(State or other jurisdiction | (I.R.S. Employer Identification No.) |
of incorporation or organization) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | Emerging growth company |
Page | ||
• | volatile global economic conditions; |
• | cyclical and volatile TiO2 product applications; |
• | highly competitive industries and the need to innovate and develop new products; |
• | industry production capacity and operating rates; |
• | our ability to successfully transfer production of certain specialty and differentiated products from our Pori, Finland manufacturing facility to other sites within our manufacturing network and the costs associated with such transfer and the closure of the facility; |
• | economic conditions and regulatory changes following the likely exit of the United Kingdom (the "U.K.") from the European Union ("EU"); |
• | increased manufacturing regulations for some of our products, including the outcome of the pending potential classification of TiO2 as a carcinogen in the EU or any increased regulatory scrutiny; |
• | planned and unplanned production shutdowns, turnarounds, outages and other disruptions at our or our suppliers' manufacturing facilities; |
• | our ability to cover costs from production disruptions, including construction costs and lost revenue, with insurance proceeds; |
• | fluctuations in currency exchange rates and tax rates; |
• | impacts on the markets for our products and the broader global economy from the imposition of tariffs by the U.S. and other countries; |
• | price volatility or interruptions in supply of raw materials and energy; |
• | our ability to realize financial and operational benefits from our business improvement plans and initiatives; |
• | changes to laws, regulations or the interpretation thereof; |
• | our ability to successfully grow and transform our business, including by way of acquisitions, divestments and restructuring initiatives; |
• | differences in views with our joint venture participants; |
• | high levels of indebtedness; |
• | EHS laws and regulations; |
• | our ability to obtain future capital on favorable terms; |
• | seasonal sales patterns in our product markets; |
• | our ability to successfully defend legal claims against us, or to pursue legal claims against third parties; |
• | our ability to adequately protect our critical information technology systems; |
• | our ability to comply with expanding data privacy regulations; |
• | failure to maintain effective internal controls over financial reporting and disclosure; |
• | our indemnification of Huntsman and other commitments and contingencies; |
• | financial difficulties and related problems experienced by our customers, vendors, suppliers and other business partners; |
• | failure to enforce our intellectual property rights; |
• | our ability to effectively manage our labor force; and |
• | conflicts, military actions, terrorist attacks, cyber-attacks and general instability. |
(In millions, except par value) | June 30, 2019 | December 31, 2018 | |||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents(a) | $ | $ | |||||
Accounts receivable (net of allowance for doubtful accounts of $5, each)(a) | |||||||
Inventories(a) | |||||||
Prepaid expenses | |||||||
Other current assets | |||||||
Total current assets | |||||||
Property, plant and equipment, net(a) | |||||||
Operating lease right-of-use assets | — | ||||||
Intangible assets, net(a) | |||||||
Investment in unconsolidated affiliates | |||||||
Deferred income taxes | |||||||
Other noncurrent assets | |||||||
Total assets | $ | $ | |||||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable(a) | $ | $ | |||||
Accounts payable to affiliates | |||||||
Accrued liabilities(a) | |||||||
Current operating lease liability | — | ||||||
Current portion of debt(a) | |||||||
Total current liabilities | |||||||
Long-term debt | |||||||
Operating lease liability | — | ||||||
Other noncurrent liabilities | |||||||
Noncurrent payable to affiliates | |||||||
Total liabilities | |||||||
Commitments and contingencies (Notes 12 and 13) | |||||||
Equity | |||||||
Ordinary shares $0.001 par value, 200 shares authorized, each, 107 and 106 issued and outstanding, respectively | |||||||
Additional paid-in capital | |||||||
Retained deficit | ( | ) | ( | ) | |||
Accumulated other comprehensive loss | ( | ) | ( | ) | |||
Total Venator Materials PLC shareholders' equity | |||||||
Noncontrolling interest in subsidiaries | |||||||
Total equity | |||||||
Total liabilities and equity | $ | $ |
(a) | At June 30, 2019 and December 31, 2018, the following amounts from consolidated variable interest entities are included in the respective balance sheet captions above: $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(Dollars in millions, except per share amounts) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Trade sales, services and fees, net | $ | $ | $ | $ | |||||||||||
Cost of goods sold | |||||||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative | |||||||||||||||
Restructuring, impairment, and plant closing and transition costs | |||||||||||||||
Other operating (income) expense, net | ( | ) | ( | ) | |||||||||||
Total operating expenses | |||||||||||||||
Operating income | |||||||||||||||
Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Interest income | |||||||||||||||
Other income | |||||||||||||||
Income before income taxes | |||||||||||||||
Income tax benefit (expense) | ( | ) | ( | ) | |||||||||||
Net income | |||||||||||||||
Net income attributable to noncontrolling interests | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net income attributable to Venator | $ | $ | $ | $ | |||||||||||
Per Share Data: | |||||||||||||||
Income attributable to Venator Materials PLC ordinary shareholders, basic | $ | $ | $ | $ | |||||||||||
Income attributable to Venator Materials PLC ordinary shareholders, diluted | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||
Foreign currency translation adjustment | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Pension and other postretirement benefits adjustments | |||||||||||||||
Hedging instruments | |||||||||||||||
Total other comprehensive (loss) income, net of tax | ( | ) | ( | ) | ( | ) | |||||||||
Comprehensive income | |||||||||||||||
Comprehensive income attributable to noncontrolling interest | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Comprehensive income attributable to Venator | $ | $ | $ | $ |
Total Venator Materials PLC Equity | |||||||||||||||||||||||||
Ordinary Shares | Additional Paid-in Capital | Retained Deficit | Accumulated Other Comprehensive Loss | Noncontrolling Interest in Subsidiaries | Total | ||||||||||||||||||||
(In millions) | Shares | Amount | |||||||||||||||||||||||
Balance, January 1, 2019 | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||||
Net (loss) income | — | — | — | ( | ) | — | ( | ) | |||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | ||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||
Activity related to stock plans | — | — | — | — | |||||||||||||||||||||
Balance, March 31, 2019 | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||
Activity related to stock plans | — | — | — | — | |||||||||||||||||||||
Balance, June 30, 2019 | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ |
Total Venator Materials PLC Equity | |||||||||||||||||||||||||
Ordinary Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest in Subsidiaries | Total | ||||||||||||||||||||
(In millions) | Shares | Amount | |||||||||||||||||||||||
Balance, January 1, 2018 | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | ||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||
Activity related to stock plans | — | — | — | — | — | ||||||||||||||||||||
Balance, March 31, 2018 | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||
Dividends paid to noncontrolling interests | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||
Activity related to stock plans | — | — | — | — | — | ||||||||||||||||||||
Balance, June 30, 2018 | $ | $ | $ | $ | ( | ) | $ | $ |
Six months ended June 30, | |||||||
(Dollars in millions) | 2019 | 2018 | |||||
Operating Activities: | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||
Depreciation and amortization | |||||||
Deferred income taxes | ( | ) | |||||
Noncash restructuring and impairment charges | ( | ) | |||||
Other, net | |||||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | ( | ) | ( | ) | |||
Inventories | ( | ) | |||||
Prepaid expenses | |||||||
Other current assets | ( | ) | ( | ) | |||
Other noncurrent assets | ( | ) | |||||
Accounts payable | ( | ) | ( | ) | |||
Accrued liabilities | ( | ) | ( | ) | |||
Other noncurrent liabilities | ( | ) | ( | ) | |||
Net cash (used in) provided by operating activities | ( | ) | |||||
Investing Activities: | |||||||
Capital expenditures | ( | ) | ( | ) | |||
Cash received from unconsolidated affiliates | |||||||
Investment in unconsolidated affiliates | ( | ) | ( | ) | |||
Cash received from notes receivable | |||||||
Other, net | ( | ) | |||||
Net cash used in investing activities | ( | ) | ( | ) | |||
Financing Activities: | |||||||
Net borrowings under ABL Facility | |||||||
Repayment of third-party debt | ( | ) | ( | ) | |||
Dividends paid to noncontrolling interests | ( | ) | ( | ) | |||
Other, net | ( | ) | |||||
Net cash provided by (used in) financing activities | ( | ) | |||||
Effect of exchange rate changes on cash | ( | ) | |||||
Net change in cash and cash equivalents | ( | ) | |||||
Cash and cash equivalents at beginning of period | |||||||
Cash and cash equivalents at end of period | $ | $ | |||||
Supplemental cash flow information: | |||||||
Cash paid for interest | $ | $ | |||||
Cash paid for income taxes | |||||||
Supplemental disclosure of noncash activities: | |||||||
Capital expenditures included in accounts payable as of June 30, 2019 and 2018, respectively | $ | $ |
Lease Cost | Three months ended June 30, 2019 | Six months ended June 30, 2019 | |||||
Operating lease cost | $ | $ | |||||
Finance lease cost: | |||||||
Amortization of right-of-use assets | |||||||
Interest on lease liabilities | |||||||
Short-term lease cost |
Leases | As of June 30, 2019 | ||
Assets | |||
Operating Lease Right-of-Use Assets | $ | ||
Finance Lease Right-of-Use Assets, at cost | $ | ||
Accumulated Depreciation | ( | ) | |
Finance Lease Right-of-Use Assets, net | $ | ||
Liabilities | |||
Operating Lease Obligation | |||
Current | $ | ||
Non-Current | |||
Total Operating Lease Liabilities | $ | ||
Finance Lease Obligation | |||
Current | $ | ||
Non-Current | |||
Total Finance Lease Liabilities | $ |
Cash Flow Information | Three months ended June 30, 2019 | Six months ended June 30, 2019 | |||||
Operating cash flows from operating leases | $ | $ | |||||
Operating cash flows from finance leases | |||||||
Financing cash flows from finance leases |
Lease Term and Discount Rate | As of June 30, 2019 | |
Weighted average remaining lease term (years) | ||
Operating leases | ||
Finance leases | ||
Weighted average discount rate | ||
Operating leases | % | |
Financing leases | % |
June 30, 2019 | Operating Leases | Finance Leases | Total | ||||||||
2019 (remaining) | $ | $ | $ | ||||||||
2020 | |||||||||||
2021 | |||||||||||
2022 | |||||||||||
2023 | |||||||||||
After 2023 | |||||||||||
Total lease payments | $ | $ | $ | ||||||||
Less: Interest | |||||||||||
Present value of lease liabilities | $ | $ | $ |
December 31, | Operating Leases | Capital Leases | |||||
2019 | $ | $ | |||||
2020 | |||||||
2021 | |||||||
2022 | |||||||
2023 | |||||||
Thereafter | |||||||
Total | $ | $ | |||||
Less: Amounts representing interest | |||||||
Present value of minimum lease payments | $ | ||||||
Less: Current portion of capital leases | |||||||
Long-term portion of capital leases | $ |
Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | |||||||||||||||||||||||
Titanium Dioxide | Performance Additives | Total | Titanium Dioxide | Performance Additives | Total | |||||||||||||||||||
Europe | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
North America | ||||||||||||||||||||||||
Asia | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||
Total Revenues | $ | $ | $ | $ | $ | $ |
Three Months Ended June 30, 2018 | Six Months Ended June 30, 2018 | |||||||||||||||||||||||
Titanium Dioxide | Performance Additives | Total | Titanium Dioxide | Performance Additives | Total | |||||||||||||||||||
Europe | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
North America | ||||||||||||||||||||||||
Asia | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||
Total Revenues | $ | $ | $ | $ | $ | $ |
Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | |||||||||||||||||||||||
Titanium Dioxide | Performance Additives | Total | Titanium Dioxide | Performance Additives | Total | |||||||||||||||||||
TiO2 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Color Pigments | ||||||||||||||||||||||||
Functional Additives | ||||||||||||||||||||||||
Timber Treatment | ||||||||||||||||||||||||
Water Treatment | ||||||||||||||||||||||||
Total Revenues | $ | $ | $ | $ | $ | $ |
Three Months Ended June 30, 2018 | Six Months Ended June 30, 2018 | |||||||||||||||||||||||
Titanium Dioxide | Performance Additives | Total | Titanium Dioxide | Performance Additives | Total | |||||||||||||||||||
TiO2 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Color Pigments | ||||||||||||||||||||||||
Functional Additives | ||||||||||||||||||||||||
Timber Treatment | ||||||||||||||||||||||||
Water Treatment | ||||||||||||||||||||||||
Total Revenues | $ | $ | $ | $ | $ | $ |
June 30, 2019 | December 31, 2018 | ||||||
Raw materials and supplies | $ | $ | |||||
Work in process | |||||||
Finished goods | |||||||
Total | $ | $ |
• | Pacific Iron Products Sdn Bhd is our |
• | Viance, LLC ("Viance") is our |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues | $ | $ | $ | $ | |||||||||||
Income before income taxes | |||||||||||||||
Net cash provided by operating activities |
Workforce reductions(1) | Other restructuring costs | Total(2) | |||||||||
Accrued liabilities as of December 31, 2018 | $ | $ | $ | ||||||||
2019 charges for 2018 and prior initiatives | |||||||||||
2019 charges for 2019 initiatives | |||||||||||
2019 payments for 2018 and prior initiatives | ( | ) | ( | ) | ( | ) | |||||
2019 payments for 2019 initiatives | ( | ) | ( | ) | |||||||
Accrued liabilities as of June 30, 2019 | $ | $ | $ | ||||||||
Current portion of restructuring reserves | $ | ||||||||||
Long-term portion of restructuring reserve |
(1) | The total workforce reduction reserves of $ |
(2) | Accrued liabilities remaining at June 30, 2019 and December 31, 2018 by year of initiatives were as follows: |
June 30, 2019 | December 31, 2018 | ||||||
2017 initiatives and prior | $ | $ | |||||
2018 initiatives | |||||||
2019 initiatives | |||||||
Total | $ | $ |
Three months ended | Six months ended | ||||||
June 30, 2019 | June 30, 2019 | ||||||
Cash charges | $ | $ | |||||
Early settlement of contractual obligation | ( | ) | ( | ) | |||
Accelerated depreciation | |||||||
Total 2019 Restructuring, Impairment and Plant Closing and Transition Costs | $ | $ |
Three months ended | Six months ended | ||||||
June 30, 2018 | June 30, 2018 | ||||||
Cash charges | $ | $ | |||||
Accelerated depreciation | |||||||
Other noncash charges | |||||||
Total 2018 Restructuring, Impairment and Plant Closing and Transition Costs | $ | $ |
June 30, 2019 | December 31, 2018 | ||||||
Senior Notes | $ | $ | |||||
Term Loan Facility | |||||||
Other | |||||||
Total debt | |||||||
Less: short-term debt and current portion of long-term debt | |||||||
Long-term debt | $ | $ |
• | the Term Loan Facility in an aggregate principal amount of $ |
• | the ABL Facility in an aggregate principal amount of up to $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Numerator: | |||||||||||||||
Net income attributable to Venator Materials PLC ordinary shareholders | $ | $ | $ | $ | |||||||||||
Denominator: | |||||||||||||||
