Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 02, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-5467 | |
Entity Registrant Name | VALHI, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 87-0110150 | |
Entity Address, Address Line One | 5430 LBJ Freeway | |
Entity Address, Address Line Two | 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 | VHI | |
Security Exchange Name | NYSE | |
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 | |
Entity Common Stock, Shares Outstanding | 28,294,793 | |
Entity Central Index Key | 0000059255 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 373.1 | $ 407 |
Restricted cash equivalents | 21.9 | 22.6 |
Marketable securities | 13.8 | 56.1 |
Accounts and other receivables, net | 397.6 | 340.4 |
Inventories, net | 475.4 | 596.1 |
Prepaid expenses and other | 42 | 53.2 |
Total current assets | 1,323.8 | 1,475.4 |
Other assets: | ||
Marketable securities | 5.3 | 4.8 |
Investment in TiO2 manufacturing joint venture | 101.2 | 111 |
Goodwill | 379.7 | 379.7 |
Deferred income taxes | 66.5 | 67 |
Other assets | 180.9 | 181.8 |
Total other assets | 733.6 | 744.3 |
Property and equipment: | ||
Land | 43.6 | 45.1 |
Buildings | 261.5 | 271.2 |
Equipment | 1,139.8 | 1,179.4 |
Mining properties | 83.6 | 89.2 |
Construction in progress | 23.1 | 23.6 |
Gross property and equipment | 1,551.6 | 1,608.5 |
Less accumulated depreciation and amortization | 1,075.6 | 1,091.2 |
Net property and equipment | 476 | 517.3 |
Total assets | 2,533.4 | 2,737 |
Current liabilities: | ||
Current maturities of long-term debt | 0.8 | 0.7 |
Accounts payable and accrued liabilities | 367.7 | 490.7 |
Income taxes | 10.3 | 15.7 |
Total current liabilities | 378.8 | 507.1 |
Noncurrent liabilities: | ||
Long-term debt | 497.4 | 545.8 |
Deferred income taxes | 13 | 17.1 |
Accrued pension costs | 141.4 | 151.6 |
Accrued environmental remediation and related costs | 93.1 | 93.2 |
Other liabilities | 122.7 | 127.5 |
Total noncurrent liabilities | 867.6 | 953.7 |
Equity: | ||
Preferred stock | 0 | 0 |
Common stock | 0.3 | 0.3 |
Additional paid-in capital | 669.9 | 669.5 |
Retained earnings | 499 | 475.8 |
Accumulated other comprehensive loss | (157) | (145.5) |
Treasury stock, at cost | (49.6) | (49.6) |
Total Valhi stockholders' equity | 962.6 | 950.5 |
Noncontrolling interest in subsidiaries | 324.4 | 325.7 |
Total equity | 1,287 | 1,276.2 |
Total liabilities and equity | 2,533.4 | 2,737 |
Commitments and contingencies (Notes 13 and 16) | ||
Related Party | ||
Noncurrent liabilities: | ||
Payable to affiliate - income taxes | $ 18.5 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues and other income: | ||||
Net sales | $ 559.7 | $ 507.1 | $ 1,090.3 | $ 999.8 |
Other income, net | 3.7 | 10.5 | 15.9 | 23.6 |
Total revenues and other income | 563.4 | 517.6 | 1,106.2 | 1,023.4 |
Cost and expenses: | ||||
Cost of sales | 438.4 | 441.6 | 882.7 | 880.2 |
Selling, general and administrative | 74.9 | 68.4 | 143.5 | 137.2 |
Other components of net periodic pension and OPEB expense | 0.6 | 7.5 | 1.2 | 8.7 |
Interest | 11.9 | 7.2 | 23.2 | 14.2 |
Total costs and expenses | 525.8 | 524.7 | 1,050.6 | 1,040.3 |
Income (loss) before income taxes | 37.6 | (7.1) | 55.6 | (16.9) |
Income tax expense (benefit) | 7.9 | (6.8) | 12.3 | (12) |
Net income (loss) | 29.7 | (0.3) | 43.3 | (4.9) |
Noncontrolling interest in net income of subsidiaries | 9.8 | 2.9 | 15.6 | 4.1 |
