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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
|
98-1026700
|
|
(State or Other Jurisdiction of Incorporation or Organization)
|
(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
|
o
(Do not check if a smaller reporting company)
|
Smaller reporting company
|
☐
|
|
Emerging growth company
|
☐
|
Page
|
|
PART I – FINANCIAL INFORMATION
|
|
3
|
|
47
|
|
59
|
|
60
|
|
PART II – OTHER INFORMATION
|
|
60
|
|
61
|
|
62
|
|
62
|
|
62
|
|
62
|
|
63
|
|
64
|
Page
No.
|
|
4
|
|
5
|
|
6
|
|
7
|
|
8
|
|
9
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Net sales
|
$
|
622
|
$
|
538
|
$
|
1,191
|
$
|
1,014
|
||||||||
Cost of goods sold
|
498
|
479
|
977
|
934
|
||||||||||||
Gross profit
|
124
|
59
|
214
|
80
|
||||||||||||
Selling, general and administrative expenses
|
(69
|
)
|
(51
|
)
|
(143
|
)
|
(101
|
)
|
||||||||
Restructuring income (expense)
|
—
|
1
|
—
|
(1
|
)
|
|||||||||||
Income (loss) from operations
|
55
|
9
|
71
|
(22
|
)
|
|||||||||||
Interest and debt expense, net
|
(46
|
)
|
(46
|
)
|
(92
|
)
|
(92
|
)
|
||||||||
Gain on extinguishment of debt
|
—
|
—
|
—
|
4
|
||||||||||||
Other expense, net
|
(1
|
)
|
(3
|
)
|
(7
|
)
|
(12
|
)
|
||||||||
Income (loss) before income taxes
|
8
|
(40
|
)
|
(28
|
)
|
(122
|
)
|
|||||||||
Income tax provision
|
(3
|
)
|
(10
|
)
|
(5
|
)
|
(22
|
)
|
||||||||
Net income (loss)
|
5
|
(50
|
)
|
(33
|
)
|
(144
|
)
|
|||||||||
Net income (loss) attributable to noncontrolling interest
|
2
|
2
|
5
|
1
|
||||||||||||
Net income (loss) attributable to Tronox Limited
|
$
|
3
|
$
|
(52
|
)
|
$
|
(38
|
)
|
$
|
(145
|
)
|
|||||
Net income (loss) per share, basic and diluted
|
$
|
0.02
|
$
|
(0.44
|
)
|
$
|
(0.32
|
)
|
$
|
(1.24
|
)
|
|||||
Weighted average shares outstanding, basic (in thousands)
|
119,188
|
116,184
|
118,804
|
116,052
|
||||||||||||
Weighted average shares outstanding, diluted (in thousands)
|
124,301
|
116,184
|
118,804
|
116,052
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Net income (loss)
|
$
|
5
|
$
|
(50
|
)
|
$
|
(33
|
)
|
$
|
(144
|
)
|
|||||
Other comprehensive income:
|
||||||||||||||||
Foreign currency translation adjustments
|
34
|
—
|
58
|
53
|
||||||||||||
Pension and postretirement plans: amortization of unrecognized actuarial losses, net of taxes of less than $1 million in each of the three and six months ended June 30, 2017 and 2016
|
—
|
—
|
1
|
1
|
||||||||||||
Unrealized gains (losses) on derivative financial instruments (no tax impact; see Note 13)
|
(1
|
)
|
2
|
(3
|
)
|
2
|
||||||||||
Other comprehensive income
|
33
|
2
|
56
|
56
|
||||||||||||
Total comprehensive income (loss)
|
38
|
(48
|
)
|
23
|
(88
|
)
|
||||||||||
Comprehensive income (loss) attributable to noncontrolling interest:
|
||||||||||||||||
Net income (loss)
|
2
|
2
|
5
|
1
|
||||||||||||
Foreign currency translation adjustments
|
7
|
—
|
13
|
13
|
||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest
|
9
|
2
|
18
|
14
|
||||||||||||
Comprehensive income (loss) attributable to Tronox Limited
|
$
|
29
|
$
|
(50
|
)
|
$
|
5
|
$
|
(102
|
)
|
June 30,
2017
|
December 31,
2016
|
|||||||
ASSETS
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$
|
303
|
$
|
248
|
||||
Restricted cash
|
2
|
3
|
||||||
Accounts receivable, net of allowance for doubtful accounts
|
457
|
424
|
||||||
Inventories, net
|
506
|
532
|
||||||
Prepaid and other assets
|
54
|
49
|
||||||
Total current assets
|
1,322
|
1,256
|
||||||
Noncurrent Assets
|
||||||||
Property, plant and equipment, net
|
1,816
|
1,831
|
||||||
Mineral leaseholds, net
|
1,608
|
1,607
|
||||||
Intangible assets, net
|
210
|
223
|
||||||
Inventories, net
|
15
|
14
|
||||||
Other long-term assets
|
23
|
22
|
||||||
Total assets
|
$
|
4,994
|
$
|
4,953
|
||||
LIABILITIES AND EQUITY
|
||||||||
Current Liabilities
|
||||||||
Accounts payable
|
$
|
201
|
$
|
180
|
||||
Accrued liabilities
|
181
|
186
|
||||||
Short-term debt
|
150
|
150
|
||||||
Long-term debt due within one year
|
16
|
16
|
||||||
Income taxes payable
|
2
|
1
|
||||||
Total current liabilities
|
550
|
533
|
||||||
Noncurrent Liabilities
|
||||||||
Long-term debt, net
|
2,886
|
2,888
|
||||||
Pension and postretirement healthcare benefits
|
116
|
122
|
||||||
Asset retirement obligations
|
76
|
73
|
||||||
Long-term deferred tax liabilities
|
161
|
152
|
||||||
Other long-term liabilities
|
30
|
32
|
||||||
Total liabilities
|
3,819
|
3,800
|
||||||
Commitments and Contingencies
|
||||||||
Shareholders’ Equity
|
||||||||
Tronox Limited Class A ordinary shares, par value $0.01 — 67,903,699 shares issued and 67,727,227 share outstanding at June 30, 2017 and 65,998,306 shares issued and 65,165,672 shares outstanding at December 31, 2016
|
1
|
1
|
||||||
Tronox Limited Class B ordinary shares, par value $0.01 — 51,154,280 shares issued and outstanding at June 30, 2017 and December 31, 2016
|
—
|
—
|
||||||
Capital in excess of par value
|
1,535
|
1,524
|
||||||
Accumulated deficit
|
(69
|
)
|
(19
|
)
|
||||
Accumulated other comprehensive loss
|
(454
|
)
|
(497
|
)
|
||||
Total Tronox Limited shareholders’ equity
|
1,013
|
1,009
|
||||||
Noncontrolling interest
|
162
|
144
|
||||||
Total equity
|
1,175
|
1,153
|
||||||
Total liabilities and equity
|
$
|
4,994
|
$
|
4,953
|
Six Months
Ended June 30,
|
||||||||
2017
|
2016
|
|||||||
Cash Flows from Operating Activities:
|
||||||||
Net loss
|
$
|
(33
|
)
|
$
|
(144
|
)
|
||
Adjustments to reconcile net loss to net cash provided by operating activities:
|
||||||||
Depreciation, depletion and amortization
|
123
|
115
|
||||||
Deferred income taxes
|
2
|
(3
|
)
|
|||||
Share-based compensation expense
|
22
|
10
|
||||||
Amortization of deferred debt issuance costs and discount on debt
|
6
|
5
|
||||||
Pension and postretirement healthcare benefit expense
|
4
|
3
|
||||||
Gain on extinguishment of debt
|
—
|
(4
|
)
|
|||||
Other, net
|
9
|
20
|
||||||
Contributions to employee pension and postretirement plans
|
(11
|
)
|
(9
|
)
|
||||
Changes in assets and liabilities:
|
||||||||
(Increase) decrease in accounts receivable, net
|
(28
|
)
|
(13
|
)
|
||||
(Increase) decrease in inventories, net
|
36
|
87
|
||||||
(Increase) decrease in prepaid and other assets
|
(6
|
)
|
(2
|
)
|
||||
Increase (decrease) in accounts payable and accrued liabilities
|
12
|
(16
|
)
|
|||||
Increase (decrease) in taxes payable
|
1
|
20
|
||||||
Cash provided by operating activities
|
137
|
69
|
||||||
Cash Flows from Investing Activities:
|
||||||||
Capital expenditures
|
(56
|
)
|
(55
|
)
|
||||
Proceeds on sale of assets
|
—
|
1
|
||||||
Cash used in investing activities
|
(56
|
)
|
(54
|
)
|
||||
Cash Flows from Financing Activities:
|
||||||||
