Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 28, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Entity Registrant Name | NL INDUSTRIES, INC. | ||
Entity File Number | 1-640 | ||
Entity Incorporation, State or Country Code | NJ | ||
Entity Tax Identification Number | 13-5267260 | ||
Entity Address, Address Line One | 5430 LBJ Freeway, Suite 1700 | ||
Entity Address, City or Town | Dallas | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75240-2620 | ||
City Area Code | (972) | ||
Local Phone Number | 233-1700 | ||
Title of 12(b) Security | Common stock | ||
Trading Symbol | NL | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Public Float | $ 54.7 | ||
Entity Common Stock, Shares Outstanding | 48,802,734 | ||
Documents Incorporated by Reference | The information required by Part III is incorporated by reference from the Registrant’s definitive proxy statement to be filed with the Commission pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this report. | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Firm ID | 238 | ||
Auditor Location | Dallas, Texas | ||
Entity Central Index Key | 0000072162 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 147,002 | $ 137,039 |
Restricted cash and cash equivalents | 2,765 | 2,695 |
Accounts and other receivables, net | 15,609 | 11,142 |
Receivables from affiliates | 313 | |
Inventories, net | 25,642 | 18,337 |
Prepaid expenses and other | 2,630 | 1,638 |
Total current assets | 193,648 | 171,164 |
Other assets: | ||
Restricted cash and cash equivalents | 25,475 | 25,538 |
Note receivable from affiliate | 18,700 | 29,500 |
Marketable securities | 34,435 | 18,206 |
Investment in Kronos Worldwide, Inc. | 264,803 | 242,374 |
Goodwill | 27,156 | 27,156 |
Other assets, net | 2,753 | 5,262 |
Total other assets | 373,322 | 348,036 |
Property and equipment: | ||
Land | 5,071 | 4,940 |
Buildings | 23,161 | 23,146 |
Equipment | 70,664 | 68,227 |
Construction in progress | 2,028 | 1,010 |
Property and equipment, gross | 100,924 | 97,323 |
Less accumulated depreciation | 71,742 | 68,373 |
Net property and equipment | 29,182 | 28,950 |
Total assets | 596,152 | 548,150 |
Current liabilities: | ||
Accounts payable | 3,408 | 2,647 |
Accrued litigation settlement | 11,830 | 11,830 |
Accrued and other current liabilities | 12,017 | 10,253 |
Accrued environmental remediation and related costs | 2,643 | 2,027 |
Payables to affiliates | 691 | 725 |
Income taxes | 8 | 25 |
Total current liabilities | 30,597 | 27,507 |
Noncurrent liabilities: | ||
Long-term debt from affiliate | 500 | 500 |
Accrued environmental remediation and related costs | 90,297 | 91,389 |
Long-term litigation settlement | 38,519 | 49,403 |
Deferred income taxes | 44,056 | 33,830 |
Accrued pension costs | 3,722 | 6,392 |
Other | 3,490 | 3,780 |
Total noncurrent liabilities | 180,584 | 185,294 |
NL stockholders' equity: | ||
Preferred stock, no par value; 5,000 shares authorized; none issued | ||
Common stock, $.125 par value; 150,000 shares authorized; 48,789 and 48,803 shares issued and outstanding | 6,100 | 6,098 |
Additional paid-in capital | 299,775 | 299,093 |
Retained earnings | 297,351 | 257,875 |
Accumulated other comprehensive loss | (240,756) | (251,189) |
Total NL stockholders' equity | 362,470 | 311,877 |
Noncontrolling interest in subsidiary | 22,501 | 23,472 |
Total equity | 384,971 | 335,349 |
Total liabilities and equity | 596,152 | 548,150 |
Commitments and contingencies (Notes 14 and 17) |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.125 | $ 0.125 |
Common stock, shares authorized | 150,000 | 150,000 |
Common stock, shares issued | 48,789 | 48,803 |
Common stock, shares outstanding | 48,789 | 48,803 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Net sales | $ 140,815 | $ 114,537 | $ 124,243 |
Cost of sales | 98,066 | 81,689 | 85,280 |
Gross margin | 42,749 | 32,848 | 38,963 |
Selling, general and administrative expense | 22,223 | 21,031 | 21,297 |
Other operating income (expense): | |||
Insurance recoveries | 71 | 81 | 5,138 |
Other income, net | 29 | 18 | 7,444 |
Litigation settlement expense, net | (19,266) | ||
Corporate expense | (10,135) | (9,559) | (12,591) |
Income (loss) from operations | 10,491 | 2,357 | (1,609) |
Equity in earnings of Kronos Worldwide, Inc. | 34,323 | 19,437 | 26,470 |
Other income (expense): | |||
Interest and dividend income | 1,603 | 2,599 | 6,672 |
Marketable equity securities | 16,229 | (8,671) | (863) |
Other components of net periodic pension and OPEB cost | (665) | (784) | (1,375) |
Interest expense | (1,142) | (1,350) | (681) |
Income before income taxes | 60,839 | 13,588 | 28,614 |
Income tax expense (benefit) | 7,479 | (2,515) | 579 |
Net income | 53,360 | 16,103 | 28,035 |
Noncontrolling interest in net income of subsidiary | 2,172 | 1,423 | 2,191 |
Net income attributable to NL stockholders | $ 51,188 | $ 14,680 | $ 25,844 |
Amounts attributable to NL stockholders: | |||
Net income per basic share | $ 1.05 | $ 0.30 | $ 0.53 |
Net income per diluted share | $ 1.05 | $ 0.30 | $ 0.53 |
Weighted average shares outstanding - basic | 48,797 | 48,776 | 48,745 |
Weighted average shares outstanding - diluted | 48,797 | 48,776 | 48,745 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 53,360 | $ 16,103 | $ 28,035 |
Other comprehensive income (loss), net of tax: | |||
Currency translation | (1,660) | 3,268 | (409) |
Defined benefit pension plans | 12,236 | (2,447) | (2,971) |
Other postretirement benefit plans | (143) | (320) | (40) |
Total other comprehensive income (loss), net | 10,433 | 501 | (3,420) |
Comprehensive income | 63,793 | 16,604 | 24,615 |
Comprehensive income attributable to noncontrolling interest | 2,172 | 1,423 | 2,191 |
Comprehensive income attributable to NL stockholders | $ 61,621 | $ 15,181 | $ 22,424 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Noncontrolling interest in subsidiary | Total |
Beginning Balance at Dec. 31, 2018 | $ 6,090 | $ 301,139 | $ 225,156 | $ (248,270) | $ 19,443 | $ 303,558 |
Net income | 25,844 | 2,191 | 28,035 | |||
Other comprehensive income (loss), net of tax | (3,420) | (3,420) | ||||
Issuance of NL common stock | 4 | 96 | 100 | |||
Dividends paid to noncontrolling interest | (470) | (470) | ||||
Other, net | (2,133) | 1,543 | (590) | |||
Ending Balance at Dec. 31, 2019 | 6,094 | 299,102 | 251,000 | (251,690) | 22,707 | 327,213 |
Net income | 14,680 | 1,423 | 16,103 | |||
Other comprehensive income (loss), net of tax | 501 | 501 | ||||
Issuance of NL common stock | 4 | 96 | 100 | |||
Dividends paid | (7,805) | (7,805) | ||||
Dividends paid to noncontrolling interest | (676) | (676) | ||||
Other, net | (105) | 18 | (87) | |||
Ending Balance at Dec. 31, 2020 | 6,098 | 299,093 | 257,875 | (251,189) | 23,472 | 335,349 |
Net income | 51,188 | 2,172 | 53,360 | |||
Other comprehensive income (loss), net of tax | 10,433 | 10,433 | ||||
Issuance of NL common stock | 2 | 99 | 101 | |||
Dividends paid | (11,712) | (11,712) | ||||
Dividends paid to noncontrolling interest | (1,324) | (1,324) | ||||
Other, net | 583 | (1,819) | (1,236) | |||
Ending Balance at Dec. 31, 2021 | $ 6,100 | $ 299,775 | $ 297,351 | $ (240,756) | $ 22,501 | $ 384,971 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement Of Stockholders Equity [Abstract] | ||
Dividends paid per share | $ 0.24 | $ 0.16 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 53,360 | $ 16,103 | $ 28,035 |
Depreciation and amortization | 3,839 | 3,827 | 3,685 |
Deferred income taxes | 7,453 | (2,530) | 430 |
Equity in earnings of Kronos Worldwide, Inc. | (34,323) | (19,437) | (26,470) |
Dividends received from Kronos Worldwide, Inc. | 25,356 | 25,356 | 25,356 |
Marketable equity securities | (16,229) | 8,671 | 863 |
Cash funding of benefit plans in excess of net benefit plan expense | (220) | (792) | (1,574) |
Noncash interest expense | 1,116 | 1,321 | 646 |
Net gain from sale of excess property | (4,424) | ||
Net gain from sale of business | (3,000) | ||
Other, net | (31) | 93 | 281 |
Change in assets and liabilities: | |||
Accounts and other receivables, net | (4,488) | 1,121 | 15,487 |
Inventories, net | (7,479) | (193) | (1,439) |
Prepaid expenses and other | (991) | (237) | (77) |
Accounts payable and accrued liabilities | (9,399) | (13,163) | (26,365) |
Income taxes | 13 | (77) | 33 |
Accounts with affiliates | 279 | 193 | 444 |
Accrued environmental remediation and related costs | (476) | (1,092) | (3,703) |
Other noncurrent assets and liabilities, net | (171) | (141) | 19,227 |
Net cash provided by operating activities | 17,609 | 19,023 | 27,435 |
Cash flows from investing activities: | |||
Capital expenditures | (4,094) | (1,740) | (3,166) |
Note receivable from affiliate: | |||
Loans | (29,800) | (34,828) | (34,900) |
Collections | 40,600 | 33,428 | 40,800 |
Proceeds from sale of excess property | 4,636 | ||
Proceeds from sale of business | 2,925 | ||
Cash, cash equivalents and restricted cash and cash equivalents of business at time of sale | (504) | ||
Other | 2 | 125 | |
Net cash provided by (used in) investing activities | 6,708 | (3,140) | 9,916 |
Cash flows from financing activities: | |||
Dividends paid | (11,712) | (7,805) | |
Subsidiary treasury stock acquired | (1,311) | ||
Dividends paid to noncontrolling interests in subsidiary | (1,324) | (676) | (470) |
Net cash used in financing activities | (14,347) | (8,481) | (470) |
Cash and cash equivalents and restricted cash and cash equivalents - net change from: | |||
Operating, investing and financing activities | 9,970 | 7,402 | 36,881 |
Balance at beginning of year | 165,272 | 157,870 | 120,989 |
Balance at end of year | 175,242 | 165,272 | 157,870 |
Supplemental disclosures - cash paid for: | |||
Interest | 26 | 27 | 36 |
Income taxes, net | $ 32 | $ 46 | (118) |
Noncash investing - receivable from sale of business | $ 325 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Note 1 - Summary of significant accounting policies: Nature of our business - Organization Unless otherwise indicated, references in this report to “we,” “us” or “our” refer to NL Industries, Inc. and its subsidiaries and affiliate, Kronos, taken as a whole. Management’s estimates Principles of consolidation Currency translation C ash and cash equivalents Restricted cash and cash equivalents a recognized liability, we classify such restricted amount as either a current or noncurrent asset to correspond with the classification of the liability. To the extent the restricted amount does not relate to a recognized liability, we classify restricted cash as a current asset. Restricted cash equivalents classified as a current asset or a noncurrent asset are presented separately on our Consolidated Balance Sheets. Marketable securities and securities transactions Fair Value Measurements and Disclosures ● Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; ● Level 2 - Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the assets or liability; and ● Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable. We classify all of our marketable securities as available-for-sale. Unrealized gains or losses on the securities are recognized in Marketable equity securities on our Consolidated Statements of Income. We base realized gains and losses upon the specific identification of the securities sold. See Notes 5 and 11. Accounts receivable Inventories and cost of sales Investment in Kronos Worldwide, Inc. Goodwill Leases Leases Property and equipment; depreciation expense We perform impairment tests when events or changes in circumstances indicate the carrying value may not be recoverable. We consider all relevant factors. We perform impairment tests by comparing the estimated future undiscounted cash flows associated with the asset to the asset’s net carrying value to determine whether impairment exists. Employee benefit plans Income taxes We recognize deferred income tax assets and liabilities for the expected future tax consequences of temporary differences between the income tax and financial reporting carrying amounts of assets and liabilities, including investments in our subsidiaries and affiliates who are not members of the Contran Tax Group and undistributed earnings of non-U.S. subsidiaries which are not deemed to be permanently reinvested. In addition, 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 recognition of such deferred income taxes is not available to us. Deferred income tax assets and liabilities for each tax-paying jurisdiction in which we operate are netted and presented as either a noncurrent deferred income tax asset or liability, as applicable. We periodically evaluate our deferred tax assets in the various taxing jurisdictions in which we operate and adjust any related valuation allowance based on the estimate of the amount of such deferred tax assets that we believe does not meet the more-likely-than-not recognition criteria. We account for the tax effects of a change in tax law as a component of the income tax provision related to continuing operations in the period of enactment, including the tax effects of any deferred income taxes originally established through a financial statement component other than continuing operations (i.e. other comprehensive income). Changes in applicable income tax rates over time as a result of changes in tax law, or times in which a deferred income tax asset valuation allowance is initially recognized in one year and subsequently reversed in a later year, can give rise to “stranded” tax effects in accumulated other comprehensive income in which the net accumulated income tax (benefit) remaining in accumulated other comprehensive income does not correspond to the then-applicable income tax rate applied to the pre-tax amount which resides in accumulated other comprehensive income. As permitted by GAAP, our accounting policy is to remove any such stranded tax effect remaining in accumulated other comprehensive income, by recognizing an offset to our provision for income taxes related to continuing operations, only at the time when there is no remaining pre-tax amount in accumulated other comprehensive income. For accumulated other comprehensive income related to currency translation, this would occur only upon the sale or complete liquidation of one of our non-U.S. subsidiaries. For defined pension benefit plans and OPEB plans, this would occur whenever one of our subsidiaries which previously sponsored a defined benefit pension or OPEB plan had terminated such a plan and had no future obligation or plan asset associated with such a plan. We record a reserve for uncertain tax positions for tax positions where we believe it is more-likely-than-not our position will not prevail with the applicable tax authorities. The amount of the benefit associated with our uncertain tax positions that we recognize is limited to the largest amount for which we believe the likelihood of realization is greater than 50%. We accrue penalties and interest on the difference between tax positions taken on our tax returns and the amount of benefit recognized for financial reporting purposes. We classify our reserves for uncertain tax positions in a separate current or noncurrent liability, depending on the nature of the tax position. See Note 14. Environmental remediation costs Net sales