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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Tronox Holdings plc | NYSE:TROX | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.34 | -1.77% | 18.84 | 19.74 | 18.79 | 19.50 | 1,566,765 | 01:00:00 |
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Western Australia, Australia
(State or Other Jurisdiction of Incorporation or Organization)
|
98-1026700
(I.R.S. Employer Identification Number)
|
263 Tresser Boulevard, Suite 1100
Stamford, Connecticut 06901
|
Lot 22, Mason Road,
Kwinana Beach, WA, 6167
Australia
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
Page
|
|
PART I – FINANCIAL INFORMATION
|
|
3
|
|
38
|
|
49
|
|
50
|
|
PART II – OTHER INFORMATION
|
|
51
|
|
51
|
|
51
|
|
51
|
|
51
|
|
51
|
|
52
|
|
53
|
Page
No.
|
|
4
|
|
5
|
|
6
|
|
7
|
|
8
|
|
9
|
Three Months
Ended September 30,
|
Nine Months
Ended September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Net sales
|
$
|
533
|
$
|
575
|
$
|
1,545
|
$
|
1,577
|
||||||||
Cost of goods sold
|
453
|
536
|
1,388
|
1,479
|
||||||||||||
Gross profit
|
80
|
39
|
157
|
98
|
||||||||||||
Selling, general and administrative expenses
|
(54
|
)
|
(55
|
)
|
(151
|
)
|
(171
|
)
|
||||||||
Restructuring expense
|
(1
|
)
|
(5
|
)
|
(2
|
)
|
(7
|
)
|
||||||||
Income (loss) from operations
|
25
|
(21
|
)
|
4
|
(80
|
)
|
||||||||||
Interest and debt expense, net
|
(46
|
)
|
(45
|
)
|
(138
|
)
|
(131
|
)
|
||||||||
Gain on extinguishment of debt
|
—
|
—
|
4
|
—
|
||||||||||||
Other income (expense), net
|
(14
|
)
|
23
|
(23
|
)
|
22
|
||||||||||
Loss before income taxes
|
(35
|
)
|
(43
|
)
|
(153
|
)
|
(189
|
)
|
||||||||
Income tax provision
|
(7
|
)
|
(11
|
)
|
(29
|
)
|
(29
|
)
|
||||||||
Net loss
|
(42
|
)
|
(54
|
)
|
(182
|
)
|
(218
|
)
|
||||||||
Net income (loss) attributable to noncontrolling interest
|
(2
|
)
|
6
|
(1
|
)
|
10
|
||||||||||
Net loss attributable to Tronox Limited
|
$
|
(40
|
)
|
$
|
(60
|
)
|
$
|
(181
|
)
|
$
|
(228
|
)
|
||||
Loss per share, basic and diluted
|
$
|
(0.35
|
)
|
$
|
(0.52
|
)
|
$
|
(1.56
|
)
|
$
|
(1.97
|
)
|
||||
Weighted average shares outstanding, basic and diluted (in thousands)
|
116,219
|
115,642
|
116,108
|
115,529
|
Three Months
Ended September 30,
|
Nine Months
Ended September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Net loss
|
$
|
(42
|
)
|
$
|
(54
|
)
|
$
|
(182
|
)
|
$
|
(218
|
)
|
||||
Other comprehensive income (loss):
|
||||||||||||||||
Foreign currency translation adjustments
|
69
|
(135
|
)
|
122
|
(187
|
)
|
||||||||||
Pension and postretirement plans:
|
||||||||||||||||
Actuarial losses, (no tax impact; See Note 3)
|
(21
|
)
|
—
|
(21
|
)
|
—
|
||||||||||
Amortization of unrealized losses, net of taxes of less than $1 million in each of the three and nine months ended September 30, 2016 and 2015
|
(1
|
)
|
1
|
—
|
3
|
|||||||||||
Unrealized gains (losses) on derivative financial instruments, (no tax impact; See Note 3)
|
(1
|
)
|
—
|
1
|
—
|
|||||||||||
Other comprehensive income (loss)
|
46
|
(134
|
)
|
102
|
(184
|
)
|
||||||||||
Total comprehensive income (loss)
|
4
|
(188
|
)
|
(80
|
)
|
(402
|
)
|
|||||||||
Comprehensive income (loss) attributable to noncontrolling interest:
|
||||||||||||||||
Net income (loss)
|
(2
|
)
|
6
|
(1
|
)
|
10
|
||||||||||
Foreign currency translation adjustments
|
18
|
(35
|
)
|
31
|
(49
|
)
|
||||||||||
Comprehensive income (loss) attributable to noncontrolling interest
|
16
|
(29
|
)
|
30
|
(39
|
)
|
||||||||||
Comprehensive loss attributable to Tronox Limited
|
$
|
(12
|
)
|
$
|
(159
|
)
|
$
|
(110
|
)
|
$
|
(363
|
)
|
September 30,
2016
|
December 31,
2015
|
|||||||
ASSETS
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$
|
202
|
$
|
229
|
||||
Restricted cash
|
3
|
5
|
||||||
Accounts receivable, net of allowance for doubtful accounts
|
394
|
391
|
||||||
Inventories, net
|
558
|
630
|
||||||
Prepaid and other assets
|
45
|
46
|
||||||
Total current assets
|
1,202
|
1,301
|
||||||
Noncurrent Assets
|
||||||||
Property, plant and equipment, net
|
1,850
|
1,843
|
||||||
Mineral leaseholds, net
|
1,617
|
1,604
|
||||||
Intangible assets, net
|
226
|
244
|
||||||
Inventories, net
|
6
|
12
|
||||||
Other long-term assets
|
24
|
23
|
||||||
|
||||||||
Total assets
|
$
|
4,925
|
$
|
5,027
|
||||
LIABILITIES AND EQUITY
|
||||||||
Current Liabilities
|
||||||||
Accounts payable
|
$
|
162
|
$
|
159
|
||||
Accrued liabilities
|
148
|
180
|
||||||
Short-term debt
|
150
|
150
|
||||||
Long-term debt due within one year
|
16
|
16
|
||||||
Income taxes payable
|
57
|
43
|
||||||
Total current liabilities
|
533
|
548
|
||||||
Noncurrent Liabilities
|
||||||||
Long-term debt
|
2,889
|
2,910
|
||||||
Pension and postretirement healthcare benefits
|
151
|
141
|
||||||
Asset retirement obligations
|
78
|
77
|
||||||
Long-term deferred tax liabilities
|
156
|
143
|
||||||
Other long-term liabilities
|
111
|
98
|
||||||
Total liabilities
|
3,918
|
3,917
|
||||||
Contingencies and Commitments
|
||||||||
Shareholders’ Equity
|
||||||||
Tronox Limited Class A ordinary shares, par value $0.01 — 65,982,604 shares issued and 65,149,970 shares outstanding at September 30, 2016 and 65,443,363 shares issued and 64,521,851 shares outstanding at December 31, 2015
|
1
|
1
|
||||||
Tronox Limited Class B ordinary shares, par value $0.01 — 51,154,280 shares issued and outstanding at September 30, 2016 and December 31, 2015
|
—
|
—
|
||||||
Capital in excess of par value
|
1,518
|
1,500
|
||||||
(Accumulated deficit) / Retained earnings
|
(129
|
)
|
93
|
|||||
Accumulated other comprehensive loss
|
(525
|
)
|
(596
|
)
|
||||
Total Tronox Limited shareholders’ equity
|
865
|
998
|
||||||
Noncontrolling interest
|
142
|
112
|
||||||
Total equity
|
1,007
|
1,110
|
||||||
Total liabilities and equity
|
$
|
4,925
|
$
|
5,027
|
Nine Months
Ended September 30,
|
||||||||
2016
|
2015
|
|||||||
Cash Flows from Operating Activities:
|
||||||||
Net loss
|
$
|
(182
|
)
|
$
|
(218
|
)
|
||
Adjustments to reconcile net loss to net cash provided by operating activities:
|
||||||||
Depreciation, depletion and amortization
|
175
|
222
|
||||||
Deferred income taxes
|
(4
|
)
|
(4
|
)
|
||||
Share-based compensation expense
|
19
|
17
|
||||||
Amortization of deferred debt issuance costs and discount on debt
|
8
|
8
|
||||||
Pension and postretirement healthcare benefit expense
|
4
|
4
|
||||||
Gain on extinguishment of debt
|
(4
|
)
|
—
|
|||||
Other noncash items affecting net loss
|
10
|
(4
|
)
|
|||||
Contributions to employee pension and postretirement plans
|
(20
|
)
|
(16
|
)
|
||||
Changes in assets and liabilities:
|
||||||||
(Increase) decrease in accounts receivable
|
1
|
(36
|
)
|
|||||
(Increase) decrease in inventories
|
98
|
90
|
||||||
(Increase) decrease in prepaid and other assets
|
(5
|
)
|
4
|
|||||
Increase (decrease) in accounts payable and accrued liabilities
|
(28
|
)
|
(35
|
)
|
||||
Increase (decrease) in taxes payable
|
28
|
12
|
||||||
Other, net
|
23
|
1
|
||||||
Cash provided by operating activities
|
123
|
45
|
||||||
Cash Flows from Investing Activities:
|
||||||||
Capital expenditures
|
(87
|
)
|
(141
|
)
|
||||
Proceeds from sale of assets
|
1
|
—
|
||||||
Acquisition of business
|
—
|
(1,653
|
)
|
|||||
Cash used in investing activities
|
(86
|
)
|
(1,794
|
)
|
||||
Cash Flows from Financing Activities:
|
||||||||
Repayments of debt
|
(27
|
)
|
(13
|
)
|
||||
Proceeds from debt
|
—
|
750
|
||||||
Debt issuance costs
|
—
|
(15
|
)
|
|||||
Dividends paid
|
(40
|
)
|
(88
|
)
|
||||
Proceeds from the exercise of warrants and options
|
—
|
3
|
||||||
Cash provided by (used in) financing activities
|
(67
|
)
|
637
|
|||||
Effects of exchange rate changes on cash and cash equivalents
|
3
|
(19
|
)
|
|||||
Net decrease in cash and cash equivalents
|
(27
|
)
|
(1,131
|
)
|
||||
Cash and cash equivalents at beginning of period
|
229
|
1,276
|
||||||
Cash and cash equivalents at end of period
|
$
|
202
|
$
|
145
|
Tronox
Limited
Class A
Ordinary
Shares
|
Tronox
Limited
Class B
Ordinary
Shares
|
Capital
in
Excess of
par
Value
|
Accumulated
Deficit/
Retained
Earnings
|
Accumulated
Other
Comprehensive
Loss
|
Total Tronox
Limited
Shareholders’
Equity
|
Non-
controlling
Interest
|
Total
Equity
|
|||||||||||||||||||||||||
Balance at January 1, 2016
|
$
|
1
|
$
|
—
|
$
|
1,500
|
$
|
93
|
$
|
(596
|
)
|
$
|
998
|
$
|
112
|
$
|
1,110
|
|||||||||||||||
Net loss
|
—
|
—
|
—
|
(181
|
)
|
—
|
(181
|
)
|
(1
|
)
|
(182
|
)
|
||||||||||||||||||||
Other comprehensive income
|
—
|
—
|
—
|
—
|
71
|
71
|
31
|
102
|
||||||||||||||||||||||||
Share-based compensation
|
—
|
—
|
19
|
—
|
—
|
19
|
—
|
19
|
||||||||||||||||||||||||
Class A and Class B share dividends
|
—
|
—
|
—
|
(41
|
)
|
—
|
(41
|
)
|
—
|
(41
|
)
|
|||||||||||||||||||||
Shares cancelled
|
—
|
—
|
(1
|
)
|
—
|
—
|
(1
|
)
|
—
|
(1
|
)
|
|||||||||||||||||||||
Balance at September 30, 2016
|
$
|
1
|
$
|
—
|
$
|
1,518
|
$
|
(129
|
)
|
$
|
(525
|
)
|
$
|
865
|
$
|
142
|
$
|
1,007
|
1.
