Note 20. Financial Instruments

Objectives and Strategies for Holding Financial Instruments

In the ordinary course of business, Chemours enters into contractual arrangements to reduce its exposure to foreign currency risks. The Company has established a financial risk management program, which includes distinct risk management instruments: (i) foreign currency forward contracts, which are used to minimize the volatility in the Company’s earnings related to foreign exchange gains and losses resulting from remeasuring its monetary assets and liabilities that are denominated in non-functional currencies; (ii) foreign currency forward contracts, which are used to mitigate the risks associated with fluctuations in the euro against the U.S. dollar for forecasted U.S. dollar-denominated inventory purchases in certain of the Company’s international subsidiaries that use the euro as their functional currency; (iii) interest rate swaps, which are used to mitigate the volatility in the Company’s cash payments for interest due to fluctuations in variable interest rates, as is applicable to the portion of the Company’s senior secured term loan facility denominated in U.S. dollars; and, (iv) euro-denominated debt and cross-currency swaps, both of which are used to reduce the volatility in stockholders’ equity caused by changes in foreign currency exchange rates of the euro with respect to the U.S. dollar for certain of its international subsidiaries that use the euro as their functional currency. The Company’s financial risk management program reflects varying levels of exposure coverage and time horizons based on an assessment of risk. The program operates within Chemours’ financial risk management policies and guidelines, and the Company does not enter into derivative financial instruments for trading or speculative purposes.

Net Monetary Assets and Liabilities Hedge – Foreign Currency Forward Contracts

At June 30, 2026, the Company had 12 foreign currency forward contracts outstanding with an aggregate gross notional U.S. dollar equivalent of $225, and an average maturity of one month. At December 31, 2025, the Company had 9 foreign currency forward contracts outstanding with an aggregate gross notional U.S. dollar equivalent of $170, and an average maturity of one month. Chemours recognized net losses of $3 and $6 for the three and six months ended June 30, 2026, respectively, and a net gain of $1 and a net loss of $1 for the three and six months ended June 30, 2025, respectively, in other income (expense), net.

Cash Flow Hedge – Foreign Currency Forward Contracts

At June 30, 2026, the Company had 169 foreign currency forward contracts outstanding under its cash flow hedge program with an aggregate notional U.S. dollar equivalent of $199, and an average maturity of four months. At December 31, 2025, the Company had 170 foreign currency forward contracts outstanding under its cash flow hedge program with an aggregate notional U.S. dollar equivalent of $214, and an average maturity of four months. Chemours recognized a pre-tax gain of $2 and a pre-tax gain of $6 for the three and six months ended June 30, 2026, respectively, and pre-tax losses of $14 and $18 for the three and six months ended June 30, 2025, respectively, within accumulated other comprehensive loss. For the three and six months ended June 30, 2026, $2 and $5 of loss was reclassified to the cost of goods sold from accumulated other comprehensive loss, respectively. For the three and six months ended June 30, 2025, $2 and $5 of gains were reclassified to the cost of goods sold from accumulated other comprehensive loss, respectively.

The Company expects to reclassify approximately $4 of net pre-tax loss, based on current foreign currency exchange rates, from accumulated other comprehensive loss to the cost of goods sold over the next 12 months.

Cash Flow Hedge – Interest Rate Swaps

At June 30, 2026 and December 31, 2025, the Company had two interest rate swaps outstanding under its cash flow program with an aggregate notional U.S. dollar equivalent of $300; each of the interest rate swaps mature on October 31, 2026. Chemours recognized no amount of pre-tax gain/loss and a pre-tax gain of less than $1 for the three and six months ended June 30, 2026, respectively, within accumulated other comprehensive loss. Chemours recognized a pre-tax gain of less than $1 and a pre-tax loss of $1 for the three and six months ended June 30, 2025, within accumulated other comprehensive loss, respectively. For the three and six months ended June 30, 2026, $1 and $2 of loss were reclassified to interest expense, net from accumulated other comprehensive loss, respectively. For the three and six months ended June 30, 2025 $1 and $1 of losses were reclassified to interest expense, net from accumulated other comprehensive loss, respectively.

