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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 June 30, 2024
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)
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 filer☒Accelerated filer☐
Non-accelerated filer☐Smaller 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 July 22, 2024, the Registrant had 157,919,518 ordinary shares outstanding.



2


3
TRONOX HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Millions of U.S. dollars, except share and per share data)
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Net sales$820 $794 $1,594 $1,502 
Cost of goods sold670 637 1,324 1,212 
Gross profit150 157 270 290 
Selling, general and administrative expenses74 73 153 144 
Income from operations76 84 117 146 
Interest expense(42)(38)(84)(71)
Interest income2 3 6 6 
Other income, net19 4 18 6 
Income before income taxes55 53 57 87 
Income tax provision(45)(322)(56)(331)
Net income (loss)10 (269)1 (244)
Net (loss) income attributable to noncontrolling interest(6)— (6)2 
Net income (loss) attributable to Tronox Holdings plc$16 $(269)$7 $(246)
Earnings (loss) per share:
Basic $0.10 $(1.72)$0.04 $(1.58)
Diluted$0.10 $(1.72)$0.04 $(1.58)
Weighted average shares outstanding, basic (in thousands)158,117 156,780 157,730 155,986 
Weighted average shares outstanding, diluted (in thousands)159,288 156,780 158,902 155,986 
See accompanying notes to unaudited condensed consolidated financial statements.
4
TRONOX HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(Millions of U.S. dollars)
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Net income (loss)$10 $(269)$1 $(244)
Other comprehensive income (loss):
Foreign currency translation adjustments14 (30)(27)(43)
Pension and postretirement plans:
Actuarial loss, (net of tax benefit of nil and less than $1 million in the three months ended June 30, 2024 and 2023, respectively, and net of tax benefit of nil and $1 million in the six months ended June 30, 2024 and 2023, respectively)
— (1)— — 
Amortization of unrecognized actuarial loss, (net of tax benefit of nil in the three and six months ended June 30, 2024 and 2023)
1 — 1 — 
Total pension and postretirement gain (loss)1 (1)1 — 
Realized (gains) losses on derivatives reclassified from accumulated other comprehensive loss to the Condensed Consolidated Statement of Operations (net of tax expense of nil and $1 million in the three months ended June 30, 2024 and 2023, respectively, and net of tax expense of nil and $2 million in the six months ended June 30, 2024 and 2023, respectively)
(2)1 (3)4 
Unrealized gains (losses) on derivative financial instruments, (net of tax expense of nil and $1 million for the three months ended June 30, 2024 and 2023, respectively, and net of tax benefit of nil and $1 million for the six months ended June 30, 2024 and 2023, respectively) - See Note 12
(1)9 9 3 
Other comprehensive income (loss)12 (21)(20)(36)
Total comprehensive income (loss)22 (290)(19)(280)
Comprehensive (loss) income attributable to noncontrolling interest:
Net (loss) income(6)— (6)2 
Foreign currency translation adjustments(4)3 (5)5 
Comprehensive (loss) income attributable to noncontrolling interest(10)3 (11)7 
Comprehensive income (loss) attributable to Tronox Holdings plc$32 $(293)$(8)$(287)

