restructuring, impairment and plant closing costs | ||||||
Additional restructuring charges remaining | 4,000,000 | 4,000,000 | ||||
Duisburg, Germany | Facility closing | Titanium Dioxide | ||||||
Restructuring, impairment and plant closing costs | ||||||
Restructuring charges | 0 | 5,000,000 | 0 | 10,000,000 | ||
Additional restructuring charges remaining | 2,000,000 | 2,000,000 | ||||
Duisburg, Germany | Facility closing | Performance Additives | ||||||
Restructuring, impairment and plant closing costs | ||||||
Additional restructuring charges remaining | 2,000,000 | 2,000,000 | ||||
Calais, France | Titanium Dioxide | ||||||
Restructuring, impairment and plant closing costs | ||||||
Plant shut down costs | 1,000,000 | 5,000,000 | ||||
Calais, France | Facility closing | Titanium Dioxide | ||||||
Restructuring, impairment and plant closing costs | ||||||
Restructuring charges | 1,000,000 | 1,000,000 | 3,000,000 | 8,000,000 | ||
Additional restructuring charges remaining | 10,000,000 | 10,000,000 | ||||
Pori, Finland | Titanium Dioxide | ||||||
Restructuring, impairment and plant closing costs | ||||||
Plant shut down costs | 36,000,000 | 4,000,000 | 36,000,000 | |||
Pori, Finland | Facility closing | Titanium Dioxide | ||||||
Restructuring, impairment and plant closing costs | ||||||
Restructuring charges | 39,000,000 | 42,000,000 | ||||
Additional restructuring charges remaining | 23,000,000 | 23,000,000 | ||||
Plant shut down costs | 1,000,000 | 11,000,000 | 3,000,000 | |||
Other restructuring costs | $ 4,000,000 | 17,000,000 | ||||
Restructuring and related cost, incurred cost | 3,000,000 | 13,000,000 | 6,000,000 | |||
Accelerated depreciation | $ 2,000,000 | $ 2,000,000 | 2,000,000 | |||
Employee benefits | $ 1,000,000 | |||||
Pori, Finland | Facility closing | Titanium Dioxide | Forecast | ||||||
Restructuring, impairment and plant closing costs | ||||||
Plant shut down costs | $ 20,000,000 | |||||
Accelerated depreciation | 1,000,000 | |||||
Employee benefits | 1,000,000 | |||||
Write off of other assets | 1,000,000 | |||||
Other plant closure costs | 2,000,000 | |||||
Cash restructuring charges | $ 21,000,000 |
Restructuring, Impairment and Plant Closing and Transition Costs - Accrued Restructuring Costs (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2022
USD ($)
position
| |
Accrued restructuring costs roll forward | |
Accrued restructuring costs at the beginning of the period | $ 22 |
Foreign currency effect on liability balance | (2) |
Accrued restructuring costs at the end of the period | 7 |
2018 initiatives and prior | |
Accrued restructuring costs roll forward | |
Accrued restructuring costs at the beginning of the period | 8 |
Restructuring charges | 13 |
Restructuring payments | (15) |
Accrued restructuring costs at the end of the period | 5 |
2019 initiatives | |
Accrued restructuring costs roll forward | |
Accrued restructuring costs at the beginning of the period | 0 |
Restructuring charges | 2 |
Restructuring payments | (2) |
Accrued restructuring costs at the end of the period | 0 |
2020 initiatives | |
Accrued restructuring costs roll forward | |
Accrued restructuring costs at the beginning of the period | 14 |
Restructuring payments | (11) |
Accrued restructuring costs at the end of the period | 2 |
Workforce reductions | |
Accrued restructuring costs roll forward | |
Accrued restructuring costs at the beginning of the period | 22 |
Foreign currency effect on liability balance | (2) |
Accrued restructuring costs at the end of the period | $ 7 |
Number of positions terminated | position | 41 |
Number of positions terminated requiring future payment | position | 34,000,000 |
Workforce reductions | 2018 initiatives and prior | |
Accrued restructuring costs roll forward | |
