Operating Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Operating Segment Information

Operating Segment Information

We derive our revenues, earnings and cash flows from the manufacture and sale of a wide variety of chemical products. We have reported our operations through our two segments, Titanium Dioxide and Performance Additives, and organized our business and derived our operating segments around differences in product lines.

The major product groups of each reportable operating segment are as follows:

Segment	Product Group
Titanium Dioxide	titanium dioxide
Performance Additives	functional additives, color pigments, and timber treatment

Sales between segments are generally recognized at external market prices and are eliminated in consolidation. Adjusted EBITDA is presented as a measure of the financial performance of our global business units and for reporting the results of our operating segments. The revenues and adjusted EBITDA for each of the two reportable operating segments are as follows:

	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Revenues:
Titanium Dioxide	$	486	$	415	$	996	$	829
Performance Additives	156		152		305		291
Total	$	642	$	567	$	1,301	$	1,120
Adjusted EBITDA(1)
Titanium Dioxide	$	49	$	36	$	98	$	76
Performance Additives	19		18		39		41
	68		54		137		117
Corporate and other	(7)		(11)		(19)		(25)
Total	61		43		118		92
Reconciliation of adjusted EBITDA to net income (loss):
Interest expense	(17)		(17)		(35)		(35)
Interest income	4		3		7		6
Income tax expense	(14)		(5)		(14)		(10)
Depreciation and amortization	(26)		(29)		(57)		(60)
Net income attributable to noncontrolling interests	2		1		3		2
Other adjustments:
(Loss) gain on disposition of business/assets	—		(2)		1		(2)
Certain legal expenses/settlements	85		—		83		(1)
Amortization of pension and postretirement actuarial losses	(1)		(3)		(1)		(6)
Net plant incident credits (costs)	6		(2)		4		(3)
Restructuring, impairment and plant closing and transition costs	(5)		(11)		(16)		(25)
Net income (loss)	$	95	$	(22)	$	93	$	(42)

(1)Adjusted EBITDA is defined as net income/loss of Venator before interest expense, interest income, income tax expense/benefit, depreciation and amortization and net income attributable to noncontrolling interests, as well as eliminating the following adjustments: (a) loss/gain on disposition of business/assets; (b) certain legal expenses/settlements; (c) amortization of pension and postretirement actuarial losses/gains; (d) net plant incident costs/credits; and (e) restructuring, impairment, and plant closing and transition costs.