Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 24, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CIX | ||
Entity Registrant Name | COMPX INTERNATIONAL INC | ||
Entity Central Index Key | 1,049,606 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 2,419,107 | ||
Entity Public Float | $ 19 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 33,153 | $ 52,347 |
Accounts receivable | 10,347 | 8,760 |
Inventories | 14,974 | 15,098 |
Prepaid expenses and other | 701 | 704 |
Total current assets | 59,175 | 76,909 |
Other assets: | ||
Note receivable from affiliate | 27,400 | |
Goodwill | 23,742 | 23,742 |
Other noncurrent | 590 | 590 |
Total other assets | 51,732 | 24,332 |
Property and equipment: | ||
Land | 4,935 | 4,928 |
Buildings | 22,541 | 21,231 |
Equipment | 65,570 | 63,539 |
Construction in progress | 1,098 | 1,567 |
Gross property and equipment | 94,144 | 91,265 |
Less accumulated depreciation | 61,071 | 57,714 |
Net property and equipment | 33,073 | 33,551 |
Total assets | 143,980 | 134,792 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 11,882 | 11,618 |
Income taxes payable to affiliate | 1,441 | 470 |
Total current liabilities | 13,323 | 12,088 |
Noncurrent liabilities - | ||
Deferred income taxes | 4,887 | 5,001 |
Stockholders' equity: | ||
Preferred stock, $.01 par value; 1,000 shares authorized, none issued | ||
Additional paid-in capital | 55,515 | 55,422 |
Retained earnings | 70,131 | 62,157 |
Total stockholders' equity | 125,770 | 117,703 |
Total liabilities and stockholders’ equity | 143,980 | 134,792 |
Commitments and contingencies (Note 10) | ||
Class A Common Stock | ||
Stockholders' equity: | ||
Common stock | 24 | 24 |
Total stockholders' equity | 24 | 24 |
Class B Common Stock | ||
Stockholders' equity: | ||
Common stock | 100 | 100 |
Total stockholders' equity | $ 100 | $ 100 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares issued | 0 | 0 |
Class A Common Stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 2,419,107 | 2,411,107 |
Common stock, shares outstanding | 2,419,107 | 2,411,107 |
Class B Common Stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 10,000,000 | 10,000,000 |
Common stock, shares outstanding | 10,000,000 | 10,000,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Net sales | $ 108,920 | $ 108,994 | $ 103,846 |
Cost of goods sold | 73,753 | 75,593 | 71,598 |
Gross profit | 35,167 | 33,401 | 32,248 |
Selling, general and administrative expense | 19,593 | 19,430 | 18,641 |
Operating income | 15,574 | 13,971 | 13,607 |
Interest income | 390 | 50 | 66 |
Income before income taxes | 15,964 | 14,021 | 13,673 |
Provision for income taxes | 5,507 | 4,903 | 5,012 |
Net income | $ 10,457 | $ 9,118 | $ 8,661 |
Basic and diluted earnings per common share | $ 0.84 | $ 0.73 | $ 0.70 |
Cash dividends per share | $ 0.20 | $ 0.20 | $ 0.20 |
Basic and diluted weighted average shares outstanding | 12,416 | 12,408 | 12,401 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 10,457 | $ 9,118 | $ 8,661 |
Depreciation and amortization | 3,698 | 3,536 | 3,533 |
Deferred income taxes | (114) | 125 | 468 |
Provision for inventory reserves | 161 | 233 | 24 |
Other, net | 169 | 125 | 133 |
Change in assets and liabilities: | |||
Accounts receivable, net | (1,596) | (46) | (251) |
Inventories, net | (37) | 1,532 | (3,652) |
Accounts payable and accrued liabilities | 153 | (1,036) | 3,119 |
Accounts with affiliates | 970 | 37 | 93 |
Other, net | 3 | (148) | 42 |
Net cash provided by operating activities | 13,864 | 13,476 | 12,170 |
Cash flows from investing activities: | |||
Capital expenditures | (3,175) | (4,218) | (2,825) |
Note receivable from affiliate: | |||
Collections | 9,200 | ||
Advances | (36,600) | ||
Other, net | (48) | ||
Net cash used in investing activities | (30,575) | (4,218) | (2,873) |
Cash flows from financing activities - | |||
Dividends paid | (2,483) | (2,481) | (2,480) |
Net cash used in financing activities | (2,483) | (2,481) | (2,480) |
Net increase (decrease) | (19,194) | 6,777 | 6,817 |
Cash and cash equivalents - Net increase (decrease) from: | |||
Operating, investing and financing activities | (19,194) | 6,777 | 6,817 |
Balance at beginning of year | 52,347 | 45,570 | 38,753 |
Balance at end of year | 33,153 | 52,347 | 45,570 |
Supplemental disclosures - | |||
Cash paid for income taxes | $ 4,646 | $ 4,743 | $ 4,449 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Additional paid-in Capital | Retained Earnings | Class A Common Stock | Class B Common Stock |
Balance at Dec. 31, 2013 | $ 104,728 | $ 55,265 | $ 49,339 | $ 24 | $ 100 |
Net income | 8,661 | 8,661 | |||
Cash dividends | (2,480) | (2,480) | |||
Issuance of common stock | 77 | 77 | |||
Balance at Dec. 31, 2014 | 110,986 | 55,342 | 55,520 | 24 | 100 |
Net income | 9,118 | 9,118 | |||
Cash dividends | (2,481) | (2,481) | |||
Issuance of common stock | 80 | 80 | |||
Balance at Dec. 31, 2015 | 117,703 | 55,422 | 62,157 | 24 | 100 |
Net income | 10,457 | 10,457 | |||
Cash dividends | (2,483) | (2,483) | |||
Issuance of common stock | 93 | 93 | |||
Balance at Dec. 31, 2016 | $ 125,770 | $ 55,515 | $ 70,131 | $ 24 | $ 100 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 – Organization. We (NYSE MKT: CIX) are 87% owned by NL Industries, Inc. (NYSE: NL) at December 31, 2016. We manufacture and sell component products (security products and recreational marine components). At December 31, 2016, Valhi, Inc. (NYSE: VHI) owns 83% of NL’s outstanding common stock and a wholly-owned subsidiary of Contran Corporation owns 93% of Valhi’s outstanding common stock. All of Contran’s outstanding voting stock is held by a family trust established for the benefit of Lisa K. Simmons and Serena Simmons Connelly and their children, for which Ms. Simmons and Ms. Connelly are co-trustees, or is held directly by Ms. Simmons and Ms. Connelly or entities related to them. Consequently, Ms. Simmons and Ms. Connelly may be deemed to control Contran, Valhi, NL and us. Unless otherwise indicated, references in this report to “we,” “us,” or “our” refer to CompX International Inc. and its subsidiaries, taken as a whole. Management estimates. In preparing our financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at each balance sheet date and the reported amounts of our revenues and expenses during each reporting period. Actual results may differ significantly from previously estimated amounts under different assumptions or conditions. Principles of consolidation . Our consolidated financial statements include the accounts of CompX International Inc. and our wholly-owned subsidiaries. We eliminate all material intercompany accounts and balances. Fiscal year. Our fiscal year end is always the Sunday closest to December 31, and our operations are reported on a 52 or 53-week fiscal year. Each of the years ended December 31, 2014 and 2016 consisted of 52 weeks. The year ended December 31, 2015 consisted of 53 weeks. For presentation purposes, annual and quarterly information in the consolidated financial statements and accompanying notes are presented as ended on March 31, June 30, September 30 and December 31, as applicable. The actual date of our fiscal years ended December 31, 2014, 2015 and 2016 are December 28, 2014, January 3, 2016 and January 1, 2017, respectively. Cash and cash equivalents . We classify as cash and cash equivalents, bank time deposits and government and commercial notes and bills with original maturities of three months or less. Net sales . We record sales when products are shipped and title and other risks and rewards of ownership have passed to the customer. Amounts charged to customers for shipping and handling are not material. Sales are stated net of price, early payment and distributor discounts and volume rebates. We report any tax assessed by a governmental authority that we collect from our customers that is both imposed on and concurrent