Condensed Consolidated Financial Statements

6 Months Ended

12 Months Ended

Jun. 30, 2013

Dec. 31, 2012

Condensed Consolidated Financial Statements

22. Guarantor Condensed Consolidated Financial Statements

Our obligations under the Senior Notes are fully and unconditionally guaranteed on a senior unsecured basis, jointly and severally, by each current and future U.S. restricted subsidiary, other than excluded subsidiaries that guarantee any indebtedness of Tronox Limited or our restricted subsidiaries. Our subsidiaries that do not guarantee the Senior Notes are referred to as the “Non-Guarantor Subsidiaries.” The Guarantor Condensed Consolidated Financial Data presented below presents the statements of operations, statements of comprehensive income, balance sheets and statements of cash flow data for: (i) Tronox Limited (the “Parent Company”), the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries on a consolidated basis (which is derived from Tronox historical reported financial information); (ii) the Parent Company, alone (accounting for our Guarantor Subsidiaries and the Non-Guarantor Subsidiaries on an equity basis under which the investments are recorded by each entity owning a portion of another entity at cost, adjusted for the applicable share of the subsidiary’s cumulative results of operations, capital contributions and distributions, and other equity changes); (iii) the Guarantor Subsidiaries alone; and (iv) the Non-Guarantor Subsidiaries alone.

The guarantor condensed consolidated financial statements are presented on a legal entity basis, not on a business segment basis.

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three months ended June 30, 2013

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	525		$	(101	)	$	—		$	356		$	270
Cost of goods sold		475			(104	)		—			339			240
Gross Margin		50			3			—			17			30
Selling, general and administrative expenses		41			(1	)		4			31			7
Income from Operations		9			4			(4	)		(14	)		23
Interest and debt expense		(35	)		—			137			(161	)		(11	)
Other income (expense)		26			—			—			13			13
Equity in earnings of subsidiary		—			106			(106	)		—			—
Income (Loss) before Income Taxes		—			110			27			(162	)		25
Income tax benefit (provision)		(1	)		—			(40	)		40			(1	)
Net Income (Loss)		(1	)		110			(13	)		(122	)		24
Income attributable to noncontrolling interest		12			—			—			12			—
Net Income (Loss) attributable to Tronox Limited	$	(13	)	$	110		$	(13	)	$	(134	)	$	24

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Six months ended June 30, 2013

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	995		$	(195	)	$	—		$	668		$	522
Cost of goods sold		913			(172	)		—			642			443
Gross Margin		82			(23	)		—			26			79
Selling, general and administrative expenses		92			(2	)		9			66			19
Income from Operations		(10	)		(21	)		(9	)		(40	)		60
Interest and debt expense		(62	)		—			273			(324	)		(11	)
Loss on extinguishment of debt		(4	)		—			—			(3	)		(1	)
Other income (expense)		32			—			1			11			20
Equity in earnings of subsidiary		—			256			(256	)		—			—
Income (Loss) before Income Taxes		(44	)		235			9			(356	)		68
Income tax benefit (provision)		(2	)		—			(78	)		91			(15	)
Net Income (Loss)		(46	)		235			(69	)		(265	)		53
Income attributable to noncontrolling interest		24			—			—			24			—
Net Income (Loss) attributable to Tronox Limited	$	(70	)	$	235		$	(69	)	$	(289	)	$	53

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three months ended June 30, 2013

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations		Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	(1	)	$	110	$	(13	)	$	(122	)	$	24
Other Comprehensive Income (Loss):
Foreign currency translation adjustments		(82	)		—		—			—			(82	)
Amortization of actuarial losses, net of taxes		(1	)		—		—			—			(1	)
Other comprehensive income (loss)		(83	)		—		—			—			(83	)
Total comprehensive income (loss)		(84	)		110		(13	)		(122	)		(59	)
Comprehensive income (loss) attributable to noncontrolling interest:
Net income		12			—		—			12			—
Foreign currency translation adjustments		(23	)		—		—			(23	)		—
Comprehensive income (loss) attributable to noncontrolling interest		(11	)		—		—			(11	)		—
Comprehensive income (loss) attributable to Tronox Limited	$	(73	)	$	110	$	(13	)	$	(111	)	$	(59	)

