Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | VHI | |
Entity Registrant Name | VALHI INC /DE/ | |
Entity Central Index Key | 59,255 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 339,170,949 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 478.8 | $ 435.7 |
Restricted cash equivalents | 15.4 | 16.1 |
Marketable securities | 0.6 | 3 |
Accounts and other receivables, net | 416.5 | 365.8 |
Land held for development | 8.4 | 16.5 |
Inventories, net | 447.3 | 398.4 |
Other current assets | 15.2 | 15.5 |
Current assets of discontinued operations | 11.2 | |
Total current assets | 1,382.2 | 1,262.2 |
Other assets: | ||
Marketable securities | 258.1 | 255.7 |
Investment in TiO2 manufacturing joint venture | 79.6 | 86.5 |
Goodwill | 379.7 | 379.7 |
Deferred income taxes | 112.9 | 119.8 |
Other assets | 189.6 | 174.1 |
Noncurrent assets of discontinued operations | 40.8 | |
Total other assets | 1,019.9 | 1,056.6 |
Property and equipment: | ||
Land | 48.2 | 47 |
Buildings | 264 | 261.6 |
Equipment | 1,200 | 1,150.8 |
Mining properties | 35.3 | 35 |
Construction in progress | 33.3 | 58.3 |
Gross property and equipment | 1,580.8 | 1,552.7 |
Less accumulated depreciation | 985.2 | 964 |
Net property and equipment | 595.6 | 588.7 |
Total assets | 2,997.7 | 2,907.5 |
Current liabilities: | ||
Current maturities of long-term debt | 1.6 | 1.6 |
Accounts payable and accrual liabilities | 290 | 257.1 |
Income taxes | 32.9 | 25.1 |
Current liabilities of discontinued operations | 47.3 | |
Total current liabilities | 324.5 | 331.1 |
Noncurrent liabilities: | ||
Long-term debt | 1,089.4 | 1,041.5 |
Deferred income taxes | 169.1 | 183.2 |
Payable to affiliates | 70.1 | 70.1 |
Accrued pension costs | 272 | 266.4 |
Accrued environmental remediation and related costs | 101.6 | 110.7 |
Accrued postretirement benefits costs | 10.9 | 11.3 |
Other liabilities | 79.3 | 73.6 |
Noncurrent liabilities of discontinued operations | 52.9 | |
Total noncurrent liabilities | 1,792.4 | 1,809.7 |
Equity: Valhi stockholders' equity: | ||
Preferred stock | 667.3 | 667.3 |
Common stock | 3.6 | 3.6 |
Retained earnings (deficit) | 67.3 | (17.9) |
Accumulated other comprehensive loss | (170.2) | (179) |
Treasury stock, at cost | (49.6) | (49.6) |
Total Valhi stockholders’ equity | 518.4 | 424.4 |
Noncontrolling interest in subsidiaries | 362.4 | 342.3 |
Total equity | 880.8 | 766.7 |
Total liabilities and equity | 2,997.7 | 2,907.5 |
Commitments and contingencies (Notes 14 and 17) |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues and other income: | ||
Net sales | $ 466 | $ 405.3 |
Other income, net | 20.4 | 7.6 |
Total revenues and other income | 486.4 | 412.9 |
Costs and expenses: | ||
Cost of sales | 280.7 | 288.7 |
Selling, general and administrative | 80.2 | 63.5 |
Other components of net periodic pension and OPEB expense | 3.7 | 4.1 |
Interest | 15.4 | 14.5 |
Total costs and expenses | 380 | 370.8 |
Income from continuing operations before income taxes | 106.4 | 42.1 |
Income tax expense | 36.2 | 18.6 |
Net income from continuing operations | 70.2 | 23.5 |
Income (loss) from discontinued operations, net of tax | 37.6 | (1.7) |
Net income | 107.8 | 21.8 |
Noncontrolling interest in net income of subsidiaries | 18.5 | 9.1 |
Net income attributable to Valhi stockholders | 89.3 | 12.7 |
Amounts attributable to Valhi stockholders: | ||
Income from continuing operations | 51.7 | 14.4 |
Income (loss) from discontinued operations | 37.6 | (1.7) |
Net income attributable to Valhi stockholders | $ 89.3 | $ 12.7 |
Basic and diluted net income per share: | ||
Income from continuing operations | $ 0.15 | $ 0.04 |
Income from discontinued operations | 0.11 | |
Net income attributable to Valhi stockholders | 0.26 | 0.04 |
Cash dividends per share | $ 0.02 | $ 0.02 |
Basic and diluted weighted average shares outstanding | 342 | 342 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net income | $ 107.8 | $ 21.8 |
Other comprehensive income (loss), net of tax: | ||
Currency translation | 9.8 | 7.5 |
Marketable securities | (0.1) | (0.3) |
Interest rate swap | 0.5 | |
Total other comprehensive income, net | 12 | 10.3 |
Comprehensive income | 119.8 | 32.1 |
Comprehensive income attributable to noncontrolling interest | 21.7 | 11.8 |
Comprehensive income attributable to Valhi stockholders | 98.1 | 20.3 |
Defined Benefit Pension Plans | ||
Other comprehensive income (loss), net of tax: | ||
Pension and other postretirement benefit plan | 2.6 | 2.8 |
OPEB | ||
Other comprehensive income (loss), net of tax: | ||
Pension and other postretirement benefit plan | $ (0.3) | $ (0.2) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 107.8 | $ 21.8 |
Depreciation and amortization | 14.5 | 16.6 |
Benefit plan expense greater than cash funding | 0.5 | 3.4 |
Deferred income taxes | 37.2 | 2.5 |
Gain on sale of WCS | (58.4) | |
Gain on land sales | (12.5) | |
Distributions from (contributions to) Ti02 manufacturing joint venture, net | 5.5 | (3.1) |
Other, net | 1.6 | 0.8 |
Change in assets and liabilities: | ||
Accounts and other receivables, net | (40.9) | (27.7) |
Inventories, net | (41.8) | (12.4) |
Land held for development, net | (1.4) | (1.1) |
Accounts payable and accrued liabilities | 23 | 16.1 |
Accounts with affiliates | 3.4 | 4.7 |
Income taxes | 7.5 | 4.7 |
Other, net | 1.7 | 10.2 |
Net cash provided by operating activities | 47.7 | 36.5 |
Cash flows from investing activities: | ||
Capital expenditures | (16.9) | (13.7) |
Cash, cash equivalents and restricted cash and cash equivalents of discontinued operations at time of sale | (28.9) | |
Capitalized permit costs | (0.3) | |
Proceeds from sale of land | 19.5 | |
Purchases of marketable securities | (3.5) | (2.8) |
Disposals of marketable securities | 3.4 | 4.6 |
Other, net | 0.6 | 0.1 |
Net cash used in investing activities | (25.8) | (12.1) |
Indebtedness: | ||
Borrowings | 53.3 | |
Principal payments | (2.5) | (18.1) |
Deferred financing costs paid | (0.2) | |
Valhi cash dividends paid | (6.8) | (6.8) |
Distributions to noncontrolling interest in subsidiaries | (3.9) | (3.5) |
Other | 0.1 | |
Net cash provided by (used in) financing activities | (13.2) | 24.8 |
Cash, cash equivalents and restricted cash and cash equivalents - net change from: | ||
Operating, investing and financing activities | 8.7 | 49.2 |
Effect of exchange rates on cash | 5.4 | 1.2 |
Balance at beginning of period | 489.4 | 196.5 |
Balance at end of period | 503.5 | 246.9 |
Cash paid for: | ||
Interest, net of capitalized interest | 19.4 | 14.7 |
Income taxes, net | 13.7 | 4.5 |
Noncash investing activities: | ||
Change in accruals for capital expenditures | 1.8 | 4.2 |
Noncash financing activities: | ||
Trade payable to affiliate converted to indebtedness | $ 36.3 | |
Indebtedness borrowings paid directly to lender to settle refinanced indebtedness | 9.3 | |
Indebtedness principal payments paid directly by lender | (8.4) | |
Indebtedness borrowings paid directly to lender for debt issuance costs | $ (0.9) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF EQUITY - 3 months ended Mar. 31, 2018 - USD ($) $ in Millions | Total | Preferred stock | Common stock | Retained earnings (deficit) | Accumulated other comprehensive loss | Treasury stock | Non-controlling interest |
Balance at Dec. 31, 2017 | $ 766.7 | $ 667.3 | $ 3.6 | $ (17.9) | $ (179) | $ (49.6) | $ 342.3 |
Change in accounting principle – ASU 2014-09 at Dec. 31, 2017 | 5 | 2.7 | 2.3 | ||||
Balance at January 1, 2018, as adjusted at Dec. 31, 2017 | 771.7 | 667.3 | 3.6 | (15.2) | (179) | (49.6) | 344.6 |
Net income | 107.8 | 89.3 | 18.5 | ||||
Other comprehensive income, net | 12 | 8.8 | 3.2 | ||||
Cash dividends | (10.7) | (6.8) | (3.9) | ||||
Balance at Mar. 31, 2018 | $ 880.8 | $ 667.3 | $ 3.6 | $ 67.3 | $ (170.2) | $ (49.6) | $ 362.4 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Note 1—Organization and basis of presentation: Organization — We are majority owned by a wholly-owned subsidiary of Contran Corporation (“Contran”), which owns approximately 93% of our outstanding common stock at March 31, 2018. 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 and us. Basis of Presentation— Consolidated in this Quarterly Report are the results of our majority-owned and wholly-owned subsidiaries, including NL Industries, Inc., Kronos Worldwide, Inc., CompX International Inc., Tremont LLC, Basic Management, Inc. (“BMI”) and The LandWell Company (“LandWell”). Kronos (NYSE: KRO), NL (NYSE: NL), and CompX (NYSE MKT: CIX) each file periodic reports with the Securities and Exchange Commission (“SEC”). In January 2018, we sold Waste Control Specialists LLC (“WCS”). See Note 3. The unaudited Condensed Consolidated Financial Statements contained in this Quarterly Report have been prepared on the same basis as the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2017 that we filed with the SEC on March 15, 2018 (the “2017 Annual Report”). In our opinion, we have made all necessary adjustments (which include only normal recurring adjustments, other than the gain on the sale of WCS recognized in the first quarter of 2018 as discussed in Note 3), in order to state fairly, in all material respects, our consolidated financial position, results of operations and cash flows as of the dates and for the periods presented. We have condensed the Consolidated Balance Sheet at December 31, 2017 contained in this Quarterly Report as compared to our audited Consolidated Financial Statements at that date, and we have omitted certain information and footnote disclosures (including those related to the Consolidated Balance Sheet at December 31, 2017) normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Our results of operations for the interim period ended March 31, 2018 may not be indicative of our operating results for the full year. The Condensed Consolidated Financial Statements contained in this Quarterly Report should be read in conjunction with our 2017 Consolidated Financial Statements contained in our 2017 Annual Report. Unless otherwise indicated, references in this report to “we,” “us” or “our” refer to Valhi, Inc. and its subsidiaries (NYSE: VHI), taken as a whole. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 2—Business segment information: Business segment Entity % controlled at Chemicals Kronos 80 % Component products CompX 87 % Real estate management and development BMI and LandWell 63% - 77 % Our control of Kronos includes 50% we hold directly and 30% held directly by NL. We own 83% of NL. Our control of CompX is through NL. We own 63% of BMI. Our control of LandWell includes the 27% we hold directly and 50% held by BMI. Three months ended 2017 2018 (unaudited) Net sales: Chemicals $ 369.8 $ 430.4 Component products 29.9 28.4 Real estate management and development 5.6 7.2 Total net sales $ 405.3 $ 466.0 Cost of sales: Chemicals $ 264.2 $ 256.1 Component products 20.3 18.9 Real estate management and development 4.2 5.7 Total cost of sales $ 288.7 $ 280.7 Gross margin: Chemicals $ 105.6 $ 174.3 Component products 9.6 9.5 Real estate management and development 1.4 1.5 Total gross margin $ 116.6 $ 185.3 Operating income: Chemicals $ 59.1 $ 110.6 Component products 4.5 4.4 Real estate management and development .5 3.8 Total operating income 64.1 118.8 General corporate items: Securities earnings 7.0 8.3 Insurance recoveries .1 .2 Gain on land sales — 12.5 Other components of net periodic pension and OPEB expense (4.1 ) (3.7 ) General expenses, net (10.5 ) (14.3 ) Interest expense (14.5 ) (15.4 ) Income from continuing operations before income taxes $ 42.1 $ 106.4 Segment results we report may differ from amounts separately reported by our various subsidiaries due to purchase accounting adjustments and related amortization or differences in the way we define operating income. Intersegment sales are not material. |
Business Disposition
Business Disposition | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Business Disposition | Note 3—Business disposition — Waste Control Specialists LLC: Pursuant to an agreement we entered into in December 2017, on January 26, 2018 we completed the sale of our Waste Management Segment to JFL-WCS Partners, LLC ("JFL Partners"), an entity sponsored by certain investment affiliates of J.F. Lehman & Company, for consideration consisting of the assumption of all of WCS' third-party indebtedness and other liabilities. Our Waste Management Segment, which operated in the low-level radioactive, hazardous, toxic and other waste disposal industry historically struggled to generate sufficient recurring disposal volumes to generate positive operating results or cash flows. We believe the sale will enable us to focus more effort on continuing to develop our remaining segments which we believe have greater opportunity for higher returns than our Waste Management segment. In accordance with GAAP, the Waste Management Segment has been classified as discontinued operations in our Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Income for all periods presented. Also in accordance with GAAP, we have not reclassified our Condensed Consolidated Statement of Cash Flows to reflect the Waste Management Segment as discontinued operations. We recognized a pre-tax gain of approximately $58 million in the first quarter of 2018 on the transaction ($38.2 million, or $.11 per diluted share, net of tax) because the carrying value of the liabilities of the business assumed by the purchaser exceeded the carrying value of the assets sold at the time of the sale in large part due to the previously-reported long-lived asset impairment of $170.6 million recognized in the second quarter of 2017, as discussed in the 2017 Annual Report. The net assets of the disposed Waste Management Segment at the time we completed the sale on January 26, 2018 were not materially different as compared to December 31, 2017. Selected financial data for the operations of the disposed Waste Management Segment for periods prior to completing the sale is presented below. Current assets at December 31, 2017 consist principally of trade accounts receivable. December 31, 2017 (In millions) ASSETS Current assets $ 11.2 Restricted cash 27.2 Property and equipment, net 6.0 Other noncurrent assets 7.6 Total noncurrent assets 40.8 Total assets $ 52.0 LIABILITIES Current portion of long-term debt $ 3.0 Payable to Contran 36.1 Other current liabilities 8.2 Total current liabilities 47.3 Long-term debt 65.0 Deferred income taxes (43.8 ) Accrued noncurrent closure and post closure costs 31.7 Total noncurrent liabilities 52.9 Total liabilities $ 100.2 Three months ended March 31, 2017 2018 (1) (In millions) Net sales $ 21.5 $ 4.6 Operating income (loss) $ .6 $ (.4 ) Other expense, net (1.9 ) — Interest expense, net (1.2 ) (.3 ) Loss before taxes (2.5 ) (.7 ) Income tax expense (benefit) (.8 ) .1 Net loss (1.7 ) (.6 ) Pre-tax gain on disposal — 58.4 Income tax expense — 20.2 After-tax gain on disposal — 38.2 Total $ (1.7 ) $ 37.6 Net cash provided by operating activities $ 7.2 $ 2.3 Net cash provided by (used in) investing activities $ (.5 ) $ (.1 ) (1) Includes results of the Waste Management Segment though January 26, 2018, the date of the sale. In connection with the January 2018 sale, JFL Partners did not assume WCS’ trade payable owed to Contran, which consisted primarily of intercorporate service fees charged to WCS by Contran which WCS did not pay to Contran for several years. Immediately prior to the closing of the sale of WCS, Contran transferred its associated receivable of $36.3 million from WCS to Valhi, in return for a deemed $36.3 million borrowing by Valhi under its revolving credit facility with Contran, see Note 8. Valhi subsequently contributed such receivable from WCS to WCS’s equity, and the trade payable obligation of WCS was deemed paid in full. |
Accounts and Other Receivables,
Accounts and Other Receivables, Net | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Accounts and Other Receivables, Net | Note 4—Accounts and other receivables, net: December 31, March 31, (In millions) Trade accounts receivable: Kronos $ 301.4 $ 347.3 CompX 10.5 12.7 BMI and LandWell 1.6 1.0 VAT and other receivables 20.7 23.4 Refundable income taxes .5 .2 Receivable from affiliates: Contran – trade items 1.0 .9 Contran – income taxes 19.4 19.7 LPC – trade items 8.9 9.3 Other – trade items 3.3 3.5 Allowance for doubtful accounts (1.5 ) (1.5 ) Total $ 365.8 $ 416.5 |
