false--12-31Q2438300001705682100000050000005000000020000005200000005000000000.0010.00120000000020000000010600000010700000010600000010700000020000000.020.01510000005000000500000012700000010000000012500000010000001000000 0001705682 2019-01-01 2019-06-30 0001705682 2019-07-30 0001705682 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2019-06-30 0001705682 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2018-12-31 0001705682 2018-12-31 0001705682 2019-06-30 0001705682 2018-01-01 2018-06-30 0001705682 2018-04-01 2018-06-30 0001705682 2019-04-01 2019-06-30 0001705682 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0001705682 2018-06-30 0001705682 2018-01-01 2018-03-31 0001705682 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-03-31 0001705682 us-gaap:NoncontrollingInterestMember 2018-01-01 2018-03-31 0001705682 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0001705682 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2018-03-31 0001705682 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0001705682 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001705682 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001705682 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0001705682 2017-12-31 0001705682 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0001705682 vntr:OrdinarySharesMember 2018-03-31 0001705682 us-gaap:NoncontrollingInterestMember 2018-06-30 0001705682 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2018-01-01 2018-03-31 0001705682 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2017-12-31 0001705682 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-03-31 0001705682 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0001705682 vntr:OrdinarySharesMember 2018-06-30 0001705682 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2018-06-30 0001705682 vntr:OrdinarySharesMember 2017-12-31 0001705682 us-gaap:NoncontrollingInterestMember 2017-12-31 0001705682 us-gaap:NoncontrollingInterestMember 2018-04-01 2018-06-30 0001705682 us-gaap:NoncontrollingInterestMember 2018-03-31 0001705682 2018-03-31 0001705682 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2018-04-01 2018-06-30 0001705682 vntr:OrdinarySharesMember 2019-03-31 0001705682 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-03-31 0001705682 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001705682 vntr:OrdinarySharesMember 2019-01-01 2019-03-31 0001705682 2019-01-01 2019-03-31 0001705682 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001705682 us-gaap:NoncontrollingInterestMember 2019-06-30 0001705682 vntr:OrdinarySharesMember 2019-04-01 2019-06-30 0001705682 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-04-01 2019-06-30 0001705682 vntr:OrdinarySharesMember 2018-12-31 0001705682 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001705682 us-gaap:NoncontrollingInterestMember 2018-12-31 0001705682 us-gaap:NoncontrollingInterestMember 2019-03-31 0001705682 vntr:OrdinarySharesMember 2019-06-30 0001705682 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001705682 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-06-30 0001705682 2019-03-31 0001705682 us-gaap:NoncontrollingInterestMember 2019-04-01 2019-06-30 0001705682 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0001705682 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001705682 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0001705682 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0001705682 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001705682 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0001705682 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2018-12-31 0001705682 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-01-01 2019-03-31 0001705682 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-03-31 0001705682 vntr:TronoxEuropeanPaperLaminatesBusinessMember 2019-04-26 2019-04-26 0001705682 vntr:TronoxEuropeanPaperLaminatesBusinessMember 2019-06-30 0001705682 vntr:TronoxEuropeanPaperLaminatesBusinessMember 2019-04-26 0001705682 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0001705682 srt:MaximumMember 2019-01-01 2019-06-30 0001705682 2018-01-01 2018-12-31 0001705682 vntr:TitaniumDioxideMember 2019-04-01 2019-06-30 0001705682 vntr:WaterTreatmentMember vntr:TitaniumDioxideMember 2019-04-01 2019-06-30 0001705682 vntr:ColorPigmentsMember vntr:PerformanceAdditivesMember 2019-01-01 2019-06-30 0001705682 vntr:WaterTreatmentMember 2019-04-01 2019-06-30 0001705682 vntr:WaterTreatmentMember vntr:PerformanceAdditivesMember 2019-01-01 2019-06-30 0001705682 vntr:FunctionalAdditivesMember vntr:TitaniumDioxideMember 2019-04-01 2019-06-30 0001705682 vntr:TimberTreatmentMember vntr:PerformanceAdditivesMember 2019-01-01 2019-06-30 0001705682 vntr:TiO2Member vntr:TitaniumDioxideMember 2019-04-01 2019-06-30 0001705682 vntr:WaterTreatmentMember vntr:TitaniumDioxideMember 2019-01-01 2019-06-30 0001705682 vntr:PerformanceAdditivesMember 2019-04-01 