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Six months ended June 30, 2013

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations		Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	(46	)	$	235	$	(69	)	$	(265	)	$	53
Other Comprehensive Income (Loss):
Foreign currency translation adjustments		(201	)		—		—			—			(201	)
Amortization of actuarial losses, net of taxes		—			—		—			—			—
Other comprehensive income (loss)		(201	)		—		—			—			(201	)
Total comprehensive income (loss)		(247	)		235		(69	)		(265	)		(148	)
Comprehensive income (loss) attributable to noncontrolling interest:
Net income		24			—		—			24			—
Foreign currency translation adjustments		(51	)		—		—			(51	)		—
Comprehensive income (loss) attributable to noncontrolling interest		(27	)		—		—			(27	)		—
Comprehensive income (loss) attributable to Tronox Limited	$	(220	)	$	235	$	(69	)	$	(238	)	$	(148	)

GUARANTOR CONDENSED CONSOLIDATED BALANCE SHEETS

As of June 30, 2013

(Unaudited)

(Millions of U.S. dollars)

	Consolidated		Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	$	1,389	$	—		$	398		$	882		$	109
Investment in subsidiaries		—		(1,132	)		(878	)		1,553			457
Other current assets		1,265		(9,173	)		6,285			2,048			2,105
Property, plant and equipment, net		1,309		—			—			729			580
Mineral leaseholds, net		1,321		—			—			766			555
Other assets		563		—			(3	)		382			184
Total Assets	$	5,847	$	(10,305	)	$	5,802		$	6,360		$	3,990
Liabilities and Shareholders’ Equity
Current liabilities	$	336	$	(1,155	)	$	473		$	842		$	176
Long-term debt		2,390		—			—			901			1,489
Other long-term liabilities		531		(7,947	)		933			7,136			409
Total Liabilities		3,257		(9,102	)		1,406			8,879			2,074
Total Shareholders’ Equity		2,590		(1,203	)		4,396			(2,519	)		1,916
Total Liabilities and Equity	$	5,847	$	(10,305	)	$	5,802		$	6,360		$	3,990

GUARANTOR CONDENSED CONSOLIDATED BALANCE SHEETS

As of December 31, 2012

(Unaudited)

(Millions of U.S. dollars)

	Consolidated		Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	$	716	$	—		$	533		$	82		$	101
Investment in subsidiaries		—		(1,595	)		(622	)		1,760			457
Other current assets		1,457		(8,300	)		6,047			2,181			1,529
Property, plant and equipment, net		1,423		—			—			747			676
Mineral leaseholds, net		1,439		—			—			796			643
Other assets		476		—			(3	)		401			78
Total Assets	$	5,511	$	(9,895	)	$	5,955		$	5,967		$	3,484
Liabilities and Shareholders’ Equity
Current liabilities	$	467	$	(539	)	$	560		$	133		$	313
Long-term debt		1,605		—			—			902			703
Other long-term liabilities		557		(7,709	)		882			6,978			406
Total Liabilities		2,629		(8,248	)		1,442			8,013			1,422
Total Shareholders’ Equity		2,882		(1,647	)		4,513			(2,046	)		2,062
Total Liabilities and Equity	$	5,511	$	(9,895	)	$	5,955		$	5,967		$	3,484

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six months ended June 30, 2013

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Cash Flows from Operating Activities
Net income (loss)	$	(46	)	$	235		$	(70	)	$	(265	)	$	54
Other		125			(235	)		(9	)		1,094			(725	)
Cash provided by (used in) operating activities		79			—			(79	)		829			(671	)
Cash Flows from Investing Activities:
Capital expenditures		(79	)		—			—			(31	)		(48	)
Cash used in investing activities		(79	)		—			—			(31	)		(48	)
Cash Flows from Financing Activities
Repayments of debt		(180	)		—			—			(1	)		(179	)
Proceeds from borrowings		945			—			—			—			945
Debt issuance costs		(28	)		—			—			—			(28	)
Dividends paid		(57	)		—			(57	)		—			—
Proceeds from the conversion of warrants		1			—			1			—			—
Cash provided by (used in) financing activities		681			—			(56	)		(1	)		738
Effects of Exchange Rate Changes on Cash and Cash Equivalents		(8	)		—			—			—			(8	)
Net Increase (Decrease) in Cash and Cash Equivalents		673			—			(135	)		797			11
Cash and Cash Equivalents at Beginning of Period		716			—			533			85			98
Cash and Cash Equivalents at End of Period	$	1,389		$	—		$	398		$	882		$	109

