Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | NL | |
Entity Registrant Name | NL INDUSTRIES INC | |
Entity Central Index Key | 72,162 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 48,691,884 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 88,392 | $ 72,560 |
Restricted cash and cash equivalents | 3,306 | 3,995 |
Accounts and other receivables, net | 12,735 | 9,256 |
Inventories, net | 15,448 | 16,863 |
Prepaid expenses and other | 831 | 792 |
Deferred income taxes | 4,567 | 4,567 |
Total current assets | 125,279 | 108,033 |
Other assets: | ||
Marketable securities | 27,165 | 92,131 |
Investment in Kronos Worldwide, Inc. | 154,588 | 237,719 |
Goodwill | 27,156 | 27,156 |
Other assets, net | 2,494 | 2,143 |
Deferred income taxes | 20 | 20 |
Total other assets | 211,423 | 359,169 |
Property and equipment: | ||
Land | 5,138 | 5,138 |
Buildings | 21,498 | 21,176 |
Equipment | 63,632 | 62,264 |
Construction in progress | 1,749 | 909 |
Property and equipment, gross | 92,017 | 89,487 |
Less accumulated depreciation | 58,489 | 55,931 |
Net property and equipment | 33,528 | 33,556 |
Total assets | 370,230 | 500,758 |
Current liabilities: | ||
Accounts payable | 5,107 | 6,115 |
Accrued and other current liabilities | 9,902 | 11,521 |
Accrued environmental remediation and related costs | 6,989 | 6,984 |
Income taxes | 13 | 7 |
Total current liabilities | 22,011 | 24,627 |
Noncurrent liabilities: | ||
Accrued pension cost | 11,237 | 12,242 |
Accrued postretirement benefits (OPEB) costs | 3,081 | 3,341 |
Accrued environmental remediation and related costs | 104,622 | 103,031 |
Deferred income taxes | 36,935 | 87,725 |
Other | 13,667 | 18,342 |
Total noncurrent liabilities | 169,542 | 224,681 |
NL stockholders' equity: | ||
Common stock | 6,086 | 6,085 |
Additional paid-in capital | 300,543 | 300,388 |
Retained earnings | 94,306 | 112,588 |
Accumulated other comprehensive loss | (237,425) | (182,039) |
Total NL stockholders' equity | 163,510 | 237,022 |
Noncontrolling interest in subsidiary | 15,167 | 14,428 |
Total equity | 178,677 | 251,450 |
Total liabilities and equity | $ 370,230 | $ 500,758 |
Commitments and contingencies (Notes 11 and 13) |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 26,505 | $ 26,473 | $ 83,314 | $ 79,102 |
Cost of sales | 18,387 | 18,331 | 57,471 | 54,598 |
Gross margin | 8,118 | 8,142 | 25,843 | 24,504 |
Selling, general and administrative expense | 4,684 | 4,710 | 14,402 | 13,872 |
Other operating income (expense): | ||||
Insurance recoveries | 113 | 8,843 | 3,480 | 10,041 |
Other income | 74 | 9 | 91 | 140 |
Corporate expense | (2,659) | (4,304) | (12,146) | (17,582) |
Income from operations | 962 | 7,980 | 2,866 | 3,231 |
Equity in earnings (losses) of Kronos Worldwide, Inc. | (3,600) | 9,689 | (46,584) | 24,101 |
Other income - interest and dividend income | 294 | 311 | 878 | 1,333 |
Income (loss) before income taxes | (2,344) | 17,980 | (42,840) | 28,665 |
Income tax expense (benefit) | (3,581) | 3,800 | (25,534) | 4,645 |
Net income (loss) | 1,237 | 14,180 | (17,306) | 24,020 |
Noncontrolling interest in net income of subsidiary | 294 | 291 | 976 | 904 |
Net income (loss) attributable to NL stockholders | $ 943 | $ 13,889 | $ (18,282) | $ 23,116 |
Amounts attributable to NL stockholders: | ||||
Basic and diluted net income (loss) per share | $ 0.02 | $ 0.29 | $ (0.38) | $ 0.47 |
Weighted average shares used in the calculation of net income (loss) per share | 48,692 | 48,683 | 48,687 | 48,678 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net income (loss) | $ 1,237 | $ 14,180 | $ (17,306) | $ 24,020 |
Other comprehensive income (loss), net of tax: | ||||
Marketable securities | (34,513) | 1,022 | (41,657) | (105,842) |
Currency translation | (3,538) | (9,215) | (15,309) | (10,589) |
Interest rate swap | (733) | (733) | ||
Total other comprehensive loss, net | (38,019) | (7,819) | (55,386) | (115,315) |
Comprehensive income (loss) | (36,782) | 6,361 | (72,692) | (91,295) |
Comprehensive income attributable to noncontrolling interest | 294 | 291 | 976 | 904 |
Comprehensive income (loss) attributable to NL stockholders | (37,076) | 6,070 | (73,668) | (92,199) |
Defined Benefit Pension Plans | ||||
Other comprehensive income (loss), net of tax: | ||||
Defined benefit pension plans/ Other postretirement benefit plans | 902 | 530 | 2,723 | 1,585 |
OPEB | ||||
Other comprehensive income (loss), net of tax: | ||||
Defined benefit pension plans/ Other postretirement benefit plans | $ (137) | $ (156) | $ (410) | $ (469) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Noncontrolling interest in subsidiary |
Beginning Balance at Dec. 31, 2014 | $ 251,450 | $ 6,085 | $ 300,388 | $ 112,588 | $ (182,039) | $ 14,428 |
Net income (loss) | (17,306) | (18,282) | 976 | |||
Other comprehensive loss, net of tax | (55,386) | (55,386) | ||||
Issuance of NL common stock | 66 | 1 | 65 | |||
Dividends | (247) | (247) | ||||
Other, net | 100 | 90 | 10 | |||
Ending Balance at Sep. 30, 2015 | $ 178,677 | $ 6,086 | $ 300,543 | $ 94,306 | $ (237,425) | $ 15,167 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (17,306) | $ 24,020 |
Depreciation and amortization | 2,699 | 2,694 |
Deferred income taxes | (20,978) | 1,132 |
Equity in losses (earnings) of Kronos Worldwide, Inc. | 46,584 | (24,101) |
Dividends received from Kronos Worldwide, Inc. | 15,849 | 15,849 |
Cash funding of benefit plans in excess of net benefit plan expense | (1,116) | (2,145) |
Other, net | 348 | 417 |
Change in assets and liabilities: | ||
Accounts and other receivables, net | (2,583) | (1,839) |
Inventories, net | 1,246 | (2,030) |
Prepaid expenses and other | (40) | 15 |
Accounts payable and accrued liabilities | (1,805) | 2,184 |
Income taxes | 3 | |
Accounts with affiliates | (1,497) | 3,380 |
Accrued environmental remediation and related costs | 1,596 | 3,334 |
Other noncurrent assets and liabilities, net | (4,700) | (63) |
Net cash provided by operating activities | 18,297 | 22,850 |
Cash flows from investing activities: | ||
Capital expenditures | (2,570) | (2,199) |
Change in restricted cash equivalents, net | 348 | (454) |
Proceeds from the sale of marketable securities | 255 | |
Purchase of marketable securities | (251) | |
Other | (57) | |
Net cash used in investing activities | (2,218) | (2,710) |
Cash flows from financing activities - | ||
Distributions to noncontrolling interests in subsidiary | (247) | (246) |
Cash and cash equivalents - net change from: | ||
Operating, investing and financing activities | 15,832 | 19,894 |
Cash and cash equivalents at beginning of period | 72,560 | 52,609 |
Cash and cash equivalents at end of period | 88,392 | 72,503 |
Supplemental disclosure - cash paid for: | ||