Restructuring charges | $ 1 |
Restructuring payments | (3) |
Workforce reductions | 2019 initiatives | |
Accrued restructuring costs roll forward | |
Restructuring charges | 2 |
Restructuring payments | (2) |
Workforce reductions | 2020 initiatives | |
Accrued restructuring costs roll forward | |
Restructuring payments | (11) |
Other restructuring costs | |
Accrued restructuring costs roll forward | |
Accrued restructuring costs at the beginning of the period | 0 |
Foreign currency effect on liability balance | 0 |
Accrued restructuring costs at the end of the period | 0 |
Other restructuring costs | 2018 initiatives and prior | |
Accrued restructuring costs roll forward | |
Restructuring charges | 12 |
Restructuring payments | (12) |
Other restructuring costs | 2019 initiatives | |
Accrued restructuring costs roll forward | |
Restructuring charges | 0 |
Restructuring payments | 0 |
Other restructuring costs | 2020 initiatives | |
Accrued restructuring costs roll forward | |
Restructuring payments | $ 0 |
Restructuring, Impairment and Plant Closing and Transition Costs - Accrued Liabilities by Initiatives (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Accrued liabilities by initiatives | ||
Accrued liabilities | $ 7 | $ 22 |
2018 initiatives and prior | ||
Accrued liabilities by initiatives | ||
Accrued liabilities | 5 | 8 |
2019 initiatives | ||
Accrued liabilities by initiatives | ||
Accrued liabilities | 0 | 0 |
2020 initiatives | ||
Accrued liabilities by initiatives | ||
Accrued liabilities | $ 2 | $ 14 |
Restructuring, Impairment and Plant Closing and Transition Costs - Schedule of Accrued Restructuring Costs by Segment and Initiative (Details) - USD ($) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Accrued restructuring costs roll forward | |
Accrued restructuring costs at the beginning of the period | $ 22 |
Foreign currency effect on liability balance | (2) |
Accrued restructuring costs at the end of the period | 7 |
Current portion of restructuring reserves | 4 |
Long-term portion of restructuring reserves | 3 |
2018 initiatives and prior | |
Accrued restructuring costs roll forward | |
Accrued restructuring costs at the beginning of the period | 8 |
Restructuring charges | 13 |
Restructuring payments | (15) |
Accrued restructuring costs at the end of the period | 5 |
2019 initiatives | |
Accrued restructuring costs roll forward | |
Accrued restructuring costs at the beginning of the period | 0 |
Restructuring charges | 2 |
Restructuring payments | (2) |
Accrued restructuring costs at the end of the period | 0 |
2020 initiatives | |
Accrued restructuring costs roll forward | |
Accrued restructuring costs at the beginning of the period | 14 |
Restructuring payments | (11) |
Accrued restructuring costs at the end of the period | 2 |
Titanium Dioxide | |
Accrued restructuring costs roll forward | |
Accrued restructuring costs at the beginning of the period | 21 |
Foreign currency effect on liability balance | (2) |
Accrued restructuring costs at the end of the period | 6 |
Current portion of restructuring reserves | |
Long-term portion of restructuring reserves | |
Titanium Dioxide | 2018 initiatives and prior | |
Accrued restructuring costs roll forward | |
Restructuring charges | 13 |
Restructuring payments | (15) |
Titanium Dioxide | 2019 initiatives | |
Accrued restructuring costs roll forward | |
Restructuring charges | 0 |
Restructuring payments | 0 |
Titanium Dioxide | 2020 initiatives | |
Accrued restructuring costs roll forward | |
Restructuring payments | (11) |
Performance Additives | |
Accrued restructuring costs roll forward | |
Accrued restructuring costs at the beginning of the period | 1 |
Foreign currency effect on liability balance | 0 |
