Remaining Performance Obligations Certain of the Company's master services agreements or other arrangements contain take-or-pay clauses, whereby customers are required to purchase a fixed minimum quantity of product during a specified period, or pay the Company for such orders, even if not requested by the customer. The Company considers these take-or-pay clauses to be an enforceable contract, and as such, the legally-enforceable minimum amounts under such an arrangement are considered to be outstanding per ...

The Chemours Company (NYSE:CC) Q1 2023 Results Conference Call April 28, 2023 8:00 AM ET Company Participants Jonathan Lock - SVP and Chief Development Officer Mark Newman - CEO, President and Director Sameer Ralhan - Senior VP and CFO Conference Call Participants Duffy Fischer - Goldman Sachs Hassan Ahmed - Alembic Global Advisors John McNulty - BMO Capital Markets James Cannon - UBS Arun Viswanathan - RBC Capital Markets John Roberts - Credit Suisse William Tang - Morgan Stanley Laurence Alexander - Jeffe ...

Part I [Item 1. Interim Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Interim%20Consolidated%20Financial%20Statements) This section presents the unaudited interim consolidated financial statements, including core financial statements and detailed notes on accounting policies and specific line items [Interim Consolidated Statements of Operations (Unaudited)](index=3&type=section&id=Interim%20Consolidated%20Statements%20of%20Operations%20(Unaudited)) The company reported a decrease in net sales and net income for the three months ended March 31, 2023, compared to the same period in 2022, primarily due to lower sales volumes and increased restructuring charges | Metric | Three Months Ended March 31, 2023 ($ millions) | Three Months Ended March 31, 2022 ($ millions) | | :----------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net sales | 1,536 | 1,764 | | Cost of goods sold | 1,168 | 1,278 | | Gross profit | 368 | 486 | | Selling, general, and administrative expense | 124 | 141 | | Research and development expense | 26 | 30 | | Restructuring, asset-related, and other charges | 16 | 11 | | Total other operating expenses | 166 | 182 | | Equity in earnings of affiliates | 12 | 11 | | Interest expense, net | (42) | (41) | | Other income, net | 1 | 6 | | Income before income taxes | 173 | 280 | | Provision for income taxes | 28 | 46 | | Net income | 145 | 234 | | Net income attributable to Chemours | 145 | 234 | | Basic earnings per share of common stock | 0.97 | 1.46 | | Diluted earnings per share of common stock | 0.96 | 1.43 | [Interim Consolidated Statements of Comprehensive Income (Unaudited)](index=4&type=section&id=Interim%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Unaudited)) Comprehensive income decreased significantly year-over-year, driven by unrealized losses on net investment hedges and cash flow hedges, partially offset by a positive cumulative translation adjustment | Metric | Three Months Ended March 31, 2023 ($ millions) | Three Months Ended March 31, 2022 ($ millions) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Net income | 145 | 234 | | Unrealized (loss) gain on net investment hedge | (11) | 20 | | Unrealized (loss) gain on cash flow hedge | (1) | 8 | | Reclassifications to net income - cash flow hedge | (9) | (2) | | Hedging activities, net | (21) | 26 | | Cumulative translation adjustment | 58 | (5) | | Defined benefit plans, net | — | 4 | | Other comprehensive income | 37 | 25 | | Comprehensive income | 182 | 259 | | Comprehensive income attributable to Chemours | 182 | 259 | [Interim Consolidated Balance Sheets (Unaudited)](index=5&type=section&id=Interim%20Consolidated%20Balance%20Sheets%20(Unaudited)) Total assets remained stable, while total liabilities slightly decreased and total equity increased as of March 31, 2023, compared to December 31, 2022 | Metric | March 31, 2023 ($ millions) | December 31, 2022 ($ millions) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | **Assets:** | | | | Cash and cash equivalents | 816 | 1,102 | | Accounts and notes receivable, net | 837 | 626 | | Inventories | 1,486 | 1,404 | | Total current assets | 3,202 | 3,214 | | Property, plant, and equipment, net | 3,180 | 3,171 | | Total assets | 7,624 | 7,640 | | **Liabilities:** | | | | Accounts payable | 1,166 | 1,251 | | Current environmental remediation | 171 | 194 | | Total current liabilities | 1,745 | 1,891 | | Long-term debt, net | 3,599 | 3,590 | | Long-term environmental remediation | 477 | 474 | | Total liabilities | 6,396 | 6,533 | | **Equity:** | | | | Total Chemours stockholders' equity | 1,227 | 1,107 | | Total equity | 1,228 | 1,107 | [Interim Consolidated Statements of Stockholders' Equity (Unaudited)](index=6&type=section&id=Interim%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Unaudited)) Stockholders' equity increased from $1,107 million at January 1, 2023, to $1,228 million at March 31, 2023, primarily due to net income and other comprehensive income, partially offset by treasury stock repurchases and dividends | Metric | January 1, 2023 ($ millions) | March 31, 2023 ($ millions) | | :------------------------------------------ | :--------------------------- | :-------------------------- | | Total equity | 1,107 | 1,228 | | Net income | — | 145 | | Purchases of treasury stock, at cost | — | (13) | | Dividends declared on common shares | — | (37) | | Other comprehensive income | — | 37 | [Interim Consolidated Statements of Cash Flows (Unaudited)](index=7&type=section&id=Interim%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) The company used cash in operating, investing, and financing activities during the three months ended March 31, 2023, resulting in a significant decrease in cash and cash equivalents | Cash Flow Activity | Three Months Ended March 31, 2023 ($ millions) | Three Months Ended March 31, 2022 ($ millions) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Cash (used for) provided by operating activities | (119) | 2 | | Cash used for investing activities | (97) | (110) | | Cash used for financing activities | (73) | (189) | | Effect of exchange rate changes on cash | 6 | (9) | | Decrease in cash, cash equivalents, restricted cash | (283) | (306) | | Cash, cash equivalents, restricted cash at January 1 | 1,304 | 1,551 | | Cash, cash equivalents, restricted cash at March 31 | 1,021 | 1,245 | [Notes to the Interim Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Notes%20to%20the%20Interim%20Consolidated%20Financial%20Statements%20(Unaudited)) These notes provide detailed disclosures on accounting policies, financial performance metrics, balance sheet components, debt, equity, and contingent liabilities [Note 1. Background, Description of the Business, and Basis of Presentation](index=8&type=section&id=Note%201.%20Background,%20Description%20of%20the%20Business,%20and%20Basis%20of%20Presentation) Chemours is a global provider of performance chemicals, operating through three reportable segments: Titanium Technologies, Thermal & Specialized Solutions, and Advanced Performance Materials, with Performance Chemicals and Intermediates in 'Other Segment'. The interim financial statements are prepared in accordance with U.S. GAAP - Chemours is a leading, global provider of performance chemicals, including titanium dioxide pigment, refrigerants, industrial fluoropolymer resins, and performance chemicals and intermediates[380](index=380&type=chunk) - The company manages its operating results through three reportable segments: Titanium Technologies, Thermal & Specialized Solutions, and Advanced Performance Materials. The Performance Chemicals and Intermediates business is included in Other Segment[380](index=380&type=chunk) - Interim consolidated financial statements are prepared in accordance with U.S. GAAP and include normal, recurring adjustments for fair statement[401](index=401&type=chunk) [Note 2. Recent Accounting Pronouncements](index=9&type=section&id=Note%202.