Inventories, Net
Inventories, Net | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 5—Inventories, net: December 31, March 31, (In millions) Raw materials: Chemicals $ 106.9 $ 105.4 Component products 2.7 2.8 Total raw materials 109.6 108.2 Work in process: Chemicals 20.8 37.1 Component products 9.8 10.7 Total in-process products 30.6 47.8 Finished products: Chemicals 192.2 220.6 Component products 2.8 2.9 Total finished products 195.0 223.5 Supplies (chemicals) 63.2 67.8 Total $ 398.4 $ 447.3 |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Securities | Note 6—Marketable securities: Our marketable securities consist of marketable equity and debt securities. Prior to 2018, any unrealized gains or losses on equity securities were recognized through other comprehensive income, net of deferred income taxes. Beginning on January 1, 2018 with the adoption of Accounting Standards Update (“ASU”) 2016-01, our marketable equity securities will continue to be carried at fair value as noted above, but any unrealized gains or losses on the securities are now recognized as a component of other income included in the securities transactions, net on our Condensed Consolidated Statements of Income. See Note 19. Market Cost Unrealized (In millions) December 31, 2017: Current assets $ 3.0 3.0 — Noncurrent assets: The Amalgamated Sugar Company LLC $ 250.0 250.0 — Other 5.7 5.9 (.2 ) Total $ 255.7 255.9 (.2 ) March 31, 2018: Current assets $ .6 .6 — Noncurrent assets: The Amalgamated Sugar Company LLC $ 250.0 250.0 — Other 8.1 8.3 (.2 ) Total $ 258.1 258.3 (.2 ) All of our marketable securities are accounted for as available-for-sale, which are carried at fair value using quoted market prices, primarily Level 1 inputs as defined by ASC Topic 820, Fair Value Measurements and Disclosures |
Other Noncurrent Assets
Other Noncurrent Assets | 3 Months Ended |
Mar. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Noncurrent Assets | Note 7—Other noncurrent assets: December 31, March 31, (In millions) Other noncurrent assets: Land held for development $ 126.6 $ 128.9 Restricted cash 9.9 9.3 Land contract receivables — 9.9 IBNR receivables 6.8 6.8 Pension asset 4.2 6.2 Notes receivable - OPA — 3.1 Other 26.6 25.4 Total $ 174.1 $ 189.6 Land contract receivables classified as a noncurrent asset relate to our Real Estate Management and Development Segment. Such receivables relate to certain fees we collect from builders when the builder sells a home to a customer, as discussed in Note 19. As disclosed in Note 18 to our 2017 Annual Report under an Owner Participation Agreement (“OPA”) entered into by LandWell with the Redevelopment Agency of the City of Henderson, Nevada, if LandWell develops certain real property for commercial and residential purposes in a master planned community in Henderson, Nevada, the cost of certain public infrastructure may be reimbursed to us through tax increment. The maximum reimbursement under the OPA is $209 million, and is subject to, among other things, completing construction of approved qualifying public infrastructure, transferring title of such infrastructure to the City of Henderson, receiving approval from the Redevelopment Agency of the funds expended to be eligible for tax increment reimbursement and the existence of a sufficient property tax valuation base and property tax rates in order to generate tax increment reimbursement funds. We are entitled to receive 75% of the tax increment generated by the master planned community through 2036, subject to the qualifications and limitations indicated above. Public infrastructure costs previously incurred for which the Redevelopment Agency had provided its approval for tax increment reimbursement but we had not yet received such reimbursement through tax increment receipts aggregated $3.1 million at December 31, 2017. Such amount is evidenced by a promissory note issued to LandWell by the City of Henderson. Prior to 2018, due to the significant uncertainty of the timing and amount of any of such potential tax increment reimbursements, we recognized any such tax increment reimbursements only when received. However, due to growth in the master planned community and the increase in tax increment funds to which we are entitled, we determined in the first quarter of 2018 we expected the tax increment reimbursements to be collected in the future would at least be sufficient to support recognizing the $3.1 million note payable issued by the City of Henderson to us. The note payable bears interest at 6% annually and the note expires in 2036. Any unpaid balances in 2036 are forfeit. See Note 13. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 8—Long-term debt: December 31, March 31, (In millions) Valhi: Snake River Sugar Company $ 250.0 $ 250.0 Contran credit facility 284.3 320.6 Total Valhi debt 534.3 570.6 Subsidiary debt: Kronos: Senior Secured Notes 471.1 485.0 Tremont: Promissory note payable 13.1 10.9 BMI: Bank loan – Western Alliance Bank 18.8 18.8 LandWell: Note payable to the City of Henderson 2.5 2.5 Other 3.3 3.2 Total subsidiary debt 508.8 520.4 Total debt 1,043.1 1,091.0 Less current maturities 1.6 1.6 Total long-term debt $ 1,041.5 $ 1,089.4 Valhi – Contran credit facility – In connection with the sale of WCS discussed in Note 3, immediately prior to the closing of the sale, Contran transferred its associated receivable of $36.3 million from WCS to Valhi, in return for a deemed $36.3 million borrowing by Valhi under its revolving credit facility with Contran. The average interest rate on the existing balance as of and for the three months ended March 31, 2018 was 5.75% and 5.53%, respectively. At March 31, 2018, the equivalent of $39.4 million was available for borrowing under this facility. Kronos – Senior Secured Notes - At March 31, 2018, the carrying value of Kronos’ 3.75% Senior Secured Notes due September 15, 2025 (€400 million aggregate principal amount outstanding) is stated net of unamortized debt issuance costs of $7.5 million. North American and European revolving credit facilities – During the first three months of 2018, Kronos had no borrowings or repayments under its North American revolving credit facility and its European revolving credit facility. At March 31, 2018, approximately $115.2 million was available for additional borrowing under the North American Revolving credit facility. Kronos’ 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 March 31, 2018 and the net debt to EBITDA financial test, the full €90.0 million of the credit facility ($110.8 million) is available for borrowing availability at such date. Tremont – Promissory note payable – In January 2018, and following Tremont’s sale of certain land held for investment, discussed in Note 13, Tremont prepaid (without penalty) $2.2 million principal amount on the note as required under the terms of the note agreement. Restrictions and other – Certain of the credit facilities with unrelated, third-party lenders described above require the respective borrowers to maintain minimum levels of equity, require the maintenance of certain financial ratios, limit dividends and additional indebtedness and contain other provisions and restrictive covenants customary in lending transactions of this type. We are in compliance with all of our debt covenants at March 31, 2018. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Note 9—Accounts payable and accrued liabilities: December 31, March 31, (In millions) Accounts payable: Kronos $ 107.9 $ 117.3 CompX 2.3 2.8 BMI and LandWell 3.7 3.5 NL 1.8 1.2 Other .4 .4 Payable to affiliates: Contran – trade items — .1 LPC – trade items 16.2 13.8 Employee benefits 36.3 36.8 Deferred income 28.3 24.7 Accrued sales discounts and rebates 14.3 28.8 Environmental remediation and related costs 6.8 19.7 Interest 5.5 1.3 Other 33.6 39.6 Total $ 257.1 $ 290.0 |
Other noncurrent liabilities
Other noncurrent liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Noncurrent Liabilities | Note December 31, March 31, (In millions) Reserve for uncertain tax positions $ 16.5 $ 16.9 Deferred income 15.7 18.4 Employee benefits 8.4 8.7 Insurance claims and expenses 9.1 9.4 Deferred payment obligation 9.3 9.4 Accrued development costs 6.1 7.5 Other 8.5 9.0 Total $ 73.6 $ 79.3 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 11 – Revenue Recognition Chemicals and Component Products Segments - 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 No. 2014-09, , see Note 19, we record revenue when we satisfy our performance obligations to our customers by transferring control of our products to them, which generally occurs at point of shipment or upon delivery. Such transfer of control is also evidenced by transfer of legal title and other risks and rewards of ownership (giving the customer the ability to direct the use of, and obtain substantially all of the benefits of, the product), and our customers becoming obligated to pay us and such payment being probable of occurring. In certain arrangements we provide shipping and handling activities after the transfer of control to our customer (e.g. when control transfers prior to delivery). In such arrangements shipping and handling are considered fulfillment activities, and accordingly, such costs are accrued when the related revenue is recognized. Revenue is recorded in an amount that reflects the net consideration we expect to receive in exchange for our products. Prices for our products are based on terms specified in published list prices and purchase orders, which generally do not include financing components, noncash consideration or consideration paid to our customers. As our standard payment terms are less than one year, we have elected the practical expedient under ASC 606 and we have not assessed whether a contract has a significant financing component. We state sales net of price, early payment and distributor discounts as well as volume rebates (collectively, variable consideration). Variable consideration, to the extent present, is recognized as the amount to which we are most-likely to be entitled, using all information (historical, current and forecasted) that is reasonably available to us, and only to the extent that a significant reversal in the amount of the cumulative revenue recognized is not probable of occurring in a future period. Differences, if any, between estimates of the amount of variable consideration to which we will be entitled and the actual amount of such variable consideration have not been material in the past. We report any tax assessed by a governmental authority that we collect from our customers that is both imposed on and concurrent with our revenue-producing activities (such as sales, use, value added and excise taxes) on a net basis (meaning we do not recognize these taxes either in our revenues or in our costs and expenses). Frequently, we receive orders for products to be delivered over dates that may extend across reporting periods. We invoice for each delivery upon shipment and recognize revenue for each distinct shipment when all sales recognition criteria for that shipment have been satisfied. As scheduled delivery dates for these orders are within a one year period, under the optional exemption provided by ASC 606, we do not disclose sales allocated to future shipments of partially completed contracts. Real Estate Management and Development Segment – Our sales involve providing utility services, among other things, to an industrial park located in Henderson, Nevada and we are responsible for the delivery of water to the city of Henderson and various other users through a water distribution system we own. These sales involve single performance obligations and we record revenue when we satisfy our performance obligations to our customers generally after the service is performed and our customers become obligated to pay us and such payment being probable of occurring. Revenue is recorded in an amount that reflects the net consideration we expect to receive in exchange for our services. Prices for our products are based on contracted rates and do not include financing components, noncash consideration or consideration paid to our customers. As our standard payment terms are less than one year, we have elected the practical expedient under ASC 606 and we have not assessed whether a contract has a significant financing component. Our revenues also are related to efforts to develop certain real estate in Henderson, Nevada, including approximately 2,100 acres zoned for residential/planned community purposes and approximately 400 acres zoned for commercial and light industrial use. Contracts for land sales are negotiated on an individual basis, involve single performance obligations, and generally require us to complete property development and improvements after title passes to the buyer and we have received all or a substantial portion of the selling price. We recognize land sales revenue associated with the residential/planned community over time using cost based input methods. Land sales associated with the residential/planned community have variable consideration components which are based on a percentage of the builder’s ultimate selling price of residential housing unit to their customer (generally 3.5% of such sales price). The amount we recognize when a parcel is sold to a home builder is 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. By recognizing revenue over time using cost based input methods, revenues (including variable consideration) and profits are recognized in the same proportion of our progress towards completion of our contractual obligations, with our progress measured by costs incurred as a percentage of total costs estimated to be incurred relative to the parcels sold. Estimates of total costs expected to be incurred require significant management judgment, and the amount of revenue and profits that have been recognized to date are subject to revisions throughout the development period. The impact on the amount of revenue recognized resulting from any future change in the estimate of total costs estimated to be incurred would be accounted for prospectively in accordance with GAAP. We also receive variable consideration of 1% tied to the builders ultimate selling price to their customers which is intended to recover our expenses for marketing the entire residential/planned community. Because we control and direct the marketing campaign we recognize both the revenues and expenses on a gross basis. We record estimated deferred revenue on the amount to which we are most-likely to be entitled and deferred revenue is recognized into revenue as the housing units are sold. Disaggregation of sales –The following table disaggregates the net sales of our Chemicals Segment the categories that depict how the nature, amount timing and uncertainty of revenue and cash flows are affected by economic factors (as required by ASC 606). Three months ended March 31, 2017 2018 (In millions) Net sales – point of origin: Germany $ 183.6 $ 234.5 United States 205.7 196.8 Canada 77.9 71.6 Belgium 58.1 69.7 Norway 47.3 53.1 Eliminations (202.8 ) (195.3 ) Total $ 369.8 $ 430.4 Net sales – point of destination: Europe $ 179.7 $ 233.9 North America 124.0 127.0 Other 66.1 69.5 $ 369.8 $ 430.4 The following table disaggregates the net sales of our Component Products and Real Estate Management and Development Segments by major product line. Three months ended March 31, 2017 2018 (In millions) Component Products: Net sales: Security products $ 26.0 $ 24.1 Marine components 3.9 4.3 $ 29.9 $ 28.4 Real Estate Management and Development: Net sales: Land sales $ 3.7 $ 5.8 Water delivery 1.3 .9 Utility and other .6 .5 $ 5.6 $ 7.2 |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note 12—Employee benefit plans: The components of our net periodic defined benefit pension cost are presented in the table below. Three months ended 2017 2018 (In millions) Service cost $ 2.7 $ 3.0 Interest cost 3.8 4.0 Expected return on plan assets (3.2 ) (4.0 ) Amortization of unrecognized prior service cost .1 .1 Recognized actuarial losses 3.6 3.8 Total $ 7.0 $ 6.9 The components of our net periodic other postretirement benefit cost are presented in the table below. Three months ended 2017 2018 (In millions) Interest cost $ .1 $ .1 Amortization of prior service credit (.2 ) (.3 ) Recognized actuarial gains (.1 ) — Total $ (.2 ) $ (.2 ) Upon the adoption of ASU ASU 2017-07, Compensation— Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