2019-06-30 0001705682 vntr:ColorPigmentsMember vntr:PerformanceAdditivesMember 2019-04-01 2019-06-30 0001705682 vntr:FunctionalAdditivesMember vntr:PerformanceAdditivesMember 2019-04-01 2019-06-30 0001705682 vntr:WaterTreatmentMember 2019-01-01 2019-06-30 0001705682 vntr:ColorPigmentsMember vntr:TitaniumDioxideMember 2019-01-01 2019-06-30 0001705682 vntr:FunctionalAdditivesMember 2019-01-01 2019-06-30 0001705682 vntr:FunctionalAdditivesMember vntr:TitaniumDioxideMember 2019-01-01 2019-06-30 0001705682 vntr:TitaniumDioxideMember 2019-01-01 2019-06-30 0001705682 vntr:TimberTreatmentMember vntr:TitaniumDioxideMember 2019-04-01 2019-06-30 0001705682 vntr:TiO2Member vntr:TitaniumDioxideMember 2019-01-01 2019-06-30 0001705682 vntr:TiO2Member vntr:PerformanceAdditivesMember 2019-04-01 2019-06-30 0001705682 vntr:ColorPigmentsMember vntr:TitaniumDioxideMember 2019-04-01 2019-06-30 0001705682 vntr:TimberTreatmentMember 2019-04-01 2019-06-30 0001705682 vntr:PerformanceAdditivesMember 2019-01-01 2019-06-30 0001705682 vntr:ColorPigmentsMember 2019-04-01 2019-06-30 0001705682 vntr:ColorPigmentsMember 2019-01-01 2019-06-30 0001705682 vntr:FunctionalAdditivesMember vntr:PerformanceAdditivesMember 2019-01-01 2019-06-30 0001705682 vntr:WaterTreatmentMember vntr:PerformanceAdditivesMember 2019-04-01 2019-06-30 0001705682 vntr:TimberTreatmentMember vntr:PerformanceAdditivesMember 2019-04-01 2019-06-30 0001705682 vntr:TiO2Member 2019-04-01 2019-06-30 0001705682 vntr:TiO2Member 2019-01-01 2019-06-30 0001705682 vntr:FunctionalAdditivesMember 2019-04-01 2019-06-30 0001705682 vntr:TimberTreatmentMember vntr:TitaniumDioxideMember 2019-01-01 2019-06-30 0001705682 vntr:TiO2Member vntr:PerformanceAdditivesMember 2019-01-01 2019-06-30 0001705682 vntr:TimberTreatmentMember 2019-01-01 2019-06-30 0001705682 srt:MinimumMember 2019-01-01 2019-06-30 0001705682 vntr:WaterTreatmentMember 2018-01-01 2018-06-30 0001705682 vntr:TitaniumDioxideMember 2018-01-01 2018-06-30 0001705682 vntr:FunctionalAdditivesMember 2018-01-01 2018-06-30 0001705682 vntr:TiO2Member vntr:TitaniumDioxideMember 2018-04-01 2018-06-30 0001705682 vntr:WaterTreatmentMember vntr:PerformanceAdditivesMember 2018-01-01 2018-06-30 0001705682 vntr:PerformanceAdditivesMember 2018-01-01 2018-06-30 0001705682 vntr:ColorPigmentsMember 2018-01-01 2018-06-30 0001705682 vntr:TiO2Member vntr:PerformanceAdditivesMember 2018-04-01 2018-06-30 0001705682 vntr:TimberTreatmentMember 2018-04-01 2018-06-30 0001705682 vntr:ColorPigmentsMember 2018-04-01 2018-06-30 0001705682 vntr:FunctionalAdditivesMember vntr:PerformanceAdditivesMember 2018-01-01 2018-06-30 0001705682 vntr:ColorPigmentsMember vntr:TitaniumDioxideMember 2018-01-01 2018-06-30 0001705682 vntr:WaterTreatmentMember vntr:PerformanceAdditivesMember 2018-04-01 2018-06-30 0001705682 vntr:TiO2Member 2018-01-01 2018-06-30 0001705682 vntr:WaterTreatmentMember 2018-04-01 2018-06-30 0001705682 vntr:TimberTreatmentMember 2018-01-01 2018-06-30 0001705682 vntr:TiO2Member 2018-04-01 2018-06-30 0001705682 vntr:TitaniumDioxideMember 2018-04-01 2018-06-30 0001705682 vntr:TiO2Member vntr:TitaniumDioxideMember 2018-01-01 2018-06-30 0001705682 vntr:WaterTreatmentMember vntr:TitaniumDioxideMember 2018-01-01 2018-06-30 0001705682 vntr:WaterTreatmentMember vntr:TitaniumDioxideMember 2018-04-01 2018-06-30 0001705682 vntr:PerformanceAdditivesMember 2018-04-01 2018-06-30 0001705682 vntr:ColorPigmentsMember vntr:TitaniumDioxideMember 2018-04-01 2018-06-30 0001705682 vntr:FunctionalAdditivesMember vntr:TitaniumDioxideMember 2018-04-01 2018-06-30 0001705682 vntr:ColorPigmentsMember vntr:PerformanceAdditivesMember 2018-01-01 2018-06-30 0001705682 vntr:FunctionalAdditivesMember vntr:PerformanceAdditivesMember 2018-04-01 2018-06-30 0001705682 vntr:TimberTreatmentMember vntr:TitaniumDioxideMember 2018-01-01 2018-06-30 0001705682 vntr:TimberTreatmentMember vntr:PerformanceAdditivesMember 2018-01-01 2018-06-30 0001705682 vntr:TimberTreatmentMember vntr:TitaniumDioxideMember 2018-04-01 2018-06-30 0001705682 vntr:FunctionalAdditivesMember 2018-04-01 2018-06-30 0001705682 vntr:ColorPigmentsMember vntr:PerformanceAdditivesMember 2018-04-01 2018-06-30 0001705682 vntr:TimberTreatmentMember vntr:PerformanceAdditivesMember 2018-04-01 2018-06-30 0001705682 vntr:TiO2Member vntr:PerformanceAdditivesMember 2018-01-01 2018-06-30 0001705682 vntr:FunctionalAdditivesMember vntr:TitaniumDioxideMember 2018-01-01 2018-06-30 0001705682 vntr:OtherGeographicalLocationMember vntr:PerformanceAdditivesMember 2019-04-01 2019-06-30 0001705682 vntr:OtherGeographicalLocationMember 2019-04-01 2019-06-30 0001705682 srt:EuropeMember 2019-01-01 2019-06-30 0001705682 vntr:OtherGeographicalLocationMember 2019-01-01 2019-06-30 0001705682 srt:EuropeMember vntr:TitaniumDioxideMember 2019-01-01 2019-06-30 0001705682 srt:NorthAmericaMember vntr:PerformanceAdditivesMember 2019-01-01 2019-06-30 0001705682 srt:AsiaMember vntr:PerformanceAdditivesMember 2019-04-01 2019-06-30 0001705682 