Delaware
|
20-2868245
|
|
(State
or Other Jurisdiction of
Incorporation
or Organization)
|
(I.R.S.
Employer
Identification
Number)
|
Page
|
|||||
Part
I
|
FINANCIAL
INFORMATION
|
||||
|
Item
1.
|
Financial
Statements (Unaudited)
|
|||
Condensed
Consolidated and Combined Statement of Operations for the Three Months
Ended March 31, 2006 and 2005
|
1
|
||||
Condensed
Consolidated Balance Sheet at March 31, 2006 and December 31,
2005
|
2
|
||||
Condensed
Consolidated and Combined Statement of Cash Flows for the Three Months
Ended March 31, 2006 and 2005
|
3
|
||||
Notes
to the Condensed Consolidated and Combined Financial
Statements
|
4
|
||||
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of Operations
|
32
|
|||
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
39
|
||
|
Item
4.
|
Controls
and Procedures
|
39
|
||
Forward-Looking
Statements
|
40
|
||||
Part
II
|
OTHER
INFORMATION
|
||||
Item
1.
|
Legal
Proceedings
|
40
|
|||
Item
6.
|
Exhibits
|
42
|
|||
SIGNATURES
|
43
|
Item
1.
|
Financial
Statements
|
Three
Months Ended March 31,
|
|||||||
2006
|
2005
|
||||||
(Millions
of dollars)
|
|||||||
Net
sales
|
$
|
336.2
|
$
|
334.2
|
|||
Cost
of goods sold
|
276.0
|
272.3
|
|||||
Gross
margin
|
60.2
|
61.9
|
|||||
Selling,
general and administrative expenses
|
35.7
|
28.2
|
|||||
Provision
for environmental remediation and restoration, net of
reimbursements
|
(20.5
|
)
|
10.9
|
||||
45.0
|
22.8
|
||||||
Interest
and debt expense - third parties
|
12.0
|
—
|
|||||
Other
income (expense)
|
4.4
|
(5.0
|
)
|
||||
Income
from Continuing Operations before Income Taxes
|
37.4
|
17.8
|
|||||
Income
Tax Provision
|
(13.8
|
)
|
(5.4
|
)
|
|||
Income
from Continuing Operations
|
23.6
|
12.4
|
|||||
Loss
from Discontinued Operations, net of income tax benefit of $1.8
and $4.5,
respectively
|
(3.0
|
)
|
(8.4
|
)
|
|||
Net
Income
|
$
|
20.6
|
$
|
4.0
|
|||
Income
(loss) per common share:
|
|||||||
Basic
-
|
|||||||
Continuing
operations
|
$
|
0.58
|
$
|
0.54
|
|||
Discontinued
operations
|
(0.07
|
)
|
(0.37
|
)
|
|||
Net
income
|
$
|
0.51
|
$
|
0.17
|
|||
Diluted
-
|
|||||||
Continuing
operations
|
$
|
0.58
|
$
|
0.54
|
|||
Discontinued
operations
|
(0.08
|
)
|
(0.37
|
)
|
|||
Net
income
|
$
|
0.50
|
$
|
0.17
|
|||
Dividends
Declared per Common Share
|
$
|
0.05
|
$
|
—
|
|||
Weighted
average shares outstanding (in thousands):
|
|||||||
Basic
|
40,369
|
22,889
|
|||||
Diluted
|
40,917
|
22,889
|
March
31,
|
December
31,
|
||||||
2006
|
2005
|
||||||
(Millions
of dollars)
|
|||||||
ASSETS
|
|||||||
Current
Assets
|
|||||||
Cash
and cash equivalents
|
$
|
57.3
|
$
|
69.0
|
|||
Accounts
receivable, net of allowance for doubtful accounts of $11.4 in
2006 and
$11.3 in 2005
|
324.7
|
331.6
|
|||||
Inventories
|
347.9
|
312.3
|
|||||
Prepaid
and other assets
|
19.6
|
28.5
|
|||||
Income
tax receivable
|
0.8
|
2.4
|
|||||
Deferred
income taxes
|
36.9
|
35.6
|
|||||
Total
Current Assets
|
787.2
|
779.4
|
|||||
Property,
Plant and Equipment — Net
|
846.8
|
839.7
|
|||||
Long-Term
Receivables, Investments and Other Assets
