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Long-term Employee Benefits | 12 Months Ended
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Dec. 31, 2024
Retirement Benefits, Description [Abstract] |
Long-term Employee Benefits | 27. Long-term Employee Benefits Plans Covering Employees in the U.S. Chemours established a defined contribution plan, which covered all eligible U.S. employees. The purpose of the plan is to encourage employees to save for their future retirement needs. The plan is a tax-qualified contributory profit-sharing plan, with cash or deferred arrangement, and any eligible employee of Chemours may participate. Chemours matches 100% of the first 6% of the employee’s contribution election, and the plan’s matching contributions vest immediately upon contribution. In 2021, the Company enhanced its previous discretionary retirement savings contribution to provide eligible employees with a guaranteed annual contribution ranging from 1% to 3% for the first $0.1 of base salary based on age and years of service. Plans Covering Employees Outside the U.S. Pension coverage for employees of Chemours’ non-U.S. subsidiaries is provided, to the extent deemed appropriate, through separate plans established after the Separation and comparable to the EID plans in those countries. Obligations under such plans are either funded by depositing funds with trustees, covered by insurance contracts, or unfunded. The following table sets forth the Company’s net periodic pension income and amounts recognized in other comprehensive income (loss) for the years ended December 31, 2024, 2023 and 2022.
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Service cost |  | $ | (9 | ) |  | $ | (9 | ) |  | $ | (14 | )
Interest cost |  |  | (14 | ) |  |  | (15 | ) |  |  | (7 | )
Expected return on plan assets |  |  | 22 |  |  |  | 20 |  |  |  | 18 |
Amortization of actuarial loss |  |  | (8 | ) |  |  | (9 | ) |  |  | (8 | )
Amortization of prior service gain |  |  | 2 |  |  |  | 3 |  |  |  | 2 |
Curtailment/settlement gain |  |  | 1 |  |  |  | 1 |  |  |  | — |
Total net periodic pension cost |  | $ | (6 | ) |  | $ | (9 | ) |  | $ | (9 | )
Net gain (loss) |  | $ | 35 |  |  | $ | (4 | ) |  | $ | (2 | )
Prior service benefit |  |  | 1 |  |  |  | — |  |  |  | 2 |
Amortization of actuarial loss |  |  | 8 |  |  |  | 9 |  |  |  | 8 |
Amortization of prior service gain |  |  | (2 | ) |  |  | (3 | ) |  |  | (2 | )
Recognition of curtailment/settlement gain |  |  | (1 | ) |  |  | (1 | ) |  |  | — |
Curtailment gain |  |  | 2 |  |  |  | 11 |  |  |  | — |
Effect of foreign exchange rates |  |  | 4 |  |  |  | (3 | ) |  |  | 7 |
Benefit recognized in other comprehensive income |  |  | 47 |  |  |  | 9 |  |  |  | 13 |
Total changes in plan assets and benefit obligations recognized in other comprehensive income |  | $ | 41 |  |  | $ | — |  |  | $ | 4 |
During the third quarter of 2023, the Company announced the closure of its manufacturing site in Kuan Yin, Taiwan, which resulted in employment termination of substantially all of the employees based in Kuan Yin, beginning in the fourth quarter of 2023 and expected to be completed by the second quarter of 2024. The employee terminations related to the shutdown meets the definition of a plan curtailment event by eliminating the additional accrual of defined benefits for impacted employees. As a result of the curtailment, the Company remeasured its Taiwan projected pension obligation and recorded a $1 mark-to-market loss on remeasurement of the pension liability as a result of a decrease in discount rates since December 31, 2022, and recorded a reduction in the projected benefit obligation of $11 which was recognized in accumulated other comprehensive income. The $11 curtailment gain, together with the existing $9 of plan net losses in accumulated other comprehensive income, will be amortized to the consolidated statements of operations as the impacted employees are terminated from the plan. For each of the years ended December 31, 2024 and 2023, the Company amortized $1 of net curtailment gain to net periodic pension cost. The following table sets forth the pre-tax amounts recognized in accumulated other comprehensive loss at years ended December 31, 2024, 2023 and 2022.