vntr:OtherGeographicalLocationMember vntr:TitaniumDioxideMember 2019-01-01 2019-06-30 0001705682 srt:NorthAmericaMember 2019-04-01 2019-06-30 0001705682 srt:AsiaMember 2019-04-01 2019-06-30 0001705682 srt:NorthAmericaMember vntr:TitaniumDioxideMember 2019-04-01 2019-06-30 0001705682 vntr:OtherGeographicalLocationMember vntr:TitaniumDioxideMember 2019-04-01 2019-06-30 0001705682 srt:EuropeMember vntr:TitaniumDioxideMember 2019-04-01 2019-06-30 0001705682 srt:EuropeMember 2019-04-01 2019-06-30 0001705682 srt:NorthAmericaMember 2019-01-01 2019-06-30 0001705682 srt:NorthAmericaMember vntr:TitaniumDioxideMember 2019-01-01 2019-06-30 0001705682 srt:NorthAmericaMember vntr:PerformanceAdditivesMember 2019-04-01 2019-06-30 0001705682 vntr:OtherGeographicalLocationMember vntr:PerformanceAdditivesMember 2019-01-01 2019-06-30 0001705682 srt:AsiaMember 2019-01-01 2019-06-30 0001705682 srt:EuropeMember vntr:PerformanceAdditivesMember 2019-01-01 2019-06-30 0001705682 srt:AsiaMember vntr:TitaniumDioxideMember 2019-01-01 2019-06-30 0001705682 srt:EuropeMember vntr:PerformanceAdditivesMember 2019-04-01 2019-06-30 0001705682 srt:AsiaMember vntr:PerformanceAdditivesMember 2019-01-01 2019-06-30 0001705682 srt:AsiaMember vntr:TitaniumDioxideMember 2019-04-01 2019-06-30 0001705682 srt:AsiaMember 2018-04-01 2018-06-30 0001705682 srt:NorthAmericaMember vntr:PerformanceAdditivesMember 2018-01-01 2018-06-30 0001705682 srt:AsiaMember 2018-01-01 2018-06-30 0001705682 vntr:OtherGeographicalLocationMember 2018-01-01 2018-06-30 0001705682 srt:EuropeMember vntr:TitaniumDioxideMember 2018-04-01 2018-06-30 0001705682 srt:NorthAmericaMember 2018-01-01 2018-06-30 0001705682 vntr:OtherGeographicalLocationMember vntr:TitaniumDioxideMember 2018-04-01 2018-06-30 0001705682 srt:NorthAmericaMember vntr:TitaniumDioxideMember 2018-01-01 2018-06-30 0001705682 srt:AsiaMember vntr:TitaniumDioxideMember 2018-01-01 2018-06-30 0001705682 srt:AsiaMember vntr:PerformanceAdditivesMember 2018-01-01 2018-06-30 0001705682 srt:NorthAmericaMember vntr:PerformanceAdditivesMember 2018-04-01 2018-06-30 0001705682 srt:EuropeMember vntr:TitaniumDioxideMember 2018-01-01 2018-06-30 0001705682 srt:EuropeMember vntr:PerformanceAdditivesMember 2018-04-01 2018-06-30 0001705682 srt:NorthAmericaMember 2018-04-01 2018-06-30 0001705682 srt:NorthAmericaMember vntr:TitaniumDioxideMember 2018-04-01 2018-06-30 0001705682 srt:AsiaMember vntr:PerformanceAdditivesMember 2018-04-01 2018-06-30 0001705682 vntr:OtherGeographicalLocationMember vntr:PerformanceAdditivesMember 2018-01-01 2018-06-30 0001705682 vntr:OtherGeographicalLocationMember 2018-04-01 2018-06-30 0001705682 vntr:OtherGeographicalLocationMember vntr:TitaniumDioxideMember 2018-01-01 2018-06-30 0001705682 srt:EuropeMember 2018-04-01 2018-06-30 0001705682 vntr:OtherGeographicalLocationMember vntr:PerformanceAdditivesMember 2018-04-01 2018-06-30 0001705682 srt:AsiaMember vntr:TitaniumDioxideMember 2018-04-01 2018-06-30 0001705682 srt:EuropeMember 2018-01-01 2018-06-30 0001705682 srt:EuropeMember vntr:PerformanceAdditivesMember 2018-01-01 2018-06-30 0001705682 vntr:PacificIronProductsMember 2019-01-01 2019-06-30 0001705682 vntr:VianceMember 2019-01-01 2019-06-30 0001705682 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2019-01-01 2019-06-30 0001705682 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2018-01-01 2018-06-30 0001705682 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2019-04-01 2019-06-30 0001705682 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2018-04-01 2018-06-30 0001705682 vntr:Initiatives2019Member 2018-12-31 0001705682 vntr:Initiatives2018Member 2018-12-31 0001705682 vntr:Initiatives2019Member 2019-06-30 0001705682 vntr:Initiatives2017AndPriorMember 2018-12-31 0001705682 vntr:Initiatives2018Member 2019-06-30 0001705682 vntr:Initiatives2017AndPriorMember 2019-06-30 0001705682 vntr:CalaisFranceMember vntr:TitaniumDioxideMember 2019-04-01 2019-06-30 0001705682 vntr:PoriFinlandMember srt:ScenarioForecastMember us-gaap:FacilityClosingMember vntr:TitaniumDioxideMember 2019-07-01 2024-12-31 0001705682 vntr:BeltsvilleMarylandMember 2019-04-01 2019-06-30 0001705682 us-gaap:EmployeeSeveranceMember 2019-01-01 2019-06-30 0001705682 vntr:AugustaGeorgiaMember 2018-04-01 2018-06-30 0001705682 vntr:PoriFinlandMember us-gaap:FacilityClosingMember vntr:TitaniumDioxideMember 2019-01-01 2019-06-30 0001705682 vntr:PoriFinlandMember us-gaap:FacilityClosingMember vntr:TitaniumDioxideMember 2019-04-01 2019-06-30 0001705682 vntr:CalaisFranceMember vntr:TitaniumDioxideMember 2018-01-01 2018-06-30 0001705682 country:ZA vntr:TitaniumDioxideMember 2019-04-01 2019-06-30 0001705682 country:ZA vntr:TitaniumDioxideMember 2018-04-01 2018-06-30 0001705682 vntr:St.LouisAndEastonMember 2018-01-01 2018-06-30 0001705682 vntr:CalaisFranceMember vntr:TitaniumDioxideMember 2018-04-01 2018-06-30 0001705682 vntr:CalaisFranceMember vntr:TitaniumDioxideMember 2019-06-30 0001705682 vntr:BeltsvilleMarylandMember 