Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 20, 2020 | Jun. 28, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CIX | ||
Entity Registrant Name | COMPX INTERNATIONAL INC | ||
Entity Central Index Key | 0001049606 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity File Number | 1-13905 | ||
Entity Tax Identification Number | 57-0981653 | ||
Entity Address, Address Line One | 5430 LBJ Freeway | ||
Entity Address, Address Line Two | Suite 1700 | ||
Entity Address, Address Line Three | Three Lincoln Centre | ||
Entity Address, City or Town | Dallas | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75240 | ||
City Area Code | 972 | ||
Local Phone Number | 448-1400 | ||
Entity Incorporation, State or Country Code | DE | ||
Title of 12(b) Security | Class A common stock | ||
Security Exchange Name | NYSEAMER | ||
Entity Common Stock, Shares Outstanding | 12,443,057 | ||
Entity Public Float | $ 28.3 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | The information required by Part III is incorporated by reference from the Registrant’s definitive proxy statement to be filed with the Commission pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this report. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 63,255 | $ 45,414 |
Accounts receivable, net | 11,870 | 12,140 |
Inventories | 18,348 | 17,102 |
Prepaid expenses and other | 1,624 | 1,629 |
Total current assets | 95,097 | 76,285 |
Other assets: | ||
Note receivable from affiliate | 28,100 | 34,000 |
Goodwill | 23,742 | 23,742 |
Other noncurrent | 590 | 590 |
Total other assets | 52,432 | 58,332 |
Property and equipment: | ||
Land | 4,940 | 4,940 |
Buildings | 23,047 | 22,835 |
Equipment | 67,718 | 67,073 |
Construction in progress | 1,002 | 603 |
Gross property and equipment | 96,707 | 95,451 |
Less accumulated depreciation | 65,692 | 63,639 |
Net property and equipment | 31,015 | 31,812 |
Total assets | 178,544 | 166,429 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 12,078 | 12,504 |
Income taxes payable to affiliate | 984 | 1,165 |
Total current liabilities | 13,062 | 13,669 |
Noncurrent liabilities - | ||
Deferred income taxes | 3,287 | 3,198 |
Stockholders' equity: | ||
Preferred stock | ||
Additional paid-in capital | 55,869 | 55,751 |
Retained earnings | 106,202 | 93,687 |
Total stockholders' equity | 162,195 | 149,562 |
Total liabilities and stockholders’ equity | 178,544 | 166,429 |
Commitments and contingencies (Note 10) | ||
Class A Common Stock | ||
Stockholders' equity: | ||
Common stock | 124 | 124 |
Total stockholders' equity | $ 124 | $ 124 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
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 | 12,443,057 | 12,435,557 |
Common stock, shares outstanding | 12,443,057 | 12,435,557 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 124,243 | $ 118,217 | $ 112,035 |
Cost of sales | 85,280 | 79,946 | 77,210 |
Gross margin | 38,963 | 38,271 | 34,825 |
Selling, general and administrative expense | 21,297 | 20,460 | 19,590 |
Operating income | 17,666 | 17,811 | 15,235 |
Interest income | 3,270 | 2,664 | 1,929 |
Income before income taxes | 20,936 | 20,475 | 17,164 |
Provision for income taxes | 4,938 | 5,150 | 3,961 |
Net income | $ 15,998 | $ 15,325 | $ 13,203 |
Basic and diluted earnings per common share | $ 1.29 | $ 1.23 | $ 1.06 |
Basic and diluted weighted average shares outstanding | 12,440 | 12,432 | 12,423 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Class A Common Stock | Class B Common Stock | Additional paid-in Capital | Retained Earnings |
Balance at Dec. 31, 2016 | $ 125,770 | $ 24 | $ 100 | $ 55,515 | $ 70,131 |
Net income | 13,203 | 13,203 | |||
Cash dividends | (2,485) | (2,485) | |||
Issuance of common stock | 97 | 97 | |||
Balance at Dec. 31, 2017 | 136,585 | 24 | 100 | 55,612 | 80,849 |
Net income | 15,325 | 15,325 | |||
Share conversion | 100 | $ (100) | |||
Cash dividends | (2,487) | (2,487) | |||
Issuance of common stock | 139 | 139 | |||
Balance at Dec. 31, 2018 | 149,562 | 124 | 55,751 | 93,687 | |
Net income | 15,998 | 15,998 | |||
Cash dividends | (3,483) | (3,483) | |||
Issuance of common stock | 118 | 118 | |||
Balance at Dec. 31, 2019 | $ 162,195 | $ 124 | $ 55,869 | $ 106,202 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Stockholders Equity [Abstract] | |||
Cash dividends per share | $ 0.28 | $ 0.20 | $ 0.20 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 15,998 | $ 15,325 | $ 13,203 |
Depreciation and amortization | 3,684 | 3,454 | 3,673 |
Deferred income taxes | 89 | 86 | (1,775) |
Other, net | 458 | 289 | 181 |
Change in assets and liabilities: | |||
Accounts receivable, net | 250 | (1,709) | (115) |
Inventories, net | (1,439) | (1,846) | (473) |
Accounts payable and accrued liabilities | (399) | 1,619 | (962) |
Accounts with affiliates | (203) | 152 | (971) |
Other, net | 27 | (207) | (178) |
Net cash provided by operating activities | 18,465 | 17,163 | 12,583 |
Cash flows from investing activities: | |||
Capital expenditures | (3,166) | (3,117) | (2,796) |
Proceeds from sale of fixed assets, net | 125 | ||
Note receivable from affiliate: | |||
Collections | 40,800 | 51,000 | 41,300 |
Advances | (34,900) | (46,800) | (52,100) |
Net cash provided by (used in) investing activities | 2,859 | 1,083 | (13,596) |
Cash flows from financing activities - | |||
Dividends paid | (3,483) | (2,487) | (2,485) |
Net increase (decrease) | 17,841 | 15,759 | (3,498) |
Balance at beginning of year | 45,414 | 29,655 | 33,153 |
Balance at end of year | 63,255 | 45,414 | 29,655 |
Supplemental disclosures - | |||
