☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Western Australia, Australia
|
98-1026700
|
|
(State or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S. Employer Identification Number)
|
263 Tresser Boulevard, Suite 1100
Stamford, Connecticut 06901
|
Lot 22 Mason Road,
Kwinana Beach, WA 6167
Australia
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
Page
|
|
PART I – FINANCIAL INFORMATION
|
|
3
|
|
45 | |
57 | |
58 | |
PART II – OTHER INFORMATION
|
|
59 | |
59 | |
59 | |
59 | |
59 | |
59 | |
60 | |
61 |
Page
No.
|
||
4
|
||
5
|
||
6
|
||
7
|
||
8
|
||
9
|
Three Months
Ended March 31,
|
||||||||
2017
|
2016
|
|||||||
Net sales
|
$
|
569
|
$
|
476
|
||||
Cost of goods sold
|
479
|
455
|
||||||
Gross profit
|
90
|
21
|
||||||
Selling, general and administrative expenses
|
(74
|
)
|
(50
|
)
|
||||
Restructuring expense
|
—
|
(2
|
)
|
|||||
Income (loss) from operations
|
16
|
(31
|
)
|
|||||
Interest and debt expense, net
|
(46
|
)
|
(46
|
)
|
||||
Gain on extinguishment of debt
|
—
|
4
|
||||||
Other expense, net
|
(6
|
)
|
(9
|
)
|
||||
Loss before income taxes
|
(36
|
)
|
(82
|
)
|
||||
Income tax provision
|
(2
|
)
|
(12
|
)
|
||||
Net loss
|
(38
|
)
|
(94
|
)
|
||||
Net income (loss) attributable to noncontrolling interest
|
3
|
(1
|
)
|
|||||
Net loss attributable to Tronox Limited
|
$
|
(41
|
)
|
$
|
(93
|
)
|
||
Loss per share, basic and diluted
|
$
|
(0.35
|
)
|
$
|
(0.80
|
)
|
||
Weighted average shares outstanding, basic and diluted (in thousands)
|
116,815
|
115,920
|
Three Months
Ended March 31,
|
||||||||
2017
|
2016
|
|||||||
Net loss
|
$
|
(38
|
)
|
$
|
(94
|
)
|
||
Other comprehensive income (loss):
|
||||||||
Foreign currency translation adjustments
|
24
|
53
|
||||||
Pension and postretirement plans, amortization of unrecognized actuarial losses, net of taxes of less than $1 million in each of the three months ended March 31, 2017 and 2016
|
1
|
1
|
||||||
Unrealized loss on derivative financial instruments (no tax impact, see Note 13)
|
(2
|
)
|
—
|
|||||
Other comprehensive income
|
23
|
54
|
||||||
Total comprehensive loss
|
(15
|
)
|
(40
|
)
|
||||
Comprehensive income (loss) attributable to noncontrolling interest:
|
||||||||
Net income (loss)
|
3
|
(1
|
)
|
|||||
Foreign currency translation adjustments
|
6
|
13
|
||||||
Comprehensive income attributable to noncontrolling interest
|
9
|
12
|
||||||
Comprehensive loss attributable to Tronox Limited
|
$
|
(24
|
)
|
$
|
(52
|
)
|
March 31,
2017
|
December 31,
2016
|
|||||||
ASSETS
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$
|
265
|
$
|
248
|
||||
Restricted cash
|
2
|
3
|
||||||
Accounts receivable, net of allowance for doubtful accounts
|
428
|
424
|
||||||
Inventories, net
|
510
|
532
|
||||||
Prepaid and other assets
|
40
|
49
|
||||||
Total current assets
|
1,245
|
1,256
|
||||||
Noncurrent Assets
|
||||||||
Property, plant and equipment, net
|
1,816
|
1,831
|
||||||
Mineral leaseholds, net
|
1,606
|
1,607
|
||||||
Intangible assets, net
|
217
|
223
|
||||||
Inventories, net
|
14
|
14
|
||||||
Other long-term assets
|
24
|
22
|
||||||
Total assets
|
$
|
4,922
|
$
|
4,953
|
||||
LIABILITIES AND EQUITY
|
||||||||
Current Liabilities
|
||||||||
Accounts payable
|
$
|
198
|
$
|
181
|
||||
Accrued liabilities
|
143
|
185
|
||||||
Short-term debt
|
150
|
150
|
||||||
Long-term debt due within one year
|
16
|
16
|
||||||
Income taxes payable
|
3
|
1
|
||||||
Total current liabilities
|
510
|
533
|
||||||
Noncurrent Liabilities
|
||||||||
Long-term debt
|
2,887
|
2,888
|
||||||
Pension and postretirement healthcare benefits
|
120
|
122
|
||||||
Asset retirement obligations
|
74
|
73
|
||||||
Long-term deferred tax liabilities
|
155
|
152
|
||||||
Other long-term liabilities
|
32
|
32
|
||||||
Total liabilities
|
3,778
|
3,800
|
||||||
Contingencies and Commitments
|
||||||||
Shareholders’ Equity
|
||||||||
Tronox Limited Class A ordinary shares, par value $0.01 — 66,966,397 shares issued and 66,241,691 shares outstanding at March 31, 2017 and 65,998,306 shares issued and 65,165,672 shares outstanding at December 31, 2016
|
1
|
1
|
||||||
Tronox Limited Class B ordinary shares, par value $0.01 — 51,154,280 shares issued and outstanding at March 31, 2017 and December 31, 2016
|
—
|
—
|
||||||
Capital in excess of par value
|
1,536
|
1,524
|
||||||
Accumulated deficit
|
(66
|
)
|
(19
|
)
|
||||
Accumulated other comprehensive loss
|
(480
|
)
|
(497
|
)
|
||||
Total Tronox Limited shareholders’ equity
|
991
|
1,009
|
||||||
Noncontrolling interest
|
153
|
144
|
||||||
Total equity
|
1,144
|
1,153
|
||||||
Total liabilities and equity
|
$
|
4,922
|
$
|
4,953
|
Three Months
Ended March 31,
|
||||||||
2017
|
2016
|
|||||||
Cash Flows from Operating Activities:
|
||||||||
Net loss
|
$
|
(38
|
)
|
$
|
(94
|
)
|
||
Adjustments to reconcile net loss to net cash provided by operating activities:
|
||||||||
Depreciation, depletion and amortization
|
61
|
55
|
||||||
Deferred income taxes
|
(1
|
)
|
(1
|
)
|
||||
Share-based compensation expense
|
14
|
5
|
||||||
Amortization of deferred debt issuance costs and discount on debt
|
3
|
3
|
||||||
Pension and postretirement healthcare benefit expense
|
2
|
2
|
||||||
Gain on extinguishment of debt
|
—
|
(4
|
)
|
|||||
Other, net
|
7
|
15
|
||||||
Contributions to employee pension and postretirement plans
|
(5
|
)
|
(4
|
)
|
||||
Changes in assets and liabilities:
|
||||||||
(Increase) decrease in accounts receivable, net
|
(3
|
)
|
26
|
|||||
(Increase) decrease in inventories, net
|
26
|
36
|
||||||
(Increase) decrease in prepaid and other assets
|
9
|
3
|
||||||
Increase (decrease) in accounts payable and accrued liabilities
|
(17
|
)
|
(52
|
)
|
||||
Increase (decrease) in taxes payable
|
2
|
11
|
||||||
Cash provided by operating activities
|
60
|
1
|
||||||
Cash Flows from Investing Activities:
|
||||||||
Capital expenditures
|
(32
|
)
|
(33
|
)
|
||||
Proceeds on sale of assets
|
—
|
1
|
||||||
Cash used in investing activities
|
(32
|
)
|
(32
|
)
|
||||
Cash Flows from Financing Activities:
|
||||||||
Repayments of debt
|
(4
|
)
|
(19
|
)
|
||||
Dividends paid
|
(6
|
)
|
(30
|
)
|
||||
Restricted stock and performance-based shares settled in cash for taxes
|
(2
|
)
|
—
|
|||||
Cash used in financing activities
|
(12
|
)
|
(49
|
)
|
||||
Effects of exchange rate changes on cash and cash equivalents
|
1
|
3
|
||||||
Net increase (decrease) in cash and cash equivalents
|
17
|
(77
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
248
|
229
|
||||||
Cash and cash equivalents at end of period
|
$
|
265
|
$
|
152
|
Tronox
Limited
Class A
Ordinary
Shares
|
Tronox
Limited
Class B
Ordinary
Shares
|
Capital in
Excess of
par Value
|
Accumulated
Deficit
|
Accumulated
Other
Comprehensive
Loss
|
Total
Tronox
Limited
Shareholders’
Equity
|
Non-
controlling
Interest
|
Total
Equity
|
|||||||||||||||||||||||||
Balance at January 1, 2017
|
$
|
1
|
$
|
—
|
$
|
1,524
|
$
|
(19
|
)
|
$
|
(497
|
)
|
$
|
1,009
|
$
|
144
|
$
|
1,153
|
||||||||||||||
Net loss
|
—
|
—
|
—
|
(41
|
)
|
—
|
(41
|
)
|
3
|
(38
|
)
|
|||||||||||||||||||||
Other comprehensive income
|
—
|
—
|
—
|
—
|
17
|
17
|
6
|
23
|
||||||||||||||||||||||||
Share-based compensation
|
—
|
—
|
14
|
—
|
—
|
14
|
—
|
14
|
||||||||||||||||||||||||
Shares cancelled
|
—
|
—
|
(2
|
)
|
—
|
—
|
(2
|
)
|
—
|
(2
|
)
|
|||||||||||||||||||||
Class A and Class B share dividends
|
—
|
—
|
—
|
(6
|
)
|
—
|
(6
|
)
|
—
|
(6
|
)
|
|||||||||||||||||||||
Balance at March 31, 2017
|
$
|
1
|
$
|
—
|
$
|
1,536
|
$
|
(66
|
)
|
$
|
(480
|
)
|
$
|
991
|
$
|
153
|
$
|
1,144
|
1.