Net income (loss) attributable to Valhi stockholders | $ 19.9 | $ (3.2) | $ 27.7 | $ (9) |
Amounts attributable to Valhi stockholders: | ||||
Basic net income (loss) per share (in dollars per share) | $ 0.70 | $ (0.11) | $ 0.97 | $ (0.31) |
Diluted net income (loss) per share (in dollars per share) | $ 0.70 | $ (0.11) | $ 0.97 | $ (0.31) |
Weighted average shares outstanding - basic (in shares) | 28.5 | 28.5 | 28.5 | 28.5 |
Weighted average shares outstanding - diluted (in shares) | 28.5 | 28.5 | 28.5 | 28.5 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 29.7 | $ (0.3) | $ 43.3 | $ (4.9) |
Other comprehensive income (loss), net of tax: | ||||
Currency translation | 1.6 | (4.9) | (16.7) | (11) |
Defined benefit pension plans | 0.7 | 5.6 | 1.4 | 6.3 |
Other | (0.1) | (0.2) | (0.2) | (0.4) |
Total other comprehensive income (loss), net | 2.2 | 0.5 | (15.5) | (5.1) |
Comprehensive income (loss) | 31.9 | 0.2 | 27.8 | (10) |
Comprehensive income attributable to noncontrolling interest | 10.4 | 2.6 | 11.6 | 2.3 |
Comprehensive income (loss) attributable to Valhi stockholders | $ 21.5 | $ (2.4) | $ 16.2 | $ (12.3) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | Non-controlling interest | Total |
Balance at Dec. 31, 2022 | $ 0.3 | $ 669.5 | $ 494.8 | $ (143.9) | $ (49.6) | $ 348.2 | $ 1,319.3 |
Net income (loss) | (9) | 4.1 | (4.9) | ||||
Dividends paid to noncontrolling interest | (12.7) | (12.7) | |||||
Cash dividends | (4.5) | (4.5) | |||||
Other comprehensive income (loss), net | (3.3) | (1.8) | (5.1) | ||||
Equity transactions with noncontrolling interest, net and other | (2.2) | (2.2) | |||||
Balance at Jun. 30, 2023 | 0.3 | 669.5 | 481.3 | (147.2) | (49.6) | 335.6 | 1,289.9 |
Balance at Mar. 31, 2023 | 0.3 | 668.6 | 486.7 | (148) | (49.6) | 342.4 | 1,300.4 |
Net income (loss) | (3.2) | 2.9 | (0.3) | ||||
Dividends paid to noncontrolling interest | (7.5) | (7.5) | |||||
Cash dividends | (2.2) | (2.2) | |||||
Other comprehensive income (loss), net | 0.8 | (0.3) | 0.5 | ||||
Equity transactions with noncontrolling interest, net and other | 0.9 | (1.9) | (1) | ||||
Balance at Jun. 30, 2023 | 0.3 | 669.5 | 481.3 | (147.2) | (49.6) | 335.6 | 1,289.9 |
Balance at Dec. 31, 2023 | 0.3 | 669.5 | 475.8 | (145.5) | (49.6) | 325.7 | 1,276.2 |
Net income (loss) | 27.7 | 15.6 | 43.3 | ||||
Dividends paid to noncontrolling interest | (12.9) | (12.9) | |||||
Cash dividends | (4.5) | (4.5) | |||||
Other comprehensive income (loss), net | (11.5) | (4) | (15.5) | ||||
Equity transactions with noncontrolling interest, net and other | 0.4 | 0.4 | |||||
Balance at Jun. 30, 2024 | 0.3 | 669.9 | 499 | (157) | (49.6) | 324.4 | 1,287 |
Balance at Mar. 31, 2024 | 0.3 | 669.5 | 481.3 | (158.6) | (49.6) | 321.6 | 1,264.5 |
Net income (loss) | 19.9 | 9.8 | 29.7 | ||||
Dividends paid to noncontrolling interest | (7.6) | (7.6) | |||||
Cash dividends | (2.2) | (2.2) | |||||
Other comprehensive income (loss), net | 1.6 | 0.6 | 2.2 | ||||
Equity transactions with noncontrolling interest, net and other | 0.4 | 0.4 | |||||
Balance at Jun. 30, 2024 | $ 0.3 | $ 669.9 | $ 499 | $ (157) | $ (49.6) | $ 324.4 | $ 1,287 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement Of Stockholders Equity [Abstract] | ||||
Cash dividends per share | $ 0.08 | $ 0.08 | $ 0.16 | $ 0.16 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 43.3 | $ (4.9) |
Depreciation and amortization | 32.4 | 27.3 |