Cash paid for income taxes | $ 5,027 | $ 4,370 | $ 6,709 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 – Organization. We (NYSE American: CIX) are 86% owned by NL Industries, Inc. (NYSE: NL) at December 31, 2019. We manufacture and sell component products (security products and recreational marine components). At December 31, 2019, Valhi, Inc. (NYSE: VHI) owns 83% of NL’s outstanding common stock and a wholly-owned subsidiary of Contran Corporation owns 92% of Valhi’s outstanding common stock. A majority of Contran’s outstanding voting stock is held directly by Lisa K. Simmons and Serena Simmons Connelly and various family trusts established for the benefit of Ms. Simmons and Ms. Connelly and their children and for which Ms. Simmons or Ms. Connelly, as applicable, serves as trustee. In addition, each of Ms. Simmons and Ms. Connelly serves as co-chair of the Contran board of directors. The remainder of Contran’s outstanding voting stock is held by another trust (the “Family Trust”), which was established for the benefit of Ms. Simmons and Ms. Connelly and their children and for which a third-party financial institution serves as trustee. Consequently, at December 31, 2019, Ms. Simmons, Ms. Connelly and the Family Trust may be deemed to control Contran, and therefore may be deemed to indirectly control the wholly-owned subsidiary of 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, 2017, 2018 and 2019 consisted of 52 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 are December 31, 2017, December 30, 2018, and December 29, 2019, respectively. Cash and cash equivalents . We classify bank time deposits and government and commercial notes and bills with original maturities of three months or less as cash equivalents. Net sales . Our sales involve single performance obligations to ship our products pursuant to customer purchase orders. In some cases, the purchase order is supported by an underlying master sales agreement, but our purchase order verification notice generally evidences the contract with our customer by specifying the key terms of product and quantity ordered, price and delivery and payment terms. Effective January 1, 2018 with the adoption of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (see Note 12) , we record revenue when we satisfy our performance obligations to our customers by transferring control of our products to them, which generally occurs at point of shipment or upon delivery. Such transfer of control is also evidenced by transfer of legal title and other risks and rewards of ownership (giving the customer the ability to direct the use of, and obtain substantially all of the benefits of, the product), and our customers becoming obligated to pay us and such payment being probable of occurring. In certain arrangements we provide shipping and handling activities after the transfer of control to our customer (e.g. when control transfers prior to delivery). In such arrangements shipping and handling are considered fulfillment activities, and accordingly, such costs are accrued when the related revenue is recognized. Prior to the adoption of ASU 2014-09, we recorded sales when our products were shipped and title and other risks and rewards of ownership had passed to the customer, which was generally at the time of shipment (although in some instances shipping terms were FOB destination point, for which we did not recognize revenue until the product was received by our customers). Revenue is recorded in an amount that reflects the net consideration we expect to receive in exchange for our products. Prices for our products are based on terms specified in published list prices and purchase orders, which generally do not include financing components, noncash consideration or consideration paid to our customers. As our standard payment terms are less than one year, we have elected the practical expedient under ASC 606 and we have not assessed whether a contract has a significant financing component. We state sales net of price, early payment and distributor discounts as well as volume rebates (collectively, variable consideration). Variable consideration, to the extent present, is not material and is recognized as the amount to which we are most-likely to be entitled, using all information (historical, current and forecasted) that is reasonably available to us, and only to the extent that a significant reversal in the amount of the cumulative revenue recognized is not probable of occurring in a future period. Differences, if any, between estimates of the amount of variable consideration to which we will be entitled and the actual amount of such variable consideration have not been material in the past. 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, use, value added and excise taxes) on a net basis (meaning we do not recognize these taxes either in our revenues or in our costs and expenses). Frequently, we receive orders for products to be delivered over dates that may extend across reporting periods. We invoice for each delivery upon shipment and recognize revenue for each distinct shipment when all sales recognition criteria for that shipment have been satisfied. As scheduled delivery dates for these orders are within a one year period, under the optional exemption provided by ASC 606, we do not disclose sales allocated to future shipments of partially completed contracts. ASU 2014-09 requires a disaggregation of our sales into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. We have determined such disaggregation of our sales is the same as the disclosure of our sales by segment. See Note 2. 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 net realizable value. We record a provision 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 include 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 2017, 2018 or 2019. 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. 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. Leases. We enter into various arrangements (or leases) that convey the rights to use and control identified underlying assets for a period of time in exchange for consideration. We lease various facilities and equipment. From time to time, we may also enter into an arrangement in which the right to use and control an identified underlying asset is embedded in another type of contract. We determine if an arrangement is a lease (including leases embedded in another type of contract) at inception. All of our leases are classified as operating leases under ASC Topic 842 Leases . Operating leases are not material. 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 $2.4 million in 2017, $3.0 million in 2018 and $3.2 million in 2019. 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 significant 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 $6.7 million in 2017, $4.3 million in 2018 and $5.0 million in 2019. 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 10. 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. We did not have a reserve for uncertain tax positions in 2017, 2018 or 2019. |
Business and Geographic Segment
