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Geographic and Segment Information
 12 Months Ended
Dec. 31, 2020
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 for the years ended and property, plant, and equipment, net as of December 31, 2020, 2019, and 2018.

 

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

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

 

$

1,914

 

 

$

2,461

 

 

$

2,144

 

 

$

2,533

 

 

$

2,378

 

 

$

2,279

 

Asia Pacific

 

 

1,384

 

 

 

121

 

 

 

1,543

 

 

 

121

 

 

 

1,720

 

 

 

124

 

Europe, the Middle East, and Africa

 

 

1,086

 

 

 

324

 

 

 

1,163

 

 

 

294

 

 

 

1,685

 

 

 

293

 

Latin America (2)

 

 

585

 

 

 

568

 

 

 

676

 

 

 

611

 

 

 

855

 

 

 

595

 

Total

 

$

4,969

 

 

$

3,474

 

 

$

5,526

 

 

$

3,559

 

 

$

6,638

 

 

$

3,291

 

 

(1)

Net sales are attributed to countries based on customer location.

 

(2)

Latin America includes Mexico.  

 

Segment Information

 

Chemours’ operations consist of four reportable segments based on similar economic characteristics, the nature of products and production processes, end-use markets, channels of distribution, and regulatory environments: Titanium Technologies, Thermal & Specialized Solutions, Advanced Performance Materials, and Chemical Solutions. 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.

 

During the fourth quarter of 2020, the Company changed the level of detail at which its CODM regularly reviews and manages certain of its businesses, resulting in the bifurcation of its former Fluoroproducts segment into two standalone reportable segments: Thermal & Specialized Solutions (formerly Fluorochemicals) and Advanced Performance Materials (formerly Fluoropolymers). This change allows Chemours to enhance its customer focus and better align its business models, resources, and cost structure to the specific current and future secular growth drivers of each business, while providing increased transparency to the Company’s shareholders. The historical segment information has been recast to conform to the current segment structure.

 

Adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”) is the primary measure of segment profitability used by the Company’s CODM and is defined as income (loss) before income taxes, excluding the following:

 

•

interest expense, depreciation, and amortization;

 

•

non-operating pension and other post-retirement employee benefit costs, which represents the 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;

 

•

(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, 2020, 2019, and 2018.

 

Year Ended December 31,

 

Titanium Technologies

 

 

Thermal & Specialized Solutions

 

 

Advanced Performance Materials

 

 

Chemical Solutions

 

 

Segment Total

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to external customers (1)

 

$

2,402

 

 

$

1,105

 

 

$

1,104

 

 

$

358

 

 

$

4,969

 

Adjusted EBITDA

 

 

510

 

 

 

354

 

 

 

126

 

 

 

73

 

 

 

1,063

 

Depreciation and amortization

 

 

128

 

 

 

53

 

 

 

88

 

 

 

21

 

 

 

290

 

Equity in earnings of affiliates

 

 

—

 

 

 

6

 

 

 

17

 

 

 

—

 

 

 

23

 

Total assets

 

 

2,130

 

 

 

1,041

 

 

 

1,520

 

 

 

531

 

 

 

5,222

 

Investments in affiliates

 

 

—

 

 

 

66

 

 

 

101

 

 

 

—

 

 

 

167

 

Purchases of property, plant, and equipment

 

 

89

 

 

 

28

 

 

 

109

 

 

 

25

 

 

 

251

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to external customers (1)

 

$

2,345

 

 

$

1,318

 

 

$

1,330

 

 

$

533

 

 

$

5,526

 

Adjusted EBITDA

 

 

505

 

 

 

398

 

 

 

180

 

 

 

80

 

 

 

1,163

 

Depreciation and amortization

 

 

121

 

 

 

52

 

 

 

84

 

 

 

22

 

 

 

279

 

Equity in earnings of affiliates

 

 

—

 

 

 

11

 

 

 

18

 

 

 

—

 

 

 

29

 

Total assets

 

 

2,291

 

 

 

1,061

 

 

 

1,521

 

 

 

574

 

 

 

5,447

 

Investments in affiliates

 

 

—

 

 

 

64

 

 

 

98

 

 

 

—

 

 

 

162

 

Purchases of property, plant, and equipment

 

 

121

 

 

 

32

 

 

 

169

 

 

 

40

 

 

 

362

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to external customers (1)

 

$

3,174

 

 

$

1,497

 

 

$

1,365

 

 

$

602

 

 

$

6,638

 

Adjusted EBITDA

 

 

1,055

 

