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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
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
For the transition period from __________to ___________
1-35573
(Commission file number)
TRONOX HOLDINGS PLC
(Exact Name of Registrant as Specified in its Charter) extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
England and Wales98-1467236
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
263 Tresser Boulevard, Suite 1100
Stamford, Connecticut 06901
Laporte Road, Stallingborough
Grimsby, North East Lincolnshire, DN40 2PR
United Kingdom 
Registrant’s telephone number, including area code: (203) 705-3800
Securities registered pursuant to Section 12(b) of the Act:
Title of each className of each exchange on which registered
Ordinary Shares, par value $0.01 per shareNew York Stock Exchange
Trading Symbol: TROX
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

As of October 20, 2022, the Registrant had 154,465,072 ordinary shares outstanding.




2



3

TRONOX HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Millions of U.S. dollars, except share and per share data)
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Net sales$895 $870 $2,805 $2,688 
Cost of goods sold663 626 2,078 2,011 
Gross profit232 244 727 677 
Selling, general and administrative expenses69 76 220 234 
Venator settlement  85  
Income from operations163 168 422 443 
Interest expense(32)(37)(92)(123)
Interest income2 1 6 4 
Loss on extinguishment of debt (3)(21)(60)
Other income, net8 12 12 6 
Income before income taxes141 141 327 270 
Income tax benefit (provision)(18)(28)187 (54)
Net income123 113 514 216 
Net income attributable to noncontrolling interest2 2 2 13 
Net income attributable to Tronox Holdings plc$121 $111 $512 $203 
Earnings per share:
Basic $0.78 $0.72 $3.30 $1.34 
Diluted$0.77 $0.70 $3.23 $1.29 
Weighted average shares outstanding, basic (in thousands)154,548 153,762 155,027 151,472 
Weighted average shares outstanding, diluted (in thousands)156,948 159,020 158,201 157,148 
See accompanying notes to unaudited condensed consolidated financial statements.
4

TRONOX HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(Millions of U.S. dollars)
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Net income$123 $113 $514 $216 
Other comprehensive income (loss):
Foreign currency translation adjustments(122)(70)(175)(62)
Pension and postretirement plans:
Actuarial losses, (net of tax benefit of nil in both the three and nine months ended September 30, 2022 and less than $1 million in both the three and nine months September 30, 2021)
 1  (1)
Amortization of unrecognized actuarial losses, (net of tax benefit of less than $1 million in both the three months ended September 30, 2022 and 2021, respectively, and $1 million and less than $1 million in the nine months ended September 30, 2022 and 2021, respectively)
1 1 2 3 
Total pension and postretirement gains1 2 2 2 
Realized (gains) losses on derivatives reclassified from accumulated other comprehensive loss to the Condensed Consolidated Statement of Income (net of tax expense of less than $1 million and nil in the three months ended September 30, 2022 and 2021, respectively, and net of tax expense of $1 million and nil in the nine months ended September 30, 2022 and 2021)
(1)(13)(23)(22)
Unrealized (losses) gains on derivative financial instruments, (net of tax benefit of $1 million and nil for the three months ended September 30, 2022 and 2021, respectively and net of tax expense of $3 million and nil for the nine months ended September 30, 2022 and 2021, respectively) - See Note 12
7  50 12 
Other comprehensive loss(115)(81)(146)(70)
Total comprehensive income8 32 368 146 
Comprehensive income (loss) attributable to noncontrolling interest:
Net income2 2 2 13 
Foreign currency translation adjustments(2)(4)1 (9)
Comprehensive (loss) income attributable to noncontrolling interest (2)3 4 
Comprehensive income attributable to Tronox Holdings plc$8 $34 $365 $142 
See accompanying notes to unaudited condensed consolidated financial statements.
5