Business and Geographic Segments | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019, we had two reportable 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, throttle controls, wake enhancement systems, trim tabs and related hardware and accessories primarily for performance and ski/wakeboard boats. The chief operating decision maker evaluates segment performance based on segment operating income, which is defined as income before income taxes, 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 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, cash equivalents and note receivable from affiliate. 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, 2017 2018 2019 (In thousands) Net sales: Security Products $ 96,600 $ 98,383 $ 99,328 Marine Components 15,435 19,834 24,915 Total net sales $ 112,035 $ 118,217 $ 124,243 Operating income (loss): Security Products $ 19,182 $ 21,947 $ 21,013 Marine Components 1,342 2,738 3,644 Corporate (5,289 ) (6,874 ) (6,991 ) Total operating income 15,235 17,811 17,666 Interest income 1,929 2,664 3,270 Income before taxes $ 17,164 $ 20,475 $ 20,936 Depreciation and amortization: Security Products $ 3,072 $ 2,914 $ 3,056 Marine Components 591 535 627 Corporate 10 5 1 Total $ 3,673 $ 3,454 $ 3,684 Years ended December 31, 2017 2018 2019 (In thousands) Capital expenditures: Security Products $ 2,389 $ 2,126 $ 1,530 Marine Components 405 991 1,636 Corporate 2 - - Total $ 2,796 $ 3,117 $ 3,166 Net sales point of destination: United States $ 103,646 $ 108,773 $ 114,186 Canada 5,353 6,436 7,257 Mexico 1,486 1,438 922 Other 1,550 1,570 1,878 Total $ 112,035 $ 118,217 $ 124,243 December 31, 2017 2018 2019 (In thousands) Total assets: Security Products $ 72,961 $ 74,714 $ 73,697 Marine Components 11,704 14,189 15,256 Corporate 66,294 77,526 89,591 Total $ 150,959 $ 166,429 $ 178,544 Intersegment sales are not material. Net property and equipment for 2017, 2018 and 2019 is entirely located in the United States. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Note 3 – December 31, December 31, 2018 2019 (In thousands) Accounts receivable, net: Security Products $ 10,596 $ 10,321 Marine Components 1,614 1,619 Allowance for doubtful accounts (70 ) (70 ) Total accounts receivable, net $ 12,140 $ 11,870 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4 – December 31, December 31, 2018 2019 (In thousands) Raw materials: Security Products $ 2,001 $ 2,134 Marine Components 660 807 Total raw materials 2,661 2,941 Work-in-process: Security Products 9,018 9,138 Marine Components 2,112 2,633 Total work-in-process 11,130 11,771 Finished goods: Security Products 2,363 2,582 Marine Components 948 1,054 Total finished goods 3,311 3,636 Total inventories, net $ 17,102 $ 18,348 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 5 – We assign goodwill based on reporting unit Goodwill In 2017, 2018 and 2019, 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 2017, 2018 and 2019 we used the qualitative assessment of ASC 350-20-35 for our annual impairment test and determined it was not necessary to perform the 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, 2019 is $33.6 million. Prior to 2017, 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, 2019 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Note 6 – December 31, 2018 2019 (In thousands) Accounts payable: Security Products $ 2,708 $ 1,975 Marine Components 527 539 Accrued liabilities: Employee benefits 8,068 8,331 Customer tooling 334 264 Taxes other than on income 328 350 Insurance 108 167 Sales rebates 156 117 Other 275 335 Total accounts payable and accrued liabilities $ 12,504 $ 12,078 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
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 are presented below. All of our pre-tax income relates to operations in the United States. Years ended December 31, 2017 2018 2019 (In thousands) Provision for income taxes: Currently payable $ 5,736 $ 5,064 $ 4,849 Deferred income tax expense (benefit) (1,775 ) 86 89 Total $ 3,961 $ 5,150 $ 4,938 Expected tax expense, at the U.S. federal statutory income tax rate of 35% in 2017 and 21% in 2018 and 2019 $ 6,007 $ 4,300 $ 4,397 Changes in federal tax rate, net (1,861 ) — — State income taxes 235 812 742 Domestic production activities deduction (505 ) — — Foreign derived intangible income benefit — — (201 ) Other, net 85 38 — Total $ 3,961 $ 5,150 $ 4,938 On December 22, 2017, H.R.1, formally known as the “Tax Cuts and Jobs Act” (“2017 Tax Act”) was enacted into law. This tax legislation, among other changes, (i) reduced the federal corporate income tax rate from 35% to 21% effective January 1, 2018; (ii) eliminated the domestic production activities deduction beginning in 2018; and (iii) allows for the expensing of certain capital expenditures. Following the enactment of the 2017 Tax Act, the Securities and Exchange Commission issued Staff Accounting Bulletin (SAB) 118 to provide guidance on the accounting and reporting impacts of the 2017 Tax Act. SAB 118 required that companies account for changes related to the 2017 Tax Act in the period of enactment unless the impact of such changes could not be reasonably estimated. Where the use of estimated provisional amounts was necessary, SAB 118 provided for a measurement period of no longer than one year during which companies could adjust those amounts as additional information became available. Therefore, as required under GAAP, we revalued our net deferred tax liability associated with our net taxable temporary differences based on deferred tax balances as of the enactment date to reflect the effect of the reduction in the corporate income tax rate. Our temporary differences as of December 31, 2017 were not materially different from our temporary differences as of the enactment date, accordingly revaluation of our net taxable temporary differences was based on our net deferred tax liability as of December 31, 2017. Such revaluation resulted in a non-cash deferred income tax benefit of approximately $1.9 million recognized in continuing operations for the period ended December 31, 2017, reducing our net deferred income tax liability as of that date. During 2018 we finalized our analysis of the 2017 Tax Act and recorded an immaterial adjustment within the defined measurement period. Under the 2017 Tax Act, beginning in 2018, domestic corporations who are U.S. exporters