Chemours Announces Completion of Planned Procedures by the Audit Committee with Respect to Internal Review
28 March 2024 - 8:30AM
Business Wire
Discloses Material Weaknesses and Remediation
Plan
The Chemours Company (“Chemours” or “the Company”) (NYSE: CC), a
global chemistry company with leading market positions in Titanium
Technologies (“TT”), Thermal & Specialized Solutions (“TSS”),
and Advanced Performance Materials (“APM”), today announced that,
as disclosed in the Company’s Annual Report on Form 10-K filed
today, March 27, 2024, the Audit Committee of the Board of
Directors has completed its planned procedures with respect to the
internal review that the Company had previously disclosed on
February 29, 2024, with an update provided on March 7, 2024.
The Audit Committee’s internal review of working capital actions
determined that payments of up to approximately $100 million were
delayed until the first quarter of 2024, primarily to certain
vendors that were originally due to be paid in the fourth quarter
of 2023; and collection of up to approximately $260 million of
receivables that were originally not due to be received until the
first quarter of 2024 were accelerated into the fourth quarter of
2023. The Audit Committee’s review determined that similar actions,
though to a lesser extent, were taken in the fourth quarter of
2022, resulting in a delay of up to approximately $40 million of
payments to vendors that were originally due to be paid in the
fourth quarter of 2022 until the first quarter of 2023; and the
acceleration of the collection of up to approximately $175 million
of receivables into the fourth quarter of 2022 that were originally
not due to be received until the first quarter of 2023.
The Audit Committee’s internal review determined that there was
a lack of transparency with the Company's Board of Directors by
three former members of senior management. The Compensation and
Leadership Development Committee of the Company’s Board of
Directors took the results of the Audit Committee’s internal review
into account and exercised full negative discretion in making cash
and equity compensation determinations with regard to these former
members of senior management.
Additional details regarding these Compensation and Leadership
Development Committee actions will be included in the Company’s
Compensation Discussion and Analysis in its proxy statement for its
2024 Annual Meeting, when filed.
Material Weaknesses and Remediation Plan
In connection with the Audit Committee’s internal review,
management completed an evaluation of the Company’s internal
control over financial reporting as of December 31, 2023 and
identified four material weaknesses, the details of which can be
found in the Company’s Annual Report on Form 10-K filed today,
March 27, 2024.
The material weaknesses did not result in any material
misstatements of the Company’s financial statements or disclosures
but did result in immaterial revisions to the Company’s March 31,
2023, June 30, 2023 and September 30, 2023 financial statements and
a revision to the Company’s Balance Sheet as of December 31, 2022
and the Company’s Statement of Cash Flows for each of the years
ended December 31, 2022 and 2021.
The Company is in the process of designing and implementing
enhancements to its internal control over financial reporting.
Additional details on the material weaknesses, as well as the steps
the Company has taken and is continuing to take to remediate them,
can be found in the Company’s Annual Report on Form 10-K for the
year ended December 31, 2023 filed with the U.S. Securities and
Exchange Commission.
About The Chemours Company
The Chemours Company (NYSE: CC) is a global leader in Titanium
Technologies, Thermal & Specialized Solutions, and Advanced
Performance Materials providing its customers with solutions in a
wide range of industries with market-defining products, application
expertise, and chemistry-based innovations. We deliver customized
solutions with a wide range of industrial and specialty chemicals
products for markets, including coatings, plastics, refrigeration
and air conditioning, transportation, semiconductor and consumer
electronics, general industrial, and oil and gas. Our flagship
products include prominent brands such as Ti-Pure™, Opteon™,
Freon™, Teflon™, Viton™, Nafion™, and Krytox™. The Company has
approximately 6,200 employees and 28 manufacturing sites, and
serving approximately 2,700 customers in approximately 110
countries. Chemours is headquartered in Wilmington, Delaware and is
listed on the NYSE under the symbol CC.
For more information, we invite you to visit chemours.com or
follow us on X (formerly Twitter) @Chemours or on LinkedIn.
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version on businesswire.com: https://www.businesswire.com/news/home/20240327441525/en/
INVESTORS Brandon Ontjes VP, FP&A and Investor
Relations +1.302.773.3309 investor@chemours.com Kurt Bonner
Manager, Investor Relations +1.302.773.0026
investor@chemours.com
NEWS MEDIA Cassie Olszewski Corporate Media & Brand
Reputation Leader +1.302.219.7140 media@chemours.com
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