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)
June 30, 2024December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents$201 $273 
Accounts receivable (net of allowance for credit losses of $5 million and $3 million as of June 30, 2024 and December 31, 2023, respectively)
382 290 
Inventories, net1,424 1,421 
Prepaid and other assets210 141 
Income taxes receivable9 10 
Total current assets2,226 2,135 
Noncurrent Assets
Property, plant and equipment, net1,841 1,835 
Mineral leaseholds, net639 654 
Intangible assets, net246 243 
Lease right of use assets, net130 132 
Deferred tax assets888 917 
Other long-term assets126 218 
Total assets$6,096 $6,134 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable$457 $461 
Accrued liabilities243 230 
Short-term lease liabilities20 24 
Short-term debt— 11 
Long-term debt due within one year26 27 
Total current liabilities746 753 
Noncurrent Liabilities
Long-term debt, net2,781 2,786 
Pension and postretirement healthcare benefits101 104 
Asset retirement obligations182 172 
Environmental liabilities47 48 
Long-term lease liabilities103 103 
Deferred tax liabilities171 149 
Other long-term liabilities34 39 
Total liabilities4,165 4,154 
Commitments and Contingencies - Note 15
Shareholders’ Equity
Tronox Holdings plc ordinary shares, par value $0.01 — 157,912,468 shares issued and outstanding at June 30, 2024 and 156,793,755 shares issued and outstanding at December 31, 2023
2 2 
Capital in excess of par value2,074 2,064 
Retained earnings 651 684 
Accumulated other comprehensive loss(829)(814)
Total Tronox Holdings plc shareholders’ equity1,898 1,936 
Noncontrolling interest33 44 
Total equity1,931 1,980 
Total liabilities and equity$6,096 $6,134 
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)
Six Months Ended June 30,
20242023
Cash Flows from Operating Activities:
Net income (loss)$1 $(244)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization144 139 
Deferred income taxes 46 310 
Share-based compensation expense10 11 
Amortization of deferred debt issuance costs and discount on debt5 4 
Other non-cash items affecting net income (loss)13 26 
Changes in assets and liabilities:
Increase in accounts receivable, net of allowance for credit losses(97)(1)
Decrease (increase) in inventories, net8 (131)
Decrease in prepaid and other assets10 9 
Increase (decrease) in accounts payable and accrued liabilities13 (43)
Net changes in income tax payables and receivables(2)(4)
Changes in other non-current assets and liabilities(20)(19)
Cash provided by operating activities 131 57 
Cash Flows from Investing Activities:
Capital expenditures(152)(148)
Proceeds from sale of assets16 3 
Cash used in investing activities(136)(145)
Cash Flows from Financing Activities:
Repayments of short-term debt(11)(50)
Repayments of long-term debt(9)(9)
Proceeds from short-term debt— 201 
Debt issuance costs(2)— 
Dividends paid(41)(50)
Cash (used in) provided by financing activities(63)92 
Effects of exchange rate changes on cash and cash equivalents(4)(1)
Net (decrease) increase in cash and cash equivalents(72)3 
Cash and cash equivalents at beginning of period273 164 
Cash and cash equivalents at end of period$201 $167 
Supplemental cash flow information:
Interest paid, net$78 $61 
Income taxes paid$11 $24 
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 six months ended June 30, 2024
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, 2023156,794 $2 $2,064 $684 $(814)$1,936 $44 $1,980 
Net loss— — — (9)— (9)— (9)
Other comprehensive loss— — — — (31)(31)(1)(32)
Share-based compensation1,050 — 6 — — 6 — 6 
Shares cancelled(6)— — — — — — — 
Ordinary share dividends ($0.125 per share)
— — — (20)— (20)— (20)
Balance at March 31, 2024157,838 $2 $2,070 $655 $(845)$1,882 $43 $1,925 
Net income (loss)— — — 16 — 16 (6)10 
Other comprehensive income (loss)— — — — 16 16 (4)12 
Share-based compensation94 — 4 — — 4 — 4 
Shares cancelled(20)— — — — — — — 
Ordinary share dividends ($0.125 per share)
— — — (20)— (20)— (20)
Balance at June 30, 2024157,912 $2 $2,074 $651 $(829)$1,898 $33 $1,931 
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 six months ended June 30, 2023
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, 2022154,497 $2 $2,043 $1,080 $(768)$2,357 $46 $2,403 
Net income— — — 23 — 23 2 25 
Other comprehensive income (loss)— — — — (17)(17)2 (15)
Share-based compensation2,221 — 6 — — 6 — 6 
Shares cancelled(1)— — — — — — — 
Ordinary share dividends ($0.125 per share)
— — — (20)— (20)— (20)
Balance at March 31, 2023156,717 $2 $2,049 $1,083 $(785)$2,349 $50 $2,399 
Net loss— — — (269)— (269)— (269)
Other comprehensive (loss) income— — — — (24)(24)3 (21)
Share-based compensation92 — 5 — — 5 — 5 
Shares cancelled(22)— — — — — — — 
Minority interest dividend— — — — — — (8)(8)
Ordinary share dividends ($0.125 per share)
— — — (20)— (20)— (20)
Balance at June 30, 2023156,787 $2 $2,054 $794 $(809)$2,041 $45 $2,086 
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 and South Africa 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. Our strategy is to be vertically integrated and produce enough feedstock materials to be as self-sufficient as possible in the production of TiO2 at our nine TiO2 pigment facilities located 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, pig iron and the rare-earth bearing mineral, monazite, 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, 2023.
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 June 30, 2024, and its results of operations for the three and six months ended June 30, 2024 and 2023. 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
10

