0001705682false--12-31106,564,8282019Q300000000000000000017056822019-01-012019-09-30xbrli:shares00017056822019-10-30iso4217:USD00017056822019-09-3000017056822018-12-31iso4217:USDxbrli:shares0001705682us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2018-12-310001705682us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2019-09-3000017056822019-07-012019-09-3000017056822018-07-012018-09-3000017056822018-01-012018-09-300001705682vntr:OrdinarySharesMember2018-12-310001705682us-gaap:AdditionalPaidInCapitalMember2018-12-310001705682us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2018-12-310001705682us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001705682us-gaap:NoncontrollingInterestMember2018-12-310001705682us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2019-01-012019-03-310001705682us-gaap:NoncontrollingInterestMember2019-01-012019-03-3100017056822019-01-012019-03-310001705682us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-03-310001705682vntr:OrdinarySharesMember2019-01-012019-03-310001705682us-gaap:AdditionalPaidInCapitalMember2019-01-012019-03-310001705682vntr:OrdinarySharesMember2019-03-310001705682us-gaap:AdditionalPaidInCapitalMember2019-03-310001705682us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2019-03-310001705682us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-310001705682us-gaap:NoncontrollingInterestMember2019-03-3100017056822019-03-310001705682us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2019-04-012019-06-300001705682us-gaap:NoncontrollingInterestMember2019-04-012019-06-3000017056822019-04-012019-06-300001705682us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-012019-06-300001705682vntr:OrdinarySharesMember2019-04-012019-06-300001705682us-gaap:AdditionalPaidInCapitalMember2019-04-012019-06-300001705682vntr:OrdinarySharesMember2019-06-300001705682us-gaap:AdditionalPaidInCapitalMember2019-06-300001705682us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2019-06-300001705682us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-300001705682us-gaap:NoncontrollingInterestMember2019-06-3000017056822019-06-300001705682us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2019-07-012019-09-300001705682us-gaap:NoncontrollingInterestMember2019-07-012019-09-300001705682us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300001705682us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-300001705682vntr:OrdinarySharesMember2019-09-300001705682us-gaap:AdditionalPaidInCapitalMember2019-09-300001705682us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2019-09-300001705682us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-300001705682us-gaap:NoncontrollingInterestMember2019-09-300001705682vntr:OrdinarySharesMember2017-12-310001705682us-gaap:AdditionalPaidInCapitalMember2017-12-310001705682us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2017-12-310001705682us-gaap:AccumulatedOtherComprehensiveIncomeMember2017-12-310001705682us-gaap:NoncontrollingInterestMember2017-12-3100017056822017-12-310001705682us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2018-01-012018-03-310001705682us-gaap:NoncontrollingInterestMember2018-01-012018-03-3100017056822018-01-012018-03-310001705682us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-012018-03-310001705682us-gaap:AdditionalPaidInCapitalMember2018-01-012018-03-310001705682vntr:OrdinarySharesMember2018-03-310001705682us-gaap:AdditionalPaidInCapitalMember2018-03-310001705682us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2018-03-310001705682us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-03-310001705682us-gaap:NoncontrollingInterestMember2018-03-3100017056822018-03-310001705682us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2018-04-012018-06-300001705682us-gaap:NoncontrollingInterestMember2018-04-012018-06-3000017056822018-04-012018-06-300001705682us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-04-012018-06-300001705682us-gaap:AdditionalPaidInCapitalMember2018-04-012018-06-300001705682vntr:OrdinarySharesMember2018-06-300001705682us-gaap:AdditionalPaidInCapitalMember2018-06-300001705682us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2018-06-300001705682us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-06-300001705682us-gaap:NoncontrollingInterestMember2018-06-3000017056822018-06-300001705682us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2018-07-012018-09-300001705682us-gaap:NoncontrollingInterestMember2018-07-012018-09-300001705682us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-07-012018-09-300001705682us-gaap:AdditionalPaidInCapitalMember2018-07-012018-09-300001705682vntr:OrdinarySharesMember2018-09-300001705682us-gaap:AdditionalPaidInCapitalMember2018-09-300001705682us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2018-09-300001705682us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-09-300001705682us-gaap:NoncontrollingInterestMember2018-09-3000017056822018-09-30vntr:segmentvntr:facility0001705682us-gaap:AccountingStandardsUpdate201602Member2019-01-010001705682srt:MaximumMember2019-01-012019-09-30xbrli:pure00017056822018-01-012018-12-310001705682srt:EuropeMembervntr:TitaniumDioxideMember2019-07-012019-09-300001705682vntr:PerformanceAdditivesMembersrt:EuropeMember2019-07-012019-09-300001705682srt:EuropeMember2019-07-012019-09-300001705682srt:EuropeMembervntr:TitaniumDioxideMember2019-01-012019-09-300001705682vntr:PerformanceAdditivesMembersrt:EuropeMember2019-01-012019-09-300001705682srt:EuropeMember2019-01-012019-09-300001705682srt:NorthAmericaMembervntr:TitaniumDioxideMember2019-07-012019-09-300001705682vntr:PerformanceAdditivesMembersrt:NorthAmericaMember2019-07-012019-09-300001705682srt:NorthAmericaMember2019-07-012019-09-300001705682srt:NorthAmericaMembervntr:TitaniumDioxideMember2019-01-012019-09-300001705682vntr:PerformanceAdditivesMembersrt:NorthAmericaMember2019-01-012019-09-300001705682srt:NorthAmericaMember2019-01-012019-09-300001705682vntr:TitaniumDioxideMembersrt:AsiaMember2019-07-012019-09-300001705682vntr:PerformanceAdditivesMembersrt:AsiaMember2019-07-012019-09-300001705682srt:AsiaMember2019-07-012019-09-300001705682vntr:TitaniumDioxideMembersrt:AsiaMember2019-01-012019-09-300001705682vntr:PerformanceAdditivesMembersrt:AsiaMember2019-01-012019-09-300001705682srt:AsiaMember2019-01-012019-09-300001705682vntr:OtherGeographicalLocationMembervntr:TitaniumDioxideMember2019-07-012019-09-300001705682vntr:PerformanceAdditivesMembervntr:OtherGeographicalLocationMember2019-07-012019-09-300001705682vntr:OtherGeographicalLocationMember2019-07-012019-09-300001705682vntr:OtherGeographicalLocationMembervntr:TitaniumDioxideMember2019-01-012019-09-300001705682vntr:PerformanceAdditivesMembervntr:OtherGeographicalLocationMember2019-01-012019-09-300001705682vntr:OtherGeographicalLocationMember2019-01-012019-09-300001705682vntr:TitaniumDioxideMember2019-07-012019-09-300001705682vntr:PerformanceAdditivesMember2019-07-012019-09-300001705682vntr:TitaniumDioxideMember2019-01-012019-09-300001705682vntr:PerformanceAdditivesMember2019-01-012019-09-300001705682srt:EuropeMembervntr:TitaniumDioxideMember2018-07-012018-09-300001705682vntr:PerformanceAdditivesMembersrt:EuropeMember2018-07-012018-09-300001705682srt:EuropeMember2018-07-012018-09-300001705682srt:EuropeMembervntr:TitaniumDioxideMember2018-01-012018-09-300001705682vntr:PerformanceAdditivesMembersrt:EuropeMember2018-01-012018-09-300001705682srt:EuropeMember2018-01-012018-09-300001705682srt:NorthAmericaMembervntr:TitaniumDioxideMember2018-07-012018-09-300001705682vntr:PerformanceAdditivesMembersrt:NorthAmericaMember2018-07-012018-09-300001705682srt:NorthAmericaMember2018-07-012018-09-300001705682srt:NorthAmericaMembervntr:TitaniumDioxideMember2018-01-012018-09-300001705682vntr:PerformanceAdditivesMembersrt:NorthAmericaMember2018-01-012018-09-300001705682srt:NorthAmericaMember2018-01-012018-09-300001705682vntr:TitaniumDioxideMembersrt:AsiaMember2018-07-012018-09-300001705682vntr:PerformanceAdditivesMembersrt:AsiaMember2018-07-012018-09-300001705682srt:AsiaMember2018-07-012018-09-300001705682vntr:TitaniumDioxideMembersrt:AsiaMember2018-01-012018-09-300001705682vntr:PerformanceAdditivesMembersrt:AsiaMember2018-01-012018-09-300001705682srt:AsiaMember2018-01-012018-09-300001705682vntr:OtherGeographicalLocationMembervntr:TitaniumDioxideMember2018-07-012018-09-300001705682vntr:PerformanceAdditivesMembervntr:OtherGeographicalLocationMember2018-07-012018-09-300001705682vntr:OtherGeographicalLocationMember2018-07-012018-09-300001705682vntr:OtherGeographicalLocationMembervntr:TitaniumDioxideMember2018-01-012018-09-300001705682vntr:PerformanceAdditivesMembervntr:OtherGeographicalLocationMember2018-01-012018-09-300001705682vntr:OtherGeographicalLocationMember2018-01-012018-09-300001705682vntr:TitaniumDioxideMember2018-07-012018-09-300001705682vntr:PerformanceAdditivesMember2018-07-012018-09-300001705682vntr:TitaniumDioxideMember2018-01-012018-09-300001705682vntr:PerformanceAdditivesMember2018-01-012018-09-300001705682vntr:TiO2Membervntr:TitaniumDioxideMember2019-07-012019-09-300001705682vntr:PerformanceAdditivesMembervntr:TiO2Member2019-07-012019-09-300001705682vntr:TiO2Member2019-07-012019-09-300001705682vntr:TiO2Membervntr:TitaniumDioxideMember2019-01-012019-09-300001705682vntr:PerformanceAdditivesMembervntr:TiO2Member2019-01-012019-09-300001705682vntr:TiO2Member2019-01-012019-09-300001705682vntr:ColorPigmentsMembervntr:TitaniumDioxideMember2019-07-012019-09-300001705682vntr:PerformanceAdditivesMembervntr:ColorPigmentsMember2019-07-012019-09-300001705682vntr:ColorPigmentsMember2019-07-012019-09-300001705682vntr:ColorPigmentsMembervntr:TitaniumDioxideMember2019-01-012019-09-300001705682vntr:PerformanceAdditivesMembervntr:ColorPigmentsMember2019-01-012019-09-300001705682vntr:ColorPigmentsMember2019-01-012019-09-300001705682vntr:FunctionalAdditivesMembervntr:TitaniumDioxideMember2019-07-012019-09-300001705682vntr:PerformanceAdditivesMembervntr:FunctionalAdditivesMember2019-07-012019-09-300001705682vntr:FunctionalAdditivesMember2019-07-012019-09-300001705682vntr:FunctionalAdditivesMembervntr:TitaniumDioxideMember2019-01-012019-09-300001705682vntr:PerformanceAdditivesMembervntr:FunctionalAdditivesMember2019-01-012019-09-300001705682vntr:FunctionalAdditivesMember2019-01-012019-09-300001705682vntr:TitaniumDioxideMembervntr:TimberTreatmentMember2019-07-012019-09-300001705682vntr:PerformanceAdditivesMembervntr:TimberTreatmentMember2019-07-012019-09-300001705682vntr:TimberTreatmentMember2019-07-012019-09-300001705682vntr:TitaniumDioxideMembervntr:TimberTreatmentMember2019-01-012019-09-300001705682vntr:PerformanceAdditivesMembervntr:TimberTreatmentMember2019-01-012019-09-300001705682vntr:TimberTreatmentMember2019-01-012019-09-300001705682vntr:WaterTreatmentMembervntr:TitaniumDioxideMember2019-07-012019-09-300001705682vntr:PerformanceAdditivesMembervntr:WaterTreatmentMember2019-07-012019-09-300001705682vntr:WaterTreatmentMember2019-07-012019-09-300001705682vntr:WaterTreatmentMembervntr:TitaniumDioxideMember2019-01-012019-09-300001705682vntr:PerformanceAdditivesMembervntr:WaterTreatmentMember2019-01-012019-09-300001705682vntr:WaterTreatmentMember2019-01-012019-09-300001705682vntr:TiO2Membervntr:TitaniumDioxideMember2018-07-012018-09-300001705682vntr:PerformanceAdditivesMembervntr:TiO2Member2018-07-012018-09-300001705682vntr:TiO2Member2018-07-012018-09-300001705682vntr:TiO2Membervntr:TitaniumDioxideMember2018-01-012018-09-300001705682vntr:PerformanceAdditivesMembervntr:TiO2Member2018-01-012018-09-300001705682vntr:TiO2Member2018-01-012018-09-300001705682vntr:ColorPigmentsMembervntr:TitaniumDioxideMember2018-07-012018-09-300001705682vntr:PerformanceAdditivesMembervntr:ColorPigmentsMember2018-07-012018-09-300001705682vntr:ColorPigmentsMember2018-07-012018-09-300001705682vntr:ColorPigmentsMembervntr:TitaniumDioxideMember2018-01-012018-09-300001705682vntr:PerformanceAdditivesMembervntr:ColorPigmentsMember2018-01-012018-09-300001705682vntr:ColorPigmentsMember2018-01-012018-09-300001705682vntr:FunctionalAdditivesMembervntr:TitaniumDioxideMember2018-07-012018-09-300001705682vntr:PerformanceAdditivesMembervntr:FunctionalAdditivesMember2018-07-012018-09-300001705682vntr:FunctionalAdditivesMember2018-07-012018-09-300001705682vntr:FunctionalAdditivesMembervntr:TitaniumDioxideMember2018-01-012018-09-300001705682vntr:PerformanceAdditivesMembervntr:FunctionalAdditivesMember2018-01-012018-09-300001705682vntr:FunctionalAdditivesMember2018-01-012018-09-300001705682vntr:TitaniumDioxideMembervntr:TimberTreatmentMember2018-07-012018-09-300001705682vntr:PerformanceAdditivesMembervntr:TimberTreatmentMember2018-07-012018-09-300001705682vntr:TimberTreatmentMember