Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 28, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | KRO | ||
Entity Registrant Name | KRONOS WORLDWIDE INC | ||
Entity Central Index Key | 0001257640 | ||
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 | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 115,907,698 | ||
Entity Public Float | $ 508.3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 373.3 | $ 322 |
Restricted cash | 1.4 | 1.7 |
Accounts and other receivables | 299.5 | 319.1 |
Receivables from affiliates | 13 | 27.4 |
Inventories, net | 497.9 | 382.3 |
Prepaid expenses and other | 16.3 | 10 |
Total current assets | 1,201.4 | 1,062.5 |
Other assets: | ||
Investment in TiO2 manufacturing joint venture | 81.3 | 86.5 |
Marketable securities | 3.4 | 10.7 |
Note receivable from Valhi | 13.6 | |
Deferred income taxes | 122 | 139.2 |
Other | 3.6 | 5.5 |
Total other assets | 210.3 | 255.5 |
Property and equipment: | ||
Land | 41 | 42 |
Buildings | 211.7 | 221.6 |
Equipment | 1,102.6 | 1,103.2 |
Mining properties | 114 | 115.7 |
Construction in progress | 38 | 52.6 |
Gross property and equipment | 1,507.3 | 1,535.1 |
Less accumulated depreciation and amortization | 1,020.9 | 1,028.7 |
Net property and equipment | 486.4 | 506.4 |
Total assets | 1,898.1 | 1,824.4 |
Current liabilities: | ||
Current maturities of long-term debt | 1.5 | 0.7 |
Accounts payable and accrued liabilities | 195.8 | 189.6 |
Payables to affiliates | 27.1 | 16.2 |
Income taxes | 9 | 25 |
Total current liabilities | 233.4 | 231.5 |
Noncurrent liabilities: | ||
Long-term debt | 455.1 | 473.8 |
Accrued pension costs | 262.9 | 254.2 |
Payable to affiliate - income taxes | 56.6 | 70.1 |
Deferred income taxes | 21.5 | 11.3 |
Other | 28.8 | 29.2 |
Total noncurrent liabilities | 824.9 | 838.6 |
Stockholders' equity: | ||
Common stock, $.01 par value; 240.0 shares authorized; 115.9 shares issued | 1.2 | 1.2 |
Additional paid-in capital | 1,399.1 | 1,399 |
Retained deficit | (136.2) | (267.2) |
Accumulated other comprehensive loss | (424.3) | (378.7) |
Total stockholders' equity | 839.8 | 754.3 |
Total liabilities and stockholders' equity | 1,898.1 | 1,824.4 |
Commitments and contingencies (Notes 13 and 16) |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 240,000,000 | 240,000,000 |
Common stock, shares issued | 115,900,000 | 115,900,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 1,661.9 | $ 1,729 | $ 1,364.3 |
Cost of sales | 1,099.7 | 1,159.3 | 1,099.6 |
Gross margin | 562.2 | 569.7 | 264.7 |
Selling, general and administrative expense | 228.3 | 200.6 | 168.5 |
Other operating income (expense): | |||
Currency transactions, net | 10.1 | (7.5) | 5.5 |
Disposition of property and equipment | (0.2) | (0.4) | (0.3) |
Other income, net | 0.8 | 0.5 | 4.2 |
Corporate expense | (14.5) | (13.9) | (12.7) |
Income from operations | 330.1 | 347.8 | 92.9 |
Other income (expense): | |||
Interest and dividend income | 5.5 | 1.4 | 0.6 |
Marketable equity securities | (7.3) | ||
Other components of net periodic pension and OPEB cost | (15) | (17.4) | (11.8) |
Loss on prepayment of debt, net | (7.1) | ||
Interest expense | (19.5) | (19) | (20.5) |
Income before income taxes | 293.8 | 305.7 | 61.2 |
Income tax expense (benefit) | 88.8 | (48.8) | 17.9 |
Net income | $ 205 | $ 354.5 | $ 43.3 |
Net income per basic and diluted share | $ 1.77 | $ 3.06 | $ 0.37 |
Cash dividends per share | $ 0.68 | $ 0.60 | $ 0.60 |
Weighted average shares used in the calculation of net income per share | 115.9 | 115.9 | 115.9 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income | $ 205 | $ 354.5 | $ 43.3 |
Other comprehensive income (loss), net of tax: | |||
Currency translation | (33.1) | 57.7 | (17.6) |
Marketable securities | 3 | 2.4 | |
Interest rate swap | 2 | 0.3 | |
Total other comprehensive income (loss), net | (40.8) | 74.1 | (40.8) |
Comprehensive income | 164.2 | 428.6 | 2.5 |
Defined Benefit Pension Plans | |||
Other comprehensive income (loss), net of tax: | |||
Defined benefit plans | (7.2) | 12 | (25.6) |
OPEB | |||
Other comprehensive income (loss), net of tax: | |||
Defined benefit plans | $ (0.5) | $ (0.6) | $ (0.3) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Retained earnings (deficit) | Accumulated other comprehensive loss |
Beginning Balance at Dec. 31, 2015 | $ 461.9 | $ 1.2 | $ 1,398.7 | $ (526) | $ (412) |
Balance as adjusted at Dec. 31, 2015 | (412) | ||||
Net income | 43.3 | 43.3 | |||
Other comprehensive income (loss), net of tax | (40.8) | (40.8) | |||
Issuance of common stock | 0.1 | 0.1 | |||
Dividends paid - $.60 per share, $.60 per share & $.68 per share for 2016, 2017 & 2018 respectively | (69.5) | (69.5) | |||
Ending Balance at Dec. 31, 2016 | 395 | 1.2 | 1,398.8 | (552.2) | (452.8) |
Balance as adjusted at Dec. 31, 2016 | (452.8) | ||||
Net income | 354.5 | 354.5 | |||
Other comprehensive income (loss), net of tax | 74.1 | 74.1 | |||
Issuance of common stock | 0.2 | 0.2 | |||
Dividends paid - $.60 per share, $.60 per share & $.68 per share for 2016, 2017 & 2018 respectively | (69.5) | (69.5) | |||
Ending Balance at Dec. 31, 2017 | 754.3 | 1.2 | 1,399 | (267.2) | (378.7) |
Change in accounting principle - ASU 2016-01 at Dec. 31, 2017 | 4.8 | (4.8) | |||
Balance as adjusted at Dec. 31, 2017 | 754.3 | 1.2 | 1,399 | (262.4) | (383.5) |
Net income | 205 | 205 | |||
Other comprehensive income (loss), net of tax | (40.8) | (40.8) | |||
Issuance of common stock | 0.1 | 0.1 | |||
Dividends paid - $.60 per share, $.60 per share & $.68 per share for 2016, 2017 & 2018 respectively | (78.8) | (78.8) | |||
Ending Balance at Dec. 31, 2018 | $ 839.8 | $ 1.2 | $ 1,399.1 | $ (136.2) | $ (424.3) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash dividends per share | $ 0.68 | $ 0.60 | $ 0.60 |
Retained earnings (deficit) | |||
Cash dividends per share | $ 0.68 | $ 0.60 | $ 0.60 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 205 | $ 354.5 | $ 43.3 |
Depreciation and amortization | 49.7 | 41.2 | 40.5 |
Deferred income taxes | 27.3 | (151.6) | 7.7 |
Benefit plan expense greater than cash funding | 8.4 | 12 | 5.8 |
Marketable equity securities | 7.3 | ||
Distributions from (contributions to) TiO2 manufacturing joint venture, net | 4 | (6) | 3.6 |
Loss on prepayment of debt | 7.1 | ||
Payment for termination of interest rate swap contract | (3.3) | ||
Other, net | 2.8 | 2.4 | 3 |
Change in assets and liabilities: | |||
Accounts and other receivables | 8.7 | (52.7) | (37.4) |
Inventories | (135.5) | (4.9) | 38.8 |
Prepaid expenses | (5.3) | 0.9 | (1.5) |
Accounts payable and accrued liabilities | 16.4 | 20.7 | (12.9) |
Income taxes | (16.4) | 19.2 | 3.8 |
Accounts with affiliates | 15.4 | 41.3 | (5.8) |
Other noncurrent assets | 1.5 | (1.6) | 0.3 |
Other noncurrent liabilities | (0.8) | (3.1) | 0.4 |
Net cash provided by operating activities | 188.5 | 276.1 | 89.6 |
Cash flows from investing activities: | |||
Capital expenditures | (56.3) | (64.3) | (53) |
Net cash used in investing activities | (42.7) | (77.9) | (53) |
Indebtedness: | |||
Borrowings | 731.5 | 266.2 | |
Principal payments | (1.5) | (594.3) | (270) |
Deferred financing fees | (0.1) | (8.9) | |
Dividends paid | (78.8) | (69.5) | (69.5) |
Net cash provided by (used in) financing activities | (80.4) | 58.8 | (73.3) |
Cash, cash equivalents and restricted cash - net change from: | |||
Operating, investing and financing activities | 65.4 | 257 | (36.7) |
Effect of exchange rate changes | (14.4) | 14.4 | (5.3) |
Net change for the year | 51 | 271.4 | (42) |
Balance at beginning of year | 323.7 | 52.3 | 94.3 |
Balance at end of year | 374.7 | 323.7 | 52.3 |
Cash paid for: | |||
Interest, net of amounts capitalized | 18.5 | 15.2 | 18.4 |
Income taxes | 67.9 | 37.1 | 6.6 |
Accrual for capital expenditures | 6.3 | 8.7 | $ 8 |
Valhi | |||
Cash flows from investing activities: | |||
Loans | (2.6) | (18.2) | |
Collections | $ 16.2 | $ 4.6 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 – Summary of significant accounting policies: Organization and basis of presentation At December 31, 2018, Valhi, Inc. (NYSE: VHI) held approximately 50% of our outstanding common stock and a wholly-owned subsidiary of NL Industries, Inc. (NYSE: NL) held approximately 30% of our common stock. Valhi owned approximately 83% of NL’s outstanding common stock and a wholly-owned subsidiary of Contran Corporation held approximately 92% 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 Kronos Worldwide, Inc. and its subsidiaries, taken as a whole. Management’s 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 the date of the financial statements, and the reported amount of revenues and expenses during the reporting period. Actual results may differ significantly from previously-estimated amounts under different assumptions or conditions. Principles of consolidation – The consolidated financial statements include our accounts and those of our majority-owned subsidiaries. We have eliminated all material intercompany accounts and balances. Translation of currencies – We translate the assets and liabilities of our subsidiaries whose functional currency is other than the U.S. dollar at year-end exchange rates, while we translate our revenues and expenses at average exchange rates prevailing during the year. We accumulate the resulting translation adjustments in stockholders’ equity as part of accumulated other comprehensive loss, net of related deferred income taxes. We recognize currency transaction gains and losses in income currently. Derivatives and hedging activities – We recognize derivatives as either assets or liabilities measured at fair value. We recognize the effect of changes in the fair value of derivatives either in net income or other comprehensive income (loss), depending on the intended use of the derivative. See Note 17. Cash and cash equivalents – We classify bank time deposits and U.S. Treasury securities purchased under short-term agreements to resell with original maturities of three months or less as cash equivalents. Restricted cash – We classify cash that has been segregated or is otherwise limited in use as restricted. Such restrictions or limitations relate to certain Norwegian payroll tax and employee benefit obligations. To the extent the restricted amount relates to a recognized liability, we classify such restricted amount as either a current or noncurrent asset to correspond with the classification of the liability. To the extent the restricted amount does not relate to a recognized liability, we classify restricted cash as a current asset. All of our restricted cash is classified as a current asset and is separately presented on the face of the statement of financial position. Marketable securities and securities transactions – We carry marketable securities at fair value. Accounting Standard Codification (ASC) Topic 820, Fair Value Measurements and Disclosures , establishes a consistent framework for measuring fair value and (with certain exceptions) this framework is generally applied to all financial statement items required to be measured at fair value. The standard requires fair value measurements to be classified and disclosed in one of the following three categories: • Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2 – Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the assets or liability; and • Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable. We classify all of our marketable securities as available-for-sale. Prior to 2018, any unrealized gains or losses on the securities were recognized through other comprehensive income, net of deferred income taxes. Beginning on January 1, 2018 with the adoption of ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition of Financial Assets and Financial Liabilities See Notes 6, 10 and 17. Accounts receivable – We provide an allowance for doubtful accounts for known and estimated potential losses arising from sales to customers based on a periodic review of these accounts. See Note 3. Inventories and cost of sales – We state inventories at the lower of cost or net realizable value, 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, depreciation, and salaries and benefits associated with our manufacturing process. We allocate fixed manufacturing overheads 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. See Note 4. Investment in TiO 2 manufacturing joint venture We account for our investment in a 50%-owned manufacturing joint venture by the equity method Property and equipment and depreciation – We state property and equipment at cost, including capitalized interest on borrowings during the actual construction period of major capital projects. Capitalized interest costs were $.9 million in 2016, $2.0 million in 2017 and $.8 million in 2018. We compute depreciation of property and equipment for financial reporting purposes (including mining equipment) principally by the straight-line method over the estimated useful lives of the assets as follows: Asset Useful lives Buildings and improvements 10 to 40 years Machinery and equipment 3 to 20 years Mine development costs units-of-production We use accelerated depreciation methods for income tax purposes, as permitted. Upon the sale or retirement of an asset, we remove the related cost and accumulated depreciation from the accounts and recognize any gain or loss in income currently. We expense costs incurred for maintenance, repairs and minor renewals (including planned major maintenance) while we capitalize expenditures for major improvements. We have a governmental concession with an unlimited term to operate our ilmenite mines in Norway. Mining properties consist of buildings and equipment used in our Norwegian ilmenite mining operations. While we own the land and ilmenite reserves associated with the mining operations, such land and reserves were acquired for nominal value and we have no material asset recognized for the land and reserves related to our mining operations. 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 (exclusive of interest expense) associated with the asset to the asset’s net carrying value to determine if a write-down to fair value or discounted cash flow value is required. Long-term debt – We state long-term debt net of any unamortized original issue premium, discount or deferred financing costs (other than deferred financing costs associated with revolving credit facilities, which are recognized as an asset). We classify amortization of all deferred financing costs and any premium or discount associated with the issuance of indebtedness as interest expense and compute such amortization by either the interest method or the straight-line method over the term of the applicable issue. See Note 8. Employee benefit plans – Accounting and funding policies for our defined benefit pension and defined contribution retirement plans are described in Note 10. We also provide certain postretirement benefits other than pensions (OPEB), consisting of health care and life insurance benefits, to certain U.S. and Canadian retired employees, which are not material. See Note 11. Income taxes – We, Valhi and our qualifying subsidiaries are members of Contran’s consolidated U.S. federal income tax group (the Contran Tax Group) and we and certain of our qualifying subsidiaries also file consolidated income tax returns with Contran in various 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 16. 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 using the tax elections made by Contran. Pursuant to the tax sharing agreement, we make payments to or receive payments from Valhi 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. We made net payments of income taxes to Valhi of $.8 million in 2016 and $16.8 million in 2017 and received net refunds of income taxes from Valhi of $1.9 million in 2018. We recognize deferred income tax assets and liabilities for the expected future tax consequences of temporary differences between the income tax and financial reporting carrying amounts of assets and liabilities, including investments in our subsidiaries and affiliates who are not members of the Contran Tax Group and undistributed earnings of non-U.S. subsidiaries which are not deemed to be permanently reinvested. At December 31, 2018, we continue to assert indefinite reinvestment as it relates to our outside basis difference attributable to our investments in our non-U.S. subsidiaries, other than post-1986 undistributed earnings of our European subsidiaries and all undistributed earnings of our Canadian subsidiary, which are not subject to permanent reinvestment plans. It is currently not practical for us to determine the amount of the unrecognized deferred income tax liability related to our investments in our non-U.S. subsidiaries which are permanently reinvested due to the complexities associated with our organizational structure, changes in the Tax Cuts and Jobs Act (2017 Tax Act) enacted on December 22, 2017, and the U.S. taxation of such investments in the states in which we operate. 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 such deferred tax assets that we believe does not meet the more-likely-than-not recognition criteria. We account for the tax effects of a change in tax law as a component of the income tax provision related to continuing operations in the period of enactment, including the tax effects of any deferred income taxes originally established through a financial statement component other than continuing operations (i.e. other comprehensive income). Changes in applicable income tax rates over time as a result of changes in tax law, or times in which a deferred income tax asset valuation allowance is initially recognized in one year and subsequently reversed in a later year, can give rise to “stranded” tax effects in accumulated other comprehensive income in which the net accumulated income tax (benefit) remaining in accumulated other comprehensive income does not correspond to the then-applicable income tax rate applied to the pre-tax amount which resides in accumulated other comprehensive income. As permitted by GAAP, our accounting policy is to remove any such stranded tax effect remaining in accumulated other comprehensive income, by recognizing an offset to our provision for income taxes related to continuing operations, only at the time when there is no remaining pre-tax amount in accumulated other comprehensive income. For accumulated other comprehensive income related to currency translation, this would occur only upon the sale or complete liquidation of one of our non-U.S. subsidiaries. For defined pension benefit plans and OPEB plans, this would occur whenever one of our subsidiaries which previously sponsored a defined benefit pension or OPEB plan had terminated such a plan and had no future obligation or plan asset associated with such a plan. We record a reserve for uncertain tax positions for tax positions where we believe that it is more-likely-than-not our position will not prevail with the applicable tax authorities. The amount of the benefit associated with our uncertain tax positions that we recognize is limited to the largest amount for which we believe the likelihood of realization is greater than 50%. We accrue penalties and interest on the difference between tax positions taken on our tax returns and the amount of benefit recognized for financial reporting purposes. We classify our reserves for uncertain tax positions in a separate current or noncurrent liability, depending on the nature of the tax position. See Note 13. 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 acceptance 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 ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , see Note 18, we record revenue when we satisfy our performance obligation 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 is 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) that are considered fulfillment activities, and accordingly, such costs are accrued when the related revenue is recognized. Sales arrangements with consignment customers occur when our product is shipped to a consignment customer location but we maintain control until the product is used in the customer’s manufacturing process. In these instances, we recognize sales when the consignment customer uses our product, as control of our product has not passed to the customer until that time and all other revenue recognition criteria have been satisfied. 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 customer). 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 ASU 2014-09 and have not assessed whether a contract has a significant financing component. We state sales net of price, early payment, and distributor discounts and volume rebates (collectively, variable consideration). Variable consideration, to the extent present, 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. Amounts received or receivable from our customers with respect to variable consideration we expect to refund to our customers is recognized as a current liability and classified as accrued sales discounts and rebates. See Note 9. 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 ASU 2014-09, 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 place of manufacture (point of origin) and to the location of the customer (point of destination). See Note 2. Selling, general and administrative expense; shipping and handling costs – Selling, general and administrative expense includes costs related to marketing, sales, distribution, shipping and handling, research and development, legal and administrative functions such as accounting, treasury and finance, and includes costs for salaries and benefits not associated with our manufacturing process, travel and entertainment, promotional materials and professional fees. |
Geographic information
Geographic information | 12 Months Ended |
Dec. 31, 2018 | |
Segments Geographical Areas [Abstract] | |
Geographic Information | Note 2 – Geographic information: Our operations are associated with the production and sale of titanium dioxide pigments (TiO 2 2 2 For geographic information, we attribute net sales to the place of manufacture (point of origin) and to the location of the customer (point of destination); we attribute property and equipment to their physical location. Years ended December 31, 2016 2017 2018 (In millions) Net sales - point of origin: Germany $ 699.8 $ 918.6 $ 886.1 United States 664.2 841.8 839.4 Canada 257.7 309.2 307.2 Belgium 187.4 279.9 272.2 Norway 164.8 216.4 209.6 Eliminations (609.6 ) (836.9 ) (852.6 ) Total $ 1,364.3 $ 1,729.0 $ 1,661.9 Net sales - point of destination: Europe $ 697.6 $ 898.8 $ 817.2 North America 413.2 519.4 542.0 Other 253.5 310.8 302.7 Total $ 1,364.3 $ 1,729.0 $ 1,661.9 December 31, 2017 2018 (In millions) Identifiable assets - net property and equipment: Germany $ 243.2 $ 232.1 Belgium 96.5 94.8 Norway 79.6 79.3 Canada 67.9 65.2 Other 19.2 15.0 Total $ 506.4 $ 486.4 |
Accounts and Other Receivables
Accounts and Other Receivables | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Accounts and Other Receivables | Note 3 – Accounts and other receivables: December 31, 2017 2018 (In millions) Trade receivables $ 301.4 $ 273.3 Recoverable VAT and other receivables 19.0 23.8 Refundable income taxes .1 3.6 Allowance for doubtful accounts (1.4 ) (1.2 ) Total $ 319.1 $ 299.5 |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 4 – Inventories, net: December 31, 2017 2018 (In millions) Raw materials $ 106.9 $ 93.1 Work in process 20.8 23.5 Finished products 191.5 316.8 Supplies 63.1 64.5 Total $ 382.3 $ 497.9 |
Investment in TiO2 Manufacturin
Investment in TiO2 Manufacturing Joint Venture | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investment in TiO2 Manufacturing Joint Venture | Note 5 – Investment in TiO 2 We own a 50% interest in Louisiana Pigment Company, L.P. (LPC). LPC is a manufacturing joint venture whose other 50%-owner is Venator Investments LLC (Venator Investments) (formerly Huntsman P&A Investments LLC). Venator Investments is a wholly-owned subsidiary of Venator Group, of which Venator Materials PLC owns 100% and is the ultimate parent. LPC owns and operates a chloride-process TiO 2 We and Venator Investments are both required to purchase one-half of the TiO 2 2 2 Years ended December 31, 2016 2017 2018 (In millions) Distributions from LPC $ 35.0 $ 44.0 $ 34.3 Contributions to LPC (31.4 ) (50.0 ) (30.3 ) Net distributions (contributions) $ 3.6 $ (6.0 ) $ 4.0 At December 31, 2017, we recorded $1.4 million as a payable to LPC related to contributions due to LPC, and we paid such contribution on January 2, 2018. See Note 15. Summary balance sheets of LPC are shown below: December 31, 2017 2018 (In millions) ASSETS Current assets $ 104.1 $ 87.0 Property and equipment, net 116.1 119.6 Total assets $ 220.2 $ 206.6 LIABILITIES AND PARTNERS' EQUITY Other liabilities, primarily current $ 44.4 $ 41.1 Partners' equity 175.8 165.5 Total liabilities and partners' equity $ 220.2 $ 206.6 Summary income statements of LPC are shown below: Years ended December 31, 2016 2017 2018 (In millions) Revenues and other income: Kronos $ 157.5 $ 157.5 $ 165.9 Venator Investments 157.9 158.3 167.0 Total revenues and other income 315.4 315.8 332.9 Cost and expenses: Cost of sales 314.9 315.4 332.5 General and administrative .5 .4 .4 Total costs and expenses 315.4 315.8 332.9 Net income $ - $ - $ - |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Securities | Note 6 – Marketable securities: Our marketable securities consist of investments in the publicly-traded shares of related parties: Valhi, NL and CompX International Inc. NL owns the majority of CompX’s outstanding common stock. All of our marketable securities are accounted for as available-for-sale securities, which are carried at fair value using quoted market prices in active markets for each marketable security and represent a Level 1 input within the fair value hierarchy. See Note 17. Prior to 2018, any unrealized gains or losses on the securities were recognized through other comprehensive income, net of deferred income taxes. Beginning on January 1, 2018 with the adoption of ASU 2016-01, all of our marketable equity securities continue to be carried at fair value as noted above, but we began recognizing any unrealized gains or losses on the securities in Marketable equity securities on our Consolidated Statements of Income. Marketable security Fair value measurement level Market value Cost basis Unrealized gain (In millions) December 31, 2017: Valhi common stock 1 $ 10.6 $ 3.2 $ 7.4 NL and CompX common stocks 1 .1 .1 - Total $ 10.7 $ 3.3 $ 7.4 December 31, 2018: Valhi common stock 1 $ 3.3 $ 3.2 $ .1 NL and CompX common stocks 1 .1 .1 - Total $ 3.4 $ 3.3 $ .1 At December 31, 2017 and 2018, we held approximately 1.7 million shares of Valhi’s common stock. We also held a nominal number of shares of CompX and NL common stocks. At December 31, 2017 and 2018, the quoted per share market price of Valhi’s common stock was $6.17 and $1.93, respectively. The Valhi, CompX and NL common stocks we own are subject to the restrictions on resale pursuant to certain provisions of the Securities and Exchange Commission (SEC) Rule 144. In addition, as a majority-owned subsidiary of Valhi we cannot vote our shares of Valhi common stock under Delaware General Corporation Law, but we do receive dividends from Valhi on these shares, when declared and paid. |