Income taxes, net | $ 1,587 | $ 190 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Note 1 – Organization – At September 30, 2015, Valhi, Inc. (NYSE: VHI) held approximately 83% of our outstanding common stock and a wholly-owned subsidiary of Contran Corporation held approximately 93% of Valhi’s outstanding common stock. Substantially all of Contran’s outstanding voting stock is held by a family trust established for the benefit of Lisa K. Simmons and Serena Simmons Connelly, daughters of Harold C. Simmons, and their children (for which Ms. Lisa Simmons and Ms. Connelly are co-trustees) or is held directly by Ms. Lisa Simmons and Ms. Connelly or persons or entities related to them, including their step-mother Annette C. Simmons, the widow of Mr. Simmons. Under a voting agreement entered into by all of the voting stockholders of Contran, effective in February 2014 and as amended, the size of the board of directors of Contran was fixed at five members, Ms. Lisa Simmons, Ms. Connelly and Ms. Annette Simmons (and in the event of their death, their heirs) each has the right to designate one of the five members of the Contran board and the remaining two members of the Contran board must consist of members of Contran management. Ms. Lisa Simmons, Ms. Connelly, and Ms. Annette Simmons each serve as members of the Contran board. The voting agreement expires in February 2017 (unless Ms. Lisa Simmons, Ms. Connelly and Ms. Annette Simmons otherwise unanimously agree), and the ability of Ms. Lisa Simmons, Ms. Connelly, and Ms. Annette Simmons to each designate one member of the Contran board is dependent upon each of their continued beneficial ownership of at least 5% of the combined voting stock of Contran. Consequently, Ms. Lisa Simmons, Ms. Connelly and Ms. Annette Simmons may be deemed to control Contran, Valhi and us. Basis of presentation – Consolidated in this Quarterly Report are the results of our majority-owned subsidiary, CompX International Inc. We also own 30% of Kronos Worldwide, Inc. (Kronos). CompX (NYSE MKT: CIX) and Kronos (NYSE: KRO); each file periodic reports with the Securities and Exchange Commission (SEC). The unaudited Condensed Consolidated Financial Statements contained in this Quarterly Report have been prepared on the same basis as the audited Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2014 that we filed with the SEC on March 12, 2015 (the 2014 Annual Report). In our opinion, we have made all necessary adjustments (which include only normal recurring adjustments) in order to state fairly, in all material respects, our consolidated financial position, results of operations and cash flows as of the dates and for the periods presented. We have condensed the Consolidated Balance Sheet and Statement of Stockholders’ Equity at December 31, 2014 contained in this Quarterly Report as compared to our audited Consolidated Financial Statements at that date, and we have omitted certain information and footnote disclosures (including those related to the Consolidated Balance Sheet at December 31, 2014) normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Our results of operations for the interim periods ended September 30, 2015 may not be indicative of our operating results for the full year. The Condensed Consolidated Financial Statements contained in this Quarterly Report should be read in conjunction with our 2014 Consolidated Financial Statements contained in our 2014 Annual Report. Unless otherwise indicated, references in this report to “NL,” “we,” “us” or “our” refer to NL Industries, Inc. and its subsidiaries and affiliate, Kronos, taken as a whole. |
Accounts and Other Receivables,
Accounts and Other Receivables, Net | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Accounts and Other Receivables, Net | Note 2 – December 31, September 30, 2014 2015 (In thousands) Trade receivables - CompX $ 8,825 $ 11,687 Income taxes receivable from Valhi - 914 Accrued insurance recoveries 346 71 Other receivables 163 145 Allowance for doubtful accounts (78 ) (82 ) Total $ 9,256 $ 12,735 Accrued insurance recoveries are discussed in Note 13. |
Inventories, Net
Inventories, Net | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 3 – December 31, September 30, 2014 2015 (In thousands) Raw materials $ 3,393 $ 3,262 Work in process 10,271 9,902 Finished products 3,199 2,284 Total $ 16,863 $ 15,448 |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 30, 2015 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Securities | Note 4 – Fair value measurement level Market value Cost basis Unrealized gain (In thousands) December 31, 2014 Valhi common stock 1 $ 92,131 $ 24,347 $ 67,784 September 30, 2015 Valhi common stock 1 $ 27,165 $ 24,347 $ 2,818 At December 31, 2014 and September 30, 2015, we held approximately 14.4 million shares of common stock of our immediate parent company, Valhi. See Note 1. We account for our investment in Valhi common stock as available-for-sale marketable equity securities and any unrealized gains or losses on the securities are recognized through other comprehensive income, net of deferred income taxes. Our shares of Valhi common stock are carried at fair value based on quoted market prices, representing a Level 1 input within the fair value hierarchy. At December 31, 2014 and September 30, 2015, the quoted per share market price of Valhi common stock was $6.41 and $1.89, 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. | 9 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investment in Kronos Worldwide, Inc. | Note 5 – At December 31, 2014 and September 30, 2015, we owned approximately 35.2 million shares of Kronos common stock. At September 30, 2015, the quoted market price of Kronos’ common stock was $6.21 per share, or an aggregate market value of $218.7 million. At December 31, 2014, the quoted market price was $13.02 per share, or an aggregate market value of $458.6 million. The change in the carrying value of our investment in Kronos during the first nine months of 2015 is summarized below. Amount (In millions) Balance at the beginning of the period $ 237.7 Equity in losses of Kronos (46.6 ) Dividends received from Kronos (15.8 ) Equity in Kronos' other comprehensive income: Marketable securities .9 Currency translation (23.6 ) Interest rate swap (1.1 ) Defined benefit pension plans 3.1 Balance at the end of the period $ 154.6 Selected financial information of Kronos is summarized below: December 31, September 30, 2014 2015 (In millions) Current assets $ 886.2 $ 781.2 Property and equipment, net 479.7 431.3 Investment in TiO 2 89.0 81.4 Other noncurrent assets 187.6 18.8 Total assets $ 1,642.5 $ 1,312.7 Current liabilities $ 237.9 $ 204.7 Long-term debt 344.7 342.9 Accrued pension and postretirement benefits 245.2 219.1 Other noncurrent liabilities 33.6 38.3 Stockholders' equity 781.1 507.7 Total liabilities and stockholders' equity $ 1,642.5 $ 1,312.7 Three months ended Nine months ended September 30, September 30, 2014 2015 2014 2015 (In millions) Net sales $ 414.8 $ 336.5 $ 1,278.4 $ 1,061.8 Cost of sales 319.1 293.3 1,008.4 894.7 Income (loss) from operations 47.9 (3.2 ) 118.2 18.6 Income tax expense (benefit) 12.3 (7.4 ) 27.0 147.1 Net income (loss) 31.9 (11.8 ) 79.3 (153.2 ) |
Other Noncurrent Assets, Net
Other Noncurrent Assets, Net | 9 Months Ended |
Sep. 30, 2015 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Noncurrent Assets, Net | Note 6 – December 31, September 30, 2014 2015 (In thousands) Restricted cash $ 1,420 $ 1,420 Assets held for sale 590 590 Other 133 484 Total $ 2,143 $ 2,494 |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Payables And Accruals [Abstract] | |