2019-01-01 2019-06-30 0001705682 vntr:CalaisFranceMember vntr:TitaniumDioxideMember 2019-01-01 2019-06-30 0001705682 vntr:PoriFinlandMember us-gaap:FacilityClosingMember vntr:TitaniumDioxideMember 2019-06-30 0001705682 vntr:St.LouisAndEastonMember 2018-04-01 2018-06-30 0001705682 vntr:AugustaGeorgiaMember 2019-04-01 2019-06-30 0001705682 us-gaap:EmployeeSeveranceMember 2019-06-30 0001705682 vntr:St.LouisAndEastonMember 2019-04-01 2019-06-30 0001705682 country:ZA vntr:TitaniumDioxideMember 2018-01-01 2018-06-30 0001705682 us-gaap:EmployeeSeveranceMember vntr:Initiatives2019Member 2019-01-01 2019-06-30 0001705682 us-gaap:OtherRestructuringMember vntr:Initiatives2018AndPriorMember 2019-01-01 2019-06-30 0001705682 vntr:Initiatives2019Member 2019-01-01 2019-06-30 0001705682 vntr:Initiatives2018AndPriorMember 2019-01-01 2019-06-30 0001705682 us-gaap:OtherRestructuringMember 2019-06-30 0001705682 us-gaap:EmployeeSeveranceMember vntr:Initiatives2018AndPriorMember 2019-01-01 2019-06-30 0001705682 us-gaap:OtherRestructuringMember 2018-12-31 0001705682 us-gaap:EmployeeSeveranceMember 2018-12-31 0001705682 us-gaap:OtherRestructuringMember vntr:Initiatives2019Member 2019-01-01 2019-06-30 0001705682 vntr:St.LouisAndEastonMember 2019-01-01 2019-06-30 0001705682 country:ZA vntr:TitaniumDioxideMember 2019-01-01 2019-06-30 0001705682 vntr:AugustaGeorgiaMember 2018-01-01 2018-06-30 0001705682 vntr:AugustaGeorgiaMember 2019-01-01 2019-06-30 0001705682 us-gaap:OtherDebtSecuritiesMember 2019-06-30 0001705682 vntr:TermLoanFacilityMember 2019-06-30 0001705682 us-gaap:SeniorNotesMember 2019-06-30 0001705682 us-gaap:SeniorNotesMember 2018-12-31 0001705682 vntr:TermLoanFacilityMember 2018-12-31 0001705682 us-gaap:OtherDebtSecuritiesMember 2018-12-31 0001705682 vntr:TermLoanFacilityMember 2017-08-08 2017-08-08 0001705682 us-gaap:SeniorNotesMember vntr:PriorToJuly152020Member 2017-07-14 2017-07-14 0001705682 vntr:TermLoanFacilityMember 2017-08-08 0001705682 vntr:AssetBasedLendingFacilityMember 2017-08-08 2017-08-08 0001705682 us-gaap:SeniorNotesMember 2017-07-14 0001705682 vntr:AssetBasedLendingFacilityMember us-gaap:LineOfCreditMember 2019-06-30 0001705682 vntr:TermLoanFacilityMember us-gaap:FederalFundsEffectiveSwapRateMember 2017-08-08 2017-08-08 0001705682 us-gaap:SeniorNotesMember vntr:DebtInstrumentRedemptionPeriodUpOnOccurrenceCertainChangeOfControlEventsMember 2017-07-14 2017-07-14 0001705682 vntr:TermLoanFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2017-08-08 2017-08-08 0001705682 vntr:SeniorNotesAndTermLoanFacilityMember 2019-06-30 0001705682 vntr:SeniorCreditFacilitiesMember 2017-08-08 0001705682 vntr:AssetBasedLendingFacilityMember 2019-06-20 0001705682 vntr:AssetBasedLendingFacilityMember 2017-08-08 0001705682 srt:MinimumMember vntr:AssetBasedLendingFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2017-08-08 2017-08-08 0001705682 srt:MaximumMember vntr:AssetBasedLendingFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2017-08-08 2017-08-08 0001705682 us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0001705682 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2019-06-30 0001705682 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001705682 us-gaap:OtherNoncurrentAssetsMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001705682 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2019-01-01 2019-06-30 0001705682 us-gaap:OtherNoncurrentAssetsMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0001705682 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2018-12-31 0001705682 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-01-01 2019-06-30 0001705682 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-01-01 2018-06-30 0001705682 country:US 2017-12-31 0001705682 us-gaap:StockCompensationPlanMember 2019-04-01 2019-06-30 0001705682 us-gaap:StockCompensationPlanMember 2018-04-01 2018-06-30 0001705682 us-gaap:StockCompensationPlanMember 2018-01-01 2018-06-30 0001705682 us-gaap:StockCompensationPlanMember 2019-01-01 2019-06-30 0001705682 vntr:NesteEngineeringServicesArbitrationMember 2018-12-19 0001705682 vntr:NesteEngineeringServicesMember vntr:NesteEngineeringServicesArbitrationMember us-gaap:SubsequentEventMember 2019-07-02 2019-07-02 0001705682 vntr:TronoxLitigationMember 2019-05-14 2019-05-14 0001705682 vntr:TronoxLimitedMember 2018-07-14 2018-07-14 0001705682 vntr:TronoxLitigationMember 2019-06-17 2019-06-17 0001705682 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-06-30 0001705682 us-gaap:AccumulatedTranslationAdjustmentMember 2019-01-01 2019-06-30 0001705682 vntr:AccumulatedOtherComprehensiveIncomeLossUnconsolidatedAffiliatesIncludingPortionAttributableToParentMember 2018-12-31 0001705682 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-01-01 2019-06-30 0001705682 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-06-30 0001705682 vntr:AccumulatedOtherComprehensiveIncomeLossUnconsolidatedAffiliatesIncludingPortionAttributableToParentMember 