|
The Company
|
2.
|
Restructuring Expense
|
2016
|
2015
|
|||||||
Balance, January 1
|
$
|
15
|
$
|
4
|
||||
Additional provision, net
|
2
|
7
|
||||||
Cash payments
|
(16
|
)
|
(4
|
)
|
||||
Balance, September 30
|
$
|
1
|
$
|
7
|
Three Months Ended September 30,
|
Nine Months Ended September 30, | |||||||||||||||
2016 |
2015
|
2016 |
2015
|
|||||||||||||
TiO
2
segment
|
$
|
1
|
$
|
5
|
$
|
2
|
$
|
7
|
3.
|
Income Taxes
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Income tax provision
|
$
|
(7
|
)
|
$
|
(11
|
)
|
$
|
(29
|
)
|
$
|
(29
|
)
|
||||
Loss before income taxes
|
$
|
(35
|
)
|
$
|
(43
|
)
|
$
|
(153
|
)
|
$
|
(189
|
)
|
||||
Effective tax rate
|
(20
|
)%
|
(26
|
)%
|
(19
|
)%
|
(15
|
)%
|
4.
|
Loss Per Share
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Numerator – Basic and Diluted:
|
||||||||||||||||
Net loss
|
$
|
(42
|
)
|
$
|
(54
|
)
|
$
|
(182
|
)
|
$
|
(218
|
)
|
||||
Less: Net income (loss) attributable to noncontrolling interest
|
(2
|
)
|
6
|
(1
|
)
|
10
|
||||||||||
Undistributed net loss
|
(40
|
)
|
(60
|
)
|
(181
|
)
|
(228
|
)
|
||||||||
Percentage allocated to ordinary shares
(1)
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
||||||||
Loss available to ordinary shares
|
$
|
(40
|
)
|
$
|
(60
|
)
|
$
|
(181
|
)
|
$
|
(228
|
)
|
||||
Denominator – Basic and Diluted:
|
||||||||||||||||
Weighted-average ordinary shares (in thousands)
|
116,219
|
115,642
|
116,108
|
115,529
|
||||||||||||
Loss per Ordinary Share
(2)
:
|
||||||||||||||||
Basic and diluted loss per ordinary share
|
$
|
(0.35
|
)
|
$
|
(0.52
|
)
|
$
|
(1.56
|
)
|
$
|
(1.97
|
)
|
(1) |
Our participating securities do not have a contractual obligation to share in losses; therefore, when we have a net loss, none of the loss is allocated to participating securities. Consequently, for the three and nine months ended September 30, 2016 and 2015, the two-class method did not have an effect on our loss per ordinary share calculation, and as such, dividends paid during the year did not impact this calculation.
|
(2) |
Loss per ordinary share amounts were calculated from exact, not rounded income (loss) and share information.
|
September 30, 2016
|
September 30, 2015
|
|||||||||||||||
Shares
|
Average
Exercise Price
|
Shares
|
Average
Exercise Price
|
|||||||||||||
Options
|
1,997,437
|
21.20
|
2,245,145
|
$
|
21.13
|
|||||||||||
Series A Warrants
|
1,440,652
|
8.51
|
1,306,665
|
$
|
10.35
|
|||||||||||
Series B Warrants
|
1,953,250
|
9.37
|
1,769,035
|
$
|
11.42
|
|||||||||||
Restricted share units
|
5,566,589
|
7.18
|
1,505,081
|
$
|
23.04
|
5.
|
Accounts Receivable, Net of Allowance for Doubtful Accounts
|
September 30,
2016
|
December 31,
2015
|
|||||||
Trade receivables
|
$
|
377
|
$
|
367
|
||||
Other
|
19
|
25
|
||||||
Subtotal
|
396
|
392
|
||||||
Allowance for doubtful accounts
|
(2
|
)
|
(1
|
)
|
||||
Accounts receivable, net of allowance for doubtful accounts
|
$
|
394
|
$
|
391
|
September 30
2016
|
December 31,
2015
|
|||||||
Raw materials
|
$
|
223
|
$
|
248
|
||||
Work-in-process
|
43
|
43
|
||||||
Finished goods, net
|
194
|
245
|
||||||
Materials and supplies, net
(1)
|
104
|
106
|
||||||
Total
|
564
|
642
|
||||||
Less: Inventories, net – non-current
|
(6
|
)
|
(12
|
)
|
||||
Inventories, net – current
|
$
|
558
|
$
|
630
|
(1) |
Consists of processing chemicals, maintenance supplies, and spare parts, which will be consumed directly and indirectly in the production of our products.
|
7.
|
Property, Plant and Equipment, Net
|
September 30,
2016
|
December 31,
2015
|
|||||||
Land and land improvements
|
$
|
157
|
$
|
143
|
||||
Buildings
|
304
|
189
|
||||||
Machinery and equipment
|
1,885
|
1,765
|
||||||
Construction-in-progress
|
153
|
261
|
||||||
Other
|
49
|
44
|
||||||
Subtotal
|
2,548
|
2,402
|
||||||
Less accumulated depreciation and amortization
|
(698
|
)
|
(559
|
)
|
||||
Property, plant and equipment, net
(1)
|
$
|
1,850
|
$
|
1,843
|
(1) |
Substantially all of these assets are pledged as collateral for our debt. See Note 11.
|
8.
|
Mineral Leaseholds, Net
|
September 30,
2016
|
December 31,
2015
|
|||||||
Mineral leaseholds
|
$
|
1,996
|
$
|
1,948
|
||||
Less accumulated depletion
|
(379
|
)
|
(344
|
)
|
||||
Mineral leaseholds, net
|
$
|
1,617
|
$
|
1,604
|
9.
|
Intangible Assets, Net
|
September 30, 2016
|
December 31, 2015
|
|||||||||||||||||||||||
Gross
Cost
|
Accumulated
Amortization
|
Net Carrying
Amount
|
Gross
Cost
|
Accumulated
Amortization
|
Net Carrying
Amount
|
|||||||||||||||||||
Customer relationships
|
$
|
294
|
$
|
(113
|
)
|
$
|
181
|
$
|
294
|
$
|
(98
|
)
|
$
|
196
|
||||||||||
TiO
2
technology
|
32
|
(9
|
)
|
23
|
32
|
(8
|
)
|
24
|
||||||||||||||||
Internal-use software
|
38
|
(16
|
)
|
22
|
37
|
(13
|
)
|
24
|
||||||||||||||||
Other
|
9
|
(9
|
)
|
—
|
9
|
(9
|
)
|
—
|
||||||||||||||||
Intangible assets, net
|
$
|
373
|
$
|
(147
|
)
|
$
|
226
|
$
|
372
|
$
|
(128
|
)
|
$
|
244
|
10.
|
Accrued Liabilities
|
September 30,
2016
|
December 31,
2015
|
|||||||
Employee-related costs and benefits
|
$
|
80
|
$
|
69
|
||||
Restructuring costs
|
1
|
15
|
||||||
Interest
|
10
|
35
|
||||||
Sales rebates
|
24
|
28
|
||||||
Taxes other than income taxes
|
10
|
11
|
||||||
Other
|
23
|
22
|
||||||
Accrued liabilities
|
$
|
148
|
$
|
180
|
11.