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three months ended June 30, 2012

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	429		$	(33	)	$	—		$	363		$	99
Cost of goods sold		304			(42	)		—			266			80
Gross Margin		125			9			—			97			19
Selling, general and administrative expenses		103			(1	)		38			58			8
Income from Operations		22			10			(38	)		39			11
Interest and debt expense		(14	)		—			24			(36	)		(2	)
Other income (expense)		(3	)		1			—			49			(53	)
Gain on bargain purchase		1,055			—			1,055			—			—
Equity in earnings of subsidiary		—			1,026			(991	)		(35	)		—
Income (Loss) before Income Taxes		1,060			1,037			50			17			(44	)
Income tax benefit (provision)		84			—			4			59			21
Net Income (Loss)		1,144			1,037			54			76			(23	)
Income attributable to noncontrolling interest		—			—			—			—			—
Net Income (Loss) attributable to Tronox Limited	$	1,144		$	1,037		$	54		$	76		$	(23	)

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Six months ended June 30, 2012

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	863		$	(51	)	$	—		$	727		$	187
Cost of goods sold		581			(55	)		—			499			137
Gross Margin		282			4			—			228			50
Selling, general and administrative expenses		147			(2	)		38			99			12
Income from Operations		135			6			(38	)		129			38
Interest and debt expense		(22	)		—			24			(41	)		(5	)
Other income (expense)		(4	)		38			—			14			(56	)
Gain on bargain purchase		1,055			—			1,055			—			—
Equity in earnings of subsidiary		—			989			(991	)		2			—
Income (Loss) before Income Taxes		1,164			1,033			50			104			(23	)
Income tax benefit (provision)		66			—			4			59			3
Net Income (Loss)		1,230			1,033			54			163			(20	)
Income attributable to noncontrolling interest		—			—			—			—			—
Net Income (Loss) attributable to Tronox Limited	$	1,230		$	1,033		$	54		$	163		$	(20	)

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three months ended June 30, 2012

(Unaudited)

(Millions of U.S. dollars)

	Consolidated		Eliminations		Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	1,144	$	1,037	$	54	$	76		$	(23	)
Other Comprehensive Income (Loss):
Foreign currency translation adjustments		26		—		—		1			25
Retirement and postretirement plans adjustments, net of tax		—		—		—		(17	)		17
Deferred Tax		—		—		—		(3	)		3
Other comprehensive income (loss)		26		—		—		(19	)		45
Total comprehensive income		1,170		1,037		54		57			22
Comprehensive income attributable to noncontrolling interest:
Foreign currency translation adjustments		10		—		—		10			—
Comprehensive income attributable to noncontrolling interest		10		—		—		10			—
Comprehensive income attributable to Tronox Limited	$	1,160	$	1,037	$	54	$	47		$	22

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Six months ended June 30, 2012

(Unaudited)

(Millions of U.S. dollars)

	Consolidated		Eliminations		Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	1,230	$	1,033	$	54	$	163		$	(20	)
Other Comprehensive Income (Loss):
Foreign currency translation adjustments		33		20		—		(1	)		14
Retirement and postretirement plans adjustments, net of tax		—		—		—		(20	)		20
Deferred Tax		—		—		—		(3	)		3
Other comprehensive income (loss)		33		20		—		(24	)		37
Total comprehensive income		1,263		1,053		54		139			17
Comprehensive income attributable to noncontrolling interest:
Foreign currency translation adjustments		10		—		—		10			—
Comprehensive income attributable to noncontrolling interest		10		—		—		10			—
Comprehensive income attributable to Tronox Limited	$	1,253	$	1,053	$	54	$	129		$	17

GUARANTOR CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six months ended June 30, 2012

(Unaudited)

