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Net Sales
 3 Months Ended
Mar. 31, 2024
Revenue from Contract With Customer [Abstract]  
Net Sales

Note 3. Net Sales

 

Disaggregation of Net Sales

 

The following table sets forth a disaggregation of the Company’s net sales by geographic region and segment for the three months ended March 31, 2024 and 2023.

 

 

 

Three Months Ended March 31,

 

 

 

2024

 

 

2023

 

Net sales by geographic region (1)

 

 

 

 

 

 

North America:

 

 

 

 

 

 

Titanium Technologies

 

$

246

 

 

$

262

 

Thermal & Specialized Solutions

 

 

266

 

 

 

284

 

Advanced Performance Materials

 

 

121

 

 

 

152

 

Other Segment

 

 

9

 

 

 

22

 

Total North America

 

 

642

 

 

 

720

 

Asia Pacific:

 

 

 

 

 

 

Titanium Technologies

 

 

144

 

 

 

147

 

Thermal & Specialized Solutions

 

 

39

 

 

 

53

 

Advanced Performance Materials

 

 

105

 

 

 

146

 

Other Segment

 

 

3

 

 

 

2

 

Total Asia Pacific

 

 

291

 

 

 

348

 

Europe, the Middle East, and Africa:

 

 

 

 

 

 

Titanium Technologies

 

 

124

 

 

 

133

 

Thermal & Specialized Solutions

 

 

92

 

 

 

100

 

Advanced Performance Materials

 

 

62

 

 

 

76

 

Other Segment

 

 

2

 

 

 

5

 

Total Europe, the Middle East, and Africa

 

 

280

 

 

 

314

 

Latin America (2):

 

 

 

 

 

 

Titanium Technologies

 

 

74

 

 

 

90

 

Thermal & Specialized Solutions

 

 

52

 

 

 

49

 

Advanced Performance Materials

 

 

11

 

 

 

14

 

Other Segment

 

 

—

 

 

 

1

 

Total Latin America

 

 

137

 

 

 

154

 

Total net sales

 

$

1,350

 

 

$

1,536

 
(1)
Net sales are attributed to countries based on customer location.
(2)
Latin America includes Mexico.

 

 

The following table sets forth a disaggregation of the Company’s net sales by product group and segment for the three months ended March 31, 2024 and 2023.

 

 

 

Three Months Ended March 31,

 

 

 

2024

 

 

2023

 

Net sales by product group and segment

 

 

 

 

 

 

Titanium dioxide and other minerals

 

$

588

 

 

$

632

 

Total Titanium Technologies

 

 

588

 

 

 

632

 

Refrigerants

 

 

373

 

 

 

385

 

Foam, propellants, and other

 

 

76

 

 

 

101

 

Total Thermal & Specialized Solutions

 

 

449

 

 

 

486

 

Advanced materials

 

 

186

 

 

 

244

 

Performance solutions

 

 

113

 

 

 

144

 

Total Advanced Performance Materials

 

 

299

 

 

 

388

 

Performance chemicals and intermediates

 

 

14

 

 

 

30

 

Total Other Segment

 

 

14

 

 

 

30

 

Total net sales

 

$

1,350

 

 

$

1,536

 

 

Substantially all of the Company’s net sales are derived from goods and services transferred at a point in time.

 

Contract Balances

 

The Company’s assets and liabilities from contracts with customers constitute accounts receivable - trade, deferred revenue, and customer rebates. An amount for accounts receivable - trade is recorded when the right to consideration under a contract becomes unconditional. An amount for deferred revenue is recorded when consideration is received prior to the conclusion that a contract exists, or when a customer transfers consideration prior to the Company satisfying its performance obligations under a contract. Customer rebates represent an expected refund liability to a customer based on a contract. In contracts with customers where a rebate is offered, it is generally applied retroactively based on the achievement of a certain sales threshold. As revenue is recognized, the Company estimates whether or not the sales threshold will be achieved to determine the amount of variable consideration to include in the transaction price.

 

The following table sets forth the Company’s contract balances from contracts with customers at March 31, 2024 and December 31, 2023.

 

 

 

March 31, 2024

 

 

December 31, 2023

 

Contract assets:

 

 

 

 

 

 

Accounts receivable - trade, net (Note 7)

 

$

692

 

 

$

509

 

Contract liabilities:

 

 

 

 

 

 

Deferred revenue

 

$

14

 

 

$

16

 

Customer rebates (Note 13)

 

 

35

 

 

 

78

 

 

Changes in the Company’s deferred revenue balances resulting from additions for advance payments and deductions for amounts recognized in net sales during the three months ended March 31, 2024 and 2023 were not significant. For the three months ended March 31, 2024 and 2023, the amount of net sales recognized from performance obligations satisfied in prior periods (e.g., due to changes in transaction price) were not significant.

 

There were no material contract asset balances or capitalized costs associated with obtaining or fulfilling customer contracts as of March 31, 2024 and December 31, 2023.

 

 

Remaining Performance Obligations

 

Certain of the Company’s master services agreements or other arrangements contain take-or-pay clauses, whereby customers are required to purchase a fixed minimum quantity of product during a specified period, or pay the Company for such orders, even if not requested by the customer. The Company considers these take-or-pay clauses to be an enforceable contract, and as such, the legally-enforceable minimum amounts under such an arrangement are considered to be outstanding performance obligations on contracts with an original expected duration greater than one year. At March 31, 2024, Chemours had $332 of remaining performance obligations. The Company expects to recognize approximately 27% of its remaining performance obligations as revenue in 2024, approximately 25% as revenue in 2025, and approximately 24% as revenue for each of the years 2026 and 2027. The Company applies the allowable practical expedient and does not include remaining performance obligations that have original expected durations of one year or less, or amounts for variable consideration allocated to wholly-unsatisfied performance obligations or wholly-unsatisfied distinct goods that form part of a single performance obligation, if any. Amounts for contract renewals that are not yet exercised by March 31, 2024 are also excluded.