with our revenue producing activities (such as sales and use taxes) on a net basis (meaning we do not recognize these taxes either in our revenues or in our costs and expenses). Accounts receivable. We provide an allowance for doubtful accounts for known and estimated potential losses arising from our sales to customers based on a periodic review of these accounts. Inventories and cost of sales . We state inventories at the lower of cost or market, net of allowance for obsolete and slow-moving inventories. We generally base inventory costs for all inventory categories on average cost that approximates the first-in, first-out method. Inventories include the costs for raw materials, the cost to manufacture the raw materials into finished goods and overhead. Depending on the inventory’s stage of completion, our manufacturing costs can include the costs of packing and finishing, utilities, maintenance and depreciation, shipping and handling, and salaries and benefits associated with our manufacturing process. We allocate fixed manufacturing overhead costs based on normal production capacity. Unallocated overhead costs resulting from periods with abnormally low production levels are charged to expense as incurred. As inventory is sold to third parties, we recognize the cost of sales in the same period that the sale occurs. We periodically review our inventory for estimated obsolescence or instances when inventory is no longer marketable for its intended use, and we record any write-down, equal to the difference between the cost of inventory and its estimated net realizable value, based on assumptions about alternative uses, market conditions and other factors. Selling, general and administrative expenses; advertising costs. Selling, general and administrative expenses include costs related to marketing, sales, distribution, research and development and administrative functions such as accounting, treasury and finance, and includes costs for salaries and benefits, travel and entertainment, promotional materials and professional fees. We expense advertising and research and development costs as incurred. Advertising costs were not significant in 2014, 2015 or 2016. Goodwill. Goodwill represents the excess of cost over fair value of individual net assets acquired in business combinations. Goodwill is not subject to periodic amortization. We evaluate goodwill for impairment annually or when circumstances indicate the carrying value may not be recoverable. See Note 5. Property and equipment; depreciation expense . We state property and equipment, including purchased computer software for internal use, at cost. We compute depreciation of property and equipment for financial reporting purposes principally by the straight-line method over the estimated useful lives of 15 to 40 years for buildings and 3 to 20 years for equipment and software. We use accelerated depreciation methods for income tax purposes, as permitted. Depreciation expense was $3.5 million in each of 2014 and 2015 and $3.7 million in 2016. Upon sale or retirement of an asset, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is recognized in income currently. Expenditures for maintenance, repairs and minor renewals are expensed; expenditures for major improvements are capitalized. We perform impairment tests when events or changes in circumstances indicate the carrying value may not be recoverable. We consider all relevant factors. We perform the impairment test by comparing the estimated future undiscounted cash flows associated with the asset to the asset’s net carrying value to determine if impairment exists. Employee benefit plans. We maintain various defined contribution plans in which we make contributions based on matching or other formulas. Defined contribution plan expense approximated $2.3 million in 2014, $2.4 million in 2015 and $2.6 million in 2016. Self-insurance. We are partially self-insured for workers’ compensation and certain employee health benefits and self-insured for most environmental issues. We purchase coverage in order to limit our exposure to any significant levels of workers’ compensation or employee health benefit claims. We accrue self-insured losses based upon estimates of the aggregate liability for uninsured claims incurred using certain actuarial assumptions followed in the insurance industry and our own historical claims experience. Income taxes . We, and our parent NL, are members of the Contran Tax Group. We have been and currently are a part of the consolidated tax returns filed by Contran for U.S. federal purposes as well as for certain U.S. state jurisdictions. As a member of the Contran Tax Group, we are jointly and severally liable for the federal income tax liability of Contran and the other companies included in the Contran Tax Group for all periods in which we are included in the Contran Tax Group. See Note 10. As a member of the Contran Tax Group, we are a party to a tax sharing agreement which provides that we compute our provision for U.S. income taxes on a separate-company basis. Pursuant to the tax sharing agreement, we make payments to or receive payments from NL in amounts we would have paid to or received from the U.S. Internal Revenue Service or the applicable state tax authority had we not been a member of the Contran Tax Group. The separate company provisions and payments are computed using the tax elections made by Contran. We made net cash payments for income taxes to NL of $4.4 million in 2014, $4.7 million in 2015 and $4.6 million in 2016. Deferred income tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the income tax and financial reporting carrying amounts of assets and liabilities. Deferred income tax assets and liabilities for each tax-paying jurisdiction in which we operate are netted and presented as either a noncurrent deferred income tax asset or liability, as applicable. We periodically evaluate our deferred tax assets in the various taxing jurisdictions in which we operate and adjust any related valuation allowance based on the estimate of the amount of deferred tax assets which we believe do not meet the more-likely-than-not recognition criteria. See Notes 7 and 12. We record a reserve for uncertain tax positions for tax positions where we believe it is more-likely-than-not our position will not prevail with the applicable tax authorities. Our reserve for uncertain tax positions was nil in each of 2015 and 2016. |
Business and Geographic Segment
Business and Geographic Segments | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Business and Geographic Segments | Note 2 – Our operating segments are defined as components of our operations about which separate financial information is available that is regularly evaluated by our chief operating decision maker in determining how to allocate resources and in assessing performance. At December 31, 2016, we had two operating segments – Security Products and Marine Components. The Security Products segment, with a facility in South Carolina and a facility shared with Marine Components in Illinois, manufactures locking mechanisms and other security products for sale to the transportation, postal, office and institutional furniture, cabinetry, tool storage, healthcare and other industries. Our Marine Components segment, with a facility in Wisconsin and a facility shared with Security Products in Illinois, manufactures and distributes stainless steel exhaust systems, gauges and throttle controls primarily for recreational boats. The chief operating decision maker evaluates segment performance based on segment operating income, which is defined as income before income taxes and interest expense (if any), exclusive of certain general corporate income and expense items (primarily interest income) and certain non-recurring items (such as gains or losses on the disposition of business units and other long-lived assets