2019-01-01 2019-06-30 0001705682 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-31 0001705682 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-31 0001705682 us-gaap:AociAttributableToNoncontrollingInterestMember 2019-01-01 2019-06-30 0001705682 vntr:AccumulatedOtherComprehensiveIncomeLossUnconsolidatedAffiliatesIncludingPortionAttributableToParentMember 2019-06-30 0001705682 us-gaap:AociAttributableToNoncontrollingInterestMember 2019-06-30 0001705682 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-06-30 0001705682 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-12-31 0001705682 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-06-30 0001705682 us-gaap:AociAttributableToNoncontrollingInterestMember 2018-12-31 0001705682 us-gaap:AccumulatedTranslationAdjustmentMember 2019-06-30 0001705682 us-gaap:AccumulatedTranslationAdjustmentMember 2018-06-30 0001705682 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-06-30 0001705682 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-06-30 0001705682 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2018-01-01 2018-06-30 0001705682 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-04-01 2019-06-30 0001705682 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0001705682 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-04-01 2018-06-30 0001705682 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-06-30 0001705682 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2019-04-01 2019-06-30 0001705682 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0001705682 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2018-04-01 2018-06-30 0001705682 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2018-01-01 2018-06-30 0001705682 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2019-01-01 2019-06-30 0001705682 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2019-04-01 2019-06-30 0001705682 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2019-01-01 2019-06-30 0001705682 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-01-01 2018-06-30 0001705682 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2018-04-01 2018-06-30 0001705682 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-06-30 0001705682 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-06-30 0001705682 us-gaap:AociAttributableToNoncontrollingInterestMember 2018-01-01 2018-06-30 0001705682 vntr:AccumulatedOtherComprehensiveIncomeLossUnconsolidatedAffiliatesIncludingPortionAttributableToParentMember 2018-06-30 0001705682 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-01-01 2018-06-30 0001705682 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-01-01 2018-06-30 0001705682 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-06-30 0001705682 vntr:AccumulatedOtherComprehensiveIncomeLossUnconsolidatedAffiliatesIncludingPortionAttributableToParentMember 2018-01-01 2018-06-30 0001705682 us-gaap:AccumulatedTranslationAdjustmentMember 2018-01-01 2018-06-30 0001705682 us-gaap:AociAttributableToNoncontrollingInterestMember 2017-12-31 0001705682 vntr:AccumulatedOtherComprehensiveIncomeLossUnconsolidatedAffiliatesIncludingPortionAttributableToParentMember 2017-12-31 0001705682 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2017-12-31 0001705682 us-gaap:AociAttributableToNoncontrollingInterestMember 2018-06-30 0001705682 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-12-31 0001705682 us-gaap:AccumulatedTranslationAdjustmentMember 2017-12-31 0001705682 us-gaap:OperatingSegmentsMember 2018-04-01 2018-06-30 0001705682 us-gaap:OperatingSegmentsMember vntr:PerformanceAdditivesMember 2019-01-01 2019-06-30 0001705682 us-gaap:OperatingSegmentsMember vntr:PerformanceAdditivesMember 2019-04-01 2019-06-30 0001705682 us-gaap:CorporateAndOtherMember 2018-01-01 2018-06-30 0001705682 us-gaap:OperatingSegmentsMember vntr:TitaniumDioxideMember 2019-01-01 2019-06-30 0001705682 us-gaap:OperatingSegmentsMember 2019-01-01 2019-06-30 0001705682 us-gaap:OperatingSegmentsMember 2019-04-01 2019-06-30 0001705682 us-gaap:CorporateAndOtherMember 2018-04-01 2018-06-30 0001705682 us-gaap:OperatingSegmentsMember vntr:PerformanceAdditivesMember 2018-01-01 2018-06-30 0001705682 us-gaap:OperatingSegmentsMember vntr:TitaniumDioxideMember 2019-04-01 2019-06-30 0001705682 us-gaap:CorporateAndOtherMember 2019-01-01 2019-06-30 0001705682 us-gaap:OperatingSegmentsMember 2018-01-01 2018-06-30 0001705682 us-gaap:OperatingSegmentsMember vntr:PerformanceAdditivesMember 2018-04-01 2018-06-30 0001705682 us-gaap:CorporateAndOtherMember 2019-04-01 2019-06-30 0001705682 us-gaap:OperatingSegmentsMember vntr:TitaniumDioxideMember 2018-01-01 2018-06-30 0001705682 us-gaap:OperatingSegmentsMember vntr:TitaniumDioxideMember 2018-04-01 2018-06-30 iso4217:USD xbrli:shares xbrli:shares vntr:facility iso4217:USD xbrli:pure vntr:Installment vntr:position vntr:derivative_instrument vntr:segment iso4217:EUR
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q