2018-07-012018-09-300001705682vntr:TitaniumDioxideMembervntr:TimberTreatmentMember2018-01-012018-09-300001705682vntr:PerformanceAdditivesMembervntr:TimberTreatmentMember2018-01-012018-09-300001705682vntr:TimberTreatmentMember2018-01-012018-09-300001705682vntr:WaterTreatmentMembervntr:TitaniumDioxideMember2018-07-012018-09-300001705682vntr:PerformanceAdditivesMembervntr:WaterTreatmentMember2018-07-012018-09-300001705682vntr:WaterTreatmentMember2018-07-012018-09-300001705682vntr:WaterTreatmentMembervntr:TitaniumDioxideMember2018-01-012018-09-300001705682vntr:PerformanceAdditivesMembervntr:WaterTreatmentMember2018-01-012018-09-300001705682vntr:WaterTreatmentMember2018-01-012018-09-300001705682srt:MinimumMember2019-01-012019-09-300001705682vntr:PacificIronProductsMember2019-01-012019-09-300001705682vntr:VianceMember2019-01-012019-09-300001705682us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2019-07-012019-09-300001705682us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2018-07-012018-09-300001705682us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2019-01-012019-09-300001705682us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2018-01-012018-09-300001705682country:ZAvntr:TitaniumDioxideMember2019-01-012019-09-300001705682country:ZAvntr:TitaniumDioxideMember2018-07-012018-09-300001705682country:ZAvntr:TitaniumDioxideMember2018-01-012018-09-300001705682vntr:CalaisFranceMembervntr:TitaniumDioxideMember2019-07-012019-09-300001705682vntr:CalaisFranceMembervntr:TitaniumDioxideMember2019-01-012019-09-300001705682vntr:CalaisFranceMembervntr:TitaniumDioxideMember2018-07-012018-09-300001705682vntr:CalaisFranceMembervntr:TitaniumDioxideMember2018-01-012018-09-300001705682vntr:CalaisFranceMembervntr:TitaniumDioxideMember2019-09-300001705682us-gaap:FacilityClosingMembervntr:TitaniumDioxideMembervntr:PoriFinlandMember2019-07-012019-09-300001705682us-gaap:FacilityClosingMembervntr:TitaniumDioxideMembervntr:PoriFinlandMember2019-01-012019-09-300001705682us-gaap:FacilityClosingMembervntr:TitaniumDioxideMembervntr:PoriFinlandMember2018-01-012018-09-300001705682us-gaap:FacilityClosingMembervntr:TitaniumDioxideMembervntr:PoriFinlandMember2018-07-012018-09-300001705682us-gaap:FacilityClosingMembervntr:TitaniumDioxideMembervntr:PoriFinlandMember2019-09-300001705682srt:ScenarioForecastMemberus-gaap:FacilityClosingMembervntr:TitaniumDioxideMembervntr:PoriFinlandMember2019-10-012024-12-310001705682vntr:St.LouisAndEastonMember2018-07-012018-09-300001705682vntr:St.LouisAndEastonMember2018-01-012018-09-300001705682vntr:BeltsvilleMarylandMember2019-01-012019-09-300001705682vntr:AugustaGeorgiaMember2018-01-012018-09-300001705682vntr:AugustaGeorgiaMember2018-07-012018-09-300001705682us-gaap:EmployeeSeveranceMember2018-12-310001705682us-gaap:OtherRestructuringMember2018-12-310001705682us-gaap:EmployeeSeveranceMembervntr:Initiatives2018AndPriorMember2019-01-012019-09-300001705682vntr:Initiatives2018AndPriorMemberus-gaap:OtherRestructuringMember2019-01-012019-09-300001705682vntr:Initiatives2018AndPriorMember2019-01-012019-09-300001705682us-gaap:EmployeeSeveranceMembervntr:Initiatives2019Member2019-01-012019-09-300001705682vntr:Initiatives2019Memberus-gaap:OtherRestructuringMember2019-01-012019-09-300001705682vntr:Initiatives2019Member2019-01-012019-09-300001705682us-gaap:EmployeeSeveranceMember2019-01-012019-09-300001705682us-gaap:OtherRestructuringMember2019-01-012019-09-300001705682us-gaap:EmployeeSeveranceMember2019-09-300001705682us-gaap:OtherRestructuringMember2019-09-30vntr:position0001705682vntr:Initiatives2017AndPriorMember2019-09-300001705682vntr:Initiatives2017AndPriorMember2018-12-310001705682vntr:Initiatives2018Member2019-09-300001705682vntr:Initiatives2018Member2018-12-310001705682vntr:Initiatives2019Member2019-09-300001705682vntr:Initiatives2019Member2018-12-310001705682country:ZAvntr:TitaniumDioxideMember2019-07-012019-09-300001705682vntr:St.LouisAndEastonMember2019-01-012019-09-300001705682vntr:St.LouisAndEastonMember2019-07-012019-09-300001705682vntr:BeltsvilleMarylandMember2019-07-012019-09-300001705682vntr:BeltsvilleMarylandMember2018-01-012018-09-300001705682vntr:BeltsvilleMarylandMember2018-07-012018-09-300001705682vntr:AugustaGeorgiaMember2019-07-012019-09-300001705682vntr:AugustaGeorgiaMember2019-01-012019-09-300001705682us-gaap:SeniorNotesMember2019-09-300001705682us-gaap:SeniorNotesMember2018-12-310001705682vntr:TermLoanFacilityMember2019-09-300001705682vntr:TermLoanFacilityMember2018-12-310001705682us-gaap:OtherDebtSecuritiesMember2019-09-300001705682us-gaap:OtherDebtSecuritiesMember2018-12-310001705682vntr:AssetBasedLendingFacilityMemberus-gaap:LineOfCreditMember2019-09-300001705682vntr:AssetBasedLendingFacilityMemberus-gaap:LineOfCreditMember2018-12-310001705682vntr:SeniorNotesAndTermLoanFacilityMember2019-09-300001705682us-gaap:SeniorNotesMember2017-07-140001705682us-gaap:SeniorNotesMembervntr:PriorToJuly152020Member2017-07-142017-07-140001705682us-gaap:SeniorNotesMembervntr:DebtInstrumentRedemptionPeriodUpOnOccurrenceCertainChangeOfControlEventsMember2017-07-142017-07-140001705682vntr:SeniorCreditFacilitiesMember2017-08-080001705682vntr:TermLoanFacilityMember2017-08-080001705682vntr:TermLoanFacilityMember2017-08-082017-08-080001705682vntr:AssetBasedLendingFacilityMember2017-08-080001705682vntr:AssetBasedLendingFacilityMember2017-08-082017-08-080001705682vntr:TermLoanFacilityMember2019-01-012019-09-300001705682vntr:AssetBasedLendingFacilityMember2019-06-200001705682us-gaap:FederalFundsEffectiveSwapRateMembervntr:TermLoanFacilityMember2019-01-012019-09-300001705682us-gaap:LondonInterbankOfferedRateLIBORMembervntr:TermLoanFacilityMember2019-01-012019-09-300001705682us-gaap:LondonInterbankOfferedRateLIBORMembervntr:AssetBasedLendingFacilityMembersrt:MinimumMember2019-01-012019-09-300001705682us-gaap:LondonInterbankOfferedRateLIBORMembervntr:AssetBasedLendingFacilityMembersrt:MaximumMember2019-01-012019-09-30vntr:Installmentvntr:derivative_instrument0001705682us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2017-12-31iso4217:EUR0001705682us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-08-310001705682us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-08-012019-08-310001705682us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-09-300001705682us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-12-