Revenue from Contracts with Customers (ASC 606), Revenue is recorded in an amount that reflects the net consideration we expect to receive in exchange for our products. Prices for our products are based on terms specified in published list prices and purchase orders, which generally do not include financing components, noncash consideration or consideration paid to our customers. As our standard payment terms are less than one year, we have elected the practical expedient under ASC 606 and we have not assessed whether a contract has a significant financing component. We state sales net of price, early payment and distributor discounts as well as volume rebates (collectively, variable consideration). Variable consideration, to the extent present, is not material and is recognized as the amount to which we are most-likely to be entitled, using all information (historical, current and forecasted) that is reasonably available to us, and only to the extent that a significant reversal in the amount of the cumulative revenue recognized is not probable of occurring in a future period. Differences, if any, between estimates of the amount of variable consideration to which we will be entitled and the actual amount of such variable consideration have not been material in the past. We report any tax assessed by a governmental authority that we collect from our customers that is both imposed on and concurrent with our revenue-producing activities (such as sales, use, value added and excise taxes) on a net basis (meaning we do not recognize these taxes either in our revenues or in our costs and expenses). Frequently, we receive orders for products to be delivered over dates that may extend across reporting periods. We invoice for each delivery upon shipment and recognize revenue for each distinct shipment when all sales recognition criteria for that shipment have been satisfied. As scheduled delivery dates for these orders are within a one year period, under the optional exemption provided by ASC 606, we do not disclose sales allocated to future shipments of partially completed contracts. Selling, general and administrative expenses; advertising costs; research and development costs entertainment, promotional materials and professional fees. We expense advertising costs and research and development costs as incurred. Advertising and research and development costs were not significant in any year presented. Corporate expenses |
Business and Geographic Informa
Business and Geographic Information | 12 Months Ended |
Dec. 31, 2021 | |
Segments Geographical Areas [Abstract] | |
Business and geographic information | Note 2 - Business and geographic information: We operate in the security products industry and marine components industry through our majority ownership of CompX. CompX manufactures and sells security products including locking mechanisms and other security products for sale to the transportation, postal, office and institutional furniture, cabinetry, tool storage, healthcare and other industries. CompX also manufactures and distributes stainless steel exhaust systems, gauges, throttle controls, wake enhancement systems, trim tabs and related hardware and accessories primarily for performance and ski/wakeboard boats. The following table disaggregates our net sales by reporting unit, which are 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). Years ended December 31, 2019 2020 2021 (In thousands) Net sales: Security Products $ 99,328 $ 87,863 $ 105,124 Marine Components 24,915 26,674 35,691 Total $ 124,243 $ 114,537 $ 140,815 For geographic information, the point of origin (place of manufacture) for all net sales is the U.S., the point of destination for net sales is based on the location of the customer. Years ended December 31, 2019 2020 2021 (In thousands) Net sales - point of destination: United States $ 114,186 $ 107,712 $ 129,160 Canada 7,257 4,423 8,061 Mexico 922 431 589 Other 1,878 1,971 3,005 Total $ 124,243 $ 114,537 $ 140,815 |
Accounts and Other Receivables,
Accounts and Other Receivables, Net | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Accounts and other receivables, net | Note 3 - Accounts and other receivables, net: December 31, 2020 2021 (In thousands) Trade receivables - CompX $ 10,801 $ 15,616 Accrued insurance recoveries 18 43 Other receivables 393 20 Allowance for doubtful accounts (70) (70) Total $ 11,142 $ 15,609 Accrued insurance recoveries are discussed in Note 17. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Note 4 - Inventories, net: December 31, 2020 2021 (In thousands) Raw materials $ 3,220 $ 5,042 Work in process 11,668 16,767 Finished products 3,449 3,833 Total $ 18,337 $ 25,642 |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable securities | Note 5 - Marketable securities: Our marketable securities consist of investments in the publicly-traded shares of our immediate parent company Valhi, Inc. Our shares of Valhi common stock are accounted for as available-for-sale securities, which are carried at fair value using quoted market prices in active markets and represent a Level 1 input within the fair value hierarchy. Unrealized gains or losses on the securities are recognized in Marketable equity securities on our Consolidated Statements of Income. Fair value measurement Market Cost Unrealized level value basis gain (loss) (In thousands) December 31, 2020 Noncurrent assets Valhi common stock 1 $ 18,206 $ 24,347 $ (6,141) December 31, 2021 Noncurrent assets Valhi common stock 1 $ 34,435 $ 24,347 $ 10,088 At December 31, 2020 and 2021, we held approximately 1.2 million shares of our immediate parent company, Valhi. See Note 1. The per share quoted market price of Valhi common stock at December 31, 2020 and 2021 was $15.20 and $28.75, respectively. The Valhi common stock we own is subject to the restrictions on resale pursuant to certain provisions of the SEC Rule 144. In addition, as a majority-owned subsidiary of Valhi we cannot vote our shares of Valhi common stock under Delaware General Corporation Law, but we do receive dividends from Valhi on these shares, when declared and paid. |
Investment in Kronos Worldwide,
Investment in Kronos Worldwide, Inc. | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investment in Kronos Worldwide, Inc. | Note 6 - Investment in Kronos Worldwide, Inc.: At December 31, 2020 and 2021, we owned approximately 35.2 million shares of Kronos common stock. The per share quoted market price of Kronos common stock at December 31, 2020 and 2021 was $14.91 and $15.01 per share, respectively, or an aggregate market value of $525.1 million and $528.6 million, respectively. The change in the carrying value of our investment in Kronos during the past three years is summarized below: Years ended December 31, 2019 2020 2021 (In millions) Balance at the beginning of the period $ 255.5 $ 248.4 $ 242.4 Equity in earnings of Kronos 26.5 19.4 34.3 Dividends received from Kronos (25.4) (25.4) (25.4) Equity in Kronos' other comprehensive income (loss): Currency translation (.5) 4.1 (2.1) Defined benefit pension plans (6.7) (3.7) 15.6 Other postretirement benefit plans (.1) (.1) — Other (.9) (.3) — Balance at the end of the year $ 248.4 $ 242.4 $ 264.8 Selected financial information of Kronos is summarized below: December 31, 2020 2021 (In millions) Current assets $ 1,218.3 $ 1,258.0 Property and equipment, net 524.6 503.4 Investment in TiO 2 103.3 101.9 Other noncurrent assets 190.5 149.5 Total assets $ 2,036.7 $ 2,012.8 Current liabilities $ 260.2 $ 288.8 Long-term debt 486.7 449.8 Accrued pension costs 372.6 287.4 Other noncurrent liabilities 120.7 116.6 Stockholders’ equity 796.5 870.2 Total liabilities and stockholders’ equity $ 2,036.7 $ 2,012.8 Years ended December 31, 2019 2020 2021 (In millions) Net sales $ 1,731.1 $ 1,638.8 $ 1,939.4 Cost of sales 1,344.9 1,287.6 1,493.2 Income from operations 145.8 116.2 187.1 Income tax expense 34.0 16.1 40.5 Net income 87.1 63.9 112.9 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 7 - Goodwill: All of our goodwill is related to our component products operations and was generated from CompX’s acquisitions of certain business units. There have been no changes in the carrying amount of our goodwill during the past three years. We assign goodwill based on the reporting unit (as that term is defined in ASC Topic 350-20-20 Goodwill In 2019, 2020 and 2021, our goodwill was tested for impairment only in the third quarter of each year in connection with our annual testing. No impairment was indicated as part of such annual review of goodwill. As permitted by GAAP, during 2019, 2020 and 2021 we used the qualitative assessment of ASC 350-20-35 for our annual impairment test and determined it was not necessary to perform the quantitative goodwill impairment test. Such discounted cash flows are a Level 3 input as defined by ASC 820-10-35. Prior to 2019, all of the goodwill related to CompX’s marine components operations (which aggregated $10.1 million) was impaired, and all of the goodwill related to our wholly-owned subsidiary EWI Re, Inc., (EWI) an insurance brokerage and risk management services company (which aggregated $6.4 million), was impaired. Our gross goodwill at December 31, 2021 was $43.7 million. |
Other Assets, Net
Other Assets, Net | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other assets, net | Note 8 - Other assets, net: December 31, 2020 2021 (In thousands) Pension asset $ 3,881 $ 1,356 Other 1,381 1,397 Total $ 5,262 $ 2,753 |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Accrued and other current liabilities | Note 9 - Accrued and other current liabilities: December 31, 2020 2021 (In thousands) Employee benefits $ 9,000 $ 10,345 Other 1,253 1,672 Total $ 10,253 $ 12,017 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term debt | Note 10 - Long-term debt: In November 2016, we entered into a financing transaction with Valhi. Previously, and in contemplation of the financing transaction described herein, we formed NLKW Holding, LLC and capitalized it with 35.2 million shares of the common stock of Kronos held by us. The financing transaction consisted of two steps. Under the first step, NLKW entered into a $50 million revolving credit facility (the “Valhi Credit Facility”) pursuant to which NLKW can borrow up to $50 million from Valhi (with such commitment amount subject to increase from time to time at Valhi’s sole discretion). Proceeds from any borrowings by NLKW under the Valhi Credit Facility would be available for one or more loans from NLKW to us in accordance with the terms of the second step of the financing transaction: a Back-to-Back Credit Facility, as described below. Outstanding borrowings under the Valhi Credit Facility bear interest at the prime rate plus 1.875% per annum, payable quarterly, with all amounts due on December 31, 2023. The maximum principal amount which may be outstanding from time-to-time under the Valhi Credit Facility is limited to 50% of the amount determined by multiplying the number of shares of Kronos common stock pledged by the most recent closing price of such security on the New York Stock Exchange. Borrowings under the Valhi Credit Facility are collateralized by the assets of NLKW (consisting primarily of the shares of Kronos common stock pledged) and 100% of the membership interest in NLKW held by us. The Valhi Credit Facility contains a number of covenants and restrictions which, among other things, restrict NLKW’s ability to incur additional debt, incur liens, and merge or consolidate with, or sell or transfer substantially all of NLKW’s assets to, another entity, and require NLKW to maintain a minimum specified level of consolidated net worth. Upon an event of default, Valhi will be entitled to terminate its commitment to make further loans to NLKW, to declare the outstanding loans (with interest) immediately due and payable, and, in the case of certain insolvency events with respect to NLKW or us, to exercise its rights with respect to the collateral. Such collateral rights include the right to purchase all of the shares of Kronos common stock pledged at a purchase price equal to the aggregate market value of such stock (with such market value determined by an independent third-party valuation provider), less amounts owing to Valhi under the Valhi Credit Facility, with up to 50% of such purchase price being payable by Valhi in the form of an unsecured promissory note bearing interest at the prime rate plus 2.75% per annum, payable quarterly, with all amounts due no later than five years from the date of purchase, and with the remainder of such purchase price payable in cash at the date of purchase. Contemporaneously with the entering into the Valhi Credit Facility, NLKW entered into a $50 million revolving credit facility (the “Back-to-Back Credit Facility”) with us, pursuant to which we can borrow up to $50 million from NLKW (with such commitment amount subject to increase from time to time at NLKW’s sole discretion). Proceeds from any borrowings under the Back-to-Back Credit Facility would be available for our general corporate purposes, including providing resources to assist us in the resolution of certain claims and contingent liabilities which may be asserted against us. Outstanding borrowings under the Back-to-Back Credit Facility bear interest at the same rate and are payable on the same maturity date as are borrowings by NLKW under the Valhi Credit Facility. Borrowings under the Back-to-Back Credit Facility are on an unsecured basis; however, as a condition thereto, we pledged to Valhi as collateral for the Valhi Credit Facility our 100% membership interest in NLKW. Any outstanding borrowings and interest on such borrowings under the Back-to-Back Credit Facility are eliminated in the preparation of the consolidated financial statements. We had outstanding borrowings under the Valhi Credit Facility of $.5 million as of December 31, 2020 and 2021 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee benefit plans | Note 11 - Employee benefit plans: Defined contribution plans Defined benefit pension plans In accordance with applicable U.K. pension regulations, we entered into an agreement in March 2021 for the bulk annuity purchase, or “buy-in” with a specialist insurer of defined benefit pension plans. Following the buy-in, individual policies will replace the bulk annuity policy in a “buy-out” which is expected to be completed in 2022. The buy-out is expected to be completed with existing plan funds. At the completion of the buy-out we will remove the assets and liabilities of the U.K. pension plan from our Consolidated Financial Statements and a plan settlement gain or loss (which we are currently unable to estimate) will be included in net periodic pension cost. At December 31, 2021, the U.K. plan had a benefit obligation of $10.1 million, plan assets of $11.5 million and a pension plan asset of $1.4 million was recognized in our Consolidated Balance Sheet. We expect to contribute approximately $1.2 million to our defined benefit pension plans during 2022. Benefit payments to all plan participants out of plan assets are expected to be the equivalent of: Years ending December 31, Amount (In thousands) 2022 $ 3,689 2023 3,647 2024 3,570 2025 3,493 2026 