Accrued and Other Current Liabilities | Note 7 – December 31, September 30, 2014 2015 (In thousands) Employee benefits $ 8,278 $ 7,222 Professional fees 951 709 Payables to affiliates 659 76 Other 1,633 1,895 Total $ 11,521 $ 9,902 |
Other Noncurrent Liabilities
Other Noncurrent Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Noncurrent Liabilities | Note 8 – December 31, September 30, 2014 2015 (In thousands) Reserve for uncertain tax positions $ 16,832 $ 12,186 Insurance claims and expenses 589 634 Other 921 847 Total $ 18,342 $ 13,667 Our reserve for uncertain tax positions is discussed in Note 11. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term debt | Note 9 – During the first nine months of 2015, we had no borrowings under our promissory note with Valhi, and at September 30, 2015, the full $40 million was available for borrowing under this facility. The amount of any such loan Valhi would make to us is at Valhi’s discretion. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2015 | |
Other Comprehensive Income Loss Tax [Abstract] | |
Other Comprehensive Income (Loss) | Note 10 – Changes in accumulated other comprehensive loss attributable to NL stockholders, including amounts resulting from our investment in Kronos Worldwide (see Note 5), are presented in the table below. Three months ended Nine months ended September 30, September 30, 2014 2015 2014 2015 (In thousands) Accumulated other comprehensive loss, net of tax: Marketable securities: Balance at beginning of period $ 47,305 $ 39,968 $ 154,169 $ 47,112 Other comprehensive income (loss) - unrealized gains (losses) arising during the year 1,022 (34,513 ) (105,842 ) (41,657 ) Balance at end of period $ 48,327 $ 5,455 $ 48,327 $ 5,455 Currency translation: Balance at beginning of period $ (135,190 ) $ (165,944 ) $ (133,816 ) $ (154,173 ) Other comprehensive loss (9,215 ) (3,538 ) (10,589 ) (15,309 ) Balance at end of period $ (144,405 ) $ (169,482 ) $ (144,405 ) $ (169,482 ) Interest rate swap: Balance at beginning of period $ - $ - $ - $ - Other comprehensive loss - (733 ) - (733 ) Balance at end of period $ - $ (733 ) $ - $ (733 ) Defined benefit pension plans: Balance at beginning of period $ (55,589 ) $ (73,439 ) $ (56,644 ) $ (75,260 ) Other comprehensive income - amortization of net losses included in net periodic pension cost 530 902 1,585 2,723 Balance at end of period $ (55,059 ) $ (72,537 ) $ (55,059 ) $ (72,537 ) OPEB plans: Balance at beginning of period $ 962 $ 9 $ 1,275 $ 282 Other comprehensive loss - amortization of prior service credit and net gains included in net periodic OPEB cost (156 ) (137 ) (469 ) (410 ) Balance at end of period $ 806 $ (128 ) $ 806 $ (128 ) Total accumulated other comprehensive loss: Balance at beginning of period $ (142,512 ) $ (199,406 ) $ (35,016 ) $ (182,039 ) Other comprehensive loss (7,819 ) (38,019 ) (115,315 ) (55,386 ) Balance at end of period $ (150,331 ) $ (237,425 ) $ (150,331 ) $ (237,425 ) See Note 12 for amounts related to our defined benefit pension plans and OPEB plans. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11 – Three months ended Nine months ended September 30, September 30, 2014 2015 2014 2015 (In millions) Expected tax expense (benefit), at U.S. federal statutory income tax rate of 35% $ 6.3 $ (.8 ) $ 10.0 $ (15.0 ) Rate differences on equity in earnings (losses) of Kronos (2.5 ) (2.7 ) (5.8 ) (7.4 ) Adjustment to the reserve for uncertain tax positions, net - - - (3.0 ) Nontaxable income .2 (.1 ) (.1 ) (.3 ) U.S. state income taxes and other, net (.2 ) .1 .5 .2 Total $ 3.8 $ (3.5 ) $ 4.6 $ (25.5 ) Three months ended Nine months ended September 30, September 30, 2014 2015 2014 2015 (In millions) Comprehensive provision (benefit) for income taxes allocable to: Net income (loss) $ 3.8 $ (3.5 ) $ 4.6 $ (25.5 ) Other comprehensive income (loss): Marketable securities .5 (18.6 ) (57.0 ) (22.4 ) Currency translation (5.0 ) (2.0 ) (5.7 ) (8.3 ) Interest rate swap - (.4 ) - (.4 ) Pension plans .3 .5 .9 1.5 OPEB plans (.1 ) - (.3 ) (.2 ) Total $ (.5 ) $ (24.0 ) $ (57.5 ) $ (55.3 ) 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. The amounts shown in the above table of our income tax rate reconciliation for rate differences on equity in earnings (losses) of Kronos represents the benefit associated with such non-taxability of the dividends we receive from Kronos, as it relates to the amount of deferred income taxes we recognize on our undistributed equity in earnings (losses) of Kronos. Kronos has substantial net operating losses in Germany and Belgium, the benefit of which Kronos had previously recognized under the more-likely-than-not recognition criteria. In the second quarter of 2015, Kronos determined that such losses did not meet the more-likely-than-not recognition criteria, and as a result Kronos recognized a non-cash deferred income tax expense of $150.3 million in the second quarter of 2015 as a valuation allowance against Kronos’ net deferred income tax assets in such jurisdictions. Kronos recognized an additional $2.3 million non-cash deferred income tax asset valuation allowance during the third quarter of 2015, due to losses recognized by its German and Belgian operations during such period. The rate difference related to our equity in losses of Kronos in the first nine months of 2015 includes our equity in such non-cash deferred income tax expenses recognized by Kronos. Tax authorities are examining certain of our U.S. and non-U.S. tax returns, including those of Kronos, and tax authorities have or may propose tax deficiencies, including penalties and interest. We cannot guarantee these tax matters will be resolved in our favor due to the inherent uncertainties involved in settlement initiatives and court and tax proceedings. We believe we have adequate accruals for additional taxes and related interest expense which could ultimately result from tax examinations. We believe the ultimate disposition of tax examinations should not have a material adverse effect on our consolidated financial position, results of operations or liquidity. In the first quarter of 2015, we recognized a non-cash income tax benefit of $3.0 million related to the release of a portion of our reserve for uncertain tax positions due to the expiration of the applicable statute of limitations. We currently estimate that our unrecognized tax benefits will not change materially during the next twelve months. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note 12 – Defined benefit plans – The components of net periodic defined benefit pension cost (income) are presented in the table below. Three months ended Nine months ended September 30, September 30, 2014 2015 2014 2015 (In thousands) Interest cost $ 631 $ 597 $ 1,903 $ 1,801 Expected return on plan assets (856 ) (840 ) (2,564 ) (2,516 ) Recognized actuarial losses 267 349 721 1,025 Total $ 42 $ 106 $ 60 $ 310 Postretirement benefits – The components of net periodic postretirement benefits other than pension (OPEB) income are presented in the table below. Three months ended Nine months ended September 30, September 30, 2014 2015 2014 2015 (In thousands) Interest cost $ 29 $ 27 $ 86 $ 81 Amortization of prior service credit (161 ) (155 ) (483 ) (466 ) Recognized actuarial gain (44 ) (25 ) (132 ) (76 ) Total $ (176 ) $ (153 ) $ (529 ) $ (461 ) Contributions – We currently expect our 2015 contributions to our defined benefit pension plans and other postretirement plans to be approximately $1.3 million. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13 – Commitments and contingencies: General We are involved in various environmental, contractual, product liability, patent (or intellectual property), employment and other claims and disputes incidental to our current and former businesses. At least quarterly our management discusses and evaluates the status of any pending litigation or claim to which we are a party or which has been asserted against us. The factors considered in such evaluation include, among other things, the nature of such pending cases and claim, the status of such pending cases and claims, the advice of legal counsel and our experience in similar cases and claims (if any). Based on such evaluation, we make a determination as to whether we believe (i) it is probable a loss has been incurred, and if so if the amount of such loss (or a range of loss) is reasonably estimable, or (ii) it is reasonably possible but not probable a loss has been incurred, and if so if the amount of such loss (or a range of loss) is reasonably estimable, or (iii) the probability a loss has been incurred is remote. 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 that these actions are without merit, and we intend to continue to deny all allegations of wrongdoing and liability and to defend against all actions vigorously. We do not believe it is probable that we have incurred any liability with respect to all of the lead pigment litigation cases to which we are a party, and liability to us that may result, if any, in this regard cannot be reasonably estimated, because: ● ● ● Accordingly, we have not accrued any amounts for any of the pending lead pigment and lead-based paint litigation cases filed by or on behalf of states, counties, cities or their public housing authorities and school districts, or those asserted as class actions. In addition, we have determined that liability to us which may result, if any, cannot be reasonably estimated because there is no prior history of a loss of this nature on which an estimate could be made and there is no substantive information available upon which an estimate could be based. In one of these lead pigment cases, in April 2000 we were served with a complaint in County of Santa Clara v. Atlantic Richfield Company, et al The Santa Clara case is unusual in that this is the second time that an adverse verdict in the lead pigment litigation has been entered against NL (the first adverse verdict against NL was ultimately overturned on appeal). We have concluded that the likelihood of a loss in this case has not reached a standard of “probable” as contemplated by ASC 450, given (i) the substantive, substantial and meritorious grounds on which the adverse verdict in the Santa Clara case will be appealed, (ii) the uniqueness of the Santa Clara verdict (i.e. no final, non-appealable verdicts have ever been rendered against us, or any of the other former lead pigment manufacturers, based on the public nuisance theory of liability or otherwise), and (iii) the rejection of the public nuisance theory of liability as it relates to lead pigment matters in many other jurisdictions (no jurisdiction in which a plaintiff has asserted a public nuisance theory of liability has ever successfully been upheld). In addition, liability that may result, if any, cannot be reasonably estimated, as NL continues to have no basis on which an estimate of liability could be made, as discussed above. However, as with any legal proceeding, there is no assurance that any appeal would be successful, and it is reasonably possible, based on the outcome of the appeals process, that NL may in the future incur some liability resulting in the recognition of a loss contingency accrual that could have a material adverse impact on our results of operations, financial position and liquidity. New cases may continue to be filed against 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. and non-U.S. statutes, the resolution of which typically involves the establishment of compliance programs. It is possible that future developments, such as stricter requirements of environmental laws and enforcement policies, could adversely affect our production, handling, use, storage, transportation, sale or disposal of such substances. We believe that all of our facilities are in substantial compliance with applicable environmental laws. Certain properties and facilities used in 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: ● ● ● ● ● ● ● ● In addition, the imposition of more stringent standards or requirements under environmental laws or regulations, new developments or changes regarding site cleanup costs or the allocation of costs among PRPs, solvency of other PRPs, the results of future testing and analysis undertaken with respect to certain sites or a determination that we are potentially responsible for the release of hazardous substances at other sites, could cause our expenditures to exceed our current estimates. We cannot assure you that actual costs will not exceed accrued amounts or the upper end of the range for sites for which estimates have been made, and we cannot assure you that costs will not be incurred for sites where no estimates presently can be made. Further, additional environmental and related matters may arise in the future. If we were to incur any future liability, this could have a material adverse effect on our consolidated financial statements, results of operations and liquidity. We record liabilities related to environmental remediation and related matters (including costs associated with damages for personal injury or property damage and/or damages for injury to natural resources) when estimated future expenditures are probable and reasonably estimable. We adjust such accruals as further information becomes available to us or as circumstances change. Unless the amounts and timing of such estimated future expenditures are fixed and reasonably determinable, we generally do not discount estimated future expenditures to their present value due to the uncertainty of the timing of the payout. We recognize recoveries of costs from other parties, if any, as assets when their receipt is deemed probable. At December 31, 2014 and September 30, 2015, we have 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. Changes in the accrued environmental remediation and related costs during the first nine months of 2015 are as follows: Amount (In thousands) Balance at the beginning of the period $ 110,015 Additions charged to expense, net 2,530 Payments, net (934 ) Balance at the end of the period $ 111,611 Amounts recognized in the Condensed Consolidated Balance Sheet at the end of the period: Current liability $ 6,989 Noncurrent liability 104,622 Balance at the end of the period $ 111,611 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 September 30, 