Accrued restructuring costs at the end of the period | 1 |
Current portion of restructuring reserves | |
Long-term portion of restructuring reserves | |
Performance Additives | 2018 initiatives and prior | |
Accrued restructuring costs roll forward | |
Restructuring charges | 0 |
Restructuring payments | 0 |
Performance Additives | 2019 initiatives | |
Accrued restructuring costs roll forward | |
Restructuring charges | 2 |
Restructuring payments | (2) |
Performance Additives | 2020 initiatives | |
Accrued restructuring costs roll forward | |
Restructuring payments | $ 0 |
Restructuring, Impairment, and Plant Closing and Transition Costs - Restructuring, Impairment and Plant Closing and Transition Costs (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Restructuring and Related Activities [Abstract] | ||||
Cash restructuring charges | $ 5 | $ (4) | $ 15 | $ 17 |
Accelerated depreciation | 0 | 2 | 2 | 2 |
Other plant closure costs | 0 | 37 | 4 | 41 |
Total Restructuring, Impairment and Plant Closing and Transition Costs | $ 5 | $ 35 | $ 21 | $ 60 |
Debt - Narrative (Details) |
9 Months Ended | ||
---|---|---|---|
May 22, 2020
USD ($)
|
Sep. 30, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Debt | |||
Debt issuance costs | $ 10,000,000 | $ 14,000,000 | |
Letters of credit | 87,000,000 | ||
Letter of Credit | |||
Debt | |||
Unsecured debt | 8,000,000 | ||
Term Loan Facility due August 2024 | |||
Debt | |||
Fair value of debt instruments | 313,000,000 | 359,000,000 | |
Aggregate principal amount | $ 375,000,000 | ||
Amortization of line of credit facility as a percentage of principal amount | 1.00% | ||
Term Loan Facility due August 2024 | Federal funds rate | |||
Debt | |||
Interest rate basis as a percentage | 0.50% | ||
Term Loan Facility due August 2024 | LIBOR | |||
Debt | |||
Interest rate basis as a percentage | 1.00% | ||
Senior Secured Notes due July 2025 | |||
Debt | |||
Fair value of debt instruments | $ 219,000,000 | 247,000,000 | |
Aggregate principal amount | $ 225,000,000 | ||
Redemption price as a percentage | 98.00% | ||
Stated interest rate as a percentage | 9.50% | ||
Senior Secured Notes due July 2025 | Occurrence Certain Change of Control Events | |||
Debt | |||
Redemption price as a percentage | 101.00% | ||
Senior Unsecured Notes due July 2025 | |||
Debt | |||
Fair value of debt instruments | $ 257,000,000 | 362,000,000 | |
Stated interest rate as a percentage | 5.75% | ||
Senior Unsecured Notes due July 2025 | Occurrence Certain Change of Control Events | |||
Debt | |||
Redemption price as a percentage | 101.00% | ||
ABL facility | |||
Debt | |||
Maximum borrowing capacity commitment | $ 330,000,000 | ||
Extension option available, days prior to maturity date | 91 days | ||
Maturity threshold | $ 75,000,000 | ||
Bi-lateral line carved out of the facility | 45,000,000 | ||
Amount in excess | 279,000,000 | ||
Current available capacity | $ 233,000,000 | ||
Minimum fixed charge coverage ratio | 1 | ||
Letters of credit | $ 79,000,000 | ||
ABL facility | LIBOR | Minimum | |||
Debt | |||
Interest rate basis as a percentage | 1.50% | ||
ABL facility | LIBOR | Maximum | |||
Debt | |||
Interest rate basis as a percentage | 2.00% | ||
ABL facility | Line of Credit | |||
Debt | |||
Aggregate principal outstanding | $ 0 | $ 0 | |
Senior Credit Facilities | |||
Debt | |||
Aggregate principal amount | 705,000,000 | ||
Asset Based Lending Facility Bi Lateral Carve Out One | |||
Debt | |||
Bi-lateral line carved out of facility utilized (approximately) | 46,000,000 | ||
Premium Finance Agreement | Notes Payable, Other Payables | |||
Debt | |||
Aggregate principal outstanding | 19,000,000 | ||
Aggregate principal amount | $ 23,000,000 | ||
Stated interest rate as a percentage | 4.40% |