|
The Company
|
Three Months Ended March 31, 2016
|
||||||||||||
As Reported
|
Adjustment
|
Revised
|
||||||||||
Net sales |
$
|
475
|
$
|
1
|
|
$
|
476
|
|||||
Gross profit
|
20
|
1
|
21
|
|||||||||
Selling, general and administrative expenses
|
(47
|
)
|
(3
|
)
|
(50
|
)
|
||||||
Loss from operations
|
(29
|
)
|
(2
|
)
|
(31
|
)
|
||||||
Loss before income taxes
|
(80
|
)
|
(2
|
)
|
(82
|
)
|
||||||
Net loss
|
(92
|
)
|
(2
|
)
|
(94
|
)
|
||||||
Net loss attributable to Tronox Limited
|
(91
|
)
|
(2
|
)
|
(93
|
)
|
||||||
Loss per share, basic and diluted
|
(0.78
|
)
|
(0.02
|
)
|
(0.80
|
)
|
Three Months Ended March 31, 2016
|
||||||||||||
As Reported
|
Adjustment
|
Revised
|
||||||||||
Net loss
|
$
|
(92
|
)
|
$
|
(2
|
)
|
$
|
(94
|
)
|
|||
Total comprehensive loss
|
(38
|
)
|
(2
|
)
|
(40
|
)
|
||||||
Comprehensive loss attributable to Tronox Limited
|
(50
|
)
|
(2
|
)
|
(52
|
)
|
December 31, 2016
|
||||||||||||
As Reported
|
Adjustment
|
Revised
|
||||||||||
Accounts receivable, net of allowance for doubtful accounts
|
$
|
421
|
$
|
3
|
$
|
424
|
||||||
Total current assets
|
1,253
|
3
|
1,256
|
|||||||||
Total assets
|
4,950
|
3
|
4,953
|
|||||||||
Accrued liabilities
|
174
|
11
|
185
|
|||||||||
Total current liabilities | 522 | 11 | 533 | |||||||||
Total liabilities
|
3,789
|
11
|
3,800
|
|||||||||
Accumulated deficit
|
(13
|
)
|
(6
|
)
|
(19
|
)
|
||||||
Accumulated other comprehensive loss
|
(495
|
)
|
(2
|
)
|
(497
|
)
|
||||||
Total Tronox Limited shareholders’ equity
|
1,017
|
(8
|
)
|
1,009
|
||||||||
Total equity
|
1,161
|
(8
|
)
|
1,153
|
||||||||
Total liabilities and equity
|
4,950
|
3
|
4,953
|
2.
|
Restructuring Expense
|
2017
|
2016
|
|||||||
Balance, January 1,
|
$
|
—
|
$
|
15
|
||||
Restructuring expense
|
—
|
2
|
||||||
Cash (payments) receipts
|
1
|
(13
|
)
|
|||||
Balance, March 31,
|
$
|
1
|
$
|
4
|
Three
Months
Ended
March 31,
2017
|
Three
Months
Ended
March 31,
2016
|
|||||||
TiO
2
|
$
|
—
|
|
$
|
1
|
|||
Alkali
|
1
|
—
|
||||||
Corporate
|
(1
|
)
|
1
|
|||||
Total
|
$
|
—
|
$
|
2
|
3. |
Income Taxes
|
Three Months Ended March 31,
|
||||||||
2017
|
2016
|
|||||||
Income tax provision
|
$
|
(2
|
)
|
$
|
(12
|
)
|
||
Loss before income taxes
|
$
|
(36
|
)
|
$
|
(82
|
)
|
||
Effective tax rate
|
(6
|
)%
|
(15
|
)%
|
4. |
Loss Per Share
|
Three Months Ended
March 31,
|
||||||||
2017
|
2016
|
|||||||
Numerator – Basic and Diluted:
|
||||||||
Net loss
|
$
|
(38
|
)
|
$
|
(94
|
)
|
||
Less: Net income (loss) attributable to noncontrolling interest
|
3
|
(1
|
)
|
|||||
Undistributed net loss
|
(41
|
)
|
(93
|
)
|
||||
Percentage allocated to ordinary shares
(1)
|
100
|
%
|
100
|
%
|
||||
Net loss available to ordinary shares
|
$
|
(41
|
)
|
$
|
(93
|
)
|
||
Denominator – Basic and Diluted:
|
||||||||
Weighted-average ordinary shares (in thousands)
|
116,815
|
115,920
|
||||||
Net loss per Ordinary Share
(2
)
:
|
||||||||
Basic and diluted net loss per ordinary share
|
$
|
(0.35
|
)
|
$
|
(0.80
|
)
|
(1) |
Our participating securities do not have a contractual obligation to share in losses; therefore, when we have a net loss, none of the loss is allocated to participating securities. Consequently, for the three months ended March 31, 2017 and 2016, the two class method did not have an effect on our net loss per ordinary share calculation, and as such, dividends paid during the year did not impact this calculation.
|
(2) |
Net loss per ordinary share amounts were calculated from exact, not rounded net loss and share information.
|
March 31, 2017
|
March 31, 2016
|
|||||||||||||||
Shares
|
Average
Exercise Price
|
Shares
|
Average
Exercise Price
|
|||||||||||||
Options
|
1,936,618
|
21.17
|
2,078,556
|
$
|
21.16
|
|||||||||||
Series A Warrants
|
1,432,622
|
8.51
|
1,438,289
|
$
|
8.55
|
|||||||||||
Series B Warrants
|
1,942,323
|
9.37
|
1,947,234
|
$
|
9.43
|
|||||||||||
Restricted share units
|
6,965,668
|
10.69
|
5,700,695
|
$
|
7.28
|
5. |
Accounts Receivable, Net of Allowance for Doubtful Accounts
|
March 31,
2017
|
December 31,
2016
|
|||||||
Trade receivables
|
$
|
413
|
$
|
408
|
||||
Other
|
17
|
18
|
||||||
Subtotal
|
430
|
426
|
||||||
Allowance for doubtful accounts
|
(2
|
)
|
(2
|
)
|
||||
Accounts receivable, net of allowance for doubtful accounts
|
$
|
428
|
$
|
424
|
6. |
Inventories, Net
|
March 31,
2017
|
December 31,
2016
|
|||||||
Raw materials
|
$
|
193
|
$
|
194
|
||||
Work-in-process
|
35
|
41
|
||||||
Finished goods, net
|
191
|
204
|
||||||
Materials and supplies, net
(1)
|
105
|
107
|
||||||
Total
|
524
|
546
|
||||||
Less: Inventories, net – non-current
|
(14
|
)
|
(14
|
)
|
||||
Inventories, net - current
|
$
|
510
|
$
|
532
|
(1) |
Consists of processing chemicals, maintenance supplies, and spare parts, which will be consumed directly and indirectly in the production of our products.
|
7. |
Property, Plant and Equipment, Net
|
March 31,
2017
|
December 31,
2016
|
|||||||
Land and land improvements
|
$
|
159
|
$
|
159
|
||||
Buildings
|
314
|
309
|
||||||
Machinery and equipment
|
1,916
|
1,888
|
||||||
Construction-in-progress
|
143
|
146
|
||||||
Other
|
52
|
50
|
||||||
Total
|
2,584
|
2,552
|
||||||
Less accumulated depreciation and amortization
|
(768
|
)
|
(721
|
)
|
||||
Property, plant and equipment, net
(1)
|
$
|
1,816
|
$
|
1,831
|
(1)
|
Substantially all of these assets are pledged as collateral for our debt. See Note 11.