Other Noncurrent Assets
Other Noncurrent Assets | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Noncurrent Assets | Note 7 – Other noncurrent assets: December 31, 2017 2018 (In millions) Pension asset $ 1.6 $ .8 Deferred financing costs, net 1.1 .9 Other 2.8 1.9 Total $ 5.5 $ 3.6 |
Long-Term debt
Long-Term debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 8 – Long-term debt: December 31, 2017 2018 (In millions) Kronos International, Inc. 3.75% Senior Secured Notes $ 471.1 $ 452.4 Other 3.4 4.2 Total debt 474.5 456.6 Less current maturities .7 1.5 Total long-term debt $ 473.8 $ 455.1 Senior Secured Notes – On September 13, 2017, Kronos International, Inc. (KII), our wholly-owned subsidiary, issued €400 million aggregate principal amount of its 3.75% Senior Secured Notes due September 15, 2025 (Senior Notes), at par value ($477.6 million when issued). We used $338.6 million of the net proceeds of the Senior Notes to prepay in full the outstanding principal balance of our term loan (along with accrued and unpaid interest through the prepayment date) and $21.0 million to repay the then-outstanding balance under our North American revolving credit facility. The remaining net proceeds of the Senior Notes were available for our general corporate purposes. The Senior Notes: • bear interest at 3.75% per annum, payable semi-annually on March 15 and September 15 of each year, payments began on March 15, 2018; • have a maturity date of September 15, 2025. Prior to September 15, 2020, we may redeem some or all of the Senior Notes at a price equal to 100% of the principal amount thereof, plus a “make-whole” premium (as defined in the indenture governing the Senior Notes). On or after September 15, 2020, we may redeem the Senior Notes at redemption prices ranging from 102.813% of the principal amount, declining to 100% on or after September 15, 2023. In addition, on or before September 15, 2020, we may redeem up to 40% of the Senior Notes with the net proceeds of certain public or private equity offerings at 103.75% of the principal amount. If we experience certain specified change of control events, we would be required to make an offer to purchase the Senior Notes at 101% of the principal amount. We would also be required to make an offer to purchase a specified portion of the Senior Notes at par value in the event that we generate a certain amount of net proceeds from the sale of assets outside the ordinary course of business, and such net proceeds are not otherwise used for specified purposes within a specified time period; • are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis by Kronos Worldwide, Inc. and each of our direct and indirect domestic, wholly-owned subsidiaries; • are collateralized by a first priority lien on (i) 100% of the common stock or other ownership interests of each existing and future direct domestic subsidiary of KII and the guarantors, and (ii) 65% of the voting common stock or other ownership interests and 100% of the non-voting common stock or other ownership interests of each non-U.S. subsidiary that is directly owned by KII or any guarantor; • contain a number of covenants and restrictions which, among other things, restrict our ability to incur or guarantee additional debt, incur liens, pay dividends or make other restricted payments, or merge or consolidate with, or sell or transfer substantially all of our assets to, another entity, and contain other provisions and restrictive covenants customary in lending transactions of this type (however, there are no ongoing financial maintenance covenants); and • contain customary default provisions, including a default under any of our other indebtedness in excess of $50.0 million. The carrying value of the Senior Notes at December 31, 2018 is stated net of unamortized debt issuance costs of $6.3 million (December 31, 2017 - $7.5 million). Term loan – During 2016 and the first six months of 2017, we made our required quarterly term loan principal payments aggregating $3.5 million and $1.8 million, respectively, on our prior term loan indebtedness. Concurrent with the issuance of our Senior Notes, in September 2017, we voluntarily prepaid in full the outstanding $338.6 million principal balance of such term loan (and such term loan facility was terminated). As a result of such prepayment, we recognized a loss on prepayment of debt aggregating $7.1 million in the third quarter of 2017 consisting principally of the write-off of unamortized debt issuance costs and original issue discount associated with the term loan of $2.7 million and $.7 million, respectively, and $3.3 million in expense related to the early termination of our interest rate swap contract discussed in Note 17. Funds for the aggregate prepayment were provided by the net proceeds from the Senior Notes discussed above. The average interest rate on the term loan borrowings for the year-to-date period ended September 13, 2017 (the pay-off date) was 4.1%. Revolving credit facilities Revolving North American credit facility – We have a $125 million revolving bank credit facility that, as amended, matures in January 2022. Borrowings under the revolving credit facility are available for our general corporate purposes. Available borrowings on this facility are based on formula-determined amounts of eligible trade receivables and inventories, as defined in the agreement, of certain of our North American subsidiaries less any outstanding letters of credit up to $15 million issued under the facility (with revolving borrowings by our Canadian subsidiary limited to $25 million). Any amounts outstanding under the revolving credit facility bear interest, at our option, at LIBOR plus a margin ranging from 1.5% to 2.0% or at the applicable base rate, as defined in the agreement, plus a margin ranging from .5% to 1.0%. The credit facility is collateralized by, among other things, a first priority lien on the borrowers’ trade receivables and inventories. The facility contains a number of covenants and restrictions which, among other things, restricts the borrowers’ ability to incur additional debt, incur liens, pay dividends or merge or consolidate with, or sell or transfer all or substantially all of their assets to, another entity, contains other provisions and restrictive covenants customary in lending transactions of this type and under certain conditions requires the maintenance of a specified financial covenant (fixed charge coverage ratio, as defined) to be at least 1.0 to 1.0. During 2017, we had gross borrowings and repayments of $253.9 million. The average interest rate on outstanding borrowings for the year-to-date period ended September 13, 2017 when the outstanding balance was repaid was 4.8%. As discussed above, in September 2017 we used a portion of the net proceeds from the Senior Notes to repay our then-outstanding principal balance of $21.0 million. We had no borrowings or repayments under this facility in 2018. At December 31, 2018, there were no outstanding borrowings under this facility and we had approximately $101.3 million available for borrowing under this revolving facility. Revolving European credit facility – Our operating subsidiaries in Germany, Belgium, Norway and Denmark have a €90 million secured revolving bank credit facility that, as amended, matures in September 2022. Outstanding borrowings bear interest at the Euro Interbank Offered Rate (EURIBOR) plus 1.60% per annum. The facility is collateralized by the accounts receivable and inventories of the borrowers, plus a limited pledge of all of the other assets of the Belgian borrower. The facility contains certain restrictive covenants that, among other things, restricts the ability of the borrowers to incur debt, incur liens, pay dividends or merge or consolidate with, or sell or transfer all or substantially all of the assets to, another entity, and requires the maintenance of certain financial ratios. In addition, the credit facility contains customary cross-default provisions with respect to other debt and obligations of the borrowers, KII and its other subsidiaries. We had no borrowings or repayments under this facility during 2017 and 2018 and at December 31, 2018, there were no outstanding borrowings under this facility. Our European revolving credit facility requires the maintenance of certain financial ratios, and one of such requirements is based on the ratio of net debt to last twelve months earnings before income tax, interest, depreciation and amortization expense (EBITDA) of the borrowers. Based upon the borrowers’ last twelve months EBITDA as of December 31, 2018 and the net debt to EBITDA financial test, the full €90 million amount of this facility ($103.2 million) was available for borrowing at December 31, 2018. Aggregate maturities and other – Aggregate maturities of debt at December 31, 2018 are presented in the table below. Year ending December 31, Amount (In 2019 $ 1.5 2020 1.5 2021 .6 2022 .6 2023 - 2024 and thereafter 458.7 Gross maturities 462.9 Less debt issuance costs 6.3 Total $ 456.6 We are in compliance with all of our debt covenants at December 31, 2018. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Note 9 – Accounts payable and accrued liabilities: December 31, 2017 2018 (In millions) Accounts payable $ 107.9 $ 103.2 Accrued sales discounts and rebates 11.7 29.7 Employee benefits 27.0 27.9 Other 43.0 35.0 Total $ 189.6 $ 195.8 |
Defined Contribution and Define
Defined Contribution and Defined Benefit Retirement Plans | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Defined Contribution and Defined Benefit Retirement Plans | Note 10 – Defined contribution and defined benefit retirement plans: Defined contribution plans – We maintain various defined contribution pension plans with our contributions based on matching or other formulas. Defined contribution plan expense approximated $2.8 million in 2016, $2.7 million in 2017 and $3.3 million in 2018. Defined benefit pension plans – We sponsor various defined benefit pension plans. Certain non-U.S. employees are covered by plans in their respective countries. Our U.S. plan was closed to new participants in 1996, and existing participants no longer accrued any additional benefits after that date. The benefits under our plans are based upon years of service and employee compensation. Our funding policy is to contribute annually the minimum amount required under ERISA (or equivalent non-U.S.) regulations plus additional amounts as we deem appropriate. We recognize an asset or liability for the over or under funded status of each of our individual defined benefit pension plans on our Consolidated Balance Sheets. Changes in the funded status of these plans are recognized either in net income, to the extent they are reflected in periodic benefit cost, or through other comprehensive income (loss). We expect to contribute the equivalent of approximately $17 million to all of our defined benefit pension plans during 2019. Benefit payments to plan participants out of plan assets are expected to be the equivalent of: Years ending December 31, Amount (In millions) 2019 $ 23.2 2020 24.4 2021 24.5 2022 25.7 2023 25.6 Next 5 years 149.0 The funded status of our non-U.S. defined benefit pension plans is presented in the table below. December 31, 2017 2018 (In millions) Change in projected benefit obligations (PBO): Benefit obligations at beginning of the year $ 594.1 $ 681.9 Service cost 11.4 11.6 Interest cost 13.2 13.5 Participant contributions 1.5 1.6 Actuarial losses 9.9 5.8 Change in currency exchange rates 72.6 (33.7 ) Benefits paid (20.8 ) (22.0 ) Benefit obligations at end of the year 681.9 658.7 Change in plan assets: Fair value of plan assets at beginning of the year 371.5 433.3 Actual return on plan assets 23.1 (5.6 ) Employer contributions 15.9 16.3 Participant contributions 1.5 1.6 Change in currency exchange rates 42.1 (23.3 ) Benefits paid (20.8 ) (22.0 ) Fair value of plan assets at end of year 433.3 400.3 Funded status $ (248.6 ) $ (258.4 ) Amounts recognized in the balance sheet: Noncurrent pension asset $ 1.6 $ .8 Noncurrent accrued pension costs (250.2 ) (259.2 ) Total $ (248.6 ) $ (258.4 ) Amounts recognized in accumulated other comprehensive loss: Actuarial losses $ 240.2 $ 250.3 Prior service cost 1.4 1.2 Total $ 241.6 $ 251.5 Accumulated benefit obligations (ABO) $ 655.4 $ 633.5 The components of our net periodic defined benefit pension cost for our non-U.S. defined benefit pension plans are presented in the table below. The amounts shown below for the amortization of prior service cost and recognized actuarial losses for 2016, 2017 and 2018 were recognized as components of our accumulated other comprehensive loss at December 31, 2015, 2016 and 2017, respectively, net of deferred income taxes. Years ended December 31, 2016 2017 2018 (In millions) Net periodic pension cost (income): Service cost benefits $ 9.9 $ 11.4 $ 11.6 Interest cost on PBO 14.7 13.2 13.5 Expected return on plan assets (14.4 ) (9.2 ) (12.0 ) Recognized actuarial losses 11.3 13.0 13.1 Amortization of prior service cost .2 .2 .2 Total $ 21.7 $ 28.6 $ 26.4 Information concerning certain of our non-U.S. defined benefit pension plans (for which the ABO exceeds the fair value of plan assets as of the indicated date) is presented in the table below. December 31, 2017 2018 (In millions) Plans for which the ABO exceeds plan assets: PBO $ 625.1 $ 605.0 ABO 603.8 585.0 Fair value of plan assets 375.0 346.3 The weighted-average rate assumptions used in determining the actuarial present value of benefit obligations for our non-U.S. defined benefit pension plans as of December 31, 2017 and 2018 are presented in the table below. December 31, Rate 2017 2018 Discount rate 2.1 % 2.1 % Increase in future compensation levels 2.6 % 2.6 % The weighted-average rate assumptions used in determining the net periodic pension cost for our non-U.S. defined benefit pension plans for 2016, 2017 and 2018 are presented in the table below. Years ended December 31, Rate 2016 2017 2018 Discount rate 2.6 % 2.1 % 2.1 % Increase in future compensation levels 2.9 % 2.6 % 2.6 % Long-term return on plan assets 3.9 % 2.4 % 2.9 % Variances from actuarially assumed rates will result in increases or decreases in accumulated pension obligations, pension expense and funding requirements in future periods. The funded status of our U.S. defined benefit pension plan is presented in the table below. December 31, 2017 2018 (In millions) Change in PBO: Benefit obligations at beginning of the year $ 17.8 $ 18.2 Interest cost .7 .6 Actuarial losses (gains) .7 (.9 ) Benefits paid (1.0 ) (1.0 ) Benefit obligations at end of the year 18.2 16.9 Change in plan assets: Fair value of plan assets at beginning of the year 13.6 14.1 Actual return on plan assets 1.2 (.8 ) Employer contributions .3 .8 Benefits paid (1.0 ) (1.0 ) Fair value of plan assets at end of year 14.1 13.1 Funded status $ (4.1 ) $ (3.8 ) Amounts recognized in the balance sheet: Accrued pension costs: Current $ (.1 ) $ (.1 ) Noncurrent (4.0 ) (3.7 ) Total $ (4.1 ) $ (3.8 ) Amounts recognized in accumulated other comprehensive loss - actuarial losses $ 10.9 $ 11.2 ABO $ 18.2 $ 16.9 The components of our net periodic defined benefit pension cost for our U.S. defined benefit pension plan is presented in the table below. The amounts shown below for recognized actuarial losses for 2016, 2017 and 2018 were recognized as components of our accumulated other comprehensive loss at December 31, 2015, 2016 and 2017 respectively, net of deferred income taxes. Years ended December 31, 2016 2017 2018 (In millions) Net periodic pension cost (income): Interest cost on PBO $ .8 $ .7 $ .6 Expected return on plan assets (1.0 ) (1.0 ) (1.0 ) Recognized actuarial losses .5 .6 .6 Total $ .3 $ .3 $ .2 The discount rate assumptions used in determining the actuarial present value of the benefit obligation for our U.S. defined benefit pension plan as of December 31, 2017 and 2018 are 3.5% and 4.1%, respectively. The impact of assumed increases in future compensation levels does not have an effect on the benefit obligation as the plan is frozen with regards to compensation. The weighted-average rate assumptions used in determining the net periodic pension cost for our U.S. defined benefit pension plan for 2016, 2017 and 2018 are presented in the table below. The impact of assumed increases in future compensation levels also does not have an effect on the periodic pension cost as the plan is frozen with regards to compensation. Years ended December 31, Rate 2016 2017 2018 Discount rate 4.1 % 3.9 % 3.5 % Long-term return on plan assets 7.5 % 7.5 % 7.5 % Variances from actuarially assumed rates will result in increases or decreases in accumulated pension obligations, pension expense and funding requirements in future periods. The amounts shown in the tables above for actuarial losses and prior service cost at December 31, 2017 and 2018 have not yet been recognized as components of our periodic defined benefit pension cost as of those dates. These amounts will be recognized as components of our periodic defined benefit cost in future years and are recognized, net of deferred income taxes, in our accumulated other comprehensive loss at December 2017 and 2018. We expect approximately $14.0 million and $.2 million of the unrecognized actuarial losses and prior service costs, respectively, will be recognized as components of our consolidated net periodic defined benefit pension cost in 2019. The table below details the changes in our consolidated other comprehensive income (loss) during 2016, 2017 and 2018. Years ended December 31, 2016 2017 2018 (In millions) Changes in plan assets and benefit obligations recognized in other comprehensive income (loss): Current year: Net actuarial gain (loss) $ (38.0 ) $ 3.5 $ (24.3 ) Amortization of unrecognized: Net actuarial losses 11.8 13.6 13.7 Prior service cost .2 .2 .2 Total $ (26.0 ) $ 17.3 $ (10.4 ) At December 31, 2017, substantially all of the assets attributable to our U.S. plan were invested in the Combined Master Retirement Trust (CMRT), a collective investment trust sponsored by Contran to permit the collective investment by certain master trusts that fund certain employee benefit plans sponsored by Contran and certain of its affiliates, including us. For 2016, 2017 and 2018, the long-term rate of return assumption for our U.S. plan assets was 7.5%, based on the long-term asset mix of the assets of the CMRT and the expected long-term rates of return for such asset components as well as advice from Contran’s actuaries. During 2018, Contran and the other employer-sponsors (including us) implemented a restructuring of the CMRT, in which a substantial part of each plan’s units in the CMRT were redeemed in exchange for a pro-rata portion of a substantial part of the CMRT’s investments. Following such restructuring, the plans held directly in the aggregate the investments previously held directly by the CMRT which had been exchanged for CMRT units as part of the restructuring. Certain investments held directly by the CMRT were not part of such restructuring and remain investments of the CMRT. Such restructuring was implemented in part so each plan could more easily align the composition of their plan asset portfolio with the plan’s benefit obligations. The CMRT unit value is determined semi-monthly, and prior to the 2018 restructuring, the plans had the ability to redeem all or any portion of their investment in the CMRT at any time based on the most recent semi-monthly valuation. However, the plans do not have the right to individual assets held by the CMRT and the CMRT has the sole discretion in determining how to meet any redemption request. For purposes of our plan asset disclosure, we consider the investment in the CMRT at December 31, 2017 as a Level 2 input because (i) the CMRT value is established semi-monthly and the plans have the right to redeem their investment in the CMRT, in part or in whole, at any time based on the most recent value and (ii) observable inputs from Level 1 or Level 2 (or assets not subject to classification in the fair value hierarchy) were used to value approximately 93% of the assets of the CMRT at December 31, 2017 as noted below. CMRT assets not subject to classification in the fair value hierarchy consist principally of certain investments measured at net asset value (NAV) per share in accordance with ASC 820-10. The aggregate fair value of all of the CMRT assets at December 31, 2017, including funds of Contran and its other affiliates that also invest in the CMRT, and supplemental asset mix details of the CMRT are as follows: December 31, 2017 (In millions) CMRT asset value $ 672.4 CMRT assets comprised of: Assets not subject to fair value hierarchy 31 % Assets subject to fair value hierarchy: Level 1 54 Level 2 8 Level 3 7 100 % CMRT asset mix: Domestic equities, principally publicly traded 33 % International equities, principally publicly traded 25 Fixed income securities, principally publicly traded 31 Privately managed limited partnerships 4 Hedge funds 5 Other, primarily cash 2 100 % The assets which remain in the CMRT are principally common stocks and limited partnerships which are not publicly traded, most of which are categorized within Level 3 of the fair value hierarchy. As monetizing events occur for these investments, we and the other plans which hold units in the CMRT will redeem a portion of our CMRT units for the cash generated from such events. For purposes of our plan asset disclosure, we consider the investment in the CMRT at December 31, 2018 as a Level 3 input because (i) most of the remaining assets in the CMRT are categorized within Level 3 of the fair value hierarchy, and (ii) we do not expect to be able to redeem our remaining CMRT units until monetizing events occur with respect to the remaining CMRT assets. In determining the expected long-term rate of return on our U.S. and non-U.S. plan asset assumptions, we consider the long-term asset mix (e.g. equity vs. fixed income) for the assets for each of our plans and the expected long-term rates of return for such asset components. In addition, we receive third-party advice about appropriate long-term rates of return. Such assumed asset mixes are summarized below: • In Germany, the composition of our plan assets is established to satisfy the requirements of the German insurance commissioner. Our German pension plan assets represent an investment in a large collective investment fund established and maintained by Bayer AG in which several pension plans, including our German pension plans and Bayer’s pension plans, have invested. Our plan assets represent a very nominal portion of the total collective investment fund maintained by Bayer. These plan assets are a Level 3 input because there is not an active market that approximates the value of our investment in the Bayer investment fund. We estimate the fair value of the Bayer plan assets based on periodic reports we receive from the managers of the Bayer plan. These periodic reports are subject to audit by the German pension regulator. • In Canada, we currently have a plan asset target allocation of 20-30% to equity securities and 70-80% to fixed income securities. We expect the long-term rate of return for such investments to average approximately 125 basis points above the applicable equity or fixed income index. The Canadian assets are Level 1 inputs because they are traded in active markets. • In Norway, we currently have a plan asset target allocation of 11% to equity securities, 79% to fixed income securities, 7% to real estate and the remainder primarily to other investments and liquid investments such as money markets. The expected long-term rate of return for such investments is approximately 7%, 3%, 5% and 8%, respectively. The majority of Norwegian plan assets are Level 1 inputs because they are traded in active markets; however approximately 10% of our Norwegian plan assets are invested in real estate and other investments not actively traded and are therefore a Level 3 input. • In the U.S. we currently have a plan asset target allocation of 40% to equity securities, 45% to fixed income securities, and the remainder is allocated to multi-asset strategies and the CMRT. The expected long-term rate of return for such investments is approximately 9%, 5% and 3%, respectively (before plan administrative expenses). The majority of U.S. plan assets are Level 1 inputs because they are traded in active markets, approximately 29% of our U.S. plan assets are invested in funds that are valued at NAV and not subject to classification in the fair value hierarchy, and approximately 6% are invested in the CMRT which as noted above is a Level 3 input. • We also have plan assets in Belgium and the United Kingdom. The Belgium plan assets are invested in certain individualized fixed income insurance contracts for the benefit of each plan participant as required by the local regulators and are therefore a Level 3 input. The United Kingdom plan assets consist of marketable securities which are Level 1 inputs because they trade in active markets. We regularly review our actual asset allocation for each plan, and will periodically rebalance the investments in each plan to more accurately reflect the targeted allocation and/or maximize the overall long-term return when considered appropriate. The composition of our pension plan assets by asset category and fair value level at December 31, 2017 and 2018 is shown in the table below. Fair Value Measurements at December 31, 2017 Total Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (In millions) Germany $ 257.9 $ - $ - $ 257.9 Canada: Local currency equities 8.4 8.4 - - Non local currency equities 16.4 16.4 - - Local currency fixed income 81.8 81.8 - - Cash and other .3 .3 - - Norway: Local currency equities 1.8 1.8 - - Non local currency equities 4.6 4.6 - - Local currency fixed income 21.0 21.0 - - Non local currency fixed income 6.8 6.8 - - Real estate 4.7 - - 4.7 Cash and other 15.4 14.5 - .9 U.S. CMRT 14.1 - 14.1 - Other 14.2 4.1 - 10.1 Total $ 447.4 $ 159.7 $ 14.1 $ 273.6 Fair Value Measurements at December 31, 2018 Total Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets measured at NAV (In millions) Germany $ 241.5 $ - $ - $ 241.5 $ - Canada: Local currency equities 6.5 6.5 - - - Non local currency equities 13.3 13.3 - - - Local currency fixed income 74.1 74.1 - - - Cash and other .5 .5 - - - Norway: Local currency equities 1.7 1.7 - - - Non local currency equities 4.3 4.3 - - - Local currency fixed income 20.4 14.9 5.5 - - Non local currency fixed income 6.1 6.1 - - - Real estate 4.5 - - 4.5 - Cash and other 13.5 12.7 - .8 - U.S. Equities 4.9 1.5 - - 3.4 Fixed income 6.0 6.0 - - - Cash and other 1.5 1.1 - - .4 CMRT .7 - - .7 - Other 13.9 3.4 - 10.5 - Total $ 413.4 $ 146.1 $ 5.5 $ 258.0 $ 3.8 A rollforward of the change in fair value of Level 3 assets follows. December 31, 2017 2018 (In millions) Fair value at beginning of year $ 230.5 $ 273.6 Gain (loss) on assets held at end of year 11.0 (4.6 ) Gain on assets sold during the year .2 - Assets purchased 13.4 14.1 Assets sold (13.8 ) (14.5 ) Transfers in - .7 Currency exchange rate fluctuations 32.3 (11.3 ) Fair value at end of year $ 273.6 $ 258.0 |