310001705682us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-01-012019-09-300001705682us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-01-012018-09-300001705682us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2019-09-300001705682us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2018-12-310001705682us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2019-01-012019-09-300001705682us-gaap:DesignatedAsHedgingInstrumentMember2019-09-300001705682country:US2017-12-310001705682us-gaap:StockCompensationPlanMember2019-01-012019-09-300001705682us-gaap:StockCompensationPlanMember2019-07-012019-09-300001705682vntr:TronoxLimitedMember2018-07-142018-07-140001705682vntr:TronoxLitigationMember2019-05-142019-05-140001705682vntr:TronoxLitigationMember2019-06-172019-06-170001705682vntr:NesteEngineeringServicesArbitrationMember2018-12-190001705682vntr:NesteEngineeringServicesArbitrationMembervntr:NesteEngineeringServicesMember2019-07-022019-07-02vntr:claim0001705682vntr:CalaisPipelineMatterMember2019-09-300001705682vntr:CalaisPipelineMatterMembervntr:TheRegionHautsDeFranceMember2019-01-012019-09-300001705682us-gaap:AccumulatedTranslationAdjustmentMember2018-12-310001705682us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-12-310001705682vntr:AccumulatedOtherComprehensiveIncomeLossUnconsolidatedAffiliatesIncludingPortionAttributableToParentMember2018-12-310001705682us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2018-12-310001705682us-gaap:AociAttributableToNoncontrollingInterestMember2018-12-310001705682us-gaap:AccumulatedTranslationAdjustmentMember2019-01-012019-09-300001705682us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-01-012019-09-300001705682vntr:AccumulatedOtherComprehensiveIncomeLossUnconsolidatedAffiliatesIncludingPortionAttributableToParentMember2019-01-012019-09-300001705682us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2019-01-012019-09-300001705682us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-09-300001705682us-gaap:AociAttributableToNoncontrollingInterestMember2019-01-012019-09-300001705682us-gaap:AccumulatedTranslationAdjustmentMember2019-09-300001705682us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-09-300001705682vntr:AccumulatedOtherComprehensiveIncomeLossUnconsolidatedAffiliatesIncludingPortionAttributableToParentMember2019-09-300001705682us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2019-09-300001705682us-gaap:AociAttributableToNoncontrollingInterestMember2019-09-300001705682us-gaap:AccumulatedTranslationAdjustmentMember2017-12-310001705682us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2017-12-310001705682vntr:AccumulatedOtherComprehensiveIncomeLossUnconsolidatedAffiliatesIncludingPortionAttributableToParentMember2017-12-310001705682us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2017-12-310001705682us-gaap:AociAttributableToNoncontrollingInterestMember2017-12-310001705682us-gaap:AccumulatedTranslationAdjustmentMember2018-01-012018-09-300001705682us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-01-012018-09-300001705682vntr:AccumulatedOtherComprehensiveIncomeLossUnconsolidatedAffiliatesIncludingPortionAttributableToParentMember2018-01-012018-09-300001705682us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2018-01-012018-09-300001705682us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-012018-09-300001705682us-gaap:AociAttributableToNoncontrollingInterestMember2018-01-012018-09-300001705682us-gaap:AccumulatedTranslationAdjustmentMember2018-09-300001705682us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-09-300001705682vntr:AccumulatedOtherComprehensiveIncomeLossUnconsolidatedAffiliatesIncludingPortionAttributableToParentMember2018-09-300001705682us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2018-09-300001705682us-gaap:AociAttributableToNoncontrollingInterestMember2018-09-300001705682us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300001705682us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2018-07-012018-09-300001705682us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-01-012019-09-300001705682us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2018-01-012018-09-300001705682us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300001705682us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2018-07-012018-09-300001705682us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-01-012019-09-300001705682us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2018-01-012018-09-300001705682us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300001705682us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2018-07-012018-09-300001705682us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-01-012019-09-300001705682us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2018-01-012018-09-300001705682us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300001705682us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2018-07-012018-09-300001705682us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-01-012019-09-300001705682us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2018-01-012018-09-300001705682us-gaap:OperatingSegmentsMembervntr:TitaniumDioxideMember2019-07-012019-09-300001705682us-gaap:OperatingSegmentsMembervntr:TitaniumDioxideMember2018-07-012018-09-300001705682us-gaap:OperatingSegmentsMembervntr:TitaniumDioxideMember2019-01-012019-09-300001705682us-gaap:OperatingSegmentsMembervntr:TitaniumDioxideMember2018-01-012018-09-300001705682vntr:PerformanceAdditivesMemberus-gaap:OperatingSegmentsMember2019-07-012019-09-300001705682vntr:PerformanceAdditivesMemberus-gaap:OperatingSegmentsMember2018-07-012018-09-300001705682vntr:PerformanceAdditivesMemberus-gaap:OperatingSegmentsMember2019-01-012019-09-300001705682vntr:PerformanceAdditivesMemberus-gaap:OperatingSegmentsMember2018-01-012018-09-300001705682us-gaap:OperatingSegmentsMember2019-07-012019-09-300001705682us-gaap:OperatingSegmentsMember2018-07-012018-09-300001705682us-gaap:OperatingSegmentsMember2019-01-012019-09-300001705682us-gaap:OperatingSegmentsMember2018-01-012018-09-300001705682us-gaap:CorporateAndOtherMember2019-07-012019-09-300001705682us-gaap:CorporateAndOtherMember2018-07-012018-09-300001705682us-gaap:CorporateAndOtherMember2019-01-012019-09-300001705682us-gaap:CorporateAndOtherMember2018-01-012018-09-30