|
8. |
Mineral Leaseholds, Net
|
March 31,
2017
|
December 31,
2016
|
|||||||
Mineral leaseholds
|
$
|
2,005
|
$
|
1,996
|
||||
Less accumulated depletion
|
(399
|
)
|
(389
|
)
|
||||
Mineral leaseholds, net
|
$
|
1,606
|
$
|
1,607
|
9. |
Intangible Assets, Net
|
March 31, 2017
|
December 31, 2016
|
|||||||||||||||||||||||
Gross
Cost
|
Accumulated
Amortization
|
Net Carrying
Amount
|
Gross
Cost
|
Accumulated
Amortization
|
Net Carrying
Amount
|
|||||||||||||||||||
Customer relationships
|
$
|
291
|
$
|
(120
|
)
|
$
|
171
|
$
|
291
|
$
|
(115
|
)
|
$
|
176
|
||||||||||
TiO
2
technology
|
32
|
(10
|
)
|
22
|
32
|
(9
|
)
|
23
|
||||||||||||||||
Internal-use software
|
45
|
(21
|
)
|
24
|
45
|
(21
|
)
|
24
|
||||||||||||||||
Intangible assets, net
|
$
|
368
|
$
|
(151
|
)
|
$
|
217
|
$
|
368
|
$
|
(145
|
)
|
$
|
223
|
10. |
Accrued Liabilities
|
March 31,
2017
|
December 31,
2016
|
|||||||
Employee-related costs and benefits
|
$
|
63
|
$
|
83
|
||||
Restructuring costs
|
1
|
—
|
||||||
Interest
|
10
|
35
|
||||||
Sales rebates
|
19
|
25
|
||||||
Taxes other than income taxes
|
7
|
10
|
||||||
Professional fees and other
|
43
|
32
|
||||||
Accrued liabilities
|
$
|
143
|
$
|
185
|
11. |
Debt
|
Original
Principal
|
Annual
Interest Rate
|
Maturity
Date
|
March 31,
2017
|
December 31,
2016
|
|||||||||||||
Term Loan, net of unamortized discount
(1)
|
$
|
1,500
|
Variable
|
3/19/2020
|
$
|
1,437
|
$
|
1,441
|
|||||||||
Senior Notes due 2020
|
$
|
900
|
6.375
|
%
|
8/15/2020
|
896
|
896
|
||||||||||
Senior Notes due 2022
|
$
|
600
|
7.50
|
%
|
3/15/2022
|
584
|
584
|
||||||||||
Lease financing
|
19
|
19
|
|||||||||||||||
Total borrowings under long-term debt
|
2,936
|
2,940
|
|||||||||||||||
Less: Long-term debt due within one year
|
(16
|
)
|
(16
|
)
|
|||||||||||||
Debt issuance costs
|
(33
|
)
|
(36
|
)
|
|||||||||||||
Long-term debt
|
$
|
2,887
|
$
|
2,888
|
(1) |
Average effective interest rate of 5.0% and 4.9% during the three months ended March 31, 2017 and 2016, respectively.
|
Total
Borrowings
|
||||
2017
|
$
|
12
|
||
2018
|
16
|
|||
2019
|
16
|
|||
2020
|
2,298
|
|||
2021
|
1
|
|||
Thereafter
|
597
|
|||
Total
|
2,940
|
|||
Remaining accretion associated with the Term Loan
|
(4
|
)
|
||
Total borrowings under long-term debt
|
$
|
2,936
|
Three Months
Ended March 31,
|
||||||||
2017
|
2016
|
|||||||
Interest on debt
|
$
|
43
|
$
|
44
|
||||
Amortization of deferred debt issuance costs and discounts on debt
|
3
|
3
|
||||||
Capitalized interest
|
(1
|
)
|
(1
|
)
|
||||
Other
|
1
|
—
|
||||||
Total interest and debt expense, net
|
$
|
46
|
$
|
46
|
12. |
Asset Retirement Obligations
|
Three Months
Ended March 31,
|
||||||||
2017
|
2016
|
|||||||
Balance, January 1,
|
$
|
76
|
$
|
81
|
||||
Accretion expense
|
1
|
1
|
||||||
Remeasurement/translation
|
3
|
4
|
||||||
Changes in estimates, including cost and timing of cash flows
|
—
|
1
|
||||||
Settlements/payments
|
(1
|
)
|
—
|
|||||
Balance, March 31,
|
$
|
79
|
$
|
87
|
March 31,
2017
|
December 31,
2016
|
|||||||
Current portion included in “Accrued liabilities”
|
$
|
5
|
$
|
3
|
||||
Noncurrent portion included in “Asset retirement obligations”
|
74
|
73
|
||||||
Asset retirement obligations
|
$
|
79
|
$
|
76
|
13. |
Derivative Instruments
|
14. |
Commitments and Contingencies
|
15. |
Shareholders’ Equity
|
Class A Shares:
|
||||
Balance at January 1, 2017
|
65,165,672
|
|||
Shares issued for share-based compensation
|
1,160,133
|
|||
Shares issued upon warrants exercised
|
16,329
|
|||
Shares issued
cancelled for share-based compensation
|
(100,443
|
)
|
||
Balance at March 31, 2017
|
66,241,691
|
|||
Class B Shares:
|
||||
Balance at both March 31, 2017and December 31, 2016
|
51,154,280
|
Q1 2017
|
||||
Dividend per share
|
$
|
0.045
|
||
Total dividend
|
$
|
6
|
||
Record date (close of business)
|
March 6
|
Q1 2016
|
||||
Dividend per share
|
$
|
0.25
|
||
Total dividend
|
$
|
30
|
||
Record date (close of business)
|
March 4
|
Cumulative
Translation
Adjustment
|
Pension
Liability
Adjustment
|
Unrealized
Gains (Losses) on
Derivatives
|
Total
|
|||||||||||||
Balance, January 1, 2017
|
$
|
(408
|
)
|
$
|
(92
|
)
|
$
|
3
|
$
|
(497
|
)
|
|||||
Other comprehensive income (loss)
|
18
|
—
|
(2
|
)
|
16
|
|||||||||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
1
|
—
|
1
|
||||||||||||
Balance, March 31, 2017
|
$
|
(390
|
)
|
$
|
(91
|
)
|
$
|
1
|
$
|
(480
|
)
|
Cumulative
Translation
Adjustment
|
Pension
Liability
Adjustment
|
Unrealized
Gains (Losses) on
Derivatives
|
Total
|
|||||||||||||
Balance, January 1, 2016
|
$
|
(496
|
)
|
$
|
(102
|
)
|
$
|
-—
|
$
|
(598
|
)
|
|||||
Other comprehensive income
|
40
|
—
|
—
|
40
|
||||||||||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
1
|
—
|
1
|
||||||||||||
Balance, March 31, 2016
|
$
|
(456
|
)
|
$
|
(101
|
)
|
$
|
-—
|
$
|
(557
|
)
|
16. |
Noncontrolling Interest
|
2017
|
2016
|
|||||||
Balance, January 1
|
$
|
144
|
$
|
112
|
||||
Net income (loss) attributable to noncontrolling interest
|
3
|
(1
|
)
|
|||||
Effect of exchange rate changes
|
6
|
13
|
||||||
Balance, March 31
|
$
|
153
|
$
|
124
|
17. |
Share-Based Compensation
|
Three Months
Ended March 31,
|
||||||||
2017
|
2016
|
|||||||
Restricted shares and restricted share units
|
$
|
14
|
$
|
4
|
||||
Options
|
—
|
1
|
||||||
Total compensation expense
|
$
|
14
|
$
|
5
|
Number of
Shares
|
Weighted Average
Grant Date
Fair Value
|
|||||||
Outstanding, January 1, 2017
|
284,400
|
$
|
6.09
|
|||||
Vested
|
(107,928
|
)
|
8.00
|
|||||
Outstanding, March 31, 2017
|
176,472
|
$
|
4.92
|
|||||
Expected to vest, March 31, 2017
|
176,472
|
$
|
4.92
|
Number of
Shares
|
Weighted Average
Grant Date
Fair Value
|
|||||||
Outstanding, January 1, 2017
|
5,587,331
|
$
|
7.19
|
|||||
Granted
|
2,531,246
|
17.72
|
||||||
Vested
|
(1,052,205
|
)
|
8.74
|
|||||
Forfeited
|
(100,704
|
)
|
13.54
|
|||||
Outstanding, March 31, 2017
|
6,965,668
|
$
|
10.69
|
|||||
Expected to vest, March 31, 2017
|
7,539,300
|
$
|
10.02
|
Number of
Options
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Contractual
Life (years)
|
Intrinsic
Value
|
|||||||||||||
Outstanding, January 1, 2017
|
1,970,481
|
$
|
21.19
|
6.38
|
$
|
—
|
||||||||||
Forfeited
|
(2,285
|
)
|
21.98
|
|||||||||||||
Expired
|
(31,578
|
)
|
22.44
|
|||||||||||||
Outstanding, March 31, 2017
|
1,936,618
|
$
|
21.17
|
6.13
|
$
|
—
|
||||||||||
Expected to vest, March 31, 2017
|
2,557
|
$
|
27.26
|
7.48
|
$
|
—
|
||||||||||
Exercisable, March 31, 2017
|
1,934,029
|
$
|
21.16
|
6.13
|
$
|
—
|
18. |
Pension and Other Postretirement Healthcare Benefits
|
Three Months
Ended March 31,
|
||||||||
2017
|
2016
|
|||||||
Net periodic cost:
|
||||||||
Service cost
|
$
|
1
|
$
|
1
|
||||
Interest cost
|
4
|
5
|
||||||
Expected return on plan assets
|
(4
|
)
|
(5
|
)
|
||||
Net amortization of actuarial losses
|
1
|
1
|
||||||
Total net periodic cost
|
$
|
2
|
$
|
2
|
19. |
Acquisition of Alkali Chemicals Group
|
Valuation
|
||||
Consideration:
|
||||
Purchase price
|
$
|
1,650
|
||
Fair Value of Assets Acquired and Liabilities Assumed:
|
||||
Current Assets:
|
||||
Accounts receivable
|
$
|
147
|
||
Inventories
|
48
|
|||
Prepaid and other assets
|
32
|
|||
Total Current Assets
|
227
|
|||
Property, plant and equipment
(1)
|
767
|
|||
Mineral leaseholds
(2)
|
739
|
|||
Other long-term assets
|
3
|
|||
Total Assets
|
$
|
1,736
|
||
Current Liabilities:
|
||||
Accounts payable
|
46
|
|||
Accrued liabilities
|
28
|
|||
Total Current Liabilities
|
74
|
|||
Noncurrent Liabilities:
|
||||
Other
|
12
|
|||
Total Liabilities
|
86
|
|||
Net Assets
|
$
|
1,650
|
(1) |
The fair value of property, plant and equipment was determined using the cost approach, which estimates the replacement cost of each asset using current prices and labor costs, less estimates for physical, functional and technological obsolescence, based on the estimated useful life ranging from 5 to 38 years
|
(2) |
The fair value of mineral rights was determined using the Discounted Cash Flow method, which was based upon the present value of the estimated future cash flows for the expected life of the asset taking into account the relative risk of achieving those cash flows and the time value of money. A discount rate of 10.4% was used taking into account the risks associated with such assets.