Other Noncurrent Liabilities
Other Noncurrent Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Noncurrent Liabilities | Note 11 – Other noncurrent liabilities: December 31, 2017 2018 (In millions) Employee benefits $ 8.5 $ 7.3 Accrued postretirement benefits 7.7 7.4 Other 13.0 14.1 Total $ 29.2 $ 28.8 |
Other Operating Income (Expense
Other Operating Income (Expense), Net | 12 Months Ended |
Dec. 31, 2018 | |
Other Operating Income Expense [Abstract] | |
Other Operating Income (Expense), Net | Note 12 – Other operating income (expense), net: Other operating income (expense), net in 2016 includes income of $3.4 million, recognized in the first and second quarters, related to cash received from settlement of a business interruption insurance claim arising in 2014 and income of $.9 million recognized in the fourth quarter of 2016 related to cash received from settlement of another business interruption insurance claim arising in 2015. No additional material amounts are expected to be received with respect to such insurance claims. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13 – Income taxes: Years ended December 31, 2016 2017 2018 (In millions) Pre-tax income: U.S. $ 11.5 $ 38.6 $ 32.8 Non-U.S. 49.7 267.1 261.0 Total $ 61.2 $ 305.7 $ 293.8 Expected tax expense, at U.S. federal statutory income tax rate of 35% in 2016 and 2017 and 21% in 2018 $ 21.4 $ 107.0 $ 61.7 Non-U.S. tax rates (4.3 ) (13.2 ) 21.0 Incremental net tax expense (benefit) on earnings and losses of U.S. and non-U.S. companies 2.2 (8.4 ) 1.3 Valuation allowance (2.2 ) (205.4 ) - Transition Tax - 76.2 (1.7 ) Global intangible low-tax income, net - - 3.7 Tax rate changes (.1 ) (.2 ) (.2 ) U.S. - Canada APA (3.4 ) - - Canada - Germany APA - - (1.4 ) Adjustment to the reserve for uncertain tax positions, net 2.4 (8.6 ) 2.1 Nondeductible expenses 1.5 1.7 1.6 U.S. state income taxes and other, net .4 2.1 .7 Income tax expense (benefit) $ 17.9 $ (48.8 ) $ 88.8 Components of income tax expense (benefit): Current payable: U.S. federal and state $ - $ 3.0 $ 12.0 Non-U.S. 9.5 37.5 51.1 9.5 40.5 63.1 Noncurrent payable - U.S. federal - 70.1 (1.6 ) Deferred income taxes (benefit): U.S. federal and state 4.3 (13.7 ) (1.8 ) Non-U.S. 4.1 (145.7 ) 29.1 8.4 (159.4 ) 27.3 Income tax expense (benefit) $ 17.9 $ (48.8 ) $ 88.8 Comprehensive provision for income taxes (benefit) allocable to: Net income $ 17.9 $ (48.8 ) $ 88.8 Other comprehensive income (loss): Currency translation - 19.8 - Pension plans (.8 ) 5.6 (3.6 ) OPEB plans (.2 ) (.2 ) (.2 ) Marketable securities 1.3 1.6 - Interest rate swap .2 1.1 - Total $ 18.4 $ (20.9 ) $ 85.0 The amount shown in the above table of our income tax rate reconciliation for non-U.S. tax rates represents the result determined by multiplying the pre-tax earnings or losses of each of our non-U.S. subsidiaries by the difference between the applicable statutory income tax rate for each non-U.S. jurisdiction and the U.S. federal statutory tax rate of 35% in 2016 and 2017 and 21% in 2018. The amount shown on such table for incremental net tax expense on earnings and losses of U.S. and non-U.S. companies includes, as applicable, (i) deferred income taxes (or deferred income tax benefits) associated with the current-year change in the aggregate amount of undistributed earnings of our Canadian subsidiary and, beginning in 2018, deferred income taxes (or deferred income tax benefits) associated with the current-year earnings of all of our non-U.S. subsidiaries (the undistributed earnings of our European subsidiaries were subject to a permanent reinvestment plan until December 31, 2017) and (ii) current U.S. income taxes (or current income tax benefit), including U.S. personal holding company tax, as applicable, attributable to current-year income (losses) of one of our non-U.S. subsidiaries, which subsidiary is treated as a dual resident for U.S. income tax purposes, to the extent the current-year income (losses) of such subsidiary is subject to U.S. income tax under the U.S. dual-resident provisions of the Internal Revenue Code. The components of our net deferred income taxes at December 31, 2017 and 2018 are summarized in the following table. December 31, 2017 2018 Assets Liabilities Assets Liabilities (In millions) Tax effect of temporary differences related to: Inventories $ 3.0 $ (.6 ) $ 4.3 $ (3.1 ) Property and equipment - (57.2 ) - (56.9 ) Accrued OPEB costs 2.2 - 2.1 - Accrued pension costs 69.1 - 73.7 - Other accrued liabilities and deductible differences 10.2 - 10.4 - Other taxable differences - (2.6 ) - (2.4 ) Tax on unremitted earnings of non-U.S. subsidiaries - (9.5 ) - (11.3 ) Tax loss and tax credit carryforwards 116.2 - 86.6 - Valuation allowance (2.9 ) - (2.9 ) - Adjusted gross deferred tax assets (liabilities) 197.8 (69.9 ) 174.2 (73.7 ) Netting by tax jurisdiction (58.6 ) 58.6 (52.2 ) 52.2 Net noncurrent deferred tax asset (liability) $ 139.2 $ (11.3 ) $ 122.0 $ (21.5 ) We have substantial net operating loss (NOL) carryforwards in Germany (the equivalent of $541 million for German corporate tax purposes at December 31, 2018) and in Belgium (the equivalent of $16 million for Belgian corporate tax purposes at December 31, 2018), all of which have an indefinite carryforward period. As a result, we have net deferred income tax assets with respect to these two jurisdictions, primarily related to these NOL carryforwards. The German corporate tax is similar to the U.S. federal income tax, and the German trade tax is similar to the U.S. state income tax (our German trade tax NOLs were fully utilized as of December 31, 2018). Prior to 2017, we concluded that we were required to recognize a non-cash deferred income tax asset valuation allowance under the more-likely-than-not recognition criteria with respect to our German and Belgian net deferred income tax assets. At December 31, 2016 such valuation allowance aggregated $173 million ($153 million with respect to Germany and $20 million with respect to Belgium). During the first six months of 2017, we recognized an aggregate non-cash deferred income tax benefit of $12.7 million as a result of a net decrease in such deferred income tax asset valuation allowance, due to utilizing a portion of both the German and Belgian NOL during the period. At June 30, 2017, we concluded we had sufficient positive evidence under the more-likely-than-not recognition criteria to support reversal of the entire valuation allowance related to our German and Belgian operations. In accordance with the ASC 740-270 guidance regarding accounting for income taxes at interim dates, the amount of the valuation allowance reversed at June 30, 2017 ($149.9 million, of which $141.9 million related to Germany and $8.0 million related to Belgium) associated with our change in judgment at that date regarding the realizability of the related deferred income tax asset as it relates to future years (i.e. 2018 and after). A change in judgment regarding the realizability of deferred tax assets as it relates to the current year is considered in determining the estimated annual effective tax rate for the year and is recognized throughout the year, including interim periods subsequent to the date of the change in judgment. Accordingly, our income tax benefit in calendar year 2017 includes an aggregate non-cash deferred income tax benefit of $186.7 million associated with the reversal of the German and Belgian valuation allowance, comprised of $12.7 million recognized in the first half of 2017 (noted above) associated with the utilization of a portion of both the German and Belgian NOLs during such period, $149.9 million related to the portion of the valuation allowance reversed as of June 30, 2017 and $24.1 million recognized in the second half of 2017 associated with the utilization of a portion of both the German and Belgian NOLs during such period. Our deferred income tax asset valuation allowance increased $13.7 million in 2017 as a result of changes in currency exchange rates, which increase was recognized as part of other comprehensive income (loss). On December 22, 2017, the 2017 Tax Act was enacted into law. This new tax legislation, among other changes, (i) reduced the U.S. Federal corporate income tax rate from 35% to 21% effective January 1, 2018; (ii) implemented a territorial tax system and imposed a one-time repatriation tax (Transition Tax) on the deemed repatriation of the post-1986 undistributed earnings of non-U.S. subsidiaries accumulated up through December 31, 2017, regardless of whether such earnings are repatriated; (iii) eliminated U.S. tax on future non-U.S. earnings (subject to certain exceptions); (iv) eliminated the domestic production activities deduction beginning in 2018; (v) eliminated the net operating loss carryback and provides for an indefinite carryforward period subject to an 80% annual usage limitation; (vi) allows for the expensing of certain capital expenditures; (vii) imposed a tax on global intangible low-tax income (GILTI) beginning in 2018; (viii) imposed a base erosion anti-abuse tax (BEAT) beginning in 2018; and (ix) amended the rules limiting the deduction for business interest expense beginning in 2018. 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 states that companies should account for changes related to the 2017 Tax Act in the period of enactment if all information is available and the accounting can be completed. In situations where companies do not have enough information to complete the accounting in the period of enactment, a company must either 1) record an estimated provisional amount if the impact of the change can be reasonably estimated; or 2) continue to apply the accounting guidance that was in effect immediately prior to the 2017 Tax Act if the impact of the change cannot be reasonably estimated. If estimated provisional amounts are recorded, SAB 118 provides a measurement period of no longer than one year during which companies should adjust those amounts as additional information becomes available in the reporting period within the measurement period in which such adjustment is determined. Under GAAP, we were required to revalue our net deferred tax asset associated with our U.S. net deductible temporary differences in the period in which the new tax legislation is enacted based on deferred tax balances as of the enactment date, to reflect the effect of such 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 deductible temporary differences was based on our net deferred tax asset as of December 31, 2017. Such revaluation was recognized in continuing operations and was not material to us. Prior to the enactment of the 2017 Tax Act, the undistributed earnings of our European subsidiaries were deemed to be permanently reinvested (we had not made a similar determination with respect to the undistributed earnings of our Canadian subsidiary). Pursuant to the Transition Tax provisions imposing a one-time repatriation tax on post-1986 undistributed earnings, we recognized a provisional current income tax expense of $76.2 million in the fourth quarter of 2017. The amounts recorded as of December 31, 2017 as a result of the 2017 Tax Act represented estimates based on information available at that date. We elected to pay such tax over an eight year period beginning in 2018, including approximately $6.1 million which was paid in April 2018 (for the 2017 tax year) and $5.8 million which was paid in 2018 (for the 2018 tax year). During the third quarter of 2018, in conjunction with finalizing our federal income tax return and based on additional information that became available (including proposed regulations issued by the IRS in August 2018 with respect to the Transition Tax), we recognized a provisional income tax benefit of $1.7 million which amount is recorded as a measurement-period adjustment, reducing the provisional income tax expense of $76.2 million recognized in the fourth quarter of 2017. As a result, at December 31, 2018, taking into account the prior Transition Tax installments payments of $11.9 million (noted above), the balance of our unpaid Transition Tax aggregates $62.6 million, which will be paid in quarterly installments over the remainder of the eight year period. Of such $62.6 million, $56.6 million is recorded as a noncurrent payable to affiliate (income taxes payable to Valhi) classified as a noncurrent liability in our Consolidated Balance Sheet at December 31, 2018, and $6.0 million is included with our current payable to affiliate (income taxes payable to Valhi) classified as a current liability (a portion of our noncurrent income tax payable to affiliate was reclassified to our current payable to affiliate for the portion of our 2019 Transition Tax installment due within the next twelve months). We have completed our analysis of the Transition Tax provisions within the prescribed measurement period ending December 22, 2018 pursuant to the guidance under SAB 118. Prior to the enactment of the 2017 Tax Act the undistributed earnings of our European subsidiaries were deemed to be permanently reinvested (we had not made a similar determination with respect to the undistributed earnings of our Canadian subsidiary). As a result of the implementation of a territorial tax system under the 2017 Tax Act, effective January 1, 2018, and the Transition Tax which in effect taxes the post-1986 undistributed earnings of our non-U.S. subsidiaries accumulated up through December 31, 2017, we determined effective December 31, 2017 that all of the post-1986 undistributed earnings of our European subsidiaries are not permanently reinvested. Accordingly, in the fourth quarter of 2017 we recognized an aggregate provisional non-cash deferred income tax expense of $4.5 million based on our reasonable estimates of the U.S. state and non-U.S. income tax and withholding tax liability attributable to all of such previously-considered permanently reinvested undistributed earnings through December 31, 2017. The amounts recorded as of December 31, 2017 as a result of the 2017 Tax Act represented estimates based on information currently available. We have not made any measurement-period adjustments to the provisional amounts recorded at December 31, 2017 for this item during 2018 because no new information became available during the period that required an adjustment. However, we recorded a non-cash deferred income tax expense of $2.4 million for the U.S. state and non-U.S. income tax and withholding tax liability attributable to the 2018 undistributed earnings of our non-U.S. subsidiaries in 2018, including withholding taxes related to the undistributed earnings of our Canadian subsidiary. We have completed our analysis as it relates to the implementation of a territorial tax system under the 2017 Tax Act within the prescribed measurement period ending December 22, 2018 pursuant to the guidance under SAB 118. Under U.S. GAAP, as it relates to the new GILTI tax rules, we are allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into the measurement of our deferred taxes (the “deferred method”). While our future global operations depend on a number of different factors, we do expect to have future U.S. inclusions in taxable income related to GILTI. We did not record any adjustment related to GILTI during the first nine months of 2018 based on our determination that the impact was not material, and based on the guidance available to us at the time. During the fourth quarter of 2018, and taking into consideration proposed regulations issued by the IRS in November 2018 with respect to various related non-U.S. tax credit provisions, we recognized a current cash income tax expense of $3.7 million for GILTI. In conjunction with the issuance of the proposed regulations, taking into consideration the complexities related to an election to recognize deferred taxes for basis differences that are expected to have a GILTI impact in future years, we have concluded that the appropriate accounting policy election for Kronos is to record GILTI tax as a current-period expense when incurred under the period cost method. As such, we have completed our policy election within the prescribed measurement period ended December 22, 2018 pursuant to the guidance under SAB 118. Similarly, we have evaluated the tax impact of BEAT, taking into consideration proposed regulations issued by the IRS in December 2018 with respect to BEAT, and determined that the tax imposed under BEAT has no material impact to us as we have historically not entered into international payments between related parties that are unrelated to cost of goods sold. Our determinations under the GILTI, BEAT and related U.S. tax credit provisions are based on the relevant statutes and guidance provided under the proposed regulations. Given the complexity of the international provisions, it is possible that final regulations could differ from the proposed regulations and materially impact our determinations with respect to such items. Any material change will be recognized in the period in which the final regulations are published. Certain U.S. deferred tax attributes of one of our non-U.S. subsidiaries, which subsidiary is treated as a dual resident for U.S. income tax purposes, were subject to various limitations. As a result, we had previously concluded that a deferred income tax asset valuation allowance was required to be recognized with respect to such subsidiary’s U.S. net deferred income tax asset because such assets did not meet the more-likely-than-not recognition criteria primarily due to (i) the various limitations regarding use of such attributes due to the dual residency; (ii) the dual resident subsidiary had a history of losses and absent distributions from our non-U.S. subsidiaries, which were previously not determinable, such subsidiary was expected to continue to generate losses; and (iii) a limited NOL carryforward period for U.S. tax purposes. Because we had concluded the likelihood of realization of such subsidiary’s net deferred income tax asset was remote, we had not previously disclosed such valuation allowance or the associated amount of the subsidiary’s net deferred income tax assets (exclusive of such valuation allowance). None of our U.S. and non-U.S. tax returns are currently under examination. As a result of prior audits in certain jurisdictions, which are now settled, in 2008 we filed Advance Pricing Agreement Requests with the tax authorities in the U.S., Canada and Germany. These requests have been under review with the respective tax authorities since 2008 and prior to 2016, it was uncertain whether an agreement would be reached between the tax authorities and whether we would agree to execute and finalize such agreements. • During 2016, Contran, as the ultimate parent of our U.S. Consolidated income tax group, executed and finalized an Advance Pricing Agreement with the U.S. Internal Revenue Service and our Canadian subsidiary executed and finalized an Advance Pricing Agreement with the Competent Authority for Canada (collectively, the “U.S.-Canada APA”) effective for tax years 2005 - 2015. Pursuant to the terms of the U.S.-Canada APA, the U.S. and Canadian tax authorities agreed to certain prior year changes to taxable income of our U.S. and Canadian subsidiaries. As a result of such agreed-upon changes, we recognized a $3.4 million current U.S. income tax benefit in 2016. In addition, our Canadian subsidiary incurred a cash income tax payment of approximately CAD $3 million (USD $2.3 million) related to the U.S.-Canada APA, but such payment was fully offset by previously provided accruals, and such income tax was paid in the third quarter of 2017. • During the third quarter of 2017, our Canadian subsidiary executed and finalized an Advance Pricing Agreement with the Competent Authority for Canada (the “Canada-Germany APA”) effective for tax years 2005 - 2017. Pursuant to the terms of the Canada-Germany APA, the Canadian and German tax authorities agreed to certain prior year changes to taxable income of our Canadian and German subsidiaries. As a result of such agreed-upon changes, we reversed a significant portion of our reserve for uncertain tax positions and recognized a non-cash income tax benefit of $8.6 million related to such reversal ($8.1 million recognized in the third quarter of 2017). In addition, we recognized a $2.6 million non-cash income tax benefit related to an increase in our German NOLs and a $.6 million German cash tax refund related to the Canada-Germany APA in the third quarter of 2017. • During the first quarter of 2018, our German subsidiary executed and finalized the related Advance Pricing Agreement with the Competent Authority for Germany (the “Germany-Canada APA”) effective for tax years 2005 - 2017. In the first quarter of 2018, we recognized a net $1.4 million non-cash income tax benefit related to an APA tax settlement payment between our German and Canadian subsidiaries. Tax authorities may in the future examine certain of our U.S. and non-U.S. tax returns and may propose tax deficiencies, including penalties and interest. Because of the inherent uncertainties involved in settlement initiatives and court and tax proceedings, we cannot guarantee that these tax matters, if any, will be resolved in our favor, and therefore our potential exposure, if any, is also uncertain. We believe we have adequate accruals for additional taxes and related interest expense which could ultimately result from tax examinations. We believe the ultimate disposition of tax examinations should not have a material adverse effect on our consolidated financial position, results of operations or liquidity. We accrue interest and penalties on our uncertain tax positions as a component of our provision for income taxes. The amount of interest and penalties we accrued during 2016, 2017 and 2018 was not material and at December 31, 2017 and 2018, we had no accrual for interest and penalties for our uncertain tax positions. The following table shows the changes in the amount of our uncertain tax positions (exclusive of the effect of interest and penalties discussed above) during 2016, 2017 and 2018: Years ended December 31, 2016 2017 2018 (In millions) Changes in unrecognized tax benefits: Unrecognized tax benefits at beginning of year $ 9.7 $ 9.9 $ 2.1 Net increase (decrease): Tax positions taken in prior periods (.1 ) (6.3 ) 1.4 Tax positions taken in current period 2.5 .2 .7 Lapse due to applicable statute of limitations (.2 ) (.1 ) - Settlements with taxing authorities (2.3 ) (2.3 ) - Change in currency exchange rates .3 .7 (.1 ) Unrecognized tax benefits at end of year $ 9.9 $ 2.1 $ 4.1 Our uncertain tax position at December 31, 2018 is classified as a component of our noncurrent deferred tax asset. If our uncertain tax position at December 31, 2018 was recognized, a benefit of $4.1 million would affect our effective income tax rate. We currently estimate that our unrecognized tax benefits will not change materially during the next twelve months. We and Contran file income tax returns in U.S. federal and various state and local jurisdictions. We also file income tax returns in various non-U.S. jurisdictions, principally in Germany, Canada, Belgium and Norway. Our U.S. income tax returns prior to 2015 are generally considered closed to examination by applicable tax authorities. Our non-U.S. income tax returns are generally considered closed to examination for years prior to 2014 for Germany, 2015 for Belgium, 2013 for Canada and 2009 for Norway. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Note 14 – Stockholders’ equity: Long-term incentive compensation plan – Prior to 2016, our board of directors adopted a plan that provides for the award of stock to our board of directors, and up to a maximum of 200,000 shares can be awarded under this plan. We awarded 13,500 shares in 2016, 8,000 shares in 2017 and 5,600 shares in 2018 under this plan. 149,900 shares are available for future award at December 31, 2018. Stock repurchase program – Prior to 2016, our board of directors authorized the repurchase of up to 2.0 million shares of our 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 would use cash on hand or other sources of liquidity to acquire the shares. Repurchased shares will be added to our treasury and cancelled. At December 31, 2018, 1,951,000 shares are available for repurchase under this authorization. Accumulated other comprehensive loss – Changes in accumulated other comprehensive loss for 2016, 2017 and 2018 are presented in the table below. Years ended December 31, 2016 2017 2018 (In millions) Accumulated other comprehensive loss, net of tax: Currency translation: Balance at beginning of year $ (252.0 ) $ (269.6 ) $ (211.9 ) Other comprehensive income (loss) (17.6 ) 57.7 (33.1 ) Balance at end of year $ (269.6 ) $ (211.9 ) $ (245.0 ) Defined benefit pension plans: Balance at beginning of year $ (159.2 ) $ (184.8 ) $ (172.8 ) Other comprehensive income (loss): Amortization of prior service cost and net losses included in net periodic pension cost 8.5 9.8 10.4 Net actuarial gain (loss) arising during year (34.1 ) 2.2 (17.6 ) Balance at end of year $ (184.8 ) $ (172.8 ) $ (180.0 ) OPEB plans: Balance at beginning of year $ 2.1 $ 1.8 $ 1.2 Other comprehensive (income) loss: Amortization of prior service credit and net losses included in net periodic OPEB cost (.4 ) (.3 ) (.3 ) Net actuarial gain (loss) arising during year .1 (.3 ) (.2 ) Balance at end of year $ 1.8 $ 1.2 $ .7 Marketable securities: Balance at beginning of year $ (.6 ) $ 1.8 $ 4.8 Change in accounting principle - - (4.8 ) Balance at beginning of period, as adjusted (.6 ) 1.8 - Other comprehensive income - Unrealized gains arising during the year 2.4 3.0 - Balance at end of year $ 1.8 $ 4.8 $ - Interest rate swap: Balance at beginning of year $ (2.3 ) $ (2.0 ) $ - Other comprehensive income (loss): Unrealized losses arising during the year (2.0 ) (1.5 ) - Less reclassification adjustment for amounts included in earnings 2.3 3.5 - Balance at end of year $ (2.0 ) $ - $ - Total accumulated other comprehensive loss: Balance at beginning of year $ (412.0 ) $ (452.8 ) $ (378.7 ) Change in accounting principle - - (4.8 ) Balance at beginning of period, as adjusted (412.0 ) (452.8 ) (383.5 ) Other comprehensive income (loss) (40.8 ) 74.1 (40.8 ) Balance at end of year $ (452.8 ) $ (378.7 ) $ (424.3 ) See Note 6 for further discussion on our marketable securities, Note 10 for amounts related to our defined benefit pension plans, Note 11 for our OPEB plans and Note 17 for discussion on our interest rate swap contract. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 15 – Related party transactions: We may be deemed to be controlled by Ms. Simmons and Ms. Connelly. See Note 1. Corporations that may be deemed to be controlled by or affiliated with such 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 which resulted in the acquisition by one related party of a publicly-held noncontrolling interest in another related party. While no transactions of the type described above are planned or proposed with respect to us other than as set forth in these financial statements, 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. Receivables from and payables to affiliates are summarized in the table below. December 31, 2017 2018 (In millions) Current receivables from affiliates: LPC $ 8.9 $ 10.2 Income taxes receivable from Valhi 15.3 - Other 3.2 2.8 $ 27.4 $ 13.0 Noncurrent note receivable from Valhi $ 13.6 $ - Current payables to affiliates: LPC $ 16.2 $ 16.7 Income taxes payable to Valhi - 10.4 $ 16.2 $ 27.1 Noncurrent payable to affiliate - income taxes Income taxes payable to Valhi (See Note 13) $ 70.1 $ 56.6 Amounts payable to LPC are generally for the purchase of TiO 2 2 2 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, and when we borrow from related parties, we are generally able to pay a lower rate of interest than we would pay if we had incurred third-party indebtedness. While certain of these loans to affiliates may be of a lesser credit quality than cash equivalent instruments otherwise available to us, we believe we have considered the credit risks in the terms of the applicable loans. In this regard, prior to 2016 we entered into an unsecured revolving demand promissory note with Valhi whereby, as amended, we agreed to loan Valhi up to $60 million. Our loan to Valhi bears interest at prime plus 1.00%, payable quarterly, with all principal due on demand, but in any event no earlier than December 31, 2020. The amount of our outstanding loans to Valhi at any time is at our discretion. At December 31, 2017, we had $13.6 million of outstanding loans to Valhi and at December 31, 2018, we had no outstanding loans to Valhi under this promissory note. Interest income (including unused commitment fees) on our loan to Valhi was $.4 million in each of 2016 and 2017 and $.3 million in 2018. Under the terms of various intercorporate services agreements (ISAs) entered into between us and various related parties, including Contran, employees of one company will provide certain management, tax planning, financial and administrative services to the other company on a fee basis. Such charges are based upon estimates of the time devoted by the employees of the provider of the services to the affairs of the recipient, and the compensation and associated expenses of such persons. Because of the 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. The net ISA fee charged to us is included in selling, general and administrative expense and corporate expense and was $15.2 million in 2016, $16.3 million in 2017 and $21.1 million in 2018. 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 and EWI RE, Inc., each subsidiaries of Valhi, provide for or broker certain insurance policies for Contran and certain of its subsidiaries and affiliates, including ourselves. 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 insurance and reinsurance underwriters and/or assess fees for the policies that they provide or broker. The aggregate premiums paid to Tall Pines and EWI by us and our joint venture were $9.2 million in 2016, $9.3 million in 2017 and $10.4 million in 2018. 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 these relationships with Tall Pines and EWI will continue in 2019. With respect to certain of such jointly-owned 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. Contran and certain of its subsidiaries, including us, participate in a combined information technology data recovery program that Contran provides from a data recovery center that it established. Pursuant to the program, Contran and certain of its subsidiaries, including us, as a group share information technology data recovery services. The program apportions its costs among the participating companies. We paid Contran $.1 million in each of 2016, 2017 and 2018 for such services. We expect that this relationship with Contran will continue in 2019. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 16 – Commitments and contingencies: Environmental matters – Our operations are governed by various environmental laws and regulations. Certain of our operations are and have been engaged in the handling, manufacture or use of substances or compounds that may be considered toxic or hazardous within the meaning of applicable environmental laws and regulations. As with other companies engaged in similar businesses, certain of our past and current operations and products have the potential to cause environmental or other damage. We have implemented and continue to implement various policies and programs in an effort to minimize these risks. Our policy is to maintain compliance with applicable environmental laws and regulations at all of our facilities and to strive to improve our environmental performance. From time to time, we may be subject to environmental regulatory enforcement under U.S. and non-U.S. statutes, the resolution of which typically involves the establishment of compliance programs. It is possible that future developments, such as stricter requirements of environmental laws and enforcement policies thereunder, could adversely affect our production, handling, use, storage, transportation, sale or disposal of such substances. We believe all of our manufacturing facilities are in substantial compliance with applicable environmental laws. Litigation matters – We are involved in various environmental, contractual, product liability, patent (or intellectual property), employment and other claims and disputes incidental to our business. At least quarterly our management discusses and evaluates the status of any pending litigation to which we are a party. The factors considered in such evaluation include, among other things, the nature of such pending cases, the status of such pending cases, the advice of legal counsel and our experience in similar cases (if any). Based on such evaluation, we make a determination as to whether we believe (i) it is probable a loss has been incurred, and if so if the amount of such loss (or a range of loss) is reasonably estimable, or (ii) it is reasonably possible but not probable a loss has been incurred, and if so if the amount of such loss (or a range of loss) is reasonably estimable, or (iii) the probability a loss has been incurred is remote. We have not accrued any amounts for litigation matters because it is not reasonably possible we have incurred a loss that would be material to our consolidated financial condition, results of operations or liquidity. Concentrations of credit risk – Sales of TiO 2 accounted for 93% our net sales in 2016 and 94% in each of 2017 and 2018. The remaining sales result from the mining and sale of ilmenite ore (a raw material used in the sulfate pigment production process), and the manufacture and sale of iron-based water treatment chemicals and certain titanium chemical products (derived from co-products of the TiO 2 production processes). TiO 2 is generally sold to the paint, plastics and paper industries. Such markets are generally considered “quality-of-life” markets whose demand for TiO 2 is influenced by the relative economic well-being of the various geographic regions. We sell TiO 2 to approximately 4,000 customers, with the top ten customers approximating 33% of net sales in 2016, 34% in 2017 and 33% in 2018. One customer, Behr Process Corporation, accounted for approximately 10% of our net sales in 2016. We did not have sales to a single customer comprising 10% or more of our net sales in 2017 and 2018. The table below shows the approximate percentage of our TiO 2 2016 2017 2018 Europe 51 % 50 % 44 % North America 29 % 31 % 37 % Long-term contracts 2 Operating leases – Our principal German operating subsidiary leases the land under its Leverkusen TiO 2 production facility pursuant to a lease with Bayer AG that expires in 2050. The Leverkusen facility itself, which we own and which represents approximately one-third of our current TiO 2 production capacity, is located within Bayer’s extensive manufacturing complex. We periodically establish the amount of rent for the land lease associated with the Leverkusen facility by agreement with Bayer for periods of at least two years at a time. The lease agreement provides for no formula, index or other mechanism to determine changes in the rent for such land lease; rather, any change in the rent is subject solely to periodic negotiation between Bayer and us. We recognize any change in the rent based on such negotiations as part of lease expense starting from the time such change is agreed upon by both parties, as any such change in the rent is deemed “contingent rentals” under GAAP. Under the terms of various supply and services agreements, majority-owned subsidiaries of Bayer provide raw materials, including chlorine, auxiliary and operating materials, utilities and services necessary to operate the Leverkusen facility. These agreements, as amended, expire in 2019 through 2022. We expect to renew these agreements prior to expiration at similar terms and conditions. We also lease various other manufacturing facilities and equipment. Some of the leases contain purchase and/or various term renewal options at fair market and fair rental values, respectively. In most cases we expect that, in the normal course of business, such leases will be renewed or replaced by other leases. Net rent expense approximated $14 million in 2016, $16 million in 2017 and $15 million in 2018. At December 31, 2018, future minimum payments 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 millions) 2019 $ 6.2 2020 5.0 2021 4.2 2022 3.2 2023 2.4 2024 and thereafter 21.5 Total $ 42.5 Approximately $17 million of the $42.5 million aggregate future minimum rental commitments at December 31, 2018 relates to our Leverkusen facility lease discussed above. The minimum commitment amounts for such lease included in the table above for each year through the 2050 expiration of the lease are based upon the current annual rental rate as of December 31, 2018. As discussed above, any change in the rent is based solely on negotiations between Bayer and us, and any such change in the rent is deemed “contingent rentals” under GAAP which is excluded from the future minimum lease payments disclosed above. Income taxes – We and Valhi are a party to a tax sharing agreement providing for the allocation of tax liabilities and tax payments as described in Note 1. Under applicable law, we, along with 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. Valhi has agreed, however, to indemnify us for any liability for income taxes of the Contran Tax Group in excess of our tax liability computed in accordance with the tax sharing agreement. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Note 17 – Financial instruments: The following table summarizes the valuation of our financial instruments recorded on a fair value basis as of December 31, 2017 and 2018: Fair value measurements Total Quoted in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (In millions) Asset: December 31, 2017 - Noncurrent marketable securities (See Note 6) $ 10.7 $ 10.7 $ - $ - December 31, 2018 - Noncurrent marketable securities (See Note 6) $ 3.4 $ 3.4 $ - $ - Our earnings and cash flows are subject to fluctuations due to changes in currency exchange rates and interest rates. Our risk management policy allows for the use of derivative financial instruments to prudently manage exposure to currency exchange rates and interest rates. Derivatives that we use are primarily currency forward contracts and interest rate swaps. We have not entered into these contracts for trading or speculative purposes in the past, nor do we currently anticipate entering into such contracts for trading or speculative purposes in the future. Currency forward contracts – Certain of our sales generated by our non-U.S. operations are denominated in U.S. dollars. We periodically use currency forward contracts to manage a very nominal portion of currency exchange rate risk associated with trade receivables denominated in a currency other than the holder’s functional currency or similar exchange rate risk associated with future sales. Derivatives used to hedge forecasted transactions and specific cash flows associated with financial assets and liabilities denominated in currencies other than the U.S. dollar and which meet the criteria for hedge accounting are designated as cash flow hedges. Consequently, the effective portion of gains and losses is deferred as a component of accumulated other comprehensive income and is recognized in earnings at the time the hedged item affects earnings. Contracts that do not meet the criteria for hedge accounting are marked-to-market at each balance sheet date with any resulting gain or loss recognized in income currently as part of net currency transaction gains and losses. The fair value of the currency forward contracts is determined using Level 1 inputs based on the currency spot forward rates quoted by banks or currency dealers. At December 31, 2017 and 2018, we had no currency forward contracts outstanding. We did not use hedge accounting for any of our contracts to the extent we held such contracts during 2016, 2017 and 2018. Interest rate swap contract – As part of our interest rate risk management strategy, in August 2015 we entered into a pay-fixed/receive-variable interest rate swap contract with Wells Fargo Bank, N.A. to minimize our exposure to volatility in LIBOR as it related to our forecasted outstanding variable-rate indebtedness. Under this interest rate swap, we paid a fixed rate of 2.016% per annum, payable quarterly, and received a variable rate of three-month LIBOR (subject to a 1.00% floor), also payable quarterly, in each case based on the notional amount of the swap then outstanding. The effective date of the swap contract was September 30, 2015. The notional amount of the swap started at $344.8 million and declined by $875,000 each quarter beginning December 31, 2015, with an original final maturity of the swap contract in February 2020. This swap contract was designated as a cash flow hedge and qualified as an effective hedge at inception under ASC Topic 815 in respect to our term loan indebtedness. The effective portion of changes in fair value on this interest rate swap was recorded as a component of other comprehensive income, net of deferred income taxes. Commencing in the fourth quarter of 2015, as interest expense accrued on LIBOR-based variable rate debt, we classified the amount we paid under the pay-fixed leg of the swap and the amount we received under the receive-variable leg of the swap as part of interest expense (as well as part of the amount we report as cash paid for interest in our Consolidated Statements of Cash Flows), with the net effect that the amount of interest expense we recognized on our LIBOR-based variable rate debt each quarter, as it relates to the notional amount of the swap outstanding each quarter, was based on a fixed rate of 2.016% per annum in lieu of the level of LIBOR prevailing during the quarter. In September 2017, in connection with the voluntary prepayment and termination of our term loan discussed in Note 8, we voluntarily terminated this swap contract, as we no longer had any exposure to volatility in respect of LIBOR. The cost to us to early terminate the swap contract was $3.3 million, which we paid to Wells Fargo concurrent with the termination. Such $3.3 million expense is classified as part of our loss on prepayment of debt in our Consolidated Statement of Income for the year ended December 31, 2017 and discussed in Note 8. Such $3.3 million amount is also classified as part of the cash paid for interest disclosed in our Consolidated Statement of Cash Flows for the year ended December 31, 2017. During 2016 and 2017 (prior to the termination of the interest rate swap contract), a pretax unrealized loss arising during the periods of $3.1 million and $2.3 million, respectively, was recognized in other comprehensive loss related to the interest rate swap. During such periods, $3.5 million and $2.1 million, respectively, were reclassified from accumulated other comprehensive loss into earnings and are included in interest expense in our Consolidated Statements of Income. From the inception of the swap until the swap contract termination, there had been no gains or losses recognized in earnings representing hedge ineffectiveness with respect to the interest rate swap. Other – The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure as of December 31, 2017 and 2018. December 31, 2017 December 31, 2018 Carrying amount Fair value Carrying amount Fair value (In millions) Cash, cash equivalents and restricted cash $ 323.7 $ 323.7 $ 374.7 $ 374.7 Long-term debt - Fixed rate Senior Notes 471.1 495.1 452.4 412.9 Common stockholders' equity 754.3 2,986.8 839.8 1,335.3 At December 31, 2018, the estimated market price of our Senior Notes was €900 per €1,000 principal amount. The fair value of our Senior Notes was based on quoted market prices; however, these quoted market prices represented Level 2 inputs because the markets in which the Senior Notes trade were not active. The fair value of our common stockholders’ equity is based upon quoted market prices at each balance sheet date, which represent Level 1 inputs. Due to their near-term maturities, the carrying amounts of accounts receivable and accounts payable are considered equivalent to fair value. See Notes 3 and 9. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2018 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Note 18 – Recent accounting pronouncements: Adopted On January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) On January 1, 2018, we adopted ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In March 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost Pending Adoption In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) |
Quarterly Results of Operations
Quarterly Results of Operations | 12 Months Ended |
Dec. 31, 2018 | |
Selected Quarterly Financial Information [Abstract] | |
Quarterly Results of Operations | Note 19 – Quarterly results of operations (unaudited): Quarter ended March June September December (In millions, except per share data) Year ended December 31, 2017 Net sales $ 369.8 $ 441.4 $ 464.5 $ 453.3 Gross margin 106.0 132.4 155.0 176.3 Net income 36.8 196.5 73.8 47.4 Basic and diluted income per share $ .32 $ 1.70 $ .64 $ .41 Year ended December 31, 2018 Net sales $ 430.4 $ 471.8 $ 410.3 $ 349.4 Gross margin 174.8 171.8 119.1 96.5 Net income 70.7 77.7 32.6 24.0 Basic and diluted income per share $ .61 $ .67 $ .28 $ .21 We recognized the following amounts during 2017: • pre-tax charge of $7.1 million in the third quarter related to the loss on prepayment of debt (see Note 8), • non-cash deferred income tax benefit of $5.0 million, $157.6 million, $7.8 million and $16.3 million in the first, second, third and fourth quarters, respectively, as a result of the reversal of our deferred income tax asset valuation allowances associated with our German and Belgian operations (see Note 13), • provisional current income tax expense of $76.2 million in the fourth quarter as a result of the 2017 Tax Act for the one-time repatriation tax imposed on the post-1986 undistributed earnings of our non-U.S. subsidiaries (see Note 13), • non-cash deferred income tax benefit of $18.7 million as a result of the reversal of our deferred income tax asset valuation allowance related to certain U.S. deferred income tax assets of one of our non-U.S. subsidiaries (which subsidiary is treated as a dual resident for U.S. income tax purposes) (see Note 13), • aggregate income tax benefit of $11.8 million related to the execution and finalization of an Advance Pricing Agreement between Canada and Germany, mostly in the third quarter (see Note 13), and • aggregate provisional non-cash deferred income tax expense of $4.5 million in the fourth quarter related to a change in our conclusions regarding our permanent reinvestment assertion with respect to the post-1986 undistributed earnings of our European subsidiaries (see Note 13). We recognized the following amounts during 2018: • current cash income tax expense of $3.7 million in the fourth quarter of 2018 related to GILTI (see Note 13), • non-cash income tax expense of $1.4 million and $.7 million in the first and fourth quarters, respectively, related to an increase in our reserve for uncertain tax positions (see Note 13). 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, 2018 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization and basis of presentation At December 31, 2018, Valhi, Inc. (NYSE: VHI) held approximately 50% of our outstanding common stock and a wholly-owned subsidiary of NL Industries, Inc. (NYSE: NL) held approximately 30% of our common stock. Valhi owned approximately 83% of NL’s outstanding common stock and a wholly-owned subsidiary of Contran Corporation held approximately 92% 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 Kronos Worldwide, Inc. and its subsidiaries, taken as a whole. |