In November 2023, the FASB issued ASU 2023-07, "Improvements to Reportable Segment Disclosures". The amendment requires additional disclosures by public entities, including those with a single reportable segment, to disclose significant segment expenses and other segment items for each reportable segment. The guidance applies to fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating any incremental disclosures required as a result of this standard.
In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures". The amendments in this update apply to all entities that are subject to Topic 740, Income Taxes. The standard requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. The amendments in this update are effective for annual periods beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. We are currently evaluating any incremental disclosures required as a result of this standard.
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 June 30, 2024, and December 31, 2023, we did not have any 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 both June 30, 2024 and December 31, 2023 were less than $1 million. Contract liability balances were reported as “Accounts payable” in the unaudited Condensed Consolidated Balance Sheets.  All material contract liabilities as of December 31, 2023 were recognized as revenue in “Net sales” in the unaudited Condensed Consolidated Statements of Operations during the first quarter of 2024.
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.
11
Net sales to external customers by geographic areas where our customers are located were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
North America$222 $204 $414 $393 
South and Central America51 41 97 82 
Europe, Middle-East and Africa308 319 617 602 
Asia Pacific239 230 466 425 
Total net sales$820 $794 $1,594 $1,502 

Net sales from external customers for each similar type of product were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
TiO2
$653 $611 $1,259 $1,171 
Zircon85 95 173 167 
Other products82 88 162 164 
Total net sales$820 $794 $1,594 $1,502 
Other products mainly include pig iron, TiCl4 and other mining products.
During the six months ended June 30, 2024 and 2023, our ten largest third-party customers represented 36% and 37%, respectively, of our consolidated net sales. During both the six months ended June 30, 2024 and 2023, no single customer accounted for 10% of our consolidated net sales.
12
3.    Income Taxes
Our operations are conducted through various subsidiaries in a number of countries throughout the world. We have provided for income taxes based upon the tax laws and rates in the countries in which operations are conducted and income is earned.
Income before income taxes is comprised of the following:
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Income tax provision$(45)$(322)$(56)$(331)
Income before income taxes$55 $53 $57 $87 
Effective tax rate82 %608 %98 %380 %
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 June 30, 2024 and 2023 was 25%. The statutory rate in the U.K. changed to 25% effective April 1, 2023 and a weighted average of 23.5% was applied for the full year 2023. The effective tax rates for both the three and six months ended June 30, 2024 and 2023 are impacted by a variety of factors including income and losses in jurisdictions with valuation allowances, non-taxable income and expense items, prior year accruals, and our jurisdictional mix of income at tax rates different than the U.K. statutory rate.

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 three months ended June 30, 2024, we identified negative evidence concerning our ability to realize our Brazilian deferred tax assets. This evidence primarily relates to operational losses generated during the current year, a three-year cumulative loss threshold crossed during the quarter, and fluctuating levels of income and expenses which have led to uncertainty regarding the region's ability to generate net income in the foreseeable future. As a result, we recorded a full valuation allowance against Brazil's $16 million in deferred tax assets.

We continue to maintain full valuation allowances related to the total net deferred tax assets in Australia 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 China, South Africa and the United States.

The Company currently has no uncertain tax positions recorded. We believe that we have made adequate provisions for income taxes that may be payable with respect to years open for examination or currently under examination. With regard to years under examination, 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.

During the year ended December 31, 2023, the United Kingdom enacted legislation consistent with guidance from the Organization for Economic Co-operation and Development ("OECD") for the implementation of the Global Anti-Base Erosion Model Rules (Pillar Two). Additionally, various other jurisdictions have now implemented domestic minimum taxes which are also effective for 2024. Neither the UK multinational top-up tax nor any jurisdiction's domestic minimum tax are expected to have a material impact on our income tax provisions for 2024.
13
4.    Income Per Share
The computation of basic and diluted income per share for the periods indicated is as follows:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Numerator - Basic and Diluted:
Net income (loss)$10 $(269)$1 $(244)
Less: Net (loss) income attributable to noncontrolling interest(6)— (6)2 
Net income (loss) available to ordinary shares$16 $(269)$7 $(246)
Denominator - Basic and Diluted:
Weighted-average ordinary shares, basic (in thousands)158,117 156,780 157,730 155,986 
Weighted-average ordinary shares, diluted (in thousands)159,288 156,780 158,902 155,986 
Basic net income (loss) per ordinary share$0.10 $(1.72)$0.04 $(1.58)
Diluted net income (loss) per ordinary share$0.10 $(1.72)$0.04 $(1.58)
Net income (loss) per ordinary share amounts were calculated from exact, not rounded net income (loss) and share information.  Anti-dilutive shares not recognized in the diluted net income (loss) per share calculation for the three and six months ended June 30, 2024 and 2023 were as follows:
Shares
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Options3,473 265,376 3,473 265,376 
Restricted share units1,391,399 3,047,432 1,266,453 2,873,310 