%20Recent%20Accounting%20Pronouncements) The company adopted ASU 2022-04 regarding supplier finance program disclosures in Q1 2023 and utilized an optional expedient under ASU 2020-04 for LIBOR reform in its credit agreement amendment. ASU 2021-08 for business combinations will be applied to future acquisitions - The company adopted ASU 2022-04, 'Disclosure of Supplier Finance Program Obligations,' in the first quarter of 2023, providing required disclosures under its transition guidance[382](index=382&type=chunk) - An optional expedient under ASU 2020-04, 'Reference Rate Reform,' was utilized in Q1 2023 for an amendment to senior secured credit facilities, preventing accounting modifications[198](index=198&type=chunk) - ASU 2021-08, 'Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,' will be applied to future business combinations[435](index=435&type=chunk) [Note 3. Net Sales](index=10&type=section&id=Note%203.%20Net%20Sales) Net sales decreased by 13% year-over-year, primarily due to lower volumes in Titanium Technologies and Advanced Performance Materials, partially offset by price increases across all segments and volume growth in Thermal & Specialized Solutions. Sales are disaggregated by geographic region and product group Geographic Region Net Sales | Geographic Region | Three Months Ended March 31, 2023 ($ millions) | Three Months Ended March 31, 2022 ($ millions) | | :------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | North America | 720 | 733 | | Asia Pacific | 348 | 474 | | Europe, the Middle East, and Africa | 314 | 368 | | Latin America | 154 | 189 | | **Total net sales** | **1,536** | **1,764** | Product Group and Segment Net Sales | Product Group and Segment | Three Months Ended March 31, 2023 ($ millions) | Three Months Ended March 31, 2022 ($ millions) | | :------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Titanium dioxide and other minerals (Titanium Technologies) | 632 | 928 | | Refrigerants (Thermal & Specialized Solutions) | 385 | 344 | | Foam, propellants, and other (Thermal & Specialized Solutions) | 101 | 81 | | Advanced materials (Advanced Performance Materials) | 244 | 265 | | Performance solutions (Advanced Performance Materials) | 144 | 120 | | Performance chemicals and intermediates (Other Segment) | 30 | 26 | | **Total net sales** | **1,536** | **1,764** | - Contract balances include accounts receivable - trade, deferred revenue, and customer rebates. Changes in deferred revenue and net sales recognized from prior period performance obligations were not significant[439](index=439&type=chunk)[440](index=440&type=chunk) [Note 4. Restructuring, Asset-related, and Other Charges](index=12&type=section&id=Note%204.%20Restructuring,%20Asset-related,%20and%20Other%20Charges) Restructuring, asset-related, and other charges increased to $16 million in Q1 2023, primarily due to the abandonment of a new ERP software platform, compared to $11 million in Q1 2022 which included asset charges from the Russia-Ukraine conflict and employee separation charges Restructuring, Asset-related, and Other Charges | Charge Type | Three Months Ended March 31, 2023 ($ millions) | Three Months Ended March 31, 2022 ($ millions) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Employee separation charges | 1 | 4 | | Decommissioning and other charges | 4 | 1 | | Total restructuring and other charges | 5 | 5 | | Asset-related charges | 11 | 5 | | **Total restructuring, asset-related, and other charges** | **16** | **11** | - In Q1 2023, charges of **$16 million** resulted from the decision to abandon a new ERP software platform, including **$11 million** for deferred software development costs write-off, **$4 million** for contract termination, and **$1 million** for employee separation[411](index=411&type=chunk) - Employee separation-related liabilities for 2022 restructuring programs amounted to **$5 million** at March 31, 2023, with payments expected to be substantially complete by Q1 2024[444](index=444&type=chunk) [Note 5. Other Income (Expense), Net](index=13&type=section&id=Note%205.%20Other%20Income%20(Expense),%20Net) Other income, net, decreased significantly to $1 million in Q1 2023 from $6 million in Q1 2022, primarily due to unfavorable changes in net exchange gains and losses Other Income, Net | Component | Three Months Ended March 31, 2023 ($ millions) | Three Months Ended March 31, 2022 ($ millions) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Leasing, contract services, and miscellaneous income | 6 | 4 | | Royalty income | 2 | — | | Gain on sales of assets and businesses, net | — | 1 | | Exchange losses, net | (7) | — | | Non-operating pension and other post-retirement employee benefit income | — | 1 | | **Total other income, net** | **1** | **6** | [Note 6. Earnings Per Share of Common Stock](index=13&type=section&id=Note%206.%20Earnings%20Per%20Share%20of%20Common%20Stock) Basic EPS decreased to $0.97 and diluted EPS to $0.96 for Q1 2023, down from $1.46 and $1.43 respectively in Q1 2022, reflecting lower net income and a reduced dilutive effect from employee compensation plans Earnings Per Share Calculation | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Net income attributable to Chemours ($ millions) | 145 | 234 | | Weighted-average number of common shares outstanding - basic | 148,997,084 | 159,897,673 | | Dilutive effect of employee compensation plans | 2,182,181 | 3,681,907 | | Weighted-average number of common shares outstanding - diluted | 151,179,265 | 163,579,580 | | Basic earnings per share of common stock | 0.97 | 1.46 | | Diluted earnings per share of common stock | 0.96 | 1.43 | Anti-Dilutive Stock Options | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Average number of stock options (anti-dilutive) | 1,143,489 | 1,478,383 | [Note 7. Accounts and Notes Receivable, Net](index=14&type=section&id=Note%207.%20Accounts%20and%20Notes%20Receivable,%20Net) Accounts and notes receivable, net, increased to $837 million at March 31, 2023, from $626 million at December 31, 2022, primarily due to timing of customer collections Accounts and Notes Receivable, Net | Component | March 31, 2023 ($ millions) | December 31, 2022 ($ millions) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Accounts receivable - trade, net | 722 | 509 | | VAT, GST, and other taxes | 88 | 88 | | Other receivables | 27 | 29 | | **Total accounts and notes receivable, net** | **837** | **626** | - Bad debt expense was less than **$1 million** for Q1 2023, a decrease from **$6 million** in Q1 2022[419](index=419&type=chunk) [Note 8. Inventories](index=14&type=section&id=Note%208.%20Inventories) Total inventories increased to $1,486 million at March 31, 2023, from $1,404 million at December 31, 2022, driven by a build-up of finished products and higher raw material costs Inventories | Component | March 31, 2023 ($ millions) | December 31, 2022 ($ millions) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Finished products | 956 | 910 | | Semi-finished products | 222 | 218 | | Raw materials, stores, and supplies | 680 | 654 | | Inventories before LIFO adjustment | 1,858 | 1,782 | | Less: Adjustment of inventories to LIFO basis | (372) | (378) | | **Total inventories** | **1,486** | **1,404** | - Inventories valued under the LIFO method at U.S. locations comprised **47%** of inventories before LIFO adjustments at both March 31, 2023 (**$881 million**) and December 31, 2022 (**$835 million**)[22](index=22&type=chunk) [Note 9. Property, Plant, and Equipment, Net](index=15&type=section&id=Note%209.%20Property,%20Plant,%20and%20Equipment,%20Net) Property, plant, and equipment, net, remained stable at $3,180 million at March 31, 2023, with depreciation expense of $75 million for the quarter Property, Plant, and Equipment, Net | Component | March 31, 2023 ($ millions) | December 31, 2022 ($ millions) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Equipment | 7,862 | 7,745 | | Buildings | 1,216 | 1,180 | | Construction-in-progress | 281 | 324 | | Land | 104 | 102 | | Mineral rights | 36 | 36 | | Property, plant, and equipment | 9,499 | 9,387 | | Less: Accumulated depreciation | (6,319) | (6,216) | | **Total property, plant, and equipment, net** | **3,180** | **3,171** | - Depreciation expense for the three months ended March 31, 2023, was **$75 million**, compared to **$73 million** for the same period in 2022[422](index=422&type=chunk) [Note 10. Investments in Affiliates](index=15&type=section&id=Note%2010.