with no foreign operations may be eligible for a deduction under the foreign derived intangible income provisions. We qualify for this deduction and recognized a current cash tax benefit of $0.2 million in 2019 ($0.1 million of such current cash tax benefit is related to 2018). See also Note 10 to our Consolidated Financial Statements. The components of the net deferred tax liability are summarized below. December 31, 2018 2019 (In thousands) Tax effect of temporary differences related to: Inventories $ 356 $ 400 Property and equipment (2,912 ) (3,058 ) Accrued liabilities and other deductible differences 25 19 Accrued employee benefits 1,032 1,054 Goodwill (1,693 ) (1,693 ) Other taxable differences (6 ) (9 ) Total deferred tax liability $ (3,198 ) $ (3,287 ) We and Contran file income tax returns in U.S. federal and various state and local jurisdictions. Our income tax returns prior to 2016 are generally considered closed to examination by applicable tax authorities. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Note 8 – Shares of common stock Class A Class B Issued and outstanding Issued and outstanding Balance at December 31, 2016 2,419,107 10,000,000 Issued 7,000 — Balance at December 31, 2017 2,426,107 10,000,000 Share conversion 10,000,000 (10,000,000 ) Issued 9,450 — Balance at December 31, 2018 12,435,557 — Issued 7,500 — Balance at December 31, 2019 12,443,057 — Class A and Class B common stock. At our 2018 annual meeting of stockholders held May 23, 2018, our stockholders approved our second amended and restated certificate of incorporation, which among other things added a right for each holder of shares of our Class B common stock, at its option, to convert any or all of those shares into the same number of shares of our Class A common stock. Previously, shares of our Class B common stock were convertible into the same number of Class A common shares only under certain specified conditions. The shares of our Class A and Class B common stock were otherwise identical in all respects, except for certain voting rights in which holders of our shares of Class B common stock were entitled to ten votes per share for election of our directors and one vote per share on all other matters presented to our stockholders for their approval. Holders of our shares of Class A common stock are entitled to one vote per share on all matters. Our second amended and restated certificate of incorporation became effective on July 17, 2018 when we filed such certificate with the Delaware Secretary of State. Immediately after such effectiveness, NL, which owned all of the 10,000,000 issued and outstanding shares of our Class B common stock, converted such Class B shares into 10,000,000 shares of our Class A common stock. This conversion eliminated the dual-class voting structure with respect to election of our directors, providing for equal voting rights with respect to the election of directors for all shares of common stock and providing for uniform and equivalent corporate governance rights to all holders of our common stock. The rights of holders of Class A common stock were not otherwise affected, and the conversion did not affect the calculation of our earnings per share and had no impact on our consolidated financial position, results of operations or liquidity. The second amended and restated certificate of incorporation did not permit the reissuance or resale of any of the shares of Class B common stock which were converted. On November 5, 2018, upon the filing of a Certificate of Retirement with respect to the shares of Class B common stock with the Delaware Secretary of State, the shares of Class B common stock were retired, and our second amended and restated certificate of incorporation was amended to eliminate all references to the Class B common stock. Following the conversion and subsequent retirement of our shares of Class B common stock, our authorized capital stock consists of 20,000,000 shares of Class A common stock and 1,000 shares of preferred stock. Share repurchases and cancellations. Prior to 2017, 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 2017, 2018 or 2019 and at December 31, 2019, 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 2017, 2018 and 2019 were issued under this plan. At December 31, 2019, 149,050 shares were available for award under this plan. Dividends. We paid regular quarterly dividends of $.05 per share during 2017 and 2018 and $0.07 per during 2019. 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, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 9 – We may be deemed to be controlled by Ms. Lisa Simmons, Ms. Serena Connelly and the Family Trust. 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, prior to 2017, 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, 2021. Loans made to Valhi at any time under the agreement are at our discretion. At the end of our fiscal year in 2018 and 2019, the outstanding principal balance receivable from Valhi under the promissory note was $34.0 million and $28.1 million, respectively. Interest income (including unused commitment fees) on our loan to Valhi was $1.8 million in 2017, $2.1 million in 2018 and $2.4 million in 2019. On December 31, 2019 (two days after our 2019 fiscal year, but on the last day of the fiscal year for Valhi), we loaned $5.7 million to Valhi, increasing the outstanding principal balance receivable from Valhi under the promissory note to $33.8 million. 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 $2.8 million in 2017, $3.5 million in 2018 and $3.4 million in 2019. 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. Prior to our sale of EWI’s insurance and risk management business to a third party in November 2019, EWI brokered certain insurance policies, provided claims and risk management services and, where appropriate, engaged certain third-party risk management consultants. The aggregate premiums we paid to Tall Pines and EWI were approximately $2.2 million in 2017, $2.0 million in 2018 and $2.3 million through the date of the sale in 2019. These amounts principally represent insurance premiums paid to Tall Pines or EWI, including amounts paid to EWI that EWI then remitted, net of brokerage commissions, to insurers. 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 and 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 the relationship with Tall Pines will continue in 2020, except that a third-party brokerage and risk management company is now the broker for Contran’s insurance policies and Tall Pines’ reinsurance policies. 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. We believe the benefits in the form of reduced premiums and broader coverage associated with the group coverage for such policies justifies the risk associated with the potential for any uninsured loss. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