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 September 30, 2019
OR
   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-38176
_________________________________
vntr-20190930_g1.jpg
Venator Materials PLC
(Exact name of registrant as specified in its charter)
_________________________________
England and Wales98-1373159
(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 (0) 1740 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 classTrading Symbol(s)Name of each exchange on which registered
Ordinary Shares, $0.001 par value per shareVNTRNew 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 filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging 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 October 30, 2019, the registrant had outstanding 106,564,828 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 planned 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, labeling and waste disposal regulations associated with 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;
2


Table of Contents
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.

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)September 30, 2019December 31, 2018
ASSETS
Current assets:
Cash and cash equivalents(a)
$40  $165  
Accounts receivable (net of allowance for doubtful accounts of $4 and $5, respectively)(a)
358  351  
Accounts receivable from affiliates8    
Inventories(a)
496  538  
Prepaid expenses24  20  
Other current assets64  51  
Total current assets990  1,125  
Property, plant and equipment, net(a)
936  994  
Operating lease right-of-use assets(a)
42  —  
Intangible assets, net(a)
22  16  
Investment in unconsolidated affiliates84  83  
Deferred income taxes181  178  
Other noncurrent assets75  89  
Total assets$2,330  $2,485  
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable(a)
$273  $382  
Accounts payable to affiliates14  18  
Accrued liabilities(a)
108  135  
Current operating lease liability(a)
8  —  
Current portion of debt(a)
16  8  
Total current liabilities419  543  
Long-term debt737  740  
Operating lease liability(a)
35  —  
Other noncurrent liabilities260  313  
Noncurrent payable to affiliates34  34  
Total liabilities1,485  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 capital1,321  1,316  
Retained deficit(97) (96) 
Accumulated other comprehensive loss(387) (373) 
Total Venator Materials PLC shareholders' equity837  847  
Noncontrolling interest in subsidiaries8  8  
Total equity845  855  
Total liabilities and equity$2,330  $2,485  