 

 

542

 

 

 

241

 

 

 

64

 

 

 

1,902

 

Depreciation and amortization

 

 

119

 

 

 

37

 

 

 

80

 

 

 

20

 

 

 

256

 

Equity in earnings of affiliates

 

 

—

 

 

 

17

 

 

 

26

 

 

 

—

 

 

 

43

 

Total assets

 

 

2,354

 

 

 

1,187

 

 

 

1,557

 

 

 

623

 

 

 

5,721

 

Investments in affiliates

 

 

—

 

 

 

61

 

 

 

99

 

 

 

—

 

 

 

160

 

Purchases of property, plant, and equipment

 

 

91

 

 

 

156

 

 

 

118

 

 

 

75

 

 

 

440

 

 

(1)

Segment net sales to external customers are provided by product group in “Note 5 – Net Sales”.

 

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.

 

Year Ended December 31,

 

Segment Total

 

 

Corporate and Other

 

 

Total Consolidated

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

290

 

 

$

30

 

 

$

320

 

Total assets

 

 

5,222

 

 

 

1,860

 

 

 

7,082

 

Purchases of property, plant, and equipment

 

 

251

 

 

 

16

 

 

 

267

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

279

 

 

$

32

 

 

$

311

 

Total assets

 

 

5,447

 

 

 

1,811

 

 

 

7,258

 

Purchases of property, plant, and equipment

 

 

362

 

 

 

119

 

 

 

481

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

256

 

 

$

28

 

 

$

284

 

Total assets

 

 

5,721

 

 

 

1,641

 

 

 

7,362

 

Purchases of property, plant, and equipment

 

 

440

 

 

 

58

 

 

 

498

 

 


The following table sets forth a reconciliation of Segment Adjusted EBITDA to the Company’s consolidated income (loss) before income taxes for the years ended December 31, 2020, 2019, and 2018.

 

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

Segment Adjusted EBITDA

 

$

1,063

 

 

$

1,163

 

 

$

1,902

 

Corporate and Other expenses (excluding items below)

 

 

(184

)

 

 

(143

)

 

 

(162

)

Interest expense, net

 

 

(210

)

 

 

(208

)

 

 

(195

)

Depreciation and amortization

 

 

(320

)

 

 

(311

)

 

 

(284

)

Non-operating pension and other post-retirement employee benefit income (cost) (1)

 

 

1

 

 

 

(368

)

 

 

27

 

Exchange (losses) gains, net

 

 

(26

)

 

 

(2

)

 

 

1

 

Restructuring, asset-related, and other charges (2)

 

 

(80

)

 

 

(87

)

 

 

(49

)

Loss on extinguishment of debt

 

 

(22

)

 

 

—

 

 

 

(38

)

Gain on sales of assets and businesses (3)

 

 

8

 

 

 

10

 

 

 

45

 

Transaction costs (4)

 

 

(2

)

 

 

(3

)

 

 

(9

)

Legal and environmental charges (5)

 

 

(49

)

 

 

(175

)

 

 

(82

)

Other charges

 

 

—

 

 

 

—

 

 

 

(1

)

Income (loss) before income taxes

 

$

179

 

 

$

(124

)

 

$

1,155

 

 

(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. Refer to “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, 2020 includes a gain of $6 recognized in connection with the sale of the Company’s Oakley, California site. The year ended December 31, 2019 includes a non-cash gain of $9 recognized in connection with the sale of the Company’s Repauno, New Jersey site. The year ended December 31, 2018 includes gains of $3 and $42 recognized in connection with the sales of the Company’s East Chicago, Indiana and Linden, New Jersey sites, respectively.

 

 

(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 pertain to litigation settlements, PFOA drinking water treatment accruals, and other legal charges. The year ended December 31, 2020 includes $29 incurred in connection with the Company’s portion of the costs to settle PFOA multi-district litigation in Ohio. Environmental charges pertain to management’s assessment of estimated liabilities associated with on-site remediation, off-site groundwater remediation, and toxicity studies related to Fayetteville. The year ended December 31, 2020 includes $5 primarily related to detailed engineering design for on-site remediation projects at Fayetteville, as well as $8 based on the aforementioned assessment associated with certain estimated liabilities at Fayetteville. The year ended December 31, 2019 includes $168 in additional charges related to the approved final Consent Order associated with certain matters at Fayetteville. The year ended December 31, 2018 includes $63 in additional charges for the estimated liability associated with Fayetteville. Refer to “Note 22 – Commitments and Contingent Liabilities” for further details.