|
194.4
|
78.8
|
|||||
Goodwill
and Other Intangible Assets
|
61.2
|
60.4
|
|||||
Total
Assets
|
$
|
1,889.6
|
$
|
1,758.3
|
|||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||
Current
Liabilities
|
|||||||
Accounts
payable
|
$
|
184.5
|
$
|
195.3
|
|||
Accrued
liabilities
|
171.7
|
168.9
|
|||||
Long-term
debt due within one year
|
2.0
|
2.0
|
|||||
Income
taxes payable
|
11.7
|
8.8
|
|||||
Total
Current Liabilities
|
369.9
|
375.0
|
|||||
Noncurrent
Liabilities
|
|||||||
Deferred
income taxes
|
89.9
|
79.0
|
|||||
Environmental
remediation and/or restoration
|
138.8
|
145.9
|
|||||
Long-term
debt
|
547.5
|
548.0
|
|||||
Other
|
228.1
|
121.4
|
|||||
Total
Noncurrent Liabilities
|
1,004.3
|
894.3
|
|||||
Commitments
and Contingencies (Notes 11 and 12)
|
|||||||
Stockholders’
Equity
|
|||||||
Class
A common stock, par value $0.01 - 100,000,000 shares authorized,
18,429,279 and 17,886,640 shares issued and outstanding at March
31, 2006
and December 31, 2005, respectively
|
0.2
|
0.2
|
|||||
Class
B common stock, par value $0.01 - 100,000,000 shares authorized,
22,889,431 shares issued and outstanding at March 31, 2006 and
December
31, 2005
|
0.2
|
0.2
|
|||||
Capital
in excess of par value
|
460.7
|
461.5
|
|||||
Retained
earnings (accumulated deficit)
|
14.3
|
(2.9
|
)
|
||||
Deferred
compensation
|
—
|
(5.4
|
)
|
||||
Accumulated
other comprehensive income
|
40.0
|
35.4
|
|||||
Total
Stockholders’ Equity
|
515.4
|
489.0
|
|||||
Total
Liabilities and Stockholders’ Equity
|
$
|
1,889.6
|
$
|
1,758.3
|
Three
Months Ended March 31,
|
|||||||
2006
|
2005
|
||||||
(Millions
of dollars)
|
|||||||
Cash
Flows from Operating Activities
|
|||||||
Net
income
|
$
|
20.6
|
$
|
4.0
|
|||
Adjustments
to reconcile net income to net cash provided by operating activities—
|
|||||||
Depreciation
and amortization
|
24.5
|
26.8
|
|||||
Deferred
income taxes
|
7.1
|
(9.6
|
)
|
||||
Provision
for environmental remediation and restoration, net of
reimbursements
|
(20.2
|
)
|
21.6
|
||||
Allocations
from Kerr-McGee
|
—
|
11.9
|
|||||
Other
noncash items affecting net income
|
15.5
|
4.9
|
|||||
Changes
in assets and liabilities
|
(33.1
|
)
|
28.6
|
||||
Net
cash provided by operating activities
|
14.4
|
88.2
|
|||||
Cash
Flows from Investing Activities
|
|||||||
Capital
expenditures
|
(21.8
|
)
|
(11.8
|
)
|
|||
Other
investing activities
|
0.1
|
0.7
|
|||||
Net
cash used in investing activities
|
(21.7
|
)
|
(11.1
|
)
|
|||
Cash
Flows from Financing Activities
|
|||||||
Repayment
of debt
|
(0.5
|
)
|
—
|
||||
Costs
of obtaining financing
|
(1.2
|
)
|
—
|
||||
Net
transfers with affiliates
|
—
|
(31.9
|
)
|
||||
Net
cash used in financing activities
|
(1.7
|
)
|
(31.9
|
)
|
|||
Effects
of Exchange Rate Changes on Cash and Cash
Equivalents
|
(2.7
|
)
|
0.7
|
||||
Net
Increase (Decrease) in Cash and Cash Equivalents
|
(11.7
|
)
|
45.9
|
||||
Cash
and Cash Equivalents at Beginning of Period
|
69.0
|
23.8
|
|||||
Cash
and Cash Equivalents at End of Period
|
$
|
57.3
|
$
|
69.7
|
Three