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 44% of sales in each of 2017 and 2018 and 47% in 2019. One customer of the Security Products segment accounted for 16% of consolidated sales in 2017, 13% in 2018 and 14% in 2019. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 December 31, 2019 Carrying amount Fair value Carrying amount Fair value Cash and cash equivalents $ 45,414 $ 45,414 $ 63,255 $ 63,255 Accounts receivable, net 12,140 12,140 11,870 11,870 Accounts payable 3,235 3,235 2,514 2,514 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, 2019 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Note 12 – Adopted On January 1, 2019, we adopted ASU 2016-02, Leases (Topic 842) Pending Adoption In December 2019, The FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Note 13 – Quarter ended March 31 June 30 September 30 December 31 (In millions, except per share amounts) 2018: Net sales $ 28.4 $ 32.4 $ 30.0 $ 27.4 Gross margin 9.5 11.2 9.6 7.9 Operating income 4.4 6.0 4.5 2.9 Net income 3.7 5.0 3.9 2.7 Basic and diluted earnings per share $ .30 $ .40 $ .32 $ .22 2019: Net sales $ 31.2 $ 33.7 $ 29.7 $ 29.6 Gross margin 9.6 10.9 9.5 9.0 Operating income 4.3 5.6 4.3 3.5 Net income 4.0 4.9 3.9 3.2 Basic and diluted earnings per share $ .32 $ .39 $ .31 $ .26 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 Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Organization | Organization. We (NYSE American: CIX) are 86% owned by NL Industries, Inc. (NYSE: NL) at December 31, 2019. We manufacture and sell component products (security products and recreational marine components). At December 31, 2019, Valhi, Inc. (NYSE: VHI) owns 83% of NL’s outstanding common stock and a wholly-owned subsidiary of Contran Corporation owns 92% of Valhi’s outstanding common stock. A majority of Contran’s outstanding voting stock is held directly by Lisa K. Simmons and Serena Simmons Connelly and various family trusts established for the benefit of Ms. Simmons and Ms. Connelly and their children and for which Ms. Simmons or Ms. Connelly, as applicable, serves as trustee. In addition, each of Ms. Simmons and Ms. Connelly serves as co-chair of the Contran board of directors. The remainder of Contran’s outstanding voting stock is held by another trust (the “Family Trust”), which was established for the benefit of Ms. Simmons and Ms. Connelly and their children and for which a third-party financial institution serves as trustee. Consequently, at December 31, 2019, Ms. Simmons, Ms. Connelly and the Family Trust may be deemed to control Contran, and therefore may be deemed to indirectly control the wholly-owned subsidiary of 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, 2017, 2018 and 2019 consisted of 52 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 are December 31, 2017, December 30, 2018, and December 29, 2019, respectively. |
Cash and Cash Equivalents | Cash and cash equivalents . We classify bank time deposits and government and commercial notes and bills with original maturities of three months or less as cash equivalents. |
Net Sales | Net sales . Our sales involve single performance obligations to ship our products pursuant to customer purchase orders. In some cases, the purchase order is supported by an underlying master sales agreement, but our purchase order verification notice generally evidences the contract with our customer by specifying the key terms of product and quantity ordered, price and delivery and payment terms. Effective January 1, 2018 with the adoption of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (see Note 12) , we record revenue when we satisfy our performance obligations to our customers by transferring control of our products to them, which generally occurs at point of shipment or upon delivery. Such transfer of control is also evidenced by transfer of legal title and other risks and rewards of ownership (giving the customer the ability to direct the use of, and obtain substantially all of the benefits of, the product), and our customers becoming obligated to pay us and such payment being probable of occurring. In certain arrangements we provide shipping and handling activities after the transfer of control to our customer (e.g. when control transfers prior to delivery). In such arrangements shipping and handling are considered fulfillment activities, and accordingly, such costs are accrued when the related revenue is recognized. Prior to the adoption of ASU 2014-09, we recorded sales when our products were shipped and title and other risks and rewards of ownership had passed to the customer, which was generally at the time of shipment (although in some instances shipping terms were FOB destination point, for which we did not recognize revenue until the product was received by our customers). Revenue is recorded in an amount that reflects the net consideration we expect to receive in exchange for our products. Prices for our products are based on terms specified in published list prices and purchase orders, which generally do not include financing components, noncash consideration or consideration paid to our customers. As our standard payment terms are less than one year, we have elected the practical expedient under ASC 606 and we have not assessed whether a contract has a significant financing component. We state sales net of price, early payment and distributor discounts as well as volume rebates (collectively, variable consideration). Variable consideration, to the extent present, is not material and is recognized as the amount to which we are most-likely to be entitled, using all information (historical, current and forecasted) that is reasonably available to us, and only to the extent that a significant reversal in the amount of the cumulative revenue recognized is not probable of occurring in a future period. Differences, if any, between estimates of the amount of variable consideration to which we will be entitled and the actual amount of such variable consideration have not been material in the past. 