Weighted average shares outstanding | |||||||||||||||
Dilutive share-based awards | |||||||||||||||
Total weighted average shares outstanding, including dilutive shares |
Foreign currency translation adjustment(a) | Pension and other postretirement benefits adjustments net of tax(b) | Other comprehensive loss of unconsolidated affiliates | Hedging Instruments | Total | Amounts attributable to noncontrolling interests | Amounts attributable to Venator | |||||||||||||||||||||
Beginning balance, January 1, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||||
Other comprehensive (loss) income before reclassifications, gross | ( | ) | |||||||||||||||||||||||||
Tax benefit | |||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss, gross(c) | |||||||||||||||||||||||||||
Tax expense | |||||||||||||||||||||||||||
Net current-period other comprehensive (loss) income | ( | ) | |||||||||||||||||||||||||
Ending balance, June 30, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) |
Foreign currency translation adjustment(d) | Pension and other postretirement benefits adjustments net of tax(e) | Other comprehensive loss of unconsolidated affiliates | Hedging Instruments | Total | Amounts attributable to noncontrolling interests | Amounts attributable to Venator | |||||||||||||||||||||
Beginning balance, January 1, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||||
Other comprehensive (loss) income before reclassifications, gross | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Tax benefit | |||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss, gross(c) | |||||||||||||||||||||||||||
Tax expense | |||||||||||||||||||||||||||
Net current-period other (loss) comprehensive income | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Ending balance, June 30, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) |
(a) | Amounts are net of tax of |
(b) | Amounts are net of tax of $ |
(c) | See table below for details about the amounts reclassified from accumulated other comprehensive loss. |
(d) | Amounts are net of tax of |
(e) | Amounts are net of tax of $ |
Three months ended June 30, | Six months ended June 30, | Affected line item in the statement where net income is presented | |||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
Details about Accumulated Other Comprehensive Loss Components(a): | |||||||||||||||||
Amortization of pension and other postretirement benefits: | |||||||||||||||||
Actuarial loss | $ | $ | $ | $ | Other income | ||||||||||||
Prior service credit | Other income | ||||||||||||||||
Total amortization | Total before tax | ||||||||||||||||
Income tax expense | Income tax expense | ||||||||||||||||
Total reclassifications for the period | $ | $ | $ | $ | Net of tax |
(a) | Pension and other postretirement benefit amounts in parentheses indicate credits on our unaudited condensed consolidated statements of operations. |
Segment | Product Group | |
Titanium Dioxide | titanium dioxide | |
Performance Additives | functional additives, color pigments, timber treatment and water treatment chemicals |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues: | |||||||||||||||
Titanium Dioxide | $ | $ | $ | $ | |||||||||||
Performance Additives | |||||||||||||||
Total | $ | $ | $ | $ | |||||||||||
Adjusted EBITDA(1) | |||||||||||||||
Titanium Dioxide | $ | $ | $ | $ | |||||||||||
Performance Additives | |||||||||||||||
Corporate and other | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Total | |||||||||||||||
Reconciliation of adjusted EBITDA to net income: | |||||||||||||||
Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Interest income | |||||||||||||||
Income tax benefit (expense) | ( | ) | ( | ) | |||||||||||
Depreciation and amortization | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net income attributable to noncontrolling interests | |||||||||||||||
Other adjustments: | |||||||||||||||
Business acquisition and integration adjustments (expenses) | ( | ) | ( | ) | ( | ) | |||||||||
Separation expense, net | ( | ) | |||||||||||||
Loss on disposition of business/assets | ( | ) | ( | ) | |||||||||||
Certain legal settlements and related expenses | ( | ) | ( | ) | |||||||||||
Amortization of pension and postretirement actuarial losses | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net plant incident (costs) credits | ( | ) | ( | ) | |||||||||||
Restructuring, impairment and plant closing and transition costs | ( | ) | ( | ) | ( | ) | |||||||||
Net income | $ | $ | $ | $ |
(1) | Adjusted EBITDA is defined as net income/loss of Venator before interest expense, interest income, income tax expense/benefit, depreciation and amortization and net income attributable to noncontrolling interests, as well as eliminating the following adjustments: (a) business acquisition and integration expenses/adjustments; (b) separation expense/gain, net; (c) loss/gain on disposition of business/assets; (d) certain legal settlements and related expenses/gains; (e) amortization of pension and postretirement actuarial losses/gains; (f) net plant incident costs/credits; and (g) restructuring, impairment, and plant closing and transition costs/credits. |
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | % Change | 2019 | 2018 | % Change | |||||||||||||||
Revenues | $ | 578 | $ | 626 | (8 | %) | $ | 1,140 | $ | 1,248 | (9 | %) | |||||||||
Cost of goods sold | 511 | 193 | 165 | % | 997 | 647 | 54 | % | |||||||||||||
Operating expenses(4) | 45 | 46 | (2 | %) | 100 | 97 | 3 | % | |||||||||||||
Restructuring, impairment and plant closing and transition costs | — | 136 | (100 | %) | 12 | 145 | (92 | %) | |||||||||||||
Operating income | 22 | 251 | (91 | %) | 31 | 359 | (91 | %) | |||||||||||||
Interest expense, net | (10 | ) | (10 | ) | — | % | (21 | ) | (20 | ) | (5 | %) | |||||||||
Other income | 1 | 2 | (50 | %) | 2 | 4 | (50 | %) | |||||||||||||
Income before income taxes | 13 | 243 | (95 | %) | 12 | 343 | (97 | %) | |||||||||||||
Income tax benefit (expense) | 9 | (45 | ) | NM | 8 | (65 | ) | NM | |||||||||||||
Net income | 22 | 198 | (89 | %) | 20 | 278 | (93 | %) | |||||||||||||
Reconciliation of net income to adjusted EBITDA: | |||||||||||||||||||||
Interest expense, net | 10 | 10 | — | % | 21 | 20 | 5 | % | |||||||||||||
Income tax (benefit) expense | (9 | ) | 45 | NM | (8 | ) | 65 | NM | |||||||||||||
Depreciation and amortization | 29 | 35 | (17 | %) | 55 | 69 | (20 | %) | |||||||||||||
Net income attributable to noncontrolling interests | (1 | ) | (2 | ) | 50 | % | (2 | ) | (4 | ) | 50 | % | |||||||||
Other adjustments: | |||||||||||||||||||||
Business acquisition and integration (adjustments) expenses | (1 | ) | 2 | 1 | 4 | ||||||||||||||||
Separation expense, net | — | — | — | 1 | |||||||||||||||||
Loss on disposition of business/assets | — | 2 | — | 2 | |||||||||||||||||
Certain legal settlements and related expenses | 1 | — | 1 | — | |||||||||||||||||
Amortization of pension and postretirement actuarial losses | 4 | 4 | 8 | 7 | |||||||||||||||||
Net plant incident costs (credits) | 6 | (273 | ) | 13 | (273 | ) | |||||||||||||||
Restructuring, impairment and plant closing and transition costs | — | 136 | 12 | 145 | |||||||||||||||||
Adjusted EBITDA(1) | $ | 61 | $ | 157 | $ | 121 | $ | 314 | |||||||||||||
Net cash (used in) provided by operating activities | $ | (50 | ) | $ | 305 | NM | |||||||||||||||
Net cash used in investing activities | (82 | ) | (162 | ) | (49 | %) | |||||||||||||||
Net cash provided by (used in) financing activities | 17 | (14 | ) | NM | |||||||||||||||||
Capital expenditures | (83 | ) | (167 | ) | (50 | %) |
Three Months Ended | Three Months Ended | ||||||
(Dollars in millions, except per share amounts) | June 30, 2019 | June 30, 2018 | |||||
Reconciliation of net income to adjusted net income attributable to Venator Materials PLC ordinary shareholders: | |||||||
Net income | $ | 22 | $ | 198 | |||
Net income attributable to noncontrolling interests | (1 | ) | (2 | ) | |||
Other adjustments: | |||||||
Business acquisition and integration (adjustments) expenses | (1 | ) | 2 | ||||
Loss on disposition of business/assets | — | 2 | |||||
Certain legal settlements and related expenses | 1 | — | |||||
Amortization of pension and postretirement actuarial losses | 4 | 4 | |||||
Net plant incident costs (credits) | 6 | (273 | ) | ||||
Restructuring, impairment and plant closing and transition costs | — | 136 | |||||
Income tax adjustments(3) | (17 | ) | 24 | ||||
Adjusted net income attributable to Venator Materials PLC ordinary shareholders(2) | $ | 14 | $ | 91 | |||
Weighted-average shares-basic | 106.6 | 106.4 | |||||
Weighted-average shares-diluted | 106.6 | 106.7 | |||||
Net income attributable to Venator Materials PLC ordinary shareholders per share: | |||||||
Basic | $ | 0.20 | $ | 1.84 | |||
Diluted | $ | 0.20 | $ | 1.84 | |||
Other non-GAAP measures: | |||||||
Adjusted net income per share(2): | |||||||
Basic | $ | 0.13 | $ | 0.86 | |||
Diluted | $ | 0.13 | $ | 0.85 |
Six Months Ended | Six Months Ended | ||||||
(Dollars in millions, except per share amounts) | June 30, 2019 | June 30, 2018 | |||||
Reconciliation of net income to adjusted net income attributable to Venator Materials PLC ordinary shareholders: | |||||||
Net income | $ | 20 | $ | 278 | |||
Net income attributable to noncontrolling interests | (2 | ) | (4 | ) | |||
Other adjustments: | |||||||
Business acquisition and integration expenses | 1 | 4 | |||||
Separation expense, net | — | 1 | |||||
Loss on disposition of business/assets | — | 2 | |||||
Certain legal settlements and related expenses | 1 | — | |||||
Amortization of pension and postretirement actuarial losses | 8 | 7 | |||||
Net plant incident costs (credits) | 13 | (273 | ) | ||||
Restructuring, impairment and plant closing and transition costs | 12 | 145 | |||||
Income tax adjustments(3) | (25 | ) | 23 | ||||
Adjusted net income attributable to Venator Materials PLC ordinary shareholders(2) | $ | 28 | $ | 183 | |||
Weighted-average shares-basic | 106.5 | 106.4 | |||||
Weighted-average shares-diluted | 106.5 | 106.8 | |||||
Net income attributable to Venator Materials PLC ordinary shareholders per share: | |||||||
Basic | $ | 0.17 | $ | 2.58 | |||
Diluted | $ | 0.17 | $ | 2.57 | |||
Other non-GAAP measures: | |||||||
Adjusted net income per share(2): | |||||||
Basic | $ | 0.26 | $ | 1.72 | |||
Diluted | $ | 0.26 | $ | 1.71 |
(1) | Our management uses adjusted EBITDA to assess financial performance. Adjusted EBITDA is defined as net income/loss before interest income/expense, net, income tax expense/benefit, depreciation and amortization, and net income attributable to noncontrolling interests, as well as eliminating the following adjustments: (a) business acquisition and integration expenses/adjustments; (b) separation expense/gain, net; (c) loss/gain on disposition of business/assets; (d) certain legal settlements and related expenses/gains; (e) amortization of pension and postretirement actuarial losses/gains; (f) net plant incident costs/credits; and (g) restructuring, impairment, and plant closing and transition costs/credits. We believe that net income is the performance measure calculated and presented in accordance with generally accepted accounting principles in the United States ("U.S. GAAP" or "GAAP") that is most directly comparable to adjusted EBITDA. |
(2) | Adjusted net income attributable to Venator Materials PLC ordinary shareholders is computed by eliminating the after-tax amounts related to the following from net income attributable to Venator Materials PLC ordinary shareholders: (a) business acquisition and integration expenses/adjustments; (b) separation expense/gain, net; (c) loss/gain on disposition of business/assets; (d) certain legal settlements and related expenses/gains; (e) amortization of pension and postretirement actuarial losses/gains; (f) net plant incident costs/credits; and (g) restructuring, impairment, and plant closing and transition costs/credits. Basic adjusted net income per share excludes dilution and is computed by dividing adjusted net income by the weighted average number of shares outstanding during the period. Adjusted diluted net income per share reflects all potential dilutive ordinary shares outstanding during the period increased by the number of additional shares that would have been outstanding as dilutive securities. |
(3) | Prior to the second quarter of 2019, the income tax impacts, if any, of each adjusting item represented a ratable allocation of the total difference between the unadjusted tax expense and the total adjusted tax expense, computed without consideration of any adjusting items using a with and without approach. |
(4) | As presented within Item 2, operating expenses includes selling, general and administrative expenses and other operating expense (income), net. |
• | Revenues for the three months ended June 30, 2019 decreased by $48 million, or 8%, as compared with the same period in 2018. The decrease was due to a $16 million decrease in revenue in our Titanium Dioxide segment and a $32 million decrease in revenue in our Performance Additives segment. See "—Segment Analysis" below. |
• | Cost of goods sold for the three month period ended June 30, 2019 increased by $318 million from the same period in the prior year primarily as a result of the recognition of $325 million of insurance proceeds which was a credit to cost of goods sold in 2018. |
• | Our operating expenses for the three months ended June 30, 2019 decreased by $1 million, or 2%, as compared with the same period in 2018, primarily related to a $11 million decrease in selling, general and administrative expense offset by a $10 million decrease in other operating income. The decrease in selling, general and administrative expense is primarily as the result of reductions in personnel costs while the decrease in other operating income can be attributed to the sale of carbon credits in 2018. |
• | Restructuring, impairment and plant closing and transition costs for the three months ended June 30, 2019 decreased to nil from $136 million for the same period in 2018 primarily as a result of the closure of a portion of our Augusta, Georgia plant in the second quarter of 2018. For more information concerning restructuring and plant closing activities, see "Note 7. Restructuring, Impairment, and Plant Closing and Transition Costs" of the notes to unaudited condensed consolidated financial statements. |
• | Our income tax benefit for the three months ended June 30, 2019 was $9 million compared to income tax expense of $45 million for the same period in 2018. Our income taxes are significantly affected by the mix of income and losses in the tax jurisdictions in which we operate, as impacted by the presence of valuation allowances in certain tax jurisdictions. For further information concerning taxes, see "Note 10. Income Taxes" of the notes to unaudited condensed consolidated financial statements. |
Three Months Ended | Percent Change Favorable (Unfavorable) | |||||||||
June 30, | ||||||||||
(Dollars in millions) | 2019 | 2018 | ||||||||
Revenues | ||||||||||
Titanium Dioxide | $ | 439 | $ | 455 | (4 | %) | ||||
Performance Additives | 139 | 171 | (19 | %) | ||||||
Total | $ | 578 | $ | 626 | (8 | %) | ||||
Adjusted EBITDA | ||||||||||
Titanium Dioxide | $ | 55 | $ | 147 | (63 | %) | ||||
Performance Additives | 16 | 23 | (30 | %) | ||||||
71 | 170 | (58 | %) | |||||||
Corporate and other | (10 | ) | (13 | ) | 23 | % | ||||
Total | $ | 61 | $ | 157 | (61 | %) |
Three Months Ended June 30, 2019 vs. 2018 | |||||||||||
Average Selling Price(1) | |||||||||||
Local Currency | Foreign Currency Translation Impact | Mix & Other | Sales Volumes(2) | ||||||||
Period-Over-Period Increase (Decrease) | |||||||||||
Titanium Dioxide | (9 | %) | (4 | %) | — | % | 9 | % | |||
Performance Additives | (1 | %) | (3 | %) | 1 | % | (16 | %) |
(1) | Excludes revenues from tolling arrangements, by-products and raw materials. |
(2) | Excludes sales volumes of by-products and raw materials. |