%20Investments%20in%20Affiliates) The company engages in ordinary course transactions with its equity method investees, including sales, purchases, and dividends Transactions with Equity Method Investees | Transaction Type | Three Months Ended March 31, 2023 ($ millions) | Three Months Ended March 31, 2022 ($ millions) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Net sales to equity method investees | 46 | 44 | | Purchases from equity method investees | 63 | 50 | | Dividends received from equity method investees | 3 | 2 | [Note 11. Other Assets](index=15&type=section&id=Note%2011.%20Other%20Assets) Total other assets decreased to $502 million at March 31, 2023, from $523 million at December 31, 2022, primarily due to a decrease in capitalized repair and maintenance costs Other Assets | Component | March 31, 2023 ($ millions) | December 31, 2022 ($ millions) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Capitalized repair and maintenance costs | 210 | 240 | | Pension assets | 54 | 50 | | Deferred income taxes | 156 | 152 | | Miscellaneous | 82 | 81 | | **Total other assets** | **502** | **523** | [Note 12. Accounts Payable](index=16&type=section&id=Note%2012.%20Accounts%20Payable) Total accounts payable decreased to $1,166 million at March 31, 2023, from $1,251 million at December 31, 2022. The company also maintains supplier finance programs, with outstanding payment obligations of $258 million at March 31, 2023 Accounts Payable | Component | March 31, 2023 ($ millions) | December 31, 2022 ($ millions) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Trade payables | 1,142 | 1,228 | | VAT and other payables | 24 | 23 | | **Total accounts payable** | **1,166** | **1,251** | - The company maintains supply chain finance programs allowing suppliers to sell receivables to financial institutions. Outstanding payment obligations under these programs were **$258 million** at March 31, 2023, and **$158 million** at December 31, 2022[425](index=425&type=chunk)[490](index=490&type=chunk) [Note 13. Other Accrued Liabilities](index=16&type=section&id=Note%2013.%20Other%20Accrued%20Liabilities) Total other accrued liabilities remained consistent at $300 million at March 31, 2023, and December 31, 2022, with payments for customer rebates offset by increases in accrued interest and income taxes Other Accrued Liabilities | Component | March 31, 2023 ($ millions) | December 31, 2022 ($ millions) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Accrued litigation | 35 | 41 | | Asset retirement obligations | 11 | 10 | | Income taxes | 33 | 19 | | Customer rebates | 49 | 90 | | Accrued interest | 47 | 17 | | Operating lease liabilities | 50 | 49 | | Miscellaneous | 75 | 74 | | **Total other accrued liabilities** | **300** | **300** | [Note 14. Debt](index=17&type=section&id=Note%2014.%20Debt) Total long-term debt, net, increased slightly to $3,599 million at March 31, 2023. The company amended its Credit Agreement to replace LIBOR with SOFR and increased its Revolving Credit Facility limit. Debt principal maturities are detailed for the next five years and thereafter Debt Principal | Debt Type | March 31, 2023 ($ millions) | December 31, 2022 ($ millions) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Tranche B-2 U.S. dollar term loan due April 2025 | 764 | 766 | | Tranche B-2 euro term loan due April 2025 | 360 | 355 | | 4.000% senior unsecured notes due May 2026 | 477 | 470 | | 5.375% senior unsecured notes due May 2027 | 495 | 495 | | 5.750% senior unsecured notes due November 2028 | 783 | 783 | | 4.625% senior unsecured notes due November 2029 | 620 | 620 | | Finance lease liabilities | 59 | 61 | | Financing obligation | 91 | 91 | | **Total debt principal** | **3,649** | **3,641** | | Less: Unamortized issue discounts | (4) | (4) | | Less: Unamortized debt issuance costs | (21) | (22) | | Less: Short-term and current maturities of long-term debt | (25) | (25) | | **Total long-term debt, net** | **3,599** | **3,590** | - The Credit Agreement was amended on March 10, 2023, to replace the interest rate benchmark from LIBOR to SOFR. The Revolving Credit Facility aggregate commitment was increased to **$900 million** in October 2021 and extended to October 7, 2026[30](index=30&type=chunk) Debt Principal Maturities | Year | Debt Principal Maturities ($ millions) | | :------------------------------------------ | :------------------------------------- | | Remainder of 2023 | 9 | | 2024 | 13 | | 2025 | 1,102 | | 2026 | 477 | | 2027 | 495 | | Thereafter | 1,403 | | **Total principal maturities on debt** | **3,499** | [Note 15. Other Liabilities](index=19&type=section&id=Note%2015.%20Other%20Liabilities) Total other liabilities remained stable at $320 million at March 31, 2023, compared to $319 million at December 31, 2022, comprising employee-related costs, accrued litigation, asset retirement obligations, and miscellaneous items Other Liabilities | Component | March 31, 2023 ($ millions) | December 31, 2022 ($ millions) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Employee-related costs | 81 | 82 | | Accrued litigation | 54 | 55 | | Asset retirement obligations | 74 | 73 | | Miscellaneous | 111 | 109 | | **Total other liabilities** | **320** | **319** | [Note 16. Commitments and Contingent Liabilities](index=20&type=section&id=Note%2016.%20Commitments%20and%20Contingent%20Liabilities) This section details various lawsuits, claims, and environmental proceedings, including significant PFAS-related liabilities and remediation efforts at key sites [Litigation Overview](index=20&type=section&id=Litigation%20Overview) The company is subject to various lawsuits and claims, including those inherited from EID. Accruals are made for probable and estimable losses, with a total accrued litigation of $89 million at March 31, 2023 - The company accrues a liability for estimated losses from claims or legal proceedings when considered probable and reasonably estimable. Material loss contingencies that are reasonably possible but not probable are disclosed[69](index=69&type=chunk) Accrued Litigation | Accrued Litigation Component | March 31, 2023 ($ millions) | December 31, 2022 ($ millions) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Asbestos | 35 | 35 | | PFOA | 45 | 45 | | All other matters | 9 | 16 | | **Total accrued litigation** | **89** | **96** | [Memorandum of Understanding (the "MOU") with DuPont, Corteva and EID](index=21&type=section&id=Memorandum%20of%20Understanding%20(the%20%22MOU%22)%20with%20DuPont,%20Corteva%20and%20EID) Chemours, DuPont, Corteva, and EID entered into a binding MOU in January 2021 to share potential future legacy PFAS liabilities arising from pre-July 1, 2015 conduct, up to an aggregate of $4 billion, until December 31, 2040, or earlier termination - Chemours will bear half of the cost of future potential legacy PFAS liabilities, and DuPont and Corteva will collectively bear the other half, up to an aggregate of **$4 billion**[38](index=38&type=chunk) - An escrow account was established, with Chemours depositing **$100 million** in September 2021 and 2022, and DuPont/Corteva together depositing **$100 million**. Future annual deposits of **$50 million** each are expected through 2028[72](index=72&type=chunk) - Qualified Spend, as defined in the MOU, includes Indemnifiable Losses related to PFAS Liabilities, abatement/remediation costs, fines/penalties for legacy EID PFAS emissions, and Site-Related GenX Claims[500](index=500&type=chunk) [Asbestos](index=23&type=section&id=Asbestos) Chemours inherited EID's asbestos docket, with approximately 900 lawsuits pending at March 31, 2023, alleging personal injury from asbestos exposure - Approximately **900** lawsuits alleging personal injury from asbestos exposure were pending against EID (assigned to Chemours) at March 31, 2023 and December 