Leases

12 Months Ended

Dec. 31, 2024

Note 14. Leases

The Company leases certain office space, laboratory space, equipment, railcars, tanks, barges and warehouses. Lease expense is recognized over the term of these leases on a straight-line basis. The Company’s leases have remaining terms of up to 22 years. Some leases of equipment contain immaterial amounts of residual value guarantees. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets.

The following table sets forth the Company’s lease assets and lease liabilities and their balance sheet locations at December 31, 2024 and 2023.


		December 31,
	Balance Sheet Location	2024		2023
Lease assets:
Operating lease right-of-use assets	Operating lease right-of-use assets	$	258	$	260
Finance lease assets	Property, plant, and equipment, net (Note 13)		48		61
Total lease assets		$	306	$	321

Lease liabilities:
Current:
Operating lease liabilities	Other accrued liabilities (Note 19)	$	53	$	55
Finance lease liabilities	Short-term and current maturities of long-term debt (Note 20)		13		12
Total current lease liabilities			66		67
Non-current:
Operating lease liabilities	Operating lease liabilities		194		206
Finance lease liabilities	Long-term debt, net (Note 20)		33		46
Total non-current lease liabilities			227		252
Total lease liabilities		$	293	$	319

The following table sets forth the components of the Company’s lease cost for the years ended December 31, 2024, 2023 and 2022.


	Year Ended December 31,
	2024		2023		2022
Operating lease cost	$	61	$	63	$	51
Short-term lease cost		14		7		4
Variable lease cost		19		18		16

Finance lease cost:
Amortization of lease assets		9		9		8
Interest on lease liabilities		3		3		4
Total lease cost	$	106	$	100	$	83

The following table sets forth the cash flows related to the Company’s leases for the years ended December 31, 2024, 2023 and 2022.


	Year Ended December 31,
	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	69	$	70	$	56
Operating cash flows from finance leases		3		3		4
Financing cash flows from finance leases		12		11		11

Non-cash lease liabilities activity:
Leased assets obtained in exchange for new operating lease liabilities	$	38	$	66	$	65
Leased assets obtained in exchange for new finance lease liabilities		7		—		—

The following table sets forth the weighted-average terms and weighted-average discount rates for the Company’s leases at December 31, 2024 and 2023.


	December 31,
	2024			2023
Weighted-average remaining lease term (years):
Operating leases		8.3			8.9
Finance leases		4.5			4.6

Weighted-average discount rate:
Operating leases		6.09	%		5.89	%
Finance leases		5.67	%		5.42	%

The following table sets forth the Company’s lease liabilities’ maturities for the next five years and thereafter.


	Operating Leases		Finance Leases		Total
2025	$	66	$	16	$	82
2026		57		11		68
2027		41		9		50
2028		31		9		40
2029		26		4		30
Thereafter		85		3		88
Total lease payments		306		52		358
Less: Imputed interest		59		6		65
Present value of lease liabilities	$	247	$	46	$	293

The Chemours Discovery Hub

In October 2017, Chemours executed a build-to-suit lease agreement to construct a new 312,000-square-foot R&D facility located in the Science, Technology, and Advanced Research campus of the University of Delaware in Newark, Delaware (“Chemours Discovery Hub”). Chemours was deemed to be the owner for accounting purposes during construction of the facility. Construction was completed in the fourth quarter of 2019, and, upon its completion, Chemours evaluated whether a sale occurred for purposes of sale-leaseback accounting treatment. The Company determined that this transaction did not qualify for sale-leaseback accounting, and, as a result, the leasing arrangement is considered to be a financing transaction. At completion of the construction, the build-to-suit lease liability was reclassified as a financing obligation within long-term debt, net, and the build-to-suit lease asset was capitalized in property, plant and equipment, net. At December 31, 2024 and 2023, a financing obligation of $90 and $92, respectively, and property, plant, and equipment of $76 and $80, respectively, are recorded on the Company’s consolidated balance sheet.

The following table sets forth the Company’s minimum future payments due for the next five years and thereafter related to the Chemours Discovery Hub financing obligation.


2025	$	7
2026		7
2027		7
2028		7
2029		7
Thereafter		122
Total lease payments		157
Less: Imputed interest		(67	)
Present value of financing obligation	$	90