• | Revenues for the six months ended June 30, 2019 decreased by $108 million, or 9%, as compared with the same period in 2018. The decrease was due to a $47 million, or 5% decline in revenue in our Titanium Dioxide segment primarily related to lower average TiO2 selling prices, and a $61 million, or 18% decline in revenue in our Performance Additives segment, primarily due to lower sales volumes. See “—Segment Analysis” below. |
• | Cost of goods sold for the six month period ended June 30, 2019 increased by $350 million from the same period in the prior year primarily as a result of the recognition of $325 million of insurance proceeds which was a credit to cost of goods sold in 2018. |
• | Our operating expenses for the six months ended June 30, 2019 increased by $3 million, or 3%, as compared with the same period in 2018, primarily related to $13 million of carbon credits sold in 2018 and the negative affects foreign exchange rates, offset by reductions in personnel costs. |
• | Restructuring, impairment and plant closing and transition costs for the six months ended June 30, 2019 decreased to $12 million from $145 million for the same period in 2018 primarily as a result of the closure of a portion of our Augusta, Georgia plant in the second quarter of 2018 and the closure of our plant in Pori, Finland beginning in the third quarter of 2018. For more information concerning restructuring activities, see "Note 7. Restructuring, Impairment, and Plant Closing and Transition Costs" of the notes to unaudited condensed consolidated financial statements. |
• | Our income tax benefit for the six months ended June 30, 2019 was $8 million compared to income tax expense of $65 million for the same period in 2018. Our income tax expense is significantly affected by the mix of income and losses in the tax jurisdictions in which we operated, as impacted by the presence of valuation allowances in certain tax jurisdictions. For further information concerning taxes, see "Note 10. Income Taxes" of the notes to unaudited condensed consolidated financial statements. |
Six Months Ended | Percent Change Favorable (Unfavorable) | |||||||||
June 30, | ||||||||||
(Dollars in millions) | 2019 | 2018 | ||||||||
Revenues | ||||||||||
Titanium Dioxide | $ | 864 | $ | 911 | (5 | %) | ||||
Performance Additives | 276 | 337 | (18 | %) | ||||||
Total | $ | 1,140 | $ | 1,248 | (9 | %) | ||||
Segment adjusted EBITDA | ||||||||||
Titanium Dioxide | $ | 116 | $ | 290 | (60 | %) | ||||
Performance Additives | 31 | 47 | (34 | %) | ||||||
147 | 337 | (56 | %) | |||||||
Corporate and other | (26 | ) | (23 | ) | (13 | %) | ||||
Total | $ | 121 | $ | 314 | (61 | %) |
Six Months Ended June 30, 2019 vs. 2018 | |||||||||||
Average Selling Price(1) | |||||||||||
Local Currency | Foreign Currency Translation Impact | Mix & Other | Sales Volumes(2) | ||||||||
Period-Over-Period Increase (Decrease) | |||||||||||
Titanium Dioxide | (7 | %) | (4 | %) | — | % | 6 | % | |||
Performance Additives | (1 | %) | (3 | %) | 1 | % | (15 | %) |
(1) | Excludes revenues from tolling arrangements, by-products and raw materials. |
(2) | Excludes sales volumes of by-products and raw materials. |
• | Cash invested in our accounts receivable and inventory, net of accounts payable, as reflected in our unaudited condensed consolidated statements of cash flows decreased by $28 million for the six months ended June 30, 2019 as compared to the same period in the prior year. We expect volatility in our working capital components to continue due to seasonal changes in working capital throughout the year. |
• | We expect to spend approximately $130 million on capital expenditures during 2019. Our future expenditures include certain EHS maintenance and upgrades, periodic maintenance and repairs applicable to major units of manufacturing facilities; expansions of our existing facilities or construction of new facilities; certain cost reduction projects; and the cost to transfer specialty and differentiated manufacturing from Pori, Finland to other sites within our manufacturing network. We expect to fund this spending with cash on hand as well as cash provided by operations and borrowings. |
• | During the six months ended June 30, 2019, we made contributions to our pension and postretirement benefit plans of $12 million. During the remainder of 2019, we expect to contribute an additional amount of approximately $23 million to these plans. |
• | We are involved in a number of cost reduction programs for which we have established restructuring accruals. As of June 30, 2019, we had $19 million of accrued restructuring costs of which $8 million is classified as current. We expect to incur additional restructuring and plant closing costs of approximately $28 million, including $9 million for noncash charges, and pay approximately $16 million through the remainder of 2019. For further discussion of these plans and the costs involved, see "Note 7. Restructuring, Impairment, and Plant Closing and Transition Costs" of the notes to unaudited condensed consolidated financial statements. |
• | In the fourth quarter of 2018 we commenced additional cost reduction initiatives which are expected to provide approximately $40 million of annual adjusted EBITDA benefit compared to 2018. We expect actions will be complete in 2020, ending the year at the full run-rate level. |
• | On January 30, 2017, our TiO2 manufacturing facility in Pori, Finland, experienced fire damage. We are in the process of closing our Pori, Finland, TiO2 manufacturing facility and transferring the production of specialty and differentiated product grades to other sites within our existing network. In the first half of 2019, we had capital expenditures of $35 million related to project wind-down and closure costs. We intend to operate the Pori facility at reduced production rates through the transition period, which is expected to last through at least 2022, subject to economic and other factors. |
• | We have $734 million in aggregate principal outstanding consisting of $371 million of 5.75% Senior Notes due 2025, and a $363 million Term Loan Facility. In addition we have $24 million in aggregate principal outstanding under our ABL Facility. See further discussion under "Financing Arrangements." |
(Dollars in millions) | June 30, 2019 | December 31, 2018 | Increase (Decrease) | Percent Change | ||||||||||
Cash and cash equivalents | $ | 50 | $ | 165 | $ | (115 | ) | (70 | %) | |||||
Accounts receivable, net | 423 | 351 | 72 | 21 | % | |||||||||
Inventories | 508 | 538 | (30 | ) | (6 | %) | ||||||||
Prepaid expenses | 9 | 20 | (11 | ) | (55 | %) | ||||||||
Other current assets | 66 | 51 | 15 | 29 | % | |||||||||
Total current assets | $ | 1,056 | $ | 1,125 | $ | (69 | ) | (6 | %) | |||||
Accounts payable | 299 | 382 | (83 | ) | (22 | %) | ||||||||
Accounts payable to affiliates | 14 | 18 | (4 | ) | (22 | %) | ||||||||
Accrued liabilities | 116 | 135 | (19 | ) | (14 | %) | ||||||||
Current operating lease liability | 9 | — | 9 | NM | ||||||||||
Current portion of debt | 32 | 8 | 24 | 300 | % | |||||||||
Total current liabilities | $ | 470 | $ | 543 | $ | (73 | ) | (13 | %) | |||||
Working capital | $ | 586 | $ | 582 | $ | 4 | 1 | % |
• | Cash and cash equivalents decreased by $115 million primarily due to outflows of $50 million from operating activities, and $82 million from investing activities, partially offset by inflows of $17 million provided by financing activities. |
• | Accounts receivable increased by $72 million primarily due to seasonally higher revenues in the second quarter of 2019 compared to the fourth quarter of 2018. |
• | Inventory decreased $30 million reflecting lower levels of finished goods at June 30, 2019 as compared to the prior year end as a result of seasonality and efforts across the organization to manage inventory levels. |
• | Accounts payable decreased by $83 million primarily as a result of the timing of cash payments versus receipt of raw materials and a $44 million reduction in capital accruals. |
• | Current portion of debt increased by $24 million primarily due to the issuance of short-term debt in the second quarter of 2019 compared to the fourth quarter of 2018. |
• | Accrued liabilities decreased by $19 million primarily due to a reduction in accrued interest and accrued payroll which is a reflection of the timing of the payments versus the amounts accrued at June 30, 2019 as compared to December 31, 2018. |
• | Current operating lease liability increased by $9 million as a result of the adoption of ASU No. 2016-02, Leases (Topic 842) in the first quarter of 2019. See "Note 2. Recently Issued Accounting Pronouncements" of the notes to unaudited condensed consolidated financial statements for further discussion of the implementation of this accounting standard. |
Incorporated by Reference | ||||||||
Exhibit Number | Description | Schedule Form | Exhibit | Filing Date | ||||
10.1 | 8-K | 10.1 | June 24, 2019 | |||||
31.1* | ||||||||
31.2* | ||||||||
32.1* | ||||||||
32.2* | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH* | XBRL Taxonomy Extension Schema Document | |||||||
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF* | XBRL Taxonomy Definition Linkbase Document | |||||||
101.LAB* | XBRL Taxonomy Extension Labels Linkbase Document | |||||||
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document |
VENATOR MATERIALS PLC (Registrant) | |||
Date: | August 6, 2019 | By: | /s/ Kurt D. Ogden |
Kurt D. Ogden | |||
Executive Vice President and Chief Financial Officer | |||
Date: | August 6, 2019 | By: | /s/ Stephen Ibbotson |
Stephen Ibbotson | |||
Vice President and Controller |
/s/ Simon Turner | |
Simon Turner | |
Chief Executive Officer |
/s/ Kurt Ogden | |
Kurt Ogden | |
Chief Financial Officer |
/s/ Simon Turner | |
Simon Turner | |
Chief Executive Officer | |
August 6, 2019 |
/s/ Kurt Ogden | |
Kurt Ogden | |
Chief Financial Officer | |
August 6, 2019 |
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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
|||
---|---|---|---|---|---|
Accounts receivable, allowance for doubtful accounts | $ 5 | $ 5 | |||
Ordinary shares, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Ordinary shares, authorized (in shares) | 200,000,000 | 200,000,000 | |||
Ordinary shares, issued (in shares) | 107,000,000 | 106,000,000 | |||
Ordinary shares, outstanding (in shares) | 107,000,000 | 106,000,000 | |||
Variable Interest Entity | |||||
Cash and cash equivalents | [1] | $ 50 | $ 165 | ||
Accounts receivable, net | [1] | 423 | 351 | ||
Inventories | [1] | 508 | 538 | ||
Property, plant and equipment, net | [1] | 965 | 994 | ||
Intangible assets, net | [1] | 23 | 16 | ||
Accounts payable | [1] | 299 | 382 | ||
Accrued liabilities | [1] | 116 | 135 | ||
Current portion of debt | [1] | 32 | 8 | ||
Consolidated VIE's | |||||
Variable Interest Entity | |||||
Cash and cash equivalents | 3 | 5 | |||
Accounts receivable, net | 4 | 5 | |||
Inventories | 1 | 1 | |||
Property, plant and equipment, net | 5 | 5 | |||
Intangible assets, net | 13 | 14 | |||
Accounts payable | 1 | 1 | |||
Accrued liabilities | 3 | 4 | |||
Current portion of debt | $ 2 | $ 2 | |||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Income Statement [Abstract] | ||||
Trade sales, services and fees, net | $ 578 | $ 626 | $ 1,140 | $ 1,248 |
Cost of goods sold | 511 | 193 | 997 | 647 |
Operating expenses: | ||||
Selling, general and administrative | 45 | 56 | 93 | 110 |
Restructuring, impairment, and plant closing and transition costs | 0 | 136 | 12 | 145 |
Other operating (income) expense, net | 0 | (10) | 7 | (13) |
Total operating expenses | 45 | 182 | 112 | 242 |
Operating income | 22 | 251 | 31 | 359 |
Interest expense | (13) | (14) | (27) | (27) |
Interest income | 3 | 4 | 6 | 7 |
Other income | 1 | 2 | 2 | 4 |
Income before income taxes | 13 | 243 | 12 | 343 |
Income tax benefit (expense) | 9 | (45) | 8 | (65) |
Net income | 22 | 198 | 20 | 278 |
Net income attributable to noncontrolling interests | (1) | (2) | (2) | (4) |
Net income attributable to Venator | $ 21 | $ 196 | $ 18 | $ 274 |
Per Share Data: | ||||
Income attributable to Venator Materials PLC ordinary shareholders, basic (in dollars per share) | $ 0.20 | $ 1.84 | $ 0.17 | $ 2.58 |
Income attributable to Venator Materials PLC ordinary shareholders, diluted (in dollars per share) | $ 0.20 | $ 1.84 | $ 0.17 | $ 2.57 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 22 | $ 198 | $ 20 | $ 278 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustment | (13) | (115) | (2) | (58) |
Pension and other postretirement benefits adjustments | 4 | 4 | 8 | 7 |
Hedging instruments | 1 | 12 | 5 | 5 |
Total other comprehensive (loss) income, net of tax | (8) | (99) | 11 | (46) |
Comprehensive income | 14 | 99 | 31 | 232 |
Comprehensive income attributable to noncontrolling interest | (1) | (2) | (2) | (4) |
Comprehensive income attributable to Venator | $ 13 | $ 97 | $ 29 | $ 228 |
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Millions, $ in Millions |
Total |
Ordinary Shares |
Additional Paid-in Capital |
Retained Deficit |
Accumulated Other Comprehensive Loss |
Noncontrolling Interest in Subsidiaries |
---|---|---|---|---|---|---|
Balance at the beginning of the period (shares) at Dec. 31, 2017 | 106 | |||||
Balance at the beginning of the period at Dec. 31, 2017 | $ 1,105 | $ 0 | $ 1,311 | $ 67 | $ (283) | $ 10 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 80 | 78 | 2 | |||
Other comprehensive income, net of tax | 53 | 53 | ||||
Dividends paid to noncontrolling interests | (2) | (2) | ||||
Activity related to stock plans | 1 | 1 | ||||
Balance at the end of the period (shares) at Mar. 31, 2018 | 106 | |||||
Balance at the end of the period at Mar. 31, 2018 | 1,237 | $ 0 | 1,312 | 145 | (230) | 10 |
Balance at the beginning of the period (shares) at Dec. 31, 2017 | 106 | |||||
Balance at the beginning of the period at Dec. 31, 2017 | 1,105 | $ 0 | 1,311 | 67 | (283) | 10 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 278 | |||||
Other comprehensive income, net of tax | (46) | (46) | ||||
Balance at the end of the period (shares) at Jun. 30, 2018 | 106 | |||||
Balance at the end of the period at Jun. 30, 2018 | 1,334 | $ 0 | 1,313 | 341 | (329) | 9 |
Balance at the beginning of the period (shares) at Mar. 31, 2018 | 106 | |||||
Balance at the beginning of the period at Mar. 31, 2018 | 1,237 | $ 0 | 1,312 | 145 | (230) | 10 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 198 | 196 | 2 | |||
Other comprehensive income, net of tax | (99) | (99) | ||||
Dividends paid to noncontrolling interests | (3) | (3) | ||||
Activity related to stock plans | 1 | 1 | ||||
Balance at the end of the period (shares) at Jun. 30, 2018 | 106 | |||||
Balance at the end of the period at Jun. 30, 2018 | 1,334 | $ 0 | 1,313 | 341 | (329) | 9 |
Balance at the beginning of the period (shares) at Dec. 31, 2018 | 106 | |||||
Balance at the beginning of the period at Dec. 31, 2018 | 855 | $ 0 | 1,316 | (96) | (373) | 8 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | (2) | (3) | 1 | |||
Other comprehensive income, net of tax | 19 | 19 | ||||
Dividends paid to noncontrolling interests | (1) | (1) | ||||
Activity related to stock plans (shares) | 1 | |||||
Activity related to stock plans | 1 | 1 | ||||
Balance at the end of the period (shares) at Mar. 31, 2019 | 107 | |||||
Balance at the end of the period at Mar. 31, 2019 | 872 | $ 0 | 1,317 | (99) | (354) | 8 |
Balance at the beginning of the period (shares) at Dec. 31, 2018 | 106 | |||||
Balance at the beginning of the period at Dec. 31, 2018 | 855 | $ 0 | 1,316 | (96) | (373) | 8 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 20 | |||||
Other comprehensive income, net of tax | 11 | 11 | ||||
Balance at the end of the period (shares) at Jun. 30, 2019 | 107 | |||||
Balance at the end of the period at Jun. 30, 2019 | 886 | $ 0 | 1,319 | (78) | (362) | 7 |
Balance at the beginning of the period (shares) at Mar. 31, 2019 | 107 | |||||