outside the ordinary course of business). The accounting policies of the reportable operating segments are the same as those described in Note 1. Capital expenditures include additions to property and equipment, but exclude amounts attributable to business combinations. Segment assets are comprised of all assets attributable to the reportable segments. Corporate assets are not attributable to the operating segments and consist primarily of cash and cash equivalents. For geographic information, the point of origin (place of manufacture) for all net sales is the U.S., the point of destination for net sales is based on the location of the customer, and property and equipment are attributable to their physical location. Intersegment sales are not material. Years ended December 31, 2014 2015 2016 (In thousands) Net sales: Security Products $ 91,470 $ 95,614 $ 94,693 Marine Components 12,376 13,380 14,227 Total $ 103,846 $ 108,994 $ 108,920 Operating income (loss): Security Products $ 18,740 $ 18,585 $ 19,981 Marine Components 705 1,433 1,707 Corporate (5,838 ) (6,047 ) (6,114 ) Total operating income 13,607 13,971 15,574 Interest income 66 50 390 Income before income taxes $ 13,673 $ 14,021 $ 15,964 Depreciation and amortization: Security Products $ 2,771 $ 2,831 $ 3,025 Marine Components 732 695 663 Corporate 30 10 10 Total $ 3,533 $ 3,536 $ 3,698 Capital expenditures: Security Products $ 2,571 $ 3,805 $ 3,017 Marine Components 250 408 153 Corporate 4 5 5 Total $ 2,825 $ 4,218 $ 3,175 Net sales point of destination: United States $ 98,994 $ 103,737 $ 98,526 Canada 1,927 2,352 7,515 Mexico 1,124 1,334 1,315 Other 1,801 1,571 1,564 Total $ 103,846 $ 108,994 $ 108,920 December 31, 2014 2015 2016 (In thousands) Total assets: Security Products $ 70,244 $ 72,561 $ 73,345 Marine Components 9,951 12,761 12,209 Corporate and eliminations 48,896 49,470 58,426 Total $ 129,091 $ 134,792 $ 143,980 Net property and equipment for 2014, 2015 and 2016 is entirely located in the United States. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Note 3 – December 31, 2015 2016 (In thousands) Account receivable, net: Security Products $ 7,995 $ 9,329 Marine Components 852 1,088 Allowance for doubtful accounts (87 ) (70 ) Total accounts receivable, net $ 8,760 $ 10,347 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4 – December 31, 2015 2016 (In thousands) Raw materials: Security Products $ 2,426 $ 2,365 Marine Components 381 378 Total raw materials 2,807 2,743 Work-in-process: Security Products 7,732 7,387 Marine Components 1,614 1,601 Total work-in-process 9,346 8,988 Finished goods: Security Products 2,041 2,440 Marine Components 904 803 Total finished goods 2,945 3,243 Total inventories, net $ 15,098 $ 14,974 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 5 – We assign goodwill based on reporting unit Goodwill In 2014, 2015 and 2016, our goodwill was tested for impairment only in the third quarter of each year in connection with our annual testing date. No impairment was indicated as part of such annual reviews of goodwill. As permitted by GAAP, during 2014 and 2015 we used the qualitative assessment of ASC 350-20-35 for our annual impairment test and determined it was not necessary to perform the two-step quantitative goodwill impairment test. During 2016, we used the quantitative assessment of ASC 350-20-35 for our annual impairment test using discounted cash flows to determine the estimated fair value of our Security Products reporting unit. Such discounted cash flows are a Level 3 input as defined by ASC 820-10-35. Our gross goodwill at December 31, 2016 is $33.6 million. Prior to 2014, we recorded a $9.9 million goodwill impairment in our Marine Components segment resulting in a net consolidated carrying amount of $23.7 million. There have been no changes in the carrying amount of our goodwill during the past three years. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Note 6 – December 31, 2015 2016 (In thousands) Accounts payable $ 2,671 $ 2,614 Accrued liabilities: Employee benefits 7,652 7,644 Customer tooling 320 346 Taxes other than on income 253 300 Insurance 244 233 Professional 75 219 Sales rebates 96 140 Other 307 386 Total $ 11,618 $ 11,882 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7 – The provision for income taxes and the difference between such provision for income taxes and the amount that would be expected using the U.S. federal statutory income tax rate of 35% are presented below. All of our pre-tax income relates to operations in the United States. Years ended December 31, 2014 2015 2016 (In thousands) Provision for income taxes: Currently payable $ 4,544 $ 4,778 $ 5,621 Deferred income tax expense (benefit) 468 125 (114 ) Total $ 5,012 $ 4,903 $ 5,507 Expected tax expense, at the U.S. federal statutory income tax rate of 35% $ 4,787 $ 4,908 $ 5,588 State income taxes 604 387 388 Domestic production activities deduction (378 ) (415 ) (495 ) Valuation allowance (24 ) - - Other, net 23 23 26 Total $ 5,012 $ 4,903 $ 5,507 The components of the net deferred tax liability are summarized below. December 31, 2015 2016 (In thousands) Tax effect of temporary differences related to: Inventories $ 538 $ 507 Property and equipment (4,650 ) (4,468 ) Accrued liabilities and other deductible differences 45 110 Accrued employee benefits 1,695 1,592 Other deductible differences 4 4 Goodwill (2,625 ) (2,625 ) Other taxable differences (8 ) (7 ) Total deferred tax liability $ (5,001 ) $ (4,887 ) We previously had certain U.S. state net operating loss carryforwards, the benefit of which we had not recognized under the more-likely-than-not recognition criteria. We utilized all of the remaining state net operating loss carryforward in 2014. Our provision for income taxes includes a benefit of $24,000 in 2014 related to changes in the deferred tax asset valuation allowance associated with such carryforwards. We and Contran file income tax returns in U.S. federal and various state and local jurisdictions. Our income tax returns prior to 2013 are generally considered closed to examination by applicable tax authorities. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Note 8 – Shares of common stock Class A Class B Issued and Issued and Balance at December 31, 2013 2,397,107 10,000,000 Issued 7,000 - Balance at December 31, 2014 2,404,107 10,000,000 Issued 7,000 - Balance at December 31, 2015 2,411,107 10,000,000 Issued 8,000 - Balance at December 31, 2016 2,419,107 10,000,000 Class A and Class B common stock. The shares of Class A common stock and Class B common stock are identical in all respects, except for certain voting rights and certain conversion rights in respect of the shares of the Class B common stock. Holders of Class A common stock are entitled to one vote per share. NL, which holds all of the outstanding shares of Class B common stock, is entitled to one vote per share in all matters except for election of directors, for which NL is entitled to ten votes per share. Holders of all classes of common stock entitled to vote will vote together as a single class on all matters presented to the stockholders for their vote or approval, except as otherwise required by applicable law. Each share of Class A common stock and Class B common stock have an equal and ratable right to receive dividends to be paid from our assets when and if declared by the board of directors. In the event of the dissolution, liquidation or winding up of our operations, the holders of Class A common stock and Class B common stock will be entitled to share equally and ratably in the assets available for distribution after payments are made to our creditors and to the holders of any of our preferred stock that may be outstanding at the time. Shares of the Class A common stock have no conversion rights. Under certain conditions, shares of Class B common stock will convert, on a share-for-share basis, into