2015, we had accrued approximately $112 million related to approximately 43 sites associated with remediation and related matters that 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 $166 million, including the amount currently accrued. We believe that it is not reasonably possible to estimate the range of costs for certain sites. At September 30, 2015, there were approximately 5 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 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. For a complete discussion of certain litigation involving us and certain of our former insurance carriers, refer to our 2014 Annual Report. Other litigation We have been named as a defendant in various lawsuits in several jurisdictions, alleging personal injuries as a result of occupational exposure primarily to products manufactured by our former operations containing asbestos, silica and/or mixed dust. In addition, some plaintiffs allege exposure to asbestos from working in various facilities previously owned and/or operated by us. There are 166 of these types of cases pending, involving a total of approximately 712 plaintiffs. In addition, the claims of approximately 8,692 plaintiffs have been administratively dismissed or placed on the inactive docket in Ohio state court. We do not expect these claims will be re-opened unless the plaintiffs meet the courts’ medical criteria for asbestos-related claims. We have not accrued any amounts for this litigation because of the uncertainty of liability and inability to reasonably estimate the liability, if any. To date, we have not been adjudicated liable in any of these matters. Based on information available to us, including: · facts concerning historical operations, · the rate of new claims, · the number of claims from which we have been dismissed, and · our prior experience in the defense of these matters, we believe that the range of reasonably possible outcomes of these matters will be consistent with our historical costs (which are not material). Furthermore, we do not expect any reasonably possible outcome would involve amounts material to our consolidated financial position, results of operations or liquidity. We have sought and will continue to vigorously seek, dismissal and/or a finding of no liability from each claim. In addition, from time to time, we have received notices regarding asbestos or silica claims purporting to be brought against former subsidiaries, including notices provided to insurers with which we have entered into settlements extinguishing certain insurance policies. These insurers may seek indemnification from us. For a discussion of other legal proceedings to which we are a party, refer to our 2014 Annual Report. In addition to the litigation described above, we and our affiliate 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, 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. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | Note 14 – See Note 4 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 at December 31, 2014 and September 30, 2015: December 31, 2014 September 30, 2015 Carrying Fair Carrying Fair Amount Value Amount Value (In thousands) Cash, cash equivalents and restricted cash $ 77,975 $ 77,975 $ 93,118 $ 93,118 Noncontrolling interest in CompX common stock 14,428 19,936 15,167 18,199 The fair value of our noncontrolling interest in CompX stockholders’ equity is based upon its quoted market price at each balance sheet date, which represents Level 1. Due to their near-term maturities, the carrying amounts of accounts receivable and accounts payable are considered equivalent to fair value. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 15 – Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) |
Organization and Basis of Pre22
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | Organization – At September 30, 2015, Valhi, Inc. (NYSE: VHI) held approximately 83% of our outstanding common stock and a wholly-owned subsidiary of Contran Corporation held approximately 93% of Valhi’s outstanding common stock. Substantially all of Contran’s outstanding voting stock is held by a family trust established for the benefit of Lisa K. Simmons and Serena Simmons Connelly, daughters of Harold C. Simmons, and their children (for which Ms. Lisa Simmons and Ms. Connelly are co-trustees) or is held directly by Ms. Lisa Simmons and Ms. Connelly or persons or entities related to them, including their step-mother Annette C. Simmons, the widow of Mr. Simmons. Under a voting agreement entered into by all of the voting stockholders of Contran, effective in February 2014 and as amended, the size of the board of directors of Contran was fixed at five members, Ms. Lisa Simmons, Ms. Connelly and Ms. Annette Simmons (and in the event of their death, their heirs) each has the right to designate one of the five members of the Contran board and the remaining two members of the Contran board must consist of members of Contran management. Ms. Lisa Simmons, Ms. Connelly, and Ms. Annette Simmons each serve as members of the Contran board. The voting agreement expires in February 2017 (unless Ms. Lisa Simmons, Ms. Connelly and Ms. Annette Simmons otherwise unanimously agree), and the ability of Ms. Lisa Simmons, Ms. Connelly, and Ms. Annette Simmons to each designate one member of the Contran board is dependent upon each of their continued beneficial ownership of at least 5% of the combined voting stock of Contran. Consequently, Ms. Lisa Simmons, Ms. Connelly and Ms. Annette Simmons may be deemed to control Contran, Valhi and us. |
Basis of Presentation | Basis of presentation – Consolidated in this Quarterly Report are the results of our majority-owned subsidiary, CompX International Inc. We also own 30% of Kronos Worldwide, Inc. (Kronos). CompX (NYSE MKT: CIX) and Kronos (NYSE: KRO); each file periodic reports with the Securities and Exchange Commission (SEC). The unaudited Condensed Consolidated Financial Statements contained in this Quarterly Report have been prepared on the same basis as the audited Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2014 that we filed with the SEC on March 12, 2015 (the 2014 Annual Report). In our opinion, we have made all necessary adjustments (which include only normal recurring adjustments) in order to state fairly, in all material respects, our consolidated financial position, results of operations and cash flows as of the dates and for the periods presented. We have condensed the Consolidated Balance Sheet and Statement of Stockholders’ Equity at December 31, 2014 contained in this Quarterly Report as compared to our audited Consolidated Financial Statements at that date, and we have omitted certain information and footnote disclosures (including those related to the Consolidated Balance Sheet at December 31, 2014) normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Our results of operations for the interim periods ended September 30, 2015 may not be indicative of our operating results for the full year. The Condensed Consolidated Financial Statements contained in this Quarterly Report should be read in conjunction with our 2014 Consolidated Financial Statements contained in our 2014 Annual Report. Unless otherwise indicated, references in this report to “NL,” “we,” “us” or “our” refer to NL Industries, Inc. and its subsidiaries and affiliate, Kronos, taken as a whole. |