Repayments of debt
|
(8
|
)
|
(23
|
)
|
||||
Dividends paid
|
(12
|
)
|
(35
|
)
|
||||
Restricted stock and performance-based shares settled in cash for taxes
|
(11
|
)
|
—
|
|||||
Cash used in financing activities
|
(31
|
)
|
(58
|
)
|
||||
Effects of exchange rate changes on cash and cash equivalents
|
5
|
2
|
||||||
Net increase (decrease) in cash and cash equivalents
|
55
|
(41
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
248
|
229
|
||||||
Cash and cash equivalents at end of period
|
$
|
303
|
$
|
188
|
Tronox
Limited
Class A
Ordinary
Shares
|
Tronox
Limited
Class B
Ordinary
Shares
|
Capital in
Excess of
par Value
|
Accumulated
Deficit
|
Accumulated
Other
Comprehensive
Loss
|
Total
Tronox
Limited
Shareholders’
Equity
|
Non-
controlling
Interest
|
Total
Equity
|
|||||||||||||||||||||||||
Balance at January 1, 2017
|
$
|
1
|
$
|
—
|
$
|
1,524
|
$
|
(19
|
)
|
$
|
(497
|
)
|
$
|
1,009
|
$
|
144
|
$
|
1,153
|
||||||||||||||
Net income (loss)
|
—
|
—
|
—
|
(38
|
)
|
—
|
(38
|
)
|
5
|
(33
|
)
|
|||||||||||||||||||||
Other comprehensive income
|
—
|
—
|
—
|
—
|
43
|
43
|
13
|
56
|
||||||||||||||||||||||||
Share-based compensation
|
—
|
—
|
22
|
—
|
—
|
22
|
—
|
22
|
||||||||||||||||||||||||
Shares cancelled
|
—
|
—
|
(11
|
)
|
—
|
—
|
(11
|
)
|
—
|
(11
|
)
|
|||||||||||||||||||||
Class A and Class B share dividends
|
—
|
—
|
—
|
(12
|
)
|
—
|
(12
|
)
|
—
|
(12
|
)
|
|||||||||||||||||||||
Balance at June 30, 2017
|
$
|
1
|
$
|
—
|
$
|
1,535
|
$
|
(69
|
)
|
$
|
(454
|
)
|
$
|
1,013
|
$
|
162
|
$
|
1,175
|
1. |
The Company
|
Three Months Ended June 30, 2016
|
Six Months Ended June 30, 2016
|
|||||||||||||||||||||||
As
Reported
|
Adjustment
|
Revised
|
As
Reported
|
Adjustment
|
Revised
|
|||||||||||||||||||
Net sales
|
$
|
537
|
$
|
1
|
$
|
538
|
$
|
1,012
|
$
|
2
|
$
|
1,014
|
||||||||||||
Cost of goods sold
|
480
|
(1
|
)
|
479
|
935
|
(1
|
)
|
934
|
||||||||||||||||
Gross profit
|
57
|
2
|
59
|
77
|
3
|
80
|
||||||||||||||||||
Selling, general and administrative expenses
|
(50
|
)
|
(1
|
)
|
(51
|
)
|
(97
|
)
|
(4
|
)
|
(101
|
)
|
||||||||||||
Income (loss) from operations
|
8
|
1
|
9
|
(21
|
)
|
(1
|
)
|
(22
|
)
|
|||||||||||||||
Other expense, net
|
—
|
(3
|
)
|
(3
|
)
|
(9
|
)
|
(3
|
)
|
(12
|
)
|
|||||||||||||
Loss before income taxes
|
(38
|
)
|
(2
|
)
|
(40
|
)
|
(118
|
)
|
(4
|
)
|
(122
|
)
|
||||||||||||
Net loss
|
(48
|
)
|
(2
|
)
|
(50
|
)
|
(140
|
)
|
(4
|
)
|
(144
|
)
|
||||||||||||
Net loss attributable to Tronox Limited
|
(50
|
)
|
(2
|
)
|
(52
|
)
|
(141
|
)
|
(4
|
)
|
(145
|
)
|
||||||||||||
Loss per share, basic and diluted
|
(0.42
|
)
|
(0.02
|
)
|
(0.44
|
)
|
(1.21
|
)
|
(0.03
|
)
|
(1.24
|
)
|
||||||||||||
Weighted average shares outstanding, basic and diluted (in thousands)
|
116,184
|
116,184
|
116,184
|
116,052
|
116,052
|
116,052
|
Three Months Ended June 30, 2016
|
Six Months Ended June 30, 2016
|
|||||||||||||||||||||||
As
Reported
|
Adjustment
|
Revised
|
As
Reported
|
Adjustment
|
Revised
|
|||||||||||||||||||
Net loss
|
$
|
(48
|
)
|
$
|
(2
|
)
|
$
|
(50
|
)
|
$
|
(140
|
)
|
$
|
(4
|
)
|
$
|
(144
|
)
|
||||||
Total comprehensive loss
|
(46
|
)
|
(2
|
)
|
(48
|
)
|
(84
|
)
|
(4
|
)
|
(88
|
)
|
||||||||||||
Comprehensive loss attributable to Tronox Limited
|
(48
|
)
|
(2
|
)
|
(50
|
)
|
(98
|
)
|
(4
|
)
|
(102
|
)
|
December 31, 2016
|
||||||||||||
As Reported
|
Adjustment
|
Revised
|
||||||||||
Accounts receivable, net of allowance for doubtful accounts
|
$
|
421
|
$
|
3
|
$
|
424
|
||||||
Total current assets
|
1,253
|
3
|
1,256
|
|||||||||
Total assets
|
4,950
|
3
|
4,953
|
|||||||||
Accrued liabilities
|
174
|
11
|
185
|
|||||||||
Total current liabilities
|
522
|
11
|
533
|
|||||||||
Total liabilities
|
3,789
|
11
|
3,800
|
|||||||||
Accumulated deficit
|
(13
|
)
|
(6
|
)
|
(19
|
)
|
||||||
Accumulated other comprehensive loss
|
(495
|
)
|
(2
|
)
|
(497
|
)
|
||||||
Total Tronox Limited shareholders’ equity
|
1,017
|
(8
|
)
|
1,009
|
||||||||
Total equity
|
1,161
|
(8
|
)
|
1,153
|
||||||||
Total liabilities and equity
|
4,950
|
3
|
4,953
|
2. |
Restructuring Expenses
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Wyoming Restructure
|
$
|
—
|
$
|
—
|
$
|
(1
|
)
|
$
|
—
|
|||||||
Restructuring Settlement
|
—
|
—
|
1
|
—
|
||||||||||||
2015 Restructuring Initiatives
|
—
|
1
|
—
|
(1
|
)
|
|||||||||||
$
|
—
|
$
|
1
|
$
|
—
|
$
|
(1
|
)
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Alkali segment
|
$
|
—
|
$
|
—
|
$
|
(1
|
)
|
$
|
—
|
|||||||
TiO
2
segment
|
—
|
1
|
—
|
(1
|
)
|
|||||||||||
Corporate
|
—
|
—
|
1
|
—
|
||||||||||||
$
|
—
|
$
|
1
|
$
|
—
|
$
|
(1
|
)
|
2017
|
2016
|
|||||||
Balance, January 1
|
$
|
—
|
$
|
15
|
||||
Additional provision, net
|
—
|
1
|
||||||
Cash (payments) receipts
|
1
|
(13
|
)
|
|||||
Balance, June 30
|
$
|
1
|
$
|
3
|
3. |
Income Taxes
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Income tax provision
|
$
|
(3
|
)
|
$
|
(10
|
)
|
$
|
(5
|
)
|
$
|
(22
|
)
|
||||
Income (loss) before income taxes
|
$
|
8
|
$
|
(40
|
)
|
$
|
(28
|
)
|
$
|
(122
|
)
|
|||||
Effective tax rate
|
38
|
%
|
(25
|
)%
|
(18
|
)%
|
(18
|
)%
|
4. |
Income (Loss) Per Share
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Numerator – Basic and Diluted:
|
||||||||||||||||
Net income (loss)
|
$
|
5
|
$
|
(50
|
)
|
$
|
(33
|
)
|
$
|
(144
|
)
|
|||||
Less: Net income attributable to noncontrolling interest
|
2
|
2
|
5
|
1
|
||||||||||||
Undistributed net income (loss) attributable to Tronox Limited
|
3
|
(52
|
)
|
(38
|
)
|
(145
|
)
|
|||||||||
Percentage allocated to ordinary shares
(1)
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
||||||||
Net income (loss) available to ordinary shares
|
$
|
3
|
$
|
(52
|
)
|
$
|
(38
|
)
|
$
|
(145
|
)
|
|||||
Denominator – Basic and Diluted:
|
||||||||||||||||
Weighted-average ordinary shares, basic (in thousands)
|
119,188
|
116,184
|
118,804
|
116,052
|
||||||||||||
Weighted-average ordinary shares, diluted (in thousands)
|
124,301
|
116,184
|
118,804
|
116,052
|
||||||||||||
Net income (loss) per Ordinary Share
(2)
:
|
||||||||||||||||
Basic and diluted net income (loss) per ordinary share
|
$
|
0.02
|
$
|
(0.44
|
)
|
$
|
(0.32
|
)
|
$
|
(1.24
|
)
|
(1) |
Our earnings per share for the three months ended June 30, 2017 was calculated under the two-class method using the weighted average shares and participating securities since we had net income for this period. 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 six months ended June 30, 2017 and the three and six months ended June 30, 2016, the two-class method did not have an effect on our net loss per ordinary share calculation, and as such, dividends paid during the year did not impact this calculation for these periods.