31, 2022[502](index=502&type=chunk) [Benzene](index=23&type=section&id=Benzene) Chemours inherited EID's benzene docket, with 19 cases pending at March 31, 2023, alleging benzene-related illnesses - At March 31, 2023, there were **19** cases pending against EID (assigned to Chemours) alleging benzene-related illnesses[74](index=74&type=chunk) - The outcome of a lawsuit filed in Delaware state court against multiple insurance companies for breach of contractual obligations related to benzene litigation is not expected to have a material impact on Chemours' results[41](index=41&type=chunk) [PFOA](index=23&type=section&id=PFOA) Chemours maintains an accrual of $25 million for PFOA matters, including obligations under the Leach Settlement and agreements with EPA/NJ DEP. The company was involved in the First and Second MDL Settlements for PFOA personal injury claims - Chemours had accruals of **$25 million** at March 31, 2023, and December 31, 2022, related to PFOA matters, including the Leach Settlement, EPA agreements, and NJ DEP voluntary commitments[504](index=504&type=chunk) - The Leach settlement involved a C8 Science Panel finding probable links between PFOA exposure and certain diseases, leading to personal injury claims against EID (assigned to Chemours)[43](index=43&type=chunk)[505](index=505&type=chunk) - The First MDL Settlement resolved approximately **3,500** lawsuits for **$670.7 million** (half paid by Chemours). The Second MDL Settlement resolved **96** cases and additional pre-suit claims for approximately **$83 million** (Chemours contributed **$29 million**)[506](index=506&type=chunk)[474](index=474&type=chunk) [PFAS](index=26&type=section&id=PFAS) The company faces numerous governmental inquiries and lawsuits related to PFAS contamination, including AFFF matters, state natural resource damages, and other individual/class actions across various U.S. states and the Netherlands. Many lawsuits allege fraudulent transfer in the spin-off - Chemours does not manufacture or sell aqueous film forming foam (AFFF) but is named in approximately **4,100** AFFF-related matters, mostly transferred to a multi-district litigation (AFFF MDL) in South Carolina[80](index=80&type=chunk) - State Natural Resource Damages matters include lawsuits from various states (e.g., Delaware, New Jersey, New York, Ohio, California, Alabama, South Carolina) alleging PFAS contamination and seeking damages, with some including fraudulent transfer claims[479](index=479&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk)[515](index=515&type=chunk) - In March 2023, a New York court dismissed all claims against Chemours with prejudice in a Suez Water lawsuit regarding PFAS releases, while a claim for design defect could be maintained against EID[52](index=52&type=chunk) [Environmental Overview](index=32&type=section&id=Environmental%20Overview) Chemours is subject to environmental laws and regulations requiring remediation activities, with total environmental remediation liabilities of $648 million at March 31, 2023. The company estimates potential liabilities could range up to $740 million above the accrued amount due to inherent uncertainties Environmental Remediation Liabilities | Component | March 31, 2023 ($ millions) | December 31, 2022 ($ millions) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Current environmental remediation | 171 | 194 | | Long-term environmental remediation | 477 | 474 | | **Total environmental remediation** | **648** | **668** | - The company estimates potential environmental liabilities may range up to approximately **$740 million** above the amount accrued at March 31, 2023, due to uncertainties in environmental conditions, regulations, and remediation technologies[488](index=488&type=chunk) - EPA's PFAS Strategic Roadmap and proposed NPDWR for PFOA and PFOS (**4 ppt** each) could require adjustments to environmental remediation liabilities and accrued litigation, with potential additional costs not yet estimable[92](index=92&type=chunk)[521](index=521&type=chunk) [Fayetteville Works, Fayetteville, North Carolina](index=34&type=section&id=Fayetteville%20Works,%20Fayetteville,%20North%20Carolina) At Fayetteville Works, Chemours is implementing a Consent Order (CO) and Addendum with NC DEQ and CFRW to reduce PFAS loadings, including operating a thermal oxidizer, providing replacement drinking water supplies, and constructing a barrier wall with a groundwater extraction system. Accrued environmental remediation liabilities for Fayetteville were $449 million at March 31, 2023 - The CO requires Chemours to install a thermal oxidizer (TO) to control PFAS emissions (achieving **>99.999%** efficiency), provide permanent replacement drinking water supplies to qualifying residents, and implement a Corrective Action Plan (CAP) to reduce PFAS loadings to surface water by at least **75%**[524](index=524&type=chunk)[527](index=527&type=chunk) Fayetteville Environmental Remediation | Component | March 31, 2023 ($ millions) | December 31, 2022 ($ millions) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | On-site remediation | 254 | 264 | | Off-site groundwater remediation | 195 | 201 | | **Total Fayetteville environmental remediation** | **449** | **465** | - In July 2022, Chemours recorded approximately **$108 million** in SG&A expense due to a change in estimate for off-site drinking water liabilities, reflecting eligibility for public water or whole building filtration systems for properties with GenX compounds above **10 ppt**[99](index=99&type=chunk) [Chambers Works, Deepwater, New Jersey](index=66&type=section&id=Chambers%20Works,%20Deepwater,%20New%20Jersey) Chambers Works has ongoing remediation activities, including a groundwater interceptor well system and additional actions under a federal RCRA Corrective Action permit. NJ DEP has filed lawsuits and a motion for a preliminary injunction requiring a remediation funding source of $943 million - A groundwater interceptor well system (IWS) was installed in 1970 to contain contaminated groundwater, and additional remediation is being completed under a federal RCRA Corrective Action permit[344](index=344&type=chunk) - NJ DEP filed four lawsuits and a motion for a preliminary injunction requiring EID and Chemours to establish a remediation funding source (RFS) of **$943 million** for Chambers Works, primarily for non-PFAS remediation items[353](index=353&type=chunk) - Management believes a loss related to the RFS motion is reasonably possible but not estimable due to early stages and significant factual/legal questions[88](index=88&type=chunk) [Pompton Lakes, New Jersey](index=68&type=section&id=Pompton%20Lakes,%20New%20Jersey) Remedial actions at Pompton Lakes, a former manufacturing site, focus on investigating and cleaning up lead and mercury contamination in soil and sediments, with lake dredging completed and ongoing assessment of groundwater conditions - Remedial actions at Pompton Lakes focus on investigating and cleaning up lead and mercury contamination in soil and sediments, and volatile organic compounds in groundwater[358](index=358&type=chunk) - The lake dredging project for mercury contamination has been completed, and the company is further assessing groundwater conditions and seeking resolution with EPA on a revised Corrective Measures Study (CMS)[358](index=358&type=chunk) [U.S. Smelter and Lead Refinery, Inc., East Chicago, Indiana](index=68&type=section&id=U.S.