Management's Estimates | Management’s 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 the date of the financial statements, and the reported amount of revenues and expenses during the reporting period. Actual results may differ significantly from previously-estimated amounts under different assumptions or conditions. |
Principles of Consolidation | Principles of consolidation – The consolidated financial statements include our accounts and those of our majority-owned subsidiaries. We have eliminated all material intercompany accounts and balances. |
Translation of Currencies | Translation of currencies – We translate the assets and liabilities of our subsidiaries whose functional currency is other than the U.S. dollar at year-end exchange rates, while we translate our revenues and expenses at average exchange rates prevailing during the year. We accumulate the resulting translation adjustments in stockholders’ equity as part of accumulated other comprehensive loss, net of related deferred income taxes. We recognize currency transaction gains and losses in income currently. |
Derivatives and Hedging Activities | Derivatives and hedging activities – We recognize derivatives as either assets or liabilities measured at fair value. We recognize the effect of changes in the fair value of derivatives either in net income or other comprehensive income (loss), depending on the intended use of the derivative. See Note 17. |
Cash and Cash Equivalents | Cash and cash equivalents – We classify bank time deposits and U.S. Treasury securities purchased under short-term agreements to resell with original maturities of three months or less as cash equivalents. |
Restricted Cash | Restricted cash – We classify cash that has been segregated or is otherwise limited in use as restricted. Such restrictions or limitations relate to certain Norwegian payroll tax and employee benefit obligations. To the extent the restricted amount relates to a recognized liability, we classify such restricted amount as either a current or noncurrent asset to correspond with the classification of the liability. To the extent the restricted amount does not relate to a recognized liability, we classify restricted cash as a current asset. All of our restricted cash is classified as a current asset and is separately presented on the face of the statement of financial position. |
Marketable Securities and Securities Transactions | Marketable securities and securities transactions – We carry marketable securities at fair value. Accounting Standard Codification (ASC) Topic 820, Fair Value Measurements and Disclosures , establishes a consistent framework for measuring fair value and (with certain exceptions) this framework is generally applied to all financial statement items required to be measured at fair value. The standard requires fair value measurements to be classified and disclosed in one of the following three categories: • Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2 – Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the assets or liability; and • Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable. We classify all of our marketable securities as available-for-sale. Prior to 2018, any unrealized gains or losses on the securities were recognized through other comprehensive income, net of deferred income taxes. Beginning on January 1, 2018 with the adoption of ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition of Financial Assets and Financial Liabilities See Notes 6, 10 and 17. |
Accounts Receivable | Accounts receivable – We provide an allowance for doubtful accounts for known and estimated potential losses arising from sales to customers based on a periodic review of these accounts. See Note 3. |
Inventories and Cost of Sales | Inventories and cost of sales – We state inventories at the lower of cost or net realizable value, 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, depreciation, and salaries and benefits associated with our manufacturing process. We allocate fixed manufacturing overheads 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. See Note 4. |
Investment in TiO2 Manufacturing Joint Venture | Investment in TiO 2 manufacturing joint venture We account for our investment in a 50%-owned manufacturing joint venture by the equity method |
Property and Equipment and Depreciation | Property and equipment and depreciation – We state property and equipment at cost, including capitalized interest on borrowings during the actual construction period of major capital projects. Capitalized interest costs were $.9 million in 2016, $2.0 million in 2017 and $.8 million in 2018. We compute depreciation of property and equipment for financial reporting purposes (including mining equipment) principally by the straight-line method over the estimated useful lives of the assets as follows: Asset Useful lives Buildings and improvements 10 to 40 years Machinery and equipment 3 to 20 years Mine development costs units-of-production We use accelerated depreciation methods for income tax purposes, as permitted. Upon the sale or retirement of an asset, we remove the related cost and accumulated depreciation from the accounts and recognize any gain or loss in income currently. We expense costs incurred for maintenance, repairs and minor renewals (including planned major maintenance) while we capitalize expenditures for major improvements. We have a governmental concession with an unlimited term to operate our ilmenite mines in Norway. Mining properties consist of buildings and equipment used in our Norwegian ilmenite mining operations. While we own the land and ilmenite reserves associated with the mining operations, such land and reserves were acquired for nominal value and we have no material asset recognized for the land and reserves related to our mining operations. 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 (exclusive of interest expense) associated with the asset to the asset’s net carrying value to determine if a write-down to fair value or discounted cash flow value is required. |
Long-term Debt | Long-term debt – We state long-term debt net of any unamortized original issue premium, discount or deferred financing costs (other than deferred financing costs associated with revolving credit facilities, which are recognized as an asset). We classify amortization of all deferred financing costs and any premium or discount associated with the issuance of indebtedness as interest expense and compute such amortization by either the interest method or the straight-line method over the term of the applicable issue. See Note 8. |
Employee Benefit Plans | Employee benefit plans – Accounting and funding policies for our defined benefit pension and defined contribution retirement plans are described in Note 10. We also provide certain postretirement benefits other than pensions (OPEB), consisting of health care and life insurance benefits, to certain U.S. and Canadian retired employees, which are not material. See Note 11. Defined contribution plans – We maintain various defined contribution pension plans with our contributions based on matching or other formulas. Defined contribution plan expense approximated $2.8 million in 2016, $2.7 million in 2017 and $3.3 million in 2018. Defined benefit pension plans – We sponsor various defined benefit pension plans. Certain non-U.S. employees are covered by plans in their respective countries. Our U.S. plan was closed to new participants in 1996, and existing participants no longer accrued any additional benefits after that date. The benefits under our plans are based upon years of service and employee compensation. Our funding policy is to contribute annually the minimum amount required under ERISA (or equivalent non-U.S.) regulations plus additional amounts as we deem appropriate. We recognize an asset or liability for the over or under funded status of each of our individual defined benefit pension plans on our Consolidated Balance Sheets. Changes in the funded status of these plans are recognized either in net income, to the extent they are reflected in periodic benefit cost, or through other comprehensive income (loss). |
Income Taxes | Income taxes – We, Valhi and our qualifying subsidiaries are members of Contran’s consolidated U.S. federal income tax group (the Contran Tax Group) and we and certain of our qualifying subsidiaries also file consolidated income tax returns with Contran in various 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 16. 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 using the tax elections made by Contran. Pursuant to the tax sharing agreement, we make payments to or receive payments from Valhi 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. We made net payments of income taxes to Valhi of $.8 million in 2016 and $16.8 million in 2017 and received net refunds of income taxes from Valhi of $1.9 million in 2018. We recognize deferred income tax assets and liabilities for the expected future tax consequences of temporary differences between the income tax and financial reporting carrying amounts of assets and liabilities, including investments in our subsidiaries and affiliates who are not members of the Contran Tax Group and undistributed earnings of non-U.S. subsidiaries which are not deemed to be permanently reinvested. At December 31, 2018, we continue to assert indefinite reinvestment as it relates to our outside basis difference attributable to our investments in our non-U.S. subsidiaries, other than post-1986 undistributed earnings of our European subsidiaries and all undistributed earnings of our Canadian subsidiary, which are not subject to permanent reinvestment plans. It is currently not practical for us to determine the amount of the unrecognized deferred income tax liability related to our investments in our non-U.S. subsidiaries which are permanently reinvested due to the complexities associated with our organizational structure, changes in the Tax Cuts and Jobs Act (2017 Tax Act) enacted on December 22, 2017, and the U.S. taxation of such investments in the states in which we operate. 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 such deferred tax assets that we believe does not meet the more-likely-than-not recognition criteria. |
Income Tax Uncertainties | We account for the tax effects of a change in tax law as a component of the income tax provision related to continuing operations in the period of enactment, including the tax effects of any deferred income taxes originally established through a financial statement component other than continuing operations (i.e. other comprehensive income). Changes in applicable income tax rates over time as a result of changes in tax law, or times in which a deferred income tax asset valuation allowance is initially recognized in one year and subsequently reversed in a later year, can give rise to “stranded” tax effects in accumulated other comprehensive income in which the net accumulated income tax (benefit) remaining in accumulated other comprehensive income does not correspond to the then-applicable income tax rate applied to the pre-tax amount which resides in accumulated other comprehensive income. As permitted by GAAP, our accounting policy is to remove any such stranded tax effect remaining in accumulated other comprehensive income, by recognizing an offset to our provision for income taxes related to continuing operations, only at the time when there is no remaining pre-tax amount in accumulated other comprehensive income. For accumulated other comprehensive income related to currency translation, this would occur only upon the sale or complete liquidation of one of our non-U.S. subsidiaries. For defined pension benefit plans and OPEB plans, this would occur whenever one of our subsidiaries which previously sponsored a defined benefit pension or OPEB plan had terminated such a plan and had no future obligation or plan asset associated with such a plan. We record a reserve for uncertain tax positions for tax positions where we believe that it is more-likely-than-not our position will not prevail with the applicable tax authorities. The amount of the benefit associated with our uncertain tax positions that we recognize is limited to the largest amount for which we believe the likelihood of realization is greater than 50%. We accrue penalties and interest on the difference between tax positions taken on our tax returns and the amount of benefit recognized for financial reporting purposes. We classify our reserves for uncertain tax positions in a separate current or noncurrent liability, depending on the nature of the tax position. See Note 13. |
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 acceptance 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 ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , see Note 18, we record revenue when we satisfy our performance obligation 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 is 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) that are considered fulfillment activities, and accordingly, such costs are accrued when the related revenue is recognized. Sales arrangements with consignment customers occur when our product is shipped to a consignment customer location but we maintain control until the product is used in the customer’s manufacturing process. In these instances, we recognize sales when the consignment customer uses our product, as control of our product has not passed to the customer until that time and all other revenue recognition criteria have been satisfied. 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 customer). 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 ASU 2014-09 and have not assessed whether a contract has a significant financing component. We state sales net of price, early payment, and distributor discounts and volume rebates (collectively, variable consideration). Variable consideration, to the extent present, 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. Amounts received or receivable from our customers with respect to variable consideration we expect to refund to our customers is recognized as a current liability and classified as accrued sales discounts and rebates. See Note 9. 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 ASU 2014-09, 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 place of manufacture (point of origin) and to the location of the customer (point of destination). See Note 2. |
Selling, General and Administrative Expense | Selling, general and administrative expense; shipping and handling costs – Selling, general and administrative expense includes costs related to marketing, sales, distribution, shipping and handling, research and development, legal and administrative functions such as accounting, treasury and finance, and includes costs for salaries and benefits not associated with our manufacturing process, travel and entertainment, promotional materials and professional fees. |
Shipping and Handling Costs | We include shipping and handling costs in selling, general and administrative expense and these costs were $90 million in 2016, $101 million in 2017 and $105 million in 2018. |
Research and Development | We expense research and development costs as incurred, and these costs were $13 million in 2016, $18 million in 2017 and $16 million in 2018. |
Advertising Costs | We expense advertising costs as incurred and these costs were not material in any year presented. |
Concentrations of credit risk | Concentrations of credit risk – Sales of TiO 2 accounted for 93% our net sales in 2016 and 94% in each of 2017 and 2018. The remaining sales result from the mining and sale of ilmenite ore (a raw material used in the sulfate pigment production process), and the manufacture and sale of iron-based water treatment chemicals and certain titanium chemical products (derived from co-products of the TiO 2 production processes). TiO 2 is generally sold to the paint, plastics and paper industries. Such markets are generally considered “quality-of-life” markets whose demand for TiO 2 is influenced by the relative economic well-being of the various geographic regions. We sell TiO 2 to approximately 4,000 customers, with the top ten customers approximating 33% of net sales in 2016, 34% in 2017 and 33% in 2018. One customer, Behr Process Corporation, accounted for approximately 10% of our net sales in 2016. We did not have sales to a single customer comprising 10% or more of our net sales in 2017 and 2018. The table below shows the approximate percentage of our TiO 2 2016 2017 2018 Europe 51 % 50 % 44 % North America 29 % 31 % 37 % |
Operating leases | Operating leases – Our principal German operating subsidiary leases the land under its Leverkusen TiO 2 production facility pursuant to a lease with Bayer AG that expires in 2050. The Leverkusen facility itself, which we own and which represents approximately one-third of our current TiO 2 production capacity, is located within Bayer’s extensive manufacturing complex. We periodically establish the amount of rent for the land lease associated with the Leverkusen facility by agreement with Bayer for periods of at least two years at a time. The lease agreement provides for no formula, index or other mechanism to determine changes in the rent for such land lease; rather, any change in the rent is subject solely to periodic negotiation between Bayer and us. We recognize any change in the rent based on such negotiations as part of lease expense starting from the time such change is agreed upon by both parties, as any such change in the rent is deemed “contingent rentals” under GAAP. Under the terms of various supply and services agreements, majority-owned subsidiaries of Bayer provide raw materials, including chlorine, auxiliary and operating materials, utilities and services necessary to operate the Leverkusen facility. These agreements, as amended, expire in 2019 through 2022. We expect to renew these agreements prior to expiration at similar terms and conditions. We also lease various other manufacturing facilities and equipment. Some of the leases contain purchase and/or various term renewal options at fair market and fair rental values, respectively. In most cases we expect that, in the normal course of business, such leases will be renewed or replaced by other leases. Net rent expense approximated $14 million in 2016, $16 million in 2017 and $15 million in 2018. At December 31, 2018, future minimum payments 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 millions) 2019 $ 6.2 2020 5.0 2021 4.2 2022 3.2 2023 2.4 2024 and thereafter 21.5 Total $ 42.5 Approximately $17 million of the $42.5 million aggregate future minimum rental commitments at December 31, 2018 relates to our Leverkusen facility lease discussed above. The minimum commitment amounts for such lease included in the table above for each year through the 2050 expiration of the lease are based upon the current annual rental rate as of December 31, 2018. As discussed above, any change in the rent is based solely on negotiations between Bayer and us, and any such change in the rent is deemed “contingent rentals” under GAAP which is excluded from the future minimum lease payments disclosed above. |
New Accounting Pronouncements, Policy | Adopted On January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) On January 1, 2018, we adopted ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In March 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost Pending Adoption In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Estimated Useful Life of Assets | Property and equipment and depreciation – We state property and equipment at cost, including capitalized interest on borrowings during the actual construction period of major capital projects. Capitalized interest costs were $.9 million in 2016, $2.0 million in 2017 and $.8 million in 2018. We compute depreciation of property and equipment for financial reporting purposes (including mining equipment) principally by the straight-line method over the estimated useful lives of the assets as follows: Asset Useful lives Buildings and improvements 10 to 40 years Machinery and equipment 3 to 20 years Mine development costs units-of-production |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segments Geographical Areas [Abstract] | |
Net Sales and Property and Equipment by Geographical Information | For geographic information, we attribute net sales to the place of manufacture (point of origin) and to the location of the customer (point of destination); we attribute property and equipment to their physical location. Years ended December 31, 2016 2017 2018 (In millions) Net sales - point of origin: Germany $ 699.8 $ 918.6 $ 886.1 United States 664.2 841.8 839.4 Canada 257.7 309.2 307.2 Belgium 187.4 279.9 272.2 Norway 164.8 216.4 209.6 Eliminations (609.6 ) (836.9 ) (852.6 ) Total $ 1,364.3 $ 1,729.0 $ 1,661.9 Net sales - point of destination: Europe $ 697.6 $ 898.8 $ 817.2 North America 413.2 519.4 542.0 Other 253.5 310.8 302.7 Total $ 1,364.3 $ 1,729.0 $ 1,661.9 December 31, 2017 2018 (In millions) Identifiable assets - net property and equipment: Germany $ 243.2 $ 232.1 Belgium 96.5 94.8 Norway 79.6 79.3 Canada 67.9 65.2 Other 19.2 15.0 Total $ 506.4 $ 486.4 |
Accounts and Other Receivables
Accounts and Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Accounts and Other Receivables | December 31, 2017 2018 (In millions) Trade receivables $ 301.4 $ 273.3 Recoverable VAT and other receivables 19.0 23.8 Refundable income taxes .1 3.6 Allowance for doubtful accounts (1.4 ) (1.2 ) Total $ 319.1 $ 299.5 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | December 31, 2017 2018 (In millions) Raw materials $ 106.9 $ 93.1 Work in process 20.8 23.5 Finished products 191.5 316.8 Supplies 63.1 64.5 Total $ 382.3 $ 497.9 |
Investment in TiO2 Manufactur_2
Investment in TiO2 Manufacturing Joint Venture (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Louisiana Pigment Company, L.P. | |
Schedule of Equity Method Investments [Line Items] | |
Summary of Net Cash Distributions, Balance Sheets and Income Statements | Years ended December 31, 2016 2017 2018 (In millions) Distributions from LPC $ 35.0 $ 44.0 $ 34.3 Contributions to LPC (31.4 ) (50.0 ) (30.3 ) Net distributions (contributions) $ 3.6 $ (6.0 ) $ 4.0 At December 31, 2017, we recorded $1.4 million as a payable to LPC related to contributions due to LPC, and we paid such contribution on January 2, 2018. See Note 15. Summary balance sheets of LPC are shown below: December 31, 2017 2018 (In millions) ASSETS Current assets $ 104.1 $ 87.0 Property and equipment, net 116.1 119.6 Total assets $ 220.2 $ 206.6 LIABILITIES AND PARTNERS' EQUITY Other liabilities, primarily current $ 44.4 $ 41.1 Partners' equity 175.8 165.5 Total liabilities and partners' equity $ 220.2 $ 206.6 Summary income statements of LPC are shown below: Years ended December 31, 2016 2017 2018 (In millions) Revenues and other income: Kronos $ 157.5 $ 157.5 $ 165.9 Venator Investments 157.9 158.3 167.0 Total revenues and other income 315.4 315.8 332.9 Cost and expenses: Cost of sales 314.9 315.4 332.5 General and administrative .5 .4 .4 Total costs and expenses 315.4 315.8 332.9 Net income $ - $ - $ - |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Classification of Marketable Securities | Marketable security Fair value measurement level Market value Cost basis Unrealized gain (In millions) December 31, 2017: Valhi common stock 1 $ 10.6 $ 3.2 $ 7.4 NL and CompX common stocks 1 .1 .1 - Total $ 10.7 $ 3.3 $ 7.4 December 31, 2018: Valhi common stock 1 $ 3.3 $ 3.2 $ .1 NL and CompX common stocks 1 .1 .1 - Total $ 3.4 $ 3.3 $ .1 |
Other Noncurrent Assets (Tables
Other Noncurrent Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Other Noncurrent Assets | December 31, 2017 2018 (In millions) Pension asset $ 1.6 $ .8 Deferred financing costs, net 1.1 .9 Other 2.8 1.9 Total $ 5.5 $ 3.6 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Components of Long Term Debt | December 31, 2017 2018 (In millions) Kronos International, Inc. 3.75% Senior Secured Notes $ 471.1 $ 452.4 Other 3.4 4.2 Total debt 474.5 456.6 Less current maturities .7 1.5 Total long-term debt $ 473.8 $ 455.1 |
Aggregate Maturities of Long-Term Debt and Other | Aggregate maturities and other – Aggregate maturities of debt at December 31, 2018 are presented in the table below. Year ending December 31, Amount (In 2019 $ 1.5 2020 1.5 2021 .6 2022 .6 2023 - 2024 and thereafter 458.7 Gross maturities 462.9 Less debt issuance costs 6.3 Total $ 456.6 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables And Accruals [Abstract] | |
Components of Accounts Payable and Accrued Liabilities | December 31, 2017 2018 (In millions) Accounts payable $ 107.9 $ 103.2 Accrued sales discounts and rebates 11.7 29.7 Employee benefits 27.0 27.9 Other 43.0 35.0 Total $ 189.6 $ 195.8 |
Defined Contribution and Defi_2