|
(2) |
Net income (loss) per ordinary share amounts were calculated from exact, not rounded net income (loss) and share information.
|
June 30, 2017
|
June 30, 2016
|
|||||||||||||||
Shares
|
Average
Exercise Price
|
Shares
|
Average
Exercise Price
|
|||||||||||||
Options
|
1,930,616
|
$
|
21.17
|
2,015,673
|
$
|
21.19
|
||||||||||
Series A Warrants
|
986,558
|
$
|
8.51
|
1,438,283
|
$
|
8.54
|
||||||||||
Series B Warrants
|
1,940,062
|
$
|
9.37
|
1,947,228
|
$
|
9.42
|
||||||||||
Restricted share units
|
6,021,045
|
$
|
11.10
|
5,692,870
|
$
|
7.22
|
5. |
Accounts Receivable, Net of Allowance for Doubtful Accounts
|
June 30,
2017
|
December 31,
2016
|
|||||||
Trade receivables
|
$
|
436
|
$
|
403
|
||||
Other
|
23
|
23
|
||||||
Subtotal
|
459
|
426
|
||||||
Allowance for doubtful accounts
|
(2
|
)
|
(2
|
)
|
||||
Accounts receivable, net of allowance for doubtful accounts
|
$
|
457
|
$
|
424
|
6. |
Inventories, Net
|
June 30,
2017
|
December 31,
2016
|
|||||||
Raw materials
|
$
|
180
|
$
|
194
|
||||
Work-in-process
|
37
|
41
|
||||||
Finished goods, net
|
190
|
204
|
||||||
Materials and supplies, net
(1)
|
114
|
107
|
||||||
Total
|
521
|
546
|
||||||
Less: Inventories, net – non-current
|
(15
|
)
|
(14
|
)
|
||||
Inventories, net - current
|
$
|
506
|
$
|
532
|
(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
|
June 30,
2017
|
December 31,
2016
|
|||||||
Land and land improvements
|
$
|
163
|
$
|
159
|
||||
Buildings
|
322
|
309
|
||||||
Machinery and equipment
|
1,945
|
1,888
|
||||||
Construction-in-progress
|
149
|
146
|
||||||
Other
|
57
|
50
|
||||||
Subtotal
|
2,636
|
2,552
|
||||||
Less accumulated depreciation and amortization
|
(820
|
)
|
(721
|
)
|
||||
Property, plant and equipment, net
(1)
|
$
|
1,816
|
$
|
1,831
|
(1) |
Substantially all of these assets are pledged as collateral for our debt. See Note 11.
|
8. |
Mineral Leaseholds, Net
|
June 30,
2017
|
December 31,
2016
|
|||||||
Mineral leaseholds
|
$
|
2,017
|
$
|
1,996
|
||||
Less: accumulated depletion
|
(409
|
)
|
(389
|
)
|
||||
Mineral leaseholds, net
|
$
|
1,608
|
$
|
1,607
|
9. |
Intangible Assets, Net
|
June 30, 2017
|
December 31, 2016
|
|||||||||||||||||||||||
Gross
Cost
|
Accumulated
Amortization
|
Net Carrying
Amount
|
Gross
Cost
|
Accumulated
Amortization
|
Net Carrying
Amount
|
|||||||||||||||||||
Customer relationships
|
$
|
291
|
$
|
(125
|
)
|
$
|
166
|
$
|
291
|
$
|
(115
|
)
|
$
|
176
|
||||||||||
TiO
2
technology
|
32
|
(10
|
)
|
22
|
32
|
(9
|
)
|
23
|
||||||||||||||||
Internal-use software
|
45
|
(23
|
)
|
22
|
45
|
(21
|
)
|
24
|
||||||||||||||||
Intangible assets, net
|
$
|
368
|
$
|
(158
|
)
|
$
|
210
|
$
|
368
|
$
|
(145
|
)
|
$
|
223
|
10. |
Accrued Liabilities
|
June 30,
2017
|
December 31,
2016
|
|||||||
Employee-related costs and benefits
|
$
|
71
|
$
|
83
|
||||
Restructuring costs
|
1
|
—
|
||||||
Interest
|
35
|
35
|
||||||
Sales rebates
|
19
|
21
|
||||||
Taxes other than income taxes
|
7
|
10
|
||||||
Professional fees and other
|
48
|
37
|
||||||
Accrued liabilities
|
$
|
181
|
$
|
186
|
11. |
Debt
|
Original
Principal
|
Annual
Interest Rate
|
Maturity
Date
|
June 30,
2017
|
December 31,
2016
|
|||||||||||||
Term Loan, net of unamortized discount
(1)
|
$
|
1,500
|
Variable
|
3/19/2020
|
$
|
1,434
|
$
|
1,441
|
|||||||||
Senior Notes due 2020
|
900
|
6.375
|
%
|
8/15/2020
|
896
|
896
|
|||||||||||
Senior Notes due 2022
|
600
|
7.50
|
%
|
3/15/2022
|
584
|
584
|
|||||||||||
Lease financing
|
19
|
19
|
|||||||||||||||
Long-term debt
|
2,933
|
2,940
|
|||||||||||||||
Less: Long-term debt due within one year
|
(16
|
)
|
(16
|
)
|
|||||||||||||
Debt issuance costs
|
(31
|
)
|
(36
|
)
|
|||||||||||||
Long-term debt, net
|
$
|
2,886
|
$
|
2,888
|
(1) |
Average effective interest rate of 5.1% and 5.0% during the three and six months ended June 30, 2017, respectively, and 4.9% each during the three and six months ended June 30, 2016.
|
Total
Borrowings
|
||||
2017
|
$
|
8
|
||
2018
|
16
|
|||
2019
|
16
|
|||
2020
|
2,298
|
|||
2021
|
1
|
|||
Thereafter
|
598
|
|||
Total
|
2,937
|
|||
Remaining accretion associated with the Term Loan
|
(4
|
)
|
||
Total borrowings
|
$
|
2,933
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
|
2017
|
2016
|
2017
|
2016
|
||||||||||||
Interest on Term loan
|
$
|
16
|
$
|
17
|
$
|
33
|
$
|
33
|
||||||||
Interest on Senior Notes due 2020
|
15
|
14
|
29
|
29
|
||||||||||||
Interest on Senior Notes due 2022
|
11
|
11
|
22
|
22
|
||||||||||||
Amortization of deferred debt issuance costs and discounts on debt
|
3
|
2
|
6
|
5
|
||||||||||||
Other
|
2
|
3
|
4
|
5
|
||||||||||||
Capitalized interest
|
(1
|
)
|
(1
|
)
|
(2
|
)
|
(2
|
)
|
||||||||
Total interest and debt expense, net
|
$
|
46
|
$
|
46
|
$
|
92
|
$
|
92
|
12. |
Asset Retirement Obligations
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Beginning balance
|
$
|
79
|
$
|
87
|
$
|
76
|
$
|
81
|
||||||||
Additions
|
—
|
1
|
—
|
1
|
||||||||||||
Accretion expense
|
1
|
2
|
2
|
3
|
||||||||||||
Remeasurement/translation
|
1
|
(2
|
)
|
4
|
2
|
|||||||||||
Changes in estimates, including cost and timing of cash flows
|
—
|
(10
|
)
|
—
|
(9
|
)
|
||||||||||
Settlements/payments
|
(1
|
)
|
—
|
(2
|
)
|
—
|
||||||||||
Balance, June 30,
|
$
|
80
|
$
|
78
|
$
|
80
|
$
|
78
|
13. |
Derivative Instruments
|
14. |
Commitments and Contingencies
|
15. |
Shareholders’ Equity
|
Class A Shares:
|
||||
Balance at January 1, 2017
|
65,165,672
|
|||
Shares issued for share-based compensation
|
2,884,219
|
|||
Shares issued upon warrants exercised
|
295,453
|
|||
Shares issued
cancelled for share-based compensation
|
(618,117
|
)
|
||
Balance at June 30, 2017
|
67,727,227
|
|||
Class B Shares:
|
||||
Balance, at both June 30, 2017 and December 31, 2016
|
51,154,280
|
Three Months
Ended March 31,
2017
|
Three Months
Ended June 30,
2017
|
|||||||
Dividend per share
|
$
|
0.045
|
$
|
0.045
|
||||
Total dividend
|
$
|
6
|
$
|
6
|
||||
Record date (close of business)
|
March 6
|
May 15
|
Three Months