%20Smelter%20and%20Lead%20Refinery,%20Inc.,%20East%20Chicago,%20Indiana) Chemours is one of several parties cooperating with EPA on remediation at the USS Lead Superfund site, addressing lead and arsenic contamination. Remedial actions for modified Zone 1 have been confirmed, with future costs contingent on agreement implementation and PRP allocation - The USS Lead Superfund site addresses lead and arsenic contamination in East Chicago, Indiana, with EPA directing remediation and Chemours as one of several Potentially Responsible Parties (PRPs)[323](index=323&type=chunk) - EPA's ROD Amendment for modified Zone 1 selects a preferred remedy requiring clean-up to residential standards, with a contingent remedy for commercial/industrial standards if land use changes[349](index=349&type=chunk) - Future costs for the USS Lead site are contingent on the implementation of agreements, resolution of EPA's costs, and final allocation between PRPs[350](index=350&type=chunk) [Washington Works, Parkersburg, West Virginia](index=70&type=section&id=Washington%20Works,%20Parkersburg,%20West%20Virginia) At Washington Works, remedial actions required by the RCRA final remedy implementation plan are completed or ongoing, including groundwater hydraulic control and drinking water supply treatment. The company agreed to an Administrative Order on Consent with EPA for additional sampling and actions to address PFOA and HFPO Dimer Acid discharge exceedances - Remedial actions at Washington Works include capping former landfills, sitewide groundwater hydraulic control, drinking water supply well treatment via granular activated carbon (GAC), and long-term groundwater monitoring[351](index=351&type=chunk) - Chemours provides alternate drinking water supplies (GAC treatment or other approved supply) to residential well owners and public systems near Washington Works where PFOA concentration exceeds **70 ppt**[352](index=352&type=chunk) - In April 2023, the company agreed to an Administrative Order on Consent with EPA for additional sampling and actions to address PFOA and HFPO Dimer Acid discharge exceedances, expecting future capital and operating expenditures[326](index=326&type=chunk) [Note 17. Equity](index=41&type=section&id=Note%2017.%20Equity) The company completed its 2018 Share Repurchase Program in May 2022 and is actively repurchasing shares under the 2022 Share Repurchase Program, with $496 million remaining available for purchase at March 31, 2023 - The 2018 Share Repurchase Program was completed on May 19, 2022, with **$1,000 million** in authorized purchases, totaling **28,603,784** shares at an average price of **$34.96** per share[164](index=164&type=chunk) - The 2022 Share Repurchase Program, approved on April 27, 2022, authorizes up to **$750 million** in repurchases through December 31, 2025[144](index=144&type=chunk) Share Repurchase Program Activity | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Total number of shares purchased | — | 4,851,966 | | Total amount for shares purchased ($ millions) | — | 146 | | Average price paid per share | — | 30.06 | [Note 18. Stock-based Compensation](index=42&type=section&id=Note%2018.%20Stock-based%20Compensation) The company granted stock options, restricted stock units (RSUs), and performance share units (PSUs) in Q1 2023. Total stock-based compensation expense for the quarter was $4 million, down from $10 million in Q1 2022 - Approximately **560,000** non-qualified stock options were granted on March 1, 2023, vesting over three years and expiring in 10 years. Fair value was estimated using the Black-Scholes model[542](index=542&type=chunk) - Approximately **270,000** RSUs were granted in Q1 2023, generally vesting over three years. Approximately **1,170,000** RSUs remained non-vested at March 31, 2023[114](index=114&type=chunk)[168](index=168&type=chunk) - Approximately **103,000** PSUs were granted on March 1, 2023, to key senior management, vesting over three years based on performance goals. Approximately **524,000** PSUs (at **100%** target) remained non-vested at March 31, 2023[148](index=148&type=chunk)[169](index=169&type=chunk) - Total stock-based compensation expense was **$4 million** for Q1 2023, compared to **$10 million** for Q1 2022[196](index=196&type=chunk) [Note 19. Accumulated Other Comprehensive Loss](index=43&type=section&id=Note%2019.%20Accumulated%20Other%20Comprehensive%20Loss) Accumulated other comprehensive loss decreased to $306 million at March 31, 2023, from $343 million at January 1, 2023, primarily due to a positive cumulative translation adjustment, partially offset by hedging losses Accumulated Other Comprehensive Loss | Component | January 1, 2023 ($ millions) | March 31, 2023 ($ millions) | | :------------------------------------------ | :--------------------------- | :-------------------------- | | Net Investment Hedge | 19 | 8 | | Cash Flow Hedge | 6 | (4) | | Cumulative Translation Adjustment | (268) | (210) | | Defined Benefit Plans | (100) | (100) | | **Total** | **(343)** | **(306)** | - Other comprehensive income (loss) for Q1 2023 was **$37 million**, compared to **$25 million** for Q1 2022[152](index=152&type=chunk) [Note 20. Financial Instruments](index=44&type=section&id=Note%2020.%20Financial%20Instruments) Chemours uses derivative financial instruments, including foreign currency forward contracts and euro-denominated debt, to manage exposure to foreign currency risks. The fair value of liability derivatives was $4 million at March 31, 2023 - The company uses foreign currency forward contracts to minimize volatility from remeasuring monetary assets/liabilities and to mitigate risks from euro-U.S. dollar fluctuations for inventory purchases[153](index=153&type=chunk) - Euro-denominated debt is used as a net investment hedge to reduce volatility in stockholders' equity due to euro-U.S. dollar exchange rate changes[153](index=153&type=chunk) Fair Value of Liability Derivatives | Derivative Type | Balance Sheet Location | March 31, 2023 Fair Value ($ millions) | December 31, 2022 Fair Value ($ millions) | | :------------------------------------------ | :------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Foreign currency forward contracts (not designated as hedge) | Other accrued liabilities | 1 | 1 | | Foreign currency forward contracts (cash flow hedge) | Other accrued liabilities | 3 | 4 | | **Total liability derivatives** | | **4** | **5** | [Note 21. Long-term Employee Benefits](index=47&type=section&id=Note%2021.%20Long-term%20Employee%20Benefits) The company sponsors defined benefit pension plans for certain non-U.S. employees and made cash contributions of $5 million in Q1 2023 and 2022, with an expectation to contribute an additional $6 million in the remainder of 2023 - Chemours sponsors defined benefit pension plans for certain employees outside the U.S., with net periodic pension cost based on estimated values and assumptions[24](index=24&type=chunk) - Cash contributions to defined benefit pension plans were **$5 million** for both Q1 2023 and Q1 2022. The company expects to make additional cash contributions of **$6 million** during the remainder of 2023[29](index=29&type=chunk) [Note 22. Supplemental Cash Flow Information](index=47&type=section&id=Note%2022.%20Supplemental%20Cash%20Flow%20Information) This note provides a reconciliation of cash and cash equivalents to cash, cash equivalents, restricted cash, and restricted cash equivalents, showing a total of $1,021 million at March 31, 2023 Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | Component | March 31, 2023 ($ millions) | December 31, 2022 ($ millions) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Cash and cash equivalents | 816 | 1,102 | | Restricted cash and restricted cash equivalents | 205 | 202 | | **Cash, cash equivalents, restricted cash and restricted cash equivalents** | **1,021** | **1,304** | [Note 23. Segment Information](index=48&type=section&id=Note%2023.