Other Income, Net
Other Income, Net | 3 Months Ended |
Mar. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Other Income, Net | Note 13—Other income, net: Three months ended 2017 2018 (In millions) Securities earnings: Dividends and interest $ 7.0 $ 8.3 Currency transactions, net (.2 ) (5.0 ) Insurance recoveries .1 .2 Infrastructure reimbursement .2 3.8 Gain on land sales — 12.5 Other, net .7 .6 Total $ 7.6 $ 20.4 Insurance recoveries reflect, in part, amounts NL received from certain of its former insurance carriers and relate to the recovery of prior lead pigment and asbestos litigation defense costs incurred by NL. See Note 17. Infrastructure reimbursement costs relate principally to tax increment reimbursements of our Real Estate Management and Development Segment discussed in Note 7. In the first quarter of 2018 we sold two parcels of land not used in our operating activities. We sold the first parcel for net proceeds of $18.9 million, and recognized a pre-tax gain on the sale of $11.9 million. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14—Income taxes: Three months ended 2017 2018 (In millions) Expected tax expense, at U.S. federal statutory income tax rate of 35% in 2017 and 21% in 2018 $ 14.7 $ 22.4 Incremental net tax on earnings and losses of non-U.S. and non-tax group companies 11.2 4.1 Non-U.S. tax rates (2.4 ) 7.0 Valuation allowance (5.0 ) .3 Adjustment to the reserve for uncertain tax positions, net .5 1.6 Canada – Germany APA — (1.4 ) Nondeductible expenses .4 .4 Domestic production activities deduction (.6 ) — U.S. state income taxes and other, net (.2 ) 1.8 Income tax expense $ 18.6 $ 36.2 Comprehensive provision for income taxes (benefit) allocable to: Income from continuing operations $ 18.6 $ 36.2 Discontinued operations (.8 ) 20.1 Retained earnings – change in accounting principle — 1.1 Other comprehensive income (loss): Currency translation 1.8 1.4 Pension plans .9 1.5 OPEB plans (.1 ) (.1 ) Interest rate swap .4 — Marketable securities (.1 ) — Total $ 20.7 $ 60.2 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 2017 and 21% in 2018. The amount shown on such table for incremental net tax (benefit) on earnings and losses on non-U.S. and non-tax group 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 Chemicals Segment’s Canadian subsidiary and, beginning in 2018, the post-1986 undistributed earnings of our Chemicals Segment’s European subsidiaries (such post-1986 undistributed earnings were subject to a permanent reinvestment plan until December 31, 2017), (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 Kronos’ 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, (iv) deferred income taxes associated with our direct investment in Kronos and (v) current and deferred income taxes associated with distributions and earnings from our investment in LandWell and BMI. Our Chemicals Segment has substantial net operating loss (NOL) carryforwards in Germany (the equivalent of $652 million for German corporate purposes and $.5 million for German trade tax purposes at December 31, 2017) and in Belgium (the equivalent of $50 million for Belgian corporate tax purposes at December 31, 2017), 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. As discussed in the 2017 Annual Report, commencing June 30, 2015, 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 Chemicals Segment’s German and Belgian net deferred income tax assets at such date. We continued to conclude such losses did not meet the more-likely-than-not recognition criteria through March 31, 2017, and during the first quarter of 2017 Kronos recognized an aggregate non-cash deferred income tax benefit of $5.0 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. As also discussed in the 2017 Annual Report, 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 Chemicals Segment’s German and Belgian operations. As discussed in the 2017 Annual Report, 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 (vi) 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 are required to revalue our net deferred tax liability 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 taxable temporary differences was based on our net deferred tax as of December 31, 2017. Such revaluation resulted in a provisional non-cash deferred income tax benefit of $77.1 million recognized as of December 31, 2017 in continuing operations, reducing our net deferred income tax liability. The amounts recorded as of December 31, 2017 as a result of the 2017 Tax Act represent estimates based on information currently available. We have not made any additional measurement-period adjustments to the provisional amounts recorded for this item during the first quarter of 2018 because we are still waiting on additional guidance that may impact the income tax effects of the new legislation recognized at December 31, 2017. We will complete our accounting for this item within the prescribed measurement period ending December 22, 2018, pursuant to the guidance under SAB 118, and if we determine an adjustment to the provisional amount recognized at December 31, 2017 is required, we will recognize such adjustment in the reporting period within the SAB 118 measurement period in which such adjustment is determined. 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 represent estimates based on information currently available. 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 and is netted with our current receivables from affiliates (income taxes receivable from Contran) classified as a current asset in our Condensed Consolidated Balance Sheet, and the remaining $70.1 million is recorded as a noncurrent payable to affiliate (income taxes payable to Contran) classified as a noncurrent liability in our Condensed Consolidated Balance Sheet and will be paid in increments over the remainder of the eight year period. We have not made any measurement-period adjustments to the provisional amounts recorded for this item during the first quarter of 2018 because no new information became available during the period that required an adjustment. We are continuing to gather information and await further guidance, primarily from the state jurisdictions in which we operate, and given the complexities of these new rules and the long time period over which information about our subsidiaries is needed, further guidance is necessary in order to determine the amount of the Transition Tax, which may impact the amount of the Transition Tax recognized in the fourth quarter of 2017. We will complete our accounting for this item within the prescribed measurement period ending December 22, 2018, pursuant to the guidance under SAB 118, and if we determine an adjustment to the provisional amount recognized at December 31, 2017 is required, we will recognize such adjustment in the reporting period within the SAB 118 measurement period in which such adjustment is determined. 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 $5.3 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 represent 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 the first quarter of 2018. However, we recorded a provisional non-cash deferred income tax expense of $.8 million for the estimated 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 the first quarter of 2018. We are continuing our review of certain other provisions under the 2017 Tax Act and waiting on further guidance primarily from the state jurisdictions in which we operate that may impact our determination of the aggregate temporary differences attributable to our investments in our non-U.S. subsidiaries. We will complete our accounting for this item within the prescribed measurement period ending December 22, 2018, pursuant to the guidance under SAB 118., and if we determine an adjustment to the provisional amount recognized at December 31, 2017 and March 31, 2018 are required, we will recognize such adjustment in the reporting period within the SAB 118 measurement period in which such adjustment is determined. 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”). Our selection of an accounting policy related to the GILTI tax provisions will depend, in part, on analyzing our global income to determine whether we expect to have future U.S. inclusions in taxable income related to GILTI and, if so, what the impact is expected to be. 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. As such, we performed an analysis of GILTI’s impact on our provision and determined the impact is not material. Because the impact is not material to our tax provision, we have not recorded any adjustments related to potential GILTI tax in our financial statements in the first quarter of 2018. Further, we have not made a policy decision regarding whether to record deferred taxes on GILTI or record GILTI tax as a current-period expense when incurred. We will complete our policy election for this item within the prescribed measurement period ending December 22, 2018, pursuant to the guidance under SAB 118 and if we determine such policy election impacts our provision, we will recognize an adjustment in the reporting period within the SAB 118 measurement period in which such adjustment is determined. Similarly, we have evaluated the tax impact of BEAT on our tax provision in the first quarter of 2018 and determined that the tax law has no material impact on our tax provision as we have historically not entered into international payments between related parties that are unrelated to cost of goods sold. The 2017 Tax Act amended the rules limiting the deduction for business interest expense beginning in 2018. The limitation applies to all taxpayers and our annual deduction for business interest expense is limited to the sum of our business interest income and 30% of our adjusted taxable income as defined under the 2017 Tax Act. Any business interest expense not allowed as a deduction as a result of the limitation may be carryforward indefinitely and is treated as interest paid in the carryforward year subject to the respective year’s limitation. We have determined that our interest expense for 2018 is limited under these provisions, in part because of the loss we recognized on the sale of WCS for income tax purposes. We have concluded that we are required to recognize a non-cash deferred income tax asset valuation allowance under the more-likely-than-not recognition criteria with respect to a portion of our deferred tax asset attributable to the nondeductible amount of business interest expense carryforward. Consequently, our provision for income taxes in the first quarter of 2018 includes a non-cash deferred income tax expense of $5.9 million for the amount of such deferred income tax asset that we have determined does not meet the more-likely-than-not recognition criteria. In accordance with the ASC 740 guidance regarding intra-period allocation of income taxes, such non-cash deferred income tax expense is classified as part of the income taxes associated with the pre-tax gain we recognized for financial reporting purposes on the sale of WCS, which is classified as part of discontinued operations as discussed in Note 3. We recognize deferred income taxes with respect to the excess of the financial reporting carrying amount over the income tax basis of our direct investment in Kronos common stock because the exemption under GAAP to avoid such recognition of deferred income taxes is not available to us. At December 31, 2017, we had recognized a deferred income tax liability with respect to our direct investment in Kronos of $157.6 million. There is a maximum amount (or cap) of such deferred income taxes we are required to recognize with respect to our direct investment in Kronos. The maximum amount of such deferred income tax liability we would be required to have recognized (the cap) is $173.0 million. During the first quarter of 2018, we recognized a non-cash deferred income tax expense with respect to our direct investment in Kronos of $3.6 million for the increase in the deferred income taxes required to be recognized with respect to the excess of the financial reporting carrying amount over the income tax basis of our direct investment in Kronos common stock, to the extent such increase related to our equity in Kronos’ net income during such period. We recognized a similar non-cash deferred income tax expense of $10 million in the first quarter of 2017. A portion of the net change with respect to the excess of the financial reporting carrying amount over the income tax basis of our direct investment in Kronos common stock during such periods related to our equity in Kronos’ other comprehensive income (loss) items, and the amounts shown in the table above for income tax expense (benefit) allocated to other comprehensive income (loss) items includes amounts related to our equity in Kronos’ other comprehensive income (loss) items. Due to uncertainties and complexities of the new legislation, we are still evaluating the impact of the one-time deemed repatriation of the post-1986 undistributed earnings of our non-U.S. subsidiaries up through December 31, 2017 as it relates to the income tax basis of our direct investment in Kronos. Our deferred income tax liability with respect to our direct investment in Kronos and the deferred income taxes recognized at December 31, 2017 and March 31, 2018 represents our reasonable estimate and, in accordance with the guidance in SAB 118, such amounts are provisional and subject to adjustment as we obtain additional information and complete our analysis of the impact of the new legislation as it relates to the income tax basis of our direct investment in Kronos. We made no adjustments to the provisional amounts recorded at December 31, 2017 as it relates to the income tax basis of our direct investment in Kronos at such date in the first quarter of 2018. We will complete our accounting for these items within the prescribed measurement period ending December 22, 2018, pursuant to the guidance under SAB 118 and if such estimates change, we will recognize an adjustment in the reporting period within the measurement period in which such adjustment is determined. 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 currently estimate that our unrecognized tax benefits will decrease by approximately $1.8 million during the next twelve months primarily due to certain adjustments to our prior year returns and the expiration of certain statutes of limitations. |
Noncontrolling Interest in Subs
Noncontrolling Interest in Subsidiaries | 3 Months Ended |