Ended March 31,
2016
|
Three Months
Ended June 30,
2016
|
|||||||
Dividend per share
|
$
|
0.25
|
$
|
0.045
|
||||
Total dividend
|
$
|
30
|
$
|
5
|
||||
Record date (close of business)
|
March 4
|
May 16
|
Cumulative
Translation
Adjustment
|
Pension
Liability
Adjustment
|
Unrealized
Gains (Losses)
on
Derivatives
|
Total
|
|||||||||||||
Beginning balance
|
$
|
(390
|
)
|
$
|
(91
|
)
|
$
|
1
|
$
|
(480
|
)
|
|||||
Other comprehensive income (loss)
|
27
|
—
|
(1
|
)
|
26
|
|||||||||||
Balance, June 30, 2017
|
$
|
(363
|
)
|
(91
|
)
|
—
|
(454
|
)
|
Cumulative
Translation
Adjustment
|
Pension
Liability
Adjustment
|
Unrealized
Gains (Losses)
on
Derivatives
|
Total
|
|||||||||||||
Beginning balance
|
$
|
(456
|
)
|
$
|
(101
|
)
|
$
|
—
|
$
|
(557
|
)
|
|||||
Other comprehensive income (loss)
|
—
|
—
|
2
|
2
|
||||||||||||
Balance, June 30, 2016
|
$
|
(456
|
)
|
$
|
(101
|
)
|
$
|
2
|
$
|
(555
|
)
|
Cumulative
Translation
Adjustment
|
Pension
Liability
Adjustment
|
Unrealized
Gains (Losses)
on
Derivatives
|
Total
|
|||||||||||||
Beginning balance
|
$
|
(408
|
)
|
$
|
(92
|
)
|
$
|
3
|
$
|
(497
|
)
|
|||||
Other comprehensive income (loss)
|
45
|
—
|
(3
|
)
|
42
|
|||||||||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
—
|
1
|
—
|
1
|
||||||||||||
Balance, June 30, 2017
|
$
|
(363
|
)
|
(91
|
)
|
—
|
(454
|
)
|
Cumulative
Translation
Adjustment
|
Pension
Liability
Adjustment
|
Unrealized
Gains (Losses)
on
Derivatives
|
Total
|
|||||||||||||
Beginning balance
|
$
|
(496
|
)
|
$
|
(102
|
)
|
$
|
—
|
$
|
(598
|
)
|
|||||
Other comprehensive income (loss)
|
40
|
—
|
2
|
42
|
||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
—
|
1
|
—
|
1
|
||||||||||||
Balance, June 30, 2016
|
$
|
(456
|
)
|
$
|
(101
|
)
|
$
|
2
|
$
|
(555
|
)
|
16. |
Noncontrolling Interest
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Beginning balance
|
$
|
153
|
$
|
124
|
$
|
144
|
$
|
112
|
||||||||
Net income attributable to noncontrolling interest
|
2
|
2
|
5
|
1
|
||||||||||||
Effect of exchange rate changes
|
7
|
—
|
13
|
13
|
||||||||||||
Balance, June 30,
|
$
|
162
|
$
|
126
|
$
|
162
|
$
|
126
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Restricted shares and restricted share units
|
$
|
8
|
$
|
4
|
$
|
22
|
$
|
8
|
||||||||
Options
|
—
|
—
|
—
|
1
|
||||||||||||
T-Bucks Employee Participation Plan
|
—
|
1
|
—
|
1
|
||||||||||||
Total share-based compensation expense
|
$
|
8
|
$
|
5
|
$
|
22
|
$
|
10
|
Number of
Shares
|
Weighted Average
Grant Date
Fair Value
|
|||||||
Outstanding, January 1, 2017
|
284,400
|
$
|
6.09
|
|||||
Vested
|
(107,928
|
)
|
8.00
|
|||||
Outstanding, June 30, 2017
|
176,472
|
$
|
4.92
|
|||||
Expected to vest, June 30, 2017
|
176,472
|
$
|
4.92
|
Number of
Shares
|
Weighted Average
Grant Date
Fair Value
|
|||||||
Outstanding, January 1, 2017
|
5,587,331
|
$
|
7.19
|
|||||
Granted
|
2,918,533
|
17.16
|
||||||
Vested
|
(2,228,057
|
)
|
9.29
|
|||||
Forfeited
|
(256,762
|
)
|
10.71
|
|||||
Outstanding, June 30, 2017
|
6,021,045
|
$
|
11.10
|
|||||
Expected to vest, June 30, 2017
|
7,009,320
|
$
|
9.58
|
Number of
Options
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Contractual
Life (years)
|
Intrinsic
Value
|
|||||||||||||
Outstanding, January 1, 2017
|
1,970,481
|
$
|
21.19
|
6.38
|
$
|
—
|
||||||||||
Forfeited
|
(2,285
|
)
|
21.98
|
|||||||||||||
Expired
|
(37,580
|
)
|
22.28
|
|||||||||||||
Outstanding, June 30, 2017
|
1,930,616
|
$
|
21.17
|
4.93
|
$
|
—
|
||||||||||
Expected to vest, June 30, 2017
|
2,266
|
$
|
27.26
|
7.26
|
$
|
—
|
||||||||||
Exercisable, June 30, 2017
|
1,928,335
|
$
|
21.16
|
4.93
|
$
|
—
|
18. |
Pension and Other Postretirement Healthcare Benefits
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Net periodic cost:
|
||||||||||||||||
Service cost
|
$
|
2
|
$
|
1
|
$
|
3
|
$
|
2
|
||||||||
Interest cost
|
4
|
5
|
8
|
10
|
||||||||||||
Expected return on plan assets
|
(4
|
)
|
(5
|
)
|
(8
|
)
|
(10
|
)
|
||||||||
Net amortization of actuarial loss and prior service credit
|
—
|
—
|
1
|
1
|
||||||||||||
Total net periodic cost
|
$
|
2
|
$
|
1
|
$
|
4
|
$
|
3
|
19. |
Related Parties
|
20. |
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 June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
TiO
2
segment
|
$
|
421
|
$
|
333
|
$
|
799
|
$
|
618
|
||||||||
Alkali segment
|
201
|
205
|
392
|
396
|
||||||||||||
Net sales
|
$
|
622
|
$
|
538
|
$
|
1,191
|
$
|
1,014
|
||||||||
TiO
2
segment
|
$
|
61
|
$
|
7
|
$
|
93
|
$
|
(29
|
)
|
|||||||
Alkali segment
|
23
|
12
|
42
|
33
|
||||||||||||
Corporate
|
(29
|
)
|
(10
|
)
|
(64
|
)
|
(26
|
)
|
||||||||
Income (loss) from operations
|
55
|
9
|
71
|
(22
|
)
|
|||||||||||
Interest and debt expense, net
|
(46
|
)
|
(46
|
)
|
(92
|
)
|
(92
|
)
|
||||||||
Gain on extinguishment of debt
|
—
|
—
|
—
|
4
|
||||||||||||
Other expense, net
|
(1
|
)
|
(3
|
)
|
(7
|
)
|
(12
|
)
|
||||||||
Income (loss) before income taxes
|
8
|
(40
|
)
|
(28
|
)
|
(122
|
)
|
|||||||||
Income tax provision
|
(3
|
)
|
(10
|
)
|
(5
|
)
|
(22
|
)
|
||||||||
Net income (loss)
|
$
|
5
|
$
|
(50
|
)
|
$
|
(33
|
)
|
$
|
(144
|
)
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
TiO
2
segment
|
$
|
19
|
$
|
18
|
$
|
39
|
$
|
35
|
||||||||
Alkali segment
|
4
|
4
|
16
|
20
|
||||||||||||
Corporate
|
1
|
—
|
1
|
—
|
||||||||||||
Total
|
$
|
24
|
$
|
22
|
$
|
56
|
$
|
55
|
June 30,
2017
|
December 31,
2016
|
|||||||
TiO
2
segment
|
$
|
3,017
|
$
|
2,991
|
||||
Alkali segment
|
1,641
|
1,671
|
||||||
Corporate
|
336
|
291
|
||||||
Total
|
$
|
4,994
|
$
|
4,953
|
21. |
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 Subsidiary Guarantor in respect of all other indebtedness of the Subsidiary Guarantors 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
|
$
|
622
|
$
|
(56
|
)
|
$
|
—
|
$
|
—
|
$
|
487
|
$
|
191
|
|||||||||||
Cost of goods sold
|
498
|
(61
|
)
|
—
|
—
|
400
|
159
|
|||||||||||||||||
Gross profit
|
124
|
5
|
—
|
—
|
87
|
32
|
||||||||||||||||||
Selling, general and administrative expenses