|
Debt
|
Original
Principal
|
Annual
Interest Rate
|
Maturity
Date
|
September 30,
2016
|
December 31,
2015
|
|||||||||||||
Term Loan, net of unamortized discount
(1)
|
$
|
1,500
|
Variable
|
3/19/2020
|
$
|
1,444
|
$
|
1,454
|
|||||||||
Senior Notes due 2020
|
$
|
900
|
6.375
|
%
|
8/15/2020
|
896
|
900
|
||||||||||
Senior Notes due 2022
|
$
|
600
|
7.50
|
%
|
3/15/2022
|
584
|
600
|
||||||||||
Co-generation Unit Financing Arrangement
|
$
|
16
|
6.5
|
%
|
2/1/2016
|
—
|
1
|
||||||||||
Lease financing
|
19
|
16
|
|||||||||||||||
Total borrowings
|
2,943
|
2,971
|
|||||||||||||||
Less: Long-term debt due within one year
|
(16
|
)
|
(16
|
)
|
|||||||||||||
Debt issuance costs
|
(38
|
)
|
(45
|
)
|
|||||||||||||
Long-term debt
|
$
|
2,889
|
$
|
2,910
|
(1) |
Average effective interest rate of 4.9% each during the three and nine months ended September 30, 2016, respectively, and 4.7% and 4.6% during the three and nine months ended September 30, 2015, respectively.
|
Total
Borrowings
|
||||
2016
|
$
|
4
|
||
2017
|
16
|
|||
2018
|
16
|
|||
2019
|
16
|
|||
2020
|
2,298
|
|||
Thereafter
|
598
|
|||
Total
|
2,948
|
|||
Remaining accretion associated with the Term Loan
|
(5
|
)
|
||
Total borrowings
|
$
|
2,943
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Interest on debt
|
$
|
43
|
$
|
43
|
$
|
130
|
$
|
117
|
||||||||
Amortization of deferred debt issuance costs and discounts on debt
|
3
|
3
|
8
|
8
|
||||||||||||
Bridge Facility
|
—
|
—
|
—
|
8
|
||||||||||||
Other
|
—
|
1
|
2
|
3
|
||||||||||||
Capitalized interest
|
—
|
(2
|
)
|
(2
|
)
|
(5
|
)
|
|||||||||
Total interest and debt expense, net
|
$
|
46
|
$
|
45
|
$
|
138
|
$
|
131
|
12.
|
Asset Retirement Obligations
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Balance, January 1,
|
$
|
78
|
$
|
88
|
$
|
81
|
$
|
90
|
||||||||
Additions
|
—
|
1
|
1
|
2
|
||||||||||||
Accretion expense
|
1
|
1
|
4
|
4
|
||||||||||||
Remeasurement/translation
|
3
|
(7
|
)
|
5
|
(12
|
)
|
||||||||||
Changes in estimates, including cost and timing of cash flows
|
—
|
(1
|
)
|
(9
|
)
|
—
|
||||||||||
Settlements/payments
|
—
|
—
|
—
|
(2
|
)
|
|||||||||||
Balance, September 30,
|
$
|
82
|
$
|
82
|
$
|
82
|
$
|
82
|
September 30,
2016
|
September 30,
2015
|
|||||||
Current portion included in “Accrued liabilities”
|
$
|
4
|
$
|
6
|
||||
Noncurrent portion included in “Asset retirement obligations”
|
78
|
76
|
||||||
Asset retirement obligations
|
$
|
82
|
$
|
82
|
13.
|
Derivative Instruments
|
14.
|
Commitments and Contingencies
|
15.
|
Shareholders’ Equity
|
Class A Shares:
|
||||
Balance at January 1, 2016
|
64,521,851
|
|||
Shares issued for share-based compensation
|
717,041
|
|||
Shares cancelled for share-based compensation
|
(89,062
|
)
|
||
Shares issued upon warrants exercised
|
140
|
|||
Balance at September 30, 2016
|
65,149,970
|
|||
Class B Shares:
|
||||
Balance at January 1, 2016 and September 30, 2016
|
51,154,280
|
|||
Three Months
Ended March 31,
2016
|
Three Months
Ended June 30,
2016
|
Three Months
Ended September 30,
2016
|
||||||||||
Dividend per share
|
$
|
0.25
|
$
|
0.045
|
$
|
0.045
|
||||||
Total dividend
|
$
|
30
|
$
|
5
|
$
|
5
|
||||||
Record date (close of business)
|
March 4
|
May 16
|
August 17
|
Cumulative
Translation
Adjustment
|
Pension
Liability
Adjustment
|
Unrealized
Gains on
Derivatives
|
Total
|
|||||||||||||
Balance, January 1, 2016
|
$
|
(494
|
)
|
$
|
(102
|
)
|
$
|
—
|
$
|
(596
|
)
|
|||||
Other comprehensive income (loss)
|
91
|
(21
|
)
|
1
|
71
|
|||||||||||
Balance, September 30, 2016
|
$
|
(403
|
)
|
$
|
(123
|
)
|
$
|
1
|
$
|
(525
|
)
|
Cumulative
Translation
Adjustment
|
Pension
Liability
Adjustment
|
Unrealized
Gains on
Derivatives
|
Total
|
|||||||||||||
Balance, January 1, 2015
|
$
|
(279
|
)
|
$
|
(117
|
)
|
$
|
—
|
$
|
(396
|
)
|
|||||
Other comprehensive income (loss)
|
(138
|
)
|
3
|
—
|
(135
|
)
|
||||||||||
Balance, September 30, 2015
|
$
|
(417
|
)
|
$
|
(114
|
)
|
$
|
—
|
$
|
(531
|
)
|
16.
|
Noncontrolling Interest
|
2016
|
2015
|
|||||||
Balance, January 1
|
$
|
112
|
$
|
178
|
||||
Net income (loss) attributable to noncontrolling interest
|
(1
|
)
|
10
|
|||||
Effect of exchange rate changes
|
31
|
(49
|
)
|
|||||
Balance, September 30
|
$
|
142
|
$
|
139
|
17.
|
Share-Based Compensation
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Restricted shares and restricted share units
|
$
|
7
|
$
|
2
|
$
|
15
|
$
|
11
|
||||||||
Options
|
2
|
1
|
3
|
4
|
||||||||||||
T-Bucks Employee Participation Plan
|
—
|
1
|
1
|
2
|
||||||||||||
Total share-based compensation expense
|
$
|
9
|
$
|
4
|
$
|
19
|
$
|
17
|
Number of
Shares
|
Weighted Average
Grant Date
Fair Value
|
|||||||
Outstanding, January 1, 2016
|
373,278
|
$
|
22.02
|
|||||
Granted
|
291,893
|
3.89
|
||||||
Vested
|
(169,634
|
)
|
16.91
|
|||||
Forfeited
|
(211,137
|
)
|
22.37
|
|||||
Outstanding, September 30, 2016
|
284,400
|
$
|
6.09
|
|||||
Expected to vest, September 30, 2016
|
284,400
|
$
|
6.09
|
Number of
Shares
|
Weighted Average
Grant Date
Fair Value
|
|||||||
Outstanding, January 1, 2016
|
1,494,027
|
$
|
23.04
|
|||||
Granted
|
4,880,169
|
4.04
|
||||||
Vested
|
(547,407
|
)
|
17.51
|
|||||
Forfeited
|
(260,200
|
)
|
17.53
|
|||||
Outstanding, September 30, 2016
|
5,566,589
|
$
|
7.18
|
|||||
Expected to vest, September 30, 2016
|
6,169,907
|
$
|
6.79
|
Number of
Options
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Contractual
Life (years)
|
Intrinsic
Value
|
|||||||||||||
Outstanding, January 1, 2016
|
2,189,967
|
$
|
21.15
|
7.4
|
$
|
—
|
||||||||||
Forfeited
|
(46,087
|
)
|
20.98
|
|||||||||||||
Expired
|
(146,443
|
)
|
20.54
|
—
|
||||||||||||
Outstanding, September 30, 2016
|
1,997,437
|
21.20
|
6.7
|
$
|
—
|
|||||||||||
Expected to vest, September 30, 2016
|
232,468
|
22.04
|
7.4
|
$
|
—
|
|||||||||||
Exercisable, September 30, 2016
|
1,772,281
|
21.09
|
6.7
|
$
|
—
|
18.
|
Pension and Other Postretirement Healthcare Benefits
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Net periodic cost:
|
||||||||||||||||
Service cost
(1)
|
$
|
1
|
$
|
2
|
$
|
3
|
$
|
3
|
||||||||
Interest cost
|
5
|
4
|
15
|
15
|
||||||||||||
Expected return on plan assets
|
(5
|
)
|
(5
|
)
|
(15
|
)
|
(17
|
)
|
||||||||
Net amortization of actuarial loss and prior service credit
|
—
|
1
|
1
|
3
|
||||||||||||
Curtailment gain
|
(1
|
)
|
—
|
(1
|
)
|
—
|
||||||||||
Total net periodic cost
|
$
|
—
|
$
|
2
|
$
|
3
|
$
|
4
|
(1) |
Includes $2 million and $3 million of pension expenses for the three and nine months ended September 30, 2015, respectively, related to the Tronox Alkali Qualified Plan to cover eligible employees of Tronox Alkali Corporation in connection with the Alkali Transaction.
|
19.
|
Acquisition of Alkali Chemicals Group
|
Valuation
|
||||
Consideration:
|
||||
Purchase price
|
$
|
1,650
|
||
Fair Value of Assets Acquired and Liabilities Assumed:
|
||||
Current Assets:
|
||||
Accounts receivable
|
$
|
147
|
||
Inventories
|
48
|
|||
Prepaid and other assets
|
32
|
|||
Total Current Assets
|
227
|
|||
Property, plant and equipment
(1)
|
767
|
|||
Mineral leaseholds
(2)
|
739
|
|||
Other long-term assets
|
3
|
|||
Total Assets
|
$
|
1,736
|
||
Current Liabilities:
|
||||
Accounts payable
|
46
|
|||
Accrued liabilities
|
28
|
|||
Total Current Liabilities
|
74
|
|||
Noncurrent Liabilities:
|
||||
Other
|
12
|
|||
Total Liabilities
|
86
|
|||
Net Assets
|
$
|
1,650
|
(1) |
The fair value of property, plant and equipment was determined using the cost approach, which estimates the replacement cost of each asset using current prices and labor costs, less estimates for physical, functional and technological obsolescence, based on the estimated useful life ranging from 5 to 38 years.