Mar. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest in Subsidiaries | Note 15—Noncontrolling interest in subsidiaries: December 31, March 31, (In millions) Noncontrolling interest in net assets: Kronos Worldwide $ 204.9 $ 217.5 NL Industries 71.1 74.1 CompX International 17.8 18.2 BMI 26.0 27.5 LandWell 22.5 25.1 Total $ 342.3 $ 362.4 Three months ended March 31, 2017 2018 (In millions) Noncontrolling interest in net income of subsidiaries: Kronos Worldwide $ 7.2 $ 13.8 NL Industries 1.4 2.4 CompX International .4 .5 BMI — .6 LandWell .1 1.2 Total $ 9.1 $ 18.5 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 16—Accumulated other comprehensive loss: Changes in accumulated other comprehensive income (loss) attributable to Valhi stockholders for the three months ended March 31, 2017 and 2018 are presented in the table below. Three months ended 2017 2018 (In millions) Accumulated other comprehensive income (loss), net of tax and noncontrolling interest: Marketable securities: Balance at beginning of period $ 1.7 $ 1.7 Other comprehensive income– unrealized losses arising during the period — (.1 ) Balance at end of period $ 1.7 $ 1.6 Interest rate swap: Balance at beginning of period $ (1.2 ) $ — Other comprehensive income: Reclassification adjustment for amounts included in interest expense .4 — Balance at end of period $ (.8 ) $ — Currency translation adjustment: Balance at beginning of period $ (88.5 ) $ (54.1 ) Other comprehensive income 5.4 7.2 Balance at end of period $ (83.1 ) $ (46.9 ) Defined benefit pension plans: Balance at beginning of period $ (137.0 ) $ (129.0 ) Other comprehensive income— amortization of prior service cost and net losses included in net periodic pension cost 2.0 1.9 Balance at end of period $ (135.0 ) $ (127.1 ) OPEB plans: Balance at beginning of period $ 3.1 $ 2.4 Other comprehensive loss – amortization of prior service credit (.2 ) (.2 ) Balance at end of period $ 2.9 $ 2.2 Total accumulated other comprehensive income (loss): Balance at beginning of period $ (221.9 ) $ (179.0 ) Other comprehensive income 7.6 8.8 Balance at end of period $ (214.3 ) $ (170.2 ) See Note 12 for amounts related to our defined benefit pension plans and OPEB plans. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 17 – Commitments and contingencies: Lead pigment litigation – NL NL’s former operations included the manufacture of lead pigments for use in paint and lead-based paint. NL, other former manufacturers of lead pigments for use in paint and lead-based paint (together, the “former pigment manufacturers”), and the Lead Industries Association (LIA), which discontinued business operations in 2002, have been named as defendants in various legal proceedings seeking damages for personal injury, property damage and governmental expenditures allegedly caused by the use of lead-based paints. Certain of these actions have been filed by or on behalf of states, counties, cities or their public housing authorities and school districts, and certain others have been asserted as class actions. These lawsuits seek recovery under a variety of theories, including public and private nuisance, negligent product design, negligent failure to warn, strict liability, breach of warranty, conspiracy/concert of action, aiding and abetting, enterprise liability, market share or risk contribution liability, intentional tort, fraud and misrepresentation, violations of state consumer protection statutes, supplier negligence and similar claims. The plaintiffs in these actions generally seek to impose on the defendants responsibility for lead paint abatement and health concerns associated with the use of lead-based paints, including damages for personal injury, contribution and/or indemnification for medical expenses, medical monitoring expenses and costs for educational programs. To the extent the plaintiffs seek compensatory or punitive damages in these actions, such damages are generally unspecified. In some cases, the damages are unspecified pursuant to the requirements of applicable state law. A number of cases are inactive or have been dismissed or withdrawn. Most of the remaining cases are in various pre-trial stages. Some are on appeal following dismissal or summary judgment rulings or a trial verdict in favor of either the defendants or the plaintiffs. We believe that these actions are without merit, and we intend to continue to deny all allegations of wrongdoing and liability and to defend against all actions vigorously. Other than with respect to the Santa Clara case discussed below, we do not believe it is probable that we have incurred any liability with respect to all of the lead pigment litigation cases to which we are a party, and with respect to all such lead pigment litigation cases to which we are a party, including the Santa Clara case, we believe liability to us that may result, if any, in this regard cannot be reasonably estimated, because: • NL has never settled any of the market share, intentional tort, fraud, nuisance, supplier negligence, breach of warranty, conspiracy, misrepresentation, aiding and abetting, enterprise liability, or statutory cases, • no final, non-appealable adverse verdicts have ever been entered against NL (subject to the final outcome of the Santa Clara case discussed below), and • NL has never ultimately been found liable with respect to any such litigation matters, including over 100 cases over a twenty-year period for which we were previously a party and for which we have been dismissed without any finding of liability (subject to the final outcome of the Santa Clara case discussed below). Accordingly, we have not accrued any amounts for any of the pending lead pigment and lead-based paint litigation cases filed by or on behalf of states, counties, cities or their public housing authorities and school districts, or those asserted as class actions and we have determined that liability to us which may result, if any, cannot be reasonably estimated at this time because there is no prior history of a loss of this nature on which an estimate could be made and there is no substantive information available upon which an estimate could be based. In one of these lead pigment cases, in April 2000 NL was served with a complaint in County of Santa Clara v. Atlantic Richfield Company, et al The Santa Clara case is unusual in that this is the second time that an adverse verdict in the lead pigment litigation has been entered against NL (the first adverse verdict against NL was ultimately overturned on appeal). Given the appellate court’s November 2017 ruling, and the denial of an appeal by the California Supreme Court, we have concluded that the likelihood of a loss in this case has reached a standard of “probable” as contemplated by ASC 450. However, we have also concluded that the amount of such loss cannot be reasonably estimated at this time (nor can a range of loss be reasonably estimated) because, among other things: • The appellate court has remanded the case back to the trial court to recalculate the total amount of the abatement, limiting the abatement to pre-1951 homes. Until the trial court has completed such recalculation, NL and the other defendants have no basis to estimate a liability; • The appellate court upheld NL’s and the other defendants’ right to seek contribution from other liable parties (e.g. property owners who have violated the applicable housing code) on a house-by-house basis. The method by which the trial court would undertake to determine such house-by-house responsibility, and the outcome of such a house-by-house determination, is not presently known; • Participation in any abatement program by each homeowner is voluntary, and each homeowner would need to consent to allowing someone to come into the home to undertake any inspection and abatement, as well as consent to the nature, timing and extent of any abatement. The original trial court’s judgment unrealistically assumed 100% participation by the affected homeowners. Actual participation rates are likely to be less than 100% (the ultimate extent of participation is not presently known); • The remedy ordered by the trial court is an abatement fund. The trial court ordered that any funds unspent after four years are to be returned to the defendants (this provision of the trial court’s original judgment was not overturned by the appellate court). As noted above, the actual number of homes which would participate in any abatement, and the nature, timing and extent of any such abatement, is not presently known; and • NL and the other two defendants are jointly and severally liable for the abatement, and NL does not believe any individual defendant would be 100% responsible for the cost of any abatement. Accordingly, the total ultimate amount of any abatement fund, and NL’s share of any abatement is not presently known. For all the reasons noted above, NL has concluded that the amount of loss for this matter cannot be reasonably estimated at this time (nor can any reasonable range of loss be estimated). However, as with any legal proceeding, there is no assurance that any appeal would be successful, and it is reasonably possible, based on the outcome of the appeals process and the remand proceedings in the trial court, that NL may in the future incur some liability resulting in the recognition of a loss contingency accrual that could have a material adverse impact on our results of operations, financial position and liquidity. New cases may continue to be filed against NL. We cannot assure you that we will not incur liability in the future in respect of any of the pending or possible litigation in view of the inherent uncertainties involved in court and jury rulings. In the future, if new information regarding such matters becomes available to us (such as a final, non-appealable adverse verdict against us or otherwise ultimately being found liable with respect to such matters), at that time we would consider such information in evaluating any remaining cases then-pending against us as to whether it might then have become probable we have incurred liability with respect to these matters, and whether such liability, if any, could have become reasonably estimable. The resolution of any of these cases could result in the recognition of a loss contingency accrual that could have a material adverse impact on our net income for the interim or annual period during which such liability is recognized and a material adverse impact on our consolidated financial condition and liquidity. Environmental matters and litigation Our operations are governed by various environmental laws and regulations. Certain of our businesses 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 plants and to strive to improve 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, could adversely affect our production, handling, use, storage, transportation, sale or disposal of such substances. We believe that all of our facilities are in substantial compliance with applicable environmental laws. Certain properties and facilities used in NL’s former operations, including divested primary and secondary lead smelters and former mining locations, are the subject of civil litigation, administrative proceedings or investigations arising under federal and state environmental laws and common law. Additionally, in connection with past operating practices, we are currently involved as a defendant, potentially responsible party (“PRP”) or both, pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, as amended by the Superfund Amendments and Reauthorization Act (“CERCLA”), and similar state laws in various governmental and private actions associated with waste disposal sites, mining locations, and facilities that we or our predecessors, our subsidiaries or their predecessors currently or previously owned, operated or used, certain of which are on the United States Environmental Protection Agency’s (“EPA”) Superfund National Priorities List or similar state lists. These proceedings seek cleanup costs, damages for personal injury or property damage and/or damages for injury to natural resources. Certain of these proceedings involve claims for substantial amounts. Although we may be jointly and severally liable for these costs, in most cases we are only one of a number of PRPs who may also be jointly and severally liable, and among whom costs may be shared or allocated. In addition, we are occasionally named as a party in a number of personal injury lawsuits filed in various jurisdictions alleging claims related to environmental conditions alleged to have resulted from our operations. Obligations associated with environmental remediation and related matters are difficult to assess and estimate for numerous reasons including the: • complexity and differing interpretations of governmental regulations, • number of PRPs and their ability or willingness to fund such allocation of costs, • financial capabilities of the PRPs and the allocation of costs among them, • solvency of other PRPs, • multiplicity of possible solutions, • number of years of investigatory, remedial and monitoring activity required, • uncertainty over the extent, if any, to which our former operations might have contributed to the conditions allegedly giving rise to such personal injury, property damage, natural resource and related claims, and • number of years between former operations and notice of claims and lack of information and documents about the former operations. In addition, the imposition of more stringent standards or requirements under environmental laws or regulations, new developments or changes regarding site cleanup costs or the allocation of costs among PRPs, solvency of other PRPs, the results of future testing and analysis undertaken with respect to certain sites or a determination that we are potentially responsible for the release of hazardous substances at other sites, could cause our expenditures to exceed our current estimates. We cannot assure you that actual costs will not exceed accrued amounts or the upper end of the range for sites for which estimates have been made, and we cannot assure you that costs will not be incurred for sites where no estimates presently can be made. Further, additional environmental and related matters may arise in the future. If we were to incur any future liability, this could have a material adverse effect on our consolidated financial statements, results of operations and liquidity. We record liabilities related to environmental remediation and related matters (including costs associated with damages for personal injury or property damage and/or damages for injury to natural resources) when estimated future expenditures are probable and reasonably estimable. We adjust such accruals as further information becomes available to us or as circumstances change. Unless the amounts and timing of such estimated future expenditures are fixed and reasonably determinable, we generally do not discount estimated future expenditures to their present value due to the uncertainty of the timing of the payout. We recognize recoveries of costs from other parties, if any, as assets when their receipt is deemed probable. At December 31, 2017 and March 31, 2018, receivables for recoveries were not significant. We do not know and cannot estimate the exact time frame over which we will make payments for our accrued environmental and related costs. The timing of payments depends upon a number of factors, including but not limited to the timing of the actual remediation process; which in turn depends on factors outside of our control. At each balance sheet date, we estimate the amount of our accrued environmental and related costs which we expect to pay within the next twelve months, and we classify this estimate as a current liability. We classify the remaining accrued environmental costs as a noncurrent liability. The table below presents a summary of the activity in our accrued environmental costs during the first three months of 2018 are presented below. Amount (In millions) Balance at the beginning of the year $ 117.5 Additions charged to expense, net 4.3 Payments, net (.5 ) Balance at the end of period $ 121.3 Amounts recognized in our Condensed Consolidated Balance Sheet at the end of the period: Current liabilities $ 19.7 Noncurrent liabilities 101.6 Total $ 121.3 NL – On a quarterly basis, NL evaluates the potential range of its liability for environmental remediation and related costs at sites where it has been named as a PRP or defendant. At March 31, 2018, NL had accrued approximately $116 million related to approximately 38 sites associated with remediation and related matters that it believes are at the present time and/or in their current phase reasonably estimable. The upper end of the range of reasonably possible costs to NL for remediation and related matters for which we believe it is possible to estimate costs is approximately $147 million, including the amount currently accrued. NL believes that it is not reasonably possible to estimate the range of costs for certain sites. At March 31, 2018, there were approximately 5 sites for which NL is not currently able to estimate a range of costs. For these sites, generally the investigation is in the early stages, and NL is unable to determine whether or not NL actually had any association with the site, the nature of its