shares of Class A common stock. Share repurchases and cancellations. Prior to 2014, our board of directors authorized various repurchases of shares of our Class A common stock in open market transactions, including block purchases, or in privately-negotiated transactions at unspecified prices and over an unspecified period of time. We may repurchase our common stock from time to time as market conditions permit. The stock repurchase program does not include specific price targets or timetables and may be suspended at any time. Depending on market conditions, we may terminate the program prior to its completion. We will generally use cash on hand to acquire the shares. Repurchased shares will be added to our treasury and cancelled. We made no treasury purchases during 2014, 2015 or 2016 and at December 31, 2016, approximately 678,000 shares were available for purchase under these authorizations. Incentive compensation plan. We have a share based incentive compensation plan pursuant to which an aggregate of up to 200,000 shares of our common stock can be awarded to non-employee members of our board of directors. All of the Class A common shares we issued in 2014, 2015 and 2016 were issued under this plan. At December 31, 2016, 173,000 shares were available for award under this plan. Dividends. We paid regular quarterly dividends of $.05 per share during 2014, 2015 and 2016. Declaration and payment of future dividends and the amount thereof, if any, is discretionary and dependent upon our results of operations, financial condition, cash requirements for our businesses, contractual requirements and restrictions and other factors deemed relevant by our board of directors. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 9 – We may be deemed to be controlled by Ms. Lisa Simmons and Ms. Serena Connelly. See Note 1. Corporations that may be deemed to be controlled by or affiliated with these individuals sometimes engage in (a) intercorporate transactions such as guarantees, management and expense sharing arrangements, shared fee arrangements, joint ventures, partnerships, loans, options, advances of funds on open account, and sales, leases and exchanges of assets, including securities issued by both related and unrelated parties and (b) common investment and acquisition strategies, business combinations, reorganizations, recapitalizations, securities repurchases, and purchases and sales (and other acquisitions and dispositions) of subsidiaries, divisions or other business units, which transactions have involved both related and unrelated parties and have included transactions that resulted in the acquisition by one related party of a publicly-held minority equity interest in another related party. We continuously consider, review and evaluate, and understand that Contran and related entities consider, review and evaluate such transactions. Depending upon the business, tax and other objectives then relevant, it is possible that we might be a party to one or more such transactions in the future. From time to time, we may have loans and advances outstanding between us and various related parties pursuant to term and demand notes. We generally enter into these loans and advances for cash management purposes. When we loan funds to related parties, we are generally able to earn a higher rate of return on the loan than we would earn if we invested the funds in other instruments. While certain of these loans may be of a lesser credit quality than cash equivalent instruments otherwise available to us, we believe we have evaluated the credit risks in the terms of the applicable loans. In this regard, in August, 2016 we entered into an unsecured revolving demand promissory note with Valhi whereby we have agreed to loan Valhi up to $40 million. Our loan to Valhi, as amended, bears interest at prime plus 1.00%, payable quarterly, with all principal due on demand, but in any event no earlier than December 31, 2018. The amount of our outstanding loans to Valhi at any time is at our discretion. At December 31, 2016, the outstanding principal balance receivable from Valhi under the promissory note was $27.4 million. Interest income (including unused commitment fees) on our loan to Valhi was $0.2 million in 2016. Under the terms of an Intercorporate Service Agreement (“ISA”) with Contran, employees of Contran perform certain management, tax planning, financial, legal and administrative services for us on a fee basis. Such fees are based upon estimates of time devoted to our affairs by individual Contran employees and the compensation of such persons. Because of the large number of companies affiliated with Contran, we believe we benefit from cost savings and economies of scale gained by not having certain management, financial and administrative staffs duplicated at each entity, thus allowing certain individuals to provide services to multiple companies but only be compensated by one entity. Fees pursuant to these agreements aggregated $3.0 million in each of 2014 and 2015 and $3.1 million in 2016. This agreement is renewed annually, and we expect to pay $2.8 million under the ISA during 2017. Contran and certain of its subsidiaries and affiliates, including us, purchase certain of their insurance policies as a group, with the costs of the jointly-owned policies being apportioned among the participating companies. Tall Pines Insurance Company (“Tall Pines”) and EWI RE, Inc. (“EWI”), each subsidiaries of Valhi, provide for or broker certain insurance policies for Contran and certain of its subsidiaries and affiliates, including us. Tall Pines purchases reinsurance from third-party insurance carriers with an A.M. Best Company rating of generally at least A-(Excellent) for substantially all of the risks it underwrites. Consistent with insurance industry practices, Tall Pines and EWI receive commissions from the insurance and reinsurance underwriters and/or assess fees for the policies that they provide or broker. The aggregate premiums we paid to Tall Pines and EWI were approximately $1.1 million in 2014, $1.6 million in 2015 and $1.7 million in 2016. These amounts principally represent payments for insurance premiums, which include premiums or fees paid to Tall Pines or fees paid to EWI. These amounts also include payments to insurers or reinsurers through EWI for the reimbursement of claims within our applicable deductible or retention ranges that such insurers or reinsurers paid to third parties on our behalf, as well as amounts for claims and risk management services and various other third-party fees and expenses incurred by the program. We expect that these relationships with Tall Pines and EWI will continue in 2017. With respect to certain of such jointly-owned insurance policies, it is possible that unusually large losses incurred by one or more insureds during a given policy period could leave the other participating companies without adequate coverage under that policy for the balance of the policy period. As a result, and in the event that the available coverage under a particular policy would become exhausted by one or more claims, Contran and certain of its subsidiaries and affiliates, including us, have entered into a loss sharing agreement under which any uninsured loss arising because the available coverage had been exhausted by one or more claims will be shared ratably amongst those entities that had submitted claims under the relevant policy . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10 – Legal proceedings . We are involved, from time to time, in various environmental, contractual, product liability, patent (or intellectual property), employment and other claims and disputes incidental to our business. We currently believe the disposition of all claims and disputes, individually or in the aggregate, should not have a material long-term adverse effect on our consolidated financial condition, results of operations or liquidity. Environmental matters and litigation . Our operations are governed by various federal, state and local environmental laws and regulations. Our policy is to comply with environmental laws and regulations at all of our facilities and to continually strive to improve environmental performance in association with applicable industry initiatives. We believe that our operations are in substantial compliance with applicable requirements of environmental laws. From time to time, we may be subject to environmental regulatory enforcement under various statutes, resolution of which typically involves the establishment of compliance programs. Income taxes. From time to time, we undergo examinations of our income tax returns, and tax authorities have or may propose tax deficiencies. We believe that we have adequately provided accruals for additional income taxes and related interest expense which may ultimately result from such examinations and we believe that the ultimate disposition of all such examinations should not have a material adverse effect on our consolidated financial position, results of operations or liquidity. We are a party to a tax sharing agreement with Contran and NL providing for the allocation of tax liabilities and tax payments as described in Note 1. Under applicable law, we, as well as every other member of the Contran Tax Group, are each jointly and severally liable for the aggregate federal income tax liability of Contran and the other companies included in the Contran Tax Group for all periods in which we are included in the Contran Tax Group. NL has agreed, however, to indemnify us for any liability for income taxes of the Contran Tax Group in excess of our tax liability in accordance with the tax sharing agreement. Concentration of credit risk . Our products are sold primarily in North America to original equipment manufacturers. Our ten largest customers accounted for approximately 47% of sales in 2014, 48% in 2015, and 46% in 2016. One customer of the Security Products segment accounted for 13% of consolidated sales in each of 2014 and 2015, and 14% in 2016. Another customer of the Security Products segment accounted for approximately 12% of consolidated sales in each of 2014 and 2015, and 11% in 2016. Rent expense was not significant in 2014, 2015 or 2016 and at December 31, 2016, future minimum rentals under non-cancellable operating leases having an initial or remaining term of more than one year were as follows: Years ending December 31, Amount (In thousands) 2017 $ 151 2018 135 2019 116 2020 104 2021 53 2022 and thereafter - Total $ 559 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Note 11 – The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure: December 31, December 31, 2015 2016 Carrying Fair Carrying Fair amount value amount value Cash and cash equivalents $ 52,347 $ 52,347 $ 33,153 $ 33,153 Accounts receivable, net 8,760 8,760 10,347 10,347 Accounts payable 2,671 2,671 2,614 2,614 Due to their near-term maturities, the carrying amounts of accounts receivable and accounts payable are considered equivalent to fair value. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2016 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Note 12 – Pending Adoption In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Note 13 – Quarter ended March 31 June 30 Sept. 30 Dec. 31 (In millions, except per share amounts) 2015: Net sales $ 27.9 $ 28.9 $ 26.5 $ 25.7 Gross profit 8.6 9.2 8.1 7.5 Operating income 3.7 4.3 3.4 2.6 Net income 2.4 2.8 2.2 1.7 Basic and diluted earnings per share $ .19 $ .23 $ .18 $ .13 2016: Net sales $ 27.1 $ 27.1 $ 28.4 $ 26.3 Gross profit 8.2 8.5 9.4 9.1 Operating income 3.4 3.7 4.5 4.0 Net income 2.2 2.4 3.0 2.9 Basic and diluted earnings per share $ .18 $ .20 $ .24 $ .23 The sum of the quarterly per share amounts may not equal the annual per share amounts due to relative changes in the weighted-average number of shares used in the per share computations. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Organization | Organization. We (NYSE MKT: CIX) are 87% owned by NL Industries, Inc. (NYSE: NL) at December 31, 2016. We manufacture and sell component products (security products and recreational marine components). At December 31, 2016, Valhi, Inc. (NYSE: VHI) owns 83% of NL’s outstanding common stock and a wholly-owned subsidiary of Contran Corporation owns 93% of Valhi’s outstanding common stock. All of Contran’s outstanding voting stock is held by a family trust established for the benefit of Lisa K. Simmons and Serena Simmons Connelly and their children, for which Ms. Simmons and Ms. Connelly are co-trustees, or is held directly by Ms. Simmons and Ms. Connelly or entities related to them. Consequently, Ms. Simmons and Ms. Connelly may be deemed to control Contran, Valhi, NL and us. Unless otherwise indicated, references in this report to “we,” “us,” or “our” refer to CompX International Inc. and its subsidiaries, taken as a whole. |
Management Estimates | Management estimates. In preparing our financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at each balance sheet date and the reported amounts of our revenues and expenses during each reporting period. Actual results may differ significantly from previously estimated amounts under different assumptions or conditions. |
Principles of Consolidation | Principles of consolidation . Our consolidated financial statements include the accounts of CompX International Inc. and our wholly-owned subsidiaries. We eliminate all material intercompany accounts and balances. |
Fiscal Year | Fiscal year. Our fiscal year end is always the Sunday closest to December 31, and our operations are reported on a 52 or 53-week fiscal year. Each of the years ended December 31, 2014 and 2016 consisted of 52 weeks. The year ended December 31, 2015 consisted of 53 weeks. For presentation purposes, annual and quarterly information in the consolidated financial statements and accompanying notes are presented as ended on March 31, June 30, September 30 and December 31, as applicable. The actual date of our fiscal years ended December 31, 2014, 2015 and 2016 are December 28, 2014, January 3, 2016 and January 1, 2017, respectively. |
Cash and Cash Equivalents | Cash and cash equivalents . We classify as cash and cash equivalents, bank time deposits and government and commercial notes and bills with original maturities of three months or less. |
Net Sales | Net sales . We record sales when products are shipped and title and other risks and rewards of ownership have passed to the customer. Amounts charged to customers for shipping and handling are not material. Sales are stated net of price, early payment and distributor discounts and volume rebates. We report any tax assessed by a governmental authority that we collect from our customers that is both imposed on and concurrent with our revenue producing activities (such as sales and use taxes) on a net basis (meaning we do not recognize these taxes either in our revenues or in our costs and expenses). |
Accounts Receivable | Accounts receivable. We provide an allowance for doubtful accounts for known and estimated potential losses arising from our sales to customers based on a periodic review of these accounts. |
