Segment Information

6 Months Ended

12 Months Ended

Jun. 30, 2013

Dec. 31, 2012

Segment Information

20. Segment Information

Prior to the Transaction, Tronox Incorporated had one reportable segment representing its pigment business. The Pigment segment primarily produced and marketed TiO_2, and included heavy minerals production. The heavy minerals production was integrated with its Australian pigment plant, but also had third-party sales of minerals not utilized by its pigment operations. In connection with the Transaction, the Company acquired 74% of Exxaro’s mineral sands operations, along with its 50% share of the Tiwest Joint Venture in Western Australia. As such, the Company evaluated its new operations under ASC 280, Segments, and determined that the mineral sands operations qualify as a separate segment.

Subsequent to the Transaction, the Company has two reportable segments, Mineral Sands and Pigment. The Mineral Sands segment includes the exploration, mining and beneficiation of mineral sands deposits, as well as heavy mineral production. These operations produce titanium feedstock, including chloride slag, slag fines and rutile, as well as pig iron and zircon. The Pigment segment primarily produces and markets TiO₂, and has production facilities in the United States, Australia, and the Netherlands. Corporate and Other is comprised of corporate activities and businesses that are no longer in operation, as well as electrolytic manufacturing and marketing operations, all of which are located in the United States.

Segment performance is evaluated based on segment operating profit (loss), which represents the results of segment operations before unallocated costs, such as general corporate expenses not identified to a specific segment, environmental provisions, net of reimbursements, related to sites no longer in operation, interest expense, other income (expense) and income tax expense or benefit.

	Mineral Sands		Pigment			Corporate And Other			Eliminations			Total
Three Months Ended June 30, 2013
Net Sales(1)	$	312	$	304		$	35		$	(126	)	$	525
Income (loss) from operations		68		(56	)		(11	)		8			9
Interest and debt expense													(35	)
Other income													26
Loss from Continuing Operations before Income Taxes													—
Depreciation, Depletion and Amortization	$	49	$	20		$	4		$	—		$	73
Capital Expenditures	$	18	$	12		$	4		$	—		$	34
Three Months Ended June 30, 2012
Net Sales(1)	$	89	$	348		$	27		$	(35	)	$	429
Income (loss) from operations		46		37			(76	)		15			22
Interest and debt expense													(14	)
Other expense													(3	)
Gain on bargain purchase													1,055
Income from Continuing Operations before Income Taxes													1,060
Depreciation, Depletion and Amortization	$	11	$	16		$	4		$	—		$	31
Capital Expenditures	$	20	$	3		$	4		$	—		$	27
Six Months Ended June 30, 2013
Net Sales(1)	$	610	$	592		$	62		$	(269	)	$	995
Income (loss) from operations		164		(124	)		(35	)		(15	)		(10	)
Interest and debt expense													(62	)
Loss on extinguishment of debt													(4	)
Other expense													32
Income from Continuing Operations before Income Taxes													(44	)
Depreciation, Depletion and Amortization	$	98	$	41		$	7		$	—		$	146
Capital Expenditures	$	49	$	25		$	5		$	—		$	79
Six Months Ended June 30, 2012
Net Sales(1)	$	172	$	710		$	58		$	(77	)	$	863
Income (loss) from operations		97		146			(104	)		(4	)		135
Interest and debt expense													(22	)
Other expense													(4	)
Gain on bargain purchase													1,055
Income from Continuing Operations before Income Taxes													1,164
Depreciation, Depletion and Amortization	$	15	$	31		$	7		$	—		$	53
Capital Expenditures	$	20	$	15		$	13		$	—		$	48

(1) Net sales by geographic region, based on country of production, were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
U.S. operations	$	216	$	229	$	403	$	459
International operations:
South Africa		144		24		254		24
Australia		113		118		221		243
The Netherlands		52		58		117		137
Total	$	525	$	429	$	995	$	863

Total assets by segment were as follows:

	June 30, 2013		December 31, 2012
Mineral Sands	$	2,756	$	3,164
Pigment		1,823		1,680
Corporate and Other		1,100		725
Eliminations		168		(58	)
Total	$	5,847	$	5,511

Property, plant and equipment, net and mineral leaseholds, net, by geographic region, were as follows:

	June 30, 2013		December 31, 2012
U.S. operations	$	200	$	196
International operations:
South Africa		1,082		1,263
Australia		1,295		1,348
The Netherlands		53		55
Total	$	2,630	$	2,862

24. Segment Information

Prior to the Transaction, Tronox Incorporated had one reportable segment representing its pigment business. The Pigment segment primarily produced and marketed TiO₂ and included heavy minerals production. The heavy minerals production was integrated with its Australian pigment plant, but also had third-party sales of minerals not utilized by its pigment operations. In connection with the Transaction, the Company acquired 74% of Exxaro’s South African mineral sands operations, including its Namakwa and KZN Sands mines, separation facilities and slag furnaces, along with its 50% share of the Tiwest Joint Venture in Western Australia. As such, the Company evaluated its new operations under ASC 280, Segments, and determined that the mineral sands operations qualify as a separate segment.