(a) At September 30, 2019 and December 31, 2018, the following amounts from consolidated variable interest entities are included in the respective balance sheet captions above: $5 each of cash and cash equivalents; $5 each of accounts receivable, net; $1 each of inventories; $5 each of property, plant and equipment, net; $1 and nil of operating lease right-of-use assets; $12 and $14 of intangible assets, net; $1 each of accounts payable; $2 and $4 of accrued liabilities; $1 and nil of operating lease 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
September 30,
Nine months ended
September 30,
(Dollars in millions, except per share amounts)2019201820192018
Trade sales, services and fees, net$526  $533  $1,666  $1,781  
Cost of goods sold464  463  1,461  1,110  
Operating expenses:
Selling, general and administrative
45  52  138  162  
Restructuring, impairment, and plant closing and transition costs12  428  24  573  
Other operating expense (income), net5  5  12  (8) 
Total operating expenses62  485  174  727  
Operating (loss) income  (415) 31  (56) 
Interest expense(13) (14) (40) (41) 
Interest income3  4  9  11  
Other income1  4  3  8  
(Loss) income before income taxes(9) (421) 3  (78) 
Income tax (expense) benefit(8) 55  —  (10) 
Net (loss) income(17) (366) 3  (88) 
Net income attributable to noncontrolling interests(2) (2) (4) (6) 
Net loss attributable to Venator$(19) $(368) $(1) $(94) 
Per Share Data:
Loss attributable to Venator Materials PLC ordinary shareholders, basic$(0.18) $(3.46) $(0.01) $(0.88) 
Loss attributable to Venator Materials PLC ordinary shareholders, diluted$(0.18) $(3.46) $(0.01) $(0.88) 