Accounts and Other Receivable23
Accounts and Other Receivables, Net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Schedule of Accounts Notes Loans and Financing Receivable | December 31, September 30, 2014 2015 (In thousands) Trade receivables - CompX $ 8,825 $ 11,687 Income taxes receivable from Valhi - 914 Accrued insurance recoveries 346 71 Other receivables 163 145 Allowance for doubtful accounts (78 ) (82 ) Total $ 9,256 $ 12,735 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | December 31, September 30, 2014 2015 (In thousands) Raw materials $ 3,393 $ 3,262 Work in process 10,271 9,902 Finished products 3,199 2,284 Total $ 16,863 $ 15,448 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Marketable Securities | Fair value measurement level Market value Cost basis Unrealized gain (In thousands) December 31, 2014 Valhi common stock 1 $ 92,131 $ 24,347 $ 67,784 September 30, 2015 Valhi common stock 1 $ 27,165 $ 24,347 $ 2,818 |
Investment in Kronos Worldwid26
Investment in Kronos Worldwide, Inc. (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Changes in Carrying Value of Investment | The change in the carrying value of our investment in Kronos during the first nine months of 2015 is summarized below. Amount (In millions) Balance at the beginning of the period $ 237.7 Equity in losses of Kronos (46.6 ) Dividends received from Kronos (15.8 ) Equity in Kronos' other comprehensive income: Marketable securities .9 Currency translation (23.6 ) Interest rate swap (1.1 ) Defined benefit pension plans 3.1 Balance at the end of the period $ 154.6 |
Selected Financial Information of Kronos Balance Sheet | Selected financial information of Kronos is summarized below: December 31, September 30, 2014 2015 (In millions) Current assets $ 886.2 $ 781.2 Property and equipment, net 479.7 431.3 Investment in TiO 2 89.0 81.4 Other noncurrent assets 187.6 18.8 Total assets $ 1,642.5 $ 1,312.7 Current liabilities $ 237.9 $ 204.7 Long-term debt 344.7 342.9 Accrued pension and postretirement benefits 245.2 219.1 Other noncurrent liabilities 33.6 38.3 Stockholders' equity 781.1 507.7 Total liabilities and stockholders' equity $ 1,642.5 $ 1,312.7 |
Selected Financial Information of Kronos Income Statement | Three months ended Nine months ended September 30, September 30, 2014 2015 2014 2015 (In millions) Net sales $ 414.8 $ 336.5 $ 1,278.4 $ 1,061.8 Cost of sales 319.1 293.3 1,008.4 894.7 Income (loss) from operations 47.9 (3.2 ) 118.2 18.6 Income tax expense (benefit) 12.3 (7.4 ) 27.0 147.1 Net income (loss) 31.9 (11.8 ) 79.3 (153.2 ) |
Other Noncurrent Assets, Net (T
Other Noncurrent Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Summary of Other Noncurrent Assets | December 31, September 30, 2014 2015 (In thousands) Restricted cash $ 1,420 $ 1,420 Assets held for sale 590 590 Other 133 484 Total $ 2,143 $ 2,494 |
Accrued and Other Current Lia28
Accrued and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued and Other Current Liabilities | December 31, September 30, 2014 2015 (In thousands) Employee benefits $ 8,278 $ 7,222 Professional fees 951 709 Payables to affiliates 659 76 Other 1,633 1,895 Total $ 11,521 $ 9,902 |
Other Noncurrent Liabilities (T
Other Noncurrent Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Noncurrent Liabilities | December 31, September 30, 2014 2015 (In thousands) Reserve for uncertain tax positions $ 16,832 $ 12,186 Insurance claims and expenses 589 634 Other 921 847 Total $ 18,342 $ 13,667 Our reserve for uncertain tax positions is discussed in Note 11. |
Other Comprehensive Income (L30
Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Comprehensive Income Loss Tax [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss attributable to NL stockholders, including amounts resulting from our investment in Kronos Worldwide (see Note 5), are presented in the table below. Three months ended Nine months ended September 30, September 30, 2014 2015 2014 2015 (In thousands) Accumulated other comprehensive loss, net of tax: Marketable securities: Balance at beginning of period $ 47,305 $ 39,968 $ 154,169 $ 47,112 Other comprehensive income (loss) - unrealized gains (losses) arising during the year 1,022 (34,513 ) (105,842 ) (41,657 ) Balance at end of period $ 48,327 $ 5,455 $ 48,327 $ 5,455 Currency translation: Balance at beginning of period $ (135,190 ) $ (165,944 ) $ (133,816 ) $ (154,173 ) Other comprehensive loss (9,215 ) (3,538 ) (10,589 ) (15,309 ) Balance at end of period $ (144,405 ) $ (169,482 ) $ (144,405 ) $ (169,482 ) Interest rate swap: Balance at beginning of period $ - $ - $ - $ - Other comprehensive loss - (733 ) - (733 ) Balance at end of period $ - $ (733 ) $ - $ (733 ) Defined benefit pension plans: Balance at beginning of period $ (55,589 ) $ (73,439 ) $ (56,644 ) $ (75,260 ) Other comprehensive income - amortization of net losses included in net periodic pension cost 530 902 1,585 2,723 Balance at end of period $ (55,059 ) $ (72,537 ) $ (55,059 ) $ (72,537 ) OPEB plans: Balance at beginning of period $ 962 $ 9 $ 1,275 $ 282 Other comprehensive loss - amortization of prior service credit and net gains included in net periodic OPEB cost (156 ) (137 ) (469 ) (410 ) Balance at end of period $ 806 $ (128 ) $ 806 $ (128 ) Total accumulated other comprehensive loss: Balance at beginning of period $ (142,512 ) $ (199,406 ) $ (35,016 ) $ (182,039 ) Other comprehensive loss (7,819 ) (38,019 ) (115,315 ) (55,386 ) Balance at end of period $ (150,331 ) $ (237,425 ) $ (150,331 ) $ (237,425 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Component of Income Taxes | Three months ended Nine months ended September 30, September 30, 2014 2015 2014 2015 (In millions) Expected tax expense (benefit), at U.S. federal statutory income tax rate of 35% $ 6.3 $ (.8 ) $ 10.0 $ (15.0 ) Rate differences on equity in earnings (losses) of Kronos (2.5 ) (2.7 ) (5.8 ) (7.4 ) Adjustment to the reserve for uncertain tax positions, net - - - (3.0 ) Nontaxable income .2 (.1 ) (.1 ) (.3 ) U.S. state income taxes and other, net (.2 ) .1 .5 .2 Total $ 3.8 $ (3.5 ) $ 4.6 $ (25.5 ) |
Components of Comprehensive Provision for Income Taxes Allocation | Three months ended Nine months ended September 30, September 30, 2014 2015 2014 2015 (In millions) Comprehensive provision (benefit) for income taxes allocable to: Net income (loss) $ 3.8 $ (3.5 ) $ 4.6 $ (25.5 ) Other comprehensive income (loss): Marketable securities .5 (18.6 ) (57.0 ) (22.4 ) Currency translation (5.0 ) (2.0 ) (5.7 ) (8.3 ) Interest rate swap - (.4 ) - (.4 ) Pension plans .3 .5 .9 1.5 OPEB plans (.1 ) - (.3 ) (.2 ) Total $ (.5 ) $ (24.0 ) $ (57.5 ) $ (55.3 ) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Defined Benefit Pension Plans | |
Components of Net Periodic Defined Benefit Cost (Income) | Defined benefit plans – The components of net periodic defined benefit pension cost (income) are presented in the table below. Three months ended Nine months ended September 30, September 30, 2014 2015 2014 2015 (In thousands) Interest cost $ 631 $ 597 $ 1,903 $ 1,801 Expected return on plan assets (856 ) (840 ) (2,564 ) (2,516 ) Recognized actuarial losses 267 349 721 1,025 Total $ 42 $ 106 $ 60 $ 310 |