Loss on pension plan termination | 0 | 6.2 |
Benefit plan expense less than cash funding | (4.4) | (4.2) |
Deferred income taxes | (4) | (24.6) |
Distributions from (contributions to) TiO2 manufacturing joint venture, net | 9.8 | (8.3) |
Gain from sale of land | 0 | (1.5) |
Other, net | 4.3 | 4.3 |
Change in assets and liabilities: | ||
Accounts and other receivables, net | (79.3) | (58.1) |
Inventories, net | 103.4 | 68.6 |
Land held for development, net | 1.5 | (8.6) |
Accounts payable and accrued liabilities | (130.1) | (84) |
Income taxes | (5.5) | 0.5 |
Accounts with affiliates | (0.3) | (15.2) |
Other, net | 13.6 | 7.4 |
Net cash used in operating activities | (15.3) | (95.1) |
Cash flows from investing activities: | ||
Capital expenditures | (8.8) | (34.4) |
Purchases of marketable securities | (1) | (51.5) |
Proceeds from disposal of marketable securities | 43.8 | 27.4 |
Proceeds from land sales | 0 | 1.8 |
Net cash provided by (used in) investing activities | 34 | (56.7) |
Cash flows from financing activities: | ||
Kronos term loan from Contran | 53.7 | 0 |
Principal payments on indebtedness | (83.7) | (16.6) |
Deferred financing fees | (5.8) | 0 |
Valhi cash dividends paid | (4.5) | (4.5) |
Distributions to noncontrolling interest in subsidiaries | (12.9) | (12.7) |
Subsidiary treasury stock acquired | 0 | (2.9) |
Net cash used in financing activities | (53.2) | (36.7) |
Cash, cash equivalents and restricted cash and cash equivalents - net change from: | ||
Operating, investing and financing activities | (34.5) | (188.5) |
Effect of exchange rates on cash | (0.2) | (0.9) |
Balance at beginning of period | 462 | 562 |
Balance at end of period | 427.3 | 372.6 |
Cash paid for: | ||
Interest, net of amounts capitalized | 11.4 | 13.3 |
Income taxes, net | 35.7 | 22.7 |
Noncash investing activities: | ||
Change in accruals for capital expenditures | $ 0.5 | $ 2.4 |
Organization and basis of prese
Organization and basis of presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization and basis of presentation: | |
Organization and basis of presentation | Note 1 – Organization and basis of presentation: Organization – Basis of Presentation – The unaudited Condensed Consolidated Financial Statements contained in this Quarterly Report have been prepared on the same basis as the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 that we filed with the SEC on March 7, 2024 (the “2023 Annual Report”). In our opinion, we have made all necessary adjustments (which include only normal recurring adjustments, except as noted below), in order to state fairly, in all material respects, our consolidated financial position, results of operations and cash flows as of the dates and for the periods presented. We have condensed the Consolidated Balance Sheet at December 31, 2023 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, 2023) 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 June 30, 2024 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 2023 Consolidated Financial Statements contained in our 2023 Annual Report. Unless otherwise indicated, references in this report to “we,” “us” or “our” refer to Valhi, Inc. and its subsidiaries (NYSE: VHI), taken as a whole. Revision of Previously Issued Financial Statements – As a result of the revision, our deferred income tax liabilities decreased by $14.7 million with a corresponding increase in retained earnings as of December 31, 2023. Additionally, retained earnings increased by $12.5 million, $11.6 million, and $13.5 million, as of December 31, 2022, March 31, 2023, and June 30, 2023, respectively. In addition, our income tax benefit increased by $1.9 million and $1.0 million for the three and six-month periods ended June 30, 2023, respectively. Net loss and comprehensive loss decreased correspondingly in the same periods. Basic and diluted net loss |