|
(69
|
)
|
1
|
—
|
(16
|
)
|
(42
|
)
|
(12
|
)
|
||||||||||||||
Restructuring income (expense)
|
—
|
—
|
—
|
1
|
(1
|
)
|
—
|
|||||||||||||||||
Income (loss) from operations
|
55
|
6
|
—
|
(15
|
)
|
44
|
20
|
|||||||||||||||||
Interest and debt expense, net
|
(46
|
)
|
—
|
(26
|
)
|
—
|
(1
|
)
|
(19
|
)
|
||||||||||||||
Intercompany interest income (expense)
|
—
|
—
|
—
|
(1
|
)
|
1
|
—
|
|||||||||||||||||
Other income (expense), net
|
(1
|
)
|
—
|
—
|
(2
|
)
|
4
|
(3
|
)
|
|||||||||||||||
Equity in earnings of subsidiary
|
—
|
6
|
—
|
21
|
(27
|
)
|
—
|
|||||||||||||||||
Income (loss) before income taxes
|
8
|
12
|
(26
|
)
|
3
|
21
|
(2
|
)
|
||||||||||||||||
Income tax benefit (provision)
|
(3
|
)
|
—
|
8
|
—
|
(14
|
)
|
3
|
||||||||||||||||
Net income (loss)
|
5
|
12
|
(18
|
)
|
3
|
7
|
1
|
|||||||||||||||||
Net income attributable to noncontrolling interest
|
2
|
2
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Net income (loss) attributable to Tronox Limited
|
$
|
3
|
$
|
10
|
$
|
(18
|
)
|
$
|
3
|
$
|
7
|
$
|
1
|
Consolidated
|
Eliminations
|
Tronox
Finance LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
Net sales
|
$
|
1,191
|
$
|
(121
|
)
|
$
|
—
|
$
|
—
|
$
|
945
|
$
|
367
|
|||||||||||
Cost of goods sold
|
977
|
(125
|
)
|
—
|
—
|
796
|
306
|
|||||||||||||||||
Gross profit
|
214
|
4
|
—
|
—
|
149
|
61
|
||||||||||||||||||
Selling, general and administrative expenses
|
(143
|
)
|
2
|
—
|
(35
|
)
|
(88
|
)
|
(22
|
)
|
||||||||||||||
Restructuring income (expense)
|
—
|
—
|
—
|
1
|
(1
|
)
|
—
|
|||||||||||||||||
Income (loss) from operations
|
71
|
6
|
—
|
(34
|
)
|
60
|
39
|
|||||||||||||||||
Interest and debt expense, net
|
(92
|
)
|
—
|
(52
|
)
|
—
|
(2
|
)
|
(38
|
)
|
||||||||||||||
Intercompany interest income (expense)
|
—
|
—
|
—
|
4
|
(4
|
)
|
—
|
|||||||||||||||||
Other income (expense), net
|
(7
|
)
|
—
|
—
|
(5
|
)
|
6
|
(8
|
)
|
|||||||||||||||
Equity in earnings of subsidiary
|
—
|
45
|
—
|
4
|
(49
|
)
|
—
|
|||||||||||||||||
Income (loss) before income taxes
|
(28
|
)
|
51
|
(52
|
)
|
(31
|
)
|
11
|
(7
|
)
|
||||||||||||||
Income tax benefit (provision)
|
(5
|
)
|
—
|
16
|
(7
|
)
|
(22
|
)
|
8
|
|||||||||||||||
Net income (loss)
|
(33
|
)
|
51
|
(36
|
)
|
(38
|
)
|
(11
|
)
|
1
|
||||||||||||||
Net income attributable to noncontrolling interest
|
5
|
5
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Net income (loss) attributable to Tronox Limited
|
$
|
(38
|
)
|
$
|
46
|
$
|
(36
|
)
|
$
|
(38
|
)
|
$
|
(11
|
)
|
$
|
1
|
Consolidated
|
Eliminations
|
Tronox
Finance LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
Net income (loss)
|
$
|
5
|
$
|
12
|
$
|
(18
|
)
|
$
|
3
|
$
|
7
|
$
|
1
|
|||||||||||
Other comprehensive income (loss):
|
||||||||||||||||||||||||
Foreign currency translation adjustments
|
34
|
(54
|
)
|
—
|
27
|
28
|
33
|
|||||||||||||||||
Unrealized gains (losses) on derivative financial instruments
|
(1
|
)
|
1
|
—
|
(1
|
)
|
(1
|
)
|
—
|
|||||||||||||||
Other comprehensive income (loss)
|
33
|
(53
|
)
|
—
|
26
|
27
|
33
|
|||||||||||||||||
Total comprehensive income (loss)
|
38
|
(41
|
)
|
(18
|
)
|
29
|
34
|
34
|
||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest:
|
||||||||||||||||||||||||
Net income
|
2
|
2
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Foreign currency translation adjustments
|
7
|
7
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest
|
9
|
9
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Comprehensive income (loss) attributable to Tronox Limited
|
$
|
29
|
$
|
(50
|
)
|
$
|
(18
|
)
|
$
|
29
|
$
|
34
|
$
|
34
|
Consolidated
|
Eliminations
|
Tronox
Finance LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
Net income (loss)
|
$
|
(33
|
)
|
$
|
51
|
$
|
(36
|
)
|
$
|
(38
|
)
|
$
|
(11
|
)
|
$
|
1
|
||||||||
Other comprehensive income (loss):
|
||||||||||||||||||||||||
Foreign currency translation adjustments
|
58
|
(97
|
)
|
—
|
45
|
52
|
58
|
|||||||||||||||||
Pension and postretirement plans
|
1
|
(1
|
)
|
—
|
1
|
1
|
—
|
|||||||||||||||||
Unrealized gains (losses) on derivative financial instruments
|
(3
|
)
|
3
|
—
|
(3
|
)
|
(3
|
)
|
—
|
|||||||||||||||
Other comprehensive income (loss)
|
56
|
(95
|
)
|
—
|
43
|
50
|
58
|
|||||||||||||||||
Total comprehensive income (loss)
|
23
|
(44
|
)
|
(36
|
)
|
5
|
39
|
59
|
||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest:
|
||||||||||||||||||||||||
Net income
|
5
|
5
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Foreign currency translation adjustments
|
13
|
13
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest
|
18
|
18
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Comprehensive income (loss) attributable to Tronox Limited
|
$
|
5
|
$
|
(62
|
)
|
$
|
(36
|
)
|
$
|
5
|
$
|
39
|
$
|
59
|
Consolidated
|
Eliminations
|
Tronox
Finance LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Cash and cash equivalents
|
$
|
303
|
$
|
—
|
$
|
—
|
$
|
39
|
$
|
129
|
$
|
135
|
||||||||||||
Restricted cash
|
2
|
—
|
—
|
—
|
2
|
—
|
||||||||||||||||||
Accounts receivable, net
|
457
|
—
|
—
|
—
|
340
|
117
|
||||||||||||||||||
Inventories, net
|
506
|
(8
|
)
|
—
|
—
|
321
|
193
|
|||||||||||||||||
Other current assets
|
54
|
(589
|
)
|
79
|
82
|
274
|
208
|
|||||||||||||||||
Investment in subsidiaries
|
—
|
(1,496
|
)
|
—
|
1,174
|
322
|
—
|
|||||||||||||||||
Property, plant and equipment, net
|
1,816
|
—
|
—
|
—
|
1,288
|
528
|
||||||||||||||||||
Mineral leaseholds, net
|
1,608
|
—
|
—
|
—
|
1,224
|
384
|
||||||||||||||||||
Intercompany loans receivable
|
—
|
(2,504
|
)
|
1,149
|
—
|
160
|
1,195
|
|||||||||||||||||
Other long-term assets
|
248
|
—
|
—
|
—
|
215
|
33
|
||||||||||||||||||
Total assets
|
$
|
4,994
|
$
|
(4,597
|
)
|
$
|
1,228
|
$
|
1,295
|
$
|
4,275
|
$
|
2,793
|
|||||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||||||||
Short-term debt
|
$
|
150
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
150
|
$
|
—
|
||||||||||||
Other current liabilities
|