responsibility, if any, for the contamination at the site and the extent of contamination at and cost to remediate the site. The timing and availability of information on these sites is dependent on events outside of our control, such as when the party alleging liability provides information to us. At certain of these previously inactive sites, NL has received general and special notices of liability from the EPA and/or state agencies alleging that NL, sometimes with other PRPs, are liable for past and future costs of remediating environmental contamination allegedly caused by former operations. These notifications may assert that NL, along with any other alleged PRPs, are liable for past and/or future clean-up costs. As further information becomes available to us for any of these sites which would allow us to estimate a range of costs, we would at that time adjust our accruals. Any such adjustment could result in the recognition of an accrual that would have a material effect on our consolidated financial statements, results of operations and liquidity. Other – We have also accrued approximately $5.3 million at March 31, 2018 for other environmental cleanup matters. Insurance coverage claims We are involved in certain legal proceedings with a number of our former insurance carriers regarding the nature and extent of the carriers’ obligations to us under insurance policies with respect to certain lead pigment and asbestos lawsuits. The issue of whether insurance coverage for defense costs or indemnity or both will be found to exist for our lead pigment and asbestos litigation depends upon a variety of factors and we cannot assure you that such insurance coverage will be available. We have agreements with certain of our former insurance carriers pursuant to which the carriers reimburse us for a portion of our future lead pigment litigation defense costs, and one such carrier reimburses us for a portion of our future asbestos litigation defense costs. We are not able to determine how much we will ultimately recover from these carriers for defense costs incurred by us because of certain issues that arise regarding which defense costs qualify for reimbursement. While we continue to seek additional insurance recoveries, we do not know if we will be successful in obtaining reimbursement for either defense costs or indemnity. Accordingly, we recognize insurance recoveries in income only when receipt of the recovery is probable and we are able to reasonably estimate the amount of the recovery. For additional discussion of certain litigation involving NL and certain of its former insurance carriers, please refer to our 2017 Annual Report. Other litigation NL—– NL has been named as a defendant in various lawsuits in several jurisdictions, alleging personal injuries as a result of occupational exposure primarily to products manufactured by our former operations containing asbestos, silica and/or mixed dust. In addition, some plaintiffs allege exposure to asbestos from working in various facilities previously owned and/or operated by NL. There are 106 of these types of cases pending, involving a total of approximately 579 plaintiffs. In addition, the claims of approximately 8,676 plaintiffs have been administratively dismissed or placed on the inactive docket in Ohio courts. We do not expect these claims will be re-opened unless the plaintiffs meet the courts’ medical criteria for asbestos-related claims. We have not accrued any amounts for this litigation because of the uncertainty of liability and inability to reasonably estimate the liability, if any. To date, we have not been adjudicated liable in any of these matters. Based on information available to us, including: • facts concerning historical operations, • the rate of new claims, • the number of claims from which we have been dismissed, and • our prior experience in the defense of these matters, We believe that the range of reasonably possible outcomes of these matters will be consistent with our historical costs (which are not material). Furthermore, we do not expect any reasonably possible outcome would involve amounts material to our consolidated financial position, results of operations or liquidity. We have sought and will continue to vigorously seek, dismissal and/or a finding of no liability from each claim. In addition, from time to time, we have received notices regarding asbestos or silica claims purporting to be brought against former subsidiaries, including notices provided to insurers with which we have entered into settlements extinguishing certain insurance policies. These insurers may seek indemnification from us. Kronos— In March 2013, Kronos was served with the complaint, Los Gatos Mercantile, Inc. d/b/a Los Gatos Ace Hardware, et al v. E.I. Du Pont de Nemours and Company, et al. (United States District Court, for the Northern District of California, Case No. 3:13-cv-01180-SI). The defendants include us, E.I. Du Pont de Nemours & Company, Huntsman International LLC and Millennium Inorganic Chemicals, Inc. As amended by plaintiffs’ third amended complaint (Harrison, Jan, et al v. E.I. Du Pont de Nemours and Company, et al), plaintiffs seek to represent a class consisting of indirect purchasers of titanium dioxide in the states of Arizona, Arkansas, California, the District of Columbia, Florida, Iowa, Kansas, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Mexico, New York, North Carolina, Oregon and Tennessee that indirectly purchased titanium dioxide from one or more of the defendants on or after March 1, 2002. The complaint alleges that the defendants conspired and combined to fix, raise, maintain, and stabilize the price at which titanium dioxide was sold in the United States and engaged in other anticompetitive conduct. In December 2017, the Court preliminarily approved a settlement agreement with the class plaintiffs. Without admitting any fault or wrongdoing, Kronos agreed to pay an immaterial amount in full settlement of this matter. We expect final approval of the settlement in 2018. In September 2016, Kronos was served with the complaint, Home Depot U.S.A., Inc. v. E.I. Dupont Nemours and Company, et al. (United States District Court, for the Northern District of California, Case No. 3:16-cv-04865). The defendants include us, E.I. Du Pont de Nemours & Company, Huntsman International LLC and Millennium Inorganic Chemicals, Inc. The plaintiff alleges that it indirectly purchased titanium dioxide from one or more of the defendants on or after March 1, 2002. The complaint alleges that the defendants conspired and combined to fix, raise, maintain, and stabilize the price at which titanium dioxide was sold in the United States and engaged in other anticompetitive conduct. The case is now proceeding in the trial court. We believe the action is without merit, will deny all allegations of wrongdoing and liability and intend to defend against the action vigorously. Based on our quarterly status evaluation of this case, we have determined that it is not reasonably possible that a loss has been incurred in this case. Other— In addition to the litigation described above, we and our affiliates are involved in various other environmental, contractual, product liability, patent (or intellectual property), employment and other claims and disputes incidental to our present and former businesses. In certain cases, we have insurance coverage for these items, although we do not expect any additional material insurance coverage for our environmental claims. We currently believe that the disposition of all of these various other claims and disputes (including asbestos-related claims), individually or in the aggregate, should not have a material adverse effect on our consolidated financial position, results of operations or liquidity beyond the accruals already provided. |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Financial Instruments | Note 18—Fair value measurements and financial instruments: The following table summarizes the valuation of our marketable securities, financial instruments and other items recorded on a fair value basis as of: Fair Value Measurements Total Quoted Significant Significant (In millions) Asset December 31, 2017: Marketable securities: Current $ 3.0 $ — $ 3.0 $ — Noncurrent 255.7 1.3 4.4 250.0 March 31, 2018: Marketable securities: Current $ .6 $ — $ .6 $ — Noncurrent 258.1 3.0 5.1 250.0 See Note 6 for information on how we determine fair value of our noncurrent marketable securities. Certain of our sales generated by Chemicals Segment’s non-U.S. operations are denominated in U.S. dollars. Our Chemicals Segment periodically uses 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 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. 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 (loss) 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 transactions. 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. During 2017 and the first quarter of 2018, Kronos had no currency forward contracts outstanding. Interest rate swap contract - See the 2017 Annual Report for a discussion of the interest rate swap Kronos had entered into in August 2015, and which was voluntarily terminated in September 2017. The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure: December 31, 2017 March 31, 2018 Carrying Fair Carrying Fair (In millions) Cash, cash equivalents and restricted cash equivalents $ 461.7 $ 461.7 $ 503.5 $ 503.5 Deferred payment obligation 9.3 9.3 9.4 9.4 Long-term debt (excluding capitalized leases): Kronos Senior Notes 471.1 495.1 485.0 506.6 Snake River Sugar Company fixed rate loans 250.0 250.0 250.0 250.0 Valhi credit facility with Contran 284.3 284.3 320.6 320.6 Tremont promissory note payable 13.1 13.1 10.9 10.9 BMI bank note payable 18.8 19.7 18.8 19.7 LandWell note payable to the City of Henderson 2.5 2.5 2.5 2.5 At March 31, 2018, the estimated market price of Kronos’ Senior Notes was €1,029 per €1,000 principal amount. The fair value of Kronos’ Senior Notes was based on quoted market prices; however, these quoted market prices represent Level 2 inputs because the markets in which the term loan trades were not active. The fair value of our fixed-rate nonrecourse loans from Snake River Sugar Company is based upon the $250 million redemption price of our investment in Amalgamated, which collateralizes the nonrecourse loans (this is a Level 3 input). The fair value of variable interest rate debt and other fixed-rate debt, which represents Level 2 inputs, is deemed to approximate carrying values. See Note 8. Due to their near-term maturities, the carrying amounts of accounts receivable and accounts payable are considered equivalent to fair value. See Notes 4 and 9. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 19—Recent accounting pronouncements: Adopted On January 1, 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenues from our Real Estate Management and Development Segment are generally under long-term contracts. We collect certain fees from builders when the builder sells a home to a customer which we previously recognized when received and now beginning on January 1, 2018 we recognize these fees as revenue at the time we sell the parcels to the builder versus our previous practice which did not recognize revenue until the homes were sold. Accordingly, upon adoption of ASU 2014-09, such fees we collect from builders when the builder sells a home to a customer are now estimated at the time we sell a parcel to a builder, and such fees are part of the revenue we recognize over time using cost based input methods for our retail land sales in the case of the home participation fee or over the time the homes in the parcel are sold in the case of the marketing fee. Under the transition requirements for adopting this ASU, we recognized the cumulative amount of such revenue that we would have recognized through December 31, 2017, had we recognized such builder fees under this new accounting method ($6.1 million, or $2.7 million, net of applicable income taxes and noncontrolling interest), as a direct increase in our retained earnings as of January 1, 2018. A portion of such builder fees are expected to be collected more than twelve months from the balance sheet date, and such amounts are classified as a noncurrent asset (Land contract receivables), see Note 7. In addition to recognizing such $6.1 million receivable, we recognized a contract asset of $8.8 million and an offsetting liability for deferred revenue of $8.8 million upon the adoption of this ASU for the estimated amount of such builder fees which we expect to receive from future home sales by the builders, which builder fees are not yet recognizable as revenue (and a portion of such contract asset is also classified as a noncurrent receivable along with an equal amount of noncurrent deferred revenue). Had we recognized revenue in the first quarter of 2018 on the same basis we did in 2017, our land sales revenue would have been higher by $.4 million dollars in the first quarter of 2018. 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 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) |
Organization and Basis of Pre26
Organization and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Organization | Organization — We are majority owned by a wholly-owned subsidiary of Contran Corporation (“Contran”), which owns approximately 93% of our outstanding common stock at March 31, 2018. 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 and us. |
Basis of Presentation | Basis of Presentation— Consolidated in this Quarterly Report are the results of our majority-owned and wholly-owned subsidiaries, including NL Industries, Inc., Kronos Worldwide, Inc., CompX International Inc., Tremont LLC, Basic Management, Inc. (“BMI”) and The LandWell Company (“LandWell”). Kronos (NYSE: KRO), NL (NYSE: NL), and CompX (NYSE MKT: CIX) each file periodic reports with the Securities and Exchange Commission (“SEC”). In January 2018, we sold Waste Control Specialists LLC (“WCS”). See Note 3. The unaudited Condensed Consolidated Financial Statements contained in this Quarterly Report have been prepared on the same basis as the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2017 that we filed with the SEC on March 15, 2018 (the “2017 Annual Report”). In our opinion, we have made all necessary adjustments (which include only normal recurring adjustments, other than the gain on the sale of WCS recognized in the first quarter of 2018 as discussed in Note 3), in order to state fairly, in all material respects, our consolidated financial position, results of operations and cash flows as of the dates and for the periods presented. We have condensed the Consolidated Balance Sheet at December 31, 2017 contained in this Quarterly Report as compared to our audited Consolidated Financial Statements at that date, and we have omitted certain information and footnote disclosures (including those related to the Consolidated Balance Sheet at December 31, 2017) normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Our results of operations for the interim period ended March 31, 2018 may not be indicative of our operating results for the full year. The Condensed Consolidated Financial Statements contained in this Quarterly Report should be read in conjunction with our 2017 Consolidated Financial Statements contained in our 2017 Annual Report. Unless otherwise indicated, references in this report to “we,” “us” or “our” refer to Valhi, Inc. and its subsidiaries (NYSE: VHI), taken as a whole. |