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, use, value added and excise taxes) on a net basis (meaning we do not recognize these taxes either in our revenues or in our costs and expenses). Frequently, we receive orders for products to be delivered over dates that may extend across reporting periods. We invoice for each delivery upon shipment and recognize revenue for each distinct shipment when all sales recognition criteria for that shipment have been satisfied. As scheduled delivery dates for these orders are within a one year period, under the optional exemption provided by ASC 606, we do not disclose sales allocated to future shipments of partially completed contracts. ASU 2014-09 requires a disaggregation of our sales into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. We have determined such disaggregation of our sales is the same as the disclosure of our sales by segment. See Note 2. |
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 net realizable value. We record a provision 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 include 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 2017, 2018 or 2019. |
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 evaluate 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. 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. |
Leases | Leases. We enter into various arrangements (or leases) that convey the rights to use and control identified underlying assets for a period of time in exchange for consideration. We lease various facilities and equipment. From time to time, we may also enter into an arrangement in which the right to use and control an identified underlying asset is embedded in another type of contract. We determine if an arrangement is a lease (including leases embedded in another type of contract) at inception. All of our leases are classified as operating leases under ASC Topic 842 Leases . Operating leases are not material. |
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 $2.4 million in 2017, $3.0 million in 2018 and $3.2 million in 2019. |
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 significant 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 $6.7 million in 2017, $4.3 million in 2018 and $5.0 million in 2019. 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 10. 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. We did not have a reserve for uncertain tax positions in 2017, 2018 or 2019. |
Business and Geographic Segme_2
Business and Geographic Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Business Segment Information | Years ended December 31, 2017 2018 2019 (In thousands) Net sales: Security Products $ 96,600 $ 98,383 $ 99,328 Marine Components 15,435 19,834 24,915 Total net sales $ 112,035 $ 118,217 $ 124,243 Operating income (loss): Security Products $ 19,182 $ 21,947 $ 21,013 Marine Components 1,342 2,738 3,644 Corporate (5,289 ) (6,874 ) (6,991 ) Total operating income 15,235 17,811 17,666 Interest income 1,929 2,664 3,270 Income before taxes $ 17,164 $ 20,475 $ 20,936 Depreciation and amortization: Security Products $ 3,072 $ 2,914 $ 3,056 Marine Components 591 535 627 Corporate 10 5 1 Total $ 3,673 $ 3,454 $ 3,684 Years ended December 31, 2017 2018 2019 (In thousands) Capital expenditures: Security Products $ 2,389 $ 2,126 $ 1,530 Marine Components 405 991 1,636 Corporate 2 - - Total $ 2,796 $ 3,117 $ 3,166 |
Business Segment Information by Geographical Areas | Net sales point of destination: United States $ 103,646 $ 108,773 $ 114,186 Canada 5,353 6,436 7,257 Mexico 1,486 1,438 922 Other 1,550 1,570 1,878 Total $ 112,035 $ 118,217 $ 124,243 December 31, 2017 2018 2019 (In thousands) Total assets: Security Products $ 72,961 $ 74,714 $ 73,697 Marine Components 11,704 14,189 15,256 Corporate 66,294 77,526 89,591 Total $ 150,959 $ 166,429 $ 178,544 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, Net | December 31, December 31, 2018 2019 (In thousands) Accounts receivable, net: Security Products $ 10,596 $ 10,321 Marine Components 1,614 1,619 Allowance for doubtful accounts (70 ) (70 ) Total accounts receivable, net $ 12,140 $ 11,870 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | December 31, December 31, 2018 2019 (In thousands) Raw materials: Security Products $ 2,001 $ 2,134 Marine Components 660 807 Total raw materials 2,661 2,941 Work-in-process: Security Products 9,018 9,138 Marine Components 2,112 2,633 Total work-in-process 11,130 11,771 Finished goods: Security Products 2,363 2,582 Marine Components 948 1,054 Total finished goods 3,311 3,636 Total inventories, net $ 17,102 $ 18,348 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | December 31, 2018 2019 (In thousands) Accounts payable: Security Products $ 2,708 $ 1,975 Marine Components 527 539 Accrued liabilities: Employee benefits 8,068 8,331 Customer tooling 334 264 Taxes other than on income 328 350 Insurance 108 167 Sales rebates 156 117 Other 275 335 Total accounts payable and accrued liabilities $ 12,504 $ 12,078 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 are presented below. All of our pre-tax income relates to operations in the United States. Years ended December 31, 2017 2018 2019 (In thousands) Provision for income taxes: Currently payable $ 5,736 $ 5,064 $ 4,849 Deferred income tax expense (benefit) (1,775 ) 86 89 Total $ 3,961 $ 5,150 $ 4,938 Expected tax expense, at the U.S. federal statutory income tax rate of 35% in 2017 and 21% in 2018 and 2019 $ 6,007 $ 4,300 $ 4,397 Changes in federal tax rate, net (1,861 ) — — State income taxes 235 812 742 Domestic production activities deduction (505 ) — — Foreign derived intangible income benefit — — (201 ) Other, net 85 38 — Total $ 3,961 $ 5,150 $ 4,938 |