TRONOX HOLDINGS PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Millions of U.S. dollars, except share and per share data)
September 30, 2022December 31, 2021
ASSETS
Current Assets
Cash and cash equivalents$91 $228 
Restricted cash 4 
Accounts receivable (net of allowance for credit losses of $4 million and $4 million as of September 30, 2022 and December 31, 2021, respectively)
584 631 
Inventories, net1,132 1,048 
Prepaid and other assets155 132 
Income taxes receivable5 6 
Total current assets1,967 2,049 
Noncurrent Assets
Property, plant and equipment, net1,749 1,710 
Mineral leaseholds, net693 747 
Intangible assets, net251 217 
Lease right of use assets, net82 85 
Deferred tax assets1,216 985 
Other long-term assets201 194 
Total assets$6,159 $5,987 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$426 $438 
Accrued liabilities262 328 
Short-term lease liabilities18 26 
Short-term debt84  
Long-term debt due within one year22 18 
Income taxes payable26 12 
Total current liabilities838 822 
Noncurrent Liabilities
Long-term debt, net2,463 2,558 
Pension and postretirement healthcare benefits108 116 
Asset retirement obligations136 139 
Environmental liabilities64 66 
Long-term lease liabilities55 55 
Deferred tax liabilities143 157 
Other long-term liabilities30 32 
Total liabilities3,837 3,945 
Commitments and Contingencies - Note 15
Shareholders’ Equity
Tronox Holdings plc ordinary shares, par value $0.01154,460,592 shares issued and outstanding at September 30, 2022 and 153,934,677 shares issued and outstanding at December 31, 2021
2 2 
Capital in excess of par value2,038 2,067 
Retained earnings 1,116 663 
Accumulated other comprehensive loss(885)(738)
Total Tronox Holdings plc shareholders’ equity2,271 1,994 
Noncontrolling interest51 48 
Total equity2,322 2,042 
Total liabilities and equity$6,159 $5,987 
See accompanying notes to unaudited condensed consolidated financial statements.
6

TRONOX HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Millions of U.S. dollars)
Nine Months Ended September 30,
20222021
Cash Flows from Operating Activities:
Net income$514 $216 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization201 227 
Deferred income taxes (241)13 
Share-based compensation expense21 23 
Amortization of deferred debt issuance costs and discount on debt6 8 
Loss on extinguishment of debt21 60 
Other non-cash items affecting net income 51 23 
Changes in assets and liabilities:
Decrease (increase) in accounts receivable, net of allowance for credit losses7 (95)
(Increase) decrease in inventories, net(151)104 
Decrease in prepaid and other assets16 36 
(Decrease) Increase in accounts payable and accrued liabilities(55)26 
Net changes in income tax payables and receivables17 14 
Changes in other non-current assets and liabilities(49)(54)
Cash provided by operating activities 358 601 
Cash Flows from Investing Activities:
Capital expenditures(314)(183)
Insurance proceeds 1 
Proceeds from sale of assets3 1 
Cash used in investing activities(311)(181)
Cash Flows from Financing Activities:
Repayments of short-term debt(24) 
Repayments of long-term debt(511)(3,008)
Proceeds from long-term debt396 2,375 
Proceeds from short-term debt87  
Repurchase of common stock(50) 
Call premiums paid(18)(40)
Debt issuance costs(4)(36)
Proceeds from the exercise of options 6 
Dividends paid(60)(46)
Restricted stock and performance-based shares settled in cash for withholding taxes (3)
Cash used in financing activities(184)(752)
Effects of exchange rate changes on cash and cash equivalents and restricted cash(4)(3)
Net decrease in cash, cash equivalents and restricted cash(141)(335)
Cash, cash equivalents and restricted cash at beginning of period232 648 
Cash, cash equivalents and restricted cash at end of period$91 $313 
Supplemental cash flow information:
Interest paid, net$99 $113 
Income taxes paid$37 $25 
See accompanying notes to unaudited condensed consolidated financial statements.
7