|
(2) |
The fair value of mineral rights was determined using the discounted cash flow method, which was based upon the present value of the estimated future cash flows for the expected life of the asset taking into account the relative risk of achieving those cash flows and the time value of money. A discount rate of 10.4% was used taking into account the risks associated with such assets.
|
Three Months Ended
September 30,
2015
|
Nine Months Ended
September 30,
2015
|
|||||||
Net sales
|
$
|
575
|
$
|
1,772
|
||||
Loss from operations
|
$
|
(19
|
)
|
$
|
(29
|
)
|
||
Net loss
|
$
|
(52
|
)
|
$
|
(171
|
)
|
||
Loss per share, basic and diluted
|
$
|
(0.45
|
)
|
$
|
(1.48
|
)
|
20.
|
Related Parties
|
21.
|
Segment Information
|
• |
Exploration, mining, and beneficiation of mineral sands deposits
|
• |
Production of titanium feedstock (including chloride slag, slag fines, and rutile), pig iron, and zircon
|
• |
Production and marketing of TiO
2
; and
|
• |
Electrolytic manganese dioxide manufacturing and marketing
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
TiO
2
segment
|
$
|
339
|
$
|
380
|
$
|
957
|
$
|
1,174
|
||||||||
Alkali segment
|
194
|
195
|
588
|
403
|
||||||||||||
Net sales
(1)
|
$
|
533
|
$
|
575
|
$
|
1,545
|
$
|
1,577
|
||||||||
TiO
2
segment
|
$
|
18
|
$
|
(26
|
)
|
$
|
(12
|
)
|
$
|
(58
|
)
|
|||||
Alkali segment
|
23
|
21
|
54
|
46
|
||||||||||||
Corporate
|
(16
|
)
|
(16
|
)
|
(38
|
)
|
(68
|
)
|
||||||||
Income (loss) from operations
|
25
|
(21
|
)
|
4
|
(80
|
)
|
||||||||||
Interest and debt expense, net
|
(46
|
)
|
(45
|
)
|
(138
|
)
|
(131
|
)
|
||||||||
Gain on extinguishment of debt
|
—
|
—
|
4
|
—
|
||||||||||||
Other income (expense), net
|
(14
|
)
|
23
|
(23
|
)
|
22
|
||||||||||
Loss before income taxes
|
(35
|
)
|
(43
|
)
|
(153
|
)
|
(189
|
)
|
||||||||
Income tax provision
|
(7
|
)
|
(11
|
)
|
(29
|
)
|
(29
|
)
|
||||||||
Net loss
|
$
|
(42
|
)
|
$
|
(54
|
)
|
$
|
(182
|
)
|
$
|
(218
|
)
|
(1) |
Net sales to external customers, by geographic region, based on country of production, were as follows:
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
U.S. operations
|
$
|
348
|
$
|
359
|
$
|
1,018
|
$
|
891
|
||||||||
International operations:
|
||||||||||||||||
Australia
|
94
|
104
|
258
|
285
|
||||||||||||
South Africa
|
45
|
71
|
131
|
252
|
||||||||||||
The Netherlands
|
46
|
41
|
138
|
149
|
||||||||||||
Total
|
$
|
533
|
$
|
575
|
$
|
1,545
|
$
|
1,577
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Pigment
|
$
|
260
|
$
|
244
|
$
|
720
|
$
|
756
|
||||||||
Alkali
|
194
|
195
|
588
|
403
|
||||||||||||
Titanium feedstock and co-products
|
64
|
103
|
194
|
333
|
||||||||||||
Electrolytic
|
15
|
33
|
43
|
85
|
||||||||||||
Total
|
$
|
533
|
$
|
575
|
$
|
1,545
|
$
|
1,577
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
TiO
2
segment
|
$
|
23
|
$
|
39
|
$
|
58
|
$
|
127
|
||||||||
Alkali segment
|
8
|
9
|
28
|
13
|
||||||||||||
Corporate
|
1
|
—
|
1
|
1
|
||||||||||||
Total
|
$
|
32
|
$
|
48
|
$
|
87
|
$
|
141
|
September 30,
2016
|
December 31,
2015
|
|||||||
TiO
2
segment
|
$
|
3,018
|
$
|
3,055
|
||||
Alkali segment
|
1,661
|
1,690
|
||||||
Corporate
|
246
|
282
|
||||||
Total
|
$
|
4,925
|
$
|
5,027
|
22.
|
Guarantor Condensed Consolidating Financial Statements
|
• |
Sale or other disposition of such Guarantor Subsidiary’s capital stock or all or substantially all of its assets and all of the indenture obligations (other than contingent obligations) of such Guarantor Subsidiary in respect of all other indebtedness of the Guarantors Subsidiary terminate upon the consummation of such transaction;
|
• |
Designation of such Guarantor Subsidiary as an “unrestricted subsidiary” under the indenture;
|
• |
In the case of certain Guarantor Subsidiaries that incur or guarantee indebtedness under certain credit facilities, upon the release or discharge of such Guarantor Subsidiary’s guarantee or incurrence of indebtedness that resulted in the creation of such guarantee, except a discharge or release as a result of payment under such guarantee;
|
• |
Legal defeasance, covenant defeasance, or satisfaction and discharge of the indenture obligations;
|
• |
Payment in full of the aggregate principal amount of all outstanding Senior Notes due 2020 and all other obligations under the indenture; or
|
• |
Release or discharge of the Guarantor Subsidiary’s guarantee of certain other indebtedness.
|
Consolidated
|
Eliminations
|
Tronox
Finance LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
Net sales
|
$
|
533
|
$
|
(59
|
)
|
$
|
—
|
$
|
—
|
$
|
454
|
$
|
138
|
|||||||||||
Cost of goods sold
|
453
|
(62
|
)
|
—
|
—
|
387
|
128
|
|||||||||||||||||
Gross profit
|
80
|
3
|
—
|
—
|
67
|
10
|
||||||||||||||||||
Selling, general and administrative expenses
|
(54
|
)
|
—
|
—
|
(6
|
)
|
(39
|
)
|
(9
|
)
|
||||||||||||||
Restructuring expense
|
(1
|
)
|
—
|
—
|
—
|
—
|
(1
|
)
|
||||||||||||||||
Income (loss) from operations
|
25
|
3
|
—
|
(6
|
)
|
28
|
—
|
|||||||||||||||||
Interest and debt expense, net
|
(46
|
)
|
—
|
(26
|
)
|
—
|
(1
|
)
|
(19
|
)
|
||||||||||||||
Other income (expense), net
|
(14
|
)
|
—
|
—
|
—
|
(3
|
)
|
(11
|
)
|
|||||||||||||||
Intercompany interest income (expense)
|
—
|
—
|
—
|
126
|
(140
|
)
|
14
|
|||||||||||||||||
Equity in earnings of subsidiary
|
—
|
147
|
—
|
(117
|
)
|
(30
|
)
|
—
|
||||||||||||||||
Income (loss) before income taxes
|
(35
|
)
|
150
|
(26
|
)
|
3
|
(146
|
)
|
(16
|
)
|
||||||||||||||
Income tax benefit (provision)
|
(7
|
)
|
—
|
7
|
(43
|
)
|
28
|
1
|
||||||||||||||||
Net income (loss)
|
(42
|
)
|
150
|
(19
|
)
|
(40
|
)
|
(118
|
)
|
(15
|
)
|
|||||||||||||
Net income (loss) attributable to noncontrolling interest
|
(2
|
)
|
(2
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||
Net income (loss) attributable to Tronox Limited
|
$
|
(40
|
)
|
152
|
(19
|
)
|
(40
|
)
|
(118
|
)
|
(15
|
)
|
Consolidated
|
Eliminations
|
Tronox
Finance LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
Net sales
|
$
|
1,545
|
$
|
(164
|
)
|
$
|
—
|
$
|
—
|
$
|
1,311
|
$
|
398
|
|||||||||||
Cost of goods sold
|
1,388
|
(171
|
)
|
—
|
—
|
1,186
|
373
|
|||||||||||||||||
Gross profit
|
157
|
7
|
—
|
—
|
125
|
25
|
||||||||||||||||||
Selling, general and administrative expenses
|
(151
|
)
|
2
|
—
|
(20
|
)
|
(102
|
)
|
(31
|
)
|
||||||||||||||
Restructuring expense
|
(2
|
)
|
—
|
—
|
—
|
—
|
(2
|
)
|
||||||||||||||||
Income (loss) from operations
|
4
|
9
|
—
|
(20
|
)
|
23
|
(8
|
)
|
||||||||||||||||
Interest and debt expense, net
|
(138
|
)
|
—
|
(79
|
)
|
—
|
(4
|
)
|
(55
|
)
|
||||||||||||||
Gain on extinguishment of debt
|
4
|
—
|
4
|
—
|
—
|
—
|
||||||||||||||||||
Other income (expense), net
|
(23
|
)
|
—
|
—
|
—
|
(3
|
)
|
(20
|
)
|
|||||||||||||||
Intercompany interest income (expense)
|
—
|
—
|
—
|
379
|
(423
|
)
|
44
|
|||||||||||||||||
Equity in earnings of subsidiary
|
—
|
473
|
—
|
(401
|
)
|
(72
|
)
|
—
|
||||||||||||||||
Income (loss) before income taxes
|
(153
|
)
|
482
|
(75
|
)
|
(42
|
)
|
(479
|
)
|
(39
|
)
|
|||||||||||||
Income tax benefit (provision)
|
(29
|
)
|
—
|
22
|
(139
|
)
|
89
|
(1
|
)
|
|||||||||||||||
Net income (loss)
|
(182
|
)
|
482
|
(53
|
)
|
(181
|
)
|
(390
|
)
|