OPEB | |
Components of Net Periodic Defined Benefit Cost (Income) | Postretirement benefits – The components of net periodic postretirement benefits other than pension (OPEB) income are presented in the table below. Three months ended Nine months ended September 30, September 30, 2014 2015 2014 2015 (In thousands) Interest cost $ 29 $ 27 $ 86 $ 81 Amortization of prior service credit (161 ) (155 ) (483 ) (466 ) Recognized actuarial gain (44 ) (25 ) (132 ) (76 ) Total $ (176 ) $ (153 ) $ (529 ) $ (461 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Changes in Accrued Environmental Remediation and Related Costs | Changes in the accrued environmental remediation and related costs during the first nine months of 2015 are as follows: Amount (In thousands) Balance at the beginning of the period $ 110,015 Additions charged to expense, net 2,530 Payments, net (934 ) Balance at the end of the period $ 111,611 Amounts recognized in the Condensed Consolidated Balance Sheet at the end of the period: Current liability $ 6,989 Noncurrent liability 104,622 Balance at the end of the period $ 111,611 |
Financial Instruments and Fai34
Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Instruments | The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure at December 31, 2014 and September 30, 2015: December 31, 2014 September 30, 2015 Carrying Fair Carrying Fair Amount Value Amount Value (In thousands) Cash, cash equivalents and restricted cash $ 77,975 $ 77,975 $ 93,118 $ 93,118 Noncontrolling interest in CompX common stock 14,428 19,936 15,167 18,199 |
Organization and Basis of Pre35
Organization and Basis of Presentation - Additional Information (Detail) | Sep. 30, 2015 |
Kronos | |
Organization And Basis Of Presentation [Line Items] | |
Parent company ownership interest | 30.00% |
Valhi Inc | |
Organization And Basis Of Presentation [Line Items] | |
Parent company ownership interest | 83.00% |
Contran Corporation | |
Organization And Basis Of Presentation [Line Items] | |
Parent company ownership interest | 93.00% |
Minimum ownership required to designate board member | 5.00% |
Accounts and Other Receivable36
Accounts and Other Receivables, Net - Schedule of Accounts Notes Loans and Financing Receivable (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Accrued insurance recoveries | $ 71 | $ 346 |
Other receivables | 145 | 163 |
Total | 12,735 | 9,256 |
CompX | ||
Receivables [Abstract] | ||
Trade receivables | 11,687 | 8,825 |
Allowance for doubtful accounts | (82) | $ (78) |
Valhi Inc | ||
Receivables [Abstract] | ||
Income taxes receivable from Valhi | $ 914 |
Inventories, Net - Schedule of
Inventories, Net - Schedule of Inventories, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 3,262 | $ 3,393 |
Work in process | 9,902 | 10,271 |
Finished products | 2,284 | 3,199 |
Total | $ 15,448 | $ 16,863 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Marketable Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule Of Available For Sale Securities [Line Items] | ||
Market value | $ 27,165 | $ 92,131 |
Level 1 | Valhi Inc | Common stock | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Market value | 27,165 | 92,131 |
Cost basis | 24,347 | 24,347 |
Unrealized gain | $ 2,818 | $ 67,784 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - Valhi Inc - Common stock - $ / shares shares in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule Of Available For Sale Securities [Line Items] | ||
Outstanding common stock, shares | 14.4 | 14.4 |
Common stock quoted market price per share | $ 1.89 | $ 6.41 |
Investment in Kronos Worldwid40
Investment in Kronos Worldwide, Inc. - Additional Information (Detail) - Kronos - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule Of Equity Method Investments [Line Items] | ||
Outstanding common stock, shares | 35.2 | 35.2 |
Aggregate market value | $ 218.7 | $ 458.6 |
Quoted market price per share | $ 6.21 | $ 13.02 |
Investment in Kronos Worldwid41
Investment in Kronos Worldwide, Inc. - Changes in Carrying Value of Investment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Balance at the beginning of the period | $ 237,719 | |||||||
Equity in losses of Kronos | $ (3,600) | $ 9,689 | (46,584) | $ 24,101 | ||||
Dividends received from Kronos | (15,849) | (15,849) | ||||||
Equity in Kronos' other comprehensive income: | ||||||||
Marketable securities | 5,455 | 48,327 | 5,455 | 48,327 | $ 39,968 | $ 47,112 | $ 47,305 | $ 154,169 |
Currency translation | (3,538) | $ (9,215) | (15,309) | $ (10,589) | ||||
Interest rate swap | (733) | (733) | ||||||
Balance at the end of the period | 154,588 | 154,588 | ||||||
Kronos | ||||||||
Balance at the beginning of the period | 237,700 | |||||||
Equity in losses of Kronos | (46,600) | |||||||
Dividends received from Kronos | (15,800) | |||||||
Equity in Kronos' other comprehensive income: | ||||||||
Marketable securities | 900 | 900 | ||||||
Currency translation | (23,600) | |||||||
Interest rate swap | (1,100) | |||||||
Balance at the end of the period | $ 154,600 | 154,600 | ||||||
Kronos | Defined Benefit Pension Plans | ||||||||
Equity in Kronos' other comprehensive income: | ||||||||
Defined benefit pension plans/ Other postretirement benefit plans | $ 3,100 |
Investment in Kronos Worldwid42
Investment in Kronos Worldwide, Inc. - Selected Financial Information of Kronos Balance Sheet (Detail) - Kronos - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule Of Equity Method Investments [Line Items] | ||
Current assets | $ 781.2 | $ 886.2 |
Property and equipment, net | 431.3 | 479.7 |
Investment in TiO2 joint venture | 81.4 | 89 |
Other noncurrent assets | 18.8 | 187.6 |
Total assets | 1,312.7 | 1,642.5 |
Current liabilities | 204.7 | 237.9 |
Long-term debt | 342.9 | 344.7 |
Accrued pension and postretirement benefits | 219.1 | 245.2 |
Other noncurrent liabilities | 38.3 | 33.6 |
Stockholders' equity | 507.7 | 781.1 |
Total liabilities and stockholders' equity | $ 1,312.7 | $ 1,642.5 |
Investment in Kronos Worldwid43
Investment in Kronos Worldwide, Inc. - Selected Financial Information of Kronos Income Statement (Detail) - Kronos - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule Of Equity Method Investments [Line Items] | ||||
Net sales | $ 336.5 | $ 414.8 | $ 1,061.8 | $ 1,278.4 |
Cost of sales | 293.3 | 319.1 | 894.7 | 1,008.4 |
Income (loss) from operations | (3.2) | 47.9 | 18.6 | 118.2 |
Income tax expense (benefit) | (7.4) | 12.3 | 147.1 | 27 |
Net income (loss) | $ (11.8) | $ 31.9 | $ (153.2) | $ 79.3 |
Other Noncurrent Assets, Net -
Other Noncurrent Assets, Net - Summary of Other Noncurrent Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Restricted cash | $ 1,420 | $ 1,420 |
Assets held for sale | 590 | 590 |
Other | 484 | 133 |
Total | $ 2,494 | $ 2,143 |
Accrued and Other Current Lia45
Accrued and Other Current Liabilities - Schedule of Accrued and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Payables And Accruals [Abstract] | ||
Employee benefits | $ 7,222 | $ 8,278 |