|
20. |
Related Parties
|
21. |
Segment Information
|
• |
exploration, mining, and beneficiation of mineral sands deposits;
|
• |
production of titanium feedstock (including chloride slag, slag fines, and rutile), pig iron, and zircon;
|
• |
production and marketing of TiO
2
; and
|
• |
electrolytic manganese dioxide manufacturing and marketing.
|
Three Months
Ended March 31,
|
||||||||
2017
|
2016
|
|||||||
TiO
2
segment
|
$
|
378
|
$
|
285
|
||||
Alkali segment
|
191
|
191
|
||||||
Net sales
|
$
|
569
|
$
|
476
|
||||
TiO
2
segment
|
$
|
32
|
$
|
(36
|
)
|
|||
Alkali segment
|
19
|
21
|
||||||
Corporate
|
(35
|
)
|
(16
|
)
|
||||
Income (loss) from operations
|
16
|
(31
|
)
|
|||||
Interest and debt expense, net
|
(46
|
)
|
(46
|
)
|
||||
Gain on extinguishment of debt
|
—
|
4
|
||||||
Other income (expense), net
|
(6
|
)
|
(9
|
)
|
||||
Loss before income taxes
|
(36
|
)
|
(82
|
)
|
||||
Income tax provision
|
(2
|
)
|
(12
|
)
|
||||
Net loss
|
$
|
(38
|
)
|
$
|
(94
|
)
|
Three Months
Ended March 31,
|
||||||||
2017
|
2016
|
|||||||
U.S. operations
|
$
|
349
|
$
|
310
|
||||
International operations:
|
||||||||
Australia
|
94
|
76
|
||||||
South Africa
|
74
|
37
|
||||||
The Netherlands
|
52
|
53
|
||||||
Total net sales
|
$
|
569
|
$
|
476
|
Three Months
Ended March 31,
|
||||||||
2017
|
2016
|
|||||||
Pigment
|
$
|
272
|
$
|
216
|
||||
Alkali
|
191
|
191
|
||||||
Titanium feedstock
|
92
|
57
|
||||||
Electrolytic
|
14
|
12
|
||||||
Total net sales
|
$
|
569
|
$
|
476
|
Three Months
Ended March 31,
|
||||||||
2017
|
2016
|
|||||||
TiO
2
segment
|
$
|
20
|
$
|
17
|
||||
Alkali segment
|
12
|
16
|
||||||
Total
|
$
|
32
|
$
|
33
|
March 31,
2017
|
December 31,
2016
|
|||||||
TiO
2
segment
|
$
|
2,970
|
$
|
2,991
|
||||
Alkali segment
|
1,645
|
1,671
|
||||||
Corporate
|
307
|
291
|
||||||
Total
|
$
|
4,922
|
$
|
4,953
|
22. |
Guarantor Condensed Consolidating Financial Statements
|
• |
Sale or other disposition of such Guarantor Subsidiary’s capital stock or all or substantially all of its assets and all of the indenture obligations (other than contingent obligations) of such Subsidiary Guarantor in respect of all other indebtedness of the Subsidiary Guarantors terminate upon the consummation of such transaction;
|
• |
Designation of such Guarantor Subsidiary as an “unrestricted subsidiary” under the indenture;
|
• |
In the case of certain Guarantor Subsidiaries that incur or guarantee indebtedness under certain credit facilities, upon the release or discharge of such Guarantor Subsidiary’s guarantee or incurrence of indebtedness that resulted in the creation of such guarantee, except a discharge or release as a result of payment under such guarantee;
|
• |
Legal defeasance, covenant defeasance, or satisfaction and discharge of the indenture obligations;
|
• |
Payment in full of the aggregate principal amount of all outstanding Senior Notes due 2020 and all other obligations under the indenture; or
|
• |
Release or discharge of the Guarantor Subsidiary’s guarantee of certain other indebtedness.
|
Consolidated
|
Eliminations
|
Tronox
Finance
LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
Net sales
|
$
|
569
|
$ |
(65
|
)
|
$ |
—
|
$ |
—
|
$ |
458
|
$ |
176
|
|||||||||||
Cost of goods sold
|
479
|
(64
|
)
|
—
|
—
|
396
|
147
|
|||||||||||||||||
Gross profit
|
90
|
(1
|
)
|
—
|
—
|
62
|
29
|
|||||||||||||||||
Selling, general and administrative expenses
|
(74
|
)
|
1
|
—
|
(19
|
)
|
(46
|
)
|
(10
|
)
|
||||||||||||||
Income (loss) from operations
|
16
|
—
|
—
|
(19
|
)
|
16
|
19
|
|||||||||||||||||
Interest and debt expense, net
|
(46
|
)
|
—
|
(26
|
)
|
—
|
(1
|
)
|
(19
|
)
|
||||||||||||||
Intercompany interest income (expense)
|
—
|
—
|
—
|
5
|
(5
|
)
|
—
|
|||||||||||||||||
Other income (expense), net
|
(6
|
)
|
—
|
—
|
(3
|
)
|
2
|
(5
|
)
|
|||||||||||||||
Equity in earnings of subsidiary
|
—
|
39
|
—
|
(17
|
)
|
(22
|
)
|
—
|
||||||||||||||||
Income (loss) before income taxes
|
(36
|
)
|
39
|
(26
|
)
|
(34
|
)
|
(10
|
)
|
(5
|
)
|
|||||||||||||
Income tax benefit (provision)
|
(2
|
)
|
—
|
8
|
(7
|
)
|
(8
|
)
|
5
|
|||||||||||||||
Net income (loss)
|
(38
|
)
|
39
|
(18
|
)
|
(41
|
)
|
(18
|
)
|
—
|
||||||||||||||
Net income attributable to noncontrolling interest
|
3
|
3
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Net income (loss) attributable to Tronox Limited
|
$
|
(41
|
)
|
$ |
36
|
$ |
(18
|
)
|
$ |
(41
|
)
|
$ |
(18
|
)
|
$ |
—
|
Consolidated
|
Eliminations
|
Tronox
Finance
LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
Net income (loss)
|
$
|
(38
|
)
|
$ |
39
|
|
$ |
(18
|
) | $ |
(41
|
)
|
$ |
(18
|
) | $ |
—
|
|||||||
Other comprehensive income (loss):
|
||||||||||||||||||||||||
Foreign currency translation adjustments
|
24
|
(43
|
)
|
—
|
18
|
24
|
25
|
|||||||||||||||||
Pension and postretirement plans
|
1
|
(1
|
)
|
—
|
1
|
1
|
—
|
|||||||||||||||||
Unrealized gain (loss) on derivative financial instruments
|
(2
|
)
|
2
|
—
|
(2
|
)
|
(2
|
)
|
—
|
|||||||||||||||
Other comprehensive income (loss)
|
23
|
(42
|
)
|
—
|
17
|
23
|
25
|
|||||||||||||||||
Total comprehensive income (loss)
|
(15
|
)
|
(3
|
)
|
(18
|
) |
(24
|
)
|
5
|
25
|
||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest:
|
||||||||||||||||||||||||
Net income
|
3
|
3
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Foreign currency translation adjustments
|
6
|
6
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest
|
9
|
9
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Comprehensive income (loss) attributable to Tronox Limited
|
$
|
(24
|
)
|
$ |
(12
|
)
|
$ |
(18
|
) | $ |
(24
|
)
|
$ |
5
|
$ |
25
|
Consolidated
|
Eliminations
|
Tronox
Finance
LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Cash and cash equivalents
|
$
|
265
|
$ |
—
|
$ |
—
|
$ |
10
|
$ |
151
|
$ |
104
|
||||||||||||
Restricted cash
|
2
|
—
|
—
|
—
|
2
|
—
|
||||||||||||||||||
Accounts receivable, net
|
428
|
—
|
—
|
—
|
321
|
107
|
||||||||||||||||||
Inventories, net
|
510
|
(13
|
)
|
—
|
—
|
340
|
183
|
|||||||||||||||||
Other current assets
|
40
|
(528
|
)
|
101
|
69
|
198
|
200
|
|||||||||||||||||
Investment in subsidiaries
|
—
|
(1,449
|
)
|
—
|
1,127
|
322
|
—
|
|||||||||||||||||
Property, plant and equipment, net
|
1,816
|
—
|
—
|
—
|
1,299
|
517
|
||||||||||||||||||
Mineral leaseholds, net
|
1,606
|
—
|
—
|
—
|
1,230
|
376
|
||||||||||||||||||
Intercompany loans receivable
|
—
|
(2,523
|
)
|
1,149
|
—
|
158
|
1,216
|
|||||||||||||||||
Other long-term assets
|
255
|
—
|
—
|
—
|