(40
|
)
|
|||||||||||||
Net income (loss) attributable to noncontrolling interest
|
(1
|
)
|
(1
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||
Net income (loss) attributable to Tronox Limited
|
$
|
(181
|
)
|
$
|
483
|
$
|
(53
|
)
|
$
|
(181
|
)
|
$
|
(390
|
)
|
$
|
(40
|
)
|
Consolidated
|
Eliminations
|
Tronox
Finance LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
Net income (loss)
|
$
|
(42
|
)
|
$
|
150
|
$
|
(19
|
)
|
$
|
(40
|
)
|
$
|
(118
|
)
|
$
|
(15
|
)
|
|||||||
Other comprehensive income (loss):
|
||||||||||||||||||||||||
Foreign currency translation adjustments
|
69
|
(118
|
)
|
—
|
51
|
68
|
68
|
|||||||||||||||||
Pension and postretirement plans
|
(22
|
)
|
31
|
—
|
(22
|
)
|
(9
|
)
|
(22
|
)
|
||||||||||||||
Unrealized gains (losses) on derivative financial instruments
|
(1
|
)
|
1
|
—
|
(1
|
)
|
(1
|
)
|
—
|
|||||||||||||||
Other comprehensive income (loss)
|
46
|
(86
|
)
|
—
|
28
|
58
|
46
|
|||||||||||||||||
Total comprehensive income (loss)
|
4
|
64
|
(19
|
)
|
(12
|
)
|
(60
|
)
|
31
|
|||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest:
|
||||||||||||||||||||||||
Net income (loss)
|
(2
|
)
|
(2
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||
Foreign currency translation adjustments
|
18
|
18
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest
|
16
|
16
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Comprehensive income (loss) attributable to Tronox Limited
|
$
|
(12
|
)
|
$
|
48
|
$
|
(19
|
)
|
$
|
(12
|
)
|
$
|
(60
|
)
|
$
|
31
|
Consolidated
|
Eliminations
|
Tronox
Finance LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
Net income (loss)
|
$
|
(182
|
)
|
$
|
482
|
$
|
(53
|
)
|
$
|
(181
|
)
|
$
|
(390
|
)
|
$
|
(40
|
)
|
|||||||
Other comprehensive income (loss):
|
||||||||||||||||||||||||
Foreign currency translation adjustments
|
122
|
(208
|
)
|
—
|
91
|
118
|
121
|
|||||||||||||||||
Pension and postretirement plans
|
(21
|
)
|
30
|
—
|
(21
|
)
|
(8
|
)
|
(22
|
)
|
||||||||||||||
Unrealized gains (losses) on derivative financial instruments
|
1
|
(1
|
)
|
—
|
1
|
1
|
—
|
|||||||||||||||||
Other comprehensive income (loss)
|
102
|
(179
|
)
|
—
|
71
|
111
|
99
|
|||||||||||||||||
Total comprehensive income (loss)
|
(80
|
)
|
303
|
(53
|
)
|
(110
|
)
|
(279
|
)
|
59
|
||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest:
|
||||||||||||||||||||||||
Net income (loss)
|
(1
|
)
|
(1
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||
Foreign currency translation adjustments
|
31
|
31
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest
|
30
|
30
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Comprehensive income (loss) attributable to Tronox Limited
|
$
|
(110
|
)
|
$
|
273
|
$
|
(53
|
)
|
$
|
(110
|
)
|
$
|
(279
|
)
|
$
|
59
|
Consolidated
|
Eliminations
|
Tronox
Finance LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Cash and cash equivalents
|
$
|
202
|
$
|
—
|
$
|
1
|
$
|
3
|
$
|
163
|
$
|
35
|
||||||||||||
Restricted cash
|
3
|
—
|
—
|
—
|
3
|
—
|
||||||||||||||||||
Accounts receivable, net
|
394
|
—
|
—
|
—
|
314
|
80
|
||||||||||||||||||
Inventories, net
|
558
|
(14
|
)
|
—
|
—
|
360
|
212
|
|||||||||||||||||
Other current assets
|
45
|
(4,978
|
)
|
644
|
1,831
|
1,294
|
1,254
|
|||||||||||||||||
Investment in subsidiaries
|
—
|
2,888
|
—
|
(3,602
|
)
|
714
|
—
|
|||||||||||||||||
Property, plant and equipment, net
|
1,850
|
—
|
—
|
—
|
1,338
|
512
|
||||||||||||||||||
Mineral leaseholds, net
|
1,617
|
—
|
—
|
—
|
1,243
|
374
|
||||||||||||||||||
Intercompany loans receivable
|
—
|
(6,942
|
)
|
610
|
5,936
|
77
|
319
|
|||||||||||||||||
Other long-term assets
|
256
|
—
|
—
|
—
|
238
|
18
|
||||||||||||||||||
Total assets
|
$
|
4,925
|
$
|
(9,046
|
)
|
$
|
1,255
|
$
|
4,168
|
$
|
5,744
|
$
|
2,804
|
|||||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||||||||
Short-term debt
|
$
|
150
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
150
|
$
|
—
|
||||||||||||
Other current liabilities
|
383
|
(4,978
|
)
|
18
|
2,691
|
2,451
|
201
|
|||||||||||||||||
Long-term debt
|
2,889
|
—
|
1,460
|
—
|
—
|
1,429
|
||||||||||||||||||
Intercompany loans payable
|
—
|
(6,942
|
)
|
—
|
611
|
6,255
|
76
|
|||||||||||||||||
Other long-term liabilities
|
496
|
—
|
—
|
1
|
277
|
218
|
||||||||||||||||||
Total liabilities
|
3,918
|
(11,920
|
)
|
1,478
|
3,303
|
9,133
|
1,924
|
|||||||||||||||||
Total equity
|
1,007
|
2,874
|
(223
|
)
|
865
|
(3,389
|
)
|
880
|
||||||||||||||||
Total liabilities and equity
|
$
|
4,925
|
$
|
(9,046
|
)
|
$
|
1,255
|
$
|
4,168
|
$
|
5,744
|
$
|
2,804
|
Consolidated
|
Eliminations
|
Tronox
Finance LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
|||||||||||||||||||
Cash Flows from Operating Activities:
|
||||||||||||||||||||||||
Net income (loss)
|
$
|
(182
|
)
|
$
|
482
|
$
|
(53
|
)
|
$
|
(181
|
)
|
$
|
(390
|
)
|
$
|
(40
|
)
|
|||||||
Depreciation, depletion and amortization
|
175
|
—
|
—
|
—
|
138
|
37
|
||||||||||||||||||
Other
|
130
|
(482
|
)
|
(52
|
)
|
249
|
456
|
(41
|
)
|
|||||||||||||||
Cash provided by (used in) operating activities
|
123
|
—
|
(105
|
)
|
68
|
204
|
(44
|
)
|
||||||||||||||||
Cash Flows from Investing Activities:
|
||||||||||||||||||||||||
Capital expenditures
|
(87
|
)
|
—
|
—
|
—
|
(57
|
)
|
(30
|
)
|
|||||||||||||||
Proceeds from sale of assets
|
1
|
—
|
—
|
—
|
1
|
—
|
||||||||||||||||||
Collections of intercompany loans
|
—
|
(181
|
)
|
126
|
—
|
—
|
55
|
|||||||||||||||||
Issuance of intercompany loans
|
—
|
100
|
(5
|
)
|
—
|
(95
|
)
|
—
|
||||||||||||||||
Cash provided by (used in) investing activities
|
(86
|
)
|
(81
|
)
|
121
|
—
|
(151
|
)
|
25
|
|||||||||||||||
Cash Flows from Financing Activities:
|
||||||||||||||||||||||||
Repayments of debt
|
(27
|
)
|
—
|
(15
|
)
|
—
|
—
|
(12
|
)
|
|||||||||||||||
Repayments of intercompany loans
|
—
|
181
|
—
|
(126
|
)
|
(55
|
)
|
—
|
||||||||||||||||
Proceeds from intercompany loans
|
—
|
(100
|
)
|
—
|
100
|
—
|
—
|
|||||||||||||||||
Dividends paid
|
(40
|
)
|
—
|
—
|
(40
|
)
|
—
|
—
|
||||||||||||||||
Cash provided by (used in) financing activities
|
(67
|
)
|
81
|
(15
|
)
|
(66
|
)
|
(55
|
)
|
(12
|
)
|
|||||||||||||
Effects of exchange rate changes on cash and cash equivalents
|
3
|
—
|
—
|
—
|
—
|
3
|
||||||||||||||||||
Net increase (decrease) in cash and cash equivalents
|
(27
|
)
|
—
|
1
|
2
|
(2
|
)
|
(28
|
)
|
|||||||||||||||
Cash and cash equivalents at beginning of period
|
$
|
229
|
$
|
—
|
$
|
—
|
$
|
1
|
$
|
165
|
$
|
63
|
||||||||||||
Cash and cash equivalents at end of period
|
$
|
202
|
$
|
—
|
$
|
1
|
$
|
3
|
$
|
163
|
$
|
35
|
Consolidated
|
Eliminations
|
Tronox
Finance LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
Net sales
|
$
|
575
|
$
|
(51
|
)
|
$
|
—
|
$
|
—
|
$
|
462
|
$
|
164
|
|||||||||||
Cost of goods sold
|
536
|
(53
|
)
|
—
|
—
|
434
|
155
|
|||||||||||||||||
Gross profit
|
39
|
2
|
—
|
—
|
28
|
9
|
||||||||||||||||||
Selling, general and administrative expenses
|
(55
|
)
|
—
|
—
|
(3
|
)
|
(41
|
)
|
(11
|
)
|
||||||||||||||
Restructuring expense
|
(5
|
)
|
—
|
—
|
—
|
(5
|
)
|
—
|
||||||||||||||||
Income (loss) from operations
|
(21
|
)
|
2
|
—
|
(3
|
)
|
(18
|
)
|
(2
|
)
|
||||||||||||||
Interest and debt expense, net
|