Balance at the beginning of the period at Mar. 31, 2019 | 872 | $ 0 | 1,317 | (99) | (354) | 8 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 22 | 21 | 1 | |||
Other comprehensive income, net of tax | (8) | (8) | ||||
Dividends paid to noncontrolling interests | (2) | (2) | ||||
Activity related to stock plans (shares) | 0 | |||||
Activity related to stock plans | 2 | 2 | ||||
Balance at the end of the period (shares) at Jun. 30, 2019 | 107 | |||||
Balance at the end of the period at Jun. 30, 2019 | $ 886 | $ 0 | $ 1,319 | $ (78) | $ (362) | $ 7 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Operating Activities: | ||
Net income | $ 20 | $ 278 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 55 | 69 |
Deferred income taxes | (12) | 28 |
Noncash restructuring and impairment charges | (2) | 133 |
Other, net | 8 | 2 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (77) | (56) |
Inventories | 30 | (46) |
Prepaid expenses | 10 | 9 |
Other current assets | (2) | (14) |
Other noncurrent assets | 0 | (1) |
Accounts payable | (44) | (17) |
Accrued liabilities | (18) | (59) |
Other noncurrent liabilities | (18) | (21) |
Net cash (used in) provided by operating activities | (50) | 305 |
Investing Activities: | ||
Capital expenditures | (83) | (167) |
Cash received from unconsolidated affiliates | 20 | 14 |
Investment in unconsolidated affiliates | (24) | (9) |
Cash received from notes receivable | 6 | 0 |
Other, net | (1) | 0 |
Net cash used in investing activities | (82) | (162) |
Financing Activities: | ||
Net borrowings under ABL Facility | 24 | 0 |
Repayment of third-party debt | (2) | (9) |
Dividends paid to noncontrolling interests | (3) | (5) |
Other, net | 2 | 0 |
Net cash provided by (used in) financing activities | 17 | (14) |
Effect of exchange rate changes on cash | 0 | (13) |
Net change in cash and cash equivalents | (115) | 116 |
Cash and cash equivalents at beginning of period | 165 | 238 |
Cash and cash equivalents at end of period | 50 | 354 |
Supplemental cash flow information: | ||
Cash paid for interest | 23 | 25 |
Cash paid for income taxes | 3 | 20 |
Supplemental disclosure of noncash activities: | ||
Capital expenditures included in accounts payable as of June 30, 2019 and 2018, respectively | $ 26 | $ 49 |
General, Description of Business, Recent Developments and Basis of Presentation |
6 Months Ended |
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Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General, Description of Business, Recent Developments and Basis of Presentation | Note 1. General, Description of Business, Recent Developments and Basis of Presentation Description of Business Venator became an independent publicly traded company following our IPO and separation from Huntsman Corporation in August 2017. Venator operates in two segments: Titanium Dioxide and Performance Additives. The Titanium Dioxide segment primarily manufactures and sells TiO2, and operates eight TiO2 manufacturing facilities across the globe. The Performance Additives segment manufactures and sells functional additives, color pigments, timber treatment and water treatment chemicals. This segment operates 16 manufacturing and processing facilities globally. Basis of Presentation Our unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP" or "U.S. GAAP") and in management’s opinion reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of results of operations, comprehensive income, financial position and cash flows for the periods presented. Results for interim periods are not necessarily indicative of those to be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated and combined financial statements and notes to consolidated and combined financial statements included in the Annual Report on Form 10‑K for the year ended December 31, 2018 for our Company. In the notes to unaudited condensed consolidated financial statements, all dollar and share amounts, except per share amounts, in tabulations are in millions unless otherwise indicated. Recent Developments |
Recently Issued Accounting Pronouncements |
6 Months Ended |
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Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | Note 2. Recently Issued Accounting Pronouncements Accounting Pronouncements Adopted During the Period Effective January 1, 2019, we adopted Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) using the modified retrospective approach which applies the provisions of the standard at the effective date without adjusting the comparative periods presented. The adoption of this ASU did not result in a cumulative effect adjustment to the opening balance of retained earnings. This ASU requires substantially all leases to be recognized on the balance sheet as right-of-use assets ("ROU assets") and lease obligations. Additional qualitative and quantitative disclosures are also required. Adoption of the new standard resulted in the recording of an operating lease ROU asset of $47 million and a lease liability of $49 million. The adoption of this ASU did not have a material impact on our condensed consolidated statements of operations or cash flows. Our accounting for finance leases remained substantially unchanged. We elected the following optional practical expedients allowed under the ASU: (i) we applied the package of practical expedients permitting entities not to reassess under the new standard our prior conclusions about lease identification, classification or initial direct costs for any leases existing prior to the effective date; (ii) we elected to account for lease and associated non-lease components as a single lease component for all asset classes with the exception of buildings and (iii) we do not recognize ROU assets and related lease obligations with lease terms of 12 months or less from the commencement date. In February 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220). This standard provides an option to reclassify stranded tax effects within accumulated other comprehensive income (loss) to retained earnings due to the U.S. federal corporate income tax rate change in the Tax Cuts and Jobs Act of 2017 (the "Tax Act"). This standard is effective for interim and annual reporting periods beginning after December 15, 2018. The adoption of this ASU did not have a material impact on our unaudited condensed consolidated statement of comprehensive income. Accounting Pronouncements Pending Adoption in Future Periods In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The amendments in this ASU replace the incurred loss impairment methodology with a methodology that reflects expected credit losses. This update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The new standard is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for fiscal years beginning after December 15, 2018. We have completed our assessment and we do not anticipate this will have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20). The amendments in this ASU add, remove, and clarify disclosure requirements related to defined benefit pension and other postretirement plans. This ASU eliminates the requirement to disclose the amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost over the next year. The ASU also removes the disclosure requirements for the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost and the benefit obligation for postretirement health care benefits. This standard is effective for fiscal years ending after December 15, 2020, and must be applied on a retrospective basis. Since the ASU is related to disclosure requirements only, this adoption will not have a material impact on our consolidated financial statements.
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Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Note 3. Leases We have leases for warehouses, office space, land, office equipment, production equipment and automobiles. ROU assets and lease obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term. Operating lease ROU assets and liabilities are included in operating lease right-of-use assets, current operating lease liabilities, and operating lease liabilities on our condensed consolidated balance sheet. Finance leases ROU assets are included in property, plant and equipment, net, while finance lease liabilities are included in other non-current liabilities. As the implicit rate is not readily determinable in most of our lease arrangements, we use our incremental borrowing rate based on information available at the commencement date in order to determine the net present value of lease payments. We give consideration to our recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating our incremental borrowing rates. We have lease agreements that contain lease and non-lease components. We determine if an arrangement is a lease or contains a lease at inception. Certain leases contain renewal options that can extend the term of the lease for one year or more. Our leases have remaining lease terms of up to 93 years, some of which include options to extend the lease term for up to 20 years. Options are recognized as part of our ROU assets and lease liabilities when it is reasonably certain that we will extend that option. Sublease arrangements and leases with residual value guarantees, sale leaseback terms or material restrictive covenants, are immaterial. Lease payments include fixed and variable lease components. Variable components are derived from usage or market-based indices, such as the consumer price index. As of June 30, 2019, we do not have leases initiated but not yet commenced which are expected to commence during the remainder of 2019. The components of lease expense were as follows:
Supplemental balance sheet information related to leases was as follows:
Cash paid for amounts included in the present value of operating lease liabilities were as follows:
Maturities of lease liabilities were as follows:
Disclosures related to periods prior to adoption of the New Lease Standard The total expense recorded under operating lease agreements in the consolidated and combined statements of operations was $16 million for the year ended December 31, 2018. Future minimum lease payments under noncancelable operating leases as of December 31, 2018 were as follows:
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Leases | Note 3. Leases We have leases for warehouses, office space, land, office equipment, production equipment and automobiles. ROU assets and lease obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term. Operating lease ROU assets and liabilities are included in operating lease right-of-use assets, current operating lease liabilities, and operating lease liabilities on our condensed consolidated balance sheet. Finance leases ROU assets are included in property, plant and equipment, net, while finance lease liabilities are included in other non-current liabilities. As the implicit rate is not readily determinable in most of our lease arrangements, we use our incremental borrowing rate based on information available at the commencement date in order to determine the net present value of lease payments. We give consideration to our recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating our incremental borrowing rates. We have lease agreements that contain lease and non-lease components. We determine if an arrangement is a lease or contains a lease at inception. Certain leases contain renewal options that can extend the term of the lease for one year or more. Our leases have remaining lease terms of up to 93 years, some of which include options to extend the lease term for up to 20 years. Options are recognized as part of our ROU assets and lease liabilities when it is reasonably certain that we will extend that option. Sublease arrangements and leases with residual value guarantees, sale leaseback terms or material restrictive covenants, are immaterial. Lease payments include fixed and variable lease components. Variable components are derived from usage or market-based indices, such as the consumer price index. As of June 30, 2019, we do not have leases initiated but not yet commenced which are expected to commence during the remainder of 2019. The components of lease expense were as follows:
Supplemental balance sheet information related to leases was as follows:
Cash paid for amounts included in the present value of operating lease liabilities were as follows:
Maturities of lease liabilities were as follows:
Disclosures related to periods prior to adoption of the New Lease Standard The total expense recorded under operating lease agreements in the consolidated and combined statements of operations was $16 million for the year ended December 31, 2018. Future minimum lease payments under noncancelable operating leases as of December 31, 2018 were as follows:
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Revenue |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Note 4. Revenue We generate substantially all of our revenues through sales of inventory in the open market and via long-term supply agreements. At contract inception, we assess the goods promised in our contracts and identify a performance obligation for each promise to transfer to the customer a good that is distinct. In substantially all cases, a contract has a single performance obligation to deliver a promised good to the customer. Revenue is recognized when the performance obligations under the terms of our contracts are satisfied. Generally, this occurs at the time of shipping, at which point the control of the goods transfers to the customer. Further, in determining whether control has transferred, we consider if there is a present right to payment and legal title, along with risks and rewards of ownership having transferred to the customer. Revenue is measured as the amount of consideration we expect to receive in exchange for transferred goods. Sales, value added, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Incidental items that are immaterial in the context of the contract are recognized as expense. We have elected to account for all shipping and handling activities as fulfillment costs. We recognize these costs for shipping and handling when control over products have transferred to the customer as an expense in cost of goods sold. We have also elected to expense commissions when incurred as the amortization period of the commission asset that we would have otherwise recognized is less than one year. The following table disaggregates our revenue by major geographical region for the three and six months ended June 30, 2019 and 2018:
The following table disaggregates our revenue by major product line for the three and six months ended June 30, 2019 and 2018:
The amount of consideration we receive and revenue we recognize is based upon the terms stated in the sales contract, which may contain variable consideration such as discounts or rebates. We also give our customers a limited right to return products that have been damaged, do not satisfy their specifications, or for other specific reasons. Payment terms on product sales to our customers typically range from 30 days to 90 days. Although certain exceptions exist where standard payment terms are exceeded, these instances are infrequent and do not exceed one year. Discounts are allowed for some customers for early payment or if certain volume commitments are met. As our standard payment terms are less than one year, we have elected to not assess whether a contract has a significant financing component. In order to estimate the applicable variable consideration at the time of revenue recognition, we use historical and current trend information to estimate the amount of discounts, rebates, or returns to which customers are likely to be entitled. Historically, actual discount or rebate adjustments relative to those estimated and accrued at the point of which revenue is recognized have not materially differed.