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Cash Flows from Operating Activities
Net income (loss)	$	1,230		$	1,033		$	54		$	163		$	(20	)
Gain on bargain purchase		(1,055	)		—			(1,055	)		—			—
Other		(222	)		(1,033	)		1,082			333			(604	)
Cash provided by (used in) operating activities		(47	)		—			81			496			(624	)
Cash Flows from Investing Activities:
Capital expenditures		(48	)		—			—			(40	)		(8	)
Cash pain the acquisition of mineral sands business		(1	)		—			(1	)		—			—
Cash received in acquisition of mineral sands business		115			—			115			—			—
Cash provided by (used in) investing activities		66			—			114			(40	)		(8	)
Cash Flows from Financing Activities
Reductions of debt		(554	)		—			—			(421	)		(133	)
Proceeds from borrowings		777			—			—			—			777
Debt issuance costs		(20	)		—			—			—			(20	)
Merger consideration		(193	)		—			(193	)		—			—
Class A ordinary share repurchases		(2	)		—			(2	)		—			—
Cash provided by (used in) financing activities		8			—			(195	)		(421	)		624
Effects of Exchange Rate Changes on Cash and Cash Equivalents		5			—			—			1			4
Net Increase (Decrease) in Cash and Cash Equivalents		32			—			—			36			(4	)
Cash and Cash Equivalents at Beginning of Period		154			—			—			107			47
Cash and Cash Equivalents at End of Period	$	186		$	—		$	—		$	143		$	43

27. GUARANTOR CONDENSED CONSOLIDATED FINANCIAL DATA

Our obligations under the Senior Notes are fully and unconditionally guaranteed on a senior unsecured basis, jointly and severally, by each current and future domestic restricted subsidiary, other than excluded subsidiaries that guarantee any indebtedness of Tronox Limited or our restricted subsidiaries. Our subsidiaries that do not guarantee the Senior Notes are referred to as the “Non-Guarantor Subsidiaries.” The Guarantor Condensed Consolidated Financial Data presented below presents the statements of operations, statements of comprehensive income, balance sheets and statements of cash flow data for: (i) Tronox Limited (the “Parent Company”), the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries on a consolidated basis (which is derived from Tronox historical reported financial information); (ii) the Parent Company, alone (accounting for our Guarantor Subsidiaries and the Non-Guarantor Subsidiaries on an equity basis under which the investments are recorded by each entity owning a portion of another entity at cost, adjusted for the applicable share of the subsidiary’s cumulative results of operations, capital contributions and distributions, and other equity changes); (iii) the Guarantor Subsidiaries alone; and (iv) the Non-Guarantor Subsidiaries alone.

Tronox Limited was formed on September 21, 2011 for the purpose of the Transaction. Prior to the completion of the Transaction, Tronox Limited was wholly-owned by Tronox Incorporated, and had no operating assets or operations. For purposes of the guarantor financial statements, Tronox Limited is the parent company for all periods presented, and Tronox Incorporated is included in the guarantor column for all periods presented.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Year Ended December 31, 2012

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	1,832		$	(153	)	$	—		$	1,340		$	645
Cost of goods sold		1,568			(104	)		—			1,057			615
Gross Margin		264			(49	)		—			283			30
Selling, general and administrative expenses		239			(4	)		98			115			30
Income (Loss) from Operations		25			(45	)		(98	)		168			—
Interest and debt expense		(65	)		—			297			(356	)		(6	)
Other income (expense)		(7	)		432			(95	)		(336	)		(8	)
Gain on bargain purchase		1,055			—			1,055			—			—
Equity in earnings of subsidiary		—			1,142			(1,144	)		2			—
Income (Loss) from Continuing Operations before Income Taxes		1,008			1,529			15			(522	)		(14	)
Income tax benefit (provision)		125			—			(60	)		139			46
Net Income (Loss)		1,133			1,529			(45	)		(383	)		32
Net loss attributable to noncontrolling interest		1			—			—			1			—
Net Income (Loss) attributable to Tronox Limited	$	1,134		$	1,529		$	(45	)	$	(382	)	$	32

CONDENSED CONSOLIDATED STATEMENTS COMPREHENSIVE INCOME

Year Ended December 31, 2012

(Millions of U.S. dollars)