Inventories and Cost of Sales | Inventories and cost of sales . We state inventories at the lower of cost or market, net of allowance for obsolete and slow-moving inventories. We generally base inventory costs for all inventory categories on average cost that approximates the first-in, first-out method. Inventories include the costs for raw materials, the cost to manufacture the raw materials into finished goods and overhead. Depending on the inventory’s stage of completion, our manufacturing costs can include the costs of packing and finishing, utilities, maintenance and depreciation, shipping and handling, and salaries and benefits associated with our manufacturing process. We allocate fixed manufacturing overhead costs based on normal production capacity. Unallocated overhead costs resulting from periods with abnormally low production levels are charged to expense as incurred. As inventory is sold to third parties, we recognize the cost of sales in the same period that the sale occurs. We periodically review our inventory for estimated obsolescence or instances when inventory is no longer marketable for its intended use, and we record any write-down, equal to the difference between the cost of inventory and its estimated net realizable value, based on assumptions about alternative uses, market conditions and other factors. |
Selling, General and Administrative Expenses; Advertising Costs | Selling, general and administrative expenses; advertising costs. Selling, general and administrative expenses include costs related to marketing, sales, distribution, research and development and administrative functions such as accounting, treasury and finance, and includes costs for salaries and benefits, travel and entertainment, promotional materials and professional fees. We expense advertising and research and development costs as incurred. Advertising costs were not significant in 2014, 2015 or 2016. |
Goodwill | Goodwill. Goodwill represents the excess of cost over fair value of individual net assets acquired in business combinations. Goodwill is not subject to periodic amortization. We e valuate goodwill for impairment annually or when circumstances indicate the carrying value may not be recoverable. See Note 5. |
Property and Equipment; Depreciation Expense | Property and equipment; depreciation expense . We state property and equipment, including purchased computer software for internal use, at cost. We compute depreciation of property and equipment for financial reporting purposes principally by the straight-line method over the estimated useful lives of 15 to 40 years for buildings and 3 to 20 years for equipment and software. We use accelerated depreciation methods for income tax purposes, as permitted. Depreciation expense was $3.5 million in each of 2014 and 2015 and $3.7 million in 2016. Upon sale or retirement of an asset, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is recognized in income currently. Expenditures for maintenance, repairs and minor renewals are expensed; expenditures for major improvements are capitalized. We perform impairment tests when events or changes in circumstances indicate the carrying value may not be recoverable. We consider all relevant factors. We perform the impairment test by comparing the estimated future undiscounted cash flows associated with the asset to the asset’s net carrying value to determine if impairment exists. |
Employee Benefit Plans | Employee benefit plans. We maintain various defined contribution plans in which we make contributions based on matching or other formulas. Defined contribution plan expense approximated $2.3 million in 2014, $2.4 million in 2015 and $2.6 million in 2016. |
Self-Insurance | Self-insurance. We are partially self-insured for workers’ compensation and certain employee health benefits and self-insured for most environmental issues. We purchase coverage in order to limit our exposure to any significant levels of workers’ compensation or employee health benefit claims. We accrue self-insured losses based upon estimates of the aggregate liability for uninsured claims incurred using certain actuarial assumptions followed in the insurance industry and our own historical claims experience. |
Income Taxes | Income taxes . We, and our parent NL, are members of the Contran Tax Group. We have been and currently are a part of the consolidated tax returns filed by Contran for U.S. federal purposes as well as for certain U.S. state jurisdictions. As a member of the Contran Tax Group, we are jointly and severally liable for the federal income tax liability of Contran and the other companies included in the Contran Tax Group for all periods in which we are included in the Contran Tax Group. See Note 10. As a member of the Contran Tax Group, we are a party to a tax sharing agreement which provides that we compute our provision for U.S. income taxes on a separate-company basis. Pursuant to the tax sharing agreement, we make payments to or receive payments from NL in amounts we would have paid to or received from the U.S. Internal Revenue Service or the applicable state tax authority had we not been a member of the Contran Tax Group. The separate company provisions and payments are computed using the tax elections made by Contran. We made net cash payments for income taxes to NL of $4.4 million in 2014, $4.7 million in 2015 and $4.6 million in 2016. Deferred income tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the income tax and financial reporting carrying amounts of assets and liabilities. Deferred income tax assets and liabilities for each tax-paying jurisdiction in which we operate are netted and presented as either a noncurrent deferred income tax asset or liability, as applicable. We periodically evaluate our deferred tax assets in the various taxing jurisdictions in which we operate and adjust any related valuation allowance based on the estimate of the amount of deferred tax assets which we believe do not meet the more-likely-than-not recognition criteria. See Notes 7 and 12. We record a reserve for uncertain tax positions for tax positions where we believe it is more-likely-than-not our position will not prevail with the applicable tax authorities. Our reserve for uncertain tax positions was nil in each of 2015 and 2016. |
Business and Geographic Segme21
Business and Geographic Segments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Business Segment Information | Years ended December 31, 2014 2015 2016 (In thousands) Net sales: Security Products $ 91,470 $ 95,614 $ 94,693 Marine Components 12,376 13,380 14,227 Total $ 103,846 $ 108,994 $ 108,920 Operating income (loss): Security Products $ 18,740 $ 18,585 $ 19,981 Marine Components 705 1,433 1,707 Corporate (5,838 ) (6,047 ) (6,114 ) Total operating income 13,607 13,971 15,574 Interest income 66 50 390 Income before income taxes $ 13,673 $ 14,021 $ 15,964 Depreciation and amortization: Security Products $ 2,771 $ 2,831 $ 3,025 Marine Components 732 695 663 Corporate 30 10 10 Total $ 3,533 $ 3,536 $ 3,698 Capital expenditures: Security Products $ 2,571 $ 3,805 $ 3,017 Marine Components 250 408 153 Corporate 4 5 5 Total $ 2,825 $ 4,218 $ 3,175 |
Business Segment Information by Geographical Areas | Net sales point of destination: United States $ 98,994 $ 103,737 $ 98,526 Canada 1,927 2,352 7,515 Mexico 1,124 1,334 1,315 Other 1,801 1,571 1,564 Total $ 103,846 $ 108,994 $ 108,920 December 31, 2014 2015 2016 (In thousands) Total assets: Security Products $ 70,244 $ 72,561 $ 73,345 Marine Components 9,951 12,761 12,209 Corporate and eliminations 48,896 49,470 58,426 Total $ 129,091 $ 134,792 $ 143,980 Net property and equipment for 2014, 2015 and 2016 is entirely located in the United States. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, Net | December 31, 2015 2016 (In thousands) Account receivable, net: Security Products $ 7,995 $ 9,329 Marine Components 852 1,088 Allowance for doubtful accounts (87 ) (70 ) Total accounts receivable, net $ 8,760 $ 10,347 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | December 31, 2015 2016 (In thousands) Raw materials: Security Products $ 2,426 $ 2,365 Marine Components 381 378 Total raw materials 2,807 2,743 Work-in-process: Security Products 7,732 7,387 Marine Components 1,614 1,601 Total work-in-process 9,346 8,988 Finished goods: Security Products 2,041 2,440 Marine Components 904 803 Total finished goods 2,945 3,243 Total inventories, net $ 15,098 $ 14,974 |
Accounts Payable and Accrued 24