3,435 Next 5 years 15,885 The funded status of our defined benefit pension plans is presented in the table below. December 31, 2020 2021 (In thousands) Change in projected benefit obligations (PBO): Benefit obligations at beginning of the year $ 50,350 $ 52,873 Interest cost 1,483 947 Actuarial losses 4,353 295 Change in currency exchange rates 307 (73) Benefits paid (3,620) (3,675) Benefit obligations at end of the year 52,873 50,367 Change in plan assets: Fair value of plan assets at beginning of the year 46,313 50,260 Actual return on plan assets 5,308 226 Employer contributions 1,841 1,169 Change in currency exchange rates 418 (40) Benefits paid (3,620) (3,675) Fair value of plan assets at end of year 50,260 47,940 Funded status $ (2,613) $ (2,427) Amounts recognized in the balance sheet: Noncurrent pension asset $ 3,881 $ 1,356 Accrued pension costs: Current (102) (61) Noncurrent (6,392) (3,722) Total (2,613) (2,427) Accumulated other comprehensive loss - 28,209 28,265 Total $ 25,596 $ 25,838 Accumulated benefit obligations (ABO) $ 52,873 $ 50,367 The amounts shown in the table above for actuarial losses at December 31, 2020 and 2021 have not been recognized as components of our periodic defined benefit pension cost as of those dates. These amounts will be recognized as components of our periodic defined benefit cost in future years. These amounts, net of deferred income taxes, are recognized in our accumulated other comprehensive income (loss) at December 31, 2020 and 2021. The total net underfunded status of our defined benefit pension plans decreased from $2.6 million at December 31, 2020 to $2.4 million at December 31, 2021 due to the change in our PBO exceeding the change in plan assets during 2021. The decrease in our plan assets in 2021 was primarily attributable to lower net plan asset returns in 2021. The decrease in our PBO in 2021 was primarily attributable to actuarial gains due to the increase in discount rates from year end 2020. The table below details the changes in other comprehensive income (loss) during 2019, 2020 and 2021. Years ended December 31, 2019 2020 2021 (In thousands) Changes in plan assets and benefit obligations recognized in Net actuarial gain (loss) arising during the year $ 1,330 $ (934) $ 1,618 Amortization of unrecognized net actuarial gain (loss) 1,584 1,412 (1,562) Total $ 2,914 $ 478 $ 56 The components of our net periodic defined benefit pension cost are presented in the table below. The amounts shown below for recognized actuarial losses in 2019, 2020 and 2021, net of deferred income taxes, was recognized as a component of our accumulated other comprehensive income at December 31, 2018, 2019 and 2020, respectively. Years ended December 31, 2019 2020 2021 (In thousands) Net periodic pension cost: Interest cost on PBO $ 1,884 $ 1,483 $ 947 Expected return on plan assets (1,899) (1,850) (1,603) Recognized actuarial losses 1,584 1,412 1,562 Total $ 1,569 $ 1,045 $ 906 Certain information concerning our defined benefit pension plans (including information concerning certain plans for which ABO exceeds the fair value of plan assets as of the indicated date) is presented in the table below. December 31, 2020 2021 (In thousands) PBO at end of the year: U.S. plan $ 43,754 $ 40,254 U.K. plan 9,119 10,113 Total $ 52,873 $ 50,367 Fair value of plan assets at end of the year: U.S. plan $ 37,260 $ 36,471 U.K. plan 13,000 11,469 Total $ 50,260 $ 47,940 Plans for which the ABO exceeds plan assets (only our U.S. plan): PBO $ 43,754 $ 40,254 ABO 43,754 40,254 Fair value of plan assets 37,260 36,471 The weighted-average discount rate assumptions used in determining the actuarial present value of our benefit obligations as of December 31, 2020 and 2021 are 2.1% and 2.3%, respectively. Such weighted-average rates were determined using the projected benefit obligations at each date. Since our plans are closed to new participants and no new additional benefits accrue to existing plan participants, assumptions regarding future compensation levels are not applicable. Consequently, the accumulated benefit obligations for all of our defined benefit pension plans were equal to the projected benefit obligations at December 31, 2020 and 2021. The weighted-average rate assumptions used in determining the net periodic pension cost for 2019, 2020 and 2021 are presented in the table below. Such weighted-average discount rates were determined using the projected benefit obligations as of the beginning of each year and the weighted-average long-term return on plan assets was determined using the fair value of plan assets as of the beginning of each year. Years ended December 31, Rate 2019 2020 2021 Discount rate 3.9 % 2.9 % 2.1 % Long-term rate of return on plan assets 4.7 % 4.2 % 3.3 % Variances from actuarially assumed rates will result in increases or decreases in accumulated pension obligations, pension expense and funding requirements in future periods. In determining the expected long-term rate of return on our U.S. and non-U.S. plan asset assumptions, we consider the long-term asset mix (e.g. equity vs. fixed income) for the assets for each of our plans and the expected long-term rates of return for such asset components. In addition, we receive third-party advice about appropriate long-term rates of return. In the U.S. we currently have a plan asset target allocation of 33% to equity securities, 59% to fixed income securities, and the remainder is allocated to multi-asset strategies. The expected long-term rate of return for such investments is approximately 9%, 3% and 2%, respectively (before plan administrative expenses). Approximately 94% of our U.S. plan assets are invested in funds that are valued at net asset value (NAV) and, in accordance with ASC 820-10, not subject to classification in the fair value hierarchy. The non-U.S. plan assets are invested primarily in insurance contracts and are a Level 3 input. We regularly review our actual asset allocation for each plan, and will periodically rebalance the investments in each plan to more accurately reflect the targeted allocation and/or maximize the overall long-term return when considered appropriate. The composition of our pension plan assets by fair value level at December 31, 2020 and 2021 is shown in the table below. Fair Value Measurements Quoted prices Significant other Significant in active observable unobservable Assets measured Total markets (Level 1) inputs (Level 2) inputs (Level 3) at NAV (In thousands) December 31, 2020: U.S. Equities $ 14,636 $ 2,158 $ — $ 538 $ 11,940 Fixed income 18,747 18,747 — — — Cash and other 3,877 3,052 — — 825 U.K. - Other 13,000 13,000 — — — Total $ 50,260 $ 36,957 $ — $ 538 $ 12,765 Fair Value Measurements Quoted prices Significant other Significant in active observable unobservable Assets measured Total markets (Level 1) inputs (Level 2) inputs (Level 3) at NAV (In thousands) December 31, 2021: U.S. Equities $ 12,951 $ 831 $ — $ 108 $ 12,012 Fixed income 21,299 — — — 21,299 Cash and other 2,221 1,352 — — 869 U.K. - Other 11,469 1,324 — 10,145 — Total $ 47,940 $ 3,507 $ — $ 10,253 $ 34,180 |
Other Noncurrent Liabilities
Other Noncurrent Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other noncurrent liabilities | Note 12 - Other noncurrent liabilities: December 31, 2020 2021 (In thousands) Reserve for uncertain tax positions $ 1,717 $ 1,724 OPEB 985 787 Insurance claims and expenses 653 632 Other 425 347 Total $ 3,780 $ 3,490 Our reserve for uncertain tax positions is discussed in Note 14. |
Other Operating Income (Expense
Other Operating Income (Expense) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income And Expenses [Abstract] | |
Other Operating Income (Expense) | Note 13 - Other operating income (expense): We have agreements with certain insurance carriers pursuant to which the carriers reimburse us for a portion of our past lead pigment and asbestos litigation defense costs. Insurance recoveries include amounts we received from these insurance carriers. The agreements with certain of our insurance carriers also include reimbursement for a portion of our future 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. Accordingly, these insurance recoveries are recognized when the receipt is probable and the amount is determinable. Insurance recoveries in 2019 primarily related to a single settlement we reached with one of our insurance carriers in which they agreed to reimburse us for a portion of our past and future litigation defense costs. See Note 17. Other income, net in 2019 includes a gain of $4.4 million related to a sale of excess property in the third quarter. In the fourth quarter of 2019 we sold our insurance and risk management business for proceeds of $3.25 million and recognized a gain of $3.0 million on the sale. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Note 14 - Income taxes: The provision for income taxes and the difference between such provision for income taxes and the amount that would be expected using the U.S. federal statutory income tax rate are presented below. Years ended December 31, 2019 2020 2021 (In millions) Expected tax expense, at U.S. federal statutory income tax rate of 21% $ 6.0 $ 2.9 $ 12.8 Non-taxable dividends received from Kronos (5.3) (5.3) (5.3) U.S. state income taxes and other, net (.1) (.1) — Income tax expense (benefit) $ .6 $ (2.5) $ 7.5 Components of income tax expense (benefit): Currently payable $ .2 $ — $ — Deferred income tax expense (benefit) .4 (2.5) 7.5 Income tax expense (benefit) $ .6 $ (2.5) $ 7.5 Comprehensive provision (benefit) for income taxes allocable to: Net income (loss) $ .6 $ (2.5) $ 7.5 Additional paid-in capital (.2) (.1) — Other comprehensive income (loss): Currency translation (.1) .9 (.4) Pension plans (.8) (.7) 3.2 OPEB plans — (.1) — Total $ (.5) $ (2.5) $ 10.3 In accordance with GAAP, we recognize deferred income taxes on our undistributed equity in earnings (losses) of Kronos. Because we and Kronos are part of the same U.S. federal income tax group, any dividends we receive from Kronos are nontaxable to us. Accordingly, we do not recognize and we are not required to pay income taxes on dividends from Kronos. We received aggregate dividends from Kronos of $25.4 million in each of 2019, 2020 and 2021. See Note 6. The components of the net deferred tax liability at December 31, 2020 and 2021 are summarized in the following table. December 31, 2020 2021 Assets Liabilities Assets Liabilities (In millions) Tax effect of temporary differences related to: Inventories $ .4 $ — $ .5 $ — Marketable securities — (3.6) — (7.0) Property and equipment — (2.6) — (2.7) Accrued OPEB costs .3 — .2 — Accrued pension costs .5 — .5 — Accrued employee benefits 1.1 — 1.3 — Accrued environmental liabilities 29.1 — 26.7 — Goodwill — (1.7) — (1.7) Other accrued liabilities and deductible differences — — .2 — Other taxable differences — (2.3) — (2.3) Investment in Kronos Worldwide, Inc. — (55.0) — (59.8) Adjusted gross deferred tax assets (liabilities) 31.4 (65.2) 29.4 (73.5) Netting of items by tax jurisdiction (31.4) 31.4 (29.4) 29.4 Net noncurrent deferred tax liability $ — $ (33.8) $ — $ (44.1) At December 31, 2021, we had NOL carryforwards for federal income tax purposes of approximately $26.6 million all of which have an indefinite carryforward period subject to an 80% annual usage limitation. Our deferred tax asset for such NOL carryforward is net of a portion of our uncertain tax positions as discussed below. We believe that 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. At December 31, 2019, 2020, and 2021, the gross amount of our uncertain tax positions (exclusive of the effect of interest and penalties) was $7.3 million, and there was no change in such amount during the past three years. Previously, we made certain pro-rata distributions to our stockholders in the form of Kronos common stock and we recognized a taxable gain related to such distributions. Our uncertain tax positions are attributable to such prior period distribution of Kronos common stock. As discussed in Note 1, we are part of the Contran Tax Group and we have not paid this liability because Contran has not paid the liability to the applicable tax authority. This liability would be payable by Contran to the applicable tax authority only if the shares of Kronos common stock were to be sold or otherwise disposed outside of the Contran Tax Group. At December 31, 2021, $5.6 million of our uncertain tax position is classified as a component of our noncurrent deferred tax liability. If our uncertain tax position at December 31, 2021 was recognized, a benefit of $7.3 million would affect our effective income tax rate. We currently estimate that our unrecognized tax benefits will not change materially during the next twelve months. We and Contran file income tax returns in U.S. federal and various state and local jurisdictions. Our U.S. income tax returns prior to 2018 are generally considered closed to examination by applicable tax authorities. Income tax matters related to Kronos Kronos has substantial net operating loss (NOL) carryforwards in Germany (the equivalent of $451 million for German corporate tax purposes at December 31, 2021) and in Belgium (the equivalent of $19 million for Belgian corporate tax purposes at December 31, 2021). At December 31, 2021, Kronos has concluded that no deferred income tax asset valuation allowance is required to be recognized with respect to such carryforwards, principally because (i) such carryforwards have an indefinite carryforward period, (ii) Kronos has utilized a portion of such carryforwards during the most recent three-year period and (iii) Kronos currently expects to utilize the remainder of such carryforwards over the long term. However, prior to the complete utilization of such carryforwards, if Kronos were to generate additional losses in its German or Belgian operations for an extended period of time, or if applicable law were to change such that the carryforward period was no longer indefinite, it is possible that Kronos might conclude the benefit of such carryforwards would no longer meet the more-likely-than-not recognition criteria, at which point Kronos would be required to recognize a valuation allowance against some or all of the then-remaining tax benefit associated with the carryforwards. Prior to the enactment of the 2017 Tax Act, the undistributed earnings of Kronos’ European subsidiaries were deemed to be permanently reinvested (Kronos had not made a similar determination with respect to the undistributed earnings of its Canadian subsidiary). Pursuant to the one-time repatriation tax (Transition Tax) provisions of the 2017 Tax Act which imposed a one-time repatriation tax on post-1986 undistributed earnings, Kronos recognized current income tax expense of $74.5 million and elected to pay such tax over an eight year period beginning in 2018. At December 31, 2021 the balance of its unpaid Transition Tax is $50.6 million, which will be paid in annual installments over the remainder of the eight year period. Of such $50.6 million, $44.7 million is recorded as a noncurrent payable to affiliate (income taxes payable to Valhi) classified as a noncurrent liability in its Consolidated Balance Sheet at December 31, 2021, and $5.9 million is included with its current payable to affiliate (income taxes payable to Valhi) classified as a current liability (a portion of its noncurrent income tax payable to affiliate was reclassified to its current payable to affiliate for the portion of its 2021 Transition Tax installment due within the next twelve months). In the fourth quarter of 2019, Kronos recognized an income tax benefit of $3.0 million primarily related to the favorable settlement of a prior year tax matter in Germany, with $1.5 million recognized as a current cash tax benefit and $1.5 million recognized as a non-cash deferred income tax benefit related to an increase to its German net operating loss carryforward. In addition, Kronos recognized a non-cash deferred income tax expense of $5.5 million primarily related to the revaluation of its net deferred income tax asset in Germany resulting from a decrease in the German trade tax rate. Tax authorities are examining certain of Kronos’ U.S. and non-U.S. tax returns and may propose tax deficiencies, including penalties and interest. Because of the inherent uncertainties involved in settlement initiatives and court and tax proceedings, Kronos cannot guarantee that these tax matters, if any, will be resolved in Kronos’ favor, and therefore its potential exposure, if any, is also uncertain. Kronos believes it has adequate accruals for additional taxes and related interest expense which could ultimately result from tax examinations. Kronos believes the ultimate disposition of tax examinations should not have a material adverse effect on its consolidated financial position, results of operations or liquidity. On March 27, 2020, the “Coronavirus Aid, Relief and Economic Security (CARES) Act” was signed into law in response to the COVID-19 pandemic. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, modifications to the limitation of business interest for tax years beginning in 2019 and 2020 and technical corrections to tax depreciation methods for qualified improvement property. Under the CARES Act, the modification to the business interest provisions increases the business interest limitation from 30% of adjusted taxable income to 50% of adjusted taxable income which increases Kronos’ allowable interest expense deduction for 2019 and 2020. Consequently, in the first quarter of 2020 Kronos recognized a cash tax benefit of $.5 million related to the reversal of the valuation allowance recognized in 2019 for the portion of the disallowed interest expense Kronos did not expect to fully utilize at December 31, 2019 and Kronos has considered such modifications in its 2020 provision for income taxes. With the expiration of these CARES Act provisions at the end of 2020, Kronos recognized an increase in disallowed interest expense and an increase in the valuation allowance of $2.8 million for the portion of the carryforward Kronos believes does not meet the more-likely-than-not measurement criteria in 2021. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders Equity Note [Abstract] | |
Stockholders' equity | Note 15 - Stockholders’ equity: Long-term incentive compensation plan Long-term incentive compensation plans of subsidiaries and affiliates shares Dividends Accumulated other comprehensive loss Years ended December 31, 2019 2020 2021 (In thousands) Accumulated other comprehensive loss, net of tax: Currency translation: Balance at beginning of period $ (172,434) $ (172,843) $ (169,575) Other comprehensive income (loss) (409) 3,268 (1,660) Balance at end of period $ (172,843) $ (169,575) $ (171,235) Defined benefit pension plans: Balance at beginning of period $ (75,286) $ (78,257) $ (80,704) Other comprehensive income (loss): Amortization of prior service cost and net losses included in net 3,539 4,330 4,813 Net actuarial gain (loss) arising during the year (6,510) (6,777) 7,423 Balance at end of period $ (78,257) $ (80,704) $ (68,468) OPEB plans: Balance at beginning of period $ (550) $ (590) $ (910) Other comprehensive loss - amortization of net (40) (320) (143) Balance at end of period $ (590) $ (910) $ (1,053) Total accumulated other comprehensive loss: Balance at beginning of period $ (248,270) $ (251,690) $ (251,189) Other comprehensive income (loss) (3,420) 501 10,433 Balance at end of period $ (251,690) $ (251,189) $ (240,756) See Note 5 for further discussion on our marketable securities and see Note 11 for amounts related to our defined benefit pension plans. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related party transactions | Note 16 - Related party transactions: We may be deemed to be controlled by Ms. Simmons and the Family Trust. See Note 1. Corporations that may be deemed to be controlled by or affiliated with such individuals sometimes engage in (a) intercorporate transactions such as guarantees, management and expense sharing arrangements, shared fee arrangements, joint ventures, partnerships, loans, options, advances of funds on open account, and sales, leases and exchanges of assets, including securities issued by both related and unrelated parties and (b) common investment and acquisition strategies, business combinations, reorganizations, recapitalizations, securities repurchases, and purchases and sales (and other acquisitions and dispositions) of subsidiaries, divisions or other business units, which transactions have involved both related and unrelated parties and have included transactions which resulted in the acquisition by one related party of a publicly-held noncontrolling interest in another related party. While no transactions of the type described above are planned or proposed with respect to us other than as set forth in these financial statements, we continuously consider, review and evaluate, and understand that Contran and related entities consider, review and evaluate such transactions. Depending upon the business, tax and other objectives then relevant, it is possible that we might be a party to one or more such transactions in the future. Current receivables and payables to affiliates are summarized in the table below: December 31, 2020 2021 (In thousands) Current receivables from affiliates: Other - trade items $ 313 $ — Current payables to affiliates: Other - trade items $ 696 $ 682 Income taxes payable to Valhi 29 9 Total $ 725 $ 691 From time to time, we may have loans and advances outstanding between us and various related parties, pursuant to term and demand notes. We generally enter into these loans and advances for cash management purposes. When we loan funds to related parties, we are generally able to earn a higher rate of return on the loan than the lender would earn if the funds were invested in other instruments and when we borrow from related parties, we are generally able to pay a lower rate of interest than we would pay if we borrowed from unrelated parties. While certain of such loans may be of a lesser credit quality than cash equivalent instruments otherwise available to us, we believe that we have evaluated the credit risks involved and reflected those credit risks in the terms of the applicable loans. On November 14, 2016, NLKW entered into the Valhi Credit Facility whereby we could borrow up to $50 million. NLKW had borrowings outstanding of $.5 million as of December 31, 2020 and 2021 under the Valhi Credit Facility, and we incurred a nominal amount of interest expense under such credit facility for the years ended December 31, 2019, 2020 and 2021. See Note 10. In addition prior to 2019, CompX entered into an unsecured revolving demand promissory note with Valhi under which, as amended, CompX has agreed to loan Valhi up to $30 million. CompX’s loan to Valhi, as amended, bears interest at prime plus 1.00%, payable quarterly, with all principal due on demand, but in any event no earlier than December 31, 2023. Loans made to Valhi at any time are at CompX’s discretion. At December 31, 2020 and 2021, the outstanding principal balance receivable from Valhi under the promissory note was $29.5 million and $18.7 million, respectively. Interest income (including unused commitment fees) on CompX’s loan to Valhi was $2.4 million in 2019, $1.5 million in 2020 and $1.2 million in 2021. Under the terms of various intercorporate services agreements (ISAs) we enter into with Contran, employees of Contran will provide certain management, tax planning, financial and administrative services to the Company on a fee basis. Such fees are based on the compensation of individual Contran employees providing services for us and/or estimates of time devoted to our affairs by such persons. Because of the number of companies affiliated with Contran, we believe we benefit from cost savings and economies of scale gained by not having certain management, financial and administrative staffs duplicated at each entity, thus allowing certain Contran employees to provide services to multiple companies but only be compensated by Contran. We, CompX and Kronos negotiate fees annually and agreements renew quarterly. The net ISA fees charged to us by Contran, (including amounts attributable to Kronos for all periods) aggregated approximately $36.1 million in 2019, $33.4 million in 2020 and $33.2 million in 2021. Contran and certain of its subsidiaries and affiliates, including us, purchase certain of their insurance policies as a group, with the costs of the jointly-owned policies being apportioned among the participating companies. Tall Pines Insurance Company, a subsidiary of Valhi, underwrites certain insurance policies for Contran and certain of its subsidiaries and affiliates, including us. Tall Pines purchases reinsurance from third-party insurance carriers with an A.M. Best Company rating of generally at least A- (excellent) for substantially all of the risks it underwrites. EWI RE, Inc., a subsidiary of ours and Valhi, brokered certain of our insurance policies, provided claims and risk management services and, where appropriate, engaged certain third-party risk management consultants prior to our sale of EWI’s insurance and risk management business to a third party in November 2019. Consistent with insurance industry practices, Tall Pines receives commissions from reinsurance underwriters and/or assesses fees for certain of the policies that it underwrites, and prior to November 2019 EWI received commissions from the insurance and reinsurance underwriters for the policies that it brokered. The aggregate amount we paid under the group insurance program (including amounts attributable to Kronos for all periods, including its Louisiana Pigment Company joint venture) was $14.9 million through the date of the sale in 2019. This amount principally represents insurance premiums paid to Tall Pines or EWI, including amounts paid to EWI that EWI then remitted, net of brokerage commissions, to insurers. Following the sale of EWI’s insurance and risk management business, Contran engaged the third-party insurance broker that purchased the business to provide many of the services previously provided by EWI, and we continue to utilize Tall Pines to underwrite certain insurance risks. During 2020 and 2021, we paid $22.2 million and $26.3 million, respectively, under the group insurance program (including amounts attributable to Kronos for all periods, including its Louisiana Pigment Company joint venture) which amounts principally represent insurance premiums, including $15.6 million and $19.5 million in 2020 and 2021, respectively, for policies written by Tall Pines. Amounts paid under the group insurance program also include payments to insurers or reinsurers (which prior to the sale were made through EWI) for the reimbursement of claims within our applicable deductible or retention ranges that such insurers and reinsurers paid to third parties on our behalf, as well as amounts for claims and risk management services and various other third-party fees and expenses incurred by the program. We expect these relationships will continue in 2022. With respect to certain of such jointly-owned policies, it is possible that unusually large losses incurred by one or more insured party during a given policy period could leave the other participating companies without adequate coverage under that policy for the balance of the policy period. As a result, and in the event that the available coverage under a particular policy would become exhausted by one or more claims, Contran and certain of its subsidiaries and affiliates, including us, have entered into a loss sharing agreement under which any uninsured loss arising because the available coverage had been exhausted by one or more claims will be shared ratably by those entities that had submitted claims under the relevant policy. We believe the benefits in the form of reduced premiums and broader coverage associated with the group coverage for such policies justifies the risk associated with the potential for any uninsured loss. Contran and certain of its subsidiaries, including us, participate in a combined information technology data recovery program that Contran provides from a data recovery center that it established. Pursuant to the program, Contran and certain of its subsidiaries, including us, as a group share information technology data recovery services. The program apportions its costs among the participating companies. The aggregate amount Kronos paid to Contran for such services was $.2 million in 2019 and $.3 million in both 2020 and 2021. Under the terms of a sublease agreement between Contran and Kronos, Kronos leases certain office space from Contran. Kronos paid Contran $.1 million in 2019 and $.4 million in both 2020 and 2021 for such rent and related ancillary services. We expect that these relationships with Contran will continue in 2022. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Note 17 - Commitments and contingencies: Lead pigment litigation Our former operations included the manufacture of lead pigments for use in paint and lead-based paint. We, 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 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, California public nuisance case discussed below, we do not believe it is probable 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, other than with respect to the Santa Clara case discussed below, we believe liability to us that may result, if any, in this regard cannot be reasonably estimated, because: ● we have 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 (other than the Santa Clara case discussed below) , ● no final, non-appealable adverse judgments have ever been entered against us, and ● we have never ultimately been found liable with respect to any such litigation matters, including over 100 cases over a thirty-year period for which we were previously a party and for which we have been dismissed without any finding of liability. Accordingly, other than with respect to the Santa Clara case discussed below, 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. In addition, 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 the matter titled County of Santa Clara v. Atlantic Richfield Company, et al Under the terms of the global settlement agreement, each defendant must pay an aggregate $101.7 million to the plaintiffs as follows: $25.0 million within sixty days of the court’s approval of the settlement and dismissal of the case, and the remaining $76.7 million in six annual installments beginning on the first anniversary of the initial payment ($12.0 million for the first be paid by us (and any amounts on deposit in excess of the final payment would be returned to us). Pursuant to the settlement agreement, also during the third quarter of 2019 we placed an additional $9.0 million into an escrow account which is included in noncurrent restricted cash on our Consolidated Balance Sheets. As previously disclosed during the second quarter of 2018 and based on the terms of a May 2018 settlement agreement between us and the plaintiffs which had an aggregate cost of $80 million to us, we determined that the loss to us could be reasonably estimated and recognized a net $62 million pre-tax charge with respect to this matter ($45 million for the amount to be paid by us upon approval of the terms of the settlement and $17 million for the net present value of the five payments aggregating $20 million to be paid by us in installments beginning four years from such approval). The May 2018 settlement was never approved by the court and was superseded in July 2019 by the global settlement agreement discussed above. At June 30, 2019, based on the terms of the global settlement agreement approved by the court in July 2019 we increased the amount accrued for the litigation settlement and a final immaterial adjustment was made to the litigation settlement accrual in the third quarter of 2019. For financial reporting purposes, using a discount rate of 1.9% per annum, we discounted the aggregate $101.7 million settlement to the estimated net present value of $96.3 million. We recognized litigation settlement expense of $19.3 million ($19.6 million expense in the second quarter of 2019 and $.3 million credit in the third quarter of 2019). We made the initial $25.0 million payment in September 2019 and the first and second annual installment payments of $12.0 million each in September 2020 and 2021. We recognized an aggregate of $.6 million in accretion expense in the second half of 2019 and an aggregate of $1.3 million and $1.1 million in 2020 and 2021, respectively. New cases may continue to be filed against us. 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. 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 all of our facilities are in substantial compliance with applicable environmental laws. Certain properties and facilities used in our 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. Actual costs could exceed accrued amounts or the upper end of the range for sites for which estimates have been made, and costs may 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, 2020 and December 31, 2021, we had not recognized any receivables for recoveries. 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 past three years. The amount charged to expense is included in corporate expense on our Consolidated Statements of Income. Years ended December 31, 2019 2020 2021 (In thousands) Balance at the beginning of the period $ 98,211 $ 94,508 $ 93,416 Additions charged (credited) to expense, net (579) 82 788 Payments, net (3,124) (1,174) (1,264) Balance at the end of the year $ 94,508 $ 93,416 $ 92,940 Amounts recognized in the balance sheet: Current liability $ 3,065 $ 2,027 $ 2,643 Noncurrent liability 91,443 91,389 90,297 Balance at the end of the period $ 94,508 $ 93,416 $ 92,940 On a quarterly basis, we evaluate the potential range of our liability for environmental remediation and related costs at sites where we have been named as a PRP or defendant, including sites for which our wholly-owned environmental management subsidiary, NL Environmental Management Services, Inc., (EMS), has contractually assumed our obligations. At December 31, 2021, we had accrued approximately $93 million related to approximately 32 sites associated with remediation and related matters we believe are at the present time and/or in their current phase reasonably estimable. The upper end of the range of reasonably possible costs to us for remediation and related matters for which we believe it is possible to estimate costs is approximately $118 million, including the amount currently accrued. These accruals have not been discounted to present value. We believe it is not reasonably possible to estimate the range of costs for certain sites. At December 31, 2021, there were approximately five sites for which we are not currently able to reasonably estimate a range of costs. For these sites, generally the investigation is in the early stages, and we are unable to determine whether or not we actually had any association with the site, the nature of our responsibility, if any, for the contamination at the site, if any, 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, we have received general and special notices of liability from the EPA and/or state agencies alleging that we, 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 we, 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. 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. Other litigation In addition to the litigation described above, we and our affiliates are also involved in various other environmental, contractual, product liability, patent (or intellectual property), employment and other claims and disputes incidental to present and former businesses. In certain cases, we have insurance coverage for these items, although we do not expect additional material insurance coverage for environmental matters. We currently believe the disposition of all of these various other claims and disputes (including asbestos-related claims), individually and 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. Concentrations of credit risk Component products are sold primarily in North America to original equipment manufacturers. The ten largest customers related to our Component Products operations accounted for approximately 47% of total sales in 2019, 48% in 2020 and 51% in 2021. One customer of CompX’s Security Products business accounted for 14% of total sales in 2019, 17% in 2020 and 16% in 2021. Income taxes We are a party to a tax sharing agreement with Contran and Valhi providing for the allocation of tax liabilities and tax payments as described in Note 1. Under applicable law, we, as well as every other member of the Contran Tax Group, are each jointly and severally liable for the aggregate federal income tax liability of Contran and the other companies included in the Contran Tax Group for all periods in which we are included in the Contran Tax Group. Valhi has agreed, however, to indemnify us for any liability for income taxes of the Contran Tax Group in excess of our tax liability computed in accordance with the tax sharing agreement. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial instruments | Note 18 - Financial instruments: See Note 5 for information on how we determine fair value of our marketable securities. The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure as of December 31, 2020 and 2021: December 31, 2020 December 31, 2021 Carrying Fair Carrying Fair amount value amount value (In thousands) Cash, cash equivalents and restricted cash $ 165,272 $ 165,272 $ 175,242 $ 175,242 Due to their near-term maturities, the carrying amounts of accounts receivable and accounts payable are considered equivalent to fair value. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of our business | Nature of our business - |
Organization | Organization Unless otherwise indicated, references in this report to “we,” “us” or “our” refer to NL Industries, Inc. and its subsidiaries and affiliate, Kronos, taken as a whole. |
Management's estimates | Management’s estimates |
Principles of consolidation | Principles of consolidation |
Currency translation | Currency translation |
Cash and cash equivalents | C ash and cash equivalents |
Restricted cash and cash equivalents | Restricted cash and cash equivalents a recognized liability, we classify such restricted amount as either a current or noncurrent asset to correspond with the classification of the liability. To the extent the restricted amount does not relate to a recognized liability, we classify restricted cash as a current asset. Restricted cash equivalents classified as a current asset or a noncurrent asset are presented separately on our Consolidated Balance Sheets. |
Marketable securities and securities transactions | Marketable securities and securities transactions Fair Value Measurements and Disclosures ● Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; ● Level 2 - Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the assets or liability; and ● Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable. We classify all of our marketable securities as available-for-sale. Unrealized gains or losses on the securities are recognized in Marketable equity securities on our Consolidated Statements of Income. We base realized gains and losses upon the specific identification of the securities sold. See Notes 5 and 11. |
Accounts receivable | Accounts receivable |
Inventories and cost of sales | Inventories and cost of sales |
Investment in Kronos Worldwide, Inc. | Investment in Kronos Worldwide, Inc. |
Goodwill | Goodwill |
Leases | Leases Leases |
Property and equipment; depreciation expense | Property and equipment; depreciation expense We perform impairment tests when events or changes in circumstances indicate the carrying value may not be recoverable. We consider all relevant factors. We perform impairment tests by comparing the estimated future undiscounted cash flows associated with the asset to the asset’s net carrying value to determine whether impairment exists. |
Employee benefit plans | Employee benefit plans |
Income taxes | Income taxes We recognize deferred income tax assets and liabilities for the expected future tax consequences of temporary differences between the income tax and financial reporting carrying amounts of assets and liabilities, including investments in our subsidiaries and affiliates who are not members of the Contran Tax Group and undistributed earnings of non-U.S. subsidiaries which are not deemed to be permanently reinvested. In addition, 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 recognition of such deferred income taxes is not available to us. Deferred income tax assets and liabilities for each tax-paying jurisdiction in which we operate are netted and presented as either a noncurrent deferred income tax asset or liability, as applicable. We periodically evaluate our deferred tax assets in the various taxing jurisdictions in which we operate and adjust any related valuation allowance based on the estimate of the amount of such deferred tax assets that we believe does not meet the more-likely-than-not recognition criteria. We account for the tax effects of a change in tax law as a component of the income tax provision related to continuing operations in the period of enactment, including the tax effects of any deferred income taxes originally established through a financial statement component other than continuing operations (i.e. other comprehensive income). Changes in applicable income tax rates over time as a result of changes in tax law, or times in which a deferred income tax asset valuation allowance is initially recognized in one year and subsequently reversed in a later year, can give rise to “stranded” tax effects in accumulated other comprehensive income in which the net accumulated income tax (benefit) remaining in accumulated other comprehensive income does not correspond to the then-applicable income tax rate applied to the pre-tax amount which resides in accumulated other comprehensive income. As permitted by GAAP, our accounting policy is to remove any such stranded tax effect remaining in accumulated other comprehensive income, by recognizing an offset to our provision for income taxes related to continuing operations, only at the time when there is no remaining pre-tax amount in accumulated other comprehensive income. For accumulated other comprehensive income related to currency translation, this would occur only upon the sale or complete liquidation of one of our non-U.S. subsidiaries. For defined pension benefit plans and OPEB plans, this would occur whenever one of our subsidiaries which previously sponsored a defined benefit pension or OPEB plan had terminated such a plan and had no future obligation or plan asset associated with such a plan. We record a reserve for uncertain tax positions for tax positions where we believe it is more-likely-than-not our position will not prevail with the applicable tax authorities. The amount of the benefit associated with our uncertain tax positions that we recognize is limited to the largest amount for which we believe the likelihood of realization is greater than 50%. We accrue penalties and interest on the difference between tax positions taken on our tax returns and the amount of benefit recognized for financial reporting purposes. We classify our reserves for uncertain tax positions in a separate current or noncurrent liability, depending on the nature of the tax position. See Note 14. |
Environmental remediation costs | Environmental remediation costs |
Net sales | Net sales Revenue from Contracts with Customers (ASC 606), Revenue is recorded in an amount that reflects the net consideration we expect to receive in exchange for our products. Prices for our products are based on terms specified in published list prices and purchase orders, which generally do not include financing components, noncash consideration or consideration paid to our customers. As our standard payment terms are less than one year, we have elected the practical expedient under ASC 606 and we have not assessed whether a contract has a significant financing component. We state sales net of price, early payment and distributor discounts as well as volume rebates (collectively, variable consideration). Variable consideration, to the extent present, is not material and is recognized as the amount to which we are most-likely to be entitled, using all information (historical, current and forecasted) that is reasonably available to us, and only to the extent that a significant reversal in the amount of the cumulative revenue recognized is not probable of occurring in a future period. Differences, if any, between estimates of the amount of variable consideration to which we will be entitled and the actual amount of such variable consideration have not been material in the past. We report any tax assessed by a governmental authority that we collect from our customers that is both imposed on and concurrent with our revenue-producing activities (such as sales, use, value added and excise taxes) on a net basis (meaning we do not recognize these taxes either in our revenues or in our costs and expenses). Frequently, we receive orders for products to be delivered over dates that may extend across reporting periods. We invoice for each delivery upon shipment and recognize revenue for each distinct shipment when all sales recognition criteria for that shipment have been satisfied. As scheduled delivery dates for these orders are within a one year period, under the optional exemption provided by ASC 606, we do not disclose sales allocated to future shipments of partially completed contracts. |