Debt - Outstanding Debt (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Debt | ||
Total debt | $ 966 | $ 946 |
Less: short-term debt and current portion of long-term debt | 24 | 4 |
Total long-term debt | 942 | 942 |
Term Loan Facility due August 2024 | ||
Debt | ||
Total debt | 354 | 356 |
Senior Secured Notes due July 2025 | ||
Debt | ||
Total debt | 219 | 217 |
Senior Unsecured Notes due July 2025 | ||
Debt | ||
Total debt | 373 | 372 |
Other | ||
Debt | ||
Total debt | $ 20 | $ 1 |
Derivative Instruments and Hedging Activities - Narrative (Details) |
1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|
May 31, 2022
USD ($)
Installment
derivative_instrument
|
Sep. 30, 2022
USD ($)
derivative_instrument
transaction
Installment
|
Sep. 30, 2021
USD ($)
|
Sep. 30, 2022
USD ($)
derivative_instrument
Installment
|
Sep. 30, 2021
USD ($)
|
Sep. 30, 2022
EUR (€)
derivative_instrument
Installment
|
May 31, 2022
EUR (€)
Installment
derivative_instrument
|
Dec. 31, 2021
USD ($)
|
Aug. 31, 2019
USD ($)
derivative_instrument
|
Aug. 31, 2019
EUR (€)
derivative_instrument
|
|
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||
Proceeds from the termination of cross currency swap contracts | $ 24,000,000 | $ 0 | ||||||||
Hedging instruments gain (loss) | $ (4,000,000) | $ 5,000,000 | (2,000,000) | 9,000,000 | ||||||
Designated as Hedges | ||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||
Accumulated other comprehensive loss to be reclassified over next twelve months | $ 0 | $ 0 | ||||||||
Cross currency interest rate contracts | Designated as Hedges | ||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||
Number of derivative instruments held | derivative_instrument | 3 | 3 | 3 | 3 | 3 | 3 | 3 | |||
Notional amount of hedged item | $ 200,000,000 | $ 200,000,000 | $ 200,000,000 | $ 200,000,000 | ||||||
Fixed interest rate of hedged item | 5.75% | 5.75% | 5.75% | 5.75% | 5.75% | 5.75% | 5.75% | |||
Notional amount of derivative | € | € 207,000,000 | € 188,000,000 | € 181,000,000 | |||||||
Weighted average interest rate | 4.11% | 4.30% | 4.30% | 4.30% | 4.11% | 3.73% | 3.73% | |||
Number of derivative instruments terminated | Installment | 3 | 3 | 3 | 3 | 3 | |||||
Proceeds from the termination of cross currency swap contracts | $ 8,000,000 | $ 16,000,000 | ||||||||
Number of transactions terminated | transaction | 4 | |||||||||
Number of new transactions | transaction | 4 | |||||||||
Hedging instruments gain (loss) | $ (2,000,000) | $ 9,000,000 | ||||||||
Cross currency interest rate contracts | Designated as Hedges | Other Noncurrent Liabilities | ||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||
Fair value of the hedged liability | $ (2,000,000) | (2,000,000) | $ 1,000,000 | |||||||
Forward foreign currency contracts | Not Designated as Hedges | ||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||
Notional amount of derivative | $ 77,000,000 | $ 77,000,000 | $ 68,000,000 | |||||||
Maturity period of spot or forward exchange rate contracts | 1 month |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
Dec. 31, 2019 |
|
Income Tax | ||||||
Income tax expense | $ 4 | $ 4 | $ 18 | $ 14 | ||
Valuation allowance on net deferred tax assets | 9 | 9 | ||||
United States | ||||||
Income Tax | ||||||
Aggregate income tax provision | $ 30 | |||||
Total liability | $ 21 | $ 21 | $ 21 |
Earnings Per Share - Schedule of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Basic and diluted loss from continuing operations: | ||||
Net loss attributable to Venator Materials PLC ordinary shareholders, Basic | $ (50) | $ (47) | $ 40 | $ (91) |
Net loss attributable to Venator Materials PLC ordinary shareholders, Diluted | $ (50) | $ (47) | $ 40 | $ (91) |
Denominator: | ||||