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | December 31, 2015 2016 (In thousands) Accounts payable $ 2,671 $ 2,614 Accrued liabilities: Employee benefits 7,652 7,644 Customer tooling 320 346 Taxes other than on income 253 300 Insurance 244 233 Professional 75 219 Sales rebates 96 140 Other 307 386 Total $ 11,618 $ 11,882 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of Pre-tax Income and Provision for Income Taxes | The provision for income taxes and the difference between such provision for income taxes and the amount that would be expected using the U.S. federal statutory income tax rate of 35% are presented below. All of our pre-tax income relates to operations in the United States. Years ended December 31, 2014 2015 2016 (In thousands) Provision for income taxes: Currently payable $ 4,544 $ 4,778 $ 5,621 Deferred income tax expense (benefit) 468 125 (114 ) Total $ 5,012 $ 4,903 $ 5,507 Expected tax expense, at the U.S. federal statutory income tax rate of 35% $ 4,787 $ 4,908 $ 5,588 State income taxes 604 387 388 Domestic production activities deduction (378 ) (415 ) (495 ) Valuation allowance (24 ) - - Other, net 23 23 26 Total $ 5,012 $ 4,903 $ 5,507 |
Components of Net Deferred Tax Liability | The components of the net deferred tax liability are summarized below. December 31, 2015 2016 (In thousands) Tax effect of temporary differences related to: Inventories $ 538 $ 507 Property and equipment (4,650 ) (4,468 ) Accrued liabilities and other deductible differences 45 110 Accrued employee benefits 1,695 1,592 Other deductible differences 4 4 Goodwill (2,625 ) (2,625 ) Other taxable differences (8 ) (7 ) Total deferred tax liability $ (5,001 ) $ (4,887 ) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Summary of Stockholders' Equity | Shares of common stock Class A Class B Issued and Issued and Balance at December 31, 2013 2,397,107 10,000,000 Issued 7,000 - Balance at December 31, 2014 2,404,107 10,000,000 Issued 7,000 - Balance at December 31, 2015 2,411,107 10,000,000 Issued 8,000 - Balance at December 31, 2016 2,419,107 10,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rentals under Non-Cancellable Operating Leases | Rent expense was not significant in 2014, 2015 or 2016 and at December 31, 2016, future minimum rentals under non-cancellable operating leases having an initial or remaining term of more than one year were as follows: Years ending December 31, Amount (In thousands) 2017 $ 151 2018 135 2019 116 2020 104 2021 53 2022 and thereafter - Total $ 559 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Estimated Fair Value of Financial Instruments | The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure: December 31, December 31, 2015 2016 Carrying Fair Carrying Fair amount value amount value Cash and cash equivalents $ 52,347 $ 52,347 $ 33,153 $ 33,153 Accounts receivable, net 8,760 8,760 10,347 10,347 Accounts payable 2,671 2,671 2,614 2,614 |
Quarterly Results of Operatio29
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations | Quarter ended March 31 June 30 Sept. 30 Dec. 31 (In millions, except per share amounts) 2015: Net sales $ 27.9 $ 28.9 $ 26.5 $ 25.7 Gross profit 8.6 9.2 8.1 7.5 Operating income 3.7 4.3 3.4 2.6 Net income 2.4 2.8 2.2 1.7 Basic and diluted earnings per share $ .19 $ .23 $ .18 $ .13 2016: Net sales $ 27.1 $ 27.1 $ 28.4 $ 26.3 Gross profit 8.2 8.5 9.4 9.1 Operating income 3.4 3.7 4.5 4.0 Net income 2.2 2.4 3.0 2.9 Basic and diluted earnings per share $ .18 $ .20 $ .24 $ .23 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Significant Accounting Policies [Line Items] | |||
Depreciation | $ 3.7 | $ 3.5 | $ 3.5 |
Defined Contribution Plan, Cost Recognized | 2.6 | 2.4 | 2.3 |
Income tax payments to NL | $ 4.6 | $ 4.7 | $ 4.4 |
Minimum | Building | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful lives | 15 years | ||
Minimum | Equipment and software | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful lives | 3 years | ||
Maximum | Building | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful lives | 40 years | ||
Maximum | Equipment and software | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful lives | 20 years | ||
NL Industries | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Percentage of ownership held by parent company | 87.00% | ||
NL Industries | Valhi Inc | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Percentage of ownership held by parent company | 83.00% | ||
Contran Corporation | Valhi Inc | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Percentage of ownership held by parent company | 93.00% |
Business and Geographic Segme31
Business and Geographic Segments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Business and Geographic Segme32
Business and Geographic Segments - Schedule of Business Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net sales: | |||||||||||
Total net sales | $ 26,300 | $ 28,400 | $ 27,100 | $ 27,100 | $ 25,700 | $ 26,500 | $ 28,900 | $ 27,900 | $ 108,920 | $ 108,994 | $ 103,846 |
Operating income (loss): | |||||||||||
Total operating income | $ 4,000 | $ 4,500 | $ 3,700 | $ 3,400 | $ 2,600 | $ 3,400 | $ 4,300 | $ 3,700 | 15,574 | 13,971 | 13,607 |
Interest income | 390 | 50 | 66 | ||||||||
Income before income taxes | 15,964 | 14,021 | 13,673 | ||||||||
Depreciation and amortization | 3,698 | 3,536 | 3,533 | ||||||||
Total capital expenditure | 3,175 | 4,218 | 2,825 | ||||||||
Operating Segments | Security Products | |||||||||||
Net sales: | |||||||||||
Total net sales | 94,693 | 95,614 | 91,470 | ||||||||
Operating income (loss): | |||||||||||
Total operating income | 19,981 | 18,585 | 18,740 | ||||||||
Depreciation and amortization | 3,025 | 2,831 | 2,771 | ||||||||
Total capital expenditure | 3,017 | 3,805 | 2,571 | ||||||||
Operating Segments | Marine Components | |||||||||||
Net sales: | |||||||||||
Total net sales | 14,227 | 13,380 | 12,376 | ||||||||
Operating income (loss): | |||||||||||
Total operating income | 1,707 | 1,433 | 705 | ||||||||
Depreciation and amortization | 663 | 695 | 732 | ||||||||
Total capital expenditure | 153 | 408 | 250 | ||||||||
Corporate | |||||||||||
Operating income (loss): | |||||||||||
Total operating income | (6,114) | (6,047) | (5,838) | ||||||||
Depreciation and amortization | 10 | 10 | 30 | ||||||||
Total capital expenditure | $ 5 | $ 5 | $ 4 |
Business and Geographic Segme33
Business and Geographic Segments - Business Segment Information by Geographical Areas (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net sales: | |||||||||||
Net sales | $ 26,300 | $ 28,400 | $ 27,100 | $ 27,100 | $ 25,700 | $ 26,500 | $ 28,900 | $ 27,900 | $ 108,920 | $ 108,994 | $ 103,846 |
Total assets | 143,980 | 134,792 | 143,980 | 134,792 | 129,091 | ||||||
Operating Segments | Security Products | |||||||||||
Net sales: | |||||||||||
Net sales | 94,693 | 95,614 | 91,470 | ||||||||
Total assets | 73,345 | 72,561 | 73,345 | 72,561 | 70,244 | ||||||
Operating Segments | Marine Components | |||||||||||
Net sales: | |||||||||||
Net sales | 14,227 | 13,380 | 12,376 | ||||||||
Total assets | 12,209 | 12,761 | 12,209 | 12,761 | 9,951 | ||||||
Corporate and eliminations | |||||||||||
Net sales: | |||||||||||
Total assets | $ 58,426 | $ 49,470 | 58,426 | 49,470 | 48,896 | ||||||
Point Of Destination | United States | |||||||||||
Net sales: | |||||||||||
Net sales | 98,526 | 103,737 | 98,994 | ||||||||
Point Of Destination | Canada | |||||||||||
Net sales: | |||||||||||
Net sales | 7,515 | 2,352 | 1,927 | ||||||||
Point Of Destination | Mexico | |||||||||||
Net sales: | |||||||||||
Net sales | 1,315 | 1,334 | 1,124 | ||||||||
Point Of Destination | Other | |||||||||||
Net sales: | |||||||||||
Net sales | $ 1,564 | $ 1,571 | $ 1,801 |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of Accounts Receivable, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts Notes And Loans Receivable [Line Items] | ||