Components of Net Deferred Tax Liability | The components of the net deferred tax liability are summarized below. December 31, 2018 2019 (In thousands) Tax effect of temporary differences related to: Inventories $ 356 $ 400 Property and equipment (2,912 ) (3,058 ) Accrued liabilities and other deductible differences 25 19 Accrued employee benefits 1,032 1,054 Goodwill (1,693 ) (1,693 ) Other taxable differences (6 ) (9 ) Total deferred tax liability $ (3,198 ) $ (3,287 ) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Summary of Stockholders' Equity | Shares of common stock Class A Class B Issued and outstanding Issued and outstanding Balance at December 31, 2016 2,419,107 10,000,000 Issued 7,000 — Balance at December 31, 2017 2,426,107 10,000,000 Share conversion 10,000,000 (10,000,000 ) Issued 9,450 — Balance at December 31, 2018 12,435,557 — Issued 7,500 — Balance at December 31, 2019 12,443,057 — |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 December 31, 2019 Carrying amount Fair value Carrying amount Fair value Cash and cash equivalents $ 45,414 $ 45,414 $ 63,255 $ 63,255 Accounts receivable, net 12,140 12,140 11,870 11,870 Accounts payable 3,235 3,235 2,514 2,514 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations | Quarter ended March 31 June 30 September 30 December 31 (In millions, except per share amounts) 2018: Net sales $ 28.4 $ 32.4 $ 30.0 $ 27.4 Gross margin 9.5 11.2 9.6 7.9 Operating income 4.4 6.0 4.5 2.9 Net income 3.7 5.0 3.9 2.7 Basic and diluted earnings per share $ .30 $ .40 $ .32 $ .22 2019: Net sales $ 31.2 $ 33.7 $ 29.7 $ 29.6 Gross margin 9.6 10.9 9.5 9.0 Operating income 4.3 5.6 4.3 3.5 Net income 4.0 4.9 3.9 3.2 Basic and diluted earnings per share $ .32 $ .39 $ .31 $ .26 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Significant Accounting Policies [Line Items] | |||
Defined Contribution Plan, Cost Recognized | $ 3.2 | $ 3 | $ 2.4 |
Income tax payments to NL | $ 5 | $ 4.3 | $ 6.7 |
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 | CompX International Inc | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Percentage of ownership held by parent company | 86.00% | ||
Valhi Inc | NL Industries | |||
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 | 92.00% |
Business and Geographic Segme_3
Business and Geographic Segments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable operating segments | 2 |
Business and Geographic Segme_4
Business and Geographic Segments - Schedule of Business Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net sales: | |||||||||||
Total net sales | $ 29,600 | $ 29,700 | $ 33,700 | $ 31,200 | $ 27,400 | $ 30,000 | $ 32,400 | $ 28,400 | $ 124,243 | $ 118,217 | $ 112,035 |
Operating income (loss): | |||||||||||
Total operating income | $ 3,500 | $ 4,300 | $ 5,600 | $ 4,300 | $ 2,900 | $ 4,500 | $ 6,000 | $ 4,400 | 17,666 | 17,811 | 15,235 |
Interest income | 3,270 | 2,664 | 1,929 | ||||||||
Income before income taxes | 20,936 | 20,475 | 17,164 | ||||||||
Depreciation and amortization | 3,684 | 3,454 | 3,673 | ||||||||
Total capital expenditure | 3,166 | 3,117 | 2,796 | ||||||||
Operating Segments | Security Products | |||||||||||
Net sales: | |||||||||||
Total net sales | 99,328 | 98,383 | 96,600 | ||||||||
Operating income (loss): | |||||||||||
Total operating income | 21,013 | 21,947 | 19,182 | ||||||||
Depreciation and amortization | 3,056 | 2,914 | 3,072 | ||||||||
Total capital expenditure | 1,530 | 2,126 | 2,389 | ||||||||
Operating Segments | Marine Components | |||||||||||
Net sales: | |||||||||||
Total net sales | 24,915 | 19,834 | 15,435 | ||||||||
Operating income (loss): | |||||||||||
Total operating income | 3,644 | 2,738 | 1,342 | ||||||||
Depreciation and amortization | 627 | 535 | 591 | ||||||||
Total capital expenditure | 1,636 | 991 | 405 | ||||||||
Corporate | |||||||||||
Operating income (loss): | |||||||||||
Total operating income | (6,991) | (6,874) | (5,289) | ||||||||
Depreciation and amortization | $ 1 | $ 5 | 10 | ||||||||
Total capital expenditure | $ 2 |
Business and Geographic Segme_5
Business and Geographic Segments - Business Segment Information by Geographical Areas (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net sales: | |||||||||||
Net sales | $ 29,600 | $ 29,700 | $ 33,700 | $ 31,200 | $ 27,400 | $ 30,000 | $ 32,400 | $ 28,400 | $ 124,243 | $ 118,217 | $ 112,035 |
Total assets | 178,544 | 166,429 | 178,544 | 166,429 | 150,959 | ||||||
Operating Segments | Security Products | |||||||||||
Net sales: | |||||||||||
Net sales | 99,328 | 98,383 | 96,600 | ||||||||
Total assets | 73,697 | 74,714 | 73,697 | 74,714 | 72,961 | ||||||
Operating Segments | Marine Components | |||||||||||
Net sales: | |||||||||||
Net sales | 24,915 | 19,834 | 15,435 | ||||||||
Total assets | 15,256 | 14,189 | 15,256 | 14,189 | 11,704 | ||||||
Corporate and eliminations | |||||||||||
Net sales: | |||||||||||
Total assets | $ 89,591 | $ 77,526 | 89,591 | 77,526 | 66,294 | ||||||
Point Of Destination | United States | |||||||||||
Net sales: | |||||||||||
Net sales | 114,186 | 108,773 | 103,646 | ||||||||
Point Of Destination | Canada | |||||||||||
Net sales: | |||||||||||
Net sales | 7,257 | 6,436 | 5,353 | ||||||||
Point Of Destination | Mexico | |||||||||||
Net sales: | |||||||||||
Net sales | 922 | 1,438 | 1,486 | ||||||||
Point Of Destination | Other | |||||||||||
Net sales: | |||||||||||
Net sales | $ 1,878 | $ 1,570 | $ 1,550 |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of Accounts Receivable, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||
Allowance for doubtful accounts | $ (70) | $ (70) |
Total accounts receivable, net | 11,870 | 12,140 |
Security Products | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accounts receivable, gross | 10,321 | 10,596 |
Marine Components | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accounts receivable, gross | $ 1,619 | $ 1,614 |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory [Line Items] | ||
Total raw materials | $ 2,941 | $ 2,661 |
Total work-in-process | 11,771 | 11,130 |
Total finished goods | 3,636 | 3,311 |
Total inventories, net | 18,348 | 17,102 |
Security Products | ||
Inventory [Line Items] | ||
Total raw materials | 2,134 | 2,001 |
Total work-in-process | 9,138 | 9,018 |
Total finished goods | 2,582 | 2,363 |
Marine Components | ||
Inventory [Line Items] | ||
Total raw materials | 807 | 660 |
Total work-in-process | 2,633 | 2,112 |
Total finished goods | $ 1,054 | $ 948 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 _3
Accounts Payable and Accrued Liabilities - Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued liabilities: | ||
Employee benefits | $ 8,331 | $ 8,068 |
Customer tooling | 264 | 334 |
Taxes other than on income | 350 | 328 |
Insurance | 167 | 108 |
Sales rebates | 117 | 156 |