TRONOX HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited)
(Millions of U.S. dollars, except for shares)
For the nine months ended September 30, 2022
Tronox
Holdings
plc
Ordinary
Shares (in
thousands)
Tronox
Holdings
plc
Ordinary
Shares
(Amount)
Capital
in
Excess
of par
Value
Retained EarningsAccumulated
Other
Comprehensive
Loss
Total
Tronox
Holdings plc
Shareholders’
Equity
Non-
controlling
Interest
Total
Equity
Balance at December 31, 2021153,935 $2 $2,067 $663 $(738)$1,994 $48 $2,042 
Net income— — — 16 — 16 — 16 
Other comprehensive income— — — — 101 101 8 109 
Share-based compensation3,254 — 7 — — 7 — 7 
Shares cancelled(9)— — — — — —  
Options exercised3 — — — — — —  
Shares repurchased and cancelled(1,386)— (25)— (25)(25)
Ordinary share dividends ($0.125 per share)
— — — (20)— (20)— (20)
Balance at March 31, 2022155,797 $2 $2,049 $659 $(637)$2,073 $56 $2,129 
Net income— — — 375 — 375 — 375 
Other comprehensive loss— — — — (135)(135)(5)(140)
Share-based compensation91 — 7 — — 7 — 7 
Shares cancelled(8)— — — —  —  
Options exercised11 — — — —  —  
Shares repurchased and cancelled(1,458)— (25)— — (25)— (25)
Ordinary share dividends ($0.125 per share)
— — — (20)— (20)— (20)
Balance at June 30, 2022154,433 $2 $2,031 $1,014 $(772)$2,275 $51 $2,326 
Net income— — — 121 — 121 2 123 
Other comprehensive (loss) income— — — — (113)(113)(2)(115)
Share-based compensation28 — 7 — — 7 — 7 
Ordinary share dividends ($0.125 per share)
— — — (19)— (19)— (19)
Balance at September 30, 2022154,461 $2 $2,038 $1,116 $(885)$2,271 $51 $2,322 
See accompanying notes to unaudited condensed consolidated financial statements.
8

TRONOX HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Continued)
(Unaudited)
(Millions of U.S. dollars, except for shares)
For the nine months ended September 30, 2021
Tronox
Holdings
plc
Ordinary
Shares (in
thousands)
Tronox
Holdings
plc
Ordinary
Shares
(Amount)
Capital
in
Excess
of par
Value
Retained EarningsAccumulated
Other
Comprehensive
Loss
Total
Tronox
Holdings plc Shareholders’
Equity
Non-
controlling
Interest
Total
Equity
Balance at December 31, 2020143,557 $1 $1,873 $434 $(610)$1,698 $173 $1,871 
Net income— — — 19 — 19 7 26 
Other comprehensive loss— — — — (24)(24)(10)(34)
Share-based compensation2,545 — 9 — — 9 — 9 
Shares cancelled(101)— (2)— — (2)— (2)
Options exercised11 — — — — — —  
Acquisition of noncontrolling interest7,246 1 158 — (34)125 (125) 
Ordinary share dividends ($0.08 per share)
— — — (13)— (13)— (13)
Balance at March 31, 2021153,258 $2 $2,038 $440 $(668)$1,812 $45 $1,857 
Net loss— — — 73 — 73 4 77 
Other comprehensive income— — — — 40 40 5 45 
Share-based compensation225 — 7 — — 7 — 7 
Shares cancelled(31)— (1)— — (1)— (1)
Options exercised137 — 3 — — 3 — 3 
Ordinary share dividends ($0.08 per share)
— — — (12)— (12)— (12)
Balance at June 30, 2021153,589 $2 $2,047 $501 $(628)$1,922 $54 $1,976 
Net income— — — 111 — 111 2 113 
Other comprehensive loss— — — — (77)(77)(4)(81)
Share-based compensation69 — 7 — — 7 — 7 
Shares cancelled(4)— — — — — —  
Options exercised171 — 3 — — 3 — 3 
Ordinary share dividends ($0.10 per share)
— — — (16)— (16)(3)(19)
Balance at September 30, 2021153,825 $2 $2,057 $596 $(705)$1,950 $49 $1,999 
See accompanying notes to unaudited condensed consolidated financial statements.
9

TRONOX HOLDINGS PLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Millions of U.S. dollars, except share, per share and metric tons data or unless otherwise noted)