Defined Contribution and Defined Benefit Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Funded Status of Defined Benefit Plan | The funded status of our non-U.S. defined benefit pension plans is presented in the table below. December 31, 2017 2018 (In millions) Change in projected benefit obligations (PBO): Benefit obligations at beginning of the year $ 594.1 $ 681.9 Service cost 11.4 11.6 Interest cost 13.2 13.5 Participant contributions 1.5 1.6 Actuarial losses 9.9 5.8 Change in currency exchange rates 72.6 (33.7 ) Benefits paid (20.8 ) (22.0 ) Benefit obligations at end of the year 681.9 658.7 Change in plan assets: Fair value of plan assets at beginning of the year 371.5 433.3 Actual return on plan assets 23.1 (5.6 ) Employer contributions 15.9 16.3 Participant contributions 1.5 1.6 Change in currency exchange rates 42.1 (23.3 ) Benefits paid (20.8 ) (22.0 ) Fair value of plan assets at end of year 433.3 400.3 Funded status $ (248.6 ) $ (258.4 ) Amounts recognized in the balance sheet: Noncurrent pension asset $ 1.6 $ .8 Noncurrent accrued pension costs (250.2 ) (259.2 ) Total $ (248.6 ) $ (258.4 ) Amounts recognized in accumulated other comprehensive loss: Actuarial losses $ 240.2 $ 250.3 Prior service cost 1.4 1.2 Total $ 241.6 $ 251.5 Accumulated benefit obligations (ABO) $ 655.4 $ 633.5 December 31, 2017 2018 (In millions) Change in PBO: Benefit obligations at beginning of the year $ 17.8 $ 18.2 Interest cost .7 .6 Actuarial losses (gains) .7 (.9 ) Benefits paid (1.0 ) (1.0 ) Benefit obligations at end of the year 18.2 16.9 Change in plan assets: Fair value of plan assets at beginning of the year 13.6 14.1 Actual return on plan assets 1.2 (.8 ) Employer contributions .3 .8 Benefits paid (1.0 ) (1.0 ) Fair value of plan assets at end of year 14.1 13.1 Funded status $ (4.1 ) $ (3.8 ) Amounts recognized in the balance sheet: Accrued pension costs: Current $ (.1 ) $ (.1 ) Noncurrent (4.0 ) (3.7 ) Total $ (4.1 ) $ (3.8 ) Amounts recognized in accumulated other comprehensive loss - actuarial losses $ 10.9 $ 11.2 ABO $ 18.2 $ 16.9 |
Components of Net Periodic Benefit Cost (Credit) | The components of our net periodic defined benefit pension cost for our non-U.S. defined benefit pension plans are presented in the table below. The amounts shown below for the amortization of prior service cost and recognized actuarial losses for 2016, 2017 and 2018 were recognized as components of our accumulated other comprehensive loss at December 31, 2015, 2016 and 2017, respectively, net of deferred income taxes. Years ended December 31, 2016 2017 2018 (In millions) Net periodic pension cost (income): Service cost benefits $ 9.9 $ 11.4 $ 11.6 Interest cost on PBO 14.7 13.2 13.5 Expected return on plan assets (14.4 ) (9.2 ) (12.0 ) Recognized actuarial losses 11.3 13.0 13.1 Amortization of prior service cost .2 .2 .2 Total $ 21.7 $ 28.6 $ 26.4 The components of our net periodic defined benefit pension cost for our U.S. defined benefit pension plan is presented in the table below. The amounts shown below for recognized actuarial losses for 2016, 2017 and 2018 were recognized as components of our accumulated other comprehensive loss at December 31, 2015, 2016 and 2017 respectively, net of deferred income taxes. Years ended December 31, 2016 2017 2018 (In millions) Net periodic pension cost (income): Interest cost on PBO $ .8 $ .7 $ .6 Expected return on plan assets (1.0 ) (1.0 ) (1.0 ) Recognized actuarial losses .5 .6 .6 Total $ .3 $ .3 $ .2 |
Schedule of Defined Benefit Pension Plans Balances (for which Accumulated Benefit Obligation Exceeds Fair Value of Plan Assets) | Information concerning certain of our non-U.S. defined benefit pension plans (for which the ABO exceeds the fair value of plan assets as of the indicated date) is presented in the table below. December 31, 2017 2018 (In millions) Plans for which the ABO exceeds plan assets: PBO $ 625.1 $ 605.0 ABO 603.8 585.0 Fair value of plan assets 375.0 346.3 |
Key Actuarial Assumptions Used | The weighted-average rate assumptions used in determining the actuarial present value of benefit obligations for our non-U.S. defined benefit pension plans as of December 31, 2017 and 2018 are presented in the table below. December 31, Rate 2017 2018 Discount rate 2.1 % 2.1 % Increase in future compensation levels 2.6 % 2.6 % The weighted-average rate assumptions used in determining the net periodic pension cost for our non-U.S. defined benefit pension plans for 2016, 2017 and 2018 are presented in the table below. Years ended December 31, Rate 2016 2017 2018 Discount rate 2.6 % 2.1 % 2.1 % Increase in future compensation levels 2.9 % 2.6 % 2.6 % Long-term return on plan assets 3.9 % 2.4 % 2.9 % The weighted-average rate assumptions used in determining the net periodic pension cost for our U.S. defined benefit pension plan for 2016, 2017 and 2018 are presented in the table below. The impact of assumed increases in future compensation levels also does not have an effect on the periodic pension cost as the plan is frozen with regards to compensation. Years ended December 31, Rate 2016 2017 2018 Discount rate 4.1 % 3.9 % 3.5 % Long-term return on plan assets 7.5 % 7.5 % 7.5 % |
CMRT | |
Composition of Pension Plan Assets | At December 31, 2017, substantially all of the assets attributable to our U.S. plan were invested in the Combined Master Retirement Trust (CMRT), a collective investment trust sponsored by Contran to permit the collective investment by certain master trusts that fund certain employee benefit plans sponsored by Contran and certain of its affiliates, including us. For 2016, 2017 and 2018, the long-term rate of return assumption for our U.S. plan assets was 7.5%, based on the long-term asset mix of the assets of the CMRT and the expected long-term rates of return for such asset components as well as advice from Contran’s actuaries. During 2018, Contran and the other employer-sponsors (including us) implemented a restructuring of the CMRT, in which a substantial part of each plan’s units in the CMRT were redeemed in exchange for a pro-rata portion of a substantial part of the CMRT’s investments. Following such restructuring, the plans held directly in the aggregate the investments previously held directly by the CMRT which had been exchanged for CMRT units as part of the restructuring. Certain investments held directly by the CMRT were not part of such restructuring and remain investments of the CMRT. Such restructuring was implemented in part so each plan could more easily align the composition of their plan asset portfolio with the plan’s benefit obligations. The CMRT unit value is determined semi-monthly, and prior to the 2018 restructuring, the plans had the ability to redeem all or any portion of their investment in the CMRT at any time based on the most recent semi-monthly valuation. However, the plans do not have the right to individual assets held by the CMRT and the CMRT has the sole discretion in determining how to meet any redemption request. For purposes of our plan asset disclosure, we consider the investment in the CMRT at December 31, 2017 as a Level 2 input because (i) the CMRT value is established semi-monthly and the plans have the right to redeem their investment in the CMRT, in part or in whole, at any time based on the most recent value and (ii) observable inputs from Level 1 or Level 2 (or assets not subject to classification in the fair value hierarchy) were used to value approximately 93% of the assets of the CMRT at December 31, 2017 as noted below. CMRT assets not subject to classification in the fair value hierarchy consist principally of certain investments measured at net asset value (NAV) per share in accordance with ASC 820-10. The aggregate fair value of all of the CMRT assets at December 31, 2017, including funds of Contran and its other affiliates that also invest in the CMRT, and supplemental asset mix details of the CMRT are as follows: December 31, 2017 (In millions) CMRT asset value $ 672.4 CMRT assets comprised of: Assets not subject to fair value hierarchy 31 % Assets subject to fair value hierarchy: Level 1 54 Level 2 8 Level 3 7 100 % CMRT asset mix: Domestic equities, principally publicly traded 33 % International equities, principally publicly traded 25 Fixed income securities, principally publicly traded 31 Privately managed limited partnerships 4 Hedge funds 5 Other, primarily cash 2 100 % |
Defined Benefit Pension Plans | |
Benefit Payments | We expect to contribute the equivalent of approximately $17 million to all of our defined benefit pension plans during 2019. Benefit payments to plan participants out of plan assets are expected to be the equivalent of: Years ending December 31, Amount (In millions) 2019 $ 23.2 2020 24.4 2021 24.5 2022 25.7 2023 25.6 Next 5 years 149.0 |
Changes in Benefit Obligations Recognized in Accumulated Other Comprehensive Income (Loss) | The table below details the changes in our consolidated other comprehensive income (loss) during 2016, 2017 and 2018. Years ended December 31, 2016 2017 2018 (In millions) Changes in plan assets and benefit obligations recognized in other comprehensive income (loss): Current year: Net actuarial gain (loss) $ (38.0 ) $ 3.5 $ (24.3 ) Amortization of unrecognized: Net actuarial losses 11.8 13.6 13.7 Prior service cost .2 .2 .2 Total $ (26.0 ) $ 17.3 $ (10.4 ) |
Composition of Pension Plan Assets | The composition of our pension plan assets by asset category and fair value level at December 31, 2017 and 2018 is shown in the table below. Fair Value Measurements at December 31, 2017 Total Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (In millions) Germany $ 257.9 $ - $ - $ 257.9 Canada: Local currency equities 8.4 8.4 - - Non local currency equities 16.4 16.4 - - Local currency fixed income 81.8 81.8 - - Cash and other .3 .3 - - Norway: Local currency equities 1.8 1.8 - - Non local currency equities 4.6 4.6 - - Local currency fixed income 21.0 21.0 - - Non local currency fixed income 6.8 6.8 - - Real estate 4.7 - - 4.7 Cash and other 15.4 14.5 - .9 U.S. CMRT 14.1 - 14.1 - Other 14.2 4.1 - 10.1 Total $ 447.4 $ 159.7 $ 14.1 $ 273.6 Fair Value Measurements at December 31, 2018 Total Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets measured at NAV (In millions) Germany $ 241.5 $ - $ - $ 241.5 $ - Canada: Local currency equities 6.5 6.5 - - - Non local currency equities 13.3 13.3 - - - Local currency fixed income 74.1 74.1 - - - Cash and other .5 .5 - - - Norway: Local currency equities 1.7 1.7 - - - Non local currency equities 4.3 4.3 - - - Local currency fixed income 20.4 14.9 5.5 - - Non local currency fixed income 6.1 6.1 - - - Real estate 4.5 - - 4.5 - Cash and other 13.5 12.7 - .8 - U.S. Equities 4.9 1.5 - - 3.4 Fixed income 6.0 6.0 - - - Cash and other 1.5 1.1 - - .4 CMRT .7 - - .7 - Other 13.9 3.4 - 10.5 - Total $ 413.4 $ 146.1 $ 5.5 $ 258.0 $ 3.8 |
Roll forward of Change in Fair Value of Level 3 Assets | A rollforward of the change in fair value of Level 3 assets follows. December 31, 2017 2018 (In millions) Fair value at beginning of year $ 230.5 $ 273.6 Gain (loss) on assets held at end of year 11.0 (4.6 ) Gain on assets sold during the year .2 - Assets purchased 13.4 14.1 Assets sold (13.8 ) (14.5 ) Transfers in - .7 Currency exchange rate fluctuations 32.3 (11.3 ) Fair value at end of year $ 273.6 $ 258.0 |
Other Noncurrent Liabilities (T
Other Noncurrent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Components of Other Noncurrent Liabilities | December 31, 2017 2018 (In millions) Employee benefits $ 8.5 $ 7.3 Accrued postretirement benefits 7.7 7.4 Other 13.0 14.1 Total $ 29.2 $ 28.8 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income Taxes and Comprehensive Provision for Income Taxes Allocation | Years ended December 31, 2016 2017 2018 (In millions) Pre-tax income: U.S. $ 11.5 $ 38.6 $ 32.8 Non-U.S. 49.7 267.1 261.0 Total $ 61.2 $ 305.7 $ 293.8 Expected tax expense, at U.S. federal statutory income tax rate of 35% in 2016 and 2017 and 21% in 2018 $ 21.4 $ 107.0 $ 61.7 Non-U.S. tax rates (4.3 ) (13.2 ) 21.0 Incremental net tax expense (benefit) on earnings and losses of U.S. and non-U.S. companies 2.2 (8.4 ) 1.3 Valuation allowance (2.2 ) (205.4 ) - Transition Tax - 76.2 (1.7 ) Global intangible low-tax income, net - - 3.7 Tax rate changes (.1 ) (.2 ) (.2 ) U.S. - Canada APA (3.4 ) - - Canada - Germany APA - - (1.4 ) Adjustment to the reserve for uncertain tax positions, net 2.4 (8.6 ) 2.1 Nondeductible expenses 1.5 1.7 1.6 U.S. state income taxes and other, net .4 2.1 .7 Income tax expense (benefit) $ 17.9 $ (48.8 ) $ 88.8 Components of income tax expense (benefit): Current payable: U.S. federal and state $ - $ 3.0 $ 12.0 Non-U.S. 9.5 37.5 51.1 9.5 40.5 63.1 Noncurrent payable - U.S. federal - 70.1 (1.6 ) Deferred income taxes (benefit): U.S. federal and state 4.3 (13.7 ) (1.8 ) Non-U.S. 4.1 (145.7 ) 29.1 8.4 (159.4 ) 27.3 Income tax expense (benefit) $ 17.9 $ (48.8 ) $ 88.8 Comprehensive provision for income taxes (benefit) allocable to: Net income $ 17.9 $ (48.8 ) $ 88.8 Other comprehensive income (loss): Currency translation - 19.8 - Pension plans (.8 ) 5.6 (3.6 ) OPEB plans (.2 ) (.2 ) (.2 ) Marketable securities 1.3 1.6 - Interest rate swap .2 1.1 - Total $ 18.4 $ (20.9 ) $ 85.0 |
Components of Net Deferred Income Taxes | The components of our net deferred income taxes at December 31, 2017 and 2018 are summarized in the following table. December 31, 2017 2018 Assets Liabilities Assets Liabilities (In millions) Tax effect of temporary differences related to: Inventories $ 3.0 $ (.6 ) $ 4.3 $ (3.1 ) Property and equipment - (57.2 ) - (56.9 ) Accrued OPEB costs 2.2 - 2.1 - Accrued pension costs 69.1 - 73.7 - Other accrued liabilities and deductible differences 10.2 - 10.4 - Other taxable differences - (2.6 ) - (2.4 ) Tax on unremitted earnings of non-U.S. subsidiaries - (9.5 ) - (11.3 ) Tax loss and tax credit carryforwards 116.2 - 86.6 - Valuation allowance (2.9 ) - (2.9 ) - Adjusted gross deferred tax assets (liabilities) 197.8 (69.9 ) 174.2 (73.7 ) Netting by tax jurisdiction (58.6 ) 58.6 (52.2 ) 52.2 Net noncurrent deferred tax asset (liability) $ 139.2 $ (11.3 ) $ 122.0 $ (21.5 ) |
Changes in Amount of Uncertain Tax Positions | The following table shows the changes in the amount of our uncertain tax positions (exclusive of the effect of interest and penalties discussed above) during 2016, 2017 and 2018: Years ended December 31, 2016 2017 2018 (In millions) Changes in unrecognized tax benefits: Unrecognized tax benefits at beginning of year $ 9.7 $ 9.9 $ 2.1 Net increase (decrease): Tax positions taken in prior periods (.1 ) (6.3 ) 1.4 Tax positions taken in current period 2.5 .2 .7 Lapse due to applicable statute of limitations (.2 ) (.1 ) - Settlements with taxing authorities (2.3 ) (2.3 ) - Change in currency exchange rates .3 .7 (.1 ) Unrecognized tax benefits at end of year $ 9.9 $ 2.1 $ 4.1 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss – Changes in accumulated other comprehensive loss for 2016, 2017 and 2018 are presented in the table below. Years ended December 31, 2016 2017 2018 (In millions) Accumulated other comprehensive loss, net of tax: Currency translation: Balance at beginning of year $ (252.0 ) $ (269.6 ) $ (211.9 ) Other comprehensive income (loss) (17.6 ) 57.7 (33.1 ) Balance at end of year $ (269.6 ) $ (211.9 ) $ (245.0 ) Defined benefit pension plans: Balance at beginning of year $ (159.2 ) $ (184.8 ) $ (172.8 ) Other comprehensive income (loss): Amortization of prior service cost and net losses included in net periodic pension cost 8.5 9.8 10.4 Net actuarial gain (loss) arising during year (34.1 ) 2.2 (17.6 ) Balance at end of year $ (184.8 ) $ (172.8 ) $ (180.0 ) OPEB plans: Balance at beginning of year $ 2.1 $ 1.8 $ 1.2 Other comprehensive (income) loss: Amortization of prior service credit and net losses included in net periodic OPEB cost (.4 ) (.3 ) (.3 ) Net actuarial gain (loss) arising during year .1 (.3 ) (.2 ) Balance at end of year $ 1.8 $ 1.2 $ .7 Marketable securities: Balance at beginning of year $ (.6 ) $ 1.8 $ 4.8 Change in accounting principle - - (4.8 ) Balance at beginning of period, as adjusted (.6 ) 1.8 - Other comprehensive income - Unrealized gains arising during the year 2.4 3.0 - Balance at end of year $ 1.8 $ 4.8 $ - Interest rate swap: Balance at beginning of year $ (2.3 ) $ (2.0 ) $ - Other comprehensive income (loss): Unrealized losses arising during the year (2.0 ) (1.5 ) - Less reclassification adjustment for amounts included in earnings 2.3 3.5 - Balance at end of year $ (2.0 ) $ - $ - Total accumulated other comprehensive loss: Balance at beginning of year $ (412.0 ) $ (452.8 ) $ (378.7 ) Change in accounting principle - - (4.8 ) Balance at beginning of period, as adjusted (412.0 ) (452.8 ) (383.5 ) Other comprehensive income (loss) (40.8 ) 74.1 (40.8 ) Balance at end of year $ (452.8 ) $ (378.7 ) $ (424.3 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Summary of Receivables from and Payables to Affiliates | Receivables from and payables to affiliates are summarized in the table below. December 31, 2017 2018 (In millions) Current receivables from affiliates: LPC $ 8.9 $ 10.2 Income taxes receivable from Valhi 15.3 - Other 3.2 2.8 $ 27.4 $ 13.0 Noncurrent note receivable from Valhi $ 13.6 $ - Current payables to affiliates: LPC $ 16.2 $ 16.7 Income taxes payable to Valhi - 10.4 $ 16.2 $ 27.1 Noncurrent payable to affiliate - income taxes Income taxes payable to Valhi (See Note 13) $ 70.1 $ 56.6 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Approximate Percentage of TiO2 Sales by Volume | The table below shows the approximate percentage of our TiO 2 2016 2017 2018 Europe 51 % 50 % 44 % North America 29 % 31 % 37 % |
Summary of Future Minimum Payments Under Non-cancellable Operating Leases | At December 31, 2018, future minimum payments 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 millions) 2019 $ 6.2 2020 5.0 2021 4.2 2022 3.2 2023 2.4 2024 and thereafter 21.5 Total $ 42.5 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Valuation of Financial Instruments Recorded on Fair Value Basis | The following table summarizes the valuation of our financial instruments recorded on a fair value basis as of December 31, 2017 and 2018: Fair value measurements Total Quoted in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (In millions) Asset: December 31, 2017 - Noncurrent marketable securities (See Note 6) $ 10.7 $ 10.7 $ - $ - December 31, 2018 - Noncurrent marketable securities (See Note 6) $ 3.4 $ 3.4 $ - $ - |
Financial Instruments not Carried at Fair Value but which Require Fair Value Disclosure | Other – The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure as of December 31, 2017 and 2018. December 31, 2017 December 31, 2018 Carrying amount Fair value Carrying amount Fair value (In millions) Cash, cash equivalents and restricted cash $ 323.7 $ 323.7 $ 374.7 $ 374.7 Long-term debt - Fixed rate Senior Notes 471.1 495.1 452.4 412.9 Common stockholders' equity 754.3 2,986.8 839.8 1,335.3 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Selected Quarterly Financial Information [Abstract] | |
Quarterly Results of Operations | Quarter ended March June September December (In millions, except per share data) Year ended December 31, 2017 Net sales $ 369.8 $ 441.4 $ 464.5 $ 453.3 Gross margin 106.0 132.4 155.0 176.3 Net income 36.8 196.5 73.8 47.4 Basic and diluted income per share $ .32 $ 1.70 $ .64 $ .41 Year ended December 31, 2018 Net sales $ 430.4 $ 471.8 $ 410.3 $ 349.4 Gross margin 174.8 171.8 119.1 96.5 Net income 70.7 77.7 32.6 24.0 Basic and diluted income per share $ .61 $ .67 $ .28 $ .21 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Organization And Basis Of Presentation [Line Items] | |||
Capitalized interest costs | $ 0.8 | $ 2 | $ 0.9 |
Income taxes paid, net | 67.9 | 37.1 | 6.6 |
Cost of sales | 1,099.7 | 1,159.3 | 1,099.6 |
Research and development costs | 16 | 18 | 13 |
Shipping and Handling | |||
Organization And Basis Of Presentation [Line Items] | |||
Cost of sales | $ 105 | 101 | 90 |
Louisiana Pigment Company, L.P. | |||
Organization And Basis Of Presentation [Line Items] | |||
Owned manufacturing joint venture | 50.00% | ||
Valhi Inc | |||
Organization And Basis Of Presentation [Line Items] | |||
Income taxes paid, net | $ 16.8 | $ 0.8 | |
Income taxes refunds, net | $ 1.9 | ||
Valhi Inc | Kronos Worldwide, Inc. | |||
Organization And Basis Of Presentation [Line Items] | |||
Ownership percentage in subsidiary | 50.00% | ||
Valhi Inc | NL Industries Inc. | |||
Organization And Basis Of Presentation [Line Items] | |||
Ownership percentage in company | 83.00% | ||
NL Industries Inc. | Kronos Worldwide, Inc. | |||
Organization And Basis Of Presentation [Line Items] | |||
Ownership percentage | 30.00% | ||
Contran | |||
Organization And Basis Of Presentation [Line Items] | |||
Controlling interest description | Consequently, Ms. Simmons and Ms. Connelly may be deemed to control Contran, Valhi, NL and us. | ||
Contran | Valhi Inc | |||
Organization And Basis Of Presentation [Line Items] | |||
Ownership percentage of parent company held by related party | 92.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Buildings and improvements | Minimum | |
Property Plant And Equipment [Line Items] | |
Property plant and equipment useful life | 10 years |
Buildings and improvements | Maximum | |
Property Plant And Equipment [Line Items] | |
Property plant and equipment useful life | 40 years |
Machinery and equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Property plant and equipment useful life | 3 years |
Machinery and equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Property plant and equipment useful life | 20 years |
Mine development costs | |
Property Plant And Equipment [Line Items] | |
Mine development costs | units-of-production |
Geographic Information - Additi
Geographic Information - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Non-U.S. Subsidiaries | ||
Geographic Information [Line Items] | ||
Net assets of non-US subsidiaries | $ 384 | $ 381 |
Geographic Information - Net Sa
Geographic Information - Net Sales and Property and Equipment by Geographical Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | $ 349.4 | $ 410.3 | $ 471.8 | $ 430.4 | $ 453.3 | $ 464.5 | $ 441.4 | $ 369.8 | $ 1,661.9 | $ 1,729 | $ 1,364.3 |
Net property and equipment | 486.4 | 506.4 | 486.4 | 506.4 | |||||||
Germany | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net property and equipment | 232.1 | 243.2 | 232.1 | 243.2 | |||||||
Canada | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net property and equipment | 65.2 | 67.9 | 65.2 | 67.9 | |||||||
Belgium | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net property and equipment | 94.8 | 96.5 | 94.8 | 96.5 | |||||||
Norway | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net property and equipment | 79.3 | 79.6 | 79.3 | 79.6 | |||||||
Other | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net property and equipment | $ 15 | $ 19.2 | 15 | 19.2 | |||||||
Point of origin | Reportable Geographical Components | Germany | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | 886.1 | 918.6 | 699.8 | ||||||||
Point of origin | Reportable Geographical Components | United States | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | 839.4 | 841.8 | 664.2 | ||||||||
Point of origin | Reportable Geographical Components | Canada | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | 307.2 | 309.2 | 257.7 | ||||||||
Point of origin | Reportable Geographical Components | Belgium | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | 272.2 | 279.9 | 187.4 | ||||||||
Point of origin | Reportable Geographical Components | Norway | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | 209.6 | 216.4 | 164.8 | ||||||||
Point of origin | Eliminations | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | (852.6) | (836.9) | (609.6) | ||||||||
Point of destination | Europe | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | 817.2 | 898.8 | 697.6 | ||||||||
Point of destination | North America | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | 542 | 519.4 | 413.2 | ||||||||
Point of destination | Other | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | $ 302.7 | $ 310.8 | $ 253.5 |
Accounts and Other Receivable_2
Accounts and Other Receivables - Accounts and Other Receivables (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Notes And Loans Receivable [Line Items] | ||
Allowance for doubtful accounts | $ (1.2) | $ (1.4) |
Total | 299.5 | 319.1 |
Trade receivables | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accounts and other receivables | 273.3 | 301.4 |
Recoverable VAT and other receivables | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accounts and other receivables | 23.8 | 19 |
Refundable income taxes | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Refundable income taxes | $ 3.6 | $ 0.1 |
Inventories, Net - Schedule of
Inventories, Net - Schedule of Inventories, Net (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 93.1 | $ 106.9 |
Work in process | 23.5 | 20.8 |
Finished products | 316.8 | 191.5 |
Supplies | 64.5 | 63.1 |
Total | $ 497.9 | $ 382.3 |
Investment in TiO2 Manufactur_3
Investment in TiO2 Manufacturing Joint Venture - Additional Information (Detail) - USD ($) | Jan. 02, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | |||
Equity earnings of LPC | $ 0 | ||
Payable to affiliate | $ 27,100,000 | $ 16,200,000 | |
Louisiana Pigment Company, L.P. | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity interest in LPC | 50.00% | ||
Products purchased from plant | 50.00% | ||
Payable to affiliate | $ 1,400,000 | ||
Payment for Contribution | $ 1,400,000 | ||
Venator Materials PLC | Venator Group | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest percentage owned by parent | 100.00% | ||
Venator Investments LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity interest in LPC | 50.00% |
Investment in TiO2 Manufactur_4
Investment in TiO2 Manufacturing Joint Venture - Components of Net Cash Distributions from (Contributions to) LPC (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Net distributions (contributions) | $ 4 | $ (6) | $ 3.6 |
Louisiana Pigment Company, L.P. | |||
Schedule of Equity Method Investments [Line Items] | |||
Distributions from LPC | 34.3 | 44 | 35 |
Contributions to LPC | (30.3) | (50) | (31.4) |
Net distributions (contributions) | $ 4 | $ (6) | $ 3.6 |
Investment in TiO2 Manufactur_5
Investment in TiO2 Manufacturing Joint Venture - Summary of Balance Sheets of LPC (Detail) - Louisiana Pigment Company, L.P. - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Current assets | $ 87 | $ 104.1 |
