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Geographic and Segment Information | 12 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
Geographic and Segment Information | Note 28. Geographic and Segment Information Geographic Information The following table sets forth the geographic locations of the Company’s net sales and property, plant, and equipment, net as of, and for the years ended December 31, 2019, 2018, and 2017.
|  | Year Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
|  | Net Sales (1) |  |  | Property, Plant, and Equipment, Net |  |  | Net Sales (1) |  |  | Property, Plant, and Equipment, Net |  |  | Net Sales (1) |  |  | Property, Plant, and Equipment, Net |
North America |  | $ | 2,144 |  |  | $ | 2,533 |  |  | $ | 2,378 |  |  | $ | 2,279 |  |  | $ | 2,255 |  |  | $ | 2,018 |
Asia Pacific |  |  | 1,543 |  |  |  | 121 |  |  |  | 1,720 |  |  |  | 124 |  |  |  | 1,593 |  |  |  | 131 |
Europe, the Middle East, and Africa |  |  | 1,163 |  |  |  | 294 |  |  |  | 1,685 |  |  |  | 293 |  |  |  | 1,506 |  |  |  | 302 |
Latin America (2) |  |  | 676 |  |  |  | 611 |  |  |  | 855 |  |  |  | 595 |  |  |  | 829 |  |  |  | 557 |
Total |  | $ | 5,526 |  |  | $ | 3,559 |  |  | $ | 6,638 |  |  | $ | 3,291 |  |  | $ | 6,183 |  |  | $ | 3,008 |
| (1) | Net sales are attributed to countries based on customer location.
| (2) | Latin America includes Mexico.
Segment Information Chemours’ operations consist of three reportable segments based on similar economic characteristics, the nature of products and production processes, end-use markets, channels of distribution, and regulatory environments: Fluoroproducts, Chemical Solutions, and Titanium Technologies. Corporate costs and certain legal and environmental expenses, stock-based compensation expenses, and foreign exchange gains and losses arising from the remeasurement of balances in currencies other than the functional currency of the Company’s legal entities are reflected in Corporate and Other. Segment net sales include transfers to another reportable segment. Certain products are transferred between segments on a basis intended to reflect, as nearly as practicable, the market value of the products. These product transfers were limited and were not significant for each of the periods presented. Depreciation and amortization includes depreciation on R&D facilities and amortization of other intangible assets, excluding any write-downs of assets. Segment net assets include net working capital, net property, plant, and equipment, and other non-current operating assets and liabilities of the segment. This is the measure of segment assets reviewed by the Company’s Chief Operating Decision Maker (“CODM”). Adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”) is the primary measure of segment profitability used by the CODM and is defined as income (loss) before income taxes, excluding the following:
| • | interest expense, depreciation, and amortization;
| • | non-operating pension and other post-retirement employee benefit costs, which represent the components of net periodic pension (income) costs excluding the service cost component;
| • | exchange (gains) losses included in other income (expense), net;
| • | restructuring, asset-related, and other charges;
| • | asset impairments;
| • | (gains) losses on sales of assets and businesses; and,
| • | other items not considered indicative of the Company’s ongoing operational performance and expected to occur infrequently.
The following table sets forth certain summary financial information for the Company’s reportable segments as of, and for the years ended December 31, 2019, 2018, and 2017.