Selling, general and administrative expenses; advertising costs; research and development costs | Selling, general and administrative expenses; advertising costs; research and development costs entertainment, promotional materials and professional fees. We expense advertising costs and research and development costs as incurred. Advertising and research and development costs were not significant in any year presented. |
Corporate expenses | Corporate expenses |
Business and Geographic Infor_2
Business and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segments Geographical Areas [Abstract] | |
Schedule of Disaggregates Net Sales By Reporting Unit | Years ended December 31, 2019 2020 2021 (In thousands) Net sales: Security Products $ 99,328 $ 87,863 $ 105,124 Marine Components 24,915 26,674 35,691 Total $ 124,243 $ 114,537 $ 140,815 |
Geographical Information Attributable to Net Sales | Years ended December 31, 2019 2020 2021 (In thousands) Net sales - point of destination: United States $ 114,186 $ 107,712 $ 129,160 Canada 7,257 4,423 8,061 Mexico 922 431 589 Other 1,878 1,971 3,005 Total $ 124,243 $ 114,537 $ 140,815 |
Accounts and Other Receivable_2
Accounts and Other Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts Notes Loans and Financing Receivable | December 31, 2020 2021 (In thousands) Trade receivables - CompX $ 10,801 $ 15,616 Accrued insurance recoveries 18 43 Other receivables 393 20 Allowance for doubtful accounts (70) (70) Total $ 11,142 $ 15,609 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | December 31, 2020 2021 (In thousands) Raw materials $ 3,220 $ 5,042 Work in process 11,668 16,767 Finished products 3,449 3,833 Total $ 18,337 $ 25,642 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Marketable Securities | Fair value measurement Market Cost Unrealized level value basis gain (loss) (In thousands) December 31, 2020 Noncurrent assets Valhi common stock 1 $ 18,206 $ 24,347 $ (6,141) December 31, 2021 Noncurrent assets Valhi common stock 1 $ 34,435 $ 24,347 $ 10,088 |
Investment in Kronos Worldwid_2
Investment in Kronos Worldwide, Inc. (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Changes in Carrying Value of Investment | Years ended December 31, 2019 2020 2021 (In millions) Balance at the beginning of the period $ 255.5 $ 248.4 $ 242.4 Equity in earnings of Kronos 26.5 19.4 34.3 Dividends received from Kronos (25.4) (25.4) (25.4) Equity in Kronos' other comprehensive income (loss): Currency translation (.5) 4.1 (2.1) Defined benefit pension plans (6.7) (3.7) 15.6 Other postretirement benefit plans (.1) (.1) — Other (.9) (.3) — Balance at the end of the year $ 248.4 $ 242.4 $ 264.8 |
Selected Financial Information of Kronos Balance Sheet | December 31, 2020 2021 (In millions) Current assets $ 1,218.3 $ 1,258.0 Property and equipment, net 524.6 503.4 Investment in TiO 2 103.3 101.9 Other noncurrent assets 190.5 149.5 Total assets $ 2,036.7 $ 2,012.8 Current liabilities $ 260.2 $ 288.8 Long-term debt 486.7 449.8 Accrued pension costs 372.6 287.4 Other noncurrent liabilities 120.7 116.6 Stockholders’ equity 796.5 870.2 Total liabilities and stockholders’ equity $ 2,036.7 $ 2,012.8 |
Selected Financial Information of Kronos Income Statement | Years ended December 31, 2019 2020 2021 (In millions) Net sales $ 1,731.1 $ 1,638.8 $ 1,939.4 Cost of sales 1,344.9 1,287.6 1,493.2 Income from operations 145.8 116.2 187.1 Income tax expense 34.0 16.1 40.5 Net income 87.1 63.9 112.9 |
Other Assets, Net (Tables)
Other Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Other Assets, Net | December 31, 2020 2021 (In thousands) Pension asset $ 3,881 $ 1,356 Other 1,381 1,397 Total $ 5,262 $ 2,753 |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued and Other Current Liabilities | December 31, 2020 2021 (In thousands) Employee benefits $ 9,000 $ 10,345 Other 1,253 1,672 Total $ 10,253 $ 12,017 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) - Defined Benefit Pension Plans | 12 Months Ended |
Dec. 31, 2021 | |
Expected Benefit Payments | Years ending December 31, Amount (In thousands) 2022 $ 3,689 2023 3,647 2024 3,570 2025 3,493 2026 3,435 Next 5 years 15,885 |
Funded Status of Defined Benefit Plans | December 31, 2020 2021 (In thousands) Change in projected benefit obligations (PBO): Benefit obligations at beginning of the year $ 50,350 $ 52,873 Interest cost 1,483 947 Actuarial losses 4,353 295 Change in currency exchange rates 307 (73) Benefits paid (3,620) (3,675) Benefit obligations at end of the year 52,873 50,367 Change in plan assets: Fair value of plan assets at beginning of the year 46,313 50,260 Actual return on plan assets 5,308 226 Employer contributions 1,841 1,169 Change in currency exchange rates 418 (40) Benefits paid (3,620) (3,675) Fair value of plan assets at end of year 50,260 47,940 Funded status $ (2,613) $ (2,427) Amounts recognized in the balance sheet: Noncurrent pension asset $ 3,881 $ 1,356 Accrued pension costs: Current (102) (61) Noncurrent (6,392) (3,722) Total (2,613) (2,427) Accumulated other comprehensive loss - 28,209 28,265 Total $ 25,596 $ 25,838 Accumulated benefit obligations (ABO) $ 52,873 $ 50,367 |
Changes in Other Comprehensive Income (Loss) | Years ended December 31, 2019 2020 2021 (In thousands) Changes in plan assets and benefit obligations recognized in Net actuarial gain (loss) arising during the year $ 1,330 $ (934) $ 1,618 Amortization of unrecognized net actuarial gain (loss) 1,584 1,412 (1,562) Total $ 2,914 $ 478 $ 56 |
Components of Net Periodic Defined Benefit Cost (Income) | Years ended December 31, 2019 2020 2021 (In thousands) Net periodic pension cost: Interest cost on PBO $ 1,884 $ 1,483 $ 947 Expected return on plan assets (1,899) (1,850) (1,603) Recognized actuarial losses 1,584 1,412 1,562 Total $ 1,569 $ 1,045 $ 906 |
Information Concerning Defined Benefit Pension Plans (Including Certain Plans for Which ABO Exceeds Fair Value of Plan Assets) | December 31, 2020 2021 (In thousands) PBO at end of the year: U.S. plan $ 43,754 $ 40,254 U.K. plan 9,119 10,113 Total $ 52,873 $ 50,367 Fair value of plan assets at end of the year: U.S. plan $ 37,260 $ 36,471 U.K. plan 13,000 11,469 Total $ 50,260 $ 47,940 Plans for which the ABO exceeds plan assets (only our U.S. plan): PBO $ 43,754 $ 40,254 ABO 43,754 40,254 Fair value of plan assets 37,260 36,471 |
Summary of Assumptions Used to Determine Net Benefit Obligation | Years ended December 31, Rate 2019 2020 2021 Discount rate 3.9 % 2.9 % 2.1 % Long-term rate of return on plan assets 4.7 % 4.2 % 3.3 % |
Schedule of composition of our pension plan assets by fair value level | Fair Value Measurements Quoted prices Significant other Significant in active observable unobservable Assets measured Total markets (Level 1) inputs (Level 2) inputs (Level 3) at NAV (In thousands) December 31, 2020: U.S. Equities $ 14,636 $ 2,158 $ — $ 538 $ 11,940 Fixed income 18,747 18,747 — — — Cash and other 3,877 3,052 — — 825 U.K. - Other 13,000 13,000 — — — Total $ 50,260 $ 36,957 $ — $ 538 $ 12,765 Fair Value Measurements Quoted prices Significant other Significant in active observable unobservable Assets measured Total markets (Level 1) inputs (Level 2) inputs (Level 3) at NAV (In thousands) December 31, 2021: U.S. Equities $ 12,951 $ 831 $ — $ 108 $ 12,012 Fixed income 21,299 — — — 21,299 Cash and other 2,221 1,352 — — 869 U.K. - Other 11,469 1,324 — 10,145 — Total $ 47,940 $ 3,507 $ — $ 10,253 $ 34,180 |
Other Noncurrent Liabilities (T
Other Noncurrent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Noncurrent Liabilities | December 31, 2020 2021 (In thousands) Reserve for uncertain tax positions $ 1,717 $ 1,724 OPEB 985 787 Insurance claims and expenses 653 632 Other 425 347 Total $ 3,780 $ 3,490 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Component of Income Taxes | Years ended December 31, 2019 2020 2021 (In millions) Expected tax expense, at U.S. federal statutory income tax rate of 21% $ 6.0 $ 2.9 $ 12.8 Non-taxable dividends received from Kronos (5.3) (5.3) (5.3) U.S. state income taxes and other, net (.1) (.1) — Income tax expense (benefit) $ .6 $ (2.5) $ 7.5 Components of income tax expense (benefit): Currently payable $ .2 $ — $ — Deferred income tax expense (benefit) .4 (2.5) 7.5 Income tax expense (benefit) $ .6 $ (2.5) $ 7.5 Comprehensive provision (benefit) for income taxes allocable to: Net income (loss) $ .6 $ (2.5) $ 7.5 Additional paid-in capital (.2) (.1) — Other comprehensive income (loss): Currency translation (.1) .9 (.4) Pension plans (.8) (.7) 3.2 OPEB plans — (.1) — Total $ (.5) $ (2.5) $ 10.3 |
Components of Net Deferred Tax Liability | December 31, 2020 2021 Assets Liabilities Assets Liabilities (In millions) Tax effect of temporary differences related to: Inventories $ .4 $ — $ .5 $ — Marketable securities — (3.6) — (7.0) Property and equipment — (2.6) — (2.7) Accrued OPEB costs .3 — .2 — Accrued pension costs .5 — .5 — Accrued employee benefits 1.1 — 1.3 — Accrued environmental liabilities 29.1 — 26.7 — Goodwill — (1.7) — (1.7) Other accrued liabilities and deductible differences — — .2 — Other taxable differences — (2.3) — (2.3) Investment in Kronos Worldwide, Inc. — (55.0) — (59.8) Adjusted gross deferred tax assets (liabilities) 31.4 (65.2) 29.4 (73.5) Netting of items by tax jurisdiction (31.4) 31.4 (29.4) 29.4 Net noncurrent deferred tax liability $ — $ (33.8) $ — $ (44.1) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders Equity Note [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss | Years ended December 31, 2019 2020 2021 (In thousands) Accumulated other comprehensive loss, net of tax: Currency translation: Balance at beginning of period $ (172,434) $ (172,843) $ (169,575) Other comprehensive income (loss) (409) 3,268 (1,660) Balance at end of period $ (172,843) $ (169,575) $ (171,235) Defined benefit pension plans: Balance at beginning of period $ (75,286) $ (78,257) $ (80,704) Other comprehensive income (loss): Amortization of prior service cost and net losses included in net 3,539 4,330 4,813 Net actuarial gain (loss) arising during the year (6,510) (6,777) 7,423 Balance at end of period $ (78,257) $ (80,704) $ (68,468) OPEB plans: Balance at beginning of period $ (550) $ (590) $ (910) Other comprehensive loss - amortization of net (40) (320) (143) Balance at end of period $ (590) $ (910) $ (1,053) Total accumulated other comprehensive loss: Balance at beginning of period $ (248,270) $ (251,690) $ (251,189) Other comprehensive income (loss) (3,420) 501 10,433 Balance at end of period $ (251,690) $ (251,189) $ (240,756) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Current Receivables and Payables to Affiliates | December 31, 2020 2021 (In thousands) Current receivables from affiliates: Other - trade items $ 313 $ — Current payables to affiliates: Other - trade items $ 696 $ 682 Income taxes payable to Valhi 29 9 Total $ 725 $ 691 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Changes in Accrued Environmental Remediation and Related Costs | Years ended December 31, 2019 2020 2021 (In thousands) Balance at the beginning of the period $ 98,211 $ 94,508 $ 93,416 Additions charged (credited) to expense, net (579) 82 788 Payments, net (3,124) (1,174) (1,264) Balance at the end of the year $ 94,508 $ 93,416 $ 92,940 Amounts recognized in the balance sheet: Current liability $ 3,065 $ 2,027 $ 2,643 Noncurrent liability 91,443 91,389 90,297 Balance at the end of the period $ 94,508 $ 93,416 $ 92,940 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of 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 as of December 31, 2020 and 2021: December 31, 2020 December 31, 2021 Carrying Fair Carrying Fair amount value amount value (In thousands) Cash, cash equivalents and restricted cash $ 165,272 $ 165,272 $ 175,242 $ 175,242 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Significant Accounting Policies [Line Items] | |||
Received net refunds for income taxes | $ 0 | $ 0 | $ 200,000 |
Uncertain tax positions | 50.00% | ||
Advertising costs | $ 0 | 0 | 0 |
Research, development and certain sales technical support costs | 0 | 0 | $ 0 |
Environmental Remediation Litigation | |||
Significant Accounting Policies [Line Items] | |||
Recoveries receivable | $ 0 | $ 0 | |
Minimum | Building | |||
Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful lives | 15 years | ||
Minimum | Equipment and Software | |||
Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful lives | 3 years | ||
Maximum | Building | |||
Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful lives | 40 years | ||
Maximum | Equipment and Software | |||
Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful lives | 20 years | ||
Kronos | |||
Significant Accounting Policies [Line Items] | |||
Parent company ownership interest | 30.00% | ||
CompX | |||
Significant Accounting Policies [Line Items] | |||
Percentage of controlling interest owned | 13.00% | ||
Parent Company | Valhi Inc | |||
Significant Accounting Policies [Line Items] | |||
Parent company ownership interest | 83.00% | ||
Parent Company | Valhi Inc | Contran Corporation | |||
Significant Accounting Policies [Line Items] | |||
Parent company ownership interest | 92.00% |
Business and Geographic Infor_3
Business and Geographic Information - Schedule of Disaggregates Net Sales By Reporting Unit (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |||
Total net sales | $ 140,815 | $ 114,537 | $ 124,243 |
Security Products | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 105,124 | 87,863 | 99,328 |
Marine Components | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | $ 35,691 | $ 26,674 | $ 24,915 |
Business and Geographic Infor_4
Business and Geographic Information - Geographical Information Attributable to Net Sales (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | $ 140,815 | $ 114,537 | $ 124,243 |
Point of destination | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 140,815 | 114,537 | 124,243 |
United States | Point of destination | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 129,160 | 107,712 | 114,186 |
Canada | Point of destination | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 8,061 | 4,423 | 7,257 |
Mexico | Point of destination | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 589 | 431 | 922 |
Other. | Point of destination | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | $ 3,005 | $ 1,971 | $ 1,878 |
Accounts and Other Receivable_3
Accounts and Other Receivables, Net - Schedule of Accounts Notes Loans and Financing Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts Notes And Loans Receivable [Line Items] | ||
Accrued insurance recoveries | $ 43 | $ 18 |
Other receivables | 20 | 393 |
Total | 15,609 | 11,142 |
CompX | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Trade receivables | 15,616 | 10,801 |
Allowance for doubtful accounts | $ (70) | $ (70) |
Inventories, Net - Schedule of
Inventories, Net - Schedule of Inventories, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 5,042 | $ 3,220 |
Work in process | 16,767 | 11,668 |
Finished products | 3,833 | 3,449 |