223
|
32
|
||||||||||||||||||
Total assets
|
$
|
4,922
|
$ |
(4,513
|
)
|
$ |
1,250
|
$ |
1,206
|
$ |
4,244
|
$ |
2,735
|
|||||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||||||||
Short-term debt
|
$
|
150
|
—
|
—
|
—
|
150
|
—
|
|||||||||||||||||
Other current liabilities
|
360
|
(528
|
)
|
48
|
92
|
536
|
212
|
|||||||||||||||||
Long-term debt
|
2,887
|
—
|
1,462
|
—
|
—
|
1,425
|
||||||||||||||||||
Intercompany loans payable
|
—
|
(2,523
|
)
|
—
|
121
|
2,365
|
37
|
|||||||||||||||||
Other long-term liabilities
|
381
|
—
|
—
|
2
|
198
|
181
|
||||||||||||||||||
Total liabilities
|
3,778
|
(3,051
|
)
|
1,510
|
215
|
3,249
|
1,855
|
|||||||||||||||||
Total equity
|
1,144
|
(1,462
|
)
|
(260
|
)
|
991
|
995
|
880
|
||||||||||||||||
Total liabilities and equity
|
$
|
4,922
|
$ |
(4,513
|
)
|
$ |
1,250
|
$ |
1,206
|
$ |
4,244
|
$ |
2,735
|
Consolidated
|
Eliminations
|
Tronox
Finance
LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
Cash Flows from Operating Activities:
|
||||||||||||||||||||||||
Net income (loss)
|
$
|
(38
|
)
|
$ |
39
|
$ |
(18
|
)
|
$ |
(41
|
)
|
$ |
(18
|
)
|
$ |
—
|
||||||||
Depreciation, depletion and amortization
|
61
|
—
|
—
|
—
|
45
|
16
|
||||||||||||||||||
Other
|
37
|
(39
|
)
|
(33
|
)
|
42
|
52
|
15
|
||||||||||||||||
Cash provided by (used in) operating activities
|
60
|
—
|
(51
|
)
|
1
|
79
|
31
|
|||||||||||||||||
Cash Flows from Investing Activities:
|
||||||||||||||||||||||||
Capital expenditures
|
(32
|
)
|
—
|
—
|
—
|
(23
|
)
|
(9
|
)
|
|||||||||||||||
Collections of intercompany loans
|
—
|
(71
|
)
|
50
|
—
|
—
|
21
|
|||||||||||||||||
Issuance of Intercompany loans
|
—
|
15
|
—
|
—
|
(15
|
) |
—
|
|||||||||||||||||
Cash provided by (used in) investing activities
|
(32
|
)
|
(56
|
)
|
50
|
—
|
(38
|
)
|
12
|
|||||||||||||||
Cash Flows from Financing Activities:
|
||||||||||||||||||||||||
Repayments of debt
|
(4
|
)
|
—
|
—
|
—
|
—
|
(4
|
)
|
||||||||||||||||
Repayments of intercompany loans
|
—
|
71
|
—
|
—
|
(71
|
)
|
—
|
|||||||||||||||||
Proceeds from intercompany loans
|
—
|
(15
|
) |
—
|
15
|
—
|
—
|
|||||||||||||||||
Dividends paid
|
(6
|
)
|
—
|
—
|
(6
|
)
|
—
|
—
|
||||||||||||||||
Restricted stock and performance-based shares settled in cash for taxes
|
(2
|
)
|
—
|
—
|
(2
|
)
|
—
|
—
|
||||||||||||||||
Cash provided by (used in) financing activities
|
(12
|
)
|
56
|
—
|
7
|
|
(71
|
)
|
(4
|
)
|
||||||||||||||
Effects of exchange rate changes on cash and cash equivalents
|
1
|
—
|
—
|
—
|
—
|
1
|
||||||||||||||||||
Net increase (decrease) in cash and cash equivalents
|
17
|
—
|
(1
|
)
|
8
|
(30
|
)
|
40
|
||||||||||||||||
Cash and cash equivalents at beginning of period
|
$
|
248
|
$ |
—
|
$ |
1
|
$ |
2
|
$ |
181
|
$ |
64
|
||||||||||||
Cash and cash equivalents at end of period
|
$
|
265
|
$ |
—
|
$ |
—
|
$ |
10
|
$ |
151
|
$ |
104
|
Consolidated
|
Eliminations
|
Tronox
Finance
LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
Net sales
|
$
|
476
|
$
|
(60
|
)
|
$
|
—
|
$
|
—
|
$
|
404
|
$
|
132
|
|||||||||||
Cost of goods sold
|
455
|
(57
|
)
|
—
|
—
|
385
|
127
|
|||||||||||||||||
Gross profit
|
21
|
(3
|
)
|
—
|
—
|
19
|
5
|
|||||||||||||||||
Selling, general and administrative expenses
|
(50
|
)
|
1
|
—
|
(13
|
)
|
(28
|
)
|
(10
|
)
|
||||||||||||||
Restructuring expense
|
(2
|
)
|
—
|
—
|
—
|
(1
|
)
|
(1
|
)
|
|||||||||||||||
Income (loss) from operations
|
(31
|
)
|
(2
|
)
|
—
|
(13
|
)
|
(10
|
)
|
(6
|
)
|
|||||||||||||
Interest and debt expense, net
|
(46
|
)
|
—
|
(26
|
)
|
—
|
(2
|
)
|
(18
|
)
|
||||||||||||||
Intercompany interest income (expense)
|
—
|
—
|
—
|
127
|
(140
|
)
|
13
|
|||||||||||||||||
Gain on extinguishment of debt
|
4
|
—
|
4
|
—
|
—
|
—
|
||||||||||||||||||
Other income (expense), net
|
(9
|
)
|
—
|
—
|
—
|
—
|
(9
|
)
|
||||||||||||||||
Equity in earnings of subsidiary
|
—
|
189
|
—
|
(160
|
)
|
(29
|
)
|
—
|
||||||||||||||||
Income (loss) before income taxes
|
(82
|
)
|
187
|
(22
|
)
|
(46
|
)
|
(181
|
)
|
(20
|
)
|
|||||||||||||
Income tax benefit (provision)
|
(12
|
)
|
—
|
7
|
(47
|
)
|
30
|
(2
|
)
|
|||||||||||||||
Net income (loss)
|
(94
|
)
|
187
|
(15
|
)
|
(93
|
)
|
(151
|
)
|
(22
|
)
|
|||||||||||||
Net loss attributable to noncontrolling interest
|
(1
|
)
|
(1
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||
Net income (loss) attributable to Tronox Limited
|
$
|
(93
|
)
|
$
|
188
|
$
|
(15
|
)
|
$
|
(93
|
)
|
$
|
(151
|
)
|
$
|
(22
|
)
|
Consolidated
|
Eliminations
|
Tronox
Finance
LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
Net income (loss)
|
$
|
(94
|
)
|
$
|
187
|
$
|
(15
|
)
|
$
|
(93
|
)
|
$
|
(151
|
)
|
$
|
(22
|
)
|
|||||||
Other comprehensive income (loss):
|
||||||||||||||||||||||||
Foreign currency translation adjustments
|
53
|
(88
|
)
|
—
|
40
|
48
|
53
|
|||||||||||||||||
Pension and postretirement plans
|
1
|
—
|
—
|
1
|
—
|
—
|
||||||||||||||||||
Other comprehensive income (loss)
|
54
|
(88
|
)
|
—
|
41
|
48
|
53
|
|||||||||||||||||
Total comprehensive income (loss)
|
(40
|
)
|
99
|
(15
|
)
|
(52
|
)
|
(103
|
)
|
31
|
||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest:
|
||||||||||||||||||||||||
Net loss
|
(1
|
)
|
(1
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||
Foreign currency translation adjustments
|
13
|
13
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Comprehensive income attributable to noncontrolling interest
|
12
|
12
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Comprehensive income (loss) attributable to Tronox Limited
|
$
|
(52
|
)
|
$
|
87
|
$
|
(15
|
)
|
$
|
(52
|
)
|
$
|
(103
|
)
|
$
|
31
|
Consolidated
|
Eliminations
|
Tronox
Finance
LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Cash and cash equivalents
|
$
|
248
|
$
|
—
|
$
|
1
|
$
|
2
|
$
|
181
|
$
|
64
|
||||||||||||
Restricted cash
|
3
|
—
|
—
|
—
|
3
|
—
|
||||||||||||||||||
Accounts receivable, net
|
424
|
—
|
—
|
—
|
325
|
99
|
||||||||||||||||||
Inventories, net
|
532
|
(13
|
)
|
—
|
—
|
363
|
182
|
|||||||||||||||||
Other current assets
|
49
|
(531
|
)
|
62
|
91
|
277
|
150
|
|||||||||||||||||
Investment in subsidiaries
|
—
|
(1,327
|
)
|
—
|
1,009
|
318
|
—
|
|||||||||||||||||
Property, plant and equipment, net
|
1,831
|
—
|
—
|
—
|
1,322
|
509
|
||||||||||||||||||
Mineral leaseholds, net
|
1,607
|
—
|
—
|
—
|
1,236
|
371
|
||||||||||||||||||
Intercompany loans receivable
|
—
|
(2,926
|
)
|
1,200
|
405
|
37
|
1,284
|
|||||||||||||||||
Other long-term assets
|
259
|
—
|
—
|
—
|
228
|
31
|
||||||||||||||||||
Total assets
|
$
|
4,953