Other | 335 | 275 |
Total accounts payable and accrued liabilities | 12,078 | 12,504 |
Security Products | ||
Accounts payable: | ||
Accounts payable | 1,975 | 2,708 |
Marine Components | ||
Accounts payable: | ||
Accounts payable | $ 539 | $ 527 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Provision for income taxes: | |||
Currently payable | $ 4,849 | $ 5,064 | $ 5,736 |
Deferred income tax expense (benefit) | 89 | 86 | (1,775) |
Provision for income taxes | 4,938 | 5,150 | 3,961 |
Expected tax expense, at the U.S. federal statutory income tax rate of 35% in 2017 and 21% in 2018 and 2019 | 4,397 | 4,300 | 6,007 |
Changes in federal tax rate, net | (1,861) | ||
State income taxes | 742 | 812 | 235 |
Domestic production activities deduction | (505) | ||
Foreign derived intangible income benefit | (201) | (100) | |
Other, net | 38 | 85 | |
Provision for income taxes | $ 4,938 | $ 5,150 | $ 3,961 |
Income Taxes - Components of _2
Income Taxes - Components of Pre-tax Income and Provision for Income Taxes (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | 21.00% | 21.00% | 35.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | 21.00% | 21.00% | 35.00% |
Non-cash deferred income tax benefit | $ 1,861 | ||
Foreign-derived intangible income benefit | $ 201 | $ 100 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Liability (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Inventories | $ 400 | $ 356 |
Property and equipment | (3,058) | (2,912) |
Accrued liabilities and other deductible differences | 19 | 25 |
Accrued employee benefits | 1,054 | 1,032 |
Goodwill | (1,693) | (1,693) |
Other taxable differences | (9) | (6) |
Total deferred tax liability | $ (3,287) | $ (3,198) |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stockholders' Equity (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class A Common Stock | |||
Class Of Stock [Line Items] | |||
Common stock, shares outstanding, beginning balance | 12,435,557 | 2,426,107 | 2,419,107 |
Share conversion | 10,000,000 | ||
Issued | 7,500 | 9,450 | 7,000 |
Common stock, shares outstanding, ending balance | 12,443,057 | 12,435,557 | 2,426,107 |
Class B Common Stock | |||
Class Of Stock [Line Items] | |||
Common stock, shares outstanding, beginning balance | 10,000,000 | 10,000,000 | |
Share conversion | (10,000,000) | ||
Common stock, shares outstanding, ending balance | 10,000,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | Jul. 17, 2018Voteshares | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018$ / sharesshares | Dec. 31, 2017$ / sharesshares | Dec. 31, 2016shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock, shares authorized | 20,000,000 | ||||
Preferred stock, shares authorized | 1,000 | 1,000 | 1,000 | ||
Treasury stock purchases | 0 | 0 | 0 | ||
Shares available for purchase | 678,000 | ||||
Common Stock Dividend declared by directors | $ / shares | $ 0.07 | $ 0.05 | $ 0.05 | ||
2013 Director Stock Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares available for award | 149,050 | ||||
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 B Common Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock, vote per share | Vote | 10 | ||||
Common stock, vote per share | Vote | 1 | ||||
Common stock, shares outstanding | 10,000,000 | 10,000,000 | |||
Class A Common Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock, vote per share | Vote | 1 | ||||
Common stock, shares issued | 12,443,057 | 12,435,557 | |||
Common stock, shares outstanding | 12,443,057 | 12,435,557 | 2,426,107 | 2,419,107 | |
Common stock, shares authorized | 20,000,000 | 20,000,000 | |||
NL Industries | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Conversion of common stock | 10,000,000 | ||||
NL Industries | Class B Common Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock, shares issued | 10,000,000 | ||||
Common stock, shares outstanding | 10,000,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 11 Months Ended | 12 Months Ended | |||
Nov. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 02, 2020 | |
Related Party Transaction [Line Items] | |||||
Note receivable from affiliate | $ 28,100,000 | $ 34,000,000 | |||
Contran Corporation | Intercorporate Services Agreements Fees | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction expense | 3,400,000 | 3,500,000 | $ 2,800,000 | ||
Tall Pines Insurance Company And EWI RE Inc | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction expense | $ 2,300,000 | 2,000,000 | 2,200,000 | ||
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, 2021 | ||||
Note receivable from affiliate | 28,100,000 | 34,000,000 | |||
Interest income including unused commitment fees on our loan | 2,400,000 | $ 2,100,000 | $ 1,800,000 | ||
Amount loaned | $ 5,700,000 | ||||
Unsecured Revolving Demand Promissory | Valhi Inc | Subsequent Event | |||||
Related Party Transaction [Line Items] | |||||
Note receivable from affiliate | $ 33,800,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - Customer | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 | 47.00% | 44.00% | 44.00% |
Customer Concentration Risk | Consolidated Sales | Customer One | Security Products | |||
Concentration Risk [Line Items] | |||
Sales Revenue, percentage | 14.00% | 13.00% | 16.00% |
Financial Instruments - Carryin
Financial Instruments - Carrying Value and Estimated Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 63,255 | $ 45,414 |
Accounts receivable, net | 11,870 | 12,140 |
Accounts payable | 2,514 | 3,235 |
Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 63,255 | 45,414 |
Accounts receivable, net | 11,870 | 12,140 |
Accounts payable | $ 2,514 | $ 3,235 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) - Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 29,600 | $ 29,700 | $ 33,700 | $ 31,200 | $ 27,400 | $ 30,000 | $ 32,400 | $ 28,400 | $ 124,243 | $ 118,217 | $ 112,035 |
Gross margin | 9,000 | 9,500 | 10,900 | 9,600 | 7,900 | 9,600 | 11,200 | 9,500 | 38,963 | 38,271 | 34,825 |
Operating income | 3,500 | 4,300 | 5,600 | 4,300 | 2,900 | 4,500 | 6,000 | 4,400 | 17,666 | 17,811 | 15,235 |
Net income | $ 3,200 | $ 3,900 | $ 4,900 | $ 4,000 | $ 2,700 | $ 3,900 | $ 5,000 | $ 3,700 | $ 15,998 | $ 15,325 | $ 13,203 |
Basic and diluted earnings per share | $ 0.26 | $ 0.31 | $ 0.39 | $ 0.32 | $ 0.22 | $ 0.32 | $ 0.40 | $ 0.30 | $ 1.29 | $ 1.23 | $ 1.06 |