Recent accounting pronouncements | Adopted On January 1, 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenues from our Real Estate Management and Development Segment are generally under long-term contracts. We collect certain fees from builders when the builder sells a home to a customer which we previously recognized when received and now beginning on January 1, 2018 we recognize these fees as revenue at the time we sell the parcels to the builder versus our previous practice which did not recognize revenue until the homes were sold. Accordingly, upon adoption of ASU 2014-09, such fees we collect from builders when the builder sells a home to a customer are now estimated at the time we sell a parcel to a builder, and such fees are part of the revenue we recognize over time using cost based input methods for our retail land sales in the case of the home participation fee or over the time the homes in the parcel are sold in the case of the marketing fee. Under the transition requirements for adopting this ASU, we recognized the cumulative amount of such revenue that we would have recognized through December 31, 2017, had we recognized such builder fees under this new accounting method ($6.1 million, or $2.7 million, net of applicable income taxes and noncontrolling interest), as a direct increase in our retained earnings as of January 1, 2018. A portion of such builder fees are expected to be collected more than twelve months from the balance sheet date, and such amounts are classified as a noncurrent asset (Land contract receivables), see Note 7. In addition to recognizing such $6.1 million receivable, we recognized a contract asset of $8.8 million and an offsetting liability for deferred revenue of $8.8 million upon the adoption of this ASU for the estimated amount of such builder fees which we expect to receive from future home sales by the builders, which builder fees are not yet recognizable as revenue (and a portion of such contract asset is also classified as a noncurrent receivable along with an equal amount of noncurrent deferred revenue). Had we recognized revenue in the first quarter of 2018 on the same basis we did in 2017, our land sales revenue would have been higher by $.4 million dollars in the first quarter of 2018. 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 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) |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Holding Percentage of Subsidiaries | Business segment Entity % controlled at Chemicals Kronos 80 % Component products CompX 87 % Real estate management and development BMI and LandWell 63% - 77 % |
Segment Operating Performance | Three months ended 2017 2018 (unaudited) Net sales: Chemicals $ 369.8 $ 430.4 Component products 29.9 28.4 Real estate management and development 5.6 7.2 Total net sales $ 405.3 $ 466.0 Cost of sales: Chemicals $ 264.2 $ 256.1 Component products 20.3 18.9 Real estate management and development 4.2 5.7 Total cost of sales $ 288.7 $ 280.7 Gross margin: Chemicals $ 105.6 $ 174.3 Component products 9.6 9.5 Real estate management and development 1.4 1.5 Total gross margin $ 116.6 $ 185.3 Operating income: Chemicals $ 59.1 $ 110.6 Component products 4.5 4.4 Real estate management and development .5 3.8 Total operating income 64.1 118.8 General corporate items: Securities earnings 7.0 8.3 Insurance recoveries .1 .2 Gain on land sales — 12.5 Other components of net periodic pension and OPEB expense (4.1 ) (3.7 ) General expenses, net (10.5 ) (14.3 ) Interest expense (14.5 ) (15.4 ) Income from continuing operations before income taxes $ 42.1 $ 106.4 |
Business Disposition (Tables)
Business Disposition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Waste Control Specialists | |
Schedule of Operations of Disposed Waste Management Segment | Selected financial data for the operations of the disposed Waste Management Segment for periods prior to completing the sale is presented below. Current assets at December 31, 2017 consist principally of trade accounts receivable. December 31, 2017 (In millions) ASSETS Current assets $ 11.2 Restricted cash 27.2 Property and equipment, net 6.0 Other noncurrent assets 7.6 Total noncurrent assets 40.8 Total assets $ 52.0 LIABILITIES Current portion of long-term debt $ 3.0 Payable to Contran 36.1 Other current liabilities 8.2 Total current liabilities 47.3 Long-term debt 65.0 Deferred income taxes (43.8 ) Accrued noncurrent closure and post closure costs 31.7 Total noncurrent liabilities 52.9 Total liabilities $ 100.2 Three months ended March 31, 2017 2018 (1) (In millions) Net sales $ 21.5 $ 4.6 Operating income (loss) $ .6 $ (.4 ) Other expense, net (1.9 ) — Interest expense, net (1.2 ) (.3 ) Loss before taxes (2.5 ) (.7 ) Income tax expense (benefit) (.8 ) .1 Net loss (1.7 ) (.6 ) Pre-tax gain on disposal — 58.4 Income tax expense — 20.2 After-tax gain on disposal — 38.2 Total $ (1.7 ) $ 37.6 Net cash provided by operating activities $ 7.2 $ 2.3 Net cash provided by (used in) investing activities $ (.5 ) $ (.1 ) (1) Includes results of the Waste Management Segment though January 26, 2018, the date of the sale. |
Accounts and Other Receivable29
Accounts and Other Receivables, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Components of Accounts and Other Receivables | December 31, March 31, (In millions) Trade accounts receivable: Kronos $ 301.4 $ 347.3 CompX 10.5 12.7 BMI and LandWell 1.6 1.0 VAT and other receivables 20.7 23.4 Refundable income taxes .5 .2 Receivable from affiliates: Contran – trade items 1.0 .9 Contran – income taxes 19.4 19.7 LPC – trade items 8.9 9.3 Other – trade items 3.3 3.5 Allowance for doubtful accounts (1.5 ) (1.5 ) Total $ 365.8 $ 416.5 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | December 31, March 31, (In millions) Raw materials: Chemicals $ 106.9 $ 105.4 Component products 2.7 2.8 Total raw materials 109.6 108.2 Work in process: Chemicals 20.8 37.1 Component products 9.8 10.7 Total in-process products 30.6 47.8 Finished products: Chemicals 192.2 220.6 Component products 2.8 2.9 Total finished products 195.0 223.5 Supplies (chemicals) 63.2 67.8 Total $ 398.4 $ 447.3 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Marketable Securities | Market Cost Unrealized (In millions) December 31, 2017: Current assets $ 3.0 3.0 — Noncurrent assets: The Amalgamated Sugar Company LLC $ 250.0 250.0 — Other 5.7 5.9 (.2 ) Total $ 255.7 255.9 (.2 ) March 31, 2018: Current assets $ .6 .6 — Noncurrent assets: The Amalgamated Sugar Company LLC $ 250.0 250.0 — Other 8.1 8.3 (.2 ) Total $ 258.1 258.3 (.2 ) |
Other Noncurrent Assets (Tables
Other Noncurrent Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Noncurrent Assets | December 31, March 31, (In millions) Other noncurrent assets: Land held for development $ 126.6 $ 128.9 Restricted cash 9.9 9.3 Land contract receivables — 9.9 IBNR receivables 6.8 6.8 Pension asset 4.2 6.2 Notes receivable - OPA — 3.1 Other 26.6 25.4 Total $ 174.1 $ 189.6 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | December 31, March 31, (In millions) Valhi: Snake River Sugar Company $ 250.0 $ 250.0 Contran credit facility 284.3 320.6 Total Valhi debt 534.3 570.6 Subsidiary debt: Kronos: Senior Secured Notes 471.1 485.0 Tremont: Promissory note payable 13.1 10.9 BMI: Bank loan – Western Alliance Bank 18.8 18.8 LandWell: Note payable to the City of Henderson 2.5 2.5 Other 3.3 3.2 Total subsidiary debt 508.8 520.4 Total debt 1,043.1 1,091.0 Less current maturities 1.6 1.6 Total long-term debt $ 1,041.5 $ 1,089.4 |
Accounts Payable and Accrued 34
Accounts Payable and Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payables And Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | December 31, March 31, (In millions) Accounts payable: Kronos $ 107.9 $ 117.3 CompX 2.3 2.8 BMI and LandWell 3.7 3.5 NL 1.8 1.2 Other .4 .4 Payable to affiliates: Contran – trade items — .1 LPC – trade items 16.2 13.8 Employee benefits 36.3 36.8 Deferred income 28.3 24.7 Accrued sales discounts and rebates 14.3 28.8 Environmental remediation and related costs 6.8 19.7 Interest 5.5 1.3 Other 33.6 39.6 Total $ 257.1 $ 290.0 |
Other Noncurrent Liabilities (T
Other Noncurrent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Noncurrent Liabilities | December 31, March 31, (In millions) Reserve for uncertain tax positions $ 16.5 $ 16.9 Deferred income 15.7 18.4 Employee benefits 8.4 8.7 Insurance claims and expenses 9.1 9.4 Deferred payment obligation 9.3 9.4 Accrued development costs 6.1 7.5 Other 8.5 9.0 Total $ 73.6 $ 79.3 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Disaggregates of Net Sales | The following table disaggregates the net sales of our Chemicals Segment the categories that depict how the nature, amount timing and uncertainty of revenue and cash flows are affected by economic factors (as required by ASC 606). Three months ended March 31, 2017 2018 (In millions) Net sales – point of origin: Germany $ 183.6 $ 234.5 United States 205.7 196.8 Canada 77.9 71.6 Belgium 58.1 69.7 Norway 47.3 53.1 Eliminations (202.8 ) (195.3 ) Total $ 369.8 $ 430.4 Net sales – point of destination: Europe $ 179.7 $ 233.9 North America 124.0 127.0 Other 66.1 69.5 $ 369.8 $ 430.4 The following table disaggregates the net sales of our Component Products and Real Estate Management and Development Segments by major product line. Three months ended March 31, 2017 2018 (In millions) Component Products: Net sales: Security products $ 26.0 $ 24.1 Marine components 3.9 4.3 $ 29.9 $ 28.4 Real Estate Management and Development: Net sales: Land sales $ 3.7 $ 5.8 Water delivery 1.3 .9 Utility and other .6 .5 $ 5.6 $ 7.2 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Defined Benefit Pension Plans | |
Components of Net Periodic Defined Benefit Cost | The components of our net periodic defined benefit pension cost are presented in the table below. Three months ended 2017 2018 (In millions) Service cost $ 2.7 $ 3.0 Interest cost 3.8 4.0 Expected return on plan assets (3.2 ) (4.0 ) Amortization of unrecognized prior service cost .1 .1 Recognized actuarial losses 3.6 3.8 Total $ 7.0 $ 6.9 |
OPEB | |
Components of Net Periodic Defined Benefit Cost | The components of our net periodic other postretirement benefit cost are presented in the table below. Three months ended 2017 2018 (In millions) Interest cost $ .1 $ .1 Amortization of prior service credit (.2 ) (.3 ) Recognized actuarial gains (.1 ) — Total $ (.2 ) $ (.2 ) |
Other Income, Net (Tables)
Other Income, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Schedule of Components of Other Income | Three months ended 2017 2018 (In millions) Securities earnings: Dividends and interest $ 7.0 $ 8.3 Currency transactions, net (.2 ) (5.0 ) Insurance recoveries .1 .2 Infrastructure reimbursement .2 3.8 Gain on land sales — 12.5 Other, net .7 .6 Total $ 7.6 $ 20.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Component of Income Taxes Expenses | Three months ended 2017 2018 (In millions) Expected tax expense, at U.S. federal statutory income tax rate of 35% in 2017 and 21% in 2018 $ 14.7 $ 22.4 Incremental net tax on earnings and losses of non-U.S. and non-tax group companies 11.2 4.1 Non-U.S. tax rates (2.4 ) 7.0 Valuation allowance (5.0 ) .3 Adjustment to the reserve for uncertain tax positions, net .5 1.6 Canada – Germany APA — (1.4 ) Nondeductible expenses .4 .4 Domestic production activities deduction (.6 ) — U.S. state income taxes and other, net (.2 ) 1.8 Income tax expense $ 18.6 $ 36.2 Comprehensive provision for income taxes (benefit) allocable to: Income from continuing operations $ 18.6 $ 36.2 Discontinued operations (.8 ) 20.1 Retained earnings – change in accounting principle — 1.1 Other comprehensive income (loss): Currency translation 1.8 1.4 Pension plans .9 1.5 OPEB plans (.1 ) (.1 ) Interest rate swap .4 — Marketable securities (.1 ) — Total $ 20.7 $ 60.2 |
Noncontrolling Interest in Su40
Noncontrolling Interest in Subsidiaries (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest in Net Assets of Subsidiaries | December 31, March 31, (In millions) Noncontrolling interest in net assets: Kronos Worldwide $ 204.9 $ 217.5 NL Industries 71.1 74.1 CompX International 17.8 18.2 BMI 26.0 27.5 LandWell 22.5 25.1 Total $ 342.3 $ 362.4 |
Schedule of Noncontrolling Interest in Net Income of Subsidiaries | Three months ended March 31, 2017 2018 (In millions) Noncontrolling interest in net income of subsidiaries: Kronos Worldwide $ 7.2 $ 13.8 NL Industries 1.4 2.4 CompX International .4 .5 BMI — .6 LandWell .1 1.2 Total $ 9.1 $ 18.5 |
Accumulated Other Comprehensi41
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) attributable to Valhi stockholders for the three months ended March 31, 2017 and 2018 are presented in the table below. Three months ended 2017 2018 (In millions) Accumulated other comprehensive income (loss), net of tax and noncontrolling interest: Marketable securities: Balance at beginning of period $ 1.7 $ 1.7 Other comprehensive income– unrealized losses arising during the period — (.1 ) Balance at end of period $ 1.7 $ 1.6 Interest rate swap: Balance at beginning of period $ (1.2 ) $ — Other comprehensive income: Reclassification adjustment for amounts included in interest expense .4 — Balance at end of period $ (.8 ) $ — Currency translation adjustment: Balance at beginning of period $ (88.5 ) $ (54.1 ) Other comprehensive income 5.4 7.2 Balance at end of period $ (83.1 ) $ (46.9 ) Defined benefit pension plans: Balance at beginning of period $ (137.0 ) $ (129.0 ) Other comprehensive income— amortization of prior service cost and net losses included in net periodic pension cost 2.0 1.9 Balance at end of period $ (135.0 ) $ (127.1 ) OPEB plans: Balance at beginning of period $ 3.1 $ 2.4 Other comprehensive loss – amortization of prior service credit (.2 ) (.2 ) Balance at end of period $ 2.9 $ 2.2 Total accumulated other comprehensive income (loss): Balance at beginning of period $ (221.9 ) $ (179.0 ) Other comprehensive income 7.6 8.8 Balance at end of period $ (214.3 ) $ (170.2 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Change in Accrued Environmental Remediation and Related Costs | The table below presents a summary of the activity in our accrued environmental costs during the first three months of 2018 are presented below. Amount (In millions) Balance at the beginning of the year $ 117.5 Additions charged to expense, net 4.3 Payments, net (.5 ) Balance at the end of period $ 121.3 Amounts recognized in our Condensed Consolidated Balance Sheet at the end of the period: Current liabilities $ 19.7 Noncurrent liabilities 101.6 Total $ 121.3 |
Fair Value Measurements and F43
Fair Value Measurements and Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Marketable Securities and Financial Instruments on Fair Value Basis | The following table summarizes the valuation of our marketable securities, financial instruments and other items recorded on a fair value basis as of: Fair Value Measurements Total Quoted Significant Significant (In millions) Asset December 31, 2017: Marketable securities: Current $ 3.0 $ — $ 3.0 $ — Noncurrent 255.7 1.3 4.4 250.0 March 31, 2018: Marketable securities: Current $ .6 $ — $ .6 $ — Noncurrent 258.1 3.0 5.1 250.0 |
Financial Instruments not Carried at Fair Value | The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure: December 31, 2017 March 31, 2018 Carrying Fair Carrying Fair (In millions) Cash, cash equivalents and restricted cash equivalents $ 461.7 $ 461.7 $ 503.5 $ 503.5 Deferred payment obligation 9.3 9.3 9.4 9.4 Long-term debt (excluding capitalized leases): Kronos Senior Notes 471.1 495.1 485.0 506.6 Snake River Sugar Company fixed rate loans 250.0 250.0 250.0 250.0 Valhi credit facility with Contran 284.3 284.3 320.6 320.6 Tremont promissory note payable 13.1 13.1 10.9 10.9 BMI bank note payable 18.8 19.7 18.8 19.7 LandWell note payable to the City of Henderson 2.5 2.5 2.5 2.5 |
Organization and Basis of Pre44
Organization and Basis of Presentation - Additional Information (Detail) | Mar. 31, 2018 |
Contran | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |
Parent company ownership interest | 93.00% |
Business Segment Information -
Business Segment Information - Holding Percentage of Subsidiaries (Detail) | Mar. 31, 2018 |
Kronos Worldwide, Inc. | |
Segment Reporting Information [Line Items] | |
Parent company ownership interest | 50.00% |
BMI | |
Segment Reporting Information [Line Items] | |
Parent company ownership interest | 63.00% |
LandWell | |
Segment Reporting Information [Line Items] | |
Parent company ownership interest | 27.00% |
Chemicals | Kronos Worldwide, Inc. | |
Segment Reporting Information [Line Items] | |
Controlling interest in subsidiary | 80.00% |
Component Products | CompX | |
Segment Reporting Information [Line Items] | |
Parent company ownership interest | 87.00% |
Real Estate Management And Development | BMI | |