	Consolidated			Eliminations		Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	1,133		$	1,529	$	(45	)	$	(383	)	$	32
Other Comprehensive Income (Loss):
Foreign currency translation adjustments		10			18		—			(2	)		(6	)
Amortization of actuarial losses		(48	)		—		—			(47	)		(1	)
Other comprehensive income (loss)		(38	)		18		—			(49	)		(7	)
Total comprehensive income (loss)	$	1,095		$	1,547	$	(45	)	$	(432	)	$	25
Comprehensive income attributable to noncontrolling interest:
Net loss		1			—		—			1			—
Foreign currency translation adjustments		(1	)		—		—			(1	)		—
Comprehensive income attributable to noncontrolling interest		—			—		—			—			—
Comprehensive income (loss) attributable to Tronox Limited	$	1,095		$	1,547	$	(45	)	$	(432	)	$	25

CONDENSED CONSOLIDATED BALANCE SHEETS

December 31, 2012

(Millions of U.S. dollars)

	Consolidated		Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	$	716	$	—		$	533		$	82		$	101
Investment in subsidiaries		—		(1,595	)		(622	)		1,760			457
Other current assets		1,457		(8,300	)		6,047			2,181			1,529
Property, plant and equipment, net		1,423		—			—			747			676
Mineral leaseholds, net		1,439		—			—			796			643
Other assets		476		—			(3	)		401			78
Total Assets	$	5,511	$	(9,895	)	$	5,955		$	5,967		$	3,484
Liabilities and Shareholders’ Equity
Current liabilities	$	467	$	(539	)	$	560		$	133		$	313
Long-term debt		1,605		—			—			902			703
Other long-term liabilities		557		(7,709	)		882			6,978			406
Total Liabilities		2,629		(8,248	)		1,442			8,013			1,422
Total Equity		2,882		(1,647	)		4,513			(2,046	)		2,062
Total Liabilities and Equity	$	5,511	$	(9,895	)	$	5,955		$	5,967		$	3,484

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended December 31, 2012

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Cash Flows from Operating Activities
Net income (loss)	$	1,133		$	1,529		$	(45	)	$	(383	)	$	32
Gain on bargain purchase		(1,055	)		—			(1,055	)		—			—
Other		40			(1,529	)		2,098			(18	)		(511	)
Cash provided by (used in) operating activities		118			—			998			(401	)		(479	)
Cash Flows from Investing Activities:
Capital expenditures		(166	)		—			—			(89	)		(77	)
Cash paid in acquisition of mineral sands business		(1	)		—			(1	)		—			—
Cash received in acquisition of mineral sands business		115			—			115			—			—
Cash provided by (used in) investing activities		(52	)		—			114			(89	)		(77	)
Cash Flows from Financing Activities
Reductions of debt		(585	)		—			—			(481	)		(104	)
Proceeds from borrowings		1,707			—			—			960			747
Debt issuance costs		(38	)		—			—			(19	)		(19	)
Merger consideration		(193	)		—			(193	)		—			—
Class A ordinary shares repurchases		(326	)		—			(326	)		—			—
Shares purchased for the Employee Participation Plan		(15	)		—			—			—			(15	)
Paid dividends		(61	)		—			(61	)		—			—
Proceeds from conversion of warrants		1			—			1			—			—
Cash provided by (used in) financing activities		490			—			(579	)		460			609
Effects of Exchange Rate Changes on Cash and Cash Equivalents		6			—			—			8			(2	)
Net Increase (Decrease) in Cash and Cash Equivalents		562			—			533			(22	)		51
Cash and Cash Equivalents at Beginning of Period		154			—			—			104			50
Cash and Cash Equivalents at End of Period	$	716		$	—		$	533		$	82		$	101

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Eleven Months Ended December 31, 2011

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	1,543		$	9		$	—	$	1,207		$	327
Cost of goods sold		1,104			22			—		856			226
Gross Margin		439			(13	)		—		351			101
Selling, general and administrative expenses		152			(3	)		—		142			13
Litigation/arbitration settlement		(10	)		—			—		(10	)		—
Provision for environmental remediation and restoration, net of reimbursements		(5	)		—			—		(5	)		—
Income (Loss) from Operations		302			(10	)		—		224			88
Interest and debt expense		(30	)		—			—		(20	)		(10	)
Other income (expense)		(10	)		31			—		(35	)		(6	)
Equity in earnings of subsidiary		—			(72	)		—		72			—
Income (Loss) from Continuing Operations before Income Taxes		262			(51	)		—		241			72
Income tax benefit (provision)		(20	)		—			—		6			(26	)
Income (Loss) from Continuing Operations	$	242		$	(51	)	$	—	$	247		$	46