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
September 30,
Nine months ended
September 30,
(Dollars in millions)2019201820192018
Net (loss) income$(17) $(366) $3  $(88) 
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustment
(34) 9  (36) (49) 
Pension and other postretirement benefits adjustments
4  3  12  10  
Hedging instruments
5    10  5  
Total other comprehensive (loss) income, net of tax(25) 12  (14) (34) 
Comprehensive loss(42) (354) (11) (122) 
Comprehensive income attributable to noncontrolling interest(2) (2) (4) (6) 
Comprehensive loss attributable to Venator$(44) $(356) $(15) $(128) 

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 SharesAdditional Paid-in CapitalRetained DeficitAccumulated Other Comprehensive LossNoncontrolling Interest in SubsidiariesTotal
(In millions)SharesAmount
Balance, January 1, 2019106$  $1,316  $(96) $(373) $8  $855  
Net (loss) income
—  —  (3) —  1  (2) 
Other comprehensive income, net of tax
—  —  —  19  —  19  
Dividends paid to noncontrolling interests
—  —  —  —  (1) (1) 
Activity related to stock plans
1—  1  —  —  —  1  
Balance, March 31, 2019107$  $1,317  $(99) $(354) $8  $872  
Net income
—  —  21  —  1  22  
Other comprehensive loss, net of tax
—  —  —  (8) —  (8) 
Dividends paid to noncontrolling interests
—  —  —  —  (2) (2) 
Activity related to stock plans
—  2  —  —  —  2  
Balance, June 30, 2019107$  $1,319  $(78) $(362) $7  $886  
Net (loss) income
—  —  (19) —  2  (17) 
Other comprehensive loss, net of tax
—  —  —  (25) —  (25) 
Dividends paid to noncontrolling interests
—  —  —  —  (1) (1) 
Activity related to stock plans
—  2  —  —  —  2  
Balance, September 30, 2019107$  $1,321  $(97) $(387) $8  $845  