The Company expects to reclassify approximately $1 of net pre-tax loss from accumulated other comprehensive loss to interest expense, net over the next 4 months, based on the current market rate.

Net Investment Hedge – Foreign Currency Forward Contract

On June 4, 2026, we entered into a foreign currency forward contract with a gross notional U.S. dollar equivalent of $145 that we designated as a net investment hedge of the Company's foreign currency exchange rate exposure of the net investments of its TWD-denominated subsidiary. The Company recognized a pre-tax gain of $1 for the three months ended June 30, 2026, on its foreign currency borrowing net investment hedge within accumulated other comprehensive loss. The balances in AOCI associated with the foreign currency forward contract will remain in AOCI and will only be reclassified into earnings if and when the net investment in our Taiwan subsidiary is sold or substantially sold. No amounts were reclassified from accumulated other comprehensive loss for the Company’s net investment hedges during the three months ended June 30, 2026.

Net Investment Hedge – Foreign Currency Borrowings

The Company recognized pre-tax loss of $1 and a pre-tax gain of $9 for the three and six months ended June 30, 2026, respectively, and pre-tax losses of $40 and $55 for the three and six months ended June 30, 2025, respectively, on its foreign currency borrowing net investment hedge within accumulated other comprehensive loss. The balances is in AOCI associated with the foreign currency borrowings designated as an investment hedge will remain in AOCI and will only be reclassified into earnings if and when the net investment in our European subsidiaries are sold or substantially sold. No amounts were reclassified from accumulated other comprehensive loss for the Company’s net investment hedges during the three and six months ended June 30, 2026 and 2025.

On June 2, 2026, the Company de-designated €100 million of foreign currency borrowings from net investment hedge accounting. As a result of this de-designation, the Company recognized a pre-tax gain of $3 for three months ended June 30, 2026, in other income (expense), net. Concurrently with this de-designation, we entered into an off-setting foreign currency forward contract, with a total notional amount of €100 million that was designated as a fair value hedge with changes in fair value recognized within other income (expense), net. The Company recognized a pre-tax loss of $3 for the three and six months ended June 30, 2026 on its foreign currency forward contract within other income (expense), net.

Net Investment Hedge – Cross-Currency Swaps

Concurrently with the offering of the senior unsecured notes due January 2023 (as described further in "Note15 - Debt"), the Company entered into a cross-currency swap to effectively convert $600 of the senior unsecured notes due January 2033 into a euro-denominated borrowing of €567 million at prevailing euro interest rates, maturing on January 15, 2030. The foreign currency swap qualifies and has been designated as a net investment hedge of the Company's foreign currency exchange rate exposure of the net investments of certain of its euro-denominated subsidiaries. The Company recognized pre-tax losses of $6 and pre-tax gain of $12 for the three and six months ended June 30, 2026 within accumulated other comprehensive loss. No amount was reclassified from accumulated other comprehensive loss for the Company's cross-currency swap for the three and six months ended June 30, 2026.

In June 2026, the Company entered into a cross-currency swap to effectively convert an additional $349 senior unsecured notes into a euro-denominated borrowing of €300 million at prevailing euro interest rates, maturing on March 15, 2031. The foreign currency swap qualifies and has been designated as a net investment hedge of the Company's foreign currency exchange rate exposure of the net investments of certain of its euro-denominated subsidiaries. The Company recognized a pre-tax gain of $1 for the three and six months ended June 30, 2026 on this cross-currency swap within accumulated other comprehensive loss. No amount was reclassified from accumulated other comprehensive loss for this cross-currency swap for the three and six months ended June 30, 2026.

Fair Value of Derivative Instruments

The Company’s foreign currency forward contracts are classified as Level 2 financial instruments within the fair value hierarchy as the valuation inputs are based on quoted prices and market observable data of similar instruments. For derivative assets and liabilities, standard industry models are used to calculate the fair value of the various financial instruments based on significant observable market inputs, such as foreign exchange rates and implied volatilities obtained from various market sources. Market inputs are obtained from well-established and recognized vendors of market data, and are subjected to tolerance and/or quality checks.

Summary of Financial Instruments