1.    The Company
Tronox Holdings plc (referred to herein as "Tronox", the "Company", "we", "us", or "our") operates titanium-bearing mineral sand mines and beneficiation operations in Australia, South Africa and Brazil to produce feedstock materials that can be processed into TiO2 for pigment, high purity titanium chemicals, including titanium tetrachloride, and Ultrafine© titanium dioxide used in certain specialty applications. It is our long-term strategic goal to be vertically integrated and consume all of our feedstock materials in our own nine TiO2 pigment facilities which we operate in the United States, Australia, Brazil, UK, France, the Netherlands, China and the Kingdom of Saudi Arabia (“KSA”). We believe that vertical integration is the best way to achieve our ultimate goal of delivering low cost, high-quality pigment to our coatings and other TiO2 customers throughout the world. The mining, beneficiation and smelting of titanium bearing mineral sands creates meaningful quantities of Zircon and pig iron, which we also supply to customers around the world.
We are a public limited company listed on the New York Stock Exchange and are registered under the laws of England and Wales.
Basis of Presentation
The accompanying condensed consolidated financial statements are unaudited and have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission regarding interim financial reporting. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021.
In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, considered necessary for a fair statement of its financial position as of September 30, 2022, and its results of operations for the three and nine months ended September 30, 2022 and 2021. Our unaudited condensed consolidated financial statements include the accounts of all majority-owned subsidiary companies. All intercompany balances and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the manner and presentation in the current period.
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. It is at least reasonably possible that the effect on the financial statements of a change in estimate due to one or more future confirming events could have a material effect on the financial statements, including, among other things, any potential impacts on the economy as a result of macroeconomic conditions, inflationary pressures, political instability, and supply chain disruptions.
Recently Issued Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform Financial Reporting.” This amendment is elective in nature. Amongst other aspects, this standard provides for practical expedients and exceptions to current accounting standards that reference a rate which is expected to be dissolved (e.g., London Interbank Offered Rate “LIBOR”) as it relates to hedge accounting, contract modifications and other transactions that reference this rate, subject to meeting certain criteria. The standard is effective for all entities as of March 12, 2020 through December 31, 2022. We have conducted an internal assessment to identify items that would be impacted as a result of the dissolution of LIBOR. Based upon this assessment, we have determined that this change will be most impactful to our intercompany debt agreements and interest rate swap agreements. Upon conversion of these benchmark rates, we intend to elect the practical expedients allowed under this standard which is expected to result in an immaterial impact to the financial statements.

10

2.    Revenue
We recognize revenue at a point in time when the customer obtains control of the promised products. For most transactions this occurs when products are shipped from our manufacturing facilities or at a later point when control of the products transfers to the customer at a specified destination or time.
Contract assets represent our rights to consideration in exchange for products that have transferred to a customer when the right is conditional on situations other than the passage of time. For products that we have transferred to our customers, our rights to the consideration are typically unconditional and only the passage of time is required before payments become due. These unconditional rights are recorded as "Accounts receivable" in the unaudited Condensed Consolidated Balance Sheets. As of September 30, 2022, and December 31, 2021, we did not have material contract asset balances.
Contract liabilities represent our obligations to transfer products to a customer for which we have received consideration from the customer. From time to time, we may receive advance payment from our customers that is accounted for as deferred revenue. Deferred revenue is earned when control of the product transfers to the customer, which is typically within a short period of time from when we received the advanced payment. Contract liability balances as of September 30, 2022 and December 31, 2021 were approximately $1 million and $2 million, respectively. Contract liability balances were reported as “Accounts payable” in the unaudited Condensed Consolidated Balance Sheets.  All material contract liabilities as of December 31, 2021 were recognized as revenue in “Net sales” in the unaudited Condensed Consolidated Statements of Income during the first quarter of 2022.
Disaggregation of Revenue
We operate under one operating and reportable segment, Tronox. We disaggregate our revenue from contracts with customers by product type and geographic area. We believe this level of disaggregation appropriately depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors and reflects how our business is managed.
Net sales to external customers by geographic areas where our customers are located were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
North America$228 $183 $628 $546 
South and Central America73 63 213 194 
Europe, Middle-East and Africa331 345 1,069 1,059 
Asia Pacific263 279 895 889 
Total net sales$895 $870 $2,805 $2,688 