Months Ended March 31, 2005
|
||||
(Millions
of dollars, except per share)
|
||||
Net
income as reported
|
$
|
4.0
|
||
Add:
stock-based employee compensation expense included in reported net
income,
net of taxes
|
0.6
|
|||
Deduct:
stock-based employee compensation expense determined using a fair-value
method, net of taxes
|
(1.0
|
)
|
||
Pro
forma net income
|
$
|
3.6
|
||
Basic
and diluted net income per common share:
|
||||
As
reported
|
$
|
0.17
|
||
Pro
forma
|
0.16
|
Three
Months Ended March 31,
|
|||||||
2006
|
2005
|
||||||
(Millions
of dollars)
|
|||||||
Net
income
|
$
|
20.6
|
$
|
4.0
|
|||
After
tax changes in:
|
|||||||
Deferred
gain (loss) on cash flow hedges
|
(1.3
|
)
|
4.5
|
||||
Foreign
currency translation adjustments
|
6.0
|
(13.9
|
)
|
||||
Reclassification
of realized loss on cash flow hedges to net income
|
1.0
|
1.4
|
|||||
Minimum
pension liability adjustments
|
(1.1
|
)
|
0.2
|
||||
Comprehensive
income (loss)
|
$
|
25.2
|
$
|
(3.8
|
)
|
March
31,
|
December
31,
|
||||||
2006
|
2005
|
||||||
(Millions
of dollars)
|
|||||||
Raw
materials
|
$
|
75.8
|
$
|
77.1
|
|||
Work-in-progress
|
16.4
|
15.2
|
|||||
Finished
goods
|
186.1
|
154.7
|
|||||
Materials
and supplies
|
69.6
|
65.3
|
|||||
Total
|
$
|
347.9
|
$
|
312.3
|
March
31,
|
December
31,
|
||||||
2006
|
2005
|
||||||
(Millions
of dollars)
|
|||||||
Receivable
from the U.S. Department of Energy (Note 12)
|
$
|
15.0
|
$
|
12.5
|
|||
Investments
in equity method investees
|
17.6
|
17.5
|
|||||
Receivables
from insurers (Note 12)
|
23.5
|
23.5
|
|||||
Prepaid
pension cost
|
120.6
|
11.7
|
|||||
Other
|
17.7
|
13.6
|
|||||
Total
|
$
|
194.4
|
$
|
78.8
|
March
31,
|
December
31,
|
||||||
2006
|
2005
|
||||||
(Millions
of dollars)
|
|||||||
Reserve
for income taxes payable
|
$
|
37.9
|
$
|
37.2
|
|||
Asset
retirement obligations
|
27.4
|
27.7
|
|||||
Reserve
for workers’ compensation and general liability claims
|
19.2
|
18.5
|
|||||
Pension
obligations
|
121.6
|
12.6
|
|||||
Other
|
22.0
|
25.4
|
|||||
Total
|
$
|
228.1
|
$
|
121.4
|
Personnel
Costs
|
Dismantlement
and
Closure
|
Contract
Termination
|
Total(1)(2)
|
||||||||||
(Millions
of dollars)
|
|||||||||||||
Beginning
balance
|
$
|
3.1
|
$
|
4.9
|
$
|
1.0
|
$
|
9.0
|
|||||
Payments
|
(0.1
|
)
|
(0.4
|
)
|
(0.1
|
)
|
(0.6
|
)
|
|||||
Adjustments
|
0.1
|
—
|
(0.2
|
)
|
(0.1
|
)
|
|||||||
Ending
balance
|
$
|
3.1
|
$
|
4.5
|
$
|
0.7
|
$
|
8.3
|
(1)
|
Amounts
exclude asset retirement obligations and pension
reserves.
|
(2)
|
Amounts
include obligations of the discontinued forest products operations
that
have been retained by the company.
|
Three
Months Ended March 31,
|
|||||||
2006
|
2005
|
||||||
(Millions
of dollars)
|
|||||||
Net
foreign currency transaction gain
|
$
|
4.3
|
$
|
1.5
|
|||
Net
interest expense on borrowings with affiliates and interest
income
|
0.7
|
(3.1
|
)
|
||||
Loss
on accounts receivables sales
|
—
|
(2.8
|
)
|
||||
Other
expense
|
(0.6
|
)
|
(0.6
|
)
|
|||
Total
|
$
|
4.4
|
$
|
(5.0
|
)
|
Three
Months Ended March 31,
|
|||||||
2006
|
2005
|
||||||
U.S.