5.    Accounts Receivable Securitization Program

On March 15, 2022, the Company entered into an accounts receivable securitization program (“Securitization Facility”) with a financial institution ("Purchaser"), through our wholly owned special purpose bankruptcy-remote subsidiary Tronox Securitization LLC (“ SPE”). In November 2022, the Securitization Facility was amended (the "First Amendment") to include receivable generated by our wholly-owned Australian operating subsidiaries Tronox Pigment Pty Ltd., Tronox Pigment Bunbury Ltd. and Tronox Mining Australia Ltd. In June 2023, the Company entered into an additional amendment (the “Second Amendment”) to further include receivables generated by our wholly-owned European operating subsidiaries Tronox Pigment Holland BV and Tronox Pigment UK Limited. Neither the facility limit nor the program term were changed as a result of the Second Amendment, which remained at $200 million and November 2025, respectively.
In March 2024, we entered into a Securitization Facility technical amendment (the "Third Amendment"), to increase the percentage of certain receivables eligible for sale to the Purchaser. In April 2024, we again amended the Securitization Facility (the "Fourth Amendment"), to increase the Facility Limit from $200 million to $230 million.
As the Company does not maintain effective control over the sold receivables, we derecognize the sold receivables from our unaudited Condensed Consolidated Balance Sheet and classify the cash proceeds as source of cash from operating activities in our unaudited Condensed Consolidated Statement of Cash Flows.
14
The program is structured on a revolving basis under which cash collections from receivables are used to fund additional purchases of receivables at 100% face value, not to exceed the facility limit. As of June 30, 2024 and December 31, 2023, the total value of accounts receivables sold under the Securitization Facility and derecognized from the Company's unaudited Condensed Consolidated Balance Sheet was $230 million and $186 million, respectively. This resulted in the Company recording $5 million within "Accounts payable" on the Condensed Consolidated Balance Sheet at December 31, 2023, as this amount is due to the Purchaser as a result of a periodic decrease in accounts receivable sold to the Purchaser, which was paid in January 2024. There were no corresponding amounts in Accounts Payable as of June 30, 2024. Additionally, at June 30, 2024 and December 31, 2023, we retained approximately $171 million and $129 million, respectively, of unsold receivables which we pledged as collateral for the sold receivables.
The following table sets forth a summary of the receivables sold and fees incurred under the program during the related periods:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Cash proceeds from collections reinvested in the program$276 $201 $498 $345 
Incremental accounts receivables sold306 284 542 422 
Fees incurred1
4 3 7 5 
1 Amounts relate to monthly utilization of the Securitization Facility and are recorded in "Other income, net" in our unaudited Condensed Consolidated Statement of Operations.

6.    Inventories, Net
Inventories, net consisted of the following:
June 30, 2024December 31, 2023
Raw materials$355 $352 
Work-in-process151 141 
Finished goods, net676 688 
Materials and supplies, net242 240 
Inventories, net$1,424 $1,421 
Materials and supplies, net consists of processing chemicals, maintenance supplies and spare parts, which will be consumed directly and indirectly in the production of our products.
At June 30, 2024 and December 31, 2023, there was approximately $59 million and $57 million, respectively, of inventory that is not expected to be sold within one year and as such, has been recorded in "Other long-term assets" on the Condensed Consolidated Balance Sheets.
At June 30, 2024 and December 31, 2023, inventory obsolescence reserves primarily for materials and supplies were $44 million and $42 million, respectively. Reserves for lower of cost or market and net realizable value were $26 million and $50 million at June 30, 2024 and December 31, 2023, respectively.
15
7.    Property, Plant and Equipment, Net
Property, plant and equipment, net of accumulated depreciation, consisted of the following:
June 30, 2024December 31, 2023
Land and land improvements$241 $237 
Buildings409 404 
Machinery and equipment2,564 2,530 
Construction-in-progress372 319 
Other58 60 
Subtotal3,644 3,550 
Less: accumulated depreciation(1,803)(1,715)
Property, plant and equipment, net$1,841 $1,835 
Substantially all of the property, plant and equipment, net is pledged as collateral for our debt.
The table below summarizes depreciation expense related to property, plant and equipment for the periods presented, recorded in the specific line items in our unaudited Condensed Consolidated Statements of Operations:
Three Months Ended June 30,Six Months Ended
June 30,
2024202320242023
Cost of goods sold$56 $52 $112 $106 
Selling, general and administrative expenses1 1 2 2 
Total$57 $53 $114 $108 