Weighted average shares outstanding, basic (in shares) | 108.0 | 107.3 | 107.8 | 107.2 |
Weighted average shares outstanding, diluted (in shares) | 108.0 | 107.3 | 107.8 | 107.2 |
Potential dilutive impact of share-based awards (in shares) | 0.0 | 0.2 | 0.1 | 0.3 |
Earnings Per Share - Narrative (Details) - shares shares in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Stock Compensation Plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computations of earnings per share (in shares) | 5 | 3 | 5 | 3 |
Commitments and Contingencies (Details) € in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2022
USD ($)
|
Sep. 30, 2022
USD ($)
|
Jun. 30, 2022
USD ($)
|
Sep. 30, 2021
USD ($)
|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2022
EUR (€)
claim
|
Sep. 30, 2021
USD ($)
|
Oct. 25, 2022
EUR (€)
|
Oct. 13, 2022
EUR (€)
|
|
Loss Contingencies [Line Items] | |||||||||
Other operating (income) expense | $ | $ 13 | $ (5) | $ 17 | $ (13) | |||||
Neste Engineering Services Arbitration | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency accrual | € | € 14 | ||||||||
Litigation settlement, amount awarded from other party | $ | $ 13 | ||||||||
Other operating (income) expense | $ | $ 13 | $ 10 | |||||||
Calais Pipeline Matter | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of pending claims | claim | 2 | ||||||||
Calais Pipeline Matter | The Region Hauts-de-France | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages sought | $ 13 | € 12 | |||||||
Gasum LNG Oy | Subsequent Event | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency accrual | € | € 33 | ||||||||
Termination fee due and outstanding | € | € 3 |
Environmental, Health and Safety Matters (Details) - USD ($) $ in Millions |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Site Contingency [Line Items] | |||
Capital expenditures for EHS matters | $ 10 | $ 12 | |
Environmental reserves | 4 | $ 10 | |
Harrisburg Remediation | |||
Site Contingency [Line Items] | |||
Environmental reserves | 2 | ||
Calais Remediation | |||
Site Contingency [Line Items] | |||
Environmental reserves | 1 | ||
Duisburg Remediation | |||
Site Contingency [Line Items] | |||
Environmental reserves | $ 1 |
Accumulated Other Comprehensive Loss - Other Comprehensive Income (Loss) (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Components of other comprehensive income | ||||||||||
Balance at the beginning of the period | $ 577,000,000 | $ 546,000,000 | $ 568,000,000 | $ 588,000,000 | $ 597,000,000 | $ 624,000,000 | $ 568,000,000 | $ 624,000,000 | ||
Other comprehensive (loss) income before reclassifications, gross | (191,000,000) | (21,000,000) | ||||||||
Tax expense | 0 | 0 | ||||||||
Amounts reclassified from accumulated other comprehensive loss, gross | 3,000,000 | 5,000,000 | ||||||||
Tax expense | 0 | 0 | ||||||||
Total other comprehensive loss, net of tax | (104,000,000) | (64,000,000) | (20,000,000) | (21,000,000) | 12,000,000 | (7,000,000) | (188,000,000) | (16,000,000) | ||
Balance at the end of the period | 425,000,000 | 577,000,000 | 546,000,000 | 521,000,000 | 588,000,000 | 597,000,000 | 425,000,000 | 521,000,000 | ||
Amounts attributable to Venator | ||||||||||
Components of other comprehensive income | ||||||||||
Balance at the beginning of the period | (398,000,000) | (334,000,000) | (314,000,000) | (324,000,000) | (336,000,000) | (329,000,000) | (314,000,000) | (329,000,000) | ||
Total other comprehensive loss, net of tax | (104,000,000) | (64,000,000) | (20,000,000) | (21,000,000) | 12,000,000 | (7,000,000) | ||||
Balance at the end of the period | (502,000,000) | $ (398,000,000) | (334,000,000) | (345,000,000) | $ (324,000,000) | (336,000,000) | (502,000,000) | (345,000,000) | ||
Amounts attributable to noncontrolling interests | ||||||||||