statutory tax rate - provision
|
35.0
|
%
|
35.0
|
%
|
|||
Increases
(decreases) resulting from -
|
|||||||
Taxation
of foreign operations
|
2.0
|
(6.2
|
)
|
||||
State
income taxes
|
1.0
|
1.0
|
|||||
Interest
on foreign tax contingency
|
0.6
|
—
|
|||||
Other
- net
|
(1.7
|
)
|
0.5
|
||||
Total
|
36.9
|
%
|
30.3
|
%
|
Vesting
|
Cash-
or
|
||||
Contractual
|
Period
|
Vesting
|
Stock-
|
Vesting
and Other
|
|
Life
(Years)
|
(Years)
|
Term
|
Settled
|
Conditions
|
|
Stock
options
|
10
|
3
|
Graded
(1)
|
Stock
|
Employee
service
|
Restricted
stock
|
Not
applicable
|
3
|
Cliff
(2)
|
Stock
|
Employee
service
|
|
|
(1) |
An
employee vests in one-third of the award at the end of each year
of
service. Employees terminating their employment due to retirement
fully
vest in their award upon
retirement.
|
(2) |
An
employee vests in the entire award at the end of the three-year service
period. Employees terminating their employment due to retirement
fully
vest in their award upon retirement.
|
March
30, 2006
|
|
Risk-free
interest rate
|
4.6%
|
Expected
dividend yield
|
1.5%
|
Expected
volatility
|
34.5%
|
Expected
term (years)
|
6.3
|
Weighted-average
estimated fair value of options converted
|
$9.61
|
Stock
fair value on the date of modification
|
$17.47
|
Estimated
fair value of the options as a % of the stock fair value on the date
of
modification
|
55.0%
|
Three
Months Ended March 31,
|
|||||||
2006
|
2005
|
||||||
(Millions
of dollars)
|
|||||||
Expense
resulting from awards issued originally by Tronox:
|
|||||||
Stock
options
|
$
|
0.1
|
$
|
—
|
|||
Restricted
stock
|
0.4
|
—
|
|||||
Expense
resulting from awards issued originally by
Kerr-McGee:
|
|||||||
Stock
options
|
1.2
|
—
|
|||||
Restricted
stock
|
2.3
|
0.9
|
|||||
Total
stock-based compensation expense, pretax
|
4.0
|
0.9
|
|||||
Income
tax benefit
|
(1.5
|
)
|
(0.3
|
)
|
|||
Total
stock-based compensation expense, net of taxes
|
$
|
2.5
|
$
|
0.6
|
Unamortized
Cost (Pretax)
|
Remaining
period
|
||||||
(Millions
of dollars)
|
(Years)
|
||||||
Stock
options issued by Tronox Incorporated
|
$
|
1.4
|
2.7
|
||||
Restricted
stock issued by Tronox Incorporated
|
3.7
|
2.7
|
|||||
Stock
options converted from Kerr-McGee awards
|
2.6
|
1.7
|
|||||
Restricted
stock converted from Kerr-McGee awards
|
3.7
|
1.6
|
|||||
$
|
11.4
|
Intrinsic
|
|||||||||||||
Number
of
|
Contractual
|
Value
|
|||||||||||
Shares
|
Price (1)
|
Life (years) (1)
|
(Millions) (2)
|
||||||||||
Options
outstanding at December 31, 2005
|
345,700
|
$
|
14.00
|
||||||||||
Options
converted from Kerr-McGee awards
|
920,466
|
9.62
|
|||||||||||
Options
forfeited
|
(350
|
)
|
$
|
14.00
|
|||||||||
Options
outstanding at March 31, 2006
|
1,265,816
|
$
|
10.81
|
8.8
|
$
|
8.1
|
|||||||
Options
exercisable at March 31, 2006
|
—
|
(1) |
Represents
weighted average exercise price and weighted average remaining contractual
life, as applicable.
|
(2) |
Reflects
aggregate intrinsic value based on the difference between the market
price
of Tronox stock and the options' exercise
price.
|
2005
|
|
Risk-free
interest rate
|
4.6%
|
Expected
dividend yield
|
1.5%
|
Expected
volatility
|
34.5%
|
Expected
term (years)
|
6.3
|
Per-unit
fair value of options granted
|
$5.01
|
2005
|
2004
|
|
Risk-free
interest rate
|
3.9%
|
3.5%
|
Expected
dividend yield
|
3.5%
|
3.6%
|
Expected
volatility
|
26.4%
|
22.6%
|
Expected
term (years)
|
6.0
|
5.8
|
Weighted-average
estimate of fair value of options converted
|
$20.96
|
$8.63
|
Number
of
|
Fair
|
||||||
Shares
|
Value
(1)
|
||||||
Balance
at December 31, 2005
|
321,790
|
$
|
13.77
|
||||
Awards
converted from Kerr-McGee awards
|
628,369
|
12.98
|
|||||
Forfeited
|
(880
|
)
|
$
|
13.77
|
|||
Balance
at March 31, 2006
|
949,279
|
$
|
13.25
|
||||
Vested
at March 31, 2006
|
—
|
(1) |
Represents
the weighted-average grant-date fair
value.