Professional fees | 709 | 951 |
Payables to affiliates | 76 | 659 |
Other | 1,895 | 1,633 |
Total | $ 9,902 | $ 11,521 |
Other Noncurrent Liabilities -
Other Noncurrent Liabilities - Summary of Other Noncurrent Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Other Liabilities Disclosure [Abstract] | ||
Reserve for uncertain tax positions | $ 12,186 | $ 16,832 |
Insurance claims and expenses | 634 | 589 |
Other | 847 | 921 |
Total | $ 13,667 | $ 18,342 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - Promissory Note With Valhi Inc | Sep. 30, 2015USD ($) |
Debt Instrument [Line Items] | |
Borrowing under credit facility | $ 0 |
Borrowing under credit facility | $ 40,000,000 |
Other Comprehensive Income (L48
Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Marketable securities, Balance at beginning of period | $ 39,968 | $ 47,305 | $ 47,112 | $ 154,169 |
Other comprehensive income (loss) - unrealized gains (losses) arising during the year | (34,513) | 1,022 | (41,657) | (105,842) |
Marketable securities, Balance at end of period | 5,455 | 48,327 | 5,455 | 48,327 |
Currency translation, Balance at beginning of period | (165,944) | (135,190) | (154,173) | (133,816) |
Other comprehensive loss | (3,538) | (9,215) | (15,309) | (10,589) |
Currency translation, Balance at end of period | (169,482) | (144,405) | (169,482) | (144,405) |
Other comprehensive loss | (733) | (733) | ||
Interest rate swap, Balance at end of period | (733) | (733) | ||
Balance at beginning of period | (199,406) | (142,512) | (182,039) | (35,016) |
Other comprehensive loss, net of tax | (38,019) | (7,819) | (55,386) | (115,315) |
Balance at end of period | (237,425) | (150,331) | (237,425) | (150,331) |
Defined Benefit Pension Plans | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | (73,439) | (55,589) | (75,260) | (56,644) |
Defined benefit pension plans/ Other postretirement benefit plans | 902 | 530 | 2,723 | 1,585 |
Balance at end of period | (72,537) | (55,059) | (72,537) | (55,059) |
OPEB | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | 9 | 962 | 282 | 1,275 |
Defined benefit pension plans/ Other postretirement benefit plans | (137) | (156) | (410) | (469) |
Balance at end of period | $ (128) | $ 806 | $ (128) | $ 806 |
Income Taxes - Component of Inc
Income Taxes - Component of Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Expected tax expense (benefit), at U.S. federal statutory income tax rate of 35% | $ (800) | $ 6,300 | $ (15,000) | $ 10,000 |
Rate differences on equity in earnings (losses) of Kronos | (2,700) | (2,500) | (7,400) | (5,800) |
Adjustment to the reserve for uncertain tax positions, net | (3,000) | |||
Nontaxable income | (100) | 200 | (300) | (100) |
U.S. state income taxes and other, net | 100 | (200) | 200 | 500 |
Total | $ (3,581) | $ 3,800 | $ (25,534) | $ 4,645 |
Income Taxes - Component of I50
Income Taxes - Component of Income Taxes (Parenthetical) (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% | 35.00% |
Income Taxes - Components of Co
Income Taxes - Components of Comprehensive Provision for Income Taxes Allocation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Comprehensive provision (benefit) for income taxes allocable to: | ||||
Net income (loss) | $ (3,581) | $ 3,800 | $ (25,534) | $ 4,645 |
Other comprehensive income (loss): | ||||
Currency translation | (2,000) | (5,000) | (8,300) | (5,700) |
Interest rate swap | (400) | (400) | ||
Total | (24,000) | (500) | (55,300) | (57,500) |
Valhi Inc | ||||
Other comprehensive income (loss): | ||||
Marketable securities | (18,600) | 500 | (22,400) | (57,000) |
Defined Benefit Pension Plans | ||||
Other comprehensive income (loss): | ||||
Defined benefit plans | $ 500 | 300 | 1,500 | 900 |
OPEB | ||||
Other comprehensive income (loss): | ||||
Defined benefit plans | $ (100) | $ (200) | $ (300) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | |
Income Tax Disclosure [Line Items] | |||
Income tax expense (benefit) adjustment | $ (3,000,000) | ||
Kronos | |||
Income Tax Disclosure [Line Items] | |||
Income taxes on dividends received | $ 0 | ||
Deferred income tax asset valuation allowance | $ 2,300,000 | $ 150,300,000 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Defined Benefit Cost (Income) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 597 | $ 631 | $ 1,801 | $ 1,903 |
Expected return on plan assets | (840) | (856) | (2,516) | (2,564) |
Recognized actuarial (gain) losses | 349 | 267 | 1,025 | 721 |
Total | 106 | 42 | 310 | 60 |
OPEB | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 27 | 29 | 81 | 86 |
Amortization of prior service credit | (155) | (161) | (466) | (483) |
Recognized actuarial (gain) losses | (25) | (44) | (76) | (132) |
Total | $ (153) | $ (176) | $ (461) | $ (529) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Expected contribution during 2015 | $ 1.3 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($)CasessitePlaintiff | Dec. 31, 2014USD ($) | |
Loss Contingencies [Line Items] | ||
Liable periods | twenty-year | |
Litigation settlement amount | $ 1,150,000 | |
Accrued environmental obligations approximately | $ 111,611 | $ 110,015 |
Sites associated with remediation | site | 43 | |
Remediation and related matters possible to estimate costs | $ 166,000 | |
Currently not able to estimate a range of costs to sites | site | 5 | |
Product Liability And Occupational Exposure Litigation Claims | ||
Loss Contingencies [Line Items] | ||
Number of cases pending | Cases | 166 | |
Administratively Dismissed Claims | Product Liability And Occupational Exposure Litigation Claims | ||
Loss Contingencies [Line Items] | ||
Number of plaintiffs involved | Cases | 8,692 | |
Pending Claims | Product Liability And Occupational Exposure Litigation Claims | ||
Loss Contingencies [Line Items] | ||
Number of plaintiffs involved | Plaintiff | 712 | |
Minimum | ||
Loss Contingencies [Line Items] | ||
Number of cases administratively dismissed or inactive | Cases | 100 |
Commitments and Contingencies56
Commitments and Contingencies - Changes in Accrued Environmental Remediation and Related Costs (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Balance at the beginning of the period | $ 110,015 | ||
Additions charged to expense, net | 2,530 | ||
Payments, net | (934) | ||
Balance at the end of the period | 111,611 | ||
Amounts recognized in the Condensed Consolidated Balance Sheet at the end of the period: | |||
Current liability | $ 6,989 | $ 6,984 | |
Noncurrent liability | 104,622 | 103,031 | |
Balance at the end of the period | $ 110,015 | $ 111,611 | $ 110,015 |
Financial Instruments and Fai57
Financial Instruments and Fair Value Measurements - Summary of Financial Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Noncontrolling interest in CompX common stock | $ 15,167 | $ 14,428 |
Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash, cash equivalents and restricted cash | 93,118 | 77,975 |
Noncontrolling interest in CompX common stock | 15,167 | 14,428 |
Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash, cash equivalents and restricted cash | 93,118 | 77,975 |
Noncontrolling interest in CompX common stock | $ 18,199 | $ 19,936 |