8.    Mineral Leaseholds, Net
Mineral leaseholds, net of accumulated depletion, consisted of the following:
June 30, 2024December 31, 2023
Mineral leaseholds$1,260 $1,260 
Less: accumulated depletion(621)(606)
Mineral leaseholds, net$639 $654 

Depletion expense relating to mineral leaseholds recorded in “Cost of goods sold” in the unaudited Condensed Consolidated Statements of Operations was $8 million and $7 million during the three months ended June 30, 2024 and 2023, respectively. Depletion expense relating to mineral leaseholds recorded in "Cost of goods sold" in the unaudited Condensed Consolidated Statements of Operations was $15 million and $15 million during the six months ended June 30, 2024 and 2023, respectively.
16
9.    Intangible Assets, Net
Intangible assets, net of accumulated amortization, consisted of the following:
June 30, 2024December 31, 2023
Gross CostAccumulated
Amortization		Net Carrying
Amount		Gross CostAccumulated
Amortization		Net Carrying
Amount
Customer relationships$292 $(260)$32 $291 $(250)$41 
TiO2 technology
93 (47)46 93 (44)49 
Internal-use software and other218 (50)168 201 (48)153 
Intangible assets, net$603 $(357)$246 $585 $(342)$243 
As of June 30, 2024 and December 31, 2023, internal-use software included approximately $141 million and $125 million, respectively, of capitalized software costs which are not being amortized as the software is not ready for its intended use.
The table below summarizes amortization expense related to intangible assets for the periods presented, recorded in the specific line items in our unaudited Condensed Consolidated Statements of Operations:
Three Months Ended June 30,Six Months Ended
June 30,
2024202320242023
Cost of goods sold$1 $1 $2 $2 
Selling, general and administrative expenses6 7 13 14 
Total$7 $8 $15 $16 
Estimated future amortization expense related to intangible assets is $17 million for the remainder of 2024, $36 million for 2025, $22 million for 2026, $32 million for 2027, $32 million for 2028 and $107 million thereafter.
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10.    Balance Sheet and Cash Flow Supplemental Information
Accrued liabilities consisted of the following:
June 30, 2024December 31, 2023
Employee-related costs and benefits$114 $111 
Related party payables14 1 
Interest16 16 
Sales rebates38 36 
Taxes other than income taxes9 6 
Asset retirement obligations12 14 
Other accrued liabilities40 46 
Accrued liabilities$243 $230 
Additional supplemental cash flow information for the six months ended June 30, 2024 and 2023 and as of June 30, 2024 and December 31, 2023 is as follows:
Six Months Ended June 30,
Supplemental non cash information:20242023
Operating activities - Chloride slag inventory purchases made from AMIC (including VAT)$34 $— 
Operating activities - MGT sales made to AMIC$3 $3 
Operating activities - Withholding tax on sale of royalty interest1
$7 $— 
Investing activities - Proceeds from sale of royalty interest1
$7 $— 
Investing activities - In-kind receipt of AMIC loan repayment$34 $— 
Financing activities - Repayment of MGT loan$3 $3 
June 30, 2024December 31, 2023
Capital expenditures acquired but not yet paid$59 $67 
1 During the three months ended June 30, 2024, the Company sold a royalty interest in certain Canadian mineral properties for proceeds of $28 million (net of associated transaction costs) which was recorded in "Other income, net" on the unaudited condensed consolidated statement of operations. Of the total proceeds, $7 million were withheld for tax purposes and never collected by the Company.