Segment Reporting Information [Line Items] | |
Parent company ownership interest | 63.00% |
Real Estate Management And Development | LandWell | Aggregate General And Limited Interests | |
Segment Reporting Information [Line Items] | |
Controlling interest in subsidiary | 77.00% |
Business Segment Information 46
Business Segment Information - Additional Information (Detail) | Mar. 31, 2018 |
Kronos Worldwide, Inc. | |
Segment Reporting Information [Line Items] | |
Direct ownership percentage by parent | 50.00% |
Indirect controlling interest in subsidiary | 30.00% |
NL | |
Segment Reporting Information [Line Items] | |
Direct ownership percentage by parent | 83.00% |
LandWell | |
Segment Reporting Information [Line Items] | |
Direct ownership percentage by parent | 27.00% |
Indirect controlling interest in subsidiary | 50.00% |
BMI | |
Segment Reporting Information [Line Items] | |
Direct ownership percentage by parent | 63.00% |
Business Segment Information 47
Business Segment Information - Segment Operating Performance (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 466 | $ 405.3 |
Cost of sales | 280.7 | 288.7 |
Gross margin | 185.3 | 116.6 |
Operating income | 118.8 | 64.1 |
Securities earnings | 8.3 | 7 |
Insurance recoveries | 0.2 | 0.1 |
Gain on land sales | 12.5 | |
Other components of net periodic pension and OPEB expense | (3.7) | (4.1) |
General expenses, net | (14.3) | (10.5) |
Interest expense | (15.4) | (14.5) |
Income from continuing operations before income taxes | 106.4 | 42.1 |
Chemicals | ||
Segment Reporting Information [Line Items] | ||
Net sales | 430.4 | 369.8 |
Cost of sales | 256.1 | 264.2 |
Gross margin | 174.3 | 105.6 |
Operating income | 110.6 | 59.1 |
Component Products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 28.4 | 29.9 |
Cost of sales | 18.9 | 20.3 |
Gross margin | 9.5 | 9.6 |
Operating income | 4.4 | 4.5 |
Real Estate Management And Development | ||
Segment Reporting Information [Line Items] | ||
Net sales | 7.2 | 5.6 |
Cost of sales | 5.7 | 4.2 |
Gross margin | 1.5 | 1.4 |
Operating income | $ 3.8 | $ 0.5 |
Business Disposition - Addition
Business Disposition - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Jun. 30, 2017 | Jan. 26, 2018 | |
WCS | Contran Credit Facility | Contran | Amounts Acquired in Business Divestiture | |||
Business Combinations Discontinued Operations And Related Transactions [Line Items] | |||
Acquired trade receivable | $ 36.3 | $ 36.3 | |
Waste Management | |||
Business Combinations Discontinued Operations And Related Transactions [Line Items] | |||
Pre-tax gain from disposal of discontinued operations | 58.4 | ||
Gain from disposal of discontinued operations, net of tax | 38.2 | ||
Impairment of long lived assets held for use | $ 170.6 | ||
Waste Management | Contran Credit Facility | |||
Business Combinations Discontinued Operations And Related Transactions [Line Items] | |||
Noncash borrowings | 36.3 | $ 36.3 | |
Waste Management | Discontinued Operations | |||
Business Combinations Discontinued Operations And Related Transactions [Line Items] | |||
Pre-tax gain from disposal of discontinued operations | 58 | ||
Gain from disposal of discontinued operations, net of tax | $ 38.2 | ||
Gain on disposal of discontinued operations, per diluted share, net of tax | $ 0.11 |
Business Disposition - Schedule
Business Disposition - Schedule of Consolidated Balance Sheets (Detail) $ in Millions | Dec. 31, 2017USD ($) |
ASSETS | |
Current assets | $ 11.2 |
Other noncurrent assets | 40.8 |
LIABILITIES | |
Total current liabilities | 47.3 |
Total noncurrent liabilities | 52.9 |
Waste Management | |
ASSETS | |
Current assets | 11.2 |
Restricted cash | 27.2 |
Property and equipment, net | 6 |
Other noncurrent assets | 7.6 |
Total noncurrent assets | 40.8 |
Total assets | 52 |
LIABILITIES | |
Current portion of long-term debt | 3 |
Other current liabilities | 8.2 |
Total current liabilities | 47.3 |
Long-term debt | 65 |
Deferred income taxes | (43.8) |
Accrued noncurrent closure and post closure costs | 31.7 |
Total noncurrent liabilities | 52.9 |
Total liabilities | 100.2 |
Waste Management | Contran | Trade Accounts Payables | |
LIABILITIES | |
Payable to affiliates | $ 36.1 |
Business Disposition - Schedu50
Business Disposition - Schedule of Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Total | $ 37.6 | $ (1.7) |
Waste Management | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Net sales | 4.6 | 21.5 |
Operating income (loss) | (0.4) | 0.6 |
Other expense, net | (1.9) | |
Interest expense, net | (0.3) | (1.2) |
Loss before taxes | (0.7) | (2.5) |
Income tax expense (benefit) | 0.1 | (0.8) |
Net loss | (0.6) | (1.7) |
Pre-tax gain on disposal | 58.4 | |
Income tax expense | 20.2 | |
After-tax gain on disposal | 38.2 | |
Total | 37.6 | (1.7) |
Net cash provided by operating activities | 2.3 | 7.2 |
Net cash provided by (used in) investing activities | $ (0.1) | $ (0.5) |
Accounts and Other Receivable51
Accounts and Other Receivables, Net - Components of Accounts and Other Receivables (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Trade accounts receivable: | ||
VAT and other receivables | $ 23.4 | $ 20.7 |
Refundable income taxes | 0.2 | 0.5 |
Allowance for doubtful accounts | (1.5) | (1.5) |
Total | 416.5 | 365.8 |
Trade Accounts Receivable | Kronos Worldwide, Inc. | ||
Trade accounts receivable: | ||
Accounts receivable | 347.3 | 301.4 |
Trade Accounts Receivable | CompX | ||
Trade accounts receivable: | ||
Accounts receivable | 12.7 | 10.5 |
Trade Accounts Receivable | BMI and LandWell | ||
Trade accounts receivable: | ||
Accounts receivable | 1 | 1.6 |
Trade Items | Contran | ||
Trade accounts receivable: | ||
Receivable from affiliates | 0.9 | 1 |
Trade Items | LPC | ||
Trade accounts receivable: | ||
Receivable from affiliates | 9.3 | 8.9 |
Trade Items | Other | ||
Trade accounts receivable: | ||
Receivable from affiliates | 3.5 | 3.3 |
Income Taxes | Contran | ||
Trade accounts receivable: | ||
Receivable from affiliates | $ 19.7 | $ 19.4 |
Inventories, Net - Inventories,
Inventories, Net - Inventories, Net (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||
Raw materials | $ 108.2 | $ 109.6 |
Work in process | 47.8 | 30.6 |
Finished products | 223.5 | 195 |
Supplies (chemicals) | 67.8 | 63.2 |
Total | 447.3 | 398.4 |
Chemicals | ||
Inventory [Line Items] | ||
Raw materials | 105.4 | 106.9 |
Work in process | 37.1 | 20.8 |
Finished products | 220.6 | 192.2 |
Component Products | ||
Inventory [Line Items] | ||
Raw materials | 2.8 | 2.7 |
Work in process | 10.7 | 9.8 |
Finished products | $ 2.9 | $ 2.8 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Marketable Securities (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Market value, available for sale securities, current | $ 0.6 | $ 3 |
Market value, available for sale securities, noncurrent | 258.1 | 255.7 |
Non Current Assets | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost basis | 258.3 | 255.9 |
Unrealized losses, net | (0.2) | (0.2) |
Current Assets | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost basis | 0.6 | 3 |
Unrealized losses, net | 0 | 0 |
Other | Non Current Assets | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Market value, available for sale securities, noncurrent | 8.1 | 5.7 |
Cost basis | 8.3 | 5.9 |
Unrealized losses, net | (0.2) | (0.2) |
Amalgamated Sugar Company LLC | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Market value, available for sale securities, noncurrent | 250 | |
Amalgamated Sugar Company LLC | Non Current Assets | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Market value, available for sale securities, noncurrent | 250 | 250 |
Cost basis | 250 | 250 |
Unrealized losses, net | $ 0 | $ 0 |
Other Noncurrent Assets - Other
Other Noncurrent Assets - Other Noncurrent Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Other noncurrent assets: | ||
Land held for development | $ 128.9 | $ 126.6 |
Restricted cash | 9.3 | 9.9 |
Land contract receivables | 9.9 | |
IBNR receivables | 6.8 | 6.8 |
Pension asset | 6.2 | 4.2 |
Notes receivable - OPA | 3.1 | |
Other | 25.4 | 26.6 |
Total | $ 189.6 | $ 174.1 |
Other Noncurrent Assets - Addit
Other Noncurrent Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Other Assets Non Current [Line Items] | ||
Notes receivable | $ 3,100,000 | |
City Of Henderson | ||
Other Assets Non Current [Line Items] | ||
Notes receivable | $ 3,100,000 | |
Annual interest rate | 6.00% | |
City Of Henderson | Notes Payable | ||
Other Assets Non Current [Line Items] | ||
Debt instrument expiry year | 2,036 | |
OPA | City of Henderson Redevelopment Agency | ||
Other Assets Non Current [Line Items] | ||
Tax increment reimbursement percentage | 75.00% | |
Aggregate amount of tax increment reimbursement receipts | $ 3,100,000 | |
OPA | Maximum | City of Henderson Redevelopment Agency | ||
Other Assets Non Current [Line Items] | ||
Reimbursement revenue | $ 209,000,000 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Long-term debt | ||
Total debt | $ 1,091 | $ 1,043.1 |
Less current maturities | 1.6 | 1.6 |
Total long-term debt | 1,089.4 | 1,041.5 |
VALHI, INC. | ||
Long-term debt | ||
Total debt | 570.6 | 534.3 |
VALHI, INC. | Contran Credit Facility | ||
Long-term debt | ||
Total debt | 320.6 | 284.3 |
VALHI, INC. | Notes Payable, Other Payables | Snake River | ||
Long-term debt | ||
Total debt | 250 | 250 |
Kronos Worldwide, Inc. | 3.75% Senior Secured Notes due September 15, 2025 | Kronos International, Inc | ||
Long-term debt | ||
Total debt | 485 | 471.1 |
Tremont | Promissory Note | ||
Long-term debt | ||
Total debt | 10.9 | 13.1 |
BMI | Bank loan | Western Alliance Bank | ||
Long-term debt | ||
Total debt | 18.8 | 18.8 |
LandWell | Unsecured Debt | ||
Long-term debt | ||
Total debt | 2.5 | 2.5 |
Other Subsidiary | Other | ||
Long-term debt | ||
Total debt | 3.2 | 3.3 |
Subsidiary | ||
Long-term debt | ||
Total debt | $ 520.4 | $ 508.8 |
Long-Term Debt - Valhi Contran
Long-Term Debt - Valhi Contran Credit Facility - Additional Information (Detail) - Contran Credit Facility - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Jan. 26, 2018 | |
Waste Management | ||
Debt Instrument [Line Items] | ||
Noncash borrowings | $ 36.3 | $ 36.3 |
VALHI, INC. | ||
Debt Instrument [Line Items] | ||
Debt instrument, Interest rate at period end | 5.75% | |
Debt instrument, average interest rate during period | 5.53% | |
Amount available for borrowing | $ 39.4 | |
WCS | Contran | Amounts Acquired in Business Divestiture | ||
Debt Instrument [Line Items] | ||
Acquired trade receivable | $ 36.3 | $ 36.3 |
Long-Term Debt - Kronos Senior
Long-Term Debt - Kronos Senior Secured Notes - Additional Information (Detail) - Kronos Worldwide, Inc. - 3.75% Senior Secured Notes due September 15, 2025 - Kronos International, Inc $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($) | Mar. 31, 2018EUR (€) | |
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 3.75% | 3.75% |
Debt instrument maturity date | Sep. 15, 2025 | |
Debt instrument principal amount | € | € 400,000,000 | |
Unamortized debt issuance costs | $ | $ 7.5 |
Long-Term Debt - Revolving Cred
Long-Term Debt - Revolving Credit Facility - Additional Information (Detail) - 3 months ended Mar. 31, 2018 - Kronos Worldwide, Inc. € in Millions, $ in Millions | USD ($) | EUR (€) |
European Revolving Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Amount available for borrowing | $ 110.8 | € 90 |
Revolving credit facility, borrowings | 0 | |
Repayment of credit facility | 0 | |
North American Revolving Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Amount available for borrowing | 115.2 | |
Revolving North American Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Revolving credit facility, borrowings | 0 | |
Repayment of credit facility | $ 0 |
Long-Term Debt - Tremont Promis
Long-Term Debt - Tremont Promissory Note Payable - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Jan. 31, 2018 | Mar. 31, 2018 | |
Promissory Note | Tremont | ||
Debt Instrument [Line Items] | ||
Principal prepayments of note | $ 2.2 | $ 2.2 |
Accounts Payable and Accrued 61
Accounts Payable and Accrued Liabilities - Schedule of Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Payable to affiliates: | ||
Employee benefits | $ 36.8 | $ 36.3 |
Deferred income | 24.7 | 28.3 |
Accrued sales discounts and rebates | 28.8 | 14.3 |
Environmental remediation and related costs | 19.7 | 6.8 |
Interest | 1.3 | 5.5 |
Other | 39.6 | 33.6 |
Total | 290 | 257.1 |
Kronos Worldwide, Inc. | ||
Accounts payable: | ||
Accounts payable | 117.3 | 107.9 |
CompX | ||
Accounts payable: | ||
Accounts payable | 2.8 | 2.3 |
BMI and LandWell | ||
Accounts payable: | ||
Accounts payable | 3.5 | 3.7 |
NL | ||
Accounts payable: | ||
Accounts payable | 1.2 | 1.8 |
Other | ||
Accounts payable: | ||
Accounts payable | 0.4 | 0.4 |
Contran | Trade Accounts Payables | ||
Payable to affiliates: | ||
Payable to affiliates | 0.1 | |
LPC | Trade Accounts Payables | ||
Payable to affiliates: | ||
Payable to affiliates | $ 13.8 | $ 16.2 |
Other Noncurrent Liabilities -
Other Noncurrent Liabilities - Other Noncurrent Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Reserve for uncertain tax positions | $ 16.9 | $ 16.5 |
Deferred income | 18.4 | 15.7 |
Employee benefits | 8.7 | 8.4 |
Insurance claims and expenses | 9.4 | 9.1 |
Deferred payment obligation | 9.4 | 9.3 |
Accrued development costs | 7.5 | 6.1 |
Other | 9 | 8.5 |
Total | $ 79.3 | $ 73.6 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018a | |
Disaggregation Of Revenue [Line Items] | |
Standard payment terms | less than one year |
Residential/Planned Community | |
Disaggregation Of Revenue [Line Items] | |
Area of real estate property | 2,100 |
Percentage of variable consideration | 1.00% |
Commercial and Light Industrial Use | |
Disaggregation Of Revenue [Line Items] | |
Area of real estate property | 400 |
Residential Housing Unit | |
Disaggregation Of Revenue [Line Items] | |
Percentage of sales price | 3.50% |
Maximum | |
Disaggregation Of Revenue [Line Items] | |
Revenue recognition period | 1 year |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregates of Net Sales of our Chemicals Segment (Detail) - Chemicals - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Point of Origin | ||
Disaggregation Of Revenue [Line Items] | ||
Total Net sales | $ 430.4 | $ 369.8 |
Point of Origin | Eliminations | ||
Disaggregation Of Revenue [Line Items] | ||
Total Net sales | (195.3) | (202.8) |
Point of Origin | Germany | ||
Disaggregation Of Revenue [Line Items] | ||
Total Net sales | 234.5 | 183.6 |
Point of Origin | United States | ||
Disaggregation Of Revenue [Line Items] | ||
Total Net sales | 196.8 | 205.7 |
Point of Origin | Canada | ||
Disaggregation Of Revenue [Line Items] | ||
Total Net sales | 71.6 | 77.9 |
Point of Origin | Belgium | ||
Disaggregation Of Revenue [Line Items] | ||
Total Net sales | 69.7 | 58.1 |
Point of Origin | Norway | ||
Disaggregation Of Revenue [Line Items] | ||
Total Net sales | 53.1 | 47.3 |
Point of Destination | ||
Disaggregation Of Revenue [Line Items] | ||
Total Net sales | 430.4 | 369.8 |
Point of Destination | Europe | ||
Disaggregation Of Revenue [Line Items] | ||
Total Net sales | 233.9 | 179.7 |
Point of Destination | North America | ||
Disaggregation Of Revenue [Line Items] | ||
Total Net sales | 127 | 124 |
Point of Destination | Other | ||
Disaggregation Of Revenue [Line Items] | ||
Total Net sales | $ 69.5 | $ 66.1 |
Revenue Recognition - Schedul65
Revenue Recognition - Schedule of Disaggregates of Net Sales of our Component Products and Real Estate Management and Development Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Component Products | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 28.4 | $ 29.9 |
Component Products | Security Products | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 24.1 | 26 |
Component Products | Marine Components | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 4.3 | 3.9 |
Real Estate Management And Development | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 5.6 | 7.2 |
Real Estate Management And Development | Land Sales | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 3.7 | 5.8 |