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Inventories |
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Inventories | Note 5. Inventories Inventories are stated at the lower of cost or market, with cost determined using first-in, first-out and average cost methods for different components of inventory. Inventories at June 30, 2019 and December 31, 2018 consisted of the following:
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Variable Interest Entities |
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Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | Note 6. Variable Interest Entities We evaluate our investments and transactions to identify variable interest entities for which we are the primary beneficiary. We hold a variable interest in the following joint ventures for which we are the primary beneficiary:
Creditors of these entities have no recourse to Venator’s general credit. As the primary beneficiary of these variable interest entities at June 30, 2019, the joint ventures’ assets, liabilities and results of operations are included in Venator’s unaudited condensed consolidated financial statements. The revenues, income before income taxes and net cash provided by operating activities for our variable interest entities for the three and six months ended June 30, 2019 and 2018 are as follows:
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Restructuring, Impairment, and Plant Closing and Transition Costs |
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Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring, Impairment, and Plant Closing and Transition Costs | Note 7. Restructuring, Impairment, and Plant Closing and Transition Costs Venator has initiated various restructuring programs in an effort to reduce operating costs and maximize operating efficiency. Restructuring Activities Company-wide Restructuring In January 2019, we implemented a plan to reduce costs and improve efficiency of certain company-wide functions. As part of the program, we recorded restructuring expense of $1 million and $4 million for the three and six months ended June 30, 2019, all of which related to workforce reductions. We expect that additional costs related to this plan will be immaterial. Titanium Dioxide Segment In July 2016, we implemented a plan to close our Umbogintwini, South Africa Titanium Dioxide manufacturing facility. As part of the program, we recorded restructuring expense of $1 million, each, for the three and six months ended June 30, 2019 and $1 million and $2 million for the three and six months ended June 30, 2018, respectively, all of which related to plant shutdown costs. We expect further charges as part of this program to be immaterial. In March 2017, we implemented a plan to close the white end finishing and packaging operation of our Titanium Dioxide manufacturing facility at our Calais, France site. The announced plan follows the 2015 closure of the black end manufacturing operations and would result in the closure of the entire facility. As part of the program, we recorded restructuring expense of $1 million and $2 million for the three and six months ended June 30, 2019, respectively, and $4 million and $9 million for the three and six months ended June 30, 2018, respectively, all of which related to plant shutdown costs. We expect to incur additional plant shutdown costs of approximately $5 million through 2020. In September 2018, we implemented a plan to close our Pori, Finland Titanium Dioxide manufacturing facility. As part of the program, we recorded restructuring gain of $3 million for the three months ended June 30, 2019, of which a gain of $14 million related to early settlement of contractual obligation was partially offset by $8 million of accelerated depreciation, $2 million related to employee benefits, and $1 million related to plant shutdown costs. This restructuring gain consists of a noncash gain of $6 million partially offset by $3 million of cash expense. We recorded restructuring expense of $3 million for the six months ended June 30, 2019, of which a gain of $14 million related to early settlement of contractual obligation was offset by $11 million of accelerated depreciation, $4 million related to employee benefits, and $2 million related to plant shutdown costs. This restructuring expense consists of $6 million of cash expense and a noncash gain, net, of $3 million. We expect to incur additional charges of approximately $112 million through the end of 2024, of which $24 million relates to accelerated depreciation, $78 million relates to plant shut down costs, $8 million relates to other employee costs and $2 million related to the write off of other assets. Future charges consist of $26 million of noncash costs and $86 million of cash costs. Performance Additives Segment In September 2017, we implemented a plan to close our Performance Additives manufacturing facilities in St. Louis, Missouri and Easton, Pennsylvania. As part of the program, we recorded restructuring expense of nil for the three and six months ended June 30, 2019. We recorded restructuring expense of $5 million and $8 million for the three and six months ended June 30, 2018, respectively. We do not expect to incur any additional charges as part of this program. In August 2018, we implemented a plan to close our Performance Additives manufacturing site in Beltsville, Maryland. As part of the program, we recorded restructuring expense of $1 million and $2 million for the three and six months ended June 30, 2019, all of which related to accelerated depreciation. We do not expect to incur any additional charges as part of this program. In May 2018, we implemented a plan to close portions of our Performance Additives manufacturing facility in Augusta, Georgia. As part of the program, we recorded restructuring expense of nil for the three and six months ended June 30, 2019. We recorded restructuring expense of $127 million for the three and six months ended June 30, 2018, of which $125 million related to accelerated depreciation, $1 million related to other noncash charges and $1 million related to cash charges. We do not expect to incur any additional charges as part of this program. Accrued Restructuring and Plant Closing and Transition Costs As of June 30, 2019 and December 31, 2018, accrued restructuring and plant closing and transition costs by type of cost and year of initiative consisted of the following:
Our restructuring accruals are all related to our Titanium Dioxide segment. Restructuring, Impairment and Plant Closing and Transition Costs Details with respect to major cost type of restructuring charges and impairment of assets for the three and six months ended June 30, 2019 and 2018 by initiative are provided below:
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Note 8. Debt Outstanding debt, net of debt issuance costs of $14 million and $13 million as of June 30, 2019 and December 31, 2018, respectively, consisted of the following:
The estimated fair value of the Senior Notes was $345 million and $300 million as of June 30, 2019 and December 31, 2018, respectively. The estimated fair value of the Term Loan Facility was $365 million and $355 million as of June 30, 2019 and December 31, 2018, respectively. The estimated fair values of the Senior Notes and the Term Loan Facility are based upon quoted market prices (Level 1). We have $24 million in aggregate principal outstanding under our ABL Facility. The fair value of our borrowings under the ABL Facility approximates the carrying amount due to the short term nature of the borrowing. The weighted average interest rate on our outstanding balances under the Senior Notes and Term Loan Facility as of June 30, 2019 was approximately 5%. Senior Notes On July 14, 2017, our subsidiaries Venator Finance S.à.r.l. and Venator Materials LLC (the "Issuers") entered into an indenture in connection with the issuance of the Senior Notes. The Senior Notes are general unsecured senior obligations of the Issuers and are guaranteed on a general unsecured senior basis by Venator and certain of Venator’s subsidiaries. The indenture related to the Senior Notes imposes certain limitations on the ability of Venator and certain of its subsidiaries to, among other things, incur additional indebtedness secured by any principal properties, incur indebtedness of non-guarantor subsidiaries, enter into sale and leaseback transactions with respect to any principal properties and consolidate or merge with or into any other person or lease, sell or transfer all or substantially all of its properties and assets. The Senior Notes bear interest of 5.75% per year payable semi-annually and will mature on July 15, 2025. The Issuers may redeem the Senior Notes in whole or in part at any time prior to July 15, 2020 at a price equal to 100% of the principal amount thereof plus accrued and unpaid interest, if any, and an early redemption premium, calculated on an agreed percentage of the outstanding principal amount, providing compensation on a portion of foregone future interest payables. The Senior Notes will be redeemable in whole or in part at any time on or after July 15, 2020 at the redemption prices set forth in the indenture, plus accrued and unpaid interest, if any, up to, but not including, the redemption date. In addition, at any time prior to July 15, 2020, the Issuers may redeem up to 40% of the aggregate principal amount of the Senior Notes with an amount not greater than the net cash proceeds of certain equity offerings or contributions to Venator’s equity at 105.75% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but not including, the redemption date. Upon the occurrence of certain change of control events (other than the separation), holders of the Venator Notes will have the right to require that the Issuers purchase all or a portion of such holder’s Senior Notes in cash at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest, if any, to the date of repurchase. Senior Credit Facilities On August 8, 2017, we entered into the Senior Credit Facilities that provide for first lien senior secured financing of up to $675 million, consisting of:
The Term Loan Facility amortizes in aggregate annual amounts equal to 1% of the original principal amount of the Term Loan Facility and is paid quarterly. On June 20, 2019 the ABL facility was increased to an aggregate principal amount of up to $350 million, with no change to the maturity dates. Availability to borrow the $350 million of commitments under the ABL Facility is subject to a borrowing base calculation comprised of accounts receivable and inventory in the U.S., Canada, the U.K., Germany and accounts receivable in France and Spain, that fluctuate and may be further impacted by the lenders’ discretionary ability to impose reserves and availability blocks that might otherwise incrementally increase borrowing availability. As a result, the aggregate amount available for extensions of credit under the ABL Facility at any time is the lesser of $350 million and the borrowing base calculated according to the formula described above minus the aggregate amount of extensions of credit outstanding under the ABL Facility at such time. Borrowings under the Term Loan Facility bear interest at a rate equal to, at Venator’s option, either (a) a London Interbank Offering Rate ("LIBOR") based rate determined by reference to the costs of funds for Eurodollar deposits for the interest period relevant to such borrowing, adjusted for certain additional costs subject to an interest rate floor to be agreed or (b) a base rate determined by reference to the highest of (i) the rate of interest per annum determined from time to time by JPMorgan Chase Bank, N.A. as its prime rate in effect at its principal office in New York City, (ii) the federal funds rate plus 0.50% per annum and (iii) the one-month adjusted LIBOR plus 1.00% per annum, in each case plus an applicable margin to be agreed upon. Borrowings under the ABL Facility bear interest at a variable rate equal to an applicable margin based on the applicable quarterly average excess availability under the ABL Facility plus either a LIBOR or a base rate. The applicable margin percentage is calculated and established once every three calendar months and varies from 150 to 200 basis points for LIBOR loans depending on the quarterly average excess availability under the ABL Facility for the immediately preceding three-month period. Guarantees All obligations under the Senior Credit Facilities are guaranteed by Venator and substantially all of our subsidiaries (the "Guarantors") and are secured by substantially all of the assets of Venator and the Guarantors, in each case subject to certain exceptions. Lien priority as between the Term Loan Facility and the ABL Facility with respect to the collateral will be governed by an intercreditor agreement.
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Derivative Instruments and Hedging Activities |
6 Months Ended |
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Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Note 9. Derivative Instruments and Hedging Activities To reduce cash flow volatility from foreign currency fluctuations, we enter into forward and swap contracts to hedge portions of cash flows of certain foreign currency transactions. We do not use derivative financial instruments for trading or speculative purposes. Cross-Currency Swaps In December 2017, we entered into three cross-currency swap agreements to convert a portion of our intercompany fixed-rate, U.S. dollar denominated notes, including the semi-annual interest payments and the payment of remaining principal at maturity, to a fixed-rate, Euro denominated debt. The economic effect of the swap agreement was to eliminate the uncertainty of the cash flows in U.S. Dollars associated with the notes by fixing the principle amount at €169 million with a fixed annual rate of 3.43%. These hedges have been designated as cash flow hedges and the critical terms of the cross-currency swap agreements correspond to the underlying hedged item. These swaps mature in July 2022, which is our best estimate of the repayment date of these intercompany loans. The amount and timing of the semi-annual principle payments under the cross-currency swap also correspond with the terms of the intercompany loans. Gains and losses from these hedges offset the changes in the value of interest and principal payments as a result of changes in foreign exchange rates. We formally assessed the hedging relationship at the inception of the hedge in order to determine whether the derivatives that are used in the hedging transactions are highly effective in offsetting cash flows of the hedged item and we will continue to assess the relationship on an ongoing basis. We use the hypothetical derivative method in conjunction with regression analysis to measure effectiveness of our cross-currency swap agreement. The changes in the fair value of the swaps are deferred in other comprehensive income and subsequently recognized in other income in the unaudited condensed consolidated statement of operations when the hedged item impacts earnings. Cash flows related to our cross-currency swap that relate to our periodic interest settlement will be classified as operating activities and the cash flows that relates to principal balances will be designated as financing activities. The fair value of these hedges was $11 million and $6 million at June 30, 2019 and December 31, 2018, respectively, and was recorded as other noncurrent assets on our unaudited condensed consolidated balance sheets. We estimate the fair values of our cross-currency swaps by taking into consideration valuations obtained from a third-party valuation service that utilizes an income-based industry standard valuation model for which all significant inputs are observable either directly or indirectly. These inputs include foreign currency exchange rates, credit default swap rates and cross-currency basis swap spreads. The cross-currency swap has been classified as Level 2 because the fair value is based upon observable market-based inputs or unobservable inputs that are corroborated by market data. For the six months ended June 30, 2019 and 2018, the change in accumulated other comprehensive loss associated with these cash flow hedging activities was a gain of $5 million, each. As of June 30, 2019, accumulated other comprehensive loss of nil is expected to be reclassified to earnings during the next twelve months. The actual amount that will be reclassified to earnings over the next twelve months may vary from this amount due to changing market conditions. We would be exposed to credit losses in the event of nonperformance by a counterparty to our derivative financial instruments. We continually monitor our position and the credit rating of our counterparties, and we do not anticipate nonperformance by the counterparties. Forward Currency Contracts Not Designated as Hedges We transact business in various foreign currencies and we enter into currency forward contracts to offset the risks associated with foreign currency exposure. At June 30, 2019 and December 31, 2018, we had $79 million and $89 million, respectively, notional amount (in U.S. dollar equivalents) outstanding in foreign currency contracts with a term of approximately one month. The contracts are valued using observable market rates (Level 2).
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Income Taxes |
6 Months Ended |
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Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10. Income Taxes Venator uses the asset and liability method of accounting for income taxes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial and tax reporting purposes. We evaluate deferred tax assets to determine whether it is more likely than not that they will be realized. Valuation allowances are reviewed on a tax jurisdiction basis to analyze whether there is sufficient positive or negative evidence to support a change in judgment about the realizability of the related deferred tax assets for each jurisdiction. These conclusions require significant judgment. In evaluating the objective evidence that historical results provide, we consider the cyclicality of Venator and cumulative income or losses during the applicable period. Cumulative losses incurred over the period limits our ability to consider other subjective evidence such as our projections for the future. Changes in expected future income in applicable tax jurisdictions could affect the realization of deferred tax assets in those jurisdictions. We recorded income tax benefit of $9 million and income tax expense of $45 million, respectively, for the three months ended June 30, 2019 and 2018, respectively, and income tax benefit of $8 million and income tax expense of $65 million for the six months ended June 30, 2019 and 2018, respectively. Our tax expense is significantly affected by the mix of income and losses in tax jurisdictions in which we operate, as impacted by the presence of valuation allowances in certain tax jurisdictions. For U.S. federal income tax purposes Huntsman recognized a gain as a result of the IPO and the separation to the extent the fair market value of the assets associated with our U.S. businesses exceeded the basis of such assets for U.S. federal income tax purposes at the time of the separation. As a result of such gain recognized, the basis of the assets associated with our U.S. businesses was increased. This basis step up gave rise to a deferred tax asset of $36 million that we recognized for the year ended December 31, 2017. Pursuant to the Tax Matters Agreement dated August 7, 2017, entered into by and among Venator Materials PLC and Huntsman (the "Tax Matters Agreement") at the time of the separation, we are required to make a future payment to Huntsman for any actual U.S. federal income tax savings we recognize as a result of any such basis increase for tax years through December 31, 2028. It is currently estimated (based on a value of our U.S. businesses derived from the IPO price of our ordinary shares and current tax rates) that the aggregate future payments required by this provision are expected to be approximately $34 million. As of June 30, 2019 and December 31, 2018, this "Noncurrent payable to affiliates" was $34 million, each, on our unaudited condensed consolidated balance sheets. Moreover, any subsequent adjustment asserted by U.S. taxing authorities could increase the amount of gain recognized and the corresponding basis increase, and could result in a higher liability for us under the Tax Matters Agreement.
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Earnings Per Share |
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Earnings Per Share | Note 11. Earnings Per Share Basic earnings per share excludes dilution and is computed by dividing net income attributable to Venator ordinary shareholders by the weighted average number of shares outstanding during the period. Diluted earnings per share reflects all potential dilutive ordinary shares outstanding during the period and is computed by dividing net income available to Venator ordinary shareholders by the weighted average number of shares outstanding during the period increased by the number of additional shares that would have been outstanding as dilutive securities. Basic and diluted earnings per share are determined using the following information:
For the three and six months ended June 30, 2019, the number of anti-dilutive employee share-based awards excluded from the computation of diluted earnings per share was 2 million, each. For the three and six months ended June 30, 2018, the number of anti-dilutive employee share-based awards excluded from the computation of dilutive earnings per share was nil, each.