(45
|
)
|
—
|
(27
|
)
|
—
|
(2
|
)
|
(16
|
)
|
||||||||||||||
Intercompany interest income (expense)
|
—
|
—
|
—
|
86
|
(100
|
)
|
14
|
|||||||||||||||||
Other income (expense), net
|
23
|
—
|
—
|
3
|
5
|
15
|
||||||||||||||||||
Equity in earnings of subsidiary
|
—
|
113
|
—
|
(112
|
)
|
(1
|
)
|
—
|
||||||||||||||||
Income (loss) before income taxes
|
(43
|
)
|
115
|
(27
|
)
|
(26
|
)
|
(116
|
)
|
11
|
||||||||||||||
Income tax benefit (provision)
|
(11
|
)
|
—
|
8
|
(34
|
)
|
17
|
(2
|
)
|
|||||||||||||||
Net income (loss)
|
(54
|
)
|
115
|
(19
|
)
|
(60
|
)
|
(99
|
)
|
9
|
||||||||||||||
Net income attributable to noncontrolling interest
|
6
|
6
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Net income (loss) attributable to Tronox Limited
|
$
|
(60
|
)
|
$
|
109
|
$
|
(19
|
)
|
$
|
(60
|
)
|
$
|
(99
|
)
|
$
|
9
|
Consolidated
|
Eliminations
|
Tronox
Finance LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
Net sales
|
$
|
1,577
|
$
|
(154
|
)
|
$
|
—
|
$
|
—
|
$
|
1,200
|
$
|
531
|
|||||||||||
Cost of goods sold
|
1,479
|
(146
|
)
|
—
|
—
|
1,117
|
508
|
|||||||||||||||||
Gross profit
|
98
|
(8
|
)
|
—
|
—
|
83
|
23
|
|||||||||||||||||
Selling, general and administrative expenses
|
(171
|
)
|
2
|
(1
|
)
|
1
|
(144
|
)
|
(29
|
)
|
||||||||||||||
Restructuring expense
|
(7
|
)
|
—
|
—
|
—
|
(7
|
)
|
—
|
||||||||||||||||
Income (loss) from operations
|
(80
|
)
|
(6
|
)
|
(1
|
)
|
1
|
(68
|
)
|
(6
|
)
|
|||||||||||||
Interest and debt expense, net
|
(131
|
)
|
—
|
(77
|
)
|
—
|
(5
|
)
|
(49
|
)
|
||||||||||||||
Intercompany interest income (expense)
|
—
|
—
|
—
|
350
|
(386
|
)
|
36
|
|||||||||||||||||
Other income (expense), net
|
22
|
—
|
—
|
4
|
2
|
16
|
||||||||||||||||||
Equity in earnings of subsidiary
|
—
|
480
|
—
|
(449
|
)
|
(31
|
)
|
—
|
||||||||||||||||
Income (loss) before income taxes
|
(189
|
)
|
474
|
(78
|
)
|
(94
|
)
|
(488
|
)
|
(3
|
)
|
|||||||||||||
Income tax benefit (provision)
|
(29
|
)
|
—
|
23
|
(134
|
)
|
84
|
(2
|
)
|
|||||||||||||||
Net income (loss)
|
(218
|
)
|
474
|
(55
|
)
|
(228
|
)
|
(404
|
)
|
(5
|
)
|
|||||||||||||
Net income attributable to noncontrolling interest
|
10
|
10
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Net income (loss) attributable to Tronox Limited
|
$
|
(228
|
)
|
$
|
464
|
$
|
(55
|
)
|
$
|
(228
|
)
|
$
|
(404
|
)
|
$
|
(5
|
)
|
Consolidated
|
Eliminations
|
Tronox
Finance LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
Net income (loss)
|
$
|
(54
|
)
|
$
|
115
|
$
|
(19
|
)
|
$
|
(60
|
)
|
$
|
(99
|
)
|
$
|
9
|
||||||||
Other comprehensive income (loss):
|
||||||||||||||||||||||||
Foreign currency translation adjustments
|
(135
|
)
|
234
|
—
|
(100
|
)
|
(135
|
)
|
(134
|
)
|
||||||||||||||
Pension and postretirement plans
|
1
|
(1
|
)
|
—
|
1
|
1
|
—
|
|||||||||||||||||
Other comprehensive income (loss)
|
(134
|
)
|
233
|
—
|
(99
|
)
|
(134
|
)
|
(134
|
)
|
||||||||||||||
Total comprehensive income (loss)
|
(188
|
)
|
348
|
(19
|
)
|
(159
|
)
|
(233
|
)
|
(125
|
)
|
|||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest:
|
||||||||||||||||||||||||
Net income
|
6
|
6
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Foreign currency translation adjustments
|
(35
|
)
|
(35
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest
|
(29
|
)
|
(29
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||
Comprehensive income (loss) attributable to Tronox Limited
|
$
|
(159
|
)
|
$
|
377
|
$
|
(19
|
)
|
$
|
(159
|
)
|
$
|
(233
|
)
|
$
|
(125
|
)
|
Consolidated
|
Eliminations
|
Tronox
Finance LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
Net income (loss)
|
$
|
(218
|
)
|
$
|
474
|
$
|
(55
|
)
|
$
|
(228
|
)
|
$
|
(404
|
)
|
$
|
(5
|
)
|
|||||||
Other comprehensive income (loss):
|
||||||||||||||||||||||||
Foreign currency translation adjustments
|
(187
|
)
|
327
|
—
|
(138
|
)
|
(189
|
)
|
(187
|
)
|
||||||||||||||
Pension and postretirement plans
|
3
|
(3
|
)
|
—
|
3
|
3
|
—
|
|||||||||||||||||
Other comprehensive income (loss)
|
(184
|
)
|
324
|
—
|
(135
|
)
|
(186
|
)
|
(187
|
)
|
||||||||||||||
Total comprehensive income (loss)
|
(402
|
)
|
798
|
(55
|
)
|
(363
|
)
|
(590
|
)
|
(192
|
)
|
|||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest:
|
||||||||||||||||||||||||
Net income
|
10
|
10
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Foreign currency translation adjustments
|
(49
|
)
|
(49
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest
|
(39
|
)
|
(39
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||
Comprehensive income (loss) attributable to Tronox Limited
|
$
|
(363
|
)
|
$
|
837
|
$
|
(55
|
)
|
$
|
(363
|
)
|
$
|
(590
|
)
|
$
|
(192
|
)
|
Consolidated
|
Eliminations
|
Tronox
Finance LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Cash and cash equivalents
|
$
|
229
|
$
|
—
|
$
|
—
|
$
|
1
|
$
|
165
|
$
|
63
|
||||||||||||
Restricted cash
|
5
|
—
|
—
|
—
|
5
|
—
|
||||||||||||||||||
Accounts receivable, net
|
391
|
—
|
—
|
—
|
303
|
88
|
||||||||||||||||||
Inventories, net
|
630
|
(24
|
)
|
—
|
—
|
439
|
215
|
|||||||||||||||||
Other current assets
|
46
|
(4,345
|
)
|
657
|
1,473
|
1,149
|
1,112
|
|||||||||||||||||
Investment in subsidiaries
|
—
|
2,596
|
—
|
(3,274
|
)
|
678
|
—
|
|||||||||||||||||
Property, plant and equipment, net
|
1,843
|
—
|
—
|
—
|
1,388
|
455
|
||||||||||||||||||
Mineral leaseholds, net
|
1,604
|
—
|
—
|
—
|
1,266
|
338
|
||||||||||||||||||
Intercompany loans receivable
|
—
|
(7,106
|
)
|
688
|
5,936
|
76
|
406
|
|||||||||||||||||
Other long-term assets
|
279
|
—
|
4
|
—
|
258
|
17
|
||||||||||||||||||
Total assets
|
$
|
5,027
|
$
|
(8,879
|
)
|
$
|
1,349
|
$
|
4,136
|
$
|
5,727
|
$
|
2,694
|
|||||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||||||||
Short-term debt
|
$
|
150
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
150
|
$
|
—
|
||||||||||||
Other current liabilities
|
398
|
(4,345
|
)
|
$
|
45
|
2,443
|
2,081
|
174
|
||||||||||||||||
Long-term debt
|
2,910
|
—
|
1,470
|
—
|
—
|
1,440
|
||||||||||||||||||
Intercompany loans payable
|
—
|
(7,106
|
)
|
5
|
694
|
6,338
|
69
|
|||||||||||||||||
Other long-term liabilities
|
459
|
—
|
—
|
1
|
267
|
191
|
||||||||||||||||||
Total liabilities
|
3,917
|
(11,451
|
)
|
1,520
|
3,138
|
8,836
|
1,874
|
|||||||||||||||||
Total equity
|
1,110
|
2,572
|
(171
|
)
|
998
|
(3,109
|
)
|
820
|
||||||||||||||||
Total liabilities and equity
|
$
|
5,027
|
$
|
(8,879
|
)
|
$
|
1,349
|
$
|
4,136
|
$
|
5,727
|
$
|
2,694
|
Consolidated
|
Eliminations
|
Tronox
Finance LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
|||||||||||||||||||
Cash Flows from Operating Activities:
|
||||||||||||||||||||||||
Net income (loss)
|
$
|
(218
|
)
|
$
|
474
|
$
|
(55
|
)
|
$
|
(228
|
)
|
$
|
(404
|
)
|
$
|
(5
|
)
|
|||||||
Depreciation, depletion and amortization
|
222
|
—
|
—
|
—
|
170
|
52
|
||||||||||||||||||
Other
|
41
|
(474
|
)
|
578
|
234
|
333
|
(630
|
)
|
||||||||||||||||
Cash provided by (used in) operating activities
|
45
|
—
|
523
|
6
|
99
|
(583
|
)
|
|||||||||||||||||
Cash Flows from Investing Activities:
|
||||||||||||||||||||||||
Capital expenditures
|
(141
|
)
|
—
|
—
|
—
|
(44
|
)
|
(97
|
)
|
|||||||||||||||
Acquisition of business
|
(1,653
|
)
|
—
|
—
|
—
|