Property and equipment, net | 119.6 | 116.1 |
Total assets | 206.6 | 220.2 |
LIABILITIES AND PARTNERS' EQUITY | ||
Other liabilities, primarily current | 41.1 | 44.4 |
Partners' equity | 165.5 | 175.8 |
Total liabilities and partners' equity | $ 206.6 | $ 220.2 |
Investment in TiO2 Manufactur_6
Investment in TiO2 Manufacturing Joint Venture - Summary of Income Statements of LPC (Detail) - Louisiana Pigment Company, L.P. - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues and other income: | |||
Total revenues and other income | $ 332.9 | $ 315.8 | $ 315.4 |
Cost and expenses: | |||
Cost of sales | 332.5 | 315.4 | 314.9 |
General and administrative | 0.4 | 0.4 | 0.5 |
Total costs and expenses | 332.9 | 315.8 | 315.4 |
Kronos | |||
Revenues and other income: | |||
Total revenues and other income | 165.9 | 157.5 | 157.5 |
Venator Investments | |||
Revenues and other income: | |||
Total revenues and other income | $ 167 | $ 158.3 | $ 157.9 |
Marketable Securities - Classif
Marketable Securities - Classification of Marketable Securities (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Marketable Securities [Line Items] | ||
Market value | $ 3.4 | $ 10.7 |
Cost basis | 3.3 | 3.3 |
Unrealized gain | 0.1 | 7.4 |
Level 1 | Common stock | Valhi | ||
Marketable Securities [Line Items] | ||
Market value | 3.3 | 10.6 |
Cost basis | 3.2 | 3.2 |
Unrealized gain | 0.1 | 7.4 |
Level 1 | Common stock | NL And CompX | ||
Marketable Securities [Line Items] | ||
Market value | 0.1 | 0.1 |
Cost basis | $ 0.1 | $ 0.1 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - Valhi Inc - Common stock - $ / shares shares in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Marketable Securities [Line Items] | ||
Investments in publicly-traded shares | 1.7 | 1.7 |
Quoted market price of per share | $ 1.93 | $ 6.17 |
Other Noncurrent Assets - Sched
Other Noncurrent Assets - Schedule of Other Noncurrent Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Other Non Current Assets Schedule Of Other Non Current Assets [Abstract] | ||
Pension asset | $ 0.8 | $ 1.6 |
Deferred financing costs, net | 0.9 | 1.1 |
Other | 1.9 | 2.8 |
Total | $ 3.6 | $ 5.5 |
Long-Term Debt - Components of
Long-Term Debt - Components of Long-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Kronos International, Inc. 3.75% Senior Secured Notes | $ 452.4 | $ 471.1 |
Other | 4.2 | 3.4 |
Total debt | 456.6 | 474.5 |
Less current maturities | 1.5 | 0.7 |
Total long-term debt | 455.1 | 473.8 |
Kronos International, Inc | 3.75% Senior Secured Notes due September 15, 2025 | ||
Debt Instrument [Line Items] | ||
Kronos International, Inc. 3.75% Senior Secured Notes | $ 452.4 | $ 471.1 |
Long-Term Debt - Senior Secured
Long-Term Debt - Senior Secured Notes - Additional Information (Detail) € in Millions, $ in Millions | Sep. 13, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 13, 2017EUR (€) |
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Minimum amount of debt default for using customary default provisions | $ 50 | |||
Unamortized debt issuance costs | $ 6.3 | $ 7.5 | ||
North American Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Repayments of line of credit using Senior Notes proceeds | 21 | |||
Kronos International, Inc | 3.75% Senior Secured Notes due September 15, 2025 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument principal amount | $ 477.6 | € 400 | ||
Debt instrument interest rate | 3.75% | 3.75% | ||
Debt instrument maturity date | Sep. 15, 2025 | |||
Debt instrument, interest payment terms | bear interest at 3.75% per annum, payable semi-annually on March 15 and September 15 of each year, payments began on March 15, 2018 | |||
Debt instrument, frequency of periodic payment of interest | semi-annually | |||
Debt instrument, date of first semi-annual interest payment | --03-15 | |||
Debt instrument, date of second semi-annual interest payment | --09-15 | |||
Debt Instrument, date of first required semi-annual payment | Mar. 15, 2018 | |||
Debt instrument, redemption, description | have a maturity date of September 15, 2025. Prior to September 15, 2020, we may redeem some or all of the Senior Notes at a price equal to 100% of the principal amount thereof, plus a “make-whole” premium (as defined in the indenture governing the Senior Notes). On or after September 15, 2020, we may redeem the Senior Notes at redemption prices ranging from 102.813% of the principal amount, declining to 100% on or after September 15, 2023. In addition, on or before September 15, 2020, we may redeem up to 40% of the Senior Notes with the net proceeds of certain public or private equity offerings at 103.75% of the principal amount. If we experience certain specified change of control events, we would be required to make an offer to purchase the Senior Notes at 101% of the principal amount. We would also be required to make an offer to purchase a specified portion of the Senior Notes at par value in the event that we generate a certain amount of net proceeds from the sale of assets outside the ordinary course of business, and such net proceeds are not otherwise used for specified purposes within a specified time period | |||
Debt instrument redemption price percent if experience certain specified change of control events | 101.00% | |||
Kronos International, Inc | 3.75% Senior Secured Notes due September 15, 2025 | Collateral Pledged | Direct Domestic Subsidiary of KII and Guarantors | ||||
Debt Instrument [Line Items] | ||||
Parent company ownership interest | 100.00% | 100.00% | ||
Kronos International, Inc | 3.75% Senior Secured Notes due September 15, 2025 | Collateral Pledged | Non US Subsidiary Directly Owned by KII or any Guarantor | ||||
Debt Instrument [Line Items] | ||||
Parent company ownership interest | 65.00% | 65.00% | ||
Kronos International, Inc | 3.75% Senior Secured Notes due September 15, 2025 | Collateral Pledged | Non US Subsidiary Directly Owned by KII or any Guarantor | Non-voting Common Stock | ||||
Debt Instrument [Line Items] | ||||
Parent company ownership interest | 100.00% | 100.00% | ||
Kronos International, Inc | 3.75% Senior Secured Notes due September 15, 2025 | Prior to September 15, 2020 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, redemption price percentage | 100.00% | |||
Kronos International, Inc | 3.75% Senior Secured Notes due September 15, 2025 | On or After September 15, 2020 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, redemption price percentage | 102.813% | |||
Kronos International, Inc | 3.75% Senior Secured Notes due September 15, 2025 | On or After September 15, 2023 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, redemption price percentage | 100.00% | |||
Kronos International, Inc | 3.75% Senior Secured Notes due September 15, 2025 | On or Before September 15, 2020 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, redemption price percentage | 103.75% | |||
Kronos International, Inc | 3.75% Senior Secured Notes due September 15, 2025 | On or Before September 15, 2020 | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, percentage of debt that may be redeemed | 40.00% | |||
Kronos International, Inc | 3.75% Senior Secured Notes due September 15, 2025 | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Repayments of debt | $ 338.6 |
Long-Term Debt - Term Loan - Ad
Long-Term Debt - Term Loan - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 8 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 13, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||||||
Loss on prepayment of debt, net | $ (7.1) | $ (7.1) | |||||
Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Termination of interest rate swap contract | $ 3.3 | ||||||
Term Loan | 2014 Term Loan, Amended in May 2015 | |||||||
Debt Instrument [Line Items] | |||||||
Quarterly principal payments | $ 1.8 | $ 3.5 | |||||
Repayments of debt | $ 338.6 | ||||||
Debt instrument, voluntary repayment period | 2017-09 | ||||||
Loss on prepayment of debt, net | (7.1) | ||||||
Write-off of unamortized debt issuance costs | 2.7 | ||||||
Write-off of unamortized original issue discount | 0.7 | ||||||
Termination of interest rate swap contract | $ 3.3 | ||||||
Average interest rate during period | 4.10% |
Long-Term Debt - Revolving Cred
Long-Term Debt - Revolving Credit Facilities - Additional Information (Detail) | Sep. 13, 2017USD ($) | Sep. 30, 2017 | Jan. 31, 2017 | Sep. 13, 2017 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018EUR (€) |
Letter Of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Sublimit maximum borrowing capacity | $ 15,000,000 | ||||||
European Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | € | € 90,000,000 | ||||||
Outstanding borrowings under this credit facility | 0 | ||||||
Line of Credit Maturity | 2022-09 | ||||||
Borrowings under credit facility during the period | 0 | $ 0 | |||||
Repayments of Lines of Credit | 0 | 0 | |||||
Amount available for Borrowing | 103,200,000 | € 90,000,000 | |||||
Outstanding borrowings under this credit facility | $ 0 | ||||||
European Revolving Credit Facility | EURIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument basis spread on variable rate | 1.60% | ||||||
North American Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 125,000,000 | ||||||
Outstanding borrowings under this credit facility | $ 0 | ||||||
Line of Credit Maturity | 2022-01 | ||||||
Fixed charge coverage ratio, minimum value | 100.00% | ||||||
Borrowings under credit facility during the period | 253,900,000 | ||||||
Repayments of Lines of Credit | $ 253,900,000 | ||||||
Average interest rate during period | 4.80% | ||||||
Repayments of line of credit using Senior Notes proceeds | $ 21,000,000 | ||||||
Amount available for Borrowing | $ 101,300,000 | ||||||
Outstanding borrowings under this credit facility | 0 | ||||||
North American Revolving Credit Facility | Canadian Subsidiary Revolving Borrowings Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 25,000,000 | ||||||
Minimum | North American Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument basis spread on variable rate | 1.50% | ||||||
Minimum | North American Revolving Credit Facility | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument basis spread on variable rate | 0.50% | ||||||
Maximum | North American Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument basis spread on variable rate | 2.00% | ||||||
Maximum | North American Revolving Credit Facility | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument basis spread on variable rate | 1.00% |
Long-Term Debt - Aggregate Matu
Long-Term Debt - Aggregate Maturities of Long-Term Debt and Other (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Long Term Debt By Maturity [Abstract] | |
2019 | $ 1.5 |
2020 | 1.5 |
2021 | 0.6 |
2022 | 0.6 |
2024 and thereafter | 458.7 |
Gross maturities | 462.9 |
Less debt issuance costs | 6.3 |
Total | $ 456.6 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities - Components of Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Payables And Accruals [Abstract] | ||
Accounts payable | $ 103.2 | $ 107.9 |
Accrued sales discounts and rebates | 29.7 | 11.7 |
Employee benefits | 27.9 | 27 |
Other | 35 | 43 |
Total | $ 195.8 | $ 189.6 |
Defined Contribution and Defi_3
Defined Contribution and Defined Benefit Retirement Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution benefit plan expense | $ 3.3 | $ 2.7 | $ 2.8 |
Defined Benefit Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contributions next fiscal year | $ 17 | ||
Discount rate | 2.10% | 2.10% | |
Unrecognized actuarial losses to be recognized in next fiscal year | $ 14 | ||
Unrecognized prior service cost to be recognized in next fiscal year | $ 0.2 | ||
Expected long-term rate of return | 2.90% | 2.40% | 3.90% |
Defined Benefit Pension Plans | United States Pension Plans of US Entity, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.10% | 3.50% | |
Expected long-term rate of return | 7.50% | 7.50% | 7.50% |
Defined Benefit Pension Plans | CMRT | United States Pension Plans of US Entity, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term rate of return | 7.50% | 7.50% | 7.50% |
Target asset allocation | 6.00% | ||
Defined Benefit Pension Plans | CMRT | United States Pension Plans of US Entity, Defined Benefit | Level 1 and Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of fair value of asset | 93.00% | ||
Defined Benefit Pension Plans | Equity Securities | United States Pension Plans of US Entity, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term rate of return | 9.00% | ||
Target asset allocation | 40.00% | ||
Defined Benefit Pension Plans | Equity Securities | Canada | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Average basis points of long-term rate of return on investment | 125 basis points above the applicable equity or fixed income index | ||
Defined Benefit Pension Plans | Equity Securities | Canada | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation | 20.00% | ||
Defined Benefit Pension Plans | Equity Securities | Canada | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation | 30.00% | ||
Defined Benefit Pension Plans | Equity Securities | Norway | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term rate of return | 7.00% | ||
Target asset allocation | 11.00% | ||
Defined Benefit Pension Plans | Debt Securities | United States Pension Plans of US Entity, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term rate of return | 5.00% | ||
Target asset allocation | 45.00% | ||
Defined Benefit Pension Plans | Debt Securities | Canada | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Average basis points of long-term rate of return on investment | 125 basis points above the applicable equity or fixed income index | ||
Defined Benefit Pension Plans | Debt Securities | Canada | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation | 70.00% | ||
Defined Benefit Pension Plans | Debt Securities | Canada | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation | 80.00% | ||
Defined Benefit Pension Plans | Debt Securities | Norway | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term rate of return | 3.00% | ||
Target asset allocation | 79.00% | ||
Defined Benefit Pension Plans | Other Investment Securities And Cash | Canada | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Average basis points of long-term rate of return on investment | 125 basis points above the applicable equity or fixed income index | ||
Defined Benefit Pension Plans | Other Investment Securities And Cash | Norway | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term rate of return | 8.00% | ||
Defined Benefit Pension Plans | Multy-asset Strategies and CMRT | United States Pension Plans of US Entity, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term rate of return | 3.00% | ||
Defined Benefit Pension Plans | Assets valued at NAV | United States Pension Plans of US Entity, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation | 29.00% | ||
Defined Benefit Pension Plans | Real Estate | Norway | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term rate of return | 5.00% | ||
Target asset allocation | 7.00% | ||
Defined Benefit Pension Plans | Real Estate And Other Investments | Norway | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual plan asset allocation | 10.00% |
Defined Contribution and Defi_4
Defined Contribution and Defined Benefit Retirement Plans- Benefit Payments (Detail) - Defined Benefit Pension Plans $ in Millions | Dec. 31, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2019 | $ 23.2 |
2020 | 24.4 |
2021 | 24.5 |
2022 | 25.7 |
2023 | 25.6 |
Next 5 years | $ 149 |
Defined Contribution and Defi_5
Defined Contribution and Defined Benefit Retirement Plans - Funded Status of Defined Benefit Pension Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amounts recognized in the balance sheet: | |||
Noncurrent pension asset | $ 0.8 | $ 1.6 | |
Accrued pension costs, noncurrent | (262.9) | (254.2) | |
Defined Benefit Pension Plans | |||
Change in plan assets: | |||
Fair value of plan assets at beginning of the year | 447.4 | ||
Fair value of plan assets at end of year | 413.4 | 447.4 | |
United States | Defined Benefit Pension Plans | |||
Change in projected benefit obligations (PBO): | |||
Benefit obligations at beginning of the year | 18.2 | 17.8 | |
Interest cost | 0.6 | 0.7 | $ 0.8 |
Actuarial losses (gains) | (0.9) | 0.7 | |
Benefits paid | (1) | (1) | |
Benefit obligations at end of the year | 16.9 | 18.2 | 17.8 |
Change in plan assets: | |||
Fair value of plan assets at beginning of the year | 14.1 | 13.6 | |
Actual return (loss) on plan assets | (0.8) | 1.2 | |
Employer contributions | 0.8 | 0.3 | |
Benefits paid | (1) | (1) | |
Fair value of plan assets at end of year | 13.1 | 14.1 | 13.6 |
Funded status | (3.8) | (4.1) | |
Amounts recognized in the balance sheet: | |||
Accrued pension costs, current | (0.1) | (0.1) | |
Accrued pension costs, noncurrent | (3.7) | (4) | |
Total | (3.8) | (4.1) | |
Amount recognized in accumulated other comprehensive loss, Actuarial losses | 11.2 | 10.9 | |
Accumulated benefit obligations (ABO) | 16.9 | 18.2 | |
Actual return (loss) on plan assets | (0.8) | 1.2 | |
Foreign Pension Plans Defined Benefit | Defined Benefit Pension Plans | |||
Change in projected benefit obligations (PBO): | |||
Benefit obligations at beginning of the year | 681.9 | 594.1 | |
Service cost | 11.6 | 11.4 | 9.9 |
Interest cost | 13.5 | 13.2 | 14.7 |
Participant contributions | 1.6 | 1.5 | |
Actuarial losses (gains) | 5.8 | 9.9 | |
Change in currency exchange rates | (33.7) | 72.6 | |
Benefits paid | (22) | (20.8) | |
Benefit obligations at end of the year | 658.7 | 681.9 | 594.1 |
Change in plan assets: | |||
Fair value of plan assets at beginning of the year | 433.3 | 371.5 | |
Actual return (loss) on plan assets | (5.6) | 23.1 | |
Employer contributions | 16.3 | 15.9 | |
Participant contributions | 1.6 | 1.5 | |
Change in currency exchange rates | (23.3) | 42.1 | |
Benefits paid | (22) | (20.8) | |
Fair value of plan assets at end of year | 400.3 | 433.3 | $ 371.5 |
Funded status | (258.4) | (248.6) | |
Amounts recognized in the balance sheet: | |||
Noncurrent pension asset | 0.8 | 1.6 | |
Accrued pension costs, noncurrent | (259.2) | (250.2) | |
Total | (258.4) | (248.6) | |
Amount recognized in accumulated other comprehensive loss, Actuarial losses | 250.3 | 240.2 | |
Amount recognized in accumulated other comprehensive loss, Prior service cost | 1.2 | 1.4 | |
Amount recognized in accumulated other comprehensive loss, Total | 251.5 | 241.6 | |
Accumulated benefit obligations (ABO) | 633.5 | 655.4 | |
Actual return (loss) on plan assets | $ (5.6) | $ 23.1 |
Defined Contribution and Defi_6
Defined Contribution and Defined Benefit Retirement Plans - Components of Net Periodic Benefit Cost (Credit) (Detail) - Defined Benefit Pension Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Foreign Pension Plans Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 11.6 | $ 11.4 | $ 9.9 |
Interest cost | 13.5 | 13.2 | 14.7 |
Expected return on plan assets | (12) | (9.2) | (14.4) |
Recognized actuarial losses | 13.1 | 13 | 11.3 |
Amortization of prior service cost | 0.2 | 0.2 | 0.2 |
Total | 26.4 | 28.6 | 21.7 |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 0.6 | 0.7 | 0.8 |
Expected return on plan assets | (1) | (1) | (1) |
Recognized actuarial losses | 0.6 | 0.6 | 0.5 |
Total | $ 0.2 | $ 0.3 | $ 0.3 |
Defined Contribution and Defi_7
Defined Contribution and Defined Benefit Retirement Plans- Schedule of Defined Benefit Pension Plans Balances (for which Accumulated Benefit Obligation Exceeds Fair Value of Plan Assets) (Detail) - Foreign Pension Plans Defined Benefit - Defined Benefit Pension Plans - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation (PBO) | $ 605 | $ 625.1 |
Accumulated Benefit Obligation (ABO) | 585 | 603.8 |
Fair value of plan assets | $ 346.3 | $ 375 |
Defined Contribution and Defi_8
Defined Contribution and Defined Benefit Retirement Plans - Schedule of Assumptions Used (Detail) - Defined Benefit Pension Plans | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.10% | 2.10% |
Increase in future compensation levels | 2.60% | 2.60% |
Defined Contribution and Defi_9
Defined Contribution and Defined Benefit Retirement Plans- Weighted Average Rate Assumptions Used in Determining Net Periodic Pension Cost (Detail) - Defined Benefit Pension Plans | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.10% | 2.10% | 2.60% |
Increase in future compensation levels | 2.60% | 2.60% | 2.90% |
Long-term return on plan assets | 2.90% | 2.40% | 3.90% |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.50% | 3.90% | 4.10% |
Long-term return on plan assets | 7.50% | 7.50% | 7.50% |
Defined Contribution and Def_10
Defined Contribution and Defined Benefit Retirement Plans - Changes In Benefit Obligations Recognized In Accumulated Other Comprehensive Income (Loss) (Detail) - Defined Benefit Pension Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial gain (loss) | $ (24.3) | $ 3.5 | $ (38) |
Net actuarial losses | 13.7 | 13.6 | 11.8 |
Prior service cost | 0.2 | 0.2 | 0.2 |
Total | $ (10.4) | $ 17.3 | $ (26) |
Defined Contribution and Def_11
Defined Contribution and Defined Benefit Retirement Plans- Schedule of Aggregate Fair Value of Asset and Supplemental Asset Mix (Detail) - CMRT $ in Millions | Dec. 31, 2017USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
CMRT asset value | $ 672.4 |
Assets not subject to fair value hierarchy | 31.00% |
Total percentage of CMRT assets | 100.00% |
Percentage of combined master retirement trust asset mix | 100.00% |
Equities principally publicly traded | United States | |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage of combined master retirement trust asset mix | 33.00% |
Equities principally publicly traded | Foreign Pension Plans Defined Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage of combined master retirement trust asset mix | 25.00% |
Fixed income securities, principally publicly traded | |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage of combined master retirement trust asset mix | 31.00% |
Privately managed limited partnerships | |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage of combined master retirement trust asset mix | 4.00% |
Hedge funds | |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage of combined master retirement trust asset mix | 5.00% |
Other, primarily cash | |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage of combined master retirement trust asset mix | 2.00% |
Level 1 | |
Defined Benefit Plan Disclosure [Line Items] | |
Assets subject to fair value hierarchy | 54.00% |
Level 2 | |
Defined Benefit Plan Disclosure [Line Items] | |
Assets subject to fair value hierarchy | 8.00% |
Level 3 | |
Defined Benefit Plan Disclosure [Line Items] | |
Assets subject to fair value hierarchy | 7.00% |
Defined Contribution and Def_12
Defined Contribution and Defined Benefit Retirement Plans- Composition of Pension Plan Assets (Detail) - Defined Benefit Pension Plans - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | $ 413.4 | $ 447.4 | |
Foreign Pension Plans Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 400.3 | 433.3 | $ 371.5 |
Germany | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 241.5 | 257.9 | |
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 13.9 | 14.2 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 13.1 | 14.1 | $ 13.6 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 146.1 | 159.7 | |
Level 1 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 3.4 | 4.1 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 5.5 | 14.1 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 258 | 273.6 | |
Level 3 | Germany | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 241.5 | 257.9 | |
Level 3 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 10.5 | 10.1 | |
Assets Measured at NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 3.8 | ||
Local Currency Equities Member | Norway | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 1.7 | 1.8 | |
Local Currency Equities Member | Canada | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 6.5 | 8.4 | |
Local Currency Equities Member | Level 1 | Norway | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 1.7 | 1.8 | |
Local Currency Equities Member | Level 1 | Canada | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 6.5 | 8.4 | |
Non Local Currency Equities | Norway | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 4.3 | 4.6 | |
Non Local Currency Equities | Canada | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 13.3 | 16.4 | |
Non Local Currency Equities | Level 1 | Norway | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 4.3 | 4.6 | |
Non Local Currency Equities | Level 1 | Canada | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 13.3 | 16.4 | |
Local Currency Fixed Income | Norway | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 20.4 | 21 | |
Local Currency Fixed Income | Canada | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 74.1 | 81.8 | |
Local Currency Fixed Income | Level 1 | Norway | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 14.9 | 21 | |
Local Currency Fixed Income | Level 1 | Canada | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 74.1 | 81.8 | |
Local Currency Fixed Income | Level 2 | Norway | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 5.5 | ||
Cash And Other | Norway | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 13.5 | 15.4 | |
Cash And Other | Canada | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0.5 | 0.3 | |