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11.    Debt
Long-Term Debt
Long-term debt, net of an unamortized discount and debt issuance costs, consisted of the following:
Original
Principal		Annual
Interest Rate		Maturity
Date		June 30, 2024December 31, 2023
Term Loan Facility, net of unamortized discount (1)
1,300 Variable3/11/2028$899 $898 
2022 Term Loan Facility, net of unamortized discount(1)
400 Variable4/4/2029— 390 
2023 Term Loan Facility, net of unamortized discount(1)
350 Variable8/16/2028— 347 
2024 Term Loan Facility, net of unamortized discount(1)
741 Variable4/4/2029735 — 
Senior Notes due 2029 1,075 4.625 %3/15/20291,075 1,075 
Standard Bank Term Loan Facility (1)
98 Variable11/11/202660 64 
Australian Government Loan, net of unamortized discountN/AN/A12/31/20361 1 
MGT Loan(2)
36VariableVariable22 25 
Finance leases42 43 
Long-term debt2,834 2,843 
Less: Long-term debt due within one year(26)(27)
Debt issuance costs(27)(30)
Long-term debt, net$2,781 $2,786 
_______________
(1)The average effective interest rate on the Term Loan Facility (including the impacts of the interest rate swaps), the 2022 Term Loan Facility, the 2023 Term Loan Facility, the 2024 Term Loan Facility and the Standard Bank Term Loan Facility was 5.7%, 9.2%, 9.3%, 8.2% and 10.7%, respectively, during the six months ended June 30, 2024. The average effective interest rate on the Term Loan Facility (including the impacts of the interest rate swaps), the 2022 Term Loan Facility and Standard Bank Term Loan Facility was 5.1%, 8.5% and 10.0%, respectively, during the six months ended June 30, 2023. As of June 30, 2024, the applicable margin on the Term Loan Facility and the 2024 Term Loan Facility was 2.50% and 2.75%, respectively.
(2)The MGT loan is a related party debt facility. The average effective interest rate on the MGT loan was 6.1% and 6.0% during the six months ended June 30, 2024 and June 30, 2023, respectively.
Long-Term Debt
2024 Term Loan Facility
On May 1, 2024, Tronox Finance LLC (the “Borrower”), an indirect subsidiary of Tronox Holdings plc (the “Company”), together with the Company and certain of the Company’s subsidiaries, entered into Amendment No. 4 (the "2024 Amendment") to the Credit Agreement (as defined below) with the term lenders party thereto and HSBC Bank USA, National Association, as Administrative Agent and Collateral Agent. The 2024 Amendment provides the Borrower with a new five -year incremental term loan facility ("the 2024 Term Loan Facility" and the loan thereunder, the "2024 Term Loans") in an aggregate initial principal amount of $741 million under its Amended and Restated Credit Agreement, dated as of March 11, 2021 (as amended through the date hereof, the "Credit Agreement") among the Borrower, the Company, certain of the Company's subsidiaries, the lenders party thereto from time to time and HSBC Bank USA, National Association, as
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Administrative Agent and Collateral Agent. The 2024 Term Loan Facility was used to refinance in full the Company's outstanding 2022 Term Loan Facility and the 2023 Term Loan Facility.
The obligations of the Borrower under the 2024 Term Loan Facility are guaranteed and secured by the same guarantees and liens under the Credit Agreement prior to the effectiveness of the Amendment. The 2024 Term Loan Facility is a separate class of loans under the Credit Agreement, and if the Borrower elects to make an optional payment under the Credit Agreement or is required to make a mandatory prepayment under the Credit Agreement, the Borrower may, in each case, select which class or classes of loans to prepay.
The 2024 Term Loan Facility will amortize in equal quarterly installments in an aggregate annual amount equal to 1.0% of the original principal amount of the 2024 Term Loan Facility commencing with the second full fiscal quarter after the effective date of the 2024 Term Loan Facility. The final maturity of the 2024 Term Loan Facility will occur on April 4, 2029. The 2024 Term Loan Facility permits amendments thereto whereby individual lenders may extend the maturity date of their outstanding loans upon the Borrower's request without the consent of any other lender, so long as certain conditions are met. The 2024 Term Loan Facility shall bear interest, at the Borrower's option, at either the base rate or the SOFR rate, in each case plus an applicable margin. The applicable margin in respect of the 2024 Term Loan Facility is 1.75% per annum for base rate loans or 2.75% per annum for SOFR rate loans.
The 2024 Term Loan Facility contains the same negative covenants applicable to the term loans outstanding under the Credit Agreement immediately prior to the effectiveness of the Amendment, which covenants, subject to certain limitations, thresholds and exceptions, limit the Company and its restricted subsidiaries to (among other restrictions): incur indebtedness; grant liens; pay dividends and make subsidiary and certain other distributions; sell assets; make investments; enter into transactions with affiliates; and make certain modifications to material documents (including organizational documents).
Short-Term Debt
Emirates Revolver
In June 2024, the Company entered into an amendment to extend the maturity date of the Emirates Revolver from June 2024 to December 2024.
Insurance premium financing