Net sales from external customers for each similar type of product were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
TiO2
$673 $682 $2,215 $2,118 
Zircon128 116 346 360 
Feedstock and other products94 72 244 210 
Total net sales$895 $870 $2,805 $2,688 
Feedstock and other products mainly include pig iron, TiCl4 and other mining products.
During the nine months ended September 30, 2022 and 2021, our ten largest third-party customers represented 30% and 28%, respectively, of our consolidated net sales. During the nine months ended September 30, 2022 and 2021, no single customer accounted for 10% of our consolidated net sales.
11

3.    Income Taxes
Our operations are conducted through various subsidiaries in a number of countries throughout the world. We have provided for income taxes based upon the tax laws and rates in the countries in which operations are conducted and income is earned.
Income before income taxes is comprised of the following:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022202120222021
Income tax (provision) benefit$(18)$(28)$187 $(54)
Income before income taxes$141 $141 $327 $270 
Effective tax rate13 %20 %(57)%20 %
Tronox Holdings plc, a U.K. public limited company is the parent company for the business group, and the statutory tax rate in the U.K. at both September 30, 2022 and 2021 was 19%. The effective tax rates for both the three months ended September 30, 2022 and 2021 are impacted by a variety of factors, primarily income and losses in jurisdictions with valuation allowances, disallowable expenditures, prior year accruals, and our jurisdictional mix of income at tax rates different than the U.K. statutory rate. The effective tax rate for the three months and the nine months ended September 30, 2022 was significantly impacted by the release of a portion of the valuation allowance in Australia. In addition to that, the effective tax rate for the nine months ended September 30, 2022 was significantly impacted by the non-deductible Venator settlement and the related interest expense from the Venator settlement in a jurisdiction with a full valuation allowance as well as a $7 million deferred tax benefit from statutory tax rate changes in two foreign jurisdictions.
At each reporting date, we perform an analysis to determine the likelihood of realizing our deferred tax assets and whether any valuation allowances are required. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income (including the reversals of deferred tax liabilities) during the periods in which those deferred tax assets will become deductible. Our analysis takes into consideration all available positive and negative evidence, including prior operating results, the nature and reason for any losses, our forecast of future taxable income, utilization of tax planning strategies, and the dates on which any deferred tax assets are expected to expire. These assumptions and estimates require a significant amount of judgment and are made based on current and projected circumstances and conditions.
During the nine months ended September 30, 2022, we determined that sufficient positive evidence existed to reverse a portion of the valuation allowance attributable to the deferred tax assets associated with our operations in Australia. This reversal resulted in non-cash deferred tax benefits of $16 million and $278 million for the three and nine months ended September 30, 2022, respectively. Our analysis considered all positive and negative evidence, including (i) three years of cumulative income for our Australian subsidiaries, (ii) our continuing and improved profitability over the last twelve months, (iii) estimates of continued profitability based on updates to our latest forecasts, (iv) changes in the factors that drove losses in the past, and (v) an evaluation of specific deferred tax assets for limitations under certain Australian tax provisions. Based on this analysis, we concluded that it is more likely than not that our Australian subsidiaries will be able to utilize all of their deferred tax assets except for those which are classified as Capital Gains Tax (CGT) assets. These CGT assets represent losses which can only be utilized against CGT gains, and because the company has no foreseeable source of CGT gains, we will continue to carry an Australian valuation allowance with a current estimated value of $475 million.
We continue to maintain full valuation allowances related to the total net deferred tax assets in Switzerland and the United Kingdom, as we cannot objectively assert that these deferred tax assets are more likely than not to be realized. Until these valuation allowances are eliminated, future provisions for income taxes for these jurisdictions will include no tax benefits with respect to losses incurred and tax expense only to the extent of current tax payments. Additionally, we have valuation allowances against specific tax assets in Australia, South Africa and the United States.

The Company currently has no uncertain tax positions recorded. We believe that we have made adequate provision for income taxes that may be payable with respect to years open for examination; however, the ultimate outcome is not presently known and, accordingly, adjustments to our provisions may be necessary and/or reclassifications of noncurrent tax liabilities to current may occur in the future.
12

4.    Income Per Share
The computation of basic and diluted income per share for the periods indicated is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
202220212022