Real Estate Management And Development | Water Delivery | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 1.3 | 0.9 |
Real Estate Management And Development | Utility and Other | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 0.6 | $ 0.5 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Defined Benefit Pension Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 3 | $ 2.7 |
Interest cost | 4 | 3.8 |
Expected return on plan assets | (4) | (3.2) |
Amortization of unrecognized prior service cost | 0.1 | 0.1 |
Recognized actuarial losses | 3.8 | 3.6 |
Total | 6.9 | 7 |
OPEB | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 0.1 | 0.1 |
Amortization of unrecognized prior service cost | (0.3) | (0.2) |
Recognized actuarial losses | (0.1) | |
Total | $ (0.2) | $ (0.2) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) $ in Millions | Mar. 31, 2018USD ($) |
Defined Benefit Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution | $ 18.9 |
OPEB | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution | $ 1 |
Other Income, Net - Schedule of
Other Income, Net - Schedule of Components of Other Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Securities earnings: | ||
Dividends and interest | $ 8.3 | $ 7 |
Currency transactions, net | (5) | (0.2) |
Insurance recoveries | 0.2 | 0.1 |
Infrastructure reimbursement | 3.8 | 0.2 |
Gain on land sales | 12.5 | |
Other, net | 0.6 | 0.7 |
Total | $ 20.4 | $ 7.6 |
Other Income, Net - Additional
Other Income, Net - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended |
Jan. 31, 2018USD ($) | Mar. 31, 2018USD ($)Parcel | |
Disclosure Other Income Net Additional Information Detail [Line Items] | ||
Number of land parecels | Parcel | 2 | |
Net proceeds | $ 19.5 | |
Pre-tax gain on sale of land | 11.9 | |
Tremont | ||
Disclosure Other Income Net Additional Information Detail [Line Items] | ||
Net proceeds | 18.9 | |
NL | ||
Disclosure Other Income Net Additional Information Detail [Line Items] | ||
Net proceeds | 0.6 | |
Promissory Note | Tremont | ||
Disclosure Other Income Net Additional Information Detail [Line Items] | ||
Principal payment of debt | $ 2.2 | $ 2.2 |
Income Taxes - Components of Co
Income Taxes - Components of Comprehensive Provision for Income Taxes Allocation (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Schedule Of Income Tax [Line Items] | ||
Expected tax expense, at U.S. federal statutory income tax rate of 35% in 2017 and 21% in 2018 | $ 22.4 | $ 14.7 |
Incremental net tax on earnings and losses of non-U.S. and non-tax group companies | 4.1 | 11.2 |
Non-U.S. tax rates | 7 | (2.4) |
Valuation allowance | 0.3 | (5) |
Adjustment to the reserve for uncertain tax positions, net | 1.6 | 0.5 |
Nondeductible expenses | 0.4 | 0.4 |
Domestic production activities deduction | (0.6) | |
U.S. state income taxes and other, net | 1.8 | (0.2) |
Income tax expense | 36.2 | 18.6 |
Comprehensive provision for income taxes (benefit) allocable to: | ||
Income from continuing operations | 36.2 | 18.6 |
Discontinued operations | 20.1 | (0.8) |
Retained earnings – change in accounting principle | 1.1 | |
Other comprehensive income (loss): | ||
Currency translation | 1.4 | 1.8 |
Interest rate swap | 0.4 | |
Marketable securities | (0.1) | |
Total | 60.2 | 20.7 |
Kronos Worldwide, Inc. | Canada – Germany APA | ||
Schedule Of Income Tax [Line Items] | ||
Canada – Germany APA | (1.4) | |
Pension Plans | ||
Other comprehensive income (loss): | ||
Defined benefit plans | 1.5 | 0.9 |
OPEB Plans | ||
Other comprehensive income (loss): | ||
Defined benefit plans | $ (0.1) | $ (0.1) |
Income Taxes - Components of 71
Income Taxes - Components of Comprehensive Provision for Income Taxes Allocation (Parenthetical) (Detail) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal statutory income tax rate | 21.00% | 35.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Taxes Disclosure [Line Items] | ||||
U.S. federal statutory income tax rate | 21.00% | 35.00% | ||
Deferred income tax benefit from change in enacted tax rate | $ 77.1 | |||
Provision for income taxes includes non-cash deferred income tax expense | $ 5.9 | |||
Business interest income, adjusted taxable income | 30.00% | |||
Increase (decrease) in unrecognized tax benefits | $ (1.8) | |||
Transition Tax | Maximum | ||||
Income Taxes Disclosure [Line Items] | ||||
Percentage of annual usage limitation on net operating loss carryforward | 80.00% | |||
Kronos Worldwide, Inc. | Germany and Belgian | Current Periods Net Operating Loss Utilization | ||||
Income Taxes Disclosure [Line Items] | ||||
Increase (decrease) in non-cash deferred income tax asset valuation allowance | $ (5) | |||
European Subsidiaries | Transition Tax | ||||
Income Taxes Disclosure [Line Items] | ||||
Current income tax expense provisional pursuant to transition tax | $ 76.2 | |||
Income tax liability payable period | 8 years | |||
European Subsidiaries | Transition Tax | Income Tax Payable | Contran | ||||
Income Taxes Disclosure [Line Items] | ||||
Current income tax expense payable in increments over remainder of eight year period | $ 70.1 | 70.1 | ||
European Subsidiaries | Transition Tax | Income Tax Receivable | Contran | ||||
Income Taxes Disclosure [Line Items] | ||||
Current income tax expense payable in next fiscal year | 6.1 | 6.1 | ||
European and Canadian Subsidiaries | Undistributed Earnings Previously Considered to be Permanently Reinvested | ||||
Income Taxes Disclosure [Line Items] | ||||
Aggregate provisional non-cash deferred income tax expense | $ 0.8 | 5.3 | ||
Corporate Tax Purposes | Kronos Worldwide, Inc. | Germany | ||||
Income Taxes Disclosure [Line Items] | ||||
Net operating loss carryforwards | 652 | 652 | ||
Corporate Tax Purposes | Kronos Worldwide, Inc. | Belgium | ||||
Income Taxes Disclosure [Line Items] | ||||
Net operating loss carryforwards | 50 | 50 | ||
Trade Tax Purposes | Kronos Worldwide, Inc. | Germany | ||||
Income Taxes Disclosure [Line Items] | ||||
Net operating loss carryforwards | 0.5 | 0.5 | ||
Direct Investment in Subsidiary | Kronos Worldwide, Inc. | ||||
Income Taxes Disclosure [Line Items] | ||||
Deferred income tax liability | 157.6 | 157.6 | ||
Deferred income taxes expense | $ 3.6 | $ 10 | ||
Direct Investment in Subsidiary | Kronos Worldwide, Inc. | Maximum | ||||
Income Taxes Disclosure [Line Items] | ||||
Deferred income tax liability | $ 173 | $ 173 |
Noncontrolling Interest in Su73
Noncontrolling Interest in Subsidiaries - Noncontrolling Interest in Net Assets of Subsidiaries (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | $ 362.4 | $ 342.3 |
Kronos Worldwide, Inc. | ||
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | 217.5 | 204.9 |
NL Industries | ||
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | 74.1 | 71.1 |
CompX International | ||
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | 18.2 | 17.8 |
BMI | ||
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | 27.5 | 26 |
LandWell | ||
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | $ 25.1 | $ 22.5 |
Noncontrolling interest in Su74
Noncontrolling interest in Subsidiaries - Schedule of Noncontrolling Interest in Net Income of Subsidiaries (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Noncontrolling interest in net income of subsidiaries: | ||
Noncontrolling interest in net income of subsidiaries | $ 18.5 | $ 9.1 |
Kronos Worldwide, Inc. | ||
Noncontrolling interest in net income of subsidiaries: | ||
Noncontrolling interest in net income of subsidiaries | 13.8 | 7.2 |
NL Industries | ||
Noncontrolling interest in net income of subsidiaries: | ||
Noncontrolling interest in net income of subsidiaries | 2.4 | 1.4 |
CompX International | ||
Noncontrolling interest in net income of subsidiaries: | ||
Noncontrolling interest in net income of subsidiaries | 0.5 | 0.4 |
BMI | ||
Noncontrolling interest in net income of subsidiaries: | ||
Noncontrolling interest in net income of subsidiaries | 0.6 | |
LandWell | ||
Noncontrolling interest in net income of subsidiaries: | ||
Noncontrolling interest in net income of subsidiaries | $ 1.2 | $ 0.1 |
Accumulated Other Comprehensi75
Accumulated Other Comprehensive Loss - Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | $ 424.4 | |
Balance at end of period | 518.4 | |
Marketable Securities | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | 1.7 | $ 1.7 |
Other comprehensive income (loss) | (0.1) | |
Balance at end of period | 1.6 | 1.7 |
Interest Rate Swap | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | (1.2) | |
Reclassification adjustment for amountsincluded in interest expense | 0.4 | |
Balance at end of period | (0.8) | |
Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | (54.1) | (88.5) |
Other comprehensive income (loss) | 7.2 | 5.4 |
Balance at end of period | (46.9) | (83.1) |
Accumulated Defined Benefit Plans Adjustment | Defined Benefit Pension Plans | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | (129) | (137) |
Other comprehensive income (loss) | 1.9 | 2 |
Balance at end of period | (127.1) | (135) |
Accumulated Defined Benefit Plans Adjustment | OPEB | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | 2.4 | 3.1 |
Other comprehensive income (loss) | (0.2) | (0.2) |
Balance at end of period | 2.2 | 2.9 |
Total Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | (179) | (221.9) |
Other comprehensive income (loss) | 8.8 | 7.6 |
Balance at end of period | $ (170.2) | $ (214.3) |
Commitments and Contingencies -
Commitments and Contingencies - Lead Pigment Litigation-NL and Environmental Matters and Litigation - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($)Casessite | Dec. 31, 2017USD ($) | |
Commitments And Contingent Liabilities [Line Items] | ||
Accrual for reasonably estimable environmental remediation and related matters | $ 121.3 | $ 117.5 |
Other Environmental Cleanup Matters | ||
Commitments And Contingent Liabilities [Line Items] | ||
Accrual for reasonably estimable environmental remediation and related matters | 5.3 | |
NL | Environmental Remediation Sites NL Named As PRP Or Defendant | ||
Commitments And Contingent Liabilities [Line Items] | ||
Accrual for reasonably estimable environmental remediation and related matters | $ 116 | |
Number of sites associated with remediation and related costs | site | 38 | |
Number of sites for which NL not currently able to reasonably estimate range of costs | site | 5 | |
NL | Maximum | Environmental Remediation Sites NL Named As PRP Or Defendant | ||
Commitments And Contingent Liabilities [Line Items] | ||
Upper end range, estimate costs for remediation and related matters | $ 147 | |
Lead Pigment Litigation | NL | ||
Commitments And Contingent Liabilities [Line Items] | ||
Number of cases settled and dismissed and found not liable | Cases | 100 | |
Period by which loss contingency claims settled and dismissed | 20 years | |
California Lead Paint Litigation | NL | ||
Commitments And Contingent Liabilities [Line Items] | ||
Amount awarded to the plaintiff | $ 1,150 |
Commitments and Contingencies77
Commitments and Contingencies - Changes in Accrued Environmental Remediation and Related Costs (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Environmental Remediation Obligations [Abstract] | |||
Balance at the beginning of the year | $ 117.5 | ||
Additions charged to expense, net | 4.3 | ||
Payments, net | (0.5) | ||
Balance at the end of period | 121.3 | ||
Amounts recognized in our Condensed Consolidated Balance Sheet at the end of the period: | |||
Current liabilities | $ 19.7 | $ 6.8 | |
Noncurrent liabilities | 101.6 | 110.7 | |
Total | $ 117.5 | $ 121.3 | $ 117.5 |
Commitments and Contingencies78
Commitments and Contingencies - Other Litigation - Additional Information (Detail) - Product Liability And Occupational Exposure Litigation Claims - NL | 3 Months Ended |
Mar. 31, 2018CasesPlaintiff | |
Commitments And Contingent Liabilities [Line Items] | |
Cases pending | Cases | 106 |
Pending Claims | |
Commitments And Contingent Liabilities [Line Items] | |
Number of plaintiffs involved | 579 |
Administratively Dismissed Claims | |
Commitments And Contingent Liabilities [Line Items] | |
Number of plaintiffs involved | 8,676 |
Fair Value Measurements and F79
Fair Value Measurements and Financial Instruments - Marketable Securities and Financial Instruments on Fair Value Basis (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities, current | $ 0.6 | $ 3 |
Marketable securities, noncurrent | 258.1 | 255.7 |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities, noncurrent | 3 | 1.3 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities, current | 0.6 | 3 |
Marketable securities, noncurrent | 5.1 | 4.4 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities, noncurrent | $ 250 | $ 250 |
Fair Value Measurements and F80
Fair Value Measurements and Financial Instruments - Additional Information (Detail) | Mar. 31, 2018USD ($) | Mar. 31, 2018EUR (€) | Dec. 31, 2017USD ($) |
Financial Instrument At Fair Value [Line Items] | |||
Marketable securities | $ 258,100,000 | $ 255,700,000 | |
Amalgamated Sugar Company LLC | |||
Financial Instrument At Fair Value [Line Items] | |||
Marketable securities | 250,000,000 | ||
Kronos Worldwide, Inc. | 3.75% Senior Secured Notes due September 15, 2025 | Kronos International, Inc | |||
Financial Instrument At Fair Value [Line Items] | |||
Estimated market price of the notes | € | € 1,029 | ||
Principal amount of debt instrument | € | € 1,000 | ||
Kronos Worldwide, Inc. | Currency Forward Contracts | |||
Financial Instrument At Fair Value [Line Items] | |||
Currency forward contracts outstanding | $ 0 | $ 0 |
Fair Value Measurements and F81
Fair Value Measurements and Financial Instruments - Financial Instruments not Carried at Fair Value (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Kronos Worldwide, Inc. | 3.75% Senior Secured Notes due September 15, 2025 | Kronos International, Inc | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long term debt, carrying amount | $ 485 | $ 471.1 |
Long term debt, fair value | 506.6 | 495.1 |
VALHI, INC. | Contran Credit Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long term debt, carrying amount | 320.6 | 284.3 |
Long term debt, fair value | 320.6 | 284.3 |
VALHI, INC. | Term Loan | Snake River | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long term debt, carrying amount | 250 | 250 |
Long term debt, fair value | 250 | 250 |
Tremont | Promissory Note | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long term debt, carrying amount | 10.9 | 13.1 |
Long term debt, fair value | 10.9 | 13.1 |
BMI | Bank note payable | Meadows Term Loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long term debt, carrying amount | 18.8 | 18.8 |
Long term debt, fair value | 19.7 | 19.7 |
LandWell | Unsecured Debt | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long term debt, carrying amount | 2.5 | 2.5 |
Long term debt, fair value | 2.5 | 2.5 |
Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash, cash equivalents and restricted cash equivalents | 503.5 | 461.7 |
Deferred payment obligation | 9.4 | 9.3 |
Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash, cash equivalents and restricted cash equivalents | 503.5 | 461.7 |
Deferred payment obligation | $ 9.4 | $ 9.3 |
Recent Accounting Pronounceme82
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Retained earnings (deficit) | $ 67.3 | $ (17.9) | ||
Accounting Standards Update 2014-09 | Real Estate Management And Development | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Receivable | $ 6.1 | |||
Contract asset | 8.8 | |||
Offsetting liability for deferred revenue | 8.8 | |||
Land sales revenue | $ 0.4 | |||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Real Estate Management And Development | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Retained earnings (deficit) | 6.1 | |||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Non-controlling interest | Real Estate Management And Development | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Retained earnings (deficit) | $ 2.7 | |||
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 | $ 2.6 | |||
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 | $ 1.7 |