Allowance for doubtful accounts | $ (70) | $ (87) |
Total accounts receivable, net | 10,347 | 8,760 |
Security Products | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accounts receivable, gross | 9,329 | 7,995 |
Marine Components | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accounts receivable, gross | $ 1,088 | $ 852 |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory [Line Items] | ||
Total raw materials | $ 2,743 | $ 2,807 |
Total work-in-process | 8,988 | 9,346 |
Total finished goods | 3,243 | 2,945 |
Total inventories, net | 14,974 | 15,098 |
Security Products | ||
Inventory [Line Items] | ||
Total raw materials | 2,365 | 2,426 |
Total work-in-process | 7,387 | 7,732 |
Total finished goods | 2,440 | 2,041 |
Marine Components | ||
Inventory [Line Items] | ||
Total raw materials | 378 | 381 |
Total work-in-process | 1,601 | 1,614 |
Total finished goods | $ 803 | $ 904 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | Sep. 30, 2008 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill [Line Items] | ||||
Goodwill impairment charge | $ 0 | $ 0 | $ 0 | |
Goodwill, gross | 33,600,000 | |||
Goodwill | $ 23,742,000 | $ 23,742,000 | ||
Marine Components | ||||
Goodwill [Line Items] | ||||
Goodwill impairment charge | $ 9,900,000 |
Accounts Payable and Accrued 37
Accounts Payable and Accrued Liabilities - Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Payables And Accruals [Abstract] | ||
Accounts payable | $ 2,614 | $ 2,671 |
Accrued liabilities: | ||
Employee benefits | 7,644 | 7,652 |
Customer tooling | 346 | 320 |
Taxes other than on income | 300 | 253 |
Insurance | 233 | 244 |
Professional | 219 | 75 |
Sales rebates | 140 | 96 |
Other | 386 | 307 |
Total | $ 11,882 | $ 11,618 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Income tax benefit related to changes in deferred tax asset valuation allowances | $ 24 |
Income Taxes - Components of Pr
Income Taxes - Components of Pre-tax Income and Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Provision for income taxes: | |||
Currently payable | $ 5,621 | $ 4,778 | $ 4,544 |
Deferred income tax expense (benefit) | (114) | 125 | 468 |
Provision for income taxes | 5,507 | 4,903 | 5,012 |
Expected tax expense, at the U.S. federal statutory income tax rate of 35% | 5,588 | 4,908 | 4,787 |
State income taxes | 388 | 387 | 604 |
Domestic production activities deduction | (495) | (415) | (378) |
Valuation allowance | (24) | ||
Other, net | 26 | 23 | 23 |
Provision for income taxes | $ 5,507 | $ 4,903 | $ 5,012 |
Income Taxes - Components of 40
Income Taxes - Components of Pre-tax Income and Provision for Income Taxes (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Liability (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Inventories | $ 507 | $ 538 |
Property and equipment | (4,468) | (4,650) |
Accrued liabilities and other deductible differences | 110 | 45 |
Accrued employee benefits | 1,592 | 1,695 |
Other deductible differences | 4 | 4 |
Goodwill | (2,625) | (2,625) |
Other taxable differences | (7) | (8) |
Total deferred tax liability | $ (4,887) | $ (5,001) |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stockholders' Equity (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Class A Common Stock | |||
Class Of Stock [Line Items] | |||
Common stock, shares outstanding, beginning balance | 2,411,107 | 2,404,107 | 2,397,107 |
Issued | 8,000 | 7,000 | 7,000 |
Common stock, shares outstanding, ending balance | 2,419,107 | 2,411,107 | 2,404,107 |
Class B Common Stock | |||
Class Of Stock [Line Items] | |||
Common stock, shares outstanding, beginning balance | 10,000,000 | 10,000,000 | 10,000,000 |
Common stock, shares outstanding, ending balance | 10,000,000 | 10,000,000 | 10,000,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2016Vote$ / sharesshares | Dec. 31, 2015$ / sharesshares | Dec. 31, 2014$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Treasury stock purchases | 0 | 0 | 0 |
Shares available for purchase | 678,000 | ||
Common Stock Dividend declared by directors | $ / shares | $ 0.05 | $ 0.05 | $ 0.05 |
2013 Director Stock Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares available for award | 173,000 | ||
Non-Employee | 2013 Director Stock Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock shares authorized to be issued under the plan | 200,000 | ||
Class A Common Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock, vote per share | Vote | 1 | ||
Class B Common Stock | NL Industries | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock, vote per share | Vote | 1 | ||
Common stock, vote per share | Vote | 10 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | Aug. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | |||||
Note receivable from affiliate | $ 27,400,000 | ||||
Contran Corporation | Intercorporate Services Agreements Fees | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction expense | 3,100,000 | $ 3,000,000 | $ 3,000,000 | ||
Contran Corporation | Intercorporate Services Agreements Fees | Scenario Forecast | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction expense | $ 2,800,000 | ||||
Tall Pines Insurance Company And EWI RE Inc | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction expense | 1,700,000 | $ 1,600,000 | $ 1,100,000 | ||
Unsecured Revolving Demand Promissory | Valhi Inc | |||||
Related Party Transaction [Line Items] | |||||
Maximum loan amount | $ 40,000,000 | ||||
Interest rate on loans repayment | 1.00% | ||||
Principal due on demand effective date | Dec. 31, 2018 | ||||
Note receivable from affiliate | 27,400,000 | ||||
Interest income including unused commitment fees on our loan | $ 200,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - Customer | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | |||
Number of customers accounted for sale | 10 | ||
Customer Concentration Risk | Consolidated Sales | Ten Largest Customers | |||
Concentration Risk [Line Items] | |||
Sales Revenue, percentage | 46.00% | 48.00% | 47.00% |
Customer Concentration Risk | Consolidated Sales | Customer One | Security Products | |||
Concentration Risk [Line Items] | |||
Sales Revenue, percentage | 14.00% | 13.00% | 13.00% |
Customer Concentration Risk | Consolidated Sales | Customer Two | Security Products | |||
Concentration Risk [Line Items] | |||
Sales Revenue, percentage | 11.00% | 12.00% | 12.00% |
Commitments and Contingencies46
Commitments and Contingencies - Schedule of Future Minimum Rentals under Non-Cancellable Operating Leases (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2,017 | $ 151 |
2,018 | 135 |
2,019 | 116 |
2,020 | 104 |
2,021 | 53 |
Total | $ 559 |
Financial Instruments - Carryin
Financial Instruments - Carrying Value and Estimated Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value Disclosures [Abstract] | ||||
Cash and cash equivalents, Carrying amount | $ 33,153 | $ 52,347 | $ 45,570 | $ 38,753 |
Accounts receivable, net, Carrying amount | 10,347 | 8,760 | ||
Accounts payable, Carrying amount | 2,614 | 2,671 | ||
Cash and cash equivalents, Fair value | 33,153 | 52,347 | ||
Accounts receivable, net, Fair value | 10,347 | 8,760 | ||
Accounts payable, Fair value | $ 2,614 | $ 2,671 |
Quarterly Results of Operatio48
Quarterly Results of Operations (Unaudited) - Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 26,300 | $ 28,400 | $ 27,100 | $ 27,100 | $ 25,700 | $ 26,500 | $ 28,900 | $ 27,900 | $ 108,920 | $ 108,994 | $ 103,846 |
Gross profit | 9,100 | 9,400 | 8,500 | 8,200 | 7,500 | 8,100 | 9,200 | 8,600 | 35,167 | 33,401 | 32,248 |
Operating income | 4,000 | 4,500 | 3,700 | 3,400 | 2,600 | 3,400 | 4,300 | 3,700 | 15,574 | 13,971 | 13,607 |
Net income | $ 2,900 | $ 3,000 | $ 2,400 | $ 2,200 | $ 1,700 | $ 2,200 | $ 2,800 | $ 2,400 | $ 10,457 | $ 9,118 | $ 8,661 |
Basic and diluted earnings per share | $ 0.23 | $ 0.24 | $ 0.20 | $ 0.18 | $ 0.13 | $ 0.18 | $ 0.23 | $ 0.19 | $ 0.84 | $ 0.73 | $ 0.70 |