Total | $ 25,642 | $ 18,337 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Marketable Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Market value | $ 34,435 | $ 18,206 |
Level 1 | Valhi Inc | Common stock | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Market value | 34,435 | 18,206 |
Cost basis | 24,347 | 24,347 |
Unrealized gain (loss) | $ 10,088 | $ (6,141) |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - Valhi Inc - Common stock - $ / shares shares in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Number of shares owned | 1.2 | 1.2 |
Quoted marked price per share | $ 28.75 | $ 15.20 |
Investment in Kronos Worldwid_3
Investment in Kronos Worldwide, Inc. - Additional Information (Detail) - Kronos - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Equity Method Investments [Line Items] | ||
Number of shares owned | 35.2 | 35.2 |
Aggregate market value | $ 528.6 | $ 525.1 |
Quoted market price per share | $ 15.01 | $ 14.91 |
Investment in Kronos Worldwid_4
Investment in Kronos Worldwide, Inc. - Changes in Carrying Value of Investment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Balance at the beginning of the year | $ 242,374 | ||
Equity in earnings of Kronos Worldwide, Inc. | 34,323 | $ 19,437 | $ 26,470 |
Dividends received from Kronos | (25,356) | (25,356) | (25,356) |
Equity in Kronos' other comprehensive income (loss): | |||
Balance at the end of the year | 264,803 | 242,374 | |
Defined Benefit Pension Plans | |||
Equity in Kronos' other comprehensive income (loss): | |||
Defined benefit pension plans/ Other postretirement benefit plans | 56 | 478 | 2,914 |
Kronos | |||
Balance at the beginning of the year | 242,400 | 248,400 | 255,500 |
Equity in earnings of Kronos Worldwide, Inc. | 34,300 | 19,400 | 26,500 |
Dividends received from Kronos | (25,400) | (25,400) | (25,400) |
Equity in Kronos' other comprehensive income (loss): | |||
Currency translation | (2,100) | 4,100 | (500) |
Other | (300) | (900) | |
Balance at the end of the year | 264,800 | 242,400 | 248,400 |
Kronos | Defined Benefit Pension Plans | |||
Equity in Kronos' other comprehensive income (loss): | |||
Defined benefit pension plans/ Other postretirement benefit plans | $ 15,600 | (3,700) | (6,700) |
Kronos | OPEB | |||
Equity in Kronos' other comprehensive income (loss): | |||
Defined benefit pension plans/ Other postretirement benefit plans | $ (100) | $ (100) |
Investment in Kronos Worldwid_5
Investment in Kronos Worldwide, Inc. - Selected Financial Information of Kronos Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Equity Method Investments [Line Items] | ||
Current assets | $ 193,648 | $ 171,164 |
Property and equipment, net | 29,182 | 28,950 |
Other noncurrent assets | 2,753 | 5,262 |
Total assets | 596,152 | 548,150 |
Current liabilities | 30,597 | 27,507 |
Accrued pension costs | 3,722 | 6,392 |
Other noncurrent liabilities | 3,490 | 3,780 |
Stockholders' equity | 362,470 | 311,877 |
Total liabilities and equity | 596,152 | 548,150 |
Kronos | Reportable Legal Entities | ||
Schedule Of Equity Method Investments [Line Items] | ||
Current assets | 1,258,000 | 1,218,300 |
Property and equipment, net | 503,400 | 524,600 |
Investment in TiO2 joint venture | 101,900 | 103,300 |
Other noncurrent assets | 149,500 | 190,500 |
Total assets | 2,012,800 | 2,036,700 |
Current liabilities | 288,800 | 260,200 |
Long-term debt | 449,800 | 486,700 |
Accrued pension costs | 287,400 | 372,600 |
Other noncurrent liabilities | 116,600 | 120,700 |
Stockholders' equity | 870,200 | 796,500 |
Total liabilities and equity | $ 2,012,800 | $ 2,036,700 |
Investment in Kronos Worldwid_6
Investment in Kronos Worldwide, Inc. - Selected Financial Information of Kronos Income Statement (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Equity Method Investments [Line Items] | |||
Net sales | $ 140,815 | $ 114,537 | $ 124,243 |
Cost of sales | 98,066 | 81,689 | 85,280 |
Income from operations | 10,491 | 2,357 | (1,609) |
Income tax expense | 7,479 | (2,515) | 579 |
Net income | 51,188 | 14,680 | 25,844 |
Kronos | Reportable Legal Entities | |||
Schedule Of Equity Method Investments [Line Items] | |||
Net sales | 1,939,400 | 1,638,800 | 1,731,100 |
Cost of sales | 1,493,200 | 1,287,600 | 1,344,900 |
Income from operations | 187,100 | 116,200 | 145,800 |
Income tax expense | 40,500 | 16,100 | 34,000 |
Net income | $ 112,900 | $ 63,900 | $ 87,100 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | ||||
Increase (decrease) in carrying amount of goodwill | $ 0 | $ 0 | $ 0 | |
Goodwill impairment | 0 | $ 0 | $ 0 | |
Gross goodwill | $ 43.7 | |||
EWI Re, Inc. | ||||
Goodwill [Line Items] | ||||
Goodwill impairment | $ 6.4 | |||
CompX | Marine Components | ||||
Goodwill [Line Items] | ||||
Goodwill impairment | $ 10.1 |
Other Assets, Net - Summary of
Other Assets, Net - Summary of Other Assets, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Pension asset | $ 1,356 | $ 3,881 |
Other | 1,397 | 1,381 |
Total | $ 2,753 | $ 5,262 |
Accrued and Other Current Lia_3
Accrued and Other Current Liabilities - Schedule of Accrued and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Employee benefits | $ 10,345 | $ 9,000 |
Other | 1,672 | 1,253 |
Total | $ 12,017 | $ 10,253 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - NLKW Holding, LLC - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2016 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 14, 2016 | |
Kronos | ||||
Debt Instrument [Line Items] | ||||
Asset contribution, equity security shares | 35.2 | |||
Back-To-Back Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing under credit facility | $ 50 | |||
Percentage of membership interest in subsidiary | 100.00% | |||
Valhi | Valhi Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing under credit facility | $ 50 | $ 50 | ||
Variable rate basis spread above reference rate | 1.875% | |||
Line of credit facility frequency of payment of interest | quarterly | |||
Line of credit facility expiration date | Dec. 31, 2023 | |||
Maximum principle outstanding, percentage of collateral value | 50.00% | |||
Debt instrument collateral | 100% of the membership interest in NLKW held by us | |||
Percentage of membership interest in subsidiary | 100.00% | |||
Outstanding borrowing | $ 0.5 | $ 0.5 | ||
Debt instrument average interest rate | 5.13% | |||
Debt instrument average interest rate, during period | 5.13% | |||
Valhi | Stock Repurchase Rights [Member] | Valhi Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Variable rate basis spread above reference rate | 2.75% | |||
Stock repurchase, maximum debt percentage | 50.00% | |||
Debt instrument maturity period | 5 years |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution pension plans | $ 3,700 | $ 3,000 | $ 3,200 |
Equities | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term return on plan assets | 9.00% | ||
Plan asset target allocation | 33.00% | ||
Fixed Income | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term return on plan assets | 3.00% | ||
Plan asset target allocation | 59.00% | ||
Funds | Assets Measured at NAV | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets | 94.00% | ||
Multi-asset Strategies and CMRT | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term return on plan assets | 2.00% | ||
UK Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan benefit obligation | $ 10,100 | ||
Fair value of plan assets | 11,500 | ||
Plan assets recognized in the Consolidated Balance Sheet | 1,400 | ||
Defined Benefit Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan benefit obligation | 50,367 | 52,873 | 50,350 |
Fair value of plan assets | 47,940 | 50,260 | $ 46,313 |
Expected contributions to Defined Benefit Plans in Next Fiscal Year | 1,200 | ||
Net underfunded status of defined benefit pension plans | $ 2,427 | $ 2,613 | |
Weighted-average rate determining the actuarial present value of benefit obligation | 2.30% | 2.10% | |
Long-term return on plan assets | 3.30% | 4.20% | 4.70% |
Defined Benefit Pension Plans | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan benefit obligation | $ 40,254 | $ 43,754 | |
Fair value of plan assets | 36,471 | 37,260 | |
Defined Benefit Pension Plans | Assets Measured at NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 34,180 | 12,765 | |
Defined Benefit Pension Plans | Equities | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12,951 | 14,636 | |
Defined Benefit Pension Plans | Equities | Assets Measured at NAV | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12,012 | 11,940 | |
Defined Benefit Pension Plans | Fixed Income | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 21,299 | $ 18,747 | |
Defined Benefit Pension Plans | Fixed Income | Assets Measured at NAV | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 21,299 |
Employee Benefit Plans - Expect
Employee Benefit Plans - Expected Benefit Payments (Detail) - Defined Benefit Pension Plans $ in Thousands | Dec. 31, 2021USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 3,689 |
2023 | 3,647 |
2024 | 3,570 |
2025 | 3,493 |
2026 | 3,435 |
Next 5 years | $ 15,885 |
Employee Benefit Plans - Funded
Employee Benefit Plans - Funded Status of Defined Benefit Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Noncurrent pension asset | $ 1,356 | $ 3,881 | |
Defined Benefit Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Balance at beginning of the year | 52,873 | 50,350 | |
Interest cost | 947 | 1,483 | $ 1,884 |
Actuarial losses | 295 | 4,353 | |
Change in currency exchange rates | (73) | 307 | |
Benefits paid | (3,675) | (3,620) | |
Benefit obligations at end of the year | 50,367 | 52,873 | 50,350 |
Fair value at beginning of the year | 50,260 | 46,313 | |
Actual return on plan assets | 226 | 5,308 | |
Employer contributions | 1,169 | 1,841 | |
Change in currency exchange rates | (40) | 418 | |
Benefits paid | (3,675) | (3,620) | |
Fair value of plan assets at end of year | 47,940 | 50,260 | $ 46,313 |
Funded status | (2,427) | (2,613) | |
Noncurrent pension asset | 1,356 | 3,881 | |
Current | (61) | (102) | |
Noncurrent | (3,722) | (6,392) | |
Amounts recognized in the Consolidated Balance Sheets | (2,427) | (2,613) | |
Accumulated other comprehensive loss - actuarial losses, net | 28,265 | 28,209 | |
Total | 25,838 | 25,596 | |
Accumulated benefit obligations (ABO) | $ 50,367 | $ 52,873 |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in Other Comprehensive Income (Loss) (Detail) - Defined Benefit Pension Plans - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial gain (loss) arising during the year | $ 1,618 | $ (934) | $ 1,330 |
Amortization of unrecognized net actuarial gain (loss) | (1,562) | 1,412 | 1,584 |
Total | $ 56 | $ 478 | $ 2,914 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Defined Benefit Cost (Income) (Detail) - Defined Benefit Pension Plans - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 947 | $ 1,483 | $ 1,884 |
Expected return on plan assets | (1,603) | (1,850) | (1,899) |
Recognized actuarial losses | 1,562 | 1,412 | 1,584 |
Total | $ 906 | $ 1,045 | $ 1,569 |
Employee Benefit Plans - Inform
Employee Benefit Plans - Information Concerning Defined Benefit Pension Plans (Including Certain Plans for Which ABO Exceeds Fair Value of Plan Assets) (Detail) - Defined Benefit Pension Plans - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
PBO | $ 50,367 | $ 52,873 | $ 50,350 |
Fair value of plan assets | 47,940 | 50,260 | $ 46,313 |
PBO for plans for which ABO exceeds plan assets | 40,254 | 43,754 | |
ABO for plans for which ABO exceeds plan assets | 40,254 | 43,754 | |
Fair value of plan assets for plans for which ABO exceeds plan assets | 36,471 | 37,260 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
PBO | 40,254 | 43,754 | |
Fair value of plan assets | 36,471 | 37,260 | |
U.K. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
PBO | 10,113 | 9,119 | |
Fair value of plan assets | $ 11,469 | $ 13,000 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Weighted-Average Assumptions Used to Determine Net Benefit Obligation (Detail) - Defined Benefit Pension Plans | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.10% | 2.90% | 3.90% |
Long-term rate of return on plan assets | 3.30% | 4.20% | 4.70% |
Employee Benefit Plans - Compos
Employee Benefit Plans - Composition of Pension Plan Assets by Fair Value Level (Detail) - Defined Benefit Pension Plans - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 47,940 | $ 50,260 | $ 46,313 |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 36,471 | 37,260 | |
U.K. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 11,469 | 13,000 | |
Equities | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 12,951 | 14,636 | |
Fixed Income | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 21,299 | 18,747 | |
Cash and Other | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 2,221 | 3,877 | |
Others | U.K. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 11,469 | 13,000 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 3,507 | 36,957 | |
Level 1 | Equities | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 831 | 2,158 | |
Level 1 | Fixed Income | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 18,747 | ||
Level 1 | Cash and Other | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,352 | 3,052 | |
Level 1 | Others | U.K. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,324 | 13,000 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 10,253 | 538 | |
Level 3 | Equities | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 108 | 538 | |
Level 3 | Others | U.K. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 10,145 | ||
Assets Measured at NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 34,180 | 12,765 | |
Assets Measured at NAV | Equities | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 12,012 | 11,940 | |
Assets Measured at NAV | Fixed Income | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 21,299 | ||
Assets Measured at NAV | Cash and Other | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 869 | $ 825 |
Other Noncurrent Liabilities -
Other Noncurrent Liabilities - Summary of Other Noncurrent Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Reserve for uncertain tax positions | $ 1,724 | $ 1,717 |
OPEB | 787 | 985 |
Insurance claims and expenses | 632 | 653 |
Other | 347 | 425 |
Total | $ 3,490 | $ 3,780 |
Other Operating Income (Expen_2
Other Operating Income (Expense) - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Component Of Other Income And Expense [Line Items] | |||||
Number of insurance carriers for which agreed to reimburse litigation costs | item | 1 | ||||
Other income, net | $ 29 | $ 18 | $ 7,444 | ||
Proceeds from sale of business | 2,925 | ||||
Gain from sale of business | $ 3,000 | ||||
Insurance and Risk Management Business | |||||
Component Of Other Income And Expense [Line Items] | |||||
Proceeds from sale of business | $ 3,250 | ||||
Gain from sale of business | $ 3,000 | ||||
Sale of Excess Property | |||||
Component Of Other Income And Expense [Line Items] | |||||
Other income, net | $ 4,400 |
Income Taxes - Component of Inc
Income Taxes - Component of Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Expected tax expense, at U.S. federal statutory income tax rate of 21% | $ 12,800 | $ 2,900 | $ 6,000 |