%20Segment%20Information) Chemours operates through three reportable segments: Titanium Technologies, Thermal & Specialized Solutions, and Advanced Performance Materials, with 'Other Segment' for Performance Chemicals and Intermediates. Adjusted EBITDA is the primary measure of segment profitability - Chemours' reportable segments are Titanium Technologies, Thermal & Specialized Solutions, and Advanced Performance Materials. The Performance Chemicals and Intermediates business is in 'Other Segment'[187](index=187&type=chunk) - Adjusted EBITDA is the primary measure of segment profitability, defined as income (loss) before income taxes, excluding interest, depreciation, amortization, non-operating pension costs, exchange gains/losses, restructuring charges, gains/losses on asset sales, and other non-indicative items including Qualified Spend recovery[188](index=188&type=chunk)[222](index=222&type=chunk) Segment Net Sales and Adjusted EBITDA | Segment | Three Months Ended March 31, 2023 Net Sales ($ millions) | Three Months Ended March 31, 2023 Adjusted EBITDA ($ millions) | Three Months Ended March 31, 2022 Net Sales ($ millions) | Three Months Ended March 31, 2022 Adjusted EBITDA ($ millions) | | :------------------------------------------ | :------------------------------------------------------- | :------------------------------------------------------- | :------------------------------------------------------- | :------------------------------------------------------- | | Titanium Technologies | 632 | 70 | 928 | 206 | | Thermal & Specialized Solutions | 486 | 185 | 425 | 174 | | Advanced Performance Materials | 388 | 84 | 385 | 88 | | Other Segment | 30 | 10 | 26 | — | | Corporate and Other | — | (45) | — | (65) | | **Total** | **1,536** | **304** | **1,764** | **403** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=50&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's discussion and analysis of the company's financial condition, operational results, outlook, liquidity, and environmental matters [Overview](index=50&type=section&id=Overview) Chemours is a global performance chemicals provider with a vision to create a better world through chemistry, guided by core values and a Corporate Responsibility Commitment (CRC) focused on inspired people, a shared planet, and an evolved portfolio - Chemours is a leading global provider of performance chemicals, offering customized solutions across various industries with principal products including titanium dioxide pigment, refrigerants, industrial fluoropolymer resins, and performance chemicals and intermediates[205](index=205&type=chunk) - The company's operations are guided by five core values: Customer Centricity, Refreshing Simplicity, Collective Entrepreneurship, Safety Obsession, and Unshakable Integrity[206](index=206&type=chunk) - The Corporate Responsibility Commitment (CRC) focuses on inspired people, a shared planet, and an evolved portfolio, aiming for increased diversity, product sustainability, and reduced carbon emissions to drive long-term earnings growth[209](index=209&type=chunk)[235](index=235&type=chunk) [Results of Operations and Business Highlights](index=52&type=section&id=Results%20of%20Operations%20and%20Business%20Highlights) Consolidated net sales decreased by 13% to $1.5 billion in Q1 2023, primarily due to lower volumes, while net income fell to $145 million. Cost of goods sold, SG&A, and R&D expenses also decreased, but restructuring charges increased Consolidated Financial Highlights | Metric | Three Months Ended March 31, 2023 ($ millions) | Three Months Ended March 31, 2022 ($ millions) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Net sales | 1,536 | 1,764 | | Cost of goods sold | 1,168 | 1,278 | | Gross profit | 368 | 486 | | Selling, general, and administrative expense | 124 | 141 | | Research and development expense | 26 | 30 | | Restructuring, asset-related, and other charges | 16 | 11 | | Net income | 145 | 234 | | Basic earnings per share | 0.97 | 1.46 | | Diluted earnings per share | 0.96 | 1.43 | Change in Net Sales Drivers | Change in Net Sales Drivers | 2023 (%) | | :------------------------------------------ | :------- | | Price | 6% | | Volume | (18)% | | Currency | (1)% | | **Total change in net sales** | **(13)%** | - Cost of goods sold decreased by **$110 million** (**9%**) due to lower sales volume, partially offset by higher raw material costs and lower fixed cost absorption in Titanium Technologies[213](index=213&type=chunk) - Restructuring, asset-related, and other charges increased by **$5 million** (**45%**) to **$16 million**, primarily due to abandoning a new ERP software platform[216](index=216&type=chunk) [Segment Reviews](index=54&type=section&id=Segment%20Reviews) Segment performance varied, with Titanium Technologies experiencing significant declines in sales and Adjusted EBITDA due to soft demand, while Thermal & Specialized Solutions saw growth in sales and Adjusted EBITDA. Advanced Performance Materials had slight sales growth but a decrease in Adjusted EBITDA [Titanium Technologies](index=55&type=section&id=Titanium%20Technologies) Net sales for Titanium Technologies decreased by 32% to $632 million in Q1 2023, driven by a 35% decrease in volume due to softer market demand, despite a 4% price increase. Adjusted EBITDA fell by 66% to $70 million Titanium Technologies Performance | Metric | Three Months Ended March 31, 2023 ($ millions) | Three Months Ended March 31, 2022 ($ millions) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Segment net sales | 632 | 928 | | Adjusted EBITDA | 70 | 206 | | Adjusted EBITDA margin | 11% | 22% | Change in Titanium Technologies Net Sales Drivers | Change in Segment Net Sales Drivers | 2023 (%) | | :------------------------------------------ | :------- | | Price | 4% | | Volume | (35)% | | Currency | (1)% | | **Total change in segment net sales** | **(32)%** | - The decrease in Adjusted EBITDA and Adjusted EBITDA margin was primarily attributable to lower sales volumes, inflation on costs, and lower fixed cost absorption[248](index=248&type=chunk) [Thermal & Specialized Solutions](index=56&type=section&id=Thermal%20%26%20Specialized%20Solutions) Net sales for Thermal & Specialized Solutions increased by 14% to $486 million in Q1 2023, driven by a 10% increase in volume from strong automotive OEM demand and Opteon™ adoption, and a 5% price increase. Adjusted EBITDA increased by 6% to $185 million Thermal & Specialized Solutions Performance | Metric | Three Months Ended March 31, 2023 ($ millions) | Three Months Ended March 31, 2022 ($ millions) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Segment net sales | 486 | 425 | | Adjusted EBITDA | 185 | 174 | | Adjusted EBITDA margin | 38% | 41% | Change in Thermal & Specialized Solutions Net Sales Drivers | Change in Segment Net Sales Drivers | 2023 (%) | | :------------------------------------------ | :------- | | Price | 5% | | Volume | 10% | | Currency | (1)% | | **Total change in segment net sales** | **14%** | - The increase in Adjusted EBITDA was primarily due to increased price and sales volumes, partially offset by higher raw material costs and inflation[251](index=251&type=chunk) [Advanced Performance Materials](index=57&type=section&id=Advanced%20Performance%20Materials) Net sales for Advanced Performance Materials increased by 1% to $388 million in Q1 2023, driven by a 10% price increase from high-value end-markets, partially offset by a 7% volume decrease due to softening demand in economically sensitive markets. Adjusted EBITDA decreased by 5% to $84 million Advanced Performance Materials Performance | Metric | Three Months Ended March 31, 2023 ($ millions) | Three Months Ended March 31, 2022 ($ millions) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Segment net sales | 388 | 385 | | Adjusted EBITDA | 84 | 88 | | Adjusted EBITDA margin | 22% | 23% | Change in Advanced Performance Materials Net Sales Drivers | Change in Segment Net Sales Drivers | 2023 (%) | | :------------------------------------------ | :------- | | Price | 10% | | Volume | (7)% | | Currency | (2)% | | **Total change in segment net sales** | **1%** | - The decreases in Adjusted EBITDA and Adjusted EBITDA margin were primarily attributable to lower sales volume, higher raw material costs, and continued inflation[285](index=285&type=chunk) [Corporate and Other](index=58&type=section&id=Corporate%20and%20Other) Corporate and Other costs decreased by 31% to $45 million in Q1 2023, primarily due to lower legacy environmental and legal costs and reduced long-term performance-related compensation - Corporate and Other costs decreased by **$20 million** (**31%**) to **$45 million** for Q1 2023, compared to **$65 million** for Q1 2022[259](index=259&type=chunk) - The decrease was primarily attributable to lower legacy environmental and legal