|
Three
Months Ended March 31,
|
|||||||
2006
|
2005
(1)
|
||||||
(Millions
of dollars)
|
|||||||
U.S.
retirement plans
|
$
|
0.7
|
$
|
(0.1
|
)
|
||
U.S.
postretirement plans
|
2.6
|
1.9
|
(1)
|
Includes
costs associated with active and inactive employees of the company’s
domestic chemical business and, effective on the IPO date, costs
associated with Kerr-McGee corporate employees that became employees
of
Tronox after the IPO.
|
At
March 31, 2006
|
|||||||
U.S.
Retirement Plans
|
U.S.
Postretirement Plans
|
||||||
(Millions
of dollars)
|
|||||||
Accumulated
benefit obligation
|
$
|
(381.8
|
)
|
$
|
(144.2
|
)
|
|
Projected
benefit obligation
|
$
|
(410.9
|
)
|
$
|
(144.2
|
)
|
|
Fair
value of plan assets
|
440.7
|
—
|
|||||
Funded
status - over (under)
|
29.8
|
(144.2
|
)
|
||||
Unrecognized
prior service cost
|
16.9
|
(5.7
|
)
|
||||
Unrecognized
actuarial (gain) loss
|
59.2
|
35.0
|
|||||
Prepaid/(accrued)
benefit cost
|
$
|
105.9
|
$
|
(114.9
|
)
|
At
March 31, 2006
|
|||||||
U.S.
Retirement Plans
|
U.S.
Postretirement Plans
|
||||||
(Millions
of dollars)
|
|||||||
Prepaid
pension cost
|
$
|
108.8
|
$
|
—
|
|||
Accrued
benefit liability
|
(2.9
|
)
|
(10.9
|
)
|
|||
Noncurrent
liability
|
(1.7
|
)
|
(104.0
|
)
|
|||
Accumulated
other comprehensive income (before tax)
|
1.7
|
—
|
|||||
Total
|
$
|
105.9
|
$
|
(114.9
|
)
|
At
March 31, 2006
|
||||
Equity
securities
|
54
|
%
|
||
Fixed
income securities
|
43
|
|||
Cash
and cash equivalents
|
3
|
|||
Total
|
100
|
%
|
Reserves
for
Litigation
|
Reserves
for
Environmental
Remediation(1)
|
Reimbursements
Receivable(1)
|
||||||||
(Millions
of dollars)
|
||||||||||
Balance
at December 31, 2005
|
$
|
9.2
|
$
|
223.7
|
$
|
56.7
|
||||
Provisions
/ Accruals
|
—
|
2.0
|
22.2
|
|||||||
Payments
/ Settlements
|
(1.4
|
)
|
(9.2
|
)
|
(21.3
|
)
|
||||
Balance
at March 31, 2006
|
$
|
7.8
|
$
|
216.5
|
$
|
57.6
|
(1)
|
Provisions
for environmental remediation and restoration include $2.0 million
related to the company’s former forest products operations, thorium
compounds manufacturing, uranium and refining operations. Accrual
of
reimbursements receivable includes $1.7 million related to the company’s
former thorium compounds manufacturing. These amounts are reflected
in the
Condensed Consolidated and Combined Statement of Operations as a
component
of loss from discontinued operations (net of
tax).
|
·
|
Some
sites are in the early stages of investigation, and other sites may
be
identified in the future.
|
·
|
Remediation
activities vary significantly in duration, scope and cost from site
to
site depending on the mix of unique site characteristics, applicable
technologies and regulatory agencies
involved.
|
·
|
Remediation
requirements are difficult to predict at sites where remedial
investigations have not been completed or final decisions have not
been
made regarding remediation requirements, technologies or other factors
that bear on remediation costs.
|
·
|
Environmental
laws frequently impose joint and several liability on all potentially
responsible parties, and it can be difficult to determine the number
and
financial condition of other potentially responsible parties and
their
respective shares of responsibility for cleanup
costs.