(1,653
|
)
|
—
|
||||||||||||||||
Investment in subsidiaries
|
—
|
1,526
|
—
|
(1,526
|
)
|
—
|
—
|
|||||||||||||||||
Return of capital from subsidiaries
|
—
|
(24
|
)
|
—
|
24
|
—
|
—
|
|||||||||||||||||
Collections of intercompany loans
|
—
|
(724
|
)
|
79
|
25
|
43
|
577
|
|||||||||||||||||
Issuance of Intercompany loans
|
—
|
1,386
|
(589
|
)
|
(3
|
)
|
(237
|
)
|
(557
|
)
|
||||||||||||||
Cash provided by (used in) investing activities
|
(1,794
|
)
|
2,164
|
(510
|
)
|
(1,480
|
)
|
(1,891
|
)
|
(77
|
)
|
|||||||||||||
Cash Flows from Financing Activities:
|
||||||||||||||||||||||||
Repayments of debt
|
(13
|
)
|
—
|
—
|
—
|
(2
|
)
|
(11
|
)
|
|||||||||||||||
Repayments of intercompany loans
|
—
|
724
|
—
|
(102
|
)
|
(601
|
)
|
(21
|
)
|
|||||||||||||||
Proceeds from debt
|
750
|
—
|
—
|
—
|
150
|
600
|
||||||||||||||||||
Proceeds from intercompany loans
|
—
|
(1,386
|
)
|
—
|
1,380
|
3
|
3
|
|||||||||||||||||
Contribution from parent
|
—
|
(1,526
|
)
|
—
|
—
|
1,526
|
—
|
|||||||||||||||||
Return of capital to parent
|
—
|
24
|
—
|
—
|
(24
|
)
|
—
|
|||||||||||||||||
Debt issuance costs
|
(15
|
)
|
—
|
(13
|
)
|
—
|
(2
|
)
|
—
|
|||||||||||||||
Dividends paid
|
(88
|
)
|
—
|
—
|
(88
|
)
|
—
|
—
|
||||||||||||||||
Proceeds from the exercise of warrants and options
|
3
|
—
|
—
|
3
|
—
|
—
|
||||||||||||||||||
Cash provided by (used in) financing activities
|
637
|
(2,164
|
)
|
(13
|
)
|
1,193
|
1,050
|
571
|
||||||||||||||||
Effects of exchange rate changes on cash and cash equivalents
|
(19
|
)
|
—
|
—
|
—
|
—
|
(19
|
)
|
||||||||||||||||
Net increase (decrease) in cash and cash equivalents
|
(1,131
|
)
|
—
|
—
|
(281
|
)
|
(742
|
)
|
(108
|
)
|
||||||||||||||
Cash and cash equivalents at beginning of period
|
$
|
1,276
|
$
|
—
|
$
|
—
|
$
|
283
|
$
|
815
|
$
|
178
|
||||||||||||
Cash and cash equivalents at end of period
|
$
|
145
|
$
|
—
|
$
|
—
|
$
|
2
|
$
|
73
|
$
|
70
|
• |
Exploration, mining, and beneficiation of mineral sands deposits;
|
• |
Production of titanium feedstock (including chloride slag, slag fines, rutile, synthetic rutile and leucoxene), pig iron, and zircon;
|
• |
Production and marketing of TiO
2
; and
|
• |
Electrolytic manganese dioxide manufacturing and marketing, which is primarily focused on advanced battery materials and specialty boron products.
|
• |
Dry mining of trona ore underground at our Westvaco facility;
|
• |
Secondary recovery of trona from previously dry mined areas underground at our Westvaco and Granger facilities through solution mining;
|
• |
Refining of raw trona ore into soda ash and specialty sodium alkali products; and
|
• |
Marketing, sale and distribution of alkali products.
|
Capacity (metric tons per year)
|
KZN Sands
|
|||
Rutile
|
25,000
|
|||
Titanium Slag
|
220,000
|
|||
Zircon
|
55,000
|
|||
Pig Iron
|
121,000
|
|||
Reserve life of mine
|
12+ Years
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||
2016
|
2015
|
Variance
|
2016
|
2015
|
Variance
|
|||||||||||||||||||
(Millions of U.S. dollars)
|
||||||||||||||||||||||||
Net sales
|
$
|
533
|
$
|
575
|
$
|
(42
|
)
|
$
|
1,545
|
$
|
1,577
|
$
|
(32
|
)
|
||||||||||
Cost of goods sold
|
453
|
536
|
(83
|
)
|
1,388
|
1,479
|
(91
|
)
|
||||||||||||||||
Gross profit
|
80
|
39
|
41
|
157
|
98
|
59
|
||||||||||||||||||
Selling, general and administrative expenses
|
(54
|
)
|
(55
|
)
|
1
|
(151
|
)
|
(171
|
)
|
20
|
||||||||||||||
Restructuring expense
|
(1
|
)
|
(5
|
)
|
4
|
(2
|
)
|
(7
|
)
|
5
|
||||||||||||||
Income (loss) from operations
|
25
|
(21
|
)
|
46
|
4
|
(80
|
)
|
84
|
||||||||||||||||
Interest and debt expense, net
|
(46
|
)
|
(45
|
)
|
(1
|
)
|
(138
|
)
|
(131
|
)
|
(7
|
)
|
||||||||||||
Gain on extinguishment of debt
|
—
|
—
|
—
|
4
|
—
|
4
|
||||||||||||||||||
Other income (expense), net
|
(14
|
)
|
23
|
(37
|
)
|
(23
|
)
|
22
|
(45
|
)
|
||||||||||||||
Loss before income taxes
|
(35
|
)
|
(43
|
)
|
8
|
(153
|
)
|
(189
|
)
|
36
|
||||||||||||||
Income tax provision
|
(7
|
)
|
(11
|
)
|
4
|
(29
|
)
|
(29
|
)
|
—
|
||||||||||||||
Net loss
|
$
|
(42
|
)
|
$
|
(54
|
)
|
$
|
12
|
$
|
(182
|
)
|
$
|
(218
|
)
|
$
|
36
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||
2016
|
2015
|
Variance
|
2016
|
2015
|
Variance
|
|||||||||||||||||||
(Millions of U.S. dollars)
|
||||||||||||||||||||||||
TiO
2
segment
|
$
|
339
|
$
|
380
|
$
|
(41
|
)
|
$
|
957
|
$
|
1,174
|
$
|
(217
|
)
|
||||||||||
Alkali segment
|
194
|
195
|
(1
|
)
|
588
|
403
|
185
|
|||||||||||||||||
Net Sales
|
$
|
533
|
$
|
575
|
$
|
(42
|
)
|
$
|
1,545
|
$
|
1,577
|
$
|
(32
|
)
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||
2016
|
2015
|
Variance
|
2016
|
2015
|
Variance
|
||||||||||||||||||||
(Millions of U.S. dollars)
|
|||||||||||||||||||||||||
TiO
2
segment
|
$
|
18
|
$
|
(26
|
)
|
$
|
44
|
$
|
(12
|
)
|
$
|
(58
|
)
|
$
|
46
|
||||||||||
Alkali segment
|
23
|
21
|
2
|
54
|
46
|
8
|
|||||||||||||||||||
Corporate
|
(16
|
)
|
(16
|
)
|
—
|
(38
|
)
|
(68
|
)
|
30
|
|||||||||||||||
Income (loss) from operations
|
25
|
(21
|
)
|
$
|
46
|
4
|
|
(80
|
)
|
$
|
84
|
||||||||||||||
Interest and debt expense, net
|
(46
|
)
|
(45
|
)
|
(138
|
)
|
(131
|
)
|
|||||||||||||||||
Gain on extinguishment of debt
|
—
|
—
|
4
|
—
|
|||||||||||||||||||||
Other income (expense), net
|
(14
|
)
|
23
|
(23
|
)
|
22
|
|||||||||||||||||||
Loss before income taxes
|
(35
|
)
|
(43
|
)
|
(153
|
)
|
(189
|
)
|
|||||||||||||||||
Income tax provision
|
(7
|
)
|
(11
|
)
|
(29
|
)
|
(29
|
)
|
|||||||||||||||||
Net loss
|
$
|
(42
|
)
|
$
|
(54
|
)
|
$
|
(182
|
)
|
$
|
(218
|
)
|
September 30,
2016
|
June 30,
2016
|
March 31,
2016
|
December 31,
2015
|
|||||||||||||
Cash and cash equivalents
|
$
|
202
|
$
|
188
|
$
|
152
|
$
|
229
|
||||||||
Available under the UBS Revolver
|
173
|
183
|
204
|
217
|
||||||||||||
Available under the ABSA Revolver
|
95
|
89
|
88
|
84
|
||||||||||||
Total
|
$
|
470
|
$
|
460
|
$
|
444
|
$
|
530
|
Three Months
Ended March 31,
2016
|
Three Months
Ended June 30,
2016
|
Three Months
Ended September 30,
2016
|
||||||||||
Dividend per share
|
$
|
0.25
|
$
|
0.045
|
$
|
0.045
|
||||||
Total dividend
|
$
|
30
|
$
|
5
|
$
|
5
|
||||||
Record date (close of business)
|
March 4
|
May 16
|
August 17
|
Original
Principal
|
Annual
Interest Rate
|
Maturity
Date
|
September 30
2016
|
December 31,
2015
|
|||||||||||||
(Millions of U.S. dollars)
|
|||||||||||||||||
Term Loan, net of unamortized discount
(1)
|
$
|
1,500
|
Variable
|
3/19/2020
|
$
|
1,444
|
$
|
1,454
|
|||||||||
Senior Notes due 2020
|
$
|
900
|
6.375
|
%
|
8/15/2020
|
896
|
900
|
||||||||||
Senior Notes due 2022
|
$
|
600
|
7.50
|
%
|
3/15/2022
|
584
|
600
|
||||||||||
Co-generation Unit Financing Arrangement
|
$
|
16
|
6.5
|
%
|
2/1/2016
|
—
|
1
|
||||||||||
Lease financing
|
19
|
16
|
|||||||||||||||
Total borrowings
|
2,943
|
2,971
|
|||||||||||||||
Less: Long-term debt due within one year
|
(16
|
)
|
(16
|
)
|
|||||||||||||
Debt issuance costs
|
(38
|
)
|
(45
|
)
|
|||||||||||||
Long-term debt
|
$
|
2,889
|
$
|
2,910
|
(1) |
Average effective interest rate of 4.9% each during the three and nine months ended September 30, 2016, respectively, and 4.7% and 4.6% during the three and nine months ended September 30, 2015, respectively.