   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019
OR
   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-38176
_________________________________
logo2019q210qimage1a01.jpg
Venator Materials PLC
(Exact name of registrant as specified in its charter)
_________________________________
England and Wales
98-1373159
(State or other jurisdiction
(I.R.S. Employer Identification No.)
of incorporation or organization)
 
Titanium House, Hanzard Drive, Wynyard Park,
Stockton-On-Tees, TS22, 5FD, United Kingdom
44 (01740 608 001
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Ordinary Shares, $0.001 par value per share
VNTR
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company," in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes  No ☑
_________________________________
As of July 30, 2019, the registrant had outstanding 106,558,572 ordinary shares, $0.001 par value per share.

 


Table of Contents


TABLE OF CONTENTS
 
 
Page
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



1


Table of Contents

GENERAL

Except when the context otherwise requires or where otherwise indicated, (1) all references to "Venator," the "Company," "we," "us" and "our" refer to Venator Materials PLC and its subsidiaries, (2) all references to "Huntsman" refer to Huntsman Corporation and its subsidiaries, (3) all references to the "Titanium Dioxide" segment or business refer to the titanium dioxide ("TiO2") business of Venator, (4) all references to the "Performance Additives" segment or business refer to the functional additives, color pigments, timber treatment and water treatment businesses of Venator, and (5) we refer to the internal reorganization prior to our initial public offering ("IPO"), the separation transactions initiated to separate the Venator business from Huntsman’s other businesses, including the entry into and effectiveness of the separation agreement and ancillary agreements, and the financing arrangements and debt, comprising the senior secured term loan facility (the "Term Loan Facility"), the asset-based revolving facility (the "ABL Facility" and, together with the Term Loan Facility, the "Senior Credit Facilities") and the 5.75% senior notes due 2025 (the "Senior Notes"), including the use of the net proceeds of the Senior Credit Facilities and the Senior Notes, which were used to repay intercompany debt we owed to Huntsman and to pay related fees and expenses, as the "separation," which occurred on August 8, 2017.

NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain information set forth in this report contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934 (the "Exchange Act"). All statements other than historical or current factual information are forward-looking statements, including without limitation statements regarding: projections of revenue, expenses, profit, margins, tax rates, tax provisions, cash flows, pension and benefit obligations and funding requirements, our liquidity position or other projected financial measures; management’s plans and strategies for future operations, including statements relating to anticipated operating performance, cost reductions, construction cost estimates, restructuring activities, new product and service developments, competitive strengths or market position, acquisitions, divestitures, spin-offs or other distributions, strategic opportunities, securities offerings, share repurchases, dividends and executive compensation; growth, declines and other trends in markets we sell into; new or modified laws, regulations and accounting pronouncements; legal proceedings, environmental, health and safety ("EHS") matters, tax audits and assessments and other contingent liabilities; foreign currency exchange rates and fluctuations in those rates; general economic and capital markets conditions; the timing of any of the foregoing; assumptions underlying any of the foregoing; and any other statements that address events or developments that we intend or believe will or may occur in the future. In some cases, forward-looking statements can be identified by terminology such as "believes," "expects," "may," "will," "should," "anticipates," "estimates" or "intends" or the negative of such terms or other comparable terminology, or by discussions of strategy. We may also make additional forward-looking statements from time to time. All such subsequent forward-looking statements, whether written or oral, by us or on our behalf, are also expressly qualified by these cautionary statements.
Forward-looking statements are based on certain assumptions and expectations of future events which may not be accurate or realized. Forward-looking statements also involve risks and uncertainties, many of which are beyond our control. Important factors that may materially affect such forward-looking statements and projections include:
 
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;

2


Table of Contents

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.

All forward-looking statements, including, without limitation, management’s examination of historical operating trends, are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them, but there can be no assurance that management’s expectations, beliefs and projections will result or be achieved. All forward-looking statements apply only as of the date made. We undertake no obligation to publicly update or revise forward-looking statements whether because of new information, future events or otherwise, except as required by securities and other applicable law.
There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in or contemplated by this report. Any forward-looking statements should be considered in light of the risks set forth in "Part II. Item 1A. Risk Factors."