400
|
(589
|
)
|
43
|
161
|
557
|
228
|
|||||||||||||||||
Long-term debt, net
|
2,886
|
—
|
1,463
|
—
|
—
|
1,423
|
||||||||||||||||||
Intercompany loans payable
|
—
|
(2,504
|
)
|
—
|
120
|
2,344
|
40
|
|||||||||||||||||
Other long-term liabilities
|
383
|
—
|
—
|
1
|
193
|
189
|
||||||||||||||||||
Total liabilities
|
3,819
|
(3,093
|
)
|
1,506
|
282
|
3,244
|
1,880
|
|||||||||||||||||
Total equity
|
1,175
|
(1,504
|
)
|
(278
|
)
|
1,013
|
1,031
|
913
|
||||||||||||||||
Total liabilities and equity
|
$
|
4,994
|
$
|
(4,597
|
)
|
$
|
1,228
|
$
|
1,295
|
$
|
4,275
|
$
|
2,793
|
Consolidated
|
Eliminations
|
Tronox
Finance LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
Cash Flows from Operating Activities:
|
||||||||||||||||||||||||
Net income (loss)
|
$
|
(33
|
)
|
$
|
51
|
$
|
(36
|
)
|
$
|
(38
|
)
|
$
|
(11
|
)
|
$
|
1
|
||||||||
Depreciation, depletion and amortization
|
123
|
—
|
—
|
—
|
91
|
32
|
||||||||||||||||||
Other
|
47
|
(51
|
)
|
(15
|
)
|
38
|
57
|
18
|
||||||||||||||||
Cash provided by (used in) operating activities
|
137
|
—
|
(51
|
)
|
—
|
137
|
51
|
|||||||||||||||||
Cash Flows from Investing Activities:
|
||||||||||||||||||||||||
Capital expenditures
|
(56
|
)
|
—
|
—
|
—
|
(37
|
)
|
(19
|
)
|
|||||||||||||||
Collections of intercompany loans
|
—
|
(92
|
)
|
50
|
—
|
—
|
42
|
|||||||||||||||||
Issuance of intercompany loans
|
—
|
66
|
—
|
(3
|
)
|
(63
|
)
|
—
|
||||||||||||||||
Cash provided by (used in) investing activities
|
(56
|
)
|
(26
|
)
|
50
|
(3
|
)
|
(100
|
)
|
23
|
||||||||||||||
Cash Flows from Financing Activities:
|
||||||||||||||||||||||||
Repayments of debt
|
(8
|
)
|
—
|
—
|
—
|
—
|
(8
|
)
|
||||||||||||||||
Repayments of intercompany loans
|
—
|
92
|
—
|
—
|
(92
|
)
|
—
|
|||||||||||||||||
Proceeds from intercompany loans
|
—
|
(66
|
)
|
—
|
63
|
3
|
—
|
|||||||||||||||||
Dividends paid
|
(12
|
)
|
—
|
—
|
(12
|
)
|
—
|
—
|
||||||||||||||||
Restricted stock and performance-based shares settled in cash for tax
|
(11
|
)
|
—
|
—
|
(11
|
)
|
—
|
—
|
||||||||||||||||
Cash provided by (used in) financing activities
|
(31
|
)
|
26
|
—
|
40
|
(89
|
)
|
(8
|
)
|
|||||||||||||||
Effects of exchange rate changes on cash and cash equivalents
|
5
|
—
|
—
|
—
|
—
|
5
|
||||||||||||||||||
Net increase (decrease) in cash and cash equivalents
|
55
|
—
|
(1
|
)
|
37
|
(52
|
)
|
71
|
||||||||||||||||
Cash and cash equivalents at beginning of period
|
$
|
248
|
$
|
—
|
$
|
1
|
$
|
2
|
$
|
181
|
$
|
64
|
||||||||||||
Cash and cash equivalents at end of period
|
$
|
303
|
$
|
—
|
$
|
—
|
$
|
39
|
$
|
129
|
$
|
135
|
Consolidated
|
Eliminations
|
Tronox
Finance LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
Net sales
|
$
|
538
|
$
|
(45
|
)
|
$
|
—
|
$
|
—
|
$
|
455
|
$
|
128
|
|||||||||||
Cost of goods sold
|
479
|
(52
|
)
|
—
|
—
|
415
|
116
|
|||||||||||||||||
Gross profit
|
59
|
7
|
—
|
—
|
40
|
12
|
||||||||||||||||||
Selling, general and administrative expenses
|
(51
|
)
|
1
|
—
|
(5
|
)
|
(35
|
)
|
(12
|
)
|
||||||||||||||
Restructuring income
|
1
|
—
|
—
|
—
|
1
|
—
|
||||||||||||||||||
Income (loss) from operations
|
9
|
8
|
—
|
(5
|
)
|
6
|
—
|
|||||||||||||||||
Interest and debt expense, net
|
(46
|
)
|
—
|
(27
|
)
|
—
|
—
|
(19
|
)
|
|||||||||||||||
Intercompany interest income (expense)
|
—
|
—
|
—
|
126
|
(143
|
)
|
17
|
|||||||||||||||||
Other income (expense), net
|
(3
|
)
|
—
|
—
|
—
|
—
|
(3
|
)
|
||||||||||||||||
Equity in earnings of subsidiary
|
—
|
140
|
—
|
(125
|
)
|
(15
|
)
|
—
|
||||||||||||||||
Income (loss) before income taxes
|
(40
|
)
|
148
|
(27
|
)
|
(4
|
)
|
(152
|
)
|
(5
|
)
|
|||||||||||||
Income tax benefit (provision)
|
(10
|
)
|
—
|
8
|
(48
|
)
|
30
|
—
|
||||||||||||||||
Net income (loss)
|
(50
|
)
|
148
|
(19
|
)
|
(52
|
)
|
(122
|
)
|
(5
|
)
|
|||||||||||||
Net income attributable to noncontrolling interest
|
2
|
2
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Net income (loss) attributable to Tronox Limited
|
$
|
(52
|
)
|
$
|
146
|
$
|
(19
|
)
|
$
|
(52
|
)
|
$
|
(122
|
)
|
$
|
(5
|
)
|
Consolidated
|
Eliminations
|
Tronox
Finance LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
Net sales
|
$
|
1,014
|
$
|
(105
|
)
|
$
|
—
|
$
|
—
|
$
|
859
|
$
|
260
|
|||||||||||
Cost of goods sold
|
934
|
(109
|
)
|
—
|
—
|
800
|
243
|
|||||||||||||||||
Gross profit
|
80
|
4
|
—
|
—
|
59
|
17
|
||||||||||||||||||
Selling, general and administrative expenses
|
(101
|
)
|
2
|
—
|
(18
|
)
|
(63
|
)
|
(22
|
)
|
||||||||||||||
Restructuring expenses
|
(1
|
)
|
—
|
—
|
—
|
—
|
(1
|
)
|
||||||||||||||||
Income (loss) from operations
|
(22
|
)
|
6
|
—
|
(18
|
)
|
(4
|
)
|
(6
|
)
|
||||||||||||||
Interest and debt expense, net
|
(92
|
)
|
—
|
(53
|
)
|
—
|
(2
|
)
|
(37
|
)
|
||||||||||||||
Intercompany interest income (expense)
|
—
|
—
|
—
|
253
|
(283
|
)
|
30
|
|||||||||||||||||
Gain on extinguishment of debt
|
4
|
—
|
4
|
—
|
—
|
—
|
||||||||||||||||||
Other income (expense), net
|
(12
|
)
|
—
|
—
|
—
|
—
|
(12
|
)
|
||||||||||||||||
Equity in earnings of subsidiary
|
—
|
329
|
—
|
(285
|
)
|
(44
|
)
|
—
|
||||||||||||||||
Income (loss) before income taxes
|
(122
|
)
|
335
|
(49
|
)
|
(50
|
)
|
(333
|
)
|
(25
|
)
|
|||||||||||||
Income tax benefit (provision)
|
(22
|
)
|
—
|
15
|
(95
|
)
|
60
|
(2
|
)
|
|||||||||||||||
Net income (loss)
|
(144
|
)
|
335
|
(34
|
)
|
(145
|
)
|
(273
|
)
|
(27
|
)
|
|||||||||||||
Net income attributable to noncontrolling interest
|
1
|
1
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Net income (loss) attributable to Tronox Limited
|
$
|
(145
|
)
|
$
|
334
|
$
|
(34
|
)
|
$
|
(145
|
)
|
$
|
(273
|
)
|
$
|
(27
|
)
|
Consolidated
|
Eliminations
|
Tronox
Finance LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
Net income (loss)
|
$
|
(50
|
)
|
$
|
148
|
$
|
(19
|
)
|
$
|
(52
|
)
|
$
|
(122
|
)
|
$
|
(5
|
)
|
|||||||
Other comprehensive income (loss):
|
||||||||||||||||||||||||
Foreign currency translation adjustments
|
—
|
(1
|
)
|
—
|
—
|
1
|
—
|
|||||||||||||||||