Total Venator Materials PLC Equity
Ordinary SharesAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive LossNoncontrolling Interest in SubsidiariesTotal
(In millions)SharesAmount
Balance, January 1, 2018106$  $1,311  $67  $(283) $10  $1,105  
Net income
—  —  78  —  2  80  
Other comprehensive income, net of tax
—  —  —  53  —  53  
Dividends paid to noncontrolling interests
—  —  —  —  (2) (2) 
Activity related to stock plans
—  1  —  —  —  1  
Balance, March 31, 2018106$  $1,312  $145  $(230) $10  $1,237  
Net income
—  —  196  —  2  198  
Other comprehensive loss, net of tax
—  —  —  (99) —  (99) 
Dividends paid to noncontrolling interests
—  —  —  —  (3) (3) 
Activity related to stock plans
—  1  —  —  —  1  
Balance, June 30, 2018106$  $1,313  $341  $(329) $9  $1,334  
Net (loss) income
—  —  (368) —  2  (366) 
Other comprehensive loss, net of tax
—  —  —  12  —  12  
Dividends paid to noncontrolling interests
—  —  —  —  (2) (2) 
Activity related to stock plans
—  1  —  —  —  1  
Balance, September 30, 2018106$  $1,314  $(27) $(317) $9  $979  

See notes to unaudited condensed consolidated financial statements.
7


Table of Contents
VENATOR MATERIALS PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine months ended September 30,
(Dollars in millions)20192018
Operating Activities:
Net income (loss)$3  $(88) 
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization82  102  
Deferred income taxes(5) (6) 
Noncash restructuring and impairment charges5  539  
Noncash loss (gain) on foreign currency transactions4  (4) 
Other, net7  7  
Changes in operating assets and liabilities:
Accounts receivable(28) (14) 
Inventories27  (67) 
Prepaid expenses(5) (9) 
Other current assets(1) (17) 
Other noncurrent assets(1) (1) 
Accounts payable(72) (18) 
Accrued liabilities(16) (94) 
Other noncurrent liabilities(36) (24) 
Net cash (used in) provided by operating activities(36) 306  
Investing Activities:
Capital expenditures(110) (272) 
Cash received from unconsolidated affiliates33  25  
Investment in unconsolidated affiliates(35) (19) 
Cash received from notes receivable 12    
Other, net(1)   
Net cash used in investing activities(101) (266) 
Financing Activities:
Net borrowings on notes payable9    
Repayment of third-party debt(4) (10) 
Proceeds from the termination of cross currency swap contracts15    
Dividends paid to noncontrolling interests(4) (7) 
Other, net(3)   
Net cash provided by (used in) financing activities13  (17) 
Effect of exchange rate changes on cash(1) (10) 
Net change in cash and cash equivalents(125) 13  
Cash and cash equivalents at beginning of period165  238  
Cash and cash equivalents at end of period$40  $251  
Supplemental cash flow information:
Cash paid for interest$41  $41  
Cash paid for income taxes4  28  
Supplemental disclosure of noncash activities:
Capital expenditures included in accounts payable as of September 30, 2019 and 2018, respectively$28  $50  

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.

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.

9


Table of Contents
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 92 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 September 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:
Lease CostThree months ended September 30, 2019Nine months ended September 30, 2019
Operating lease cost$3  $10  
Finance lease cost:
     Amortization of right-of-use assets  1  
     Interest on lease liabilities    
Short-term lease cost  1  

10


Table of Contents
Supplemental balance sheet information related to leases was as follows:
LeasesAs of September 30, 2019
Assets
    Operating Lease Right-of-Use Assets$42  
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$8  
Non-Current35  
Total Operating Lease Liabilities$43  
Finance Lease Obligation
Current$1  
Non-Current9  
Total Finance Lease Liabilities$10  

Cash paid for amounts included in the present value of operating lease liabilities were as follows:
Cash Flow InformationThree months ended September 30, 2019Nine months ended September 30, 2019
Operating cash flows from operating leases$3  $10  
Operating cash flows from finance leases  1  
Financing cash flows from finance leases    

Lease Term and Discount RateAs of September 30, 2019
Weighted average remaining lease term (years)
Operating leases12.7
Finance leases7.1
Weighted average discount rate
Operating leases7.1 %
Financing leases5.2 %
11


Table of Contents
Maturities of lease liabilities were as follows:
September 30, 2019Operating LeasesFinance LeasesTotal
2019 (remaining)$3  $  $3  
202010  2  12  
20219  1  10  
20227  1  8  
20234  1  5  
After 202340  7  47  
Total lease payments$73  $12  $85