|
·
|
Environmental
laws and regulations, as well as enforcement policies, are continually
changing, and the outcome of court proceedings and discussions with
regulatory agencies are inherently
uncertain.
|
·
|
Unanticipated
construction problems and weather conditions can hinder the completion
of
environmental remediation.
|
·
|
Some
legal matters are in the early stages of investigation or proceeding
or
their outcomes otherwise may be difficult to predict, and other legal
matters may be identified in the
future.
|
·
|
The
inability to implement a planned engineering design or use planned
technologies and excavation methods may require revisions to the
design of
remediation measures, which delay remediation and increase costs.
|
·
|
The
identification of additional areas or volumes of contamination and
changes
in costs of labor, equipment and technology generate corresponding
changes
in environmental remediation costs.
|
Three
Months Ended March 31,
|
|||||||
2006
|
2005
|
||||||
(Millions
of dollars)
|
|||||||
Net
sales
|
|||||||
Pigment
|
$
|
309.0
|
$
|
310.8
|
|||
Electrolytic
and other chemical products
|
27.2
|
23.4
|
|||||
Total
|
$
|
336.2
|
$
|
334.2
|
|||
Operating
profit
|
|||||||
Pigment
|
$
|
25.7
|
$
|
31.7
|
|||
Electrolytic
and other chemical products(1)
|
21.8
|
(8.7
|
)
|
||||
47.5
|
23.0
|
||||||
Expenses
of nonoperating sites(2)
|
(2.5
|
)
|
(0.2
|
)
|
|||
Total
operating profit
|
45.0
|
22.8
|
|||||
Interest
and debt expense - third parties
|
12.0
|
—
|
|||||
Other
income (expense)
|
4.4
|
(5.0
|
)
|
||||
Income
tax provision
|
(13.8
|
)
|
(5.4
|
)
|
|||
Income
from continuing operations
|
$
|
23.6
|
$
|
12.4
|
(1)
|
Includes
$(20.5) million and $11.0 million for the three months ended March
31, 2006 and 2005, respectively, of environmental charges, net of
reimbursements, related to ammonium perchlorate at the company’s Henderson
facility.
|
(2)
|
Includes
general expenses and environmental provisions related to various
businesses in which the company’s affiliates are no longer engaged, but
that have not met the criteria for reporting as discontinued
operations.
|
Tronox
Incorporated
|
Issuers
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||
(Millions
of dollars)
|
|||||||||||||||||||
Net
sales
|
$
|
—
|
$
|
—
|
$
|
181.9
|
$
|
172.5
|
$
|
(18.2
|
)
|
$
|
336.2
|
||||||
Cost
of goods sold
|
—
|
—
|
150.1
|
143.8
|
(17.9
|
)
|
276.0
|
||||||||||||
Gross
margin
|
—
|
—
|
31.8
|
28.7
|
(0.3
|
)
|
60.2
|
||||||||||||
Selling,
general and administrative expenses
|
0.5
|
0.2
|
20.7
|
15.2
|
(0.9
|
)
|
35.7
|
||||||||||||
Provision
for environmental remediation and restoration, net of
reimbursements
|
—
|
—
|
(20.5
|
)
|
—
|
—
|
(20.5
|
)
|
|||||||||||
(0.5
|
)
|
(0.2
|
)
|
31.6
|
13.5
|
0.6
|
45.0
|
||||||||||||
Interest
and debt expense - third parties
|
—
|
12.5
|
(0.2
|
)
|
(0.3
|
)
|
—
|
12.0
|
|||||||||||
Other
income (expense)
|
20.9
|
31.3
|
3.2
|
3.4
|
(54.4
|
)