3


Table of Contents


PART I – FINANCIAL INFORMATION
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

VENATOR MATERIALS PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions, except par value)
June 30, 2019
 
December 31, 2018
ASSETS
Current assets:
 
 
 
Cash and cash equivalents(a)
$
50

 
$
165

Accounts receivable (net of allowance for doubtful accounts of $5, each)(a)
423

 
351

Inventories(a)
508

 
538

Prepaid expenses
9

 
20

Other current assets
66

 
51

Total current assets
1,056

 
1,125

Property, plant and equipment, net(a)
965

 
994

Operating lease right-of-use assets
41

 

Intangible assets, net(a)
23

 
16

Investment in unconsolidated affiliates
87

 
83

Deferred income taxes
189

 
178

Other noncurrent assets
93

 
89

Total assets
$
2,454

 
$
2,485

LIABILITIES AND EQUITY
Current liabilities:
 
 
 
Accounts payable(a)
$
299

 
$
382

Accounts payable to affiliates
14

 
18

Accrued liabilities(a)
116

 
135

Current operating lease liability
9

 

Current portion of debt(a)
32

 
8

Total current liabilities
470

 
543

Long-term debt
738

 
740

Operating lease liability
34

 

Other noncurrent liabilities
292

 
313

Noncurrent payable to affiliates
34

 
34

Total liabilities
1,568

 
1,630

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
1,319

 
1,316

Retained deficit
(78
)
 
(96
)
Accumulated other comprehensive loss
(362
)
 
(373
)
Total Venator Materials PLC shareholders' equity
879

 
847

Noncontrolling interest in subsidiaries
7

 
8

Total equity
886

 
855

Total liabilities and equity
$
2,454

 
$
2,485

 
 
 
 
 
(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: $3 and $5 of cash and cash equivalents; $4 and $5 of accounts receivable, net; $1 each of inventories; $5 each of property, plant and equipment, net; $13 and $14 of intangible assets, net; $1 each of accounts payable; $3 and $4 of accrued liabilities; and $2 each of current portion of debt. See "Note 6. Variable Interest Entities."

See notes to unaudited condensed consolidated financial statements.

4


Table of Contents

VENATOR MATERIALS PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
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
$
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

 
136

 
12

 
145

Other operating (income) expense, net

 
(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
$
0.20

 
$
1.84

 
$
0.17

 
$
2.58

Income attributable to Venator Materials PLC ordinary shareholders, diluted
$
0.20

 
$
1.84

 
$
0.17

 
$
2.57


See notes to unaudited condensed consolidated financial statements.

5


Table of Contents

VENATOR MATERIALS PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
 
Three months ended
June 30,
 
Six months ended
June 30,
(Dollars in millions)
2019
 
2018
 
2019
 
2018
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


See notes to unaudited condensed consolidated financial statements.

6


Table of Contents

VENATOR MATERIALS PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(Unaudited)
 
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
106

$

 
$
1,316

 
$
(96
)
 
$
(373
)
 
$
8

 
$
855

Net (loss) income


 

 
(3
)
 

 
1

 
(2
)
Other comprehensive income, net of tax


 

 

 
19

 

 
19

Dividends paid to noncontrolling interests


 

 

 

 
(1
)
 
(1
)
Activity related to stock plans
1


 
1

 

 

 

 
1

Balance, March 31, 2019
107

$

 
$
1,317

 
$
(99
)
 
$
(354
)
 
$
8

 
$
872

Net income


 

 
21

 

 
1

 
22

Other comprehensive loss, net of tax


 

 

 
(8
)
 

 
(8
)
Dividends paid to noncontrolling interests


 

 

 

 
(2
)
 
(2
)
Activity related to stock plans


 
2

 

 

 

 
2

Balance, June 30, 2019
107

$

 
$
1,319

 
$
(78
)
 
$
(362
)
 
$
7

 
$
886


 
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
106

$

 
$
1,311

 
$
67

 
$
(283
)
 
$
10

 
$
1,105

Net income


 

 
78

 

 
2

 
80

Other comprehensive income, net of tax


 

 

 
53

 

 
53

Dividends paid to noncontrolling interests


 

 

 

 
(2
)
 
(2
)
Activity related to stock plans


 
1

 

 

 

 
1

Balance, March 31, 2018
106

$

 
$
1,312

 
$
145

 
$
(230
)
 
$
10

 
$
1,237

Net income


 

 
196

 

 
2

 
198

Other comprehensive loss, net of tax


 

 

 
(99
)
 

 
(99
)
Dividends paid to noncontrolling interests


 

 

 

 
(3
)
 
(3
)
Activity related to stock plans


 
1

 

 

 

 
1

Balance, June 30, 2018
106

$

 
$
1,313

 
$
341

 
$
(329
)
 
$
9

 
$
1,334


See notes to unaudited condensed consolidated financial statements.

7


Table of Contents

VENATOR MATERIALS PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
Six months ended June 30,
(Dollars in millions)
2019
 
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

 
(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

 

Other, net
(1
)
 

Net cash used in investing activities
(82
)
 
(162
)
Financing Activities:
 
 
 
Net borrowings under ABL Facility
24

 

Repayment of third-party debt
(2
)
 
(9
)
Dividends paid to noncontrolling interests
(3
)
 
(5
)
Other, net
(2
)
 

Net cash provided by (used in) financing activities
17

 
(14
)
Effect of exchange rate changes on cash

 
(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


See notes to unaudited condensed consolidated financial statements.