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Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Legal Proceedings Shareholder Litigation On February 8, 2019 we, certain of our executive officers, Huntsman and certain banks who acted as underwriters in connection with our IPO and secondary offering were named as defendants in a proposed class action civil suit filed in the District Court for the State of Texas, Dallas County (the "Dallas District Court"), by an alleged purchaser of our ordinary shares in connection with our IPO on August 3, 2017 and our secondary offering on December 1, 2017. The plaintiff, Macomb County Employees’ Retirement System, alleges that inaccurate and misleading statements were made regarding the impact to our operations, and prospects for restoration thereof, resulting from the fire that occurred at our Pori, Finland manufacturing facility, among other allegations. Additional complaints making substantially the same allegations were filed in the Dallas District Court by the Firemen's Retirement System of St. Louis on March 4, 2019 and by Oscar Gonzalez on March 13, 2019, with the third case naming two of our directors as additional defendants. A fourth case was filed in the U.S. District Court for the Southern District of New York by the City of Miami General Employees' & Sanitation Employees' Retirement Trust on July 31, 2019, making substantially the same allegations, adding claims under sections 10(b) and 20(a) of the U.S. Exchange Act, and naming all of our directors as additional defendants. The plaintiffs in these cases seek to determine that the proceedings should be certified as class actions and to obtain alleged compensatory damages, costs, rescission and equitable relief. The cases filed in the Dallas District Court have been consolidated into a single action. On May 8, 2019, we filed a “special appearance” in the Dallas District Court action contesting the court’s jurisdiction over the Company and a motion to transfer venue to Montgomery County, Texas and on June 7, 2019 we and certain defendants filed motions to dismiss. On July 9, 2019, a hearing was held on the motions, but no ruling has been made following the hearing. We may be required to indemnify our executive officers and directors, Huntsman, and the banks who acted as underwriters in our IPO and secondary offerings, for losses incurred by them in connection with these matters pursuant to our agreements with such parties. Because of the early stage of this litigation, we are unable to reasonably estimate any possible loss or range of loss and we have not accrued for a loss contingency with regard to these matters. Tronox Litigation On April 26, 2019, we acquired intangible assets related to the European paper laminates product line from Tronox. A separate agreement with Tronox entered into on July 14, 2018 requires that Tronox promptly pay us a “break fee” of $75 million upon the consummation of Tronox’s merger with The National Titanium Dioxide Company Limited (“Cristal”) once the sale of the European paper laminates business to us was consummated, if the sale of Cristal’s Ashtabula manufacturing complex to us was not completed. The deadline for such payment was May 13, 2019. On April 26, 2019, Tronox publicly stated that it believes it is not obligated to pay the break fee. On May 14, 2019, we commenced a lawsuit in the Delaware Superior Court against Tronox arising from Tronox's breach of its obligation to pay the break fee. We are seeking a judgment for $75 million, plus pre- and post-judgment interest, and reasonable attorneys' fees and costs. On June 17, 2019, Tronox filed an answer denying that it is obligated to pay the break fee and asserting affirmative defenses and counterclaims of approximately $400 million, alleging that we failed to negotiate the purchase of the Ashtabula complex in good faith. Because of the early stage of this litigation, we are unable to reasonably estimate any possible gain, loss or range of gain or loss and we have not made any accrual with regard to this matter. Neste Engineering Services Matter We are party to an arbitration proceeding initiated by Neste Engineering Services Oy (“NES”) on December 19, 2018 for payment of invoices allegedly due of approximately €14 million in connection with the delivery of services by NES to the Company in respect of the Pori site rebuild project. These invoices were accrued in full on our unaudited condensed consolidated balance sheet as of June 30, 2019 and December 31, 2018. We are contesting the validity of these invoices and filed counterclaims against NES on March 8, 2019. The timetable for the arbitration has not yet been set. On July 2, 2019, NES separately instigated a lawsuit in Finland for €1.6 million of unpaid invoices, which we also intend to contest. Other Proceedings We are a party to various other proceedings instituted by private plaintiffs, governmental authorities and others arising under provisions of applicable laws, including various environmental, products liability and other laws. Except as otherwise disclosed in these unaudited condensed consolidated financial statements, we do not believe that the outcome of any of these matters will have a material effect on our financial condition, results of operations or liquidity.
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Environmental, Health and Safety Matters |
6 Months Ended |
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Jun. 30, 2019 | |
ENVIRONMENTAL, HEALTH AND SAFETY MATTERS | |
Environmental, Health and Safety Matters | Note 13. Environmental, Health and Safety Matters Environmental, Health and Safety Capital Expenditures We may incur future costs for capital improvements and general compliance under EHS laws, including costs to acquire, maintain and repair pollution control equipment. For the six months ended June 30, 2019 and 2018, our capital expenditures for EHS matters totaled $8 million and $3 million, respectively. Because capital expenditures for these matters are subject to evolving regulatory requirements and depend, in part, on the timing, promulgation and enforcement of specific requirements, our capital expenditures for EHS matters have varied significantly from year to year and we cannot provide assurance that our recent expenditures are indicative of future amounts we may spend related to EHS and other applicable laws. Environmental Reserves We accrue liabilities relating to anticipated environmental cleanup obligations, site reclamation and closure costs, and known penalties. Liabilities are recorded when potential liabilities are either known or considered probable and can be reasonably estimated. Our liability estimates are calculated using present value techniques as appropriate and are based upon requirements placed upon us by regulators, available facts, existing technology, and past experience. The environmental liabilities do not include amounts recorded as asset retirement obligations. As of June 30, 2019 and December 31, 2018, we had environmental reserves of $10 million and $12 million, respectively. Environmental Matters We have incurred, and we may in the future incur, liability to investigate and clean up waste or contamination at our current or former facilities or facilities operated by third parties at which we may have disposed of waste or other materials. Similarly, we may incur costs for the cleanup of waste that was disposed of prior to the purchase of our businesses. Under some circumstances, the scope of our liability may extend to damages to natural resources. In the EU, the Environmental Liability Directive (Directive 2004/35/EC) has established a framework based on the "polluter pays" principle for the prevention and remediation of environmental damage, which establishes measures to prevent and remedy environmental damage. The directive defines "environmental damage" as damage to protected species and natural habitats, damage to water and damage to soil. Operators carrying out dangerous activities listed in the Directive are strictly liable for remediation, even if they are not at fault or negligent. Under EU Directive 2010/75/EU on industrial emissions, permitted facility operators may be liable for significant pollution of soil and groundwater over the lifetime of the activity concerned. We are in the process of plant closures at facilities in the EU and liability to investigate and clean up waste or contamination may arise during the surrender of operators' permits at these locations under the directive and associated legislation such as the Water Framework Directive (Directive 2000/60/EC) and the Groundwater Directive (Directive 2006/118/EC). Under the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA") and similar state laws, a current or former owner or operator of real property in the U.S. may be liable for remediation costs regardless of whether the release or disposal of hazardous substances was in compliance with law at the time it occurred, and a current owner or operator may be liable regardless of whether it owned or operated the facility at the time of the release. Outside the U.S., analogous contaminated property laws, such as those in effect in France, can hold past owners and/or operators liable for remediation at former facilities. We have not been notified by third parties of claims against us for cleanup liabilities at former facilities or third-party sites, including, but not limited to, sites listed under CERCLA. Under the Resource Conservation and Recovery Act in the U.S. and similar state laws, we may be required to remediate contamination originating from our properties as a condition to our hazardous waste permit. Some of our manufacturing sites have an extended history of industrial chemical manufacturing and use, including on-site waste disposal and we have made accruals for related remediation activity. We are aware of soil, groundwater or surface contamination from past operations at some of our sites and have made accruals for related remediation activity, and we may find contamination at other sites in the future. Similar laws exist in a number of locations in which we currently operate, or previously operated, manufacturing facilities. Pori Remediation In connection with our previously announced intention to close our TiO2 manufacturing facility in Pori, Finland, we expect to incur environmental costs related to the cleanup of the facility upon its eventual closure, including remediation and closure costs. While we do not currently have enough information to be able to estimate the range of potential costs for the closure of this facility, these costs could be material to our unaudited condensed consolidated financial statements.
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Other Comprehensive Income |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income | Note 14. Other Comprehensive Income Other comprehensive income consisted of the following:
(a) Pension and other postretirement benefit amounts in parentheses indicate credits on our unaudited condensed consolidated statements of operations.
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Operating Segment Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Segment Information | Note 15. Operating Segment Information We derive our revenues, earnings and cash flows from the manufacture and sale of TiO2, functional additives, color pigments, timber treatment and water treatment chemicals. We have reported our operations through our two segments, Titanium Dioxide and Performance Additives, and organized our business and derived our operating segments around differences in product lines. The major product groups of each reportable operating segment are as follows:
Sales between segments are generally recognized at external market prices and are eliminated in consolidation. Adjusted EBITDA is presented as a measure of the financial performance of our global business units and for reporting the results of our operating segments. The revenues and adjusted EBITDA for each of the two reportable operating segments are as follows:
(1) Adjusted EBITDA is defined as net income/loss of Venator before interest expense, interest income, income tax expense/benefit, depreciation and amortization and net income attributable to noncontrolling interests, as well as eliminating the following adjustments: (a) business acquisition and integration expenses/adjustments; (b) separation expense/gain, net; (c) loss/gain on disposition of business/assets; (d) certain legal settlements and related expenses/gains; (e) amortization of pension and postretirement actuarial losses/gains; (f) net plant incident costs/credits; and (g) restructuring, impairment, and plant closing and transition costs/credits.
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General, Description of Business, Recent Developments and Basis of Presentation (Policies) |
6 Months Ended |
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Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Our unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP" or "U.S. GAAP") and in management’s opinion reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of results of operations, comprehensive income, financial position and cash flows for the periods presented. Results for interim periods are not necessarily indicative of those to be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated and combined financial statements and notes to consolidated and combined financial statements included in the Annual Report on Form 10‑K for the year ended December 31, 2018 for our Company. In the notes to unaudited condensed consolidated financial statements, all dollar and share amounts, except per share amounts, in tabulations are in millions unless otherwise indicated. |
Recently Issued Accounting Pronouncements | Accounting Pronouncements Adopted During the Period Effective January 1, 2019, we adopted Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) using the modified retrospective approach which applies the provisions of the standard at the effective date without adjusting the comparative periods presented. The adoption of this ASU did not result in a cumulative effect adjustment to the opening balance of retained earnings. This ASU requires substantially all leases to be recognized on the balance sheet as right-of-use assets ("ROU assets") and lease obligations. Additional qualitative and quantitative disclosures are also required. Adoption of the new standard resulted in the recording of an operating lease ROU asset of $47 million and a lease liability of $49 million. The adoption of this ASU did not have a material impact on our condensed consolidated statements of operations or cash flows. Our accounting for finance leases remained substantially unchanged. We elected the following optional practical expedients allowed under the ASU: (i) we applied the package of practical expedients permitting entities not to reassess under the new standard our prior conclusions about lease identification, classification or initial direct costs for any leases existing prior to the effective date; (ii) we elected to account for lease and associated non-lease components as a single lease component for all asset classes with the exception of buildings and (iii) we do not recognize ROU assets and related lease obligations with lease terms of 12 months or less from the commencement date. In February 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220). This standard provides an option to reclassify stranded tax effects within accumulated other comprehensive income (loss) to retained earnings due to the U.S. federal corporate income tax rate change in the Tax Cuts and Jobs Act of 2017 (the "Tax Act"). This standard is effective for interim and annual reporting periods beginning after December 15, 2018. The adoption of this ASU did not have a material impact on our unaudited condensed consolidated statement of comprehensive income. Accounting Pronouncements Pending Adoption in Future Periods In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The amendments in this ASU replace the incurred loss impairment methodology with a methodology that reflects expected credit losses. This update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The new standard is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for fiscal years beginning after December 15, 2018. We have completed our assessment and we do not anticipate this will have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20). The amendments in this ASU add, remove, and clarify disclosure requirements related to defined benefit pension and other postretirement plans. This ASU eliminates the requirement to disclose the amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost over the next year. The ASU also removes the disclosure requirements for the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost and the benefit obligation for postretirement health care benefits. This standard is effective for fiscal years ending after December 15, 2020, and must be applied on a retrospective basis. Since the ASU is related to disclosure requirements only, this adoption will not have a material impact on our consolidated financial statements.
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Leases (Tables) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Cost | Cash paid for amounts included in the present value of operating lease liabilities were as follows:
The components of lease expense were as follows:
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Supplemental Balance Sheet Information |
Supplemental balance sheet information related to leases was as follows:
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Operating Lease Liability Maturities | Maturities of lease liabilities were as follows:
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Finance Lease Liability Maturities | Maturities of lease liabilities were as follows:
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Operating Lease Minimum Payments As Of Prior Period | Future minimum lease payments under noncancelable operating leases as of December 31, 2018 were as follows:
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Capital Lease Minimum Payments As Of Prior Period | Future minimum lease payments under noncancelable operating leases as of December 31, 2018 were as follows:
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Revenue (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table disaggregates our revenue by major geographical region for the three and six months ended June 30, 2019 and 2018:
The following table disaggregates our revenue by major product line for the three and six months ended June 30, 2019 and 2018:
|
Inventories (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of inventory | Inventories are stated at the lower of cost or market, with cost determined using first-in, first-out and average cost methods for different components of inventory. Inventories at June 30, 2019 and December 31, 2018 consisted of the following:
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Variable Interest Entities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of financial information of VIE's | The revenues, income before income taxes and net cash provided by operating activities for our variable interest entities for the three and six months ended June 30, 2019 and 2018 are as follows:
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Restructuring, Impairment, and Plant Closing and Transition Costs (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accrued restructuring, impairment and plant closing costs by type of cost and initiative | As of June 30, 2019 and December 31, 2018, accrued restructuring and plant closing and transition costs by type of cost and year of initiative consisted of the following:
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Schedule of accrued liabilities by year of initiatives | Accrued liabilities remaining at June 30, 2019 and December 31, 2018 by year of initiatives were as follows:
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Schedule of details with respect to reserves for restructuring, impairment and plant closing costs, provided by segment and initiative | Our restructuring accruals are all related to our Titanium Dioxide segment. |
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Schedule of cash and noncash restructuring charges by initiative | Details with respect to major cost type of restructuring charges and impairment of assets for the three and six months ended June 30, 2019 and 2018 by initiative are provided below:
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Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of outstanding debt | Outstanding debt, net of debt issuance costs of $14 million and $13 million as of June 30, 2019 and December 31, 2018, respectively, consisted of the following:
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Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of basic and diluted earnings (loss) per share | Basic and diluted earnings per share are determined using the following information:
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Other Comprehensive Income (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other comprehensive income (loss) | Other comprehensive income consisted of the following:
(e) Amounts are net of tax of $52 million as of June 30, 2018 and January 1, 2018, each.