Year Ended December 31, |  | Fluoroproducts |  |  | Chemical Solutions |  |  | Titanium Technologies |  |  | Segment Total |  |
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales to external customers |  | $ | 2,648 |  |  | $ | 533 |  |  | $ | 2,345 |  |  | $ | 5,526 |  |
Adjusted EBITDA |  |  | 578 |  |  |  | 80 |  |  |  | 505 |  |  |  | 1,163 |  |
Depreciation and amortization |  |  | 136 |  |  |  | 22 |  |  |  | 121 |  |  |  | 279 |  |
Equity in earnings of affiliates |  |  | 29 |  |  |  | — |  |  |  | — |  |  |  | 29 |  |
Total assets |  |  | 2,582 |  |  |  | 574 |  |  |  | 2,291 |  |  |  | 5,447 |  |
Net assets |  |  | 2,283 |  |  |  | 495 |  |  |  | 1,296 |  |  |  | 4,074 |  |
Investments in affiliates |  |  | 162 |  |  |  | — |  |  |  | — |  |  |  | 162 |  |
Purchases of property, plant, and equipment |  |  | 201 |  |  |  | 40 |  |  |  | 121 |  |  |  | 362 |  |
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales to external customers |  | $ | 2,862 |  |  | $ | 602 |  |  | $ | 3,174 |  |  | $ | 6,638 |  |
Adjusted EBITDA |  |  | 783 |  |  |  | 64 |  |  |  | 1,055 |  |  |  | 1,902 |  |
Depreciation and amortization |  |  | 117 |  |  |  | 20 |  |  |  | 119 |  |  |  | 256 |  |
Equity in earnings of affiliates |  |  | 43 |  |  |  | — |  |  |  | — |  |  |  | 43 |  |
Total assets |  |  | 2,744 |  |  |  | 623 |  |  |  | 2,354 |  |  |  | 5,721 |  |
Net assets |  |  | 2,309 |  |  |  | 506 |  |  |  | 1,487 |  |  |  | 4,302 |  |
Investments in affiliates |  |  | 160 |  |  |  | — |  |  |  | — |  |  |  | 160 |  |
Purchases of property, plant, and equipment |  |  | 274 |  |  |  | 75 |  |  |  | 91 |  |  |  | 440 |  |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales to external customers |  | $ | 2,654 |  |  | $ | 571 |  |  | $ | 2,958 |  |  | $ | 6,183 |  |
Adjusted EBITDA |  |  | 669 |  |  |  | 57 |  |  |  | 862 |  |  |  | 1,588 |  |
Depreciation and amortization |  |  | 109 |  |  |  | 18 |  |  |  | 118 |  |  |  | 245 |  |
Equity in earnings of affiliates |  |  | 33 |  |  |  | — |  |  |  | — |  |  |  | 33 |  |
Total assets |  |  | 2,311 |  |  |  | 581 |  |  |  | 2,502 |  |  |  | 5,394 |  |
Net assets |  |  | 1,842 |  |  |  | 460 |  |  |  | 1,785 |  |  |  | 4,087 |  |
Investments in affiliates |  |  | 173 |  |  |  | — |  |  |  | — |  |  |  | 173 |  |
Purchases of property, plant, and equipment |  |  | 249 |  |  |  | 65 |  |  |  | 65 |  |  |  | 379 |  |
The following table sets forth a reconciliation for instances in which the above summary financial information for the Company’s reportable segments does not sum to consolidated amounts. A reconciliation of Segment Adjusted EBITDA to consolidated results can be found in the table immediately thereafter.
Year Ended December 31, |  | Segment Total |  |  | Corporate and Other |  |  | Total Consolidated |
2019 |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 279 |  |  |  | 32 |  |  |  | 311 |
Total assets |  |  | 5,447 |  |  |  | 1,811 |  |  |  | 7,258 |
Net assets |  |  | 4,074 |  |  |  | (3,379 | ) |  |  | 695 |
Purchases of property, plant, and equipment |  |  | 362 |  |  |  | 119 |  |  |  | 481 |
2018 |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 256 |  |  |  | 28 |  |  |  | 284 |
Total assets |  |  | 5,721 |  |  |  | 1,641 |  |  |  | 7,362 |
Net assets |  |  | 4,302 |  |  |  | (3,282 | ) |  |  | 1,020 |
Purchases of property, plant, and equipment |  |  | 440 |  |  |  | 58 |  |  |  | 498 |
2017 |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 245 |  |  |  | 28 |  |  |  | 273 |
Total assets |  |  | 5,394 |  |  |  | 1,899 |  |  |  | 7,293 |
Net assets |  |  | 4,087 |  |  |  | (3,222 | ) |  |  | 865 |
Purchases of property, plant, and equipment |  |  | 379 |  |  |  | 32 |  |  |  | 411 |
The following table sets forth a reconciliation of Segment Adjusted EBITDA to the Company’s consolidated net income (loss) before income taxes for the years ended December 31, 2019, 2018, and 2017.