costs and lower long-term performance-related compensation[259](index=259&type=chunk) [2023 Outlook](index=58&type=section&id=2023%20Outlook) The company's 2023 outlook anticipates slow demand improvement in Titanium Technologies, continued Opteon™ adoption in Thermal & Specialized Solutions, and improved demand for high-value products in Advanced Performance Materials, alongside $400 million in capital expenditures - Titanium Technologies expects slow demand improvement in EMEA and China, with overall demand recovery remaining uncertain[260](index=260&type=chunk) - Thermal & Specialized Solutions anticipates improved customer demand for refrigerants and continued Opteon™ adoption, with headwinds from raw material inflation[260](index=260&type=chunk) - Advanced Performance Materials expects improved demand for high-value, differentiated products, offset by weak demand in Advanced Materials and non-strategic markets, along with raw material inflation and EU energy cost volatility[260](index=260&type=chunk) - Capital expenditures are expected to be approximately **$400 million** in 2023, split equally between growth capital and run/maintain/sustainability[287](index=287&type=chunk) [Liquidity and Capital Resources](index=59&type=section&id=Liquidity%20and%20Capital%20Resources) The company's primary liquidity sources are cash from operations, available cash, receivables securitization, and debt financing. It expects to fund contractual obligations, including significant environmental remediation and PFAS escrow payments, through these sources and maintains a financial policy focused on growth investment, debt repayment, and shareholder returns - Primary sources of liquidity include cash generated from operations, available cash, receivables securitization, and debt financing arrangements[263](index=263&type=chunk) - At March 31, 2023, total cash and cash equivalents were **$816 million**, with **$530 million** held by foreign subsidiaries[290](index=290&type=chunk) - Environmental remediation liabilities totaled **$648 million** at March 31, 2023, with **$171 million** classified as current. A portion is subject to recovery under the MOU, and aggregate Qualified Spend under the MOU amounted to **$351 million** through March 31, 2023[264](index=264&type=chunk) - The next PFAS escrow payment of **$50 million** is expected by September 30, 2023, and annually thereafter through 2028[264](index=264&type=chunk) - The financial policy includes investing in growth, maintaining appropriate leverage, and returning cash to shareholders through dividends (**$0.25** per share quarterly) and share repurchases (**$496 million** remaining authority under the 2022 program)[291](index=291&type=chunk) [Cash Flows](index=61&type=section&id=Cash%20Flows) Cash flows from operating activities shifted from a $2 million inflow in Q1 2022 to a $119 million outflow in Q1 2023, primarily due to decreased net income, changes in net working capital, and higher spend at Fayetteville. Investing and financing activities also used cash Cash Flow Activities | Cash Flow Activity | Three Months Ended March 31, 2023 ($ millions) | Three Months Ended March 31, 2022 ($ millions) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Cash (used for) provided by operating activities | (119) | 2 | | Cash used for investing activities | (97) | (110) | | Cash used for financing activities | (73) | (189) | - The decrease in operating cash inflows was primarily attributable to a decrease in net income, changes in net working capital, and higher spend at the Fayetteville site[266](index=266&type=chunk) - Investing activities used **$97 million** in Q1 2023, mainly for purchases of property, plant, and equipment (**$91 million**)[267](index=267&type=chunk) - Financing activities used **$73 million** in Q1 2023, primarily for share repurchases (**$14 million**), cash dividends (**$37 million**), and tax withholdings on vested stock awards (**$18 million**)[268](index=268&type=chunk) [Current Assets](index=62&type=section&id=Current%20Assets) Total current assets slightly decreased to $3,202 million at March 31, 2023. Accounts and notes receivable increased by 34% due to collection timing, while inventories rose by 6% from finished product build-up and higher raw material costs. Prepaid expenses decreased by 23% Current Assets | Current Asset Component | March 31, 2023 ($ millions) | December 31, 2022 ($ millions) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Cash and cash equivalents | 816 | 1,102 | | Accounts and notes receivable, net | 837 | 626 | | Inventories | 1,486 | 1,404 | | Prepaid expenses and other | 63 | 82 | | **Total current assets** | **3,202** | **3,214** | - Accounts and notes receivable, net, increased by **$211 million** (**34%**) due to the timing of collections from customers, partially offset by increased utilization of the Securitization Facility[329](index=329&type=chunk) - Inventories increased by **$82 million** (**6%**) due to a build-up of finished product inventories and higher raw material costs[297](index=297&type=chunk) - Prepaid expenses and other decreased by **$19 million** (**23%**) due to decreases in prepaid income tax balances and insurance premiums[271](index=271&type=chunk) [Current Liabilities](index=62&type=section&id=Current%20Liabilities) Total current liabilities decreased to $1,745 million at March 31, 2023. Accounts payable decreased by 7% due to vendor payment timing, and compensation costs fell by 31% following 2022 performance-based compensation payouts. Current environmental remediation also decreased by 12% Current Liabilities | Current Liability Component | March 31, 2023 ($ millions) | December 31, 2022 ($ millions) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Accounts payable | 1,166 | 1,251 | | Compensation and other employee-related costs | 83 | 121 | | Short-term and current maturities of long-term debt | 25 | 25 | | Current environmental remediation | 171 | 194 | | Other accrued liabilities | 300 | 300 | | **Total current liabilities** | **1,745** | **1,891** | - Accounts payable decreased by **$85 million** (**7%**) due to the timing of vendor payments[331](index=331&type=chunk) - Compensation and other employee-related costs decreased by **$38 million** (**31%**) due to decreased accruals for employee performance-based compensation following 2022 payouts[299](index=299&type=chunk) - Current environmental remediation decreased by **$23 million** (**12%**) primarily due to construction in progress at the Fayetteville site to meet Consent Order requirements[273](index=273&type=chunk) [Credit Facilities and Notes](index=63&type=section&id=Credit%20Facilities%20and%20Notes) The company's Registered Notes are fully and unconditionally guaranteed by Guarantor Subsidiaries, primarily U.S.-based operating subsidiaries. Summarized financial information for the Obligor Group (Parent Issuer and Guarantor Subsidiaries) is provided, showing net sales of $1,074 million and net income of $66 million for Q1 2023 - The **4.000%** senior unsecured notes due May 2026 and **5.375%** senior unsecured notes due May 2027 (Registered Notes) are fully and unconditionally guaranteed by existing and future domestic subsidiaries (Guarantor Subsidiaries)[302](index=302&type=chunk) - The assets, liabilities, and operations of Guarantor Subsidiaries primarily consist of The Chemours Company FC, LLC, the primary U.S. operating subsidiary[302](index=302&type=chunk) Obligor Group Financial Information (Q1 2023) | Metric | Three Months Ended March 31, 2023 ($ millions) | | :------------------------------------------ | :--------------------------------------------- | | Net sales | 1,074 | | Gross profit | 226 | | Income before income taxes | 78 | | Net income | 66 | | Net income attributable to Chemours | 66 | Obligor Group Balance Sheet | Balance Sheet Item | March 31, 2023 ($ millions) | December 31, 2022 ($ millions) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Current assets | 1,568 | 1,553 | | Long-term assets | 3,438 | 3,485 | | Current liabilities | 1,521 | 1,554 | | Long-term