|
Nine Months Ended September 30,
|
||||||||
2016
|
2015
|
|||||||
(Millions of U.S. dollars)
|
||||||||
Net cash provided by operating activities
|
$
|
123
|
$
|
45
|
||||
Net cash used in investing activities
|
(86
|
)
|
(1,794
|
)
|
||||
Net cash provided by (used in) financing activities
|
(67
|
)
|
637
|
|||||
Effect of exchange rate changes on cash
|
3
|
(19
|
)
|
|||||
Net decrease in cash and cash equivalents
|
$
|
(27
|
)
|
$
|
(1,131
|
)
|
Contractual Obligation
Payments Due by Year
(3)(4)
|
||||||||||||||||||||
Total
|
Less than
1 year
|
1-3
years
|
3-5
years
|
More than
5 years
|
||||||||||||||||
(Millions of U.S. dollars)
|
||||||||||||||||||||
Long-term debt and lease financing (including interest)
(1)
|
$
|
3,806
|
$
|
333
|
$
|
367
|
$
|
2,474
|
$
|
632
|
||||||||||
Purchase obligations
(2)
|
455
|
120
|
127
|
66
|
142
|
|||||||||||||||
Operating leases
|
187
|
33
|
43
|
36
|
75
|
|||||||||||||||
Asset retirement obligations
|
82
|
4
|
4
|
6
|
68
|
|||||||||||||||
Total
|
$
|
4,530
|
$
|
490
|
$
|
541
|
$
|
2,582
|
$
|
917
|
(1) |
We calculated the Term Loan interest at a base rate of 1% plus a margin of 3.5%. See Note 11 of Notes to unaudited condensed consolidated financial statements.
|
(2) |
Includes obligations to purchase requirements of process chemicals, supplies, utilities and services. We have various purchase commitments for materials, supplies, and services entered into in the ordinary course of business. Included in the purchase commitments table above are contracts which require minimum volume purchases that extend beyond one year or are renewable annually and have been renewed for 2016. Certain contracts allow for changes in minimum required purchase volumes in the event of a temporary or permanent shutdown of a facility. We believe that all of our purchase obligations will be utilized in our normal operations.
|
(3) |
The table above excludes contingent obligations, as well as any possible payments for uncertain tax positions given the inability to estimate the possible amounts and timing of any such payments.
|
(4) |
The table above excludes commitments pertaining to our pension and other postretirement obligations.
|
• |
Reflect our ongoing business in a manner that allows for meaningful period-to-period comparison and analysis of trends in our business, as they exclude income and expense that are not reflective of ongoing operating results;
|
• |
Provide useful information in understanding and evaluating our operating results and comparing financial results across periods;
|
• |
Provide a normalized view of our operating performance by excluding items that are either noncash, infrequently occurring, or non-recurring in nature;
|
• |
Assist investors in assessing our compliance with financial covenants under our debt instruments; and
|
• |
Adjusted EBITDA is one of the primary measures management uses for planning and budgeting processes, and to monitor and evaluate financial and operating results. In addition, Adjusted EBITDA is a factor in evaluating management’s performance when determining incentive compensation.
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
(Millions of U.S. dollars)
|
||||||||||||||||
Net loss (U.S GAAP)
|
$
|
(42
|
)
|
$
|
(54
|
)
|
$
|
(182
|
)
|
$
|
(218
|
)
|
||||
Interest and debt expense, net
|
46
|
45
|
138
|
131
|
||||||||||||
Interest income
|
—
|
(1
|
)
|
(2
|
)
|
(5
|
)
|
|||||||||
Income tax provision
|
7
|
11
|
29
|
29
|
||||||||||||
Depreciation, depletion and amortization expense
|
60
|
82
|
175
|
222
|
||||||||||||
EBITDA (non-U.S. GAAP)
|
71
|
83
|
158
|
159
|
||||||||||||
Amortization of inventory step-up from purchase accounting
(a)
|
—
|
—
|
—
|
9
|
||||||||||||
Alkali Transaction costs
(b)
|
—
|
2
|
—
|
29
|
||||||||||||
Restructuring expense
(c)
|
1
|
5
|
2
|
7
|
||||||||||||
Gain on extinguishment of debt
(d)
|
—
|
—
|
(4
|
)
|
—
|
|||||||||||
Foreign currency remeasurement
(e)
|
14
|
(20
|
)
|
32
|
(16
|
)
|
||||||||||
Other items
(f)
|
12
|
11
|
21
|
24
|
||||||||||||
Adjusted EBITDA (non-U.S GAAP)
(g)
|
$
|
98
|
$
|
81
|
$
|
209
|
$
|
212
|
(a) |
Amortization of inventory step-up from purchase accounting related to the acquisition of the Alkali business which is included in “Cost of goods sold” in the unaudited Condensed Consolidated Statements of Operations.
|
(b) |
One-time non-operating items and the effect of acquisition which is included in "Selling, general and administrative expenses" in the unaudited Condensed Consolidated Statements of Operations.
|
(c) |
Represents severance and other costs associated with the shutdown of our sodium chlorate plant, and other global TiO
2
restructuring efforts, and the Alkali Transaction which was recorded in "Restructuring expense" in the unaudited Condensed Consolidated Statements of Operations. See Note 2 of Notes to unaudited condensed consolidated financial statements.
|
(d) |
Represents the gain associated with the repurchase of $20 million face value of our Senior Notes due 2020 and Senior Notes 2022, which was recorded in "Gain on extinguishment of debt" in the unaudited Condensed Consolidated Statements of Operations.
|
(e) |
Represents foreign currency remeasurement which is included in “Other income (expense), net” in the unaudited Condensed Consolidated Statements of Operations.
|
(f) |
Includes noncash pension and postretirement costs, share-based compensation, severance expense, adjustment of transfer tax related to the Exxaro Transaction, insurance settlement gain and other items included in “Selling general and administrative expenses” and “Cost of goods sold” in the unaudited Condensed Consolidated Statements of Operations.
|
(g) |
No income tax impact given full valuation allowance except for South Africa related restructuring costs of less than $1 million. See Notes 3 and 2 to unaudited condensed consolidated financial statements.
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
TiO
2
segment
|
$
|
18
|
$
|
(26
|
)
|
$
|
(12
|
)
|
$
|
(58
|
)
|
|||||
Alkali segment
|
23
|
21
|
54
|
46
|
||||||||||||
Corporate
|
(16
|
)
|
(16
|
)
|
(38
|
)
|
(68
|
)
|
||||||||
Income (loss) from operations (U.S. GAAP)
|
25
|
(21
|
)
|
4
|
(80
|
)
|
||||||||||
TiO
2
segment
|
44
|
64
|
127
|
189
|
||||||||||||
Alkali segment
|
15
|
16
|
44
|
28
|
||||||||||||
Corporate
|
1
|
2
|
4
|
5
|
||||||||||||
Depreciation, depletion and amortization expense
|
60
|
82
|
175
|
222
|
||||||||||||
TiO
2
segment
|
13
|
20
|
41
|
48
|
||||||||||||
Alkali segment
|
2
|
4
|
5
|
17
|
||||||||||||
Corporate
|
(2
|
)
|
(4
|
)
|
(16
|
)
|
5
|
|||||||||
Other
|
13
|
20
|
30
|
70
|
||||||||||||
TiO
2
segment
|
75
|
58
|
156
|
179
|
||||||||||||
Alkali segment
|
40
|
41
|
103
|
91
|
||||||||||||
Corporate
|
(17
|
)
|
(18
|
)
|
(50
|
)
|
(58
|
)
|
||||||||
Adjusted EBITDA (non-U.S. GAAP)
|
$
|
98
|
$
|
81
|
$
|
209
|
$
|
212
|
Exhibit No.
|
|
10.1
|
Amendment No. 2 to Tronox Limited Management Equity Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on September 9, 2016)
|
10.2
|
Employment Agreement entered into as of October 17, 2016 by and between Tronox LLC and Timothy Carlson (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on October 17, 2016)
|
Rule 13a-14(a) Certification of Thomas Casey.
|
|
Rule 13a-14(a) Certification of Kevin V. Mahoney.
|
|
Section 1350 Certification for Thomas Casey.
|
|
Section 1350 Certification for Kevin V. Mahoney.
|
|
Mine Safety Disclosures.
|
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
TRONOX LIMITED
(Registrant)
|
||
By:
|
/s/ Kevin V. Mahoney
|
|
Name:
|
Kevin V. Mahoney
|
|
Title:
|
Vice President – Corporate Controller and Chief Accounting Officer
|
1 Year Tronox Chart |
1 Month Tronox Chart |
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