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Schedule of details about reclassifications from other comprehensive loss |
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Operating Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segments | The revenues and adjusted EBITDA for each of the two reportable operating segments are as follows:
(1) Adjusted EBITDA is defined as net income/loss of Venator before interest expense, interest income, income tax expense/benefit, depreciation and amortization and net income attributable to noncontrolling interests, as well as eliminating the following adjustments: (a) business acquisition and integration expenses/adjustments; (b) separation expense/gain, net; (c) loss/gain on disposition of business/assets; (d) certain legal settlements and related expenses/gains; (e) amortization of pension and postretirement actuarial losses/gains; (f) net plant incident costs/credits; and (g) restructuring, impairment, and plant closing and transition costs/credits. The major product groups of each reportable operating segment are as follows:
|
General, Description of Business, Recent Developments and Basis of Presentation - Description of Business (Details) |
6 Months Ended |
---|---|
Jun. 30, 2019
facility
segment
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | segment | 2 |
Number of titanium dioxide manufacturing facilities | 8 |
Number of manufacturing and processing facilities | 16 |
General, Description of Business, Recent Developments and Basis of Presentation - Acquisition of European Paper Laminates Business from Tronox (Details) - Tronox European Paper Laminates Business € in Millions, $ in Millions |
Apr. 26, 2019
EUR (€)
Installment
|
Jun. 30, 2019
USD ($)
|
Apr. 26, 2019
USD ($)
|
Apr. 26, 2019
EUR (€)
|
---|---|---|---|---|
Business Acquisition [Line Items] | ||||
Purchase price | € | € 8 | |||
Payable upon completion of acquisition | € | € 1 | |||
Acquisition payable | $ | $ 7 | |||
Acquisition payable, number of payment installments | Installment | 2 | |||
Acquisition payable, payment time period (years) | 2 years | |||
Note payable | $ | $ 8 |
Recently Issued Accounting Pronouncements - Narrative (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Jan. 01, 2019 |
---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 41 | |
Operating lease liability | $ 43 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 47 | |
Operating lease liability | $ 49 |
Leases - Narrative (Details) |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Lessee, Lease, Description [Line Items] | |
Renewal term (years) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Renewal term (years) | 20 years |
Remaining term (years) | 93 years |
Leases - Lease Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
|
Leases [Abstract] | ||
Operating lease cost | $ 3 | $ 7 |
Amortization of right-of-use assets | 1 | 1 |
Interest on lease liabilities | 0 | 0 |
Short-term lease cost | $ 0 | $ 1 |
Leases - Supplemental Balance Sheet Information (Details) $ in Millions |
Jun. 30, 2019
USD ($)
|
---|---|
Leases [Abstract] | |
Operating Lease Right-of-Use Assets | $ 41 |
Finance Lease Right-of-Use Assets, at cost | 13 |
Accumulated Depreciation | (4) |
Finance Lease Right-of-Use Assets, net | 9 |
Current | 9 |
Non-Current | 34 |
Total Operating Lease Liabilities | 43 |
Current | 1 |
Non-Current | 8 |
Total Finance Lease Liabilities | $ 9 |
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
|
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 3 | $ 7 |
Operating cash flows from finance leases | 1 | 1 |
Financing cash flows from finance leases | $ 0 | $ 0 |
Leases - Lease Term and Discount Rate (Details) |
Jun. 30, 2019 |
---|---|
Leases [Abstract] | |
Operating Lease, Weighted Average Remaining Lease Term | 12 years 6 months |
Finance Lease, Weighted Average Remaining Lease Term | 7 years 3 months 18 days |
Operating Lease, Weighted Average Discount Rate, Percent | 7.20% |
Finance Lease, Weighted Average Discount Rate, Percent | 5.20% |
Leases - Lease Maturity Schedule (Details) $ in Millions |
Jun. 30, 2019
USD ($)
|
---|---|
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2019 (remaining) | $ 6 |
2020 | 10 |
2021 | 8 |
2022 | 6 |
2023 | 4 |
After 2023 | 38 |
Total lease payments | 72 |
Less: Interest | 29 |
Present value of lease liabilities | 43 |
Finance Lease, Liability, Payment, Due [Abstract] | |
2019 (remaining) | 1 |
2020 | 2 |
2021 | 1 |
2022 | 1 |
2023 | 1 |
After 2023 | 4 |
Total lease payments | 10 |
Less: Interest | 1 |
Present value of lease liabilities | 9 |
2019 (remaining) | 7 |
2020 | 12 |
2021 | 9 |
2022 | 7 |
2023 | 5 |
After 2023 | 42 |
Total lease payments | 82 |
Less: Interest | 30 |
Present value of lease liabilities | $ 52 |
Leases - Disclosures Related to Prior Periods (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2018
USD ($)
| |
Leases [Abstract] | |
Rent expense under operating lease | $ 16 |
Future minimum lease payments | |
2019 | 13 |
2020 | 11 |
2021 | 9 |
2022 | 6 |
2023 | 4 |
Thereafter | 40 |
Total | 83 |
Capital Lease Obligations [Abstract] | |
2019 | 1 |
2020 | 2 |
2021 | 1 |
2022 | 1 |
2023 | 1 |
Thereafter | 7 |
Total | 13 |
Less: Amounts representing interest | 3 |
Present value of minimum lease payments | 10 |
Less: Current portion of capital leases | 1 |
Long-term portion of capital leases | $ 9 |
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 578 | $ 626 | $ 1,140 | $ 1,248 |
TiO2 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 439 | 455 | 864 | 911 |
Color Pigments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 70 | 84 | 140 | 166 |
Functional Additives | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 33 | 39 | 65 | 80 |
Timber Treatment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 31 | 41 | 60 | 78 |
Water Treatment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5 | 7 | 11 | 13 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 264 | 288 | 532 | 587 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 153 | 158 | 287 | 306 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 114 | 126 | 227 | 249 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 47 | 54 | 94 | 106 |
Titanium Dioxide | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 439 | 455 | 864 | 911 |
Titanium Dioxide | TiO2 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 439 | 455 | 864 | 911 |
Titanium Dioxide | Color Pigments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Titanium Dioxide | Functional Additives | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Titanium Dioxide | Timber Treatment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Titanium Dioxide | Water Treatment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Titanium Dioxide | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 215 | 229 | 428 | 470 |
Titanium Dioxide | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 88 | 80 | 165 | 151 |
Titanium Dioxide | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 92 | 96 | 184 | 192 |
Titanium Dioxide | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 44 | 50 | 87 | 98 |
Performance Additives | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 139 | 171 | 276 | 337 |
Performance Additives | TiO2 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Performance Additives | Color Pigments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 70 | 84 | 140 | 166 |
Performance Additives | Functional Additives | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 33 | 39 | 65 | 80 |
Performance Additives | Timber Treatment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 31 | 41 | 60 | 78 |
Performance Additives | Water Treatment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5 | 7 | 11 | 13 |
Performance Additives | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 49 | 59 | 104 | 117 |
Performance Additives | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 65 | 78 | 122 | 155 |
Performance Additives | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 22 | 30 | 43 | 57 |
Performance Additives | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 3 | $ 4 | $ 7 | $ 8 |
Revenue (Narrative) (Details) |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue payment term | 30 days |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue payment term | 90 days |
Inventories (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
||
---|---|---|---|---|
Inventory Disclosure [Abstract] | ||||
Raw materials and supplies | $ 163 | $ 165 | ||
Work in process | 62 | 56 | ||
Finished goods | 283 | 317 | ||
Total | [1] | $ 508 | $ 538 | |
|
Variable Interest Entities (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Revenues, income from continuing operations before income taxes and net cash provided by operating activities for our variable interest entities | ||||
Revenues | $ 578 | $ 626 | $ 1,140 | $ 1,248 |
Income before income taxes | 13 | 243 | 12 | 343 |
Net cash provided by operating activities | (50) | 305 | ||
Consolidated VIE's | ||||
Revenues, income from continuing operations before income taxes and net cash provided by operating activities for our variable interest entities | ||||
Revenues | 25 | 35 | 47 | 66 |
Income before income taxes | 3 | 5 | 5 | 9 |
Net cash provided by operating activities | $ 4 | $ 3 | $ 6 | $ 12 |
Pacific Iron Products | ||||
Identification of variable interest entities through investments and transactions | ||||
Variable interest entity ownership percentage | 50.00% | |||
Viance | ||||
Identification of variable interest entities through investments and transactions | ||||
Variable interest entity ownership percentage | 50.00% |
Restructuring, Impairment, and Plant Closing and Transition Costs - Narrative (Details) |
3 Months Ended | 6 Months Ended | 66 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2019
USD ($)
position
|
Jun. 30, 2018
USD ($)
|
Dec. 31, 2024
USD ($)
|
|
Restructuring, impairment and plant closing costs | |||||
Cash charges | $ 1,000,000 | $ 4,000,000 | |||
Accelerated depreciation | 8,000,000 | $ 129,000,000 | 12,000,000 | $ 132,000,000 | |
Other noncash charges | 1,000,000 | 1,000,000 | |||
Cash charges | 6,000,000 | 6,000,000 | $ 14,000,000 | 12,000,000 | |
Workforce reductions | |||||
Restructuring, impairment and plant closing costs | |||||
Number of positions terminated | position | 258 | ||||
South Africa | Titanium Dioxide | |||||
Restructuring, impairment and plant closing costs | |||||
Cash charges | 1,000,000 | 1,000,000 | $ 1,000,000 | 2,000,000 | |
Calais, France | Titanium Dioxide | |||||
Restructuring, impairment and plant closing costs | |||||
Cash charges | 1,000,000 | 4,000,000 | 2,000,000 | 9,000,000 | |
Additional restructuring charges remaining | 5,000,000 | 5,000,000 | |||
Pori, Finland | Titanium Dioxide | Facility closing | |||||
Restructuring, impairment and plant closing costs | |||||
Cash charges | 3,000,000 | 3,000,000 | |||
Additional restructuring charges remaining | 112,000,000 | 112,000,000 | |||
Restructuring gain | 3,000,000 | ||||
Gain on early settlement of contractual obligation | 14,000,000 | 14,000,000 | |||
Accelerated depreciation | 8,000,000 | 11,000,000 | |||
Employee benefits | 2,000,000 | 4,000,000 | |||
Plant shut down costs | 1,000,000 | 2,000,000 | |||
Other noncash charges | 6,000,000 | 3,000,000 | |||
Cash charges | 6,000,000 | ||||
St. Louis And Easton | |||||
Restructuring, impairment and plant closing costs | |||||
Cash charges | 0 | 5,000,000 | 0 | 8,000,000 | |
Beltsville, Maryland | |||||
Restructuring, impairment and plant closing costs | |||||
Cash charges | 1,000,000 | 2,000,000 | |||
Augusta, Georgia | |||||
Restructuring, impairment and plant closing costs | |||||
Cash charges | $ 0 | 127,000,000 | $ 0 | 127,000,000 | |
Accelerated depreciation | 125,000,000 | 125,000,000 | |||
Other noncash charges | 1,000,000 | 1,000,000 | |||
Cash charges | $ 1,000,000 | $ 1,000,000 | |||
Forecast | Pori, Finland | Titanium Dioxide | Facility closing | |||||
Restructuring, impairment and plant closing costs | |||||
Cash charges | $ 86,000,000 | ||||
Accelerated depreciation | 24,000,000 | ||||
Employee benefits | 8,000,000 | ||||
Plant shut down costs | 78,000,000 | ||||
Other noncash charges | 26,000,000 | ||||
Write off of other assets | $ 2,000,000 |
Restructuring, Impairment, and Plant Closing and Transition Costs - Accrued Restructuring and Plant Closing and Transition Costs (Details) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2019
USD ($)
position
|
|
Accrued restructuring costs roll forward | ||
Accrued liabilities as of December 31, 2018 | $ 32 | |
Cash charges | $ 1 | 4 |
Accrued liabilities as of June 30, 2019 | 19 | 19 |
Current portion of restructuring reserves | 8 | 8 |
Long-term portion of restructuring reserve | 11 | 11 |
2018 initiatives and prior | ||
Accrued restructuring costs roll forward | ||
Cash charges | 10 | |
Restructuring payments | (24) | |
2019 initiatives | ||
Accrued restructuring costs roll forward | ||
Accrued liabilities as of December 31, 2018 | 0 | |
Cash charges | 4 | |
Restructuring payments | (3) | |
Accrued liabilities as of June 30, 2019 | 1 | 1 |
Workforce reductions | ||
Accrued restructuring costs roll forward | ||
Accrued liabilities as of December 31, 2018 | 32 | |
Accrued liabilities as of June 30, 2019 | 19 | $ 19 |
Number of positions terminated | position | 258 | |
Number of positions not eliminated | position | 12 | |
Current portion of restructuring reserves | 8 | $ 8 |
Long-term portion of restructuring reserve | 11 | 11 |
Workforce reductions | 2018 initiatives and prior | ||
Accrued restructuring costs roll forward | ||
Cash charges | 5 | |
Restructuring payments | (19) | |
Workforce reductions | 2019 initiatives | ||
Accrued restructuring costs roll forward | ||
Cash charges | 4 | |
Restructuring payments | (3) | |
Other restructuring costs | ||
Accrued restructuring costs roll forward | ||
Accrued liabilities as of December 31, 2018 | 0 | |
Accrued liabilities as of June 30, 2019 | 0 | 0 |
Current portion of restructuring reserves | 0 | 0 |
Long-term portion of restructuring reserve | $ 0 | 0 |
Other restructuring costs | 2018 initiatives and prior | ||
Accrued restructuring costs roll forward | ||
Cash charges | 5 | |
Restructuring payments | (5) | |
Other restructuring costs | 2019 initiatives | ||
Accrued restructuring costs roll forward | ||
Cash charges | 0 | |
Restructuring payments | $ 0 |
Restructuring, Impairment, and Plant Closing and Transition Costs - Accrued Liabilities by Initiatives (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Accrued liabilities by initiatives | ||