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Net loss |  | $ | 73 |  |  | $ | 123 |  |  | $ | 132 |
Prior service credit |  |  | (5 | ) |  |  | (7 | ) |  |  | (9 | )
Total amount recognized in accumulated other comprehensive loss |  | $ | 68 |  |  | $ | 116 |  |  | $ | 123 |
The following table sets forth summarized information on the Company’s pension plans at December 31, 2024 and 2023.
|  | December 31, |
|  | 2024 |  |  | 2023 |
Change in benefit obligation: |  |  |  |  |  |
Benefit obligation at beginning of year |  | $ | 437 |  |  | $ | 407 |
Service cost |  |  | 9 |  |  |  | 9 |
Interest cost |  |  | 14 |  |  |  | 15 |
Plan participants’ contributions |  |  | 2 |  |  |  | 2 |
Actuarial loss (gain) |  |  | (9 | ) |  |  | 26 |
Benefits paid |  |  | (7 | ) |  |  | (9 | )
Plan amendments |  |  | — |  |  |  | — |
Curtailment |  |  | (2 | ) |  |  | (11 | )
Settlements and transfers |  |  | (28 | ) |  |  | (17 | )
Currency translation |  |  | (28 | ) |  |  | 15 |
Benefit obligation at end of year |  |  | 388 |  |  |  | 437 |
Change in plan assets: |  |  |  |  |  |
Fair value of plan assets at beginning of year |  |  | 464 |  |  |  | 422 |
Actual return on plan assets |  |  | 47 |  |  |  | 41 |
Employer contributions |  |  | 12 |  |  |  | 10 |
Plan participants’ contributions |  |  | 2 |  |  |  | 2 |
Benefits paid |  |  | (7 | ) |  |  | (9 | )
Settlements and transfers |  |  | (28 | ) |  |  | (17 | )
Currency translation |  |  | (28 | ) |  |  | 15 |
Fair value of plan assets at end of year |  |  | 462 |  |  |  | 464 |
Total funded status at end of year |  | $ | 74 |  |  | $ | 27 |
The following table sets forth the net amounts recognized in the Company’s consolidated balance sheets at December 31, 2024 and 2023.
|  | December 31, |
|  | 2024 |  |  | 2023 |
Non-current assets |  | $ | 97 |  |  | $ | 57 |
Current liabilities |  |  | (1 | ) |  |  | (1 | )
Non-current liabilities |  |  | (22 | ) |  |  | (29 | )
Total net amount recognized |  | $ | 74 |  |  | $ | 27 |
The accumulated benefit obligation for all pension plans was $356 and $396 as of December 31, 2024 and 2023, respectively. For the year ended December 31, 2024, the liability component of the Company’s global pension plans generated a net actuarial gain of $9, primarily driven by $11 of gains as a result of lower inflation assumptions and increases in discount rates in most countries. Those gains were partially offset by $2 of losses primarily due to the impact of a lower discount rate applied to the Company's Swiss plan. The Company’s pension plan assets, in aggregate, generated a gain in accumulated other comprehensive income of $26 as actual returns from equity and bond performance were greater than those projected at the beginning of the year and used to record pension expense. The following tables set forth information related to the Company’s pension plans with projected and accumulated benefit obligations in excess of the fair value of plan assets at December 31, 2024 and 2023.