Pension and postretirement plans
|
—
|
(1
|
)
|
—
|
—
|
1
|
—
|
|||||||||||||||||
Unrealized gains on derivative financial instruments
|
2
|
(2
|
)
|
—
|
2
|
2
|
—
|
|||||||||||||||||
Other comprehensive income (loss)
|
2
|
(4
|
)
|
—
|
2
|
4
|
—
|
|||||||||||||||||
Total comprehensive income (loss)
|
(48
|
)
|
144
|
(19
|
)
|
(50
|
)
|
(118
|
)
|
(5
|
)
|
|||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest:
|
||||||||||||||||||||||||
Net income
|
2
|
2
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest
|
2
|
2
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Comprehensive income (loss) attributable to Tronox Limited
|
$
|
(50
|
)
|
$
|
142
|
$
|
(19
|
)
|
$
|
(50
|
)
|
$
|
(118
|
)
|
$
|
(5
|
)
|
Consolidated
|
Eliminations
|
Tronox
Finance LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
Net income (loss)
|
$
|
(144
|
)
|
$
|
335
|
$
|
(34
|
)
|
$
|
(145
|
)
|
$
|
(273
|
)
|
$
|
(27
|
)
|
|||||||
Other comprehensive income (loss):
|
||||||||||||||||||||||||
Foreign currency translation adjustments
|
53
|
(89
|
)
|
—
|
40
|
49
|
53
|
|||||||||||||||||
Pension and postretirement plans
|
1
|
(1
|
)
|
—
|
1
|
1
|
—
|
|||||||||||||||||
Unrealized gains on derivative financial instruments
|
2
|
(2
|
)
|
—
|
2
|
2
|
—
|
|||||||||||||||||
Other comprehensive income (loss)
|
56
|
(92
|
)
|
—
|
43
|
52
|
53
|
|||||||||||||||||
Total comprehensive income (loss)
|
(88
|
)
|
243
|
(34
|
)
|
(102
|
)
|
(221
|
)
|
26
|
||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest:
|
||||||||||||||||||||||||
Net income
|
1
|
1
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Foreign currency translation adjustments
|
13
|
13
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest
|
14
|
14
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Comprehensive income (loss) attributable to Tronox Limited
|
$
|
(102
|
)
|
$
|
229
|
$
|
(34
|
)
|
$
|
(102
|
)
|
$
|
(221
|
)
|
$
|
26
|
Consolidated
|
Eliminations
|
Tronox
Finance LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Cash and cash equivalents
|
$
|
248
|
$
|
—
|
$
|
1
|
$
|
2
|
$
|
181
|
$
|
64
|
||||||||||||
Restricted cash
|
3
|
—
|
—
|
—
|
3
|
—
|
||||||||||||||||||
Accounts receivable, net
|
424
|
—
|
—
|
—
|
325
|
99
|
||||||||||||||||||
Inventories, net
|
532
|
(13
|
)
|
—
|
—
|
363
|
182
|
|||||||||||||||||
Other current assets
|
49
|
(531
|
)
|
62
|
91
|
277
|
150
|
|||||||||||||||||
Investment in subsidiaries
|
—
|
(1,327
|
)
|
—
|
1,009
|
318
|
—
|
|||||||||||||||||
Property, plant and equipment, net
|
1,831
|
—
|
—
|
—
|
1,322
|
509
|
||||||||||||||||||
Mineral leaseholds, net
|
1,607
|
—
|
—
|
—
|
1,236
|
371
|
||||||||||||||||||
Intercompany loans receivable
|
—
|
(2,926
|
)
|
1,200
|
405
|
37
|
1,284
|
|||||||||||||||||
Other long-term assets
|
259
|
—
|
—
|
—
|
228
|
31
|
||||||||||||||||||
Total assets
|
$
|
4,953
|
$
|
(4,797
|
)
|
$
|
1,263
|
$
|
1,507
|
$
|
4,290
|
$
|
2,690
|
|||||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||||||||
Short-term debt
|
$
|
150
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
150
|
$
|
—
|
||||||||||||
Other current liabilities
|
383
|
(531
|
)
|
43
|
495
|
181
|
195
|
|||||||||||||||||
Long-term debt, net
|
2,888
|
—
|
1,462
|
—
|
—
|
1,426
|
||||||||||||||||||
Intercompany loans payable
|
—
|
(2,926
|
)
|
—
|
—
|
2,888
|
38
|
|||||||||||||||||
Other long-term liabilities
|
379
|
—
|
—
|
3
|
198
|
178
|
||||||||||||||||||
Total liabilities
|
3,800
|
(3,457
|
)
|
1,505
|
498
|
3,417
|
1,837
|
|||||||||||||||||
Total equity
|
1,153
|
(1,340
|
)
|
(242
|
)
|
1,009
|
873
|
853
|
||||||||||||||||
Total liabilities and equity
|
$
|
4,953
|
$
|
(4,797
|
)
|
$
|
1,263
|
$
|
1,507
|
$
|
4,290
|
$
|
2,690
|
Consolidated
|
Eliminations
|
Tronox
Finance LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
Cash Flows from Operating Activities:
|
||||||||||||||||||||||||
Net income (loss)
|
$
|
(144
|
)
|
$
|
335
|
$
|
(34
|
)
|
$
|
(145
|
)
|
$
|
(273
|
)
|
$
|
(27
|
)
|
|||||||
Depreciation, depletion and amortization
|
115
|
—
|
—
|
—
|
92
|
23
|
||||||||||||||||||
Other
|
98
|
(335
|
)
|
(18
|
)
|
189
|
297
|
(35
|
)
|
|||||||||||||||
Cash provided by (used in) operating activities
|
69
|
—
|
(52
|
)
|
44
|
116
|
(39
|
)
|
||||||||||||||||
Cash Flows from Investing Activities:
|
||||||||||||||||||||||||
Capital expenditures
|
(55
|
)
|
—
|
—
|
—
|
(36
|
)
|
(19
|
)
|
|||||||||||||||
Proceeds on sale of assets
|
1
|
—
|
—
|
—
|
1
|
—
|
||||||||||||||||||
Collections of intercompany loans
|
—
|
(115
|
)
|
79
|
—
|
—
|
36
|
|||||||||||||||||
Issuance of intercompany loans
|
—
|
72
|
(5
|
)
|
—
|
(67
|
)
|
—
|
||||||||||||||||
Cash provided by (used in) investing activities
|
(54
|
)
|
(43
|
)
|
74
|
—
|
(102
|
)
|
17
|
|||||||||||||||
Cash Flows from Financing Activities:
|
||||||||||||||||||||||||
Repayments of debt
|
(23
|
)
|
—
|
(15
|
)
|
—
|
—
|
(8
|
)
|
|||||||||||||||
Repayments of intercompany loans
|
—
|
115
|
—
|
(79
|
)
|
(36
|
)
|
—
|
||||||||||||||||
Proceeds from debt
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Proceeds from intercompany loans
|
—
|
(72
|
)
|
—
|
72
|
—
|
—
|
|||||||||||||||||
Dividends paid
|
(35
|
)
|
—
|
—
|
(35
|
)
|
—
|
—
|
||||||||||||||||
Cash provided by (used in) financing activities
|
(58
|
)
|
43
|
(15
|
)
|
(42
|
)
|
(36
|
)
|
(8
|
)
|
|||||||||||||
Effects of exchange rate changes on cash and cash equivalents
|
2
|
—
|
—
|
—
|
—
|
2
|
||||||||||||||||||
Net increase (decrease) in cash and cash equivalents
|
(41
|
)
|
—
|
7
|
2
|
(22
|
)
|
(28
|
)
|
|||||||||||||||
Cash and cash equivalents at beginning of period
|
$
|
229
|
$
|
—
|
$
|
—
|
$
|
1
|
$
|
165
|
$
|
63
|
||||||||||||
Cash and cash equivalents at end of period
|
$
|
188
|
$
|
—
|
$
|
7
|
$
|
3
|
$
|
143
|
$
|
35
|
22. |
Subsequent Event
|
• |
Exploration, mining, and beneficiation of mineral sands deposits;
|
• |
Production of titanium feedstock and its co-products (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.