Subsequent to the Transaction, the Company has two reportable segments, Mineral Sands and Pigment. The Mineral Sands segment includes the exploration, mining and beneficiation of mineral sands deposits, as well as heavy mineral production. These operations produce titanium feedstock, including ilmenite, chloride slag, slag fines and rutile, as well as pig iron and zircon. The Pigment segment primarily produces and markets TiO₂ and has production facilities in the United States, Australia, and the Netherlands. Corporate and Other is comprised of corporate activities and businesses that are no longer in operation, as well as its electrolytic manufacturing and marketing operations, all of which are located in the United States.

Segment performance is evaluated based on segment operating profit (loss), which represents the results of segment operations before unallocated costs, such as general corporate expenses not identified to a specific segment, environmental provisions, net of reimbursements, related to sites no longer in operation, interest expense, other income (expense) and income tax expense or benefit.

	Mineral Sands		Pigment		Corporate And Other			Eliminations			Total
Successor: Twelve Months Ended December 31, 2012
Net Sales	$	760	$	1,246	$	128		$	(302	)	$	1,832
Income (Loss) from operations		156		57		(139	)		(49	)		25
Interest and debt expense												(65	)
Other income (expense)												(7	)
Gain on bargain purchase												1,055
Income (Loss) from Continuing Operations before Income Taxes											$	1,008
Total Assets	$	3,164	$	1,680	$	725		$	(58	)	$	5,511
Depreciation, Depletion and Amortization		125		71		15			—			211
Capital Expenditures		96		39		31			—			166
Successor: Eleven Months Ended December 31, 2011
Net Sales	$	160	$	1,327	$	133		$	(77	)	$	1,543
Income (Loss) from operations		42		323		(54	)		(9	)		302
Interest and debt expense												(30	)
Other income (expense)												(10	)
Income (Loss) from Continuing Operations before Income Taxes											$	262
Total Assets	$	228	$	1,217	$	224		$	(12	)	$	1,657
Depreciation, Depletion and Amortization		—		67		12			—			79
Capital Expenditures		—		117		16			—			133
Predecessor: January 1 through January 31, 2011
Net Sales	$	8	$	89	$	14		$	(3	)	$	108
Income (Loss) from operations		2		20		(1	)		(1	)		20
Interest and debt expense												(3	)
Other income												2
Reorganization income												613
Income from Continuing Operations before Income Taxes												632
Total Assets	$	221	$	987	$	241		$	(1	)	$	1,448
Depreciation, Depletion and Amortization		—		3		1			—			4
Capital Expenditures		—		4		1			1			6
Predecessor: Twelve Months Ended December 31, 2010
Net Sales	$	109	$	1,005	$	153		$	(49	)	$	1,218
Income (Loss) from operations		7		163		40			—			210
Interest and debt expense												(50	)
Other income (expense)												(8	)
Reorganization expense												(145	)
Income (Loss) from Continuing Operations before Income Taxes											$	7
Total Assets	$	152	$	564	$	382		$	—		$	1,098
Depreciation, Depletion and Amortization		—		40		10			—			50
Capital Expenditures		—		37		8			—			45

	Successor				Predecessor
	Year Ended December 31, 2012		Eleven Months Ended December 31, 2011		One Month Ended January 31, 2011		Year Ended December 31, 2010
Net Sales(1)
U.S. operations	$	843	$	793	$	60	$	692
International operations:
Australia		443		475		33		317
The Netherlands		248		275		15		209
South Africa		298		—		—		—
Total	$	1,832	$	1,543	$	108	$	1,218

(1) Based on country of production.

	Successor
	December 31, 2012		December 31, 2011
Net Property, Plant and Equipment and Net Mineral Leaseholds
U.S. operations	$	196	$	184
International operations:
South Africa		1,263		—
Australia		1,348		304
The Netherlands		55		54
Total	$	2,862	$	542

(1) Based on country of production.