|
$
|
(4,797
|
)
|
$
|
1,263
|
$
|
1,507
|
$
|
4,290
|
$
|
2,690
|
|||||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||||||||
Short-term debt
|
$
|
150
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
150
|
$
|
—
|
||||||||||||
Other current liabilities
|
383
|
(531
|
)
|
43
|
495
|
181
|
195
|
|||||||||||||||||
Long-term debt
|
2,888
|
—
|
1,462
|
—
|
—
|
1,426
|
||||||||||||||||||
Intercompany loans payable
|
—
|
(2,926
|
)
|
—
|
—
|
2,888
|
38
|
|||||||||||||||||
Other long-term liabilities
|
379
|
—
|
—
|
3
|
198
|
178
|
||||||||||||||||||
Total liabilities
|
3,800
|
(3,457
|
)
|
1,505
|
498
|
3,417
|
1,837
|
|||||||||||||||||
Total equity
|
1,153
|
(1,340
|
)
|
(242
|
)
|
1,009
|
873
|
853
|
||||||||||||||||
Total liabilities and equity
|
$
|
4,953
|
$
|
(4,797
|
)
|
$
|
1,263
|
$
|
1,507
|
$
|
4,290
|
$
|
2,690
|
Consolidated
|
Eliminations
|
Tronox
Finance
LLC
|
Parent
Company
|
Guarantor
Subsidiaries
|
Non-
Guarantor
Subsidiaries
|
|||||||||||||||||||
Cash Flows from Operating Activities:
|
||||||||||||||||||||||||
Net income (loss)
|
$
|
(94
|
)
|
$
|
187
|
$
|
(15
|
)
|
$
|
(93
|
)
|
$
|
(151
|
)
|
$
|
(22
|
)
|
|||||||
Depreciation, depletion and amortization
|
55
|
—
|
—
|
—
|
46
|
9
|
||||||||||||||||||
Other
|
40
|
(187
|
)
|
(36
|
)
|
137
|
133
|
(7
|
)
|
|||||||||||||||
Cash provided by (used in) operating activities
|
1
|
—
|
(51
|
)
|
44
|
28
|
(20
|
)
|
||||||||||||||||
Cash Flows from Investing Activities:
|
||||||||||||||||||||||||
Capital expenditures
|
(33
|
)
|
—
|
—
|
—
|
(23
|
)
|
(10
|
)
|
|||||||||||||||
Proceeds on sale of assets
|
1
|
—
|
—
|
—
|
1
|
—
|
||||||||||||||||||
Collections of intercompany loans
|
—
|
(97
|
)
|
79
|
—
|
—
|
18
|
|||||||||||||||||
Issuance of Intercompany loans
|
—
|
67
|
—
|
—
|
(67
|
)
|
—
|
|||||||||||||||||
Cash provided by (used in) investing activities
|
(32
|
)
|
(30
|
)
|
79
|
—
|
(89
|
)
|
8
|
|||||||||||||||
Cash Flows from Financing Activities:
|
||||||||||||||||||||||||
Repayments of debt
|
(19
|
)
|
—
|
(15
|
)
|
—
|
—
|
(4
|
)
|
|||||||||||||||
Repayments of intercompany loans
|
—
|
97
|
—
|
(79
|
)
|
(18
|
)
|
—
|
||||||||||||||||
Proceeds from intercompany loans
|
—
|
(67
|
)
|
—
|
67
|
—
|
—
|
|||||||||||||||||
Dividends paid
|
(30
|
)
|
—
|
—
|
(30
|
)
|
—
|
—
|
||||||||||||||||
Cash provided by (used in) financing activities
|
(49
|
)
|
30
|
(15
|
)
|
(42
|
)
|
(18
|
)
|
(4
|
)
|
|||||||||||||
Effects of exchange rate changes on cash and cash equivalents
|
3
|
—
|
—
|
—
|
—
|
3
|
||||||||||||||||||
Net increase (decrease) in cash and cash equivalents
|
(77
|
)
|
—
|
13
|
2
|
(79
|
)
|
(13
|
)
|
|||||||||||||||
Cash and cash equivalents at beginning of period
|
$
|
229
|
$
|
—
|
$
|
—
|
$
|
1
|
$
|
165
|
$
|
63
|
||||||||||||
Cash and cash equivalents at end of period
|
$
|
152
|
$
|
—
|
$
|
13
|
$
|
3
|
$
|
86
|
$
|
50
|
• |
Exploration, mining, and beneficiation of mineral sands deposits;
|
• |
Production of titanium feedstock and its co-products (including chloride slag, slag fines, rutile, synthetic rutile and leucoxene), pig iron, and zircon;
|
• |
Production and marketing of TiO
2
;
and
|
• |
Electrolytic manganese dioxide manufacturing and marketing, which is primarily focused on advanced battery materials and specialty boron products.
|
• |
Dry mining of trona ore underground at our Westvaco facility;
|
• |
Secondary recovery of trona from previously dry mined areas underground at our Westvaco and Granger facilities through solution mining;
|
• |
Refining of raw trona ore into soda ash and specialty sodium alkali products; and
|
• |
Marketing, sale and distribution of alkali products.
|
Three Months
Ended March 31,
|
||||||||||||
2017
|
2016
|
Variance
|
||||||||||
(Millions of U.S. dollars)
|
||||||||||||
Net sales
|
$
|
569
|
$
|
476
|
$
|
93
|
||||||
Cost of goods sold
|
479
|
455
|
24
|
|||||||||
Gross profit
|
90
|
21
|
69
|
|||||||||
Selling, general and administrative expenses
|
(74
|
)
|
(50
|
)
|
(24
|
)
|
||||||
Restructuring expense
|
—
|
(2
|
)
|
2
|
||||||||
Income (loss) from operations
|
16
|
(31
|
)
|
47
|
||||||||
Interest and debt expense, net
|
(46
|
)
|
(46
|
)
|
—
|
|||||||
Gain on extinguishment of debt
|
—
|
4
|
(4
|
)
|
||||||||
Other income (expense), net
|
(6
|
)
|
(9
|
)
|
3
|
|||||||
Loss before income taxes
|
(36
|
)
|
(82
|
)
|
46
|
|||||||
Income tax provision
|
(2
|
)
|
(12
|
)
|
10
|
|||||||
Net loss
|
$
|
(38
|
)
|
$
|
(94
|
)
|
$
|
56
|
Three Months
Ended March 31,
|
||||||||||||
|
2017
|
2016
|
Variance
|
|||||||||
(Millions of U.S. dollars)
|
||||||||||||
TiO
2
segment
|
$
|
378
|
$
|
285
|
$
|
93
|
||||||
Alkali segment
|
191
|
191
|
—
|
|||||||||
Net Sales
|
$
|
569
|
$
|
476
|
$
|
93
|
Three Months
Ended March 31,
|
||||||||||||
2017
|
2016
|
Variance
|
||||||||||
(Millions of U.S. dollars)
|
||||||||||||
TiO
2
segment
|
$
|
32
|
$
|
(36
|
)
|
$
|
68
|
|||||
Alkali segment
|
19
|
21
|
(2
|
)
|
||||||||
Corporate
|
(35
|
)
|
(16
|
)
|
(19
|
)
|
||||||
Income (loss) from operations
|
16
|
(31
|
)
|
$
|
47
|
|||||||
Interest and debt expense, net
|
(46
|
)
|
(46
|
)
|
||||||||
Gain on extinguishment of debt
|
—
|
4
|
||||||||||
Other expense, net
|
(6
|
)
|
(9
|
)
|
||||||||
Loss before income taxes
|
(36
|
)
|
(82
|
)
|
||||||||
Income tax provision
|
(2
|
)
|
(12
|
)
|
||||||||
Net loss
|
$
|
(38
|
)
|
$
|
(94
|
)
|
March 31,
2017
|
December 31,
2016
|
|||||||
Cash and cash equivalents
|
$
|
265
|
$
|
248
|
||||
Borrowings available under the UBS Revolver
|
198
|
190
|
||||||
Borrowings available under the ABSA Revolver
|
97
|
95
|
||||||
Total
|
$
|
560
|
$
|
533
|
Q1 2017 | ||||
Dividend per share
|
$
|
0.045
|
||
Total dividend
|
$
|
6
|
||
Record date (close of business)
|
March 6
|
Original
Principal
|
Annual
Interest Rate
|
Maturity
Date
|
March 31,
2017
|
December 31,
2016
|
|||||||||||||
Term Loan, net of unamortized discount
(1)
|
$
|
1,500
|
Variable
|
3/19/2020
|
$
|
1,437
|
$
|
1,441
|
|||||||||
Senior Notes due 2020
|
$
|
900
|
6.375
|
%
|
8/15/2020
|
896
|
896
|
||||||||||
Senior Notes due 2022
|
$
|
600
|
7.50
|
%
|
3/15/2022
|
584
|
584
|
||||||||||
Lease financing
|
19
|
19
|
|||||||||||||||
Total borrowings
|
2,936
|
2,940
|
|||||||||||||||
Less: Long-term debt due within one year
|
(16
|
)
|
(16
|
)
|
|||||||||||||
Debt issuance costs
|
(33
|
)
|
(36
|
)
|
|||||||||||||
Long-term debt
|
$
|
2,887
|
$
|
2,888
|
(1)
|
Average effective interest rate of 5.0% and 4.9% during the three months ended March 31, 2017 and 2016, respectively.