Accrued liabilities | $ 19 | $ 32 |
2017 initiatives and prior | ||
Accrued liabilities by initiatives | ||
Accrued liabilities | 9 | 18 |
2018 initiatives | ||
Accrued liabilities by initiatives | ||
Accrued liabilities | 9 | 14 |
2019 initiatives | ||
Accrued liabilities by initiatives | ||
Accrued liabilities | $ 1 | $ 0 |
Restructuring, Impairment, and Plant Closing and Transition Costs - Restructuring, Impairment and Plant Closing and Transition Costs (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Restructuring and Related Activities [Abstract] | ||||
Cash charges | $ 6 | $ 6 | $ 14 | $ 12 |
Early settlement of contractual obligation | (14) | (14) | ||
Accelerated depreciation | 8 | 129 | 12 | 132 |
Other noncash charges | 1 | 1 | ||
Total restructuring, impairment and plant closing and Transition costs | $ 0 | $ 136 | $ 12 | $ 145 |
Debt - Narrative (Details) - USD ($) |
Aug. 08, 2017 |
Jul. 14, 2017 |
Jun. 30, 2019 |
Jun. 20, 2019 |
Dec. 31, 2018 |
---|---|---|---|---|---|
Debt | |||||
Debt issuance costs | $ 14,000,000 | $ 13,000,000 | |||
Senior Notes | |||||
Debt | |||||
Fair value of debt instruments | $ 345,000,000 | 300,000,000 | |||
Stated interest rate as a percentage | 5.75% | ||||
Senior Notes | Prior to July 15 2020 | |||||
Debt | |||||
Redemption price as a percentage | 100.00% | ||||
Maximum aggregate principal amount not greater than net cash proceeds of certain equity offerings | 40.00% | ||||
Net cash proceeds of equity offerings as a percentage of principal amount | 105.75% | ||||
Senior Notes | Occurrence Certain Change Of Control Events | |||||
Debt | |||||
Redemption price as a percentage | 101.00% | ||||
Senior Notes and Term Loan Facility | |||||
Debt | |||||
Weighted average interest rate (as a percent) | 5.00% | ||||
Senior Credit Facilities | |||||
Debt | |||||
Aggregate principal amount | $ 675,000,000 | ||||
Term Loan Facility | |||||
Debt | |||||
Fair value of debt instruments | $ 365,000,000 | $ 355,000,000 | |||
Aggregate principal amount | $ 375,000,000 | ||||
Maturity term | 7 years | ||||
Amortization of line of credit facility as a percentage of principal amount | 1.00% | ||||
Term Loan Facility | Federal funds rate | |||||
Debt | |||||
Interest rate basis as a percentage | 0.50% | ||||
Term Loan Facility | LIBOR | |||||
Debt | |||||
Interest rate basis as a percentage | 1.00% | ||||
ABL facility | |||||
Debt | |||||
Maturity term | 5 years | ||||
Maximum borrowing capacity commitment | $ 300,000,000 | $ 350,000,000 | |||
ABL facility | LIBOR | Minimum | |||||
Debt | |||||
Interest rate basis as a percentage | 1.50% | ||||
ABL facility | LIBOR | Maximum | |||||
Debt | |||||
Interest rate basis as a percentage | 2.00% | ||||
Line of Credit | ABL facility | |||||
Debt | |||||
Aggregate principal outstanding | $ 24,000,000 |
Debt - Outstanding Debt (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
||
---|---|---|---|---|
Debt | ||||
Total debt | $ 770 | $ 748 | ||
Less: short-term debt and current portion of long-term debt | [1] | 32 | 8 | |
Long-term debt | 738 | 740 | ||
Senior Notes | ||||
Debt | ||||
Total debt | 371 | 370 | ||
Term Loan Facility | ||||
Debt | ||||
Total debt | 363 | 365 | ||
Other | ||||
Debt | ||||
Total debt | $ 36 | $ 13 | ||
|
Derivative Instruments and Hedging Activities (Details) € in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
EUR (€)
derivative_instrument
|
|
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||
Hedging instruments gain (loss) | $ 1,000,000 | $ 12,000,000 | $ 5,000,000 | $ 5,000,000 | ||
Designated as Hedges | ||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||
Accumulated other comprehensive loss expected to be reclassified to earnings | 0 | 0 | ||||
Cross currency interest rate contracts | Designated as Hedges | ||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||
Number of derivative instruments held | derivative_instrument | 3 | |||||
Notional amounts | € | € 169 | |||||
Fixed percentage to be paid under the hedge | 3.43% | |||||
Hedging instruments gain (loss) | 5,000,000 | $ 5,000,000 | ||||
Cross currency interest rate contracts | Designated as Hedges | Other Noncurrent Assets | ||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||
Fair value of the hedge | 11,000,000 | 11,000,000 | $ 6,000,000 | |||
Forward foreign currency contracts | Not Designated as Hedges | ||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||
Notional amounts | $ 79,000,000 | $ 79,000,000 | $ 89,000,000 | |||
Maturity period of spot or forward exchange rate contracts | 1 month |
Income Taxes - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Income Tax | ||||||
Income tax expense (benefit) | $ (9) | $ 45 | $ (8) | $ 65 | ||
Aggregate income tax future payments required per Tax Matters Agreement, Tax Cuts and Jobs Act of 2017 | 34 | |||||
Noncurrent payable to affiliates | $ 34 | $ 34 | $ 34 | |||
United States | ||||||
Income Tax | ||||||
Deferred tax asset due to basis step up | $ 36 |
Earnings Per Share (Details) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Basic and diluted net income: | ||||
Net income attributable to Venator Materials PLC ordinary shareholders | $ 21 | $ 196 | $ 18 | $ 274 |
Denominator: | ||||
Weighted average shares outstanding (shares) | 106.6 | 106.4 | 106.5 | 106.4 |
Dilutive share-based awards (shares) | 0.0 | 0.3 | 0.0 | 0.4 |
Total weighted average shares outstanding, including dilutive shares (shares) | 106.6 | 106.7 | 106.5 | 106.8 |
Stock Compensation Plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computations of earnings per share (shares) | 2.0 | 0.0 | 2.0 | 0.0 |
Commitments and Contingencies (Details) € in Millions, $ in Millions |
Jul. 02, 2019
EUR (€)
|
Jun. 17, 2019
USD ($)
|
May 14, 2019
USD ($)
|
Jul. 14, 2018
USD ($)
|
Dec. 19, 2018
EUR (€)
|
---|---|---|---|---|---|
Tronox Litigation | |||||
Loss Contingencies [Line Items] | |||||
Gain contingency | $ 75 | ||||
Loss contingency for affirmative defenses and counterclaims | $ 400 | ||||
Neste Engineering Services Arbitration | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency accrual | € | € 14.0 | ||||
Tronox Limited | |||||
Loss Contingencies [Line Items] | |||||
Break fee | $ 75 | ||||
Subsequent Event | NES | Neste Engineering Services Arbitration | |||||
Loss Contingencies [Line Items] | |||||
Damages sought | € | € 1.6 |
Environmental, Health and Safety Matters (Details) - USD ($) $ in Millions |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
ENVIRONMENTAL, HEALTH AND SAFETY MATTERS | |||
Capital expenditures for EHS matters | $ 8 | $ 3 | |
Environmental reserves | $ 10 | $ 12 |
Other Comprehensive Income - Other Comprehensive Loss (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Components of other comprehensive loss | ||||||||
Balance at the beginning of the period | $ 872,000,000 | $ 855,000,000 | $ 1,237,000,000 | $ 1,105,000,000 | $ 855,000,000 | $ 1,105,000,000 | ||
Total other comprehensive (loss) income, net of tax | (8,000,000) | 19,000,000 | (99,000,000) | 53,000,000 | 11,000,000 | (46,000,000) | ||
Balance at the end of the period | 886,000,000 | 872,000,000 | 1,334,000,000 | 1,237,000,000 | 886,000,000 | 1,334,000,000 | ||
Foreign currency translation adjustment | ||||||||
Components of other comprehensive loss | ||||||||
Balance at the beginning of the period | (96,000,000) | (6,000,000) | (96,000,000) | (6,000,000) | ||||
Other comprehensive (loss) income before reclassifications, gross | (2,000,000) | (58,000,000) | ||||||
Tax expense (benefit) | 0 | 0 | ||||||
Amounts reclassified from accumulated other comprehensive loss, gross | 0 | 0 | ||||||
Tax expense (benefit) | 0 | 0 | ||||||
Total other comprehensive (loss) income, net of tax | (2,000,000) | (58,000,000) | ||||||
Balance at the end of the period | (98,000,000) | (64,000,000) | (98,000,000) | (64,000,000) | ||||
AOCI tax | 0 | 0 | 0 | 0 | $ 0 | $ 0 | ||
Pension and other postretirement benefits adjustments net of tax | ||||||||
Components of other comprehensive loss | ||||||||
Balance at the beginning of the period | (278,000,000) | (267,000,000) | (278,000,000) | (267,000,000) | ||||
Other comprehensive (loss) income before reclassifications, gross | 0 | 0 | ||||||
Tax expense (benefit) | 0 | 0 | ||||||
Amounts reclassified from accumulated other comprehensive loss, gross | 8,000,000 | 7,000,000 | ||||||
Tax expense (benefit) | 0 | 0 | ||||||
Total other comprehensive (loss) income, net of tax | 8,000,000 | 7,000,000 | ||||||
Balance at the end of the period | (270,000,000) | (260,000,000) | (270,000,000) | (260,000,000) | ||||
AOCI tax | 50,000,000 | 52,000,000 | 50,000,000 | 52,000,000 | $ 50,000,000 | $ 52,000,000 | ||
Other comprehensive loss of unconsolidated affiliates | ||||||||
Components of other comprehensive loss | ||||||||
Balance at the beginning of the period | (5,000,000) | (5,000,000) | (5,000,000) | (5,000,000) | ||||
Other comprehensive (loss) income before reclassifications, gross | 0 | 0 | ||||||
Tax expense (benefit) | 0 | 0 | ||||||
Amounts reclassified from accumulated other comprehensive loss, gross | 0 | 0 | ||||||
Tax expense (benefit) | 0 | 0 | ||||||
Total other comprehensive (loss) income, net of tax | 0 | 0 | ||||||
Balance at the end of the period | (5,000,000) | (5,000,000) | (5,000,000) | (5,000,000) | ||||
Hedging Instruments | ||||||||
Components of other comprehensive loss | ||||||||
Balance at the beginning of the period | 6,000,000 | (5,000,000) | 6,000,000 | (5,000,000) | ||||
Other comprehensive (loss) income before reclassifications, gross | 5,000,000 | 5,000,000 | ||||||
Tax expense (benefit) | 0 | 0 | ||||||
Amounts reclassified from accumulated other comprehensive loss, gross | 0 | 0 | ||||||
Tax expense (benefit) | 0 | 0 | ||||||
Total other comprehensive (loss) income, net of tax | 5,000,000 | 5,000,000 | ||||||
Balance at the end of the period | 11,000,000 | 0 | 11,000,000 | 0 | ||||
Amounts attributable to Venator | ||||||||
Components of other comprehensive loss | ||||||||
Balance at the beginning of the period | (354,000,000) | (373,000,000) | (230,000,000) | (283,000,000) | (373,000,000) | (283,000,000) | ||
Other comprehensive (loss) income before reclassifications, gross | 3,000,000 | (53,000,000) | ||||||
Tax expense (benefit) | 0 | 0 | ||||||
Amounts reclassified from accumulated other comprehensive loss, gross | 8,000,000 | 7,000,000 | ||||||
Tax expense (benefit) | 0 | 0 | ||||||
Total other comprehensive (loss) income, net of tax | (8,000,000) | 19,000,000 | (99,000,000) | 53,000,000 | 11,000,000 | (46,000,000) | ||
Balance at the end of the period | (362,000,000) | (354,000,000) | (329,000,000) | (230,000,000) | (362,000,000) | (329,000,000) | ||
Amounts attributable to noncontrolling interests | ||||||||
Components of other comprehensive loss | ||||||||
Balance at the beginning of the period | $ 0 | $ 0 | 0 | 0 | ||||
Other comprehensive (loss) income before reclassifications, gross | 0 | 0 | ||||||
Tax expense (benefit) | 0 | 0 | ||||||
Amounts reclassified from accumulated other comprehensive loss, gross | 0 | 0 | ||||||
Tax expense (benefit) | 0 | 0 | ||||||
Total other comprehensive (loss) income, net of tax | 0 | 0 | ||||||
Balance at the end of the period | $ 0 | $ 0 | $ 0 | $ 0 |
Other Comprehensive Income - Reclassifications (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Reclassification from accumulated other comprehensive loss | ||||||
Other income | $ 1 | $ 2 | $ 2 | $ 4 | ||
Total amortization | 13 | 243 | 12 | 343 | ||
Income tax expense | (9) | 45 | (8) | 65 | ||
Net income | 22 | $ (2) | 198 | $ 80 | 20 | 278 |
Reclassification out of Accumulated Other Comprehensive Income | ||||||
Reclassification from accumulated other comprehensive loss | ||||||
Income tax expense | 0 | 0 | 0 | 0 | ||
Net income | 4 | 4 | 8 | 7 | ||
Reclassification out of Accumulated Other Comprehensive Income | Pension and other postretirement benefits adjustments net of tax | ||||||
Reclassification from accumulated other comprehensive loss | ||||||
Total amortization | 4 | 4 | 8 | 7 | ||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent | ||||||
Reclassification from accumulated other comprehensive loss | ||||||
Other income | 4 | 4 | 8 | 7 | ||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent | ||||||
Reclassification from accumulated other comprehensive loss | ||||||
Other income | $ 0 | $ 0 | $ 0 | $ 0 |
Operating Segment Information (Details) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2019
USD ($)
|
Mar. 31, 2019
USD ($)
|
Jun. 30, 2018
USD ($)
|
Mar. 31, 2018
USD ($)
|
Jun. 30, 2019
USD ($)
segment
|
Jun. 30, 2018
USD ($)
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OPERATING SEGMENT INFORMATION | ||||||
Number of reportable segments | segment | 2 | |||||
Revenues: | ||||||
Revenues | $ 578 | $ 626 | $ 1,140 | $ 1,248 | ||
Segment Adjusted EBITDA | ||||||
Segment adjusted EBITDA | 61 | 157 | 121 | 314 | ||
Reconciliation of adjusted EBITDA to net income: | ||||||
Interest expense | (13) | (14) | (27) | (27) | ||
Interest income | 3 | 4 | 6 | 7 | ||
Income tax benefit (expense) | 9 | (45) | 8 | (65) | ||
Depreciation and amortization | (29) | (35) | (55) | (69) | ||
Net income attributable to noncontrolling interests | 1 | 2 | 2 | 4 | ||
Other adjustments: | ||||||
Business acquisition and integration adjustments (expenses) | 1 | (2) | (1) | (4) | ||
Separation expense, net | 0 | 0 | 0 | (1) | ||
Loss on disposition of business/assets | 0 | (2) | 0 | (2) | ||
Certain legal settlements and related expenses | (1) | 0 | (1) | 0 | ||
Amortization of pension and postretirement actuarial losses | (4) | (4) | (8) | (7) | ||
Net plant incident (costs) credits | (6) | 273 | (13) | 273 | ||
Restructuring, impairment and plant closing and transition costs | 0 | (136) | (12) | (145) | ||
Net (loss) income | 22 | $ (2) | 198 | $ 80 | 20 | 278 |
Titanium Dioxide | ||||||
Revenues: | ||||||
Revenues | 439 | 455 | 864 | 911 | ||
Performance Additives | ||||||
Revenues: | ||||||
Revenues | 139 | 171 | 276 | 337 | ||
Corporate and other | ||||||
Segment Adjusted EBITDA | ||||||
Segment adjusted EBITDA | (10) | (13) | (26) | (23) | ||
Operating segments | ||||||
Segment Adjusted EBITDA | ||||||
Segment adjusted EBITDA | 71 | 170 | 147 | 337 | ||
Operating segments | Titanium Dioxide | ||||||
Segment Adjusted EBITDA | ||||||
Segment adjusted EBITDA | 55 | 147 | 116 | 290 | ||
Operating segments | Performance Additives | ||||||
Segment Adjusted EBITDA | ||||||
Segment adjusted EBITDA | $ 16 | $ 23 | $ 31 | $ 47 |
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