Non-taxable dividends received from Kronos | (5,300) | (5,300) | (5,300) |
U.S. state income taxes and other, net | (100) | (100) | |
Income tax expense (benefit) | $ 7,479 | $ (2,515) | $ 579 |
Income Taxes - Component of I_2
Income Taxes - Component of Income Taxes Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Components of income tax expense (benefit): | |||
Currently payable | $ 200 | ||
Deferred income tax expense (benefit) | $ 7,500 | $ (2,500) | 400 |
Income tax expense (benefit) | $ 7,479 | $ (2,515) | $ 579 |
Income Taxes - Components of Co
Income Taxes - Components of Comprehensive Provision for Income Taxes Allocation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Comprehensive provision for income taxes (benefit) allocable to: | |||
Net income (loss) | $ 7,479 | $ (2,515) | $ 579 |
Additional paid-in capital | (100) | (200) | |
Other comprehensive income (loss): | |||
Currency translation | (400) | 900 | (100) |
Total | 10,300 | (2,500) | (500) |
Defined Benefit Pension Plans | |||
Other comprehensive income (loss): | |||
Defined benefit plans | $ 3,200 | (700) | $ (800) |
OPEB | |||
Other comprehensive income (loss): | |||
Defined benefit plans | $ (100) |
Income Taxes - Component of I_3
Income Taxes - Component of Income Taxes (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | 21.00% | 21.00% | 21.00% |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Liability (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Tax effect of temporary differences related to: | ||
Inventories | $ 0.5 | $ 0.4 |
Accrued OPEB costs | 0.2 | 0.3 |
Accrued pension costs | 0.5 | 0.5 |
Accrued employee benefits | 1.3 | 1.1 |
Accrued environmental liabilities | 26.7 | 29.1 |
Other accrued liabilities and deductible differences | 0.2 | |
Adjusted gross deferred tax assets (liabilities) | 29.4 | 31.4 |
Netting of items by tax jurisdiction | (29.4) | (31.4) |
Marketable securities | (7) | (3.6) |
Property and equipment | (2.7) | (2.6) |
Goodwill | (1.7) | (1.7) |
Other taxable differences | (2.3) | (2.3) |
Investment in Kronos Worldwide, Inc. | (59.8) | (55) |
Adjusted gross deferred tax assets (liabilities) | (73.5) | (65.2) |
Netting of items by tax jurisdiction | 29.4 | 31.4 |
Net noncurrent deferred tax liability | $ (44.1) | $ (33.8) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Line Items] | ||||||
Dividends received from Kronos Worldwide, Inc. | $ 25,356 | $ 25,356 | $ 25,356 | |||
Gross unrecognized tax benefits | $ 7,300 | 7,300 | 7,300 | 7,300 | ||
Uncertain tax position | 1,724 | 1,717 | ||||
Unrecognized tax benefits, if recognize which would affect effective tax rate | 7,300 | |||||
Currently payable | 200 | |||||
Income tax expense (benefit) | (7,479) | 2,515 | (579) | |||
Current payable to affiliate | 691 | 725 | ||||
Valhi | Income Tax Payable | ||||||
Income Tax Disclosure [Line Items] | ||||||
Payable to affiliate | 50,600 | |||||
Federal Income Tax Purposes | ||||||
Income Tax Disclosure [Line Items] | ||||||
Net operating loss carryforwards | $ 26,600 | |||||
Annual usage limitation | 80.00% | |||||
Net operating loss carryforwards expiration description | an indefinite carryforward period subject to an 80% annual usage limitation | |||||
Kronos | ||||||
Income Tax Disclosure [Line Items] | ||||||
Dividends received from Kronos Worldwide, Inc. | $ 25,400 | $ 25,400 | $ 25,400 | |||
Kronos | CARES Act | ||||||
Income Tax Disclosure [Line Items] | ||||||
Cash tax benefit due to reversal of valuation allowance | $ 500 | |||||
Percentage of adjusted taxable income | 50.00% | 30.00% | ||||
Interest expense and an increase in the valuation allowance | 2,800 | |||||
Kronos | Germany | ||||||
Income Tax Disclosure [Line Items] | ||||||
Income tax benefit | 3,000 | |||||
Current cash tax benefit | 1,500 | |||||
Non-cash deferred income tax benefit | 1,500 | |||||
Deferred income tax expense resulting from decrease in trade tax rate | $ 5,500 | |||||
Kronos | Deferred Tax Liability Non Current | ||||||
Income Tax Disclosure [Line Items] | ||||||
Uncertain tax position | 5,600 | |||||
Kronos | Corporate Tax Purposes | German | ||||||
Income Tax Disclosure [Line Items] | ||||||
Net operating loss carryforwards | 451,000 | |||||
Kronos | Corporate Tax Purposes | Belgium | ||||||
Income Tax Disclosure [Line Items] | ||||||
Net operating loss carryforwards | $ 19,000 | |||||
Kronos European Subsidiaries | Transition Tax | ||||||
Income Tax Disclosure [Line Items] | ||||||
Currently payable | $ 74,500 | |||||
Current income tax expense payment period | 8 years | |||||
Kronos European Subsidiaries | Valhi | ||||||
Income Tax Disclosure [Line Items] | ||||||
Income tax liability payable period | 8 years | |||||
Kronos European Subsidiaries | Valhi | Income Tax Payable | ||||||
Income Tax Disclosure [Line Items] | ||||||
Payable to affiliate | $ 50,600 | |||||
Noncurrent payable to affiliate | 44,700 | |||||
Current payable to affiliate | $ 5,900 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Class Of Stock [Line Items] | |||||||||||
Payments of dividends | $ 11,700 | $ 7,800 | $ 0 | ||||||||
Quarterly dividends paid (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | |||
NL | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Common stock awarded to board of directors | 13,750 | 33,250 | 28,250 | ||||||||
Shares available for award | 66,150 | 66,150 | |||||||||
NL | Maximum | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Aggregate of common stock awarded to directors | 200,000 | ||||||||||
CompX | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Shares available for award | 136,450 | 136,450 | |||||||||
CompX | Maximum | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Aggregate of common stock awarded to directors | 200,000 | ||||||||||
Kronos | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Shares available for award | 120,200 | 120,200 | |||||||||
Kronos | Maximum | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Aggregate of common stock awarded to directors | 200,000 |
Stockholder's Equity - Schedule
Stockholder's Equity - Schedule of Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated other comprehensive loss, net of tax: | |||
Balance at beginning of year | $ 311,877 | ||
Balance at end of year | 362,470 | $ 311,877 | |
Currency Translation | |||
Accumulated other comprehensive loss, net of tax: | |||
Balance at beginning of year | (169,575) | (172,843) | $ (172,434) |
Other comprehensive income (loss) | (1,660) | 3,268 | (409) |
Balance at end of year | (171,235) | (169,575) | (172,843) |
Accumulated Defined Benefit Plans Adjustment | Defined Benefit Pension Plans | |||
Accumulated other comprehensive loss, net of tax: | |||
Balance at beginning of year | (80,704) | (78,257) | (75,286) |
Other comprehensive income (loss) | 4,813 | 4,330 | 3,539 |
Net actuarial gain (loss) arising during year | 7,423 | (6,777) | (6,510) |
Balance at end of year | (68,468) | (80,704) | (78,257) |
Other | OPEB | |||
Accumulated other comprehensive loss, net of tax: | |||
Balance at beginning of year | (910) | (590) | (550) |
Other comprehensive income (loss) | (143) | (320) | (40) |
Balance at end of year | (1,053) | (910) | (590) |
Accumulated other comprehensive loss | |||
Accumulated other comprehensive loss, net of tax: | |||
Balance at beginning of year | (251,189) | (251,690) | (248,270) |
Other comprehensive income (loss) | 10,433 | 501 | (3,420) |
Balance at end of year | $ (240,756) | $ (251,189) | $ (251,690) |
Related Party Transactions - Cu
Related Party Transactions - Current Receivables and Payables to Affiliates (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current receivables from affiliates: | ||
Receivables from affiliates | $ 313 | |
Current payables to affiliates: | ||
Payable to affiliates | $ 691 | 725 |
Other - Trade Items | ||
Current payables to affiliates: | ||
Payable to affiliates | 682 | 696 |
Valhi | Income Taxes | ||
Current payables to affiliates: | ||
Payable to affiliates | $ 9 | $ 29 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2016 | Nov. 14, 2016 | |
Related Party Transaction [Line Items] | |||||
Notes receivable from affiliate | $ 18,700 | $ 29,500 | |||
Contran | Kronos | |||||
Related Party Transaction [Line Items] | |||||
Rent and related ancillary service | 400 | 400 | $ 100 | ||
Contran | Intercorporate Services Agreement Fees | |||||
Related Party Transaction [Line Items] | |||||
Expense transaction with affiliate | 33,200 | 33,400 | 36,100 | ||
Contran | Combined Information Technology Data Recovery Program | Kronos | |||||
Related Party Transaction [Line Items] | |||||
Expense transaction with affiliate | 300 | 300 | 200 | ||
Tall Pines and EWI | Insurance Premiums | |||||
Related Party Transaction [Line Items] | |||||
Expense transaction with affiliate | 26,300 | 22,200 | 14,900 | ||
Tall Pines | |||||
Related Party Transaction [Line Items] | |||||
Expense transaction with affiliate | 19,500 | 15,600 | |||
NLKW Holding, LLC | Valhi | Valhi Credit Facility | |||||
Related Party Transaction [Line Items] | |||||
Borrowing under credit facility | $ 50,000 | $ 50,000 | |||
Outstanding borrowings | 500 | 500 | |||
CompX | Valhi Inc | Unsecured Revolving Promissory Note Receivable | |||||
Related Party Transaction [Line Items] | |||||
Maximum loan amount | $ 30,000 | ||||
Interest rate on loans repayment | 1.00% | ||||
Notes receivable from affiliate | $ 18,700 | 29,500 | |||
Interest income including unused commitment fees | $ 1,200 | $ 1,500 | $ 2,400 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Jul. 24, 2019USD ($)defendantinstallment | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($)installment | Dec. 31, 2019USD ($) | Dec. 31, 2021USD ($)sitecase | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Commitments and Contingent Liabilities [Line Items] | ||||||||||||
Recognized accretion expense | $ 1,116,000 | $ 1,321,000 | $ 646,000 | |||||||||
Long-term litigation settlement | 38,519,000 | 49,403,000 | ||||||||||
Litigation settlement expense | 19,266,000 | |||||||||||
Accrual for reasonably estimable environmental remediation and related matters | $ 94,508,000 | $ 92,940,000 | $ 93,416,000 | $ 94,508,000 | $ 98,211,000 | |||||||
Component Products | Customer Concentration Risk | Top Ten Customers | Sales Revenue | ||||||||||||
Commitments and Contingent Liabilities [Line Items] | ||||||||||||
Concentration risk percentage | 51.00% | 48.00% | 47.00% | |||||||||
Component Products | Customer Concentration Risk | Customer Two | Sales Revenue | CompX Security Products Business | ||||||||||||
Commitments and Contingent Liabilities [Line Items] | ||||||||||||
Concentration risk percentage | 16.00% | 17.00% | 14.00% | |||||||||
Environmental Remediation Sites NL Named As PRP Or Defendant | ||||||||||||
Commitments and Contingent Liabilities [Line Items] | ||||||||||||
Accrual for reasonably estimable environmental remediation and related matters | $ 93,000,000 | |||||||||||
Number of sites associated with remediation and related costs | site | 32 | |||||||||||
Number of sites currently not able to reasonably estimate a range of costs | site | 5 | |||||||||||
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 | $ 118,000,000 | |||||||||||
Environmental Remediation Litigation | ||||||||||||
Commitments and Contingent Liabilities [Line Items] | ||||||||||||
Recoveries receivable | $ 0 | $ 0 | ||||||||||
Lead Pigment Litigation | ||||||||||||
Commitments and Contingent Liabilities [Line Items] | ||||||||||||
Period by which loss contingency claims settled and dismissed | 30 years | |||||||||||
Description of defendants | on July 24, 2019, an order approving a global settlement agreement entered into among all of the plaintiffs and the three defendants remaining in the case (the Sherwin Williams Company, ConAgra Grocery Products and us) was entered by the court and the case was dismissed with prejudice. The global settlement agreement provides that an aggregate $305 million will be paid collectively by the three co-defendants in full satisfaction of all claims resulting in a dismissal of the case with prejudice and the resolution of (i) all pending and future claims by the plaintiffs in the case, and (ii) all potential claims for contribution or indemnity between us and our co-defendants in respect to the case | |||||||||||
Number of defendants | defendant | 3 | |||||||||||
Litigation settlement amount | $ 305,000,000 | |||||||||||
NL's portion of global settlement amount, gross value | 101,700,000 | $ 62,000,000 | ||||||||||
Litigation initial payment made 60 days after litigation settlement | 25,000,000 | |||||||||||
Remaining litigation settlement charge | $ 76,700,000 | $ 20,000,000 | ||||||||||
Number of annual installments | installment | 6 | 5 | ||||||||||
Remaining litigation settlement payment due in first year | $ 12,000,000 | |||||||||||
Remaining litigation settlement payment due in second year | 12,000,000 | |||||||||||
Remaining litigation settlement payment due in third year | 12,000,000 | |||||||||||
Remaining litigation settlement payment due in fourth year | 12,000,000 | |||||||||||
Remaining litigation settlement payment due in fifth year | 12,000,000 | |||||||||||
Remaining litigation settlement payment due in sixth year | 16,700,000 | |||||||||||
Escrow deposit | $ 9,000,000 | |||||||||||
Litigation initial payment | $ 12,000,000 | $ 12,000,000 | $ 25,000,000 | |||||||||
Recognized accretion expense | $ 600,000 | $ 1,100,000 | $ 1,300,000 | |||||||||
Litigation settlement, current | $ 80,000,000 | |||||||||||
Litigation settlement charge upon approval of settlement terms | 45,000,000 | |||||||||||
Long-term litigation settlement | $ 17,000,000 | |||||||||||
Litigation settlement installments payment beginning term from approval | 4 years | |||||||||||
Discounted rate for estimated present value of remaining litigation amount | 1.90% | 1.90% | ||||||||||
Litigation settlement expense | $ 19,600,000 | $ 19,300,000 | ||||||||||
Litigation settlement credit | $ 300,000 | |||||||||||
Litigation settlement estimated net present value | $ 96,300,000 | $ 96,300,000 | ||||||||||
Lead Pigment Litigation | Minimum | ||||||||||||
Commitments and Contingent Liabilities [Line Items] | ||||||||||||
Number of cases settled and dismissed and found not liable | case | 100 |
Commitments and Contingencies_2
Commitments and Contingencies - Changes in Accrued Environmental Remediation and Related Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Balance at the beginning of the year | $ 93,416 | $ 94,508 | $ 98,211 |
Additions charged (credited) to expense, net | 788 | 82 | (579) |
Payments, net | (1,264) | (1,174) | (3,124) |
Balance at the end of the year | 92,940 | 93,416 | 94,508 |
Amounts recognized in the balance sheet: | |||
Current liability | 2,643 | 2,027 | 3,065 |
Noncurrent liability | $ 90,297 | $ 91,389 | $ 91,443 |
Financial Instruments - Summary
Financial Instruments - Summary of Financial Instruments Not Carried at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash, cash equivalents and restricted cash, Carrying amount | $ 175,242 | $ 165,272 |
Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash, cash equivalents and restricted cash, Fair value | $ 175,242 | $ 165,272 |