|  | December 31, |
Pension plans with projected benefit obligation in excess of plan assets |  | 2024 |  |  | 2023 |
Projected benefit obligation |  | $ | 75 |  |  | $ | 110 |
Accumulated benefit obligation |  |  | 69 |  |  |  | 102 |
Fair value of plan assets |  |  | 52 |  |  |  | 80 |
|  | December 31, |
Pension plans with accumulated benefit obligation in excess of plan assets |  | 2024 |  |  | 2023 |
Projected benefit obligation |  | $ | 75 |  |  | $ | 86 |
Accumulated benefit obligation |  |  | 69 |  |  |  | 79 |
Fair value of plan assets |  |  | 52 |  |  |  | 57 |
Assumptions The Company generally utilizes discount rates that are developed by matching the expected cash flows of each benefit plan to various yield curves constructed from a portfolio of high-quality, fixed income instruments provided by the plans’ actuaries as of the measurement date. The expected rate of return on plan assets reflects economic assumptions applicable to each country. The following tables set forth the assumptions that have been used to determine the Company’s benefit obligations and net benefit cost at December 31, 2024 and 2023.
|  | December 31, |
Weighted-average assumptions used to determine benefit obligations |  | 2024 |  |  | 2023 |
Discount rate |  |  | 3.3 | % |  |  | 3.3 | %
Rate of compensation increase (1) |  |  | 3.2 | % |  |  | 3.4 | %
Interest crediting rate (2) |  |  | 1.8 | % |  |  | 2.3 | %
(1) The rate of compensation increase represents the single annual effective salary increase that an average plan participant would receive during the participant’s entire career at Chemours. (2) The interest crediting rate, which is applicable only for account balance type plans, represents the single effective annual account balance increase that an average participant would receive during the participant’s entire career at Chemours.
|  | December 31, |
Weighted-average assumptions used to determine net benefit cost |  | 2024 |  |  | 2023 |
Discount rate |  |  | 3.3 | % |  |  | 3.6 | %
Rate of compensation increase (1) |  |  | 3.4 | % |  |  | 3.5 | %
Expected return on plan assets |  |  | 4.9 | % |  |  | 4.6 | %
(1) The rate of compensation increase represents the single annual effective salary increase that an average plan participant would receive during the participant’s entire career at Chemours. Plan Assets Each pension plan’s assets are invested through either an insurance vehicle, a master trust fund, or a stand-alone pension fund. The strategic asset allocation for each plan is selected by management, together with the pension board, where appropriate, reflecting the results of comprehensive asset and liability modeling. For assets under its control, Chemours establishes strategic asset allocation percentage targets and appropriate benchmarks for significant asset classes with the aim of achieving a prudent balance between return and risk. Strategic asset allocations in countries are selected in accordance with the laws and practices of those countries. The following table sets forth the weighted-average allocation for the Company’s pension plan assets at December 31, 2024 and 2023.
|  | December 31, |
|  | 2024 |  |  | 2023 |
Cash and cash equivalents |  |  | 2 | % |  |  | 6 | %
U.S. and non-U.S. equity securities |  |  | 38 | % |  |  | 36 | %
Fixed income securities |  |  | 60 | % |  |  | 58 | %
Total weighted-average allocation |  |  | 100 | % |  |  | 100 | %
Fixed income securities include corporate-issued, government-issued, and asset-backed securities. Corporate debt investments encompass a range of credit risk and industry diversification. Fair value calculations may not be indicative of net realizable value or reflective of future fair values. Furthermore, although Chemours believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following tables set forth the fair values of the Company’s pension assets by level within the fair value hierarchy at December 31, 2024 and 2023.
|  | Fair Value Measurements at December 31, 2024 |
|  | Total |  |  | Level 1 |  |  | Level 2 |
Asset category: |  |  |  |  |  |  |  |  |
Debt - government issued |  | $ | 69 |  |  | $ | 5 |  |  | $ | 64 |
Debt - corporate issued |  |  | 116 |  |  |  | 4 |  |  |  | 112 |
U.S. and non-U.S. equities |  |  | 175 |  |  |  | 18 |  |  |  | 157 |
Derivatives - asset position |  |  | 60 |  |  |  | — |  |  |  | 60 |
Cash and cash equivalents |  |  | 9 |  |  |  | 9 |  |  |  | — |
Other |  |  | 2 |  |  |  | — |  |  |  | 2 |
Total pension assets at fair value |  |  | 431 |  |  | $ | 36 |  |  | $ | 395 |
Pooled mortgage funds (1) |  |  | 31 |  |  |  |  |  |  |
Total pension assets |  | $ | 462 |  |  |  |  |  |  |
(1) Pooled mortgage funds consist of funds that invest in residential mortgages. These funds generally allow for monthly redemption with 30 days' notice. Timing for redemption could be delayed based on the priority of the Company's request and the availability of funds. Interests in these funds are valued using the net asset value ("NAV") per share practical expedient and are not classified in the fair value hierarchy. Pooled real estate funds consist of funds that invest in real estate. These funds generally allow for redemption upon twelve months' notice. Interests in these funds are valued using the net asset value ("NAV") per share practical expedient and are not classified in the fair value hierarchy.