|
4.4
|
||||||||||||
Income
from Continuing Operations before Income Taxes
|
20.4
|
18.6
|
35.0
|
17.2
|
(53.8
|
)
|
37.4
|
||||||||||||
Income
Tax Benefit (Provision)
|
0.2
|
2.4
|
(9.7
|
)
|
(6.7
|
)
|
—
|
(13.8
|
)
|
||||||||||
Income
from Continuing Operations
|
20.6
|
21.0
|
25.3
|
10.5
|
(53.8
|
)
|
23.6
|
||||||||||||
Loss
from Discontinued Operations, net of taxes
|
—
|
(0.1
|
)
|
(2.9
|
)
|
—
|
—
|
(3.0
|
)
|
||||||||||
Net
Income
|
$
|
20.6
|
$
|
20.9
|
$
|
22.4
|
$
|
10.5
|
$
|
(53.8
|
)
|
$
|
20.6
|
Issuer
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Eliminations
|
Combined
|
||||||||||||
(Millions
of dollars)
|
||||||||||||||||
Net
sales
|
$
|
—
|
$
|
180.2
|
$
|
182.0
|
$
|
(28.0
|
)
|
$
|
334.2
|
|||||
Cost
of goods sold
|
—
|
144.8
|
154.0
|
(26.5
|
)
|
272.3
|
||||||||||
Gross
margin
|
—
|
35.4
|
28.0
|
(1.5
|
)
|
61.9
|
||||||||||
Selling,
general and administrative expenses
|
—
|
13.5
|
16.5
|
(1.8
|
)
|
28.2
|
||||||||||
Provision
for environmental remediation and restoration, net of
reimbursements
|
—
|
10.9
|
—
|
—
|
10.9
|
|||||||||||
|
—
|
11.0
|
11.5
|
0.3
|
22.8
|
|||||||||||
Other
income (expense)
|
3.0
|
2.3
|
0.8
|
(11.1
|
)
|
(5.0
|
)
|
|||||||||
Income
from Continuing Operations before Income Taxes
|
3.0
|
13.3
|
12.3
|
(10.8
|
)
|
17.8
|
||||||||||
Income
Tax Benefit (Provision)
|
0.2
|
(2.5
|
)
|
(3.1
|
)
|
—
|
(5.4
|
)
|
||||||||
Income
from Continuing Operations
|
3.2
|
10.8
|
9.2
|
(10.8
|
)
|
12.4
|
||||||||||
Loss
from Discontinued Operations, net of taxes
|
(0.9
|
)
|
(7.5
|
)
|
—
|
—
|
(8.4
|
)
|
||||||||
Net
Income
|
$
|
2.3
|
$
|
3.3
|
$
|
9.2
|
$
|
(10.8
|
)
|
$
|
4.0
|
Tronox
Incorporated
|
Issuers
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||
(Millions
of dollars)
|
|||||||||||||||||||
ASSETS
|
|||||||||||||||||||
Current
Assets
|
|||||||||||||||||||
Cash
and cash equivalents
|
$
|
—
|
$
|
—
|
$
|
15.8
|
$
|
41.5
|
$
|
—
|
$
|
57.3
|
|||||||
Intercompany
receivables
|
—
|
—
|
59.8
|
11.6
|
(71.4
|
)
|
—
|
||||||||||||
Accounts
receivable, net of allowance for doubtful accounts
|
—
|
0.2
|
161.1
|
163.4
|
—
|
324.7
|
|||||||||||||
Inventories
|
—
|
—
|
209.8
|
138.7
|
(0.6
|
)
|
347.9
|
||||||||||||
Prepaid
and other assets
|
0.8
|
0.1
|
7.5
|
11.2
|
—
|
19.6
|
|||||||||||||
Income
tax receivable
|
—
|
—
|
—
|
0.8
|
—
|
0.8
|
|||||||||||||
Deferred
income taxes
|
—
|
7.4
|
27.2
|
3.8
|
(1.5
|
)
|
36.9
|
||||||||||||
Total
Current Assets
|
0.8
|
7.7
|
481.2
|
371.0
|
(73.5
|
)
|
787.2
|
||||||||||||
Property,
Plant and Equipment—Net
|
—
|
9.9
|
464.0
|
372.9
|
—
|
846.8
|
|||||||||||||
Investments
in Subsidiaries
|
2,202.6
|
986.2
|
171.8
|
—
|
(3,360.6
|
)
|
—
|
||||||||||||
Long-Term
Receivables, Investments
and
Other Assets
|
113.0
|
13.0
|
56.8
|
11.6
|
—
|
194.4
|
|||||||||||||
Goodwill
and Other Intangible Assets
|
—
|
—
|
28.2
|
33.0
|
—
|
61.2
|
|||||||||||||
Total
Assets
|
$
|
2,316.4
|
$
|
1,016.8
|
$
|
1,202.0
|
$
|
788.5