Components of other comprehensive income | ||||||||||
Balance at the beginning of the period | 0 | 0 | 0 | 0 | ||||||
Other comprehensive (loss) income before reclassifications, gross | 0 | 0 | ||||||||
Tax expense | 0 | 0 | ||||||||
Amounts reclassified from accumulated other comprehensive loss, gross | 0 | 0 | ||||||||
Tax expense | 0 | 0 | ||||||||
Total other comprehensive loss, net of tax | 0 | 0 | ||||||||
Balance at the end of the period | 0 | 0 | 0 | 0 | ||||||
Total | ||||||||||
Components of other comprehensive income | ||||||||||
Balance at the beginning of the period | (314,000,000) | (329,000,000) | (314,000,000) | (329,000,000) | ||||||
Other comprehensive (loss) income before reclassifications, gross | (191,000,000) | (21,000,000) | ||||||||
Tax expense | 0 | 0 | ||||||||
Amounts reclassified from accumulated other comprehensive loss, gross | 3,000,000 | 5,000,000 | ||||||||
Tax expense | 0 | 0 | ||||||||
Total other comprehensive loss, net of tax | (188,000,000) | (16,000,000) | ||||||||
Balance at the end of the period | (502,000,000) | (345,000,000) | (502,000,000) | (345,000,000) | ||||||
Foreign currency translation adjustment | ||||||||||
Components of other comprehensive income | ||||||||||
Balance at the beginning of the period | (56,000,000) | (19,000,000) | (56,000,000) | (19,000,000) | ||||||
Other comprehensive (loss) income before reclassifications, gross | (191,000,000) | (30,000,000) | ||||||||
Tax expense | 0 | 0 | ||||||||
Amounts reclassified from accumulated other comprehensive loss, gross | 0 | 0 | ||||||||
Tax expense | 0 | 0 | ||||||||
Total other comprehensive loss, net of tax | (191,000,000) | (30,000,000) | ||||||||
Balance at the end of the period | (247,000,000) | (49,000,000) | (247,000,000) | (49,000,000) | ||||||
AOCI tax | 0 | 0 | 0 | 0 | $ 0 | $ 0 | ||||
Pension and other postretirement benefits adjustments net of tax | ||||||||||
Components of other comprehensive income | ||||||||||
Balance at the beginning of the period | (253,000,000) | (306,000,000) | (253,000,000) | (306,000,000) | ||||||
Other comprehensive (loss) income before reclassifications, gross | 0 | 0 | ||||||||
Tax expense | 0 | 0 | ||||||||
Amounts reclassified from accumulated other comprehensive loss, gross | 3,000,000 | 5,000,000 | ||||||||
Tax expense | 0 | 0 | ||||||||
Total other comprehensive loss, net of tax | 3,000,000 | 5,000,000 | ||||||||
Balance at the end of the period | (250,000,000) | (301,000,000) | (250,000,000) | (301,000,000) | ||||||
AOCI tax | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | $ 50,000,000 | $ 50,000,000 | ||||
Other comprehensive income of unconsolidated affiliates | ||||||||||
Components of other comprehensive income | ||||||||||
Balance at the beginning of the period | (5,000,000) | (5,000,000) | (5,000,000) | (5,000,000) | ||||||
Other comprehensive (loss) income before reclassifications, gross | 2,000,000 | 0 | ||||||||
Tax expense | 0 | 0 | ||||||||
Amounts reclassified from accumulated other comprehensive loss, gross | 0 | 0 | ||||||||
Tax expense | 0 | 0 | ||||||||
Total other comprehensive loss, net of tax | 2,000,000 | 0 | ||||||||
Balance at the end of the period | (3,000,000) | (5,000,000) | (3,000,000) | (5,000,000) | ||||||
Hedging instruments | ||||||||||
Components of other comprehensive income | ||||||||||
Balance at the beginning of the period | $ 0 | $ 1,000,000 | 0 | 1,000,000 | ||||||
Other comprehensive (loss) income before reclassifications, gross | (2,000,000) | 9,000,000 | ||||||||
Tax expense | 0 | 0 | ||||||||
Amounts reclassified from accumulated other comprehensive loss, gross | 0 | 0 | ||||||||
Tax expense | 0 | 0 | ||||||||
Total other comprehensive loss, net of tax | (2,000,000) | 9,000,000 | ||||||||