8


Table of Contents

VENATOR MATERIALS PLC AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

On April 26, 2019, we acquired intangible assets related to the European paper laminates product line from Tronox Limited ("Tronox") for a purchase price of 8 million payable as follows: 1 million upon completion of the acquisition and the remaining 7 million in two installments over two years. A note payable for $8 million is included within accrued liabilities and other noncurrent liabilities on our unaudited condensed consolidated balance sheets at June 30, 2019.

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.


9


Table of Contents

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.

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.


10


Table of Contents

The components of lease expense were as follows:
Lease Cost
Three months ended June 30, 2019
 
Six months ended June 30, 2019
Operating lease cost
$
3

 
$
7

Finance lease cost:
 
 
 
     Amortization of right-of-use assets
1

 
1

     Interest on lease liabilities

 

Short-term lease cost

 
1



Supplemental balance sheet information related to leases was as follows:
Leases
As of
June 30, 2019
Assets
 
    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

 
 
Liabilities
 
Operating Lease Obligation
 
Current
$
9

Non-Current
34

Total Operating Lease Liabilities
$
43

 
 
Finance Lease Obligation
 
Current
$
1

Non-Current
8

Total Finance Lease Liabilities
$
9


Cash paid for amounts included in the present value of operating lease liabilities were as follows:
Cash Flow Information
Three months ended June 30, 2019
 
Six months ended June 30, 2019
Operating cash flows from operating leases
$
3

 
$
7

Operating cash flows from finance leases
1

 
1

Financing cash flows from finance leases

 



Lease Term and Discount Rate
As of
June 30, 2019
Weighted average remaining lease term (years)
 
Operating leases
12.5

Finance leases
7.3

Weighted average discount rate
 
Operating leases
7.2
%
Financing leases
5.2
%


11


Table of Contents

Maturities of lease liabilities were as follows:
June 30, 2019
Operating Leases
 
Finance Leases
 
Total
2019 (remaining)
$
6

 
$
1

 
$
7

2020
10

 
2

 
12

2021
8

 
1

 
9

2022
6

 
1

 
7

2023
4

 
1

 
5

After 2023
38

 
4

 
42

Total lease payments
$
72

 
$
10

 
$
82

Less: Interest
29

 
1

 
30

Present value of lease liabilities
$
43

 
$
9

 
$
52



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:
 December 31,
Operating Leases
 
Capital Leases
2019
$
13

 
$
1

2020
11

 
2

2021
9

 
1

2022
6

 
1

2023
4

 
1

Thereafter
40

 
7

Total
$
83

 
$
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



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.


12


Table of Contents

The following table disaggregates our revenue by major geographical region for the three and six months ended June 30, 2019 and 2018:
 
 
Three Months Ended June 30, 2019
 
Six Months Ended June 30, 2019
 
 
Titanium Dioxide
 
Performance Additives
 
Total
 
Titanium Dioxide
 
Performance Additives
 
Total
Europe
 
$
215

 
$
49

 
$
264

 
$
428

 
$
104

 
$
532

North America
 
88

 
65

 
153

 
165

 
122

 
287

Asia
 
92

 
22

 
114

 
184

 
43

 
227

Other
 
44

 
3

 
47

 
87

 
7

 
94

Total Revenues
 
$
439

 
$
139

 
$
578

 
$
864

 
$
276

 
$
1,140


 
 
Three Months Ended June 30, 2018
 
Six Months Ended June 30, 2018
 
 
Titanium Dioxide
 
Performance Additives
 
Total
 
Titanium Dioxide
 
Performance Additives
 
Total
Europe
 
$
229

 
$
59

 
$
288

 
$
470

 
$
117

 
$
587

North America
 
80

 
78

 
158

 
151

 
155

 
306

Asia
 
96

 
30

 
126

 
192

 
57

 
249

Other
 
50

 
4

 
54

 
98

 
8

 
106

Total Revenues
 
$
455

 
$
171

 
$
626

 
$
911

 
$
337

 
$
1,248



The following table disaggregates our revenue by major product line for the three and six months ended June 30, 2019 and 2018:
 
 
Three Months Ended June 30, 2019
 
Six Months Ended June 30, 2019
 
 
Titanium Dioxide
 
Performance Additives
 
Total
 
Titanium Dioxide
 
Performance Additives
 
Total
TiO2
 
$
439

 
$

 
$
439

 
$
864

 
$

 
$
864

Color Pigments
 

 
70

 
70

 

 
140

 
140

Functional Additives
 

 
33

 
33

 

 
65

 
65

Timber Treatment
 

 
31

 
31

 

 
60

 
60

Water Treatment
 

 
5

 
5

 

 
11

 
11

Total Revenues
 
$
439

 
$
139

 
$
578

 
$
864

 
$
276

 
$
1,140



 
 
Three Months Ended June 30, 2018
 
Six Months Ended June 30, 2018
 
 
Titanium Dioxide
 
Performance Additives
 
Total
 
Titanium Dioxide
 
Performance Additives
 
Total
TiO2
 
$
455

 
$

 
$
455

 
$
911

 
$

 
$
911

Color Pigments
 

 
84

 
84

 

 
166

 
166

Functional Additives
 

 
39

 
39

 

 
80

 
80

Timber Treatment
 

 
41

 
41

 

 
78

 
78

Water Treatment
 

 
7

 
7

 

 
13

 
13

Total Revenues
 
$
455

 
$
171

 
$
626

 
$
911

 
$
337

 
$
1,248



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

13


Table of Contents

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.

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:
 
June 30, 2019
 
December 31, 2018
Raw materials and supplies
$
163

 
$
165

Work in process
62

 
56

Finished goods
283

 
317