CONDENSED CONSOLIDATED STATEMENTS COMPREHENSIVE INCOME

Eleven Months Ended December 31, 2011

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	242		$	(51	)	$	—	$	247		$	46
Other Comprehensive Income (Loss):
Foreign currency translation adjustments		(6	)		—			—		(130	)		124
Amortization of actuarial losses		(51	)		—			—		(37	)		(14	)
Other comprehensive income (loss)		(57	)		—			—		(167	)		110
Total comprehensive income (loss)	$	185		$	(51	)	$	—	$	80		$	156

CONDENSED CONSOLIDATED BALANCE SHEETS

December 31, 2011

(Millions of U.S. dollars)

	Consolidated		Eliminations			Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	$	154	$	—		$	—	$	104	$	50
Investment in subsidiaries		—		(1,027	)		—		570		457
Other current assets		615		(629	)		—		918		326
Property, plant and equipment, net		504		—			—		450		54
Mineral leaseholds, net		38		—			—		38		—
Other assets		346		—			—		336		10
Total Assets	$	1,657	$	(1,656	)	$	—	$	2,416	$	897
Liabilities and Shareholders’ Equity
Current liabilities	$	281	$	(47	)	$	—	$	267	$	61
Long-term debt		421		—			—		421		—
Other long-term liabilities		203		(574	)		—		211		566
Total Liabilities		905		(621	)		—		899		627
Total Shareholders’ Equity		752		(1,035	)		—		1,517		270
Total Liabilities and Equity	$	1,657	$	(1,656	)	$	—	$	2,416	$	897

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Eleven Months Ended December 31, 2011

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Cash Flows from Operating Activities
Net income (loss)	$	242		$	(51	)	$	—	$	247		$	46
Other		21			51			—		(36	)		6
Cash provided by operating activities		263			—			—		211			52
Cash Flows from Investing Activities:
Capital expenditures		(133	)		—			—		(125	)		(8	)
Proceeds from the sale of assets		1			—			—		1			—
Cash used in investing activities		(132	)		—			—		(124	)		(8	)
Cash Flows from Financing Activities
Reductions of debt		(45	)		—			—		(45	)		—
Proceeds from borrowings		14			—			—		14			—
Debt issuance costs and commitment fees		(5	)		—			—		(5	)		—
Proceeds from conversion of warrants		1			—			—		1			—
Cash used in financing activities		(35	)		—			—		(35	)		—
Effects of Exchange Rate Changes on Cash and Cash Equivalents		(3	)		—			—		—			(3	)
Net Increase in Cash and Cash Equivalents		93			—			—		52			41
Cash and Cash Equivalents at Beginning of Period		61			—			—		52			9
Cash and Cash Equivalents at End of Period	$	154		$	—		$	—	$	104		$	50

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

One Month Ended January 31, 2011

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	108		$	(23	)	$	—	$	111		$	20
Cost of goods sold		83			(22	)		—		89			16
Gross Margin		25			(1	)		—		22			4
Selling, general and administrative expenses		5			(1	)		—		5			1
Income from Operations		20			—			—		17			3
Interest and debt expense		(3	)		—			—		(3	)		—
Other income (expense)		615			2			—		550			63
Equity in earnings of subsidiary		—			(63	)		—		63			—
Income (Loss) from Continuing Operations before Income Taxes		632			(61	)		—		627			66
Income tax provision		(1	)		—			—		(1	)		—
Net Income (Loss)	$	631		$	(61	)	$	—	$	626		$	66

CONDENSED CONSOLIDATED STATEMENTS COMPREHENSIVE INCOME

One Month Ended January 31, 2011

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	631		$	(61	)	$	—	$	626	$	66
Other Comprehensive Income (Loss):
Foreign currency translation adjustments		1			—			—		—		1
Amortization of prior service cost		(1	)		—			—		—		(1	)
Other comprehensive income		—			—			—		—		—
Total comprehensive income (loss)	$	631		$	(61	)	$	—	$	626	$	66