|  | Fair Value Measurements at December 31, 2023 |
|  | Total |  |  | Level 1 |  |  | Level 2 |
Asset category: |  |  |  |  |  |  |  |  |
Debt - government issued |  | $ | 63 |  |  | $ | 15 |  |  | $ | 48 |
Debt - corporate issued |  |  | 116 |  |  |  | 23 |  |  |  | 93 |
U.S. and non-U.S. equities |  |  | 168 |  |  |  | 39 |  |  |  | 129 |
Derivatives - asset position |  |  | 66 |  |  |  | — |  |  |  | 66 |
Cash and cash equivalents |  |  | 28 |  |  |  | 28 |  |  |  | — |
Other |  |  | 2 |  |  |  | — |  |  |  | 2 |
Total pension assets at fair value |  |  | 443 |  |  | $ | 105 |  |  | $ | 338 |
Pooled mortgage funds (1) |  |  | 21 |  |  |  |  |  |  |
Total pension assets |  | $ | 464 |  |  |  |  |  |  |
(1) Pooled mortgage funds consist of funds that invest in residential mortgages. These funds generally allow for monthly redemption with 30 days' notice. Timing for redemption could be delayed based on the priority of the Company's request and the availability of funds. Interests in these funds are valued using the NAV per share practical expedient and are not classified in the fair value hierarchy. For pension plan assets classified as Level 1 instruments within the fair value hierarchy, total fair value is either the price of the most recent trade at the time of the market close or the official close price, as defined by the exchange on which the asset is most actively traded on the last trading day of the period, multiplied by the number of units held without consideration of transaction costs. For pension plan assets classified as Level 2 instruments within the fair value hierarchy, where the security is frequently traded in less active markets, fair value is based on the closing price at the end of the period; where the security is less frequently traded, fair value is based on the price a dealer would pay for the security or similar securities, adjusted for any terms specific to that asset or liability. Market inputs are obtained from well-established, recognized vendors of market data and subjected to tolerance and/or quality checks. For derivative assets and liabilities, standard industry models are used to calculate the fair value of the various financial instruments based on significant observable market inputs, such as foreign exchange rates, commodity prices, swap rates, interest rates, and implied volatilities obtained from various market sources. With the exception of pooled mortgage funds and pooled real estate funds, pooled funds are valued at the per-unit NAV as determined by the fund manager based on the value of the underlying traded securities. Cash Flows – Defined Benefit Plans Employer Contributions For the years ended December 31, 2024, 2023 and 2022, Chemours contributed $12, $10, and $10, respectively, to its defined benefit plans. Chemours expects to contribute $6 to its pension plans in 2025. The Company’s future contributions to its defined benefit pension plans are dependent on market-based discount rates. Future Benefit Payments The following table sets forth the benefit payments that are expected to be paid by the plans over the next five years and the five years thereafter.
2025 |  | $ | 11 |
2026 |  |  | 11 |
2027 |  |  | 12 |
2028 |  |  | 13 |
2029 |  |  | 17 |
2030 to 2034 |  |  | 95 |
Cash Flows – Defined Contribution Plan Employer Contributions For the years ended December 31, 2024, 2023 and 2022, Chemours contributed $29, $30, and $31, respectively, to its defined contribution plan.

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