|  | Year Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Segment Adjusted EBITDA |  | $ | 1,163 |  |  | $ | 1,902 |  |  | $ | 1,588 |
Corporate and Other Adjusted EBITDA |  |  | (143 | ) |  |  | (162 | ) |  | $ | (166 | )
Interest expense, net |  |  | (208 | ) |  |  | (195 | ) |  |  | (214 | )
Depreciation and amortization |  |  | (311 | ) |  |  | (284 | ) |  |  | (273 | )
Non-operating pension and other post-retirement employee benefit (cost) income (1) |  |  | (368 | ) |  |  | 27 |  |  |  | 34 |
Exchange (losses) gains, net |  |  | (2 | ) |  |  | 1 |  |  |  | 3 |
Restructuring, asset-related, and other charges (2) |  |  | (87 | ) |  |  | (49 | ) |  |  | (57 | )
Loss on extinguishment of debt |  |  | — |  |  |  | (38 | ) |  |  | (1 | )
Gain on sales of assets and businesses (3) |  |  | 10 |  |  |  | 45 |  |  |  | 22 |
Transaction costs (4) |  |  | (3 | ) |  |  | (9 | ) |  |  | (3 | )
Legal and environmental charges (5) |  |  | (175 | ) |  |  | (82 | ) |  |  | (9 | )
Other charges |  |  | — |  |  |  | (1 | ) |  |  | (12 | )
(Loss) income before income taxes |  | $ | (124 | ) |  | $ | 1,155 |  |  | $ | 912 |
| (1) | The year ended December 31, 2019 includes a $380 settlement loss related to a significant portion of the Company’s Netherlands pension plan, specific to the vested pension benefits of the inactive participants. See “Note 27 – Long-term Employee Benefits” for further details. |
| (2) | Includes restructuring, asset-related, and other charges, which are discussed in further detail in “Note 7 – Restructuring, Asset-related, and Other Charges.” |
| (3) | The year ended December 31, 2019, included a non-cash gain of $9 associated with the sale of the Company’s Repauno, New Jersey site. The year ended December 31, 2018, included gains of $3 and $42 associated with the sales of the Company’s East Chicago, Indiana and Linden, New Jersey sites, respectively. The year ended December 31, 2017 included gains of $13 and $12 associated with the sale of the Company’s land in Repauno, New Jersey that was previously deferred and realized upon meeting certain milestones, and for the sale of its Edge Moor, Delaware plant site, respectively, net of certain losses on other disposals. |
| (4) | Includes costs associated with the Company’s debt transactions, as well as accounting, legal, and bankers’ transaction costs incurred in connection with the Company’s strategic initiatives. |
| (5) | Legal charges pertains to litigation settlements, PFOA drinking water treatment accruals, and other legal charges. Environmental charges pertains to estimated liabilities associated with on-site remediation, off-site groundwater remediation, and toxicity studies related to Fayetteville. The year ended December 31, 2019 included $168 in additional charges for the approved final Consent Order associated with certain matters at Fayetteville. The year ended December 31, 2018 included $63 in additional charges for the estimated liability associated with Fayetteville. See “Note 22 – Commitments and Contingent Liabilities” for further details. |
The following table sets forth the Company’s net sales to external customers by product group for the years ended December 31, 2019, 2018, and 2017.
|  | Year Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Fluorochemicals |  | $ | 1,318 |  |  | $ | 1,497 |  |  | $ | 1,378 |
Fluoropolymers |  |  | 1,330 |  |  |  | 1,365 |  |  |  | 1,276 |
Mining solutions |  |  | 268 |  |  |  | 289 |  |  |  | 261 |
Performance chemicals and intermediates |  |  | 265 |  |  |  | 313 |  |  |  | 306 |
Titanium dioxide and other minerals |  |  | 2,345 |  |  |  | 3,174 |  |  |  | 2,958 |
Divested businesses (1) |  |  | — |  |  |  | — |  |  |  | 4 |
Total net sales |  | $ | 5,526 |  |  | $ | 6,638 |  |  | $ | 6,183 |
| (1) | Inclusive of the Company’s C&D and Sulfur businesses, as well as its Aniline facility in Beaumont, Texas, which were all sold in 2016.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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