In August 2023, the Company entered into a $27 million insurance premium financing agreement with a third-party financing company. The financing balance requires a 33% down payment and will be repaid in monthly installments over 9 months at an 8% fixed annual interest rate. As of June 30, 2024, the financing balance was repaid in full.
Debt Covenants
As of June 30, 2024, we are in compliance with all financial covenants in our debt facilities.
12.    Derivative Financial Instruments
Derivatives recorded on the Condensed Consolidated Balance Sheets:
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The following table is a summary of the fair value of derivatives outstanding at June 30, 2024 and December 31, 2023:
Fair Value
June 30, 2024December 31, 2023
Assets(a) Accrued Liabilities Assets(a)Accrued Liabilities
Derivatives Designated as Cash Flow Hedges
Interest Rate Swaps $27 $— $18 $— 
Natural Gas Hedges$— $— $— $1 
Total Hedges $27 $— $18 $1 
Derivatives Not Designated as Cash Flow Hedges
Currency Contracts $2 $— $1 $1 
Total Derivatives $29 $— $19 $2 
(a) At June 30, 2024 and December 31, 2023, current assets of $29 million and $19 million, respectively, are recorded in prepaid and other current assets on the Condensed Consolidated Balance Sheets.
Derivatives' Impact on the Condensed Consolidated Statement of Operations:
The following table summarizes the impact of the Company's derivatives on the unaudited Condensed Consolidated Statement of Operations:
Amount of Pre-Tax Gain (Loss) Recognized in Earnings Amount of Pre-Tax Gain (Loss) Recognized in Earnings
Cost of Goods Sold
Other income, net
Cost of Goods Sold
Other income, net
Three Months Ended June 30, 2024Three Months Ended June 30, 2023
Derivatives Not Designated as Hedging Instruments
Currency Contracts$— $3 $— $2 
Derivatives Designated as Hedging Instruments
Currency Contracts $— $— $(2)$— 
Natural Gas Hedges$— $— $(1)$— 
Total Derivatives $— $3 $(3)$2 
Amount of Pre-Tax Gain (Loss) Recognized in Earnings Amount of Pre-Tax Gain (Loss) Recognized in Earnings
Cost of Goods Sold
Other income, net
Cost of Goods Sold
Other income, net
Six Months Ended June 30, 2024Six Months Ended June 30, 2023
Derivatives Not Designated as Hedging Instruments
Currency Contracts$— $(3)$— $(5)
Derivatives Designated as Hedging Instruments
Currency Contracts $— $— $(4)$— 
Natural Gas Hedges$(1)$— $(3)$— 
Total Derivatives $(1)$(3)$(7)$(5)
Interest Rate Risk
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As a result of the 2024 Amendment (discussed in Note 11), the Company noted that the hedged transaction associated with the interest rate swap with a notional value of $200 million (which converted the variable rate to a fixed rate for a portion of the 2022 Term Loan Facility) had changed as the hedged transaction would now convert the variable rate to a fixed rate for a portion of the 2024 Term Loan Facility. There were no amendments to the terms of the $200 million interest rate swap, including the notional value, index rate, or expiration date as a result of the 2024 Amendment. However, given the change in the hedged transaction, we completed a hedge effectiveness test and determined that this hedge instrument continues to be highly effective at achieving offsetting cash flows related to the hedged transaction, enabling us to continue to apply hedge accounting over the remaining term of this hedge relationship.
As of June 30, 2024, the Company maintains a total of $950 million of interest rate swaps (with $700 million maturing in March 2028 and $250 million maturing in September 2024) with the objective in using the interest-rate swap agreements to add stability to interest expense and to manage the Company's exposure to interest rate movements. These interest rate swaps have been designated as cash flow hedges and involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Fair value gains or losses on these cash flow hedges are recorded in accumulated other comprehensive loss and are subsequently reclassified into interest expense in the same periods during which the hedged transactions affect earnings.
At June 30, 2024 and December 31, 2023, the net unrealized gain of $27 million and the unrealized gain of $18 million, respectively, was recorded in "Accumulated other comprehensive loss" on the unaudited Condensed Consolidated Balance Sheet. For the three and six months ended June 30, 2024, the amounts recorded in interest expense related to the interest-rate swap agreements were $7 million and $15 million, respectively, of which a gain of approximately $2 million for each period was reclassified from "Accumulated other comprehensive loss" to interest expense. For the three and six months ended June 30, 2023, the net amounts recorded in interest expense related to the interest-rate swap agreements were $7 million and $11 million, respectively.
Foreign Currency Risk