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
2017
|
2016
|
Variance
|
2017
|
2016
|
Variance
|
|||||||||||||||||||
(Millions of U.S. dollars)
|
||||||||||||||||||||||||
Net sales
|
$
|
622
|
$
|
538
|
$
|
84
|
$
|
1,191
|
$
|
1,014
|
$
|
177
|
||||||||||||
Cost of goods sold
|
498
|
479
|
19
|
977
|
934
|
43
|
||||||||||||||||||
Gross profit
|
124
|
59
|
65
|
214
|
80
|
134
|
||||||||||||||||||
Selling, general and administrative expenses
|
(69
|
)
|
(51
|
)
|
(18
|
)
|
(143
|
)
|
(101
|
)
|
(42
|
)
|
||||||||||||
Restructuring income (expense)
|
—
|
1
|
(1
|
)
|
—
|
(1
|
)
|
1
|
||||||||||||||||
Income (loss) from operations
|
55
|
9
|
46
|
71
|
(22
|
)
|
93
|
|||||||||||||||||
Interest and debt expense, net
|
(46
|
)
|
(46
|
)
|
—
|
(92
|
)
|
(92
|
)
|
—
|
||||||||||||||
Gain on extinguishment of debt
|
—
|
—
|
—
|
—
|
4
|
(4
|
)
|
|||||||||||||||||
Other expense, net
|
(1
|
)
|
(3
|
)
|
2
|
(7
|
)
|
(12
|
)
|
5
|
||||||||||||||
Income (loss) before income taxes
|
8
|
(40
|
)
|
48
|
(28
|
)
|
(122
|
)
|
94
|
|||||||||||||||
Income tax provision
|
(3
|
)
|
(10
|
)
|
7
|
(5
|
)
|
(22
|
)
|
17
|
||||||||||||||
Net income (loss)
|
$
|
5
|
$
|
(50
|
)
|
$
|
55
|
$
|
(33
|
)
|
$
|
(144
|
)
|
$
|
111
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
(Millions of U.S. dollars)
|
||||||||||||||||||||||||
2017
|
2016
|
Variance
|
2017
|
2016
|
Variance
|
|||||||||||||||||||
TiO
2
segment
|
$
|
421
|
$
|
333
|
$
|
88
|
$
|
799
|
$
|
618
|
$
|
181
|
||||||||||||
Alkali segment
|
201
|
205
|
(4
|
)
|
392
|
396
|
(4
|
)
|
||||||||||||||||
Net Sales
|
$
|
622
|
$
|
538
|
$
|
84
|
$
|
1,191
|
$
|
1,014
|
$
|
177
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
2017
|
2016
|
Variance
|
2017
|
2016
|
Variance
|
|||||||||||||||||||
(Millions of U.S. dollars)
|
||||||||||||||||||||||||
TiO
2
segment
|
$
|
61
|
$
|
7
|
$
|
54
|
$
|
93
|
$
|
(29
|
)
|
$
|
122
|
|||||||||||
Alkali segment
|
23
|
12
|
11
|
42
|
33
|
9
|
||||||||||||||||||
Corporate
|
(29
|
)
|
(10
|
)
|
(19
|
)
|
(64
|
)
|
(26
|
)
|
(38
|
)
|
||||||||||||
Income (loss) from operations
|
55
|
9
|
$
|
46
|
71
|
(22
|
)
|
$
|
93
|
|||||||||||||||
Interest and debt expense, net
|
(46
|
)
|
(46
|
)
|
(92
|
)
|
(92
|
)
|
||||||||||||||||
Gain on extinguishment of debt
|
—
|
—
|
—
|
4
|
||||||||||||||||||||
Other expense, net
|
(1
|
)
|
(3
|
)
|
(7
|
)
|
(12
|
)
|
||||||||||||||||
Income (loss) before income taxes
|
8
|
(40
|
)
|
(28
|
)
|
(122
|
)
|
|||||||||||||||||
Income tax provision
|
(3
|
)
|
(10
|
)
|
(5
|
)
|
(22
|
)
|
||||||||||||||||
Net income (loss)
|
$
|
5
|
$
|
(50
|
)
|
$
|
(33
|
)
|
$
|
(144
|
)
|
June 30,
2017
|
December 31,
2016
|
|||||||
Cash and cash equivalents
|
$
|
303
|
$
|
248
|
||||
Available under the UBS Revolver
|
181
|
190
|
||||||
Available under the ABSA Revolver
|
—
|
95
|
||||||
Total
|
$
|
484
|
$
|
533
|
Six Months Ended June 30,
|
||||||||
2017
|
2016
|
|||||||
(Millions of U.S. dollars)
|
||||||||
Net cash provided by operating activities
|
$
|
137
|
$
|
69
|
||||
Net cash used in investing activities
|
(56
|
)
|
(54
|
)
|
||||
Net cash used in financing activities
|
(31
|
)
|
(58
|
)
|
||||
Effect of exchange rate changes on cash
|
5
|
2
|
||||||
Net increase (decrease) in cash and cash equivalents
|
$
|
55
|
$
|
(41
|
)
|
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, net and lease financing (including interest)
(1)
|
$
|
3,681
|
$
|
338
|
$
|
1,748
|
$
|
985
|
$
|
610
|
||||||||||
Purchase obligations
(2)
|
436
|
138
|
113
|
63
|
122
|
|||||||||||||||
Operating leases
|
180
|
33
|
44
|
37
|
66
|
|||||||||||||||
Asset retirement obligations
|
80
|
4
|
3
|
4
|
69
|
|||||||||||||||
Total
|
$
|
4,377
|
$
|
513
|
$
|
1,908
|
$
|
1,089
|
$
|
867
|
(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 2017. 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
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
(Millions of U.S. dollars)
|
||||||||||||||||
Net income (loss) (U.S GAAP)
|
$
|
5
|
$
|
(50
|
)
|
$
|
(33
|
)
|
$
|
(144
|
)
|
|||||
Interest and debt expense, net
|
46
|
46
|
92
|
92
|
||||||||||||
Interest income
|
(1
|
)
|
(1
|
)
|
(2
|
)
|
(2
|
)
|
||||||||
Income tax provision
|
3
|
10
|
5
|
22
|
||||||||||||
Depreciation, depletion and amortization expense
|
62
|
60
|
123
|
115
|
||||||||||||
EBITDA (non-U.S. GAAP)
|
115
|
65
|
185
|
83
|
||||||||||||
Share based compensation
(a)
|
8
|
5
|
22
|
10
|
||||||||||||
Transaction costs
(b)
|
9
|
—
|
20
|
—
|
||||||||||||
Restructuring (income) expense
(c)
|
—
|
(1
|
)
|
—
|
1
|
|||||||||||
Gain on extinguishment of debt
(d)
|
—
|
—
|
—
|
(4
|
)
|
|||||||||||
Foreign currency remeasurement
(e)
|
3
|
4
|
6
|
18
|
||||||||||||
Other items
(f)
|
5
|
(2
|
)
|
8
|
3
|
|||||||||||
Adjusted EBITDA (non-U.S. GAAP)
(g)
|
$
|
140
|
$
|
71
|
$
|
241
|
$
|
111
|
(a) |
Represents non-cash share-based compensation. See Note 17 of notes to unaudited condensed consolidated financial statements.
|
(b) |
Represents transaction costs associated with the Cristal Transaction which were recorded 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 restructuring efforts which was recorded in “Restructuring income (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, severance expense, 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. See Notes 2 and 3 to unaudited condensed consolidated financial statements.
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
TiO
2
segment
|
$
|
61
|
$
|
7
|
$
|
93
|
$
|
(29
|
)
|
|||||||
Alkali segment
|
23
|
12
|
42
|
33
|
||||||||||||
Corporate
|
(29
|
)
|
(10
|
)
|
(64
|
)
|
(26
|
)
|
||||||||
Income (loss) from operations (U.S. GAAP)
|
55
|
9
|
71
|
(22
|
)
|
|||||||||||
TiO
2
segment
|
44
|
43
|
88
|
83
|
||||||||||||
Alkali segment
|
16
|
15
|
32
|
29
|
||||||||||||
Corporate
|
2
|
2
|
3
|
3
|
||||||||||||
Depreciation, depletion and amortization expense
|
62
|
60
|
123
|
115
|
||||||||||||
TiO
2
segment
|
18
|
7
|
27
|
25
|
||||||||||||
Alkali segment
|
2
|
2
|
5
|
3
|
||||||||||||
Corporate
|
3
|
(7
|
)
|
15
|
(10
|
)
|
||||||||||
Other
|
23
|
2
|
47
|
18
|
||||||||||||
TiO
2
segment
|
123
|
57
|
208
|
79
|
||||||||||||
Alkali segment
|
41
|
29
|
79
|
65
|
||||||||||||
Corporate
|
(24
|
)
|
(15
|
)
|
(46
|
)
|
(33
|
)
|
||||||||
Adjusted EBITDA (non-U.S. GAAP)
|
$
|
140
|
$
|
71
|
$
|
241
|
$
|
111
|
Exhibit No.
|
|
4.1
|
Fourth Amendment to Credit and Guaranty Agreement dated July 28, 2017, by and among,
inter alia
, Tronox Limited, Tronox Australia Holdings PTY Limited, Tronox Management PTY Limited, Tronox Holdings Cooperatief U.A., Tronox Pigments (Netherlands) B.V. and Goldman Sachs Bank USA. (incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed by Tronox Limited on August 7, 2017).
|
4.2
|
Consent to Amended and Restated Revolving Syndicated Facility Agreement dated July 28, 2017, by and among, inter alia, Tronox Limited, Tronox Australia Holdings PTY Limited, Tronox Management PTY Limited, Tronox Holdings Cooperatief U.A., Tronox Pigments (Netherlands) B.V. and UB AG, Stamford Branch (incorporated by reference to Exhibit 10.2 of the Current Report on Form 8-K filed by Tronox Limited on August 7, 2017).
|
10.1
|
Stock Purchase Agreement, dated as of August 2, 2017, by and among Tronox Limited, Tronox US Holdings Inc., Tronox Alkali Corporation, and Genesis Energy, L.P. (incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed by Tronox Limited on August 2, 2017).
|
10.2
|
Interim CEO Agreement dated as of May 15, 2017 by and between Tronox LLC and Peter Johnston (incorporated by reference to Exhibit 10.1 of the Amended Current Report on Form 8-K/A filed by Tronox Limited on May 10, 2017).
|
10.3
|
First Amendment to Amended and Restated Employment Agreement dated as of May 15, 2017 by and between Tronox Limited, Tronox LLC and Thomas Casey (incorporated by reference to Exhibit 10.2 of the Amended Current Report on Form 8-K/A filed by Tronox Limited on May 10, 2017).
|
10.4
|
Retirement Agreement dated as of May 15, 2017 by and between Tronox Limited, Tronox LLC and Thomas Casey (incorporated by reference to Exhibit 10.3 of the Amended Current Report on Form 8-K/A filed by Tronox Limited on May 10, 2017).
|
Rule 13a-14(a) Certification of Peter Johnston.
|
|
Rule 13a-14(a) Certification of Timothy Carlson.
|
|
Section 1350 Certification for Peter Johnston.
|
|
Section 1350 Certification for Timothy Carlson.
|
|
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
|
Date: August 9, 2017
|
||
TRONOX LIMITED
(Registrant)
|
||
By:
|
/s/ Timothy Carlson
|
|
Name:
|
Timothy Carlson
|
|
Title:
|
Senior Vice President and Chief Financial Officer
|
1 Year Tronox Chart |
1 Month Tronox Chart |
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