|
$
|
(3,434.1
|
)
|
$
|
1,889.6
|
||||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||||||||||||||
Current
Liabilities
|
|||||||||||||||||||
Intercompany
borrowings
|
$
|
530.6
|
$
|
—
|
$
|
129.6
|
$
|
218.5
|
$
|
(878.7
|
)
|
$
|
—
|
||||||
Accounts
payable
|
—
|
1.5
|
71.7
|
111.3
|
—
|
184.5
|
|||||||||||||
Accrued
liabilities
|
14.5
|
24.6
|
101.4
|
31.2
|
—
|
171.7
|
|||||||||||||
Long-term
debt due within one year
|
—
|
2.0
|
—
|
—
|
—
|
2.0
|
|||||||||||||
Income
taxes payable
|
—
|
—
|
9.6
|
2.1
|
—
|
11.7
|
|||||||||||||
Total
Current Liabilities
|
545.1
|
28.1
|
312.3
|
363.1
|
(878.7
|
)
|
369.9
|
||||||||||||
Noncurrent
Liabilities
|
|||||||||||||||||||
Deferred
income taxes
|
0.3
|
—
|
58.6
|
32.5
|
(1.5
|
)
|
89.9
|
||||||||||||
Environmental
remediation and/or restoration
|
—
|
4.3
|
134.5
|
—
|
—
|
138.8
|
|||||||||||||
Long-term
debt
|
—
|
547.5
|
—
|
—
|
—
|
547.5
|
|||||||||||||
Other
|
108.4
|
10.6
|
43.0
|
65.9
|
0.2
|
228.1
|
|||||||||||||
Total
Noncurrent Liabilities
|
108.7
|
562.4
|
236.1
|
98.4
|
(1.3
|
)
|
1,004.3
|
||||||||||||
Total
Stockholders’ Equity
|
1,662.6
|
426.3
|
653.6
|
327.0
|
(2,554.1
|
)
|
515.4
|
||||||||||||
Total
Liabilities and Stockholders’ Equity
|
$
|
2,316.4
|
$
|
1,016.8
|
$
|
1,202.0
|
$
|
788.5
|
$
|
(3,434.1
|
)
|
$
|
1,889.6
|
Tronox
Incorporated
|
Issuers
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Eliminations
|
Consolidated
|
||||||||||||||
(Millions
of dollars)
|
|||||||||||||||||||
ASSETS
|
|||||||||||||||||||
Current
Assets
|
|||||||||||||||||||
Cash
and cash equivalents
|
$
|
—
|
$
|
—
|
$
|
23.8
|
$
|
45.2
|
$
|
—
|
$
|
69.0
|
|||||||
Intercompany
receivables
|
—
|
—
|
53.0
|
11.4
|
(64.4
|
)
|
—
|
||||||||||||
Accounts
receivable, net of allowance for doubtful accounts
|
0.8
|
—
|
173.9
|
156.9
|
—
|
331.6
|
|||||||||||||
Inventories
|
—
|
—
|
192.2
|
121.3
|
(1.2
|
)
|
312.3
|
||||||||||||
Prepaid
and other assets
|
0.8
|
—
|
12.8
|
14.9
|
—
|
28.5
|
|||||||||||||
Income
tax receivable
|
—
|
—
|
—
|
2.4
|
—
|
2.4
|
|||||||||||||
Deferred
income taxes
|
—
|
8.4
|
26.6
|
3.1
|
(2.5
|
)
|
35.6
|
||||||||||||
Total
Current Assets
|
1.6
|
8.4
|
482.3
|
355.2
|
(68.1
|
)
|
779.4
|
||||||||||||
Property,
Plant and Equipment—Net
|
—
|
—
|
475.8
|
363.9
|
—
|
839.7
|
|||||||||||||
Investments
in Subsidiaries
|
2,222.4
|
996.8
|
203.5
|
—
|
(3,422.7
|
)
|
—
|
||||||||||||
Long-Term
Receivables, Investments
and
Other Assets
|
—
|
13.2
|
53.9
|
11.7
|
—
|
78.8
|
|||||||||||||
Goodwill
and Other Intangible Assets
|
—
|
—
|
28.2
|
32.2
|
—
|
60.4
|
|||||||||||||
Total
Assets
|
$
|
2,224.0
|
$
|
1,018.4
|
$
|
1,243.7
|
$
|
763.0
|
$
|
(3,490.8
|
)
|
$
|
1,758.3
|
||||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||||||||||||||
Current
Liabilities
|
|||||||||||||||||||
Intercompany
borrowings
|
$
|
543.1
|
$
|
—
|
$
|
111.5
|
$
|
214.7
|
$
|
(869.3
|
)
|
$
|
—
|
||||||
Accounts
payable
|
0.3
|
2.2
|
75.4
|
117.4
|
—
|