liabilities | 4,540 | 4,528 | [Supplier Financing](index=64&type=section&id=Supplier%20Financing) The company maintains supply chain finance programs with financial institutions, allowing suppliers to sell their receivables. Outstanding payment obligations were $258 million at March 31, 2023 - The company maintains supply chain finance programs with several financial institutions, allowing suppliers to sell their receivables[306](index=306&type=chunk) - Outstanding payment obligations under these programs were **$258 million** at March 31, 2023, and **$158 million** at December 31, 2022, included in Accounts Payable[490](index=490&type=chunk) [Off-Balance Sheet Arrangements](index=64&type=section&id=Off-Balance%20Sheet%20Arrangements) The company's Securitization Facility was amended in March 2023 to increase the facility limit to $175 million, replace LIBOR with SOFR, and extend its term - The Third Amendment to the Securitization Facility, entered in March 2023, increased the facility limit from **$150 million** to **$175 million**, replaced LIBOR with SOFR, and extended the term until March 31, 2025[307](index=307&type=chunk)[493](index=493&type=chunk) [Critical Accounting Policies and Estimates](index=64&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) There have been no material changes to the critical accounting policies and estimates previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2022, except as described in Note 2 - No material changes to critical accounting policies and estimates, except for those described in Note 2 – Recent Accounting Pronouncements[309](index=309&type=chunk) [Recent Accounting Pronouncements](index=64&type=section&id=Recent%20Accounting%20Pronouncements) This section refers to Note 2 for a discussion of recent accounting pronouncements - Refer to Note 2 – Recent Accounting Pronouncements for details on recent accounting guidance[310](index=310&type=chunk) [Environmental Matters](index=65&type=section&id=Environmental%20Matters) Chemours is committed to environmental protection and is subject to significant environmental laws and regulations, incurring substantial remediation costs. Total accrued environmental remediation liabilities were $648 million at March 31, 2023, with five significant sites accounting for 85% of this total - The company's consolidated balance sheets include environmental remediation liabilities of **$648 million** at March 31, 2023, and **$668 million** at December 31, 2022[339](index=339&type=chunk) - The five most significant environmental remediation sites (Chambers Works, Fayetteville, Pompton Lakes, USS Lead, Washington Works) represent **85%** of total accrued environmental remediation liabilities[318](index=318&type=chunk)[342](index=342&type=chunk) - The company expects to spend **$226 million** over the next three years for these five significant sites and **$57 million** for all other sites[318](index=318&type=chunk) - Under adverse changes, potential liabilities may range up to approximately **$740 million** above the amount accrued at March 31, 2023, due to inherent uncertainties[314](index=314&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=77&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Chemours is exposed to foreign currency exchange rate risks, interest rate risks, and commodity price risks, which are managed through operating and financing activities, and derivative financial instruments. The company does not use derivatives for trading or speculative purposes - The company is exposed to foreign currency exchange rates, interest rate risk from variable rate indebtedness, and commodity price changes[581](index=581&type=chunk) - Foreign currency forward contracts are used to minimize volatility in earnings from remeasuring monetary assets and liabilities, with net losses of **$5 million** recognized in Q1 2023 and Q1 2022[569](index=569&type=chunk) - Euro-denominated debt is designated as a hedge of net investment in international subsidiaries to reduce volatility in stockholders' equity, resulting in pre-tax losses of **$14 million** in Q1 2023 and gains of **$26 million** in Q1 2022[558](index=558&type=chunk) [Item 4. Controls and Procedures](index=78&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures and reports no material changes in internal control over financial reporting during the quarter [Disclosure Controls and Procedures](index=78&type=section&id=Disclosure%20Controls%20and%20Procedures) The CEO and CFO concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level as of March 31, 2023 - The CEO and CFO evaluated the effectiveness of disclosure controls and procedures as of March 31, 2023, and concluded they are effective at the reasonable assurance level[550](index=550&type=chunk) [Changes in Internal Control over Financial Reporting](index=78&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) There were no changes in internal control over financial reporting during Q1 2023 that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting - No changes in internal control over financial reporting occurred during Q1 2023 that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[564](index=564&type=chunk) Part II

The Chemours Company (NYSE:CC) Q4 2022 Earnings Conference Call February 10, 2023 8:00 AM ET Company Participants Jonathan Lock - Senior Vice President and Chief Development Officer Mark Newman - President and Chief Executive Officer Sameer Ralhan - Senior Vice President and Chief Financial Officer Conference Call Participants Duffy Fischer - Goldman Sachs Arun Viswanathan - RBC Capital Markets John McNulty - BMO Capital Markets Matthew DeYoe - Bank of America Securities Josh Spector - UBS Hassan Ahmed - Al ...

Fourth Quarter & Full Year 2022 Earnings Presentation February 9, 2023 We prepare our financial statements in accordance with Generally Accepted Accounting Principles ("GAAP"). Within this presentation we may make reference to Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Adjusted Effective Tax Rate, Return on Invested Capital (ROIC) and Net Leverage Ratio which are non-GAAP financial measures. The company includes these non-GAAP financial measures because manag ...

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-36794 1007 Market Street, Wilmington, Delaware 19801 (Address of Principal Executive Offices) Registrant's Telephone Number: (302) 773-1000 Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Trading Symbol(s) Name of Exchange on Wh ...

The Chemours Company (NYSE:CC) Q3 2022 Earnings Conference Call October 26, 2022 8:00 AM ET Company Participants Jonathan Lock - SVP & Chief Development Officer Mark Newman - President & CEO Sameer Ralhan - SVP & CFO Conference Call Participants Duffy Fischer - Goldman Sachs Arun Viswanathan - RBC Capital Markets John McNulty - BMO Capital Markets Mike Leithead - Barclays Matthew DeYoe - Bank of America James Cannon - UBS Hassan Ahmed - Alembic Global Advisors William Tang - Morgan Stanley Kevin Estok - Jef ...

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, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-36794 The Chemours Company (Exact Name of Registrant as Specified in Its Charter) Delaware 46-4845564 (State or other Jurisdiction of Incorporation or Organization) (I.R ...

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, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-36794 The Chemours Company (Exact Name of Registrant as Specified in Its Charter) Delaware 46-4845564 (State or other Jurisdiction of Incorporation or Organization) (I.R.S. E ...

The Chemours Company (NYSE:CC) Q2 2022 Earnings Conference Call July 29, 2022 8:30 AM ET Company Participants Mark Newman - President, Chief Executive Officer Sameer Ralhan - Senior Vice President, Chief Financial Officer Jonathan Lock - Senior Vice President, Chief Development Officer Conference Call Participants Arun Viswanathan - RBC Capital Markets Ross Huffman - Bank of America John McNulty - BMO Capital Markets Mike Leithead - Barclays Josh Spector - UBS Vincent Andrews - Morgan Stanley Kevin Estok - ...