|
Three Months Ended March 31,
|
||||||||
2017
|
2016
|
|||||||
(Millions of U.S. dollars)
|
||||||||
Net cash provided by operating activities
|
$
|
60
|
$
|
1
|
||||
Net cash used in investing activities
|
(32
|
)
|
(32
|
)
|
||||
Net cash used in financing activities
|
(12
|
)
|
(49
|
)
|
||||
Effect of exchange rate changes on cash
|
1
|
3
|
||||||
Net increase (decrease) in cash and cash equivalents
|
$
|
17
|
$
|
(77
|
)
|
Contractual Obligation
Payments Due by Year (3)(4)
|
||||||||||||||||||||
Total
|
Less than
1 year
|
1-3
years
|
3-5
years
|
More than
5 years
|
||||||||||||||||
(Millions of U.S. dollars)
|
||||||||||||||||||||
Long-term debt and lease financing (including interest)
(1)
|
$
|
3,715
|
334
|
1,761
|
1,010
|
610
|
||||||||||||||
Purchase obligations
(2)
|
444
|
173
|
101
|
52
|
118
|
|||||||||||||||
Operating leases
|
181
|
43
|
40
|
37
|
61
|
|||||||||||||||
Asset retirement obligations
|
79
|
5
|
3
|
2
|
69
|
|||||||||||||||
Total
|
$
|
4,419
|
555
|
1,905
|
1,101
|
858
|
(1) |
We calculated the Term Loan interest at a base rate of 1% plus a margin of 3.5%. See Note 11 of notes to our unaudited condensed consolidated financial statements.
|
(2) |
Includes obligations to purchase requirements of process chemicals, supplies, utilities, services. We have various purchase commitments for materials, supplies, and services entered into in the ordinary course of business. Included in the purchase commitments table above are contracts which require minimum volume purchases that extend beyond one year or are renewable annually and have been renewed for 2017. Certain contracts allow for changes in minimum required purchase volumes in the event of a temporary or permanent shutdown of a facility. We believe that all of our purchase obligations will be utilized in our normal operations.
|
(3) |
The table above excludes contingent obligations, as well as any possible payments for uncertain tax positions given the inability to estimate the possible amounts and timing of any such payments.
|
(4) |
The table above excludes commitments pertaining to our pension and other postretirement obligations.
|
• |
Reflect our ongoing business in a manner that allows for meaningful period-to-period comparison and analysis of trends in our business, as they exclude income and expense that are not reflective of ongoing operating results;
|
• |
Provide useful information in understanding and evaluating our operating results and comparing financial results across periods;
|
• |
Provide a normalized view of our operating performance by excluding items that are either noncash, infrequently occurring, or non-recurring in nature;
|
• |
Assist investors in assessing our compliance with financial covenants under our debt instruments.
|
Three Months
Ended March 31,
|
||||||||
2017
|
2016
|
|||||||
Net loss
|
$
|
(38
|
)
|
$
|
(94
|
)
|
||
Interest and debt expense, net
|
46
|
46
|
||||||
Interest income
|
(1
|
)
|
(1
|
)
|
||||
Income tax provision
|
2
|
12
|
||||||
Depreciation, depletion and amortization expense
|
61
|
55
|
||||||
EBITDA
|
70
|
18
|
||||||
Share-based compensation
(a)
|
14
|
5
|
||||||
Restructuring expense
(b)
|
—
|
2
|
||||||
Foreign currency remeasurement loss
(c)
|
3
|
14
|
||||||
Gain on extinguishment of debt
(d)
|
—
|
(4
|
)
|
|||||
Transaction costs
(e)
|
11
|
—
|
||||||
Other items
(f)
|
3
|
5
|
||||||
Adjusted EBITDA
(g)
|
$
|
101
|
$
|
40
|
(a) |
Represents non-cash share-based compensation. See Note 17 of Notes to unaudited condensed consolidated financial statements.
|
(b) |
Represents severance and other costs associated with the shutdown of our sodium chlorate plant, and other global restructuring efforts which was recorded in “Restructuring expense” in the unaudited Condensed Consolidated Statements of Operations. See Note 2 of Notes to unaudited condensed consolidated financial statements.
|
(c) |
Represents foreign currency remeasurement which is included in “Other income (expense), net” in the unaudited Condensed Consolidated Statements of Operations.
|
(d) |
During 2016, we recognized $4 million of gain associated with the repurchase of $20 million face value of our Senior Notes due 2020 and Senior Notes 2022, which was recorded in “Gain on extinguishment of debt” in the unaudited Condensed Consolidated Statements of Operations.
|
(e) |
Represents transaction costs associated with the Cristal Transaction which were recorded in “Selling, general and administrative expenses” in the unaudited Condensed Consolidated Statements of Operations.
|
(f) |
Includes noncash pension and postretirement costs, severance expense and other items included in “Selling, general and administrative expenses” and “Cost of goods sold” in the unaudited Condensed Consolidated Statements of Operations.
|
(g) |
No income tax impact given full valuation allowance except for South Africa related restructuring costs. See Notes 2 and 3 of notes to unaudited condensed consolidated financial statements.
|
Three Months Ended March 31,
|
||||||||
2017
|
2016
|
|||||||
TiO
2
segment
|
$
|
32
|
$
|
(36
|
)
|
|||
Alkali segment
|
19
|
21
|
||||||
Corporate
|
(35
|
)
|
(16
|
)
|
||||
Income (loss) from operations (U.S. GAAP)
|
16
|
(31
|
)
|
|||||
TiO
2
segment
|
44
|
40
|
||||||
Alkali segment
|
16
|
14
|
||||||
Corporate
|
1
|
1
|
||||||
Depreciation, depletion and amortization expense
|
61
|
55
|
||||||
TiO
2
segment
|
9
|
18
|
||||||
Alkali segment
|
3
|
1
|
||||||
Corporate
|
12
|
(3
|
)
|
|||||
Other
|
24
|
16
|
||||||
TiO
2
segment
|
85
|
22
|
||||||
Alkali segment
|
38
|
36
|
||||||
Corporate
|
(22
|
)
|
(18
|
)
|
||||
Adjusted EBITDA (non-U.S. GAAP)
|
$
|
101
|
$
|
40
|
Exhibit No
.
|
||
Eighth Supplemental Indenture, dated as of March 22, 2017, to the Indenture, dated August 20, 2012 among Tronox Finance LLC, as Issuer, Tronox Limited as Parent, the guarantors named therein and Wilmington Trust, National Association, as trustee (filed herewith).
|
||
Fourth Supplemental Indenture, dated as of March 22, 2017, to the Indenture, dated March 19, 2015 among Tronox Finance LLC, as Issuer, Tronox Limited as Parent, the guarantors named therein and Wilmington Trust, National Association, as trustee (filed herewith).
|
||
General form of executive officer Time-Based Restricted Share Unit Agreement (filed herewith).
|
||
General form of executive officer Performance-Based Restricted Share Unit Agreement (filed herewith).
|
||
General form of Director Grant Restricted Share Unit Agreement (filed herewith).
|
||
General form of Cristal Transaction Integration Synergy Savings Performance-Based Restricted Share Unit Agreement (filed herewith).
|
||
Rule 13a-14(a) Certification of Thomas Casey.
|
||
Rule 13a-14(a) Certification of Timothy Carlson.
|
||
Section 1350 Certification for Thomas Casey.
|
||
Section 1350 Certification for Timothy Carlson.
|
||
Mine Safety Disclosures
|
||
101.INS
|
XBRL Instance Document
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
TRONOX LIMITED
|
||
(Registrant)
|
||
By:
|
/s/ Timothy Carlson
|
|
Name:
|
Timothy Carlson
|
|
Title:
|
Senior Vice President and Chief Financial Officer
|
TRONOX FINANCE LLC
|
|
||
|
|
|
|
|
By:
|
/s/ Steven A. Kaye
|
|
|
|
Name: Steven A. Kaye
|
|
|
|
Title: Manager
|
U.S. GUARANTORS:
|
|||
TRONOX INCORPORATED
|
|||
TRONOX LLC
|
|||
TRONOX US HOLDINGS INC.
|
|||
TRONOX PIGMENTS LLC
|
|||
By:
|
/s/ Steven A. Kaye
|
||
Name: Steven A. Kaye
|
|||
Title: Vice President
|
|||
TRONOX ALKALI CORPORATION
|
|||
TRONOX SPECIALTY ALKALI LLC
|
|||
TRONOX ALKALI WYOMING CORPORATION
|
|||
By:
|
/s/ Edward T. Flynn
|
||
Name: Edward T. Flynn
|
|||
Title: President
|
/s/ Steven A. Kaye
|
By executing this agreement the attorney states that the attorney has received no notice of revocation of the power of attorney /s/ Richard L. Muglia | ||
Signature of witness
|
|||
/s/ Steven A. Kaye
|
|||
Name of witness (block letters)
|
U.K. GUARANTORS
:
|
|||
|
TRONOX INTERNATIONAL FINANCE LLP
|
||
|
TRONOX UK HOLDINGS LIMITED
|
||
|
TRONOX UK LIMITED
|
||
|
By:
|
/s/ Steven A. Kaye
|
|
|
|
Name: Steven A. Kaye
|
|
|
|
Title: Director
|
BAHAMAS GUARANTOR:
|
|||
|
TRONOX PIGMENTS LTD
|
||
|
|
|
|
|
By:
|
/s/ Richard L. Muglia
|
|
|
Name: Richard L. Muglia
|
||
|
Title: Director
|
DUTCH GUARANTORS:
|
|
||
|
TRONOX WORLDWIDE PTY LIMITED,
|
|
|
|
ACTING AS MANAGING PARTNER OF
TRONOX HOLDINGS EUROPE C.V.