Cash And Other | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 1.5 | ||
Cash And Other | Level 1 | Norway | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 12.7 | 14.5 | |
Cash And Other | Level 1 | Canada | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0.5 | 0.3 | |
Cash And Other | Level 1 | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 1.1 | ||
Cash And Other | Level 3 | Norway | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0.8 | 0.9 | |
Cash And Other | Assets Measured at NAV | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0.4 | ||
Non Local Currency Fixed Income | Norway | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 6.1 | 6.8 | |
Non Local Currency Fixed Income | Level 1 | Norway | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 6.1 | 6.8 | |
Real Estate | Norway | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 4.5 | 4.7 | |
Real Estate | Level 3 | Norway | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 4.5 | 4.7 | |
CMRT | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0.7 | 14.1 | |
CMRT | Level 2 | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | $ 14.1 | ||
CMRT | Level 3 | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0.7 | ||
Equity | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 4.9 | ||
Equity | Level 1 | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 1.5 | ||
Equity | Assets Measured at NAV | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 3.4 | ||
Fixed Income | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 6 | ||
Fixed Income | Level 1 | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | $ 6 |
Defined Contribution and Def_13
Defined Contribution and Defined Benefit Retirement Plans - Rollforward of Change in Fair Value of Level 3 Assets (Detail) - Level 3 - Defined Benefit Pension Plans - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value at beginning of year | $ 273.6 | $ 230.5 |
Gain (loss) on assets held at end of year | (4.6) | 11 |
Gain on assets sold during the year | 0.2 | |
Assets purchased | 14.1 | 13.4 |
Assets sold | (14.5) | (13.8) |
Transfers in | 0.7 | |
Currency exchange rate fluctuations | (11.3) | 32.3 |
Fair value at end of year | $ 258 | $ 273.6 |
Other Noncurrent Liabilities -
Other Noncurrent Liabilities - Components of Other Noncurrent Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Other Liabilities Noncurrent [Abstract] | ||
Employee benefits | $ 7.3 | $ 8.5 |
Accrued postretirement benefits | 7.4 | 7.7 |
Other | 14.1 | 13 |
Total | $ 28.8 | $ 29.2 |
Other Operating Income (Expen_2
Other Operating Income (Expense), Net - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2018 | |
Other Operating Income And Expense [Line Items] | |||
Insurance settlements receivable | $ 0 | ||
Other Operating Income (Expense), Net | |||
Other Operating Income And Expense [Line Items] | |||
Income received from settlement of business interruption insurance claim | $ 900,000 | $ 3,400,000 |
Income Taxes - Components of In
Income Taxes - Components of Income Taxes and Comprehensive Provision for Income Taxes Allocation (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Income Tax [Line Items] | |||||||
U.S. | $ 32.8 | $ 38.6 | $ 11.5 | ||||
Non-U.S. | 261 | 267.1 | 49.7 | ||||
Income before income taxes | 293.8 | 305.7 | 61.2 | ||||
Expected tax expense, at U.S. federal statutory income tax rate of 35% in 2016 and 2017 and 21% in 2018 | 61.7 | 107 | 21.4 | ||||
Non-U.S. tax rates | 21 | (13.2) | (4.3) | ||||
Incremental net tax expense (benefit) on earnings and losses of U.S. and non-U.S. companies | 1.3 | (8.4) | 2.2 | ||||
Valuation allowance | (205.4) | (2.2) | |||||
Transition Tax | $ (1.7) | $ 76.2 | (1.7) | 76.2 | |||
Global intangible low-tax income, net | 3.7 | 3.7 | |||||
Tax rate changes | (0.2) | (0.2) | (0.1) | ||||
Adjustment to the reserve for uncertain tax positions, net | $ 0.7 | $ 1.4 | 2.1 | (8.6) | 2.4 | ||
Nondeductible expenses | 1.6 | 1.7 | 1.5 | ||||
U.S. state income taxes and other, net | 0.7 | 2.1 | 0.4 | ||||
Income tax expense (benefit) | 88.8 | (48.8) | 17.9 | ||||
Current payable: | |||||||
U.S. federal and state | 12 | 3 | |||||
Non-U.S. | 51.1 | 37.5 | 9.5 | ||||
Total | 63.1 | 40.5 | 9.5 | ||||
Noncurrent payable - U.S. federal | (1.6) | 70.1 | |||||
Deferred income taxes (benefit): | |||||||
U.S. federal and state | (1.8) | (13.7) | 4.3 | ||||
Non-U.S. | 29.1 | (145.7) | 4.1 | ||||
Total | 27.3 | (159.4) | 8.4 | ||||
Comprehensive provision for income taxes (benefit) allocable to: | |||||||
Net income | 88.8 | (48.8) | 17.9 | ||||
Other comprehensive income (loss): | |||||||
Currency translation | 19.8 | ||||||
Marketable securities | 1.6 | 1.3 | |||||
Interest rate swap | 1.1 | 0.2 | |||||
Total | 85 | (20.9) | 18.4 | ||||
Defined Benefit Pension Plans | |||||||
Other comprehensive income (loss): | |||||||
Benefit plans | (3.6) | 5.6 | (0.8) | ||||
OPEB | |||||||
Other comprehensive income (loss): | |||||||
Benefit plans | (0.2) | $ (0.2) | (0.2) | ||||
U.S. - Canada APA | |||||||
Schedule Of Income Tax [Line Items] | |||||||
APA | $ (3.4) | ||||||
Canada - Germany APA | |||||||
Schedule Of Income Tax [Line Items] | |||||||
APA | $ (11.8) | $ (1.4) |
Income Taxes - Components of _2
Income Taxes - Components of Income Taxes and Comprehensive Provision for Income Taxes Allocation (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. Federal statutory income tax rate | 21.00% | 35.00% | 35.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2017CAD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Income Tax [Line Items] | ||||||||||||||
U.S. Federal statutory income tax rate | 21.00% | 35.00% | 35.00% | |||||||||||
Deferred tax assets valuation allowance | $ 2,900,000 | $ 2,900,000 | $ 2,900,000 | $ 2,900,000 | $ 2,900,000 | $ 2,900,000 | ||||||||
Transition tax | (1,700,000) | 76,200,000 | (1,700,000) | 76,200,000 | ||||||||||
Income tax liability payable period | 8 years | |||||||||||||
Prior period income tax expense paid in current fiscal year | $ 6,100,000 | 6,100,000 | 6,100,000 | 6,100,000 | ||||||||||
Aggregate Transition tax installments payments made | 11,900,000 | 11,900,000 | ||||||||||||
Noncurrent payable to affiliate | 70,100,000 | 56,600,000 | 70,100,000 | 70,100,000 | 56,600,000 | 70,100,000 | ||||||||
Current payable to affiliate | 16,200,000 | 27,100,000 | 16,200,000 | 16,200,000 | 27,100,000 | 16,200,000 | ||||||||
Current cash income tax expense | 3,700,000 | 3,700,000 | ||||||||||||
Valuation allowance | (205,400,000) | $ (2,200,000) | ||||||||||||
Income tax expense (benefit) related to increase (decrease) in reserve for uncertain tax positions | 700,000 | $ 1,400,000 | 2,100,000 | (8,600,000) | 2,400,000 | |||||||||
Amount of interest and penalties | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
Unrecognized Tax Benefits | $ 2,100,000 | 4,100,000 | 2,100,000 | 2,100,000 | $ 4,100,000 | 2,100,000 | 9,900,000 | $ 9,700,000 | ||||||
U.S. - Canada APA | ||||||||||||||
Income Tax [Line Items] | ||||||||||||||
Advance Pricing Agreement, description | None of our U.S. and non-U.S. tax returns are currently under examination. As a result of prior audits in certain jurisdictions, which are now settled, in 2008 we filed Advance Pricing Agreement Requests with the tax authorities in the U.S., Canada and Germany. These requests have been under review with the respective tax authorities since 2008 and prior to 2016, it was uncertain whether an agreement would be reached between the tax authorities and whether we would agree to execute and finalize such agreements | |||||||||||||
Current U.S. income tax benefit | (3,400,000) | |||||||||||||
Non-U.S. subsidiary treated as dual resident | ||||||||||||||
Income Tax [Line Items] | ||||||||||||||
Valuation allowance | (18,700,000) | |||||||||||||
Canadian Subsidiary | U.S. - Canada APA | ||||||||||||||
Income Tax [Line Items] | ||||||||||||||
Income tax paid in cash | $ 2,300,000 | $ 3 | ||||||||||||
Canadian Subsidiary | Canada - Germany APA | ||||||||||||||
Income Tax [Line Items] | ||||||||||||||
Income tax expense (benefit) related to increase (decrease) in reserve for uncertain tax positions | (8,600,000) | |||||||||||||
Non-cash income tax benefit related to increase in German NOLs | 2,600,000 | |||||||||||||
Cash tax refund | 600,000 | |||||||||||||
German Subsidiary | Canada - Germany APA | ||||||||||||||
Income Tax [Line Items] | ||||||||||||||
Noncash income tax benefit related to APA tax settlement payment | $ 1,400,000 | |||||||||||||
European and Canadian Subsidiaries | ||||||||||||||
Income Tax [Line Items] | ||||||||||||||
Deferred income tax on undistributed earnings of european and canadian subsidiaries | 4,500,000 | $ 2,400,000 | ||||||||||||
Valhi | Income Tax Payable | ||||||||||||||
Income Tax [Line Items] | ||||||||||||||
Income tax expense paid in current period | 5,800,000 | 5,800,000 | ||||||||||||
Payable to affiliate | 62,600,000 | 62,600,000 | ||||||||||||
Noncurrent payable to affiliate | 56,600,000 | 56,600,000 | ||||||||||||
Current payable to affiliate | 6,000,000 | $ 6,000,000 | ||||||||||||
Maximum | ||||||||||||||
Income Tax [Line Items] | ||||||||||||||
Percentage of annual usage limitation on net operating loss carryforward | 80.00% | |||||||||||||
Reversal of Valuation Allowance | ||||||||||||||
Income Tax [Line Items] | ||||||||||||||
Deferred tax assets valuation allowance | 173,000,000 | |||||||||||||
Increase (decrease) in non-cash deferred income tax asset valuation allowance | $ (24,100,000) | $ (149,900,000) | ||||||||||||
Effect of Currency Exchange Rates | ||||||||||||||
Income Tax [Line Items] | ||||||||||||||
Increase (decrease) in non-cash deferred income tax asset valuation allowance | 13,700,000 | |||||||||||||
Canada Revenue Agency | Canadian Subsidiary | U.S. - Canada APA | Earliest Tax Year | ||||||||||||||
Income Tax [Line Items] | ||||||||||||||
Effective tax year | 2005 | |||||||||||||
Canada Revenue Agency | Canadian Subsidiary | U.S. - Canada APA | Latest Tax Year | ||||||||||||||
Income Tax [Line Items] | ||||||||||||||
Effective tax year | 2015 | |||||||||||||
Germany | Reversal of Valuation Allowance | ||||||||||||||
Income Tax [Line Items] | ||||||||||||||
Deferred tax assets valuation allowance | 153,000,000 | |||||||||||||
Increase (decrease) in non-cash deferred income tax asset valuation allowance | (141,900,000) | |||||||||||||
Germany | Corporate Purposes | ||||||||||||||
Income Tax [Line Items] | ||||||||||||||
Net operating loss carryforwards | 541,000,000 | $ 541,000,000 | ||||||||||||
Belgium | Reversal of Valuation Allowance | ||||||||||||||
Income Tax [Line Items] | ||||||||||||||
Deferred tax assets valuation allowance | $ 20,000,000 | |||||||||||||
Increase (decrease) in non-cash deferred income tax asset valuation allowance | (8,000,000) | |||||||||||||
Belgium | Corporate Purposes | ||||||||||||||
Income Tax [Line Items] | ||||||||||||||
Net operating loss carryforwards | $ 16,000,000 | $ 16,000,000 | ||||||||||||
Germany and Belgian | ||||||||||||||
Income Tax [Line Items] | ||||||||||||||
Increase (decrease) in non-cash deferred income tax asset valuation allowance | $ (12,700,000) | $ (186,700,000) | ||||||||||||
Valuation allowance | $ (16,300,000) | $ (7,800,000) | $ (157,600,000) | $ (5,000,000) |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Income Taxes (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Inventories, Assets | $ 4.3 | $ 3 |
Accrued OPEB costs, Assets | 2.1 | 2.2 |
Accrued pension costs, Assets | 73.7 | 69.1 |
Other accrued liabilities and deductible differences, Assets | 10.4 | 10.2 |
Tax loss and tax credit carryforwards, Assets | 86.6 | 116.2 |
Valuation allowance, Assets | (2.9) | (2.9) |
Adjusted gross deferred tax assets | 174.2 | 197.8 |
Netting by tax jurisdiction, Assets | (52.2) | (58.6) |
Net noncurrent deferred tax asset | 122 | 139.2 |
Inventories, Liabilities | (3.1) | (0.6) |
Property and equipment, Liabilities | (56.9) | (57.2) |
Other taxable differences, Liabilities | (2.4) | (2.6) |
Tax on unremitted earnings of non-U.S. subsidiaries, Liabilities | (11.3) | (9.5) |
Adjusted gross deferred tax liabilities | (73.7) | (69.9) |
Netting by tax jurisdiction, Liabilities | 52.2 | 58.6 |
Net noncurrent deferred tax liability | $ (21.5) | $ (11.3) |
Income Taxes - Changes in Amoun
Income Taxes - Changes in Amount of Uncertain Tax Positions (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in unrecognized tax benefits: | |||
Unrecognized tax benefits at beginning of year | $ 2.1 | $ 9.9 | $ 9.7 |
Net increase (decrease): | |||
Tax positions taken in prior periods | 1.4 | (6.3) | (0.1) |
Tax positions taken in current period | 0.7 | 0.2 | 2.5 |
Lapse due to applicable statute of limitations | (0.1) | (0.2) | |
Settlements with taxing authorities | (2.3) | (2.3) | |
Change in currency exchange rates | (0.1) | 0.7 | 0.3 |
Unrecognized tax benefits at end of year | $ 4.1 | $ 2.1 | $ 9.9 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - shares | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stockholders Equity Note [Abstract] | ||||
Existing long-term incentive plan | 200,000 | |||
Shares available for future award under proposed long term incentive plan | 149,900 | |||
Shares awarded under proposed long term incentive plan | 5,600 | 8,000 | 13,500 | |
Number of shares authorized for repurchase | 2,000,000 | |||
Shares available for repurchase under the plan | 1,951,000 |
Stockholder's Equity - Schedule
Stockholder's Equity - Schedule of Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | $ 754.3 | $ 395 | $ 461.9 |
Balance as adjusted | 754.3 | ||
Ending Balance | 839.8 | 754.3 | 395 |
Currency Translation | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (211.9) | (269.6) | (252) |
Other comprehensive income (loss) | (33.1) | 57.7 | (17.6) |
Ending Balance | (245) | (211.9) | (269.6) |
Accumulated Defined Benefit Plans Adjustment | Defined Benefit Pension Plans | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (172.8) | (184.8) | (159.2) |
Other comprehensive income (loss) | 10.4 | 9.8 | 8.5 |
Net actuarial gain (loss) arising during year | (17.6) | 2.2 | (34.1) |
Ending Balance | (180) | (172.8) | (184.8) |
Accumulated Defined Benefit Plans Adjustment | OPEB Plans | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | 1.2 | 1.8 | 2.1 |
Other comprehensive income (loss) | (0.3) | (0.3) | (0.4) |
Net actuarial gain (loss) arising during year | (0.2) | (0.3) | 0.1 |
Ending Balance | 0.7 | 1.2 | 1.8 |
Marketable Securities | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | 4.8 | 1.8 | (0.6) |
Change in accounting principle - ASU 2016-01 | (4.8) | ||
Balance as adjusted | 1.8 | (0.6) | |
Other comprehensive income (loss) | 3 | 2.4 | |
Ending Balance | 4.8 | 1.8 | |
Interest Rate Swap | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (2) | (2.3) | |
Other comprehensive income (loss) | (1.5) | (2) | |
Less reclassification adjustment for amounts included in earnings | 3.5 | 2.3 | |
Ending Balance | (2) | ||
Total Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (378.7) | (452.8) | (412) |
Change in accounting principle - ASU 2016-01 | (4.8) | ||
Balance as adjusted | (383.5) | (452.8) | (412) |
Other comprehensive income (loss) | (40.8) | 74.1 | (40.8) |
Ending Balance | $ (424.3) | $ (378.7) | $ (452.8) |
Related Party Transactions - Su
Related Party Transactions - Summary of Receivables from and Payables to Affiliates (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Current receivable from affiliate | $ 13 | $ 27.4 |
Noncurrent receivable from affiliate | 13.6 | |
Current payable to affiliate | 27.1 | 16.2 |
Noncurrent payable to affiliate | 56.6 | 70.1 |
Valhi | Income Tax Payable | ||
Related Party Transaction [Line Items] | ||
Current payable to affiliate | 10.4 | |
Valhi | Income Tax Payable | ||
Related Party Transaction [Line Items] | ||
Noncurrent payable to affiliate | 56.6 | 70.1 |
Valhi | Income Tax Receivable | ||
Related Party Transaction [Line Items] | ||
Current receivable from affiliate | 15.3 | |
Valhi | Note Receivable | ||
Related Party Transaction [Line Items] | ||
Noncurrent receivable from affiliate | 13.6 | |
Other Affiliates | Other Receivable | ||
Related Party Transaction [Line Items] | ||
Current receivable from affiliate | 2.8 | 3.2 |
Louisiana Pigment Company, L.P. | Trade Items | ||
Related Party Transaction [Line Items] | ||
Current receivable from affiliate | 10.2 | 8.9 |
Current payable to affiliate | $ 16.7 | $ 16.2 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Contran | |||
Related Party Transaction [Line Items] | |||
Expense transaction with affiliate | $ 100,000 | $ 100,000 | $ 100,000 |
Contran | Intercorporate Services Agreement | |||
Related Party Transaction [Line Items] | |||
Intercorporate services fees | 21,100,000 | 16,300,000 | 15,200,000 |
LPC | Titanium Dioxide Pigments | |||
Related Party Transaction [Line Items] | |||
Purchase of TiO2 | 165,900,000 | 157,500,000 | 157,500,000 |
LPC | Titanium Dioxide Feedstock | |||
Related Party Transaction [Line Items] | |||
Sales of feedstock ore to LPC | 66,900,000 | 79,400,000 | 68,800,000 |
Valhi Inc | Unsecured Revolving Demand Promissory Note | |||
Related Party Transaction [Line Items] | |||
Outstanding loans under promissory note | $ 0 | 13,600,000 | |
Maximum lending capacity | $ 60,000,000 | ||
Percentage of Interest over Prime rate | 1.00% | ||
Interest payable quarterly for the loan | prime plus 1.00% | ||
Valhi Inc | Unsecured Revolving Demand Promissory Note | Interest Income | |||
Related Party Transaction [Line Items] | |||
Interest income on loan | $ 300,000 | 400,000 | $ 400,000 |
Tall Pines Insurance Inc and EWIRE Inc | Insurance Premiums | |||
Related Party Transaction [Line Items] | |||
Expense transaction with affiliate | $ 10,400,000 | $ 9,300,000 | $ 9,200,000 |
Commitment and Contingencies -
Commitment and Contingencies - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)Customer | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Commitment And Contingencies [Line Items] | |||
TiO2 Customers | Customer | 4,000 | ||
Net Sales of TiO2 | 33.00% | 34.00% | 33.00% |
Current Tio2 production capacity in Leverkusen facility | 33.00% | ||
Net rent expense | $ 15 | $ 16 | $ 14 |
Aggregate future minimum rental commitments | 42.5 | ||
Leverkusen Facility Lease | |||
Commitment And Contingencies [Line Items] | |||
Aggregate future minimum rental commitments | $ 17 | ||
Minimum | |||
Commitment And Contingencies [Line Items] | |||
Long term master agreements expiring | 2019 | ||
Maximum | |||
Commitment And Contingencies [Line Items] | |||
Long term master agreements expiring | 2022 | ||
Feedstock | |||
Commitment And Contingencies [Line Items] | |||
Minimum purchase commitments | $ 594 | ||
Various Raw Materials and Services | |||
Commitment And Contingencies [Line Items] | |||
Minimum purchase commitments | $ 156 | ||
Net Sales | Product Concentration Risk | Titanium Dioxide Pigments | |||
Commitment And Contingencies [Line Items] | |||
Approximate percent sales by volume | 94.00% | 94.00% | 93.00% |
Net Sales | Customer Concentration Risk | Behr Process Corporation | |||
Commitment And Contingencies [Line Items] | |||
Approximate percent sales by volume | 10.00% |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Approximate Percentage of TiO2 Sales by Volume (Detail) - Net Sales - Geographic Concentration Risk | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
European | |||
Schedule Of Net Sales By Geographical Segment [Line Items] | |||
Approximate percent sales by volume | 44.00% | 50.00% | 51.00% |
North America | |||
Schedule Of Net Sales By Geographical Segment [Line Items] | |||
Approximate percent sales by volume | 37.00% | 31.00% | 29.00% |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Future Minimum Payments Under Non-cancellable Operating Leases (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2019 | $ 6.2 |
2020 | 5 |
2021 | 4.2 |
2022 | 3.2 |
2023 | 2.4 |
2024 and thereafter | 21.5 |
Total | $ 42.5 |
Financial Instruments - Valuati
Financial Instruments - Valuation of Financial Instruments Recorded on Fair Value Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Noncurrent marketable securities | $ 3.4 | $ 10.7 |
Fair Value Measurements Recurring | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Noncurrent marketable securities | 3.4 | 10.7 |
Fair Value Measurements Recurring | Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Noncurrent marketable securities | $ 3.4 | $ 10.7 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) | 1 Months Ended | 8 Months Ended | 12 Months Ended | |||
Sep. 30, 2017USD ($) | Aug. 31, 2015USD ($) | Aug. 31, 2017USD ($) | Dec. 31, 2018EUR (€)DerivativeContract | Dec. 31, 2017USD ($)DerivativeContract | Dec. 31, 2016USD ($) | |
Financial Instrument At Fair Value [Line Items] | ||||||
Interest rate swap termination payment included in cash paid for interest | $ 3,300,000 | |||||
Term Loan | ||||||
Financial Instrument At Fair Value [Line Items] | ||||||
Termination of interest rate swap contract | $ 3,300,000 | |||||
Senior Notes | ||||||
Financial Instrument At Fair Value [Line Items] | ||||||
Debt instrument base principal amount | € | € 1,000 | |||||
Debt instrument estimated market price per €1000 principal amount | € | € 900 | |||||
Currency Forward Contracts | ||||||
Financial Instrument At Fair Value [Line Items] | ||||||
Number of derivative contacts outstanding | DerivativeContract | 0 | 0 | ||||
Interest Rate Swap | ||||||
Financial Instrument At Fair Value [Line Items] | ||||||
Pretax unrealized loss recognized in other comprehensive income (loss) related to interest rate swap contract | $ 2,300,000 | $ 3,100,000 | ||||
Gain loss recognized in earnings on hedge ineffectiveness | $ 0 | |||||
Interest Rate Swap | Interest Expense | ||||||
Financial Instrument At Fair Value [Line Items] | ||||||
Reclassified from accumulated other comprehensive loss in to earnings | $ 2,100,000 | $ 3,500,000 | ||||
Interest Rate Swap | London Interbank Offered Rate (LIBOR) | ||||||
Financial Instrument At Fair Value [Line Items] | ||||||
Interest rate swap, fixed rate | 2.016% | |||||
Interest rate swap, floor rate | 1.00% | |||||
Interest rate swap, effective date | Sep. 30, 2015 | |||||
Derivative instrument, notional amount | $ 344,800,000 | |||||
Interest rate swap, notional amount decline each quarter | $ 875,000 | |||||
Interest rate swap, notional amount decline commencing date | Dec. 31, 2015 | |||||
Interest rate swap, original final maturity date | Feb. 29, 2020 |
Financial Instruments - Financi
Financial Instruments - Financial Instruments not Carried at Fair Value but which Require Fair Value Disclosure (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||||
Cash, cash equivalents and restricted cash, Carrying amount | $ 374.7 | $ 323.7 | $ 52.3 | $ 94.3 |
Long-term debt - Fixed rate Senior Notes, Carrying amount | 452.4 | 471.1 | ||
Common stockholders' equity, Carrying amount | 839.8 | 754.3 | $ 395 | $ 461.9 |
Cash, cash equivalents and restricted cash, Fair value | 374.7 | 323.7 | ||
Long-term debt - Fixed rate Senior Notes, Fair value | 412.9 | 495.1 | ||
Common stockholders' equity, Fair value | $ 1,335.3 | $ 2,986.8 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
ASU 2017-07 | Cost of Sales | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Reclassification adjustment to other components of net periodic pension and OPEB cost | $ 10.8 | $ 7.7 | |
ASU 2017-07 | Selling, General and Administrative Expenses | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Reclassification adjustment to other components of net periodic pension and OPEB cost | $ 6.6 | $ 4.1 | |
ASU 2016-01 | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Accumulated other comprehensive income related to marketable securities reclassified to beginning retained earnings | $ 4.8 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) - Quarterly Results of Operation (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Net sales | $ 349.4 | $ 410.3 | $ 471.8 | $ 430.4 | $ 453.3 | $ 464.5 | $ 441.4 | $ 369.8 | $ 1,661.9 | $ 1,729 | $ 1,364.3 |
Gross margin | 96.5 | 119.1 | 171.8 | 174.8 | 176.3 | 155 | 132.4 | 106 | 562.2 | 569.7 | 264.7 |
Net income | $ 24 | $ 32.6 | $ 77.7 | $ 70.7 | $ 47.4 | $ 73.8 | $ 196.5 | $ 36.8 | $ 205 | $ 354.5 | $ 43.3 |
Basic and diluted income per share | $ 0.21 | $ 0.28 | $ 0.67 | $ 0.61 | $ 0.41 | $ 0.64 | $ 1.70 | $ 0.32 | $ 1.77 | $ 3.06 | $ 0.37 |
Quarterly Results of Operatio_4
Quarterly Results of Operations - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Quarterly Financial Information [Line Items] | |||||||||
Loss on prepayment of debt | $ 7.1 | $ 7.1 | |||||||
Valuation allowance | (205.4) | $ (2.2) | |||||||
Transition tax | $ 76.2 | ||||||||
Current cash tax income tax expense related to GILTI | $ 3.7 | $ 3.7 | |||||||
Income tax expense (benefit) related to increase (decrease) in reserve for uncertain tax positions | $ 0.7 | $ 1.4 | 2.1 | $ (8.6) | $ 2.4 | ||||
European Subsidiaries | |||||||||
Schedule Of Quarterly Financial Information [Line Items] | |||||||||
Deferred income tax on undistributed earnings of european subsidiaries | 4.5 | ||||||||
Canada - Germany APA | |||||||||
Schedule Of Quarterly Financial Information [Line Items] | |||||||||
Income tax expense (benefit) related to execution and finalization of advance pricing agreement | (11.8) | $ (1.4) | |||||||
Non-U.S. subsidiary treated as dual resident | |||||||||
Schedule Of Quarterly Financial Information [Line Items] | |||||||||
Valuation allowance | (18.7) | ||||||||
Germany and Belgian | |||||||||
Schedule Of Quarterly Financial Information [Line Items] | |||||||||
Valuation allowance | $ (16.3) | $ (7.8) | $ (157.6) | $ (5) |