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

One Month Ended January 31, 2011

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Cash Flows from Operating Activities
Net income (loss)	$	631		$	(61	)	$	—	$	626		$	66
Reorganization items		(954	)		—			—		(954	)		—
Other		40			61			—		61			(82	)
Cash used in operating activities		(283	)		—			—		(267	)		(16	)
Cash Flows from Investing Activities:
Capital expenditures		(6	)		—			—		(6	)		—
Cash used in investing activities		(6	)		—			—		(6	)		—
Cash Flows from Financing Activities
Proceeds from borrowings		25			—			—		25			—
Debt issuance costs and commitment fees		(2	)		—			—		(2	)		—
Proceeds from rights offering		185			—			—		185			—
Cash provided by financing activities		208			—			—		208			—
Effects of Exchange Rate Changes on Cash and Cash Equivalents		—			—			—		—			—
Net Decrease in Cash and Cash Equivalents		(81	)		—			—		(65	)		(16	)
Cash and Cash Equivalents at Beginning of Period		142			—			—		117			25
Cash and Cash Equivalents at End of Period	$	61		$	—		$	—	$	52		$	9

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Year Ended December 31, 2010

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Sales	$	1,218		$	(299	)	$	—	$	1,240		$	277
Cost of goods sold		996			(289	)		—		1,047			238
Gross Margin		222			(10	)		—		193			39
Selling, general and administrative expenses		59			(9	)		—		56			12
Provision for environmental remediation and restoration, net of reimbursements		(47	)		—			—		(47	)		—
Income (Loss) from Operations		210			(1	)		—		184			27
Interest and debt expense		(50	)		—			—		(38	)		(12	)
Other income (expense)		(153	)		121			—		(159	)		(115	)
Equity in earnings of subsidiary		—			114			—		(114	)		—
Income (Loss) from Continuing Operations before Income Taxes		7			234			—		(127	)		(100	)
Income tax benefit (provision)		(2	)		(1	)		—		6			(7	)
Income (Loss) from Continuing Operations		5			233			—		(121	)		(107	)
Income from discontinued operations		1			—			—		1			—
Net Income (Loss)	$	6		$	233		$	—	$	(120	)	$	(107	)

CONDENSED CONSOLIDATED STATEMENTS COMPREHENSIVE INCOME

Year Ended December 31, 2010

(Millions of U.S. dollars)

	Consolidated			Eliminations		Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net Income (Loss):
Net Income (Loss)	$	6		$	233	$	—	$	(120	)	$	(107	)
Other Comprehensive Loss:
Foreign currency translation adjustments		(10	)		—		—		(3	)		(7	)
Retirement and postretirement plans adjustments		(13	)		—		—		(9	)		(4	)
Other comprehensive loss		(23	)		—		—		(12	)		(11	)
Total comprehensive income (loss)	$	(17	)	$	233	$	—	$	(132	)	$	(118	)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended December 31, 2010

(Millions of U.S. dollars)

	Consolidated			Eliminations			Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Cash Flows from Operating Activities
Net income (loss)	$	6		$	233		$	—	$	(120	)	$	(107	)
Other		71			(233	)		—		185			119
Cash provided by operating activities		77			—			—		65			12
Cash Flows from Investing Activities:
Capital expenditures		(45	)		—			—		(38	)		(7	)
Cash used in investing activities		(45	)		—			—		(38	)		(7	)
Cash Flows from Financing Activities
Reductions of debt		(425	)		—			—		(425	)		—
Proceeds from borrowings		425			—			—		425			—
Debt issuance costs		(15	)		—			—		(15	)		—
Fees related to rights offering and other related debt costs		(17	)		—			—		(17	)		—
Cash used in financing activities		(32	)		—			—		(32	)		—
Effects of Exchange Rate Changes on Cash and Cash Equivalents		(1	)		—			—		(1	)		—
Net Increase (Decrease) in Cash and Cash Equivalents		(1	)		—			—		(6	)		5
Cash and Cash Equivalents at Beginning of Period		143			—			—		123			20
Cash and Cash Equivalents at End of Period	$	142		$	—		$	—	$	117		$	25