From time to time, we enter into foreign currency contracts used to hedge forecasted third party non-functional currency sales for our South African subsidiaries and forecasted non-functional currency cost of goods sold for our Australian subsidiaries. Historically, we have used a combination of zero-cost collars or forward contracts to reduce the exposure.  These foreign currency contracts are designated as cash flow hedges. Changes to the fair value of these foreign currency contracts are recorded as a component of other comprehensive (loss) income, if these contracts remain highly effective, and are recognized in net sales or costs of goods sold in the period in which the forecasted transaction affects earnings or are recognized in other income, net when the transactions are no longer probable of occurring. As of June 30, 2024, we had no outstanding amounts to reduce the exposure of our Australian subsidiaries’ cost of sales to fluctuations in currency rates or to reduce the exposure of our South African subsidiaries' third party sales to fluctuations in currency rates. At December 31, 2022, there was an unrealized net loss of $4 million recorded in "Accumulated other comprehensive loss" on the unaudited Condensed Consolidated Balance Sheet, which was fully recognized in earnings during the six months ended June 30, 2023.
From time to time, we enter into foreign currency contracts for the South African Rand, Australian Dollar, Euro, Pound Sterling, and Saudi Riyal to reduce exposure of our subsidiaries’ balance sheet accounts not denominated in our subsidiaries’ functional currency to fluctuations in foreign currency exchange rates. Historically, we have used forward contracts to reduce the exposure.  For accounting purposes, these foreign currency contracts are not considered hedges. The change in fair value associated with these contracts is recorded in “Other income, net” within the unaudited Condensed Consolidated Statement of Operations and partially offsets the change in value of third party and intercompany-related receivables not denominated in the functional currency of the subsidiary. At June 30, 2024, there was (i) 1 billion South African Rand (or approximately $57 million at June 30, 2024 exchange rate), (ii) 173 million Australian dollars (or approximately $115 million at the June 30, 2024 exchange rate), (iii) 48 million Pound Sterling (or approximately $61 million at the June 30, 2024 exchange rate), (iv) 27 million Euro (or approximately $29 million at the June 30, 2024 exchange rate), and (v) 142 million Saudi Riyal (or approximately $38 million at the June 30, 2024 exchange rate) of notional amounts of outstanding foreign currency contracts. At December 31, 2023, there was (i) 837 million South African Rand (or approximately $46 million at the June 30, 2024 exchange rate), (ii) 153 million Australian dollars (or approximately $102 million at the June 30, 2024 exchange rate), (iii) 45 million Pound Sterling (or approximately $57 million at the June 30, 2024 exchange rate), (iv) 45 million Euro (or approximately $48 million at the June 30, 2024 exchange rate) and (v) 67 million Saudi Riyal (or approximately $18 million at the June 30, 2024 exchange rate) of notional amounts of outstanding foreign currency contracts.
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13.    Fair Value
Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The accounting standards also have established a fair value hierarchy, which prioritizes the inputs to valuation techniques used in measuring fair value into three broad levels as follows:
Level 1 -Quoted prices in active markets for identical assets or liabilities
Level 2 -Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly
Level 3 -Unobservable inputs based on the Company’s own assumptions
Our debt is recorded at historical amounts. The following table presents the fair value of our debt and derivative contracts at both June 30, 2024 and December 31, 2023:
June 30,
2024		December 31,
2023
AssetLiability AssetLiability
Term Loan Facility— 906 — 903 
2022 Term Loan Facility— — — 394 
2023 Term Loan Facility— — — 351 
2024 Term Loan Facility— 743 — — 
Standard Bank Term Loan Facility— 60 — 64 
Senior Notes due 2029— 969 — 956 
Australian Government Loan— 1 — 1 
MGT Loan— 22 — 25 
Interest rate swaps27 — 18 — 
Natural gas hedges— — — 1 
Foreign currency contracts2 — 1 1 
We determined the fair value of the Term Loan Facility, the 2022 Term Loan Facility, the 2023 Term Loan Facility, the 2024 Term Loan Facility and the Senior Notes due 2029 using quoted market prices, which under the fair value hierarchy is a Level 1 input. We determined the fair value of the Standard Bank Term Loan Facility utilizing transactions in the listed markets for identical or similar liabilities, which under the fair value hierarchy is a Level 2 input. The fair value of the Australian Government Loan and MGT Loan is based on the contracted amount which is a Level 2 input.
We determined the fair value of the foreign currency contracts, natural gas hedges and the interest rate swaps using inputs other than quoted prices in active markets that are observable either directly or indirectly. The fair value hierarchy for the foreign currency contracts, natural gas hedges and interest rate swaps is a Level 2 input.
The carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued liabilities and short-term debt approximate fair value due to the short-term nature of these items.
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14.    Asset Retirement Obligations
Asset retirement obligations consist primarily of rehabilitation and restoration costs, landfill capping costs, decommissioning costs, and closure and post-closure costs. Activities related to asset retirement obligations were as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Beginning balance$188 $158 $186 $161 
Additions