|
|
|
|
|
|
|
|
By:
|
/s/ Steven A. Kaye
|
|
|
|
Name: Steven A. Kaye
|
|
|
|
Title: Director
|
|
|
|
|
|
|
TRONOX HOLDINGS COÖPERATIEF U.A.
|
|
|
|
By:
|
/s/ Steven A. Kaye
|
|
|
|
Name: Steven A. Kaye
|
|
|
|
Title: Director
|
|
|
|
|
|
|
By:
|
/s/ Anthony M. Orrell
|
|
|
|
Name: Anthony M. Orrell
|
|
|
|
Title: Director
|
SWISS GUARANTORS:
|
|||
|
|
|
|
|
TRONOX INTERNATIONAL HOLDINGS GMBH
|
||
|
TRONOX FINANCE GMBH
|
||
|
By:
|
/s/ Steven Kaye
|
|
|
Name:
|
Steven Kaye
|
|
|
Title:
|
managing director
|
|
|
By:
|
/s/ Timothy Carlson
|
|
|
Name:
|
Timothy Carlson
|
|
|
Title:
|
managing director
|
WILMINGTON TRUST, NATIONAL ASSOCIATION, as Trustee
|
|||
|
|
|
|
|
By:
|
/s/ Jane Schweiger
|
|
|
Name: Jane Schweiger
|
||
|
Title: Vice President
|
TRONOX FINANCE LLC
|
|||
By:
|
/s/ Steven A. Kaye
|
||
Name: Steven A. Kaye
|
|||
Title: Manager
|
U.S. GUARANTORS:
|
|||
TRONOX INCORPORATED
|
|||
TRONOX LLC
|
|||
TRONOX US HOLDINGS INC.
|
|||
TRONOX PIGMENTS LLC
|
|||
B
y:
|
/s/ Steven A. Kaye
|
||
Name: Steven A. Kaye
|
|||
Title: Vice President
|
|||
TRONOX ALKALI CORPORATION
|
|||
TRONOX SPECIALTY ALKALI LLC
|
|||
TRONOX ALKALI WYOMING CORPORATION
|
|||
B
y:
|
/s/ Edward T. Flynn
|
||
Name: Edward T. Flynn
|
|||
Title: President
|
/s/ Steven A. Kaye
|
By executing this agreement the attorney states that the attorney has received no notice of revocation of the power of attorney /s/ Richard L. Muglia | ||
Signature of witness
|
|||
/s/ Steven A. Kaye
|
|||
Name of witness (block letters)
|
U.K. GUARANTORS:
|
|||
TRONOX INTERNATIONAL FINANCE LLP
|
|||
TRONOX UK HOLDINGS LIMITED
|
|||
TRONOX UK LIMITED
|
|||
By:
|
/s/ Steven A. Kaye
|
||
Name: Steven A. Kaye
|
|||
Title: Director
|
BAHAMAS GUARANTOR:
|
|||
TRONOX PIGMENTS LTD
|
|||
By:
|
/s/ Richard L. Muglia
|
||
Name: Richard L. Muglia
|
|||
Title: Director
|
DUTCH GUARANTORS:
|
|||
TRONOX WORLDWIDE PTY LIMITED,
|
|||
ACTING AS MANAGING PARTNER OF
|
|||
TRONOX HOLDINGS EUROPE C.V.
|
|||
By:
|
/s/ Steven A. Kaye
|
||
Name: Steven A. Kaye
|
|||
Title: Director
|
|||
TRONOX HOLDINGS COÖPERATIEF U.A.
|
|||
By:
|
/s/ Steven A. Kaye
|
||
Name: Steven A. Kaye
|
|||
Title: Director
|
|||
By:
|
/s/ Anthony M. Orrell
|
||
Name: Anthony M. Orrell
|
|||
Title: Director
|
SWISS GUARANTORS:
|
|||
TRONOX INTERNATIONAL HOLDINGS GMBH
|
|||
TRONOX FINANCE GMBH
|
|||
By:
|
/s/ Steven Kaye
|
||
Name:
|
Steven Kaye
|
||
Title:
|
managing director
|
||
By:
|
/s/ Timothy Carlson
|
||
Name:
|
Timothy Carlson
|
||
Title:
|
managing director
|
WILMINGTON TRUST, NATIONAL
|
|||
ASSOCIATION, as Trustee
|
|||
By:
|
/s/ Jane Schweiger
|
||
Name: Jane Schweiger
|
|||
Title: Vice President
|
TRONOX LIMITED
|
||||
By:
|
||||
Name:
|
||||
Title:
|
PARTICIPANT
|
||
Name:
|
Social Security Number:
|
Three-Year Total Shareholder Return Ranking
|
Payout Percentage
|
|
65th percentile or higher (Maximum)
|
200%
|
|
50th percentile or higher, but lower than 65th percentile (Target)
|
100%
|
|
35th percentile or higher, but lower than 50th percentile (Threshold)
|
25%
|
|
Below 35th percentile
|
0%
|
TRONOX LIMITED
|
||||
By:
|
||||
Name:
|
||||
Title:
|
||||
PARTICIPANT
|
||||
Name:
|
TRONOX LIMITED
|
||||
|
||||
By:
|
||||
Name:
|
||||
Title:
|
||||
PARTICIPANT
|
||||
Name:
|
Two-Year Cumulative Synergy Savings from the Cristal Transaction
|
Cristal Integration
Payout Percentage
|
|||
$225 million (Target)
|
100
|
%
|
||
$180 million (Threshold)
|
50
|
%
|
||
Below $180 million
|
0
|
%
|
TRONOX LIMITED
|
||||
By:
|
||||
Name:
|
||||
Title:
|
PARTICIPANT
|
||||
Name:
|
||||
Social Security Number:
|
/s/ Thomas Casey
|
|
Thomas Casey
|
|
Chairman and Chief Executive Officer
|
/s/ Timothy Carlson
|
|
Timothy Carlson
|
|
Senior Vice President and Chief Financial Officer
|
/s/ Thomas Casey
|
|
Thomas Casey
|
|
Chairman and Chief Executive Officer
|
/s/ Timothy Carlson
|
|
Timothy Carlson
|
|
Senior Vice President and Chief Financial Officer
|
(A)
|
(B)
|
(C)
|
(D)
|
(E)
|
(F)
|
(G)
|
(H)
|
(I)
|
(J)
|
(K)
|
(L)
|
|||||||||||||||||||||||||||||||||
Mine or Operating Name/
MSHA Identification Number
|
Section
104
S&S
Citations
(#)
|
Section
104(b)
Orders
(#)
|
Section
104(d)
Citations
and
Orders
(#)
|
Section
110(b)(2)
Violations
(#)
|
Section
107(a)
Orders
(#)
|
Total Dollar
Value of
MSHA
Assessments
Proposed
($)
|
Total
Number
of
Mining
Related
Fatalities
(#)
|
Received Notice of Pattern of Violations Under
Section
104(e)
(yes/no)
|
Received Notice of Potential to Have
Pattern
Under
Section
104(e)
(yes/no)
|
Legal
Actions
Pending
as of Last
Day of
Period
(#)
|
Legal
Actions
Initiated
During
Period
(#)
|
Legal
Actions
Resolved
During
Period
(#)
|
||||||||||||||||||||||||||||||||
Tronox-Alkali at Westvaco
MSHA I.D. No.:
48-00152
|
6
|
0
|
0
|
0
|
0
|
$
|
11,204
|
0
|
No
|
No
|
0
|
0
|
0
|
(A) |
The total number of violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a coal or other mine safety and health hazard under section 104 of the Mine Act for which the operator received a citation from MSHA.
|
(B) |
The total number of orders issued under section 104(b) of the Mine Act.
|
(C) |
The total number of citations and orders for unwarrantable failure of the operator to comply with mandatory health or safety standards under section 104(d) of the Mine Act.
|
(D) |
The total number of flagrant violations under section 110(b)(2) of the Mine Act.
|
(E) |
The total number of imminent danger orders issued under section 107(a) of the Mine Act.
|
(F) |
The total dollar value of proposed assessments from the MSHA under the Mine Act. Only includes assessments proposed on citations issued in the first quarter.
|
(G) |
The total number of mining related fatalities.
|
(H) |
During the quarter ending March 31, 2017, the mine did not receive Notice of Pattern of Violations under Section 104(e)
|
(I) |
During the quarter ending March 31, 2017, the mine did not receive Notice of a Potential to have a Pattern of Violations Under Section 104(e)
|
(J) |
Includes all legal actions before the Federal Mine Safety and Review Commission, together with the Administrative Law Judges thereof, for our operations.
|
(K) |
The total number of legal actions was initiated by us to contest citations, orders or proposed assessments issued by the federal Mine Safety and Health Administration during the first quarter 2017.
|
(L) |
Previously initiated legal action to contest citations, orders or proposed assessments issued by the federal Mine Safety and Health Administration, which if successful, could result in the reduction or dismissal of those citations, orders or assessments, resolved during the period.
|