Balance at the end of the period | $ (2,000,000) | $ 10,000,000 | $ (2,000,000) | $ 10,000,000 |
Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Reclassification from accumulated other comprehensive loss | ||||||||
Amortization of pension and other postretirement benefits: | $ 2 | $ 3 | $ 93 | $ 10 | ||||
Total before tax | (44) | (43) | 63 | (75) | ||||
Income tax expense | (4) | (4) | (18) | (14) | ||||
Total reclassifications for the period, net of tax | (48) | $ 95 | $ (2) | (47) | $ (22) | $ (20) | 45 | (89) |
Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Reclassification from accumulated other comprehensive loss | ||||||||
Income tax expense | 0 | 0 | 0 | 0 | ||||
Total reclassifications for the period, net of tax | 1 | 3 | 3 | 10 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Pension and other postretirement benefits adjustments net of tax | ||||||||
Reclassification from accumulated other comprehensive loss | ||||||||
Total before tax | 1 | 3 | 3 | 10 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Actuarial loss | ||||||||
Reclassification from accumulated other comprehensive loss | ||||||||
Amortization of pension and other postretirement benefits: | 1 | 3 | 2 | 10 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Prior service credit | ||||||||
Reclassification from accumulated other comprehensive loss | ||||||||
Amortization of pension and other postretirement benefits: | $ 0 | $ 0 | $ 1 | $ 0 |
Operating Segment Information (Details) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2022
USD ($)
|
Jun. 30, 2022
USD ($)
|
Mar. 31, 2022
USD ($)
|
Sep. 30, 2021
USD ($)
|
Jun. 30, 2021
USD ($)
|
Mar. 31, 2021
USD ($)
|
Sep. 30, 2022
USD ($)
segment
|
Sep. 30, 2021
USD ($)
|
|
OPERATING SEGMENT INFORMATION | ||||||||
Number of reportable segments | segment | 2 | |||||||
Revenues: | ||||||||
Revenues | $ 506 | $ 557 | $ 1,807 | $ 1,677 | ||||
Segment Adjusted EBITDA | ||||||||
Segment adjusted EBITDA | (8) | 48 | 110 | 140 | ||||
Reconciliation of adjusted EBITDA to net (loss) income: | ||||||||
Interest expense | (20) | (18) | (55) | (53) | ||||
Interest income | 4 | 3 | 11 | 9 | ||||
Income tax expense | (4) | (4) | (18) | (14) | ||||
Depreciation and amortization | (27) | (29) | (84) | (89) | ||||
Net income attributable to noncontrolling interests | 2 | 0 | 5 | 2 | ||||
Other adjustments: | ||||||||
Gain (loss) on disposition of business/assets | 0 | 0 | 1 | (2) | ||||
Certain legal expenses/settlements | 0 | (3) | 83 | (4) | ||||
Amortization of pension and postretirement actuarial losses | (1) | (3) | (2) | (9) | ||||
Net plant incident credits (costs) | 11 | (6) | 15 | (9) | ||||
Restructuring, impairment and plant closing and transition costs | (5) | (35) | (21) | (60) | ||||
Net (loss) income | (48) | $ 95 | $ (2) | (47) | $ (22) | $ (20) | 45 | (89) |
Titanium Dioxide | ||||||||
Revenues: | ||||||||
Revenues | 361 | 430 | 1,357 | 1,259 | ||||
Performance Additives | ||||||||
Revenues: | ||||||||
Revenues | 145 | 127 | 450 | 418 | ||||
Operating segments | ||||||||
Segment Adjusted EBITDA | ||||||||
Segment adjusted EBITDA | 4 | 59 | 141 | 176 | ||||
Operating segments | Titanium Dioxide | ||||||||
Revenues: | ||||||||
Revenues | 361 | 430 | 1,357 | 1,259 | ||||
Segment Adjusted EBITDA | ||||||||
Segment adjusted EBITDA | (5) | 54 | 93 | 130 | ||||
Operating segments | Performance Additives | ||||||||
Revenues: | ||||||||
Revenues | 145 | 127 | 450 | 418 | ||||
Segment Adjusted EBITDA | ||||||||
Segment adjusted EBITDA | 9 | 5 | 48 | 46 | ||||
Corporate and other | ||||||||
Segment Adjusted EBITDA | ||||||||
Segment adjusted EBITDA | $ (12) | $ (11) | $ (31) | $ (36) |
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