Business segment information
Business segment information | 6 Months Ended |
Jun. 30, 2024 | |
Business segment information | |
Business segment information | Note 2 – Business segment information: % controlled at Business segment Entity June 30, 2024 Chemicals Kronos 81% Component products CompX 87% Real estate management and development BMI and LandWell 63% - 77% Our control of Kronos includes approximately 50% we hold directly and approximately 31% held directly by NL. We own approximately 83% of NL. Our control of CompX is through NL. We own approximately 63% of BMI. Our control of LandWell includes the approximately 27% we hold directly and 50% held by BMI. Three months ended Six months ended June 30, June 30, 2023 2024 2023 2024 (In millions) Net sales: Chemicals $ 443.2 $ 500.5 $ 869.5 $ 979.3 Component products 36.6 35.9 77.8 73.9 Real estate management and development 27.3 23.3 52.5 37.1 Total net sales $ 507.1 $ 559.7 $ 999.8 $ 1,090.3 Cost of sales: Chemicals $ 399.4 $ 400.7 $ 795.2 $ 808.6 Component products 26.3 24.8 54.8 53.1 Real estate management and development 15.9 12.9 30.2 21.0 Total cost of sales $ 441.6 $ 438.4 $ 880.2 $ 882.7 Gross margin: Chemicals $ 43.8 $ 99.8 $ 74.3 $ 170.7 Component products 10.3 11.1 23.0 20.8 Real estate management and development 11.4 10.4 22.3 16.1 Total gross margin $ 65.5 $ 121.3 $ 119.6 $ 207.6 Operating income (loss): Chemicals $ (2.6) $ 40.5 $ (17.7) $ 63.3 Component products 4.4 5.1 11.4 8.8 Real estate management and development 10.2 9.2 20.8 14.2 Total operating income 12.0 54.8 14.5 86.3 General corporate items: Interest income and other 4.7 5.5 9.6 11.2 Gain on land sales 1.5 — 1.5 — Other components of net periodic pension and OPEB expense (7.5) (.6) (8.7) (1.2) Changes in market value of Valhi common stock held by subsidiaries (1.1) .1 (2.2) .6 General expenses, net (9.5) (10.3) (17.4) (18.1) Interest expense (7.2) (11.9) (14.2) (23.2) Income (loss) before income taxes $ (7.1) $ 37.6 $ (16.9) $ 55.6 Segment results we report may differ from amounts separately reported by our various subsidiaries due to purchase accounting adjustments and related amortization or differences in the way we define operating income. Intersegment sales are not material. Included in the determination of Chemicals operating loss is a business interruption insurance settlement gain of $.5 million and $2.2 million recognized in the second quarter and first six months of 2023, respectively. See Note 12. |
Accounts and other receivables,
Accounts and other receivables, net | 6 Months Ended |
Jun. 30, 2024 | |
Accounts and other receivables, net | |
Accounts and other receivables, net | Note 3 – Accounts and other receivables, net: December 31, June 30, 2023 2024 (In millions) Trade accounts receivable: Kronos $ 273.6 $ 355.7 CompX 17.1 15.5 BMI/LandWell 1.2 .5 VAT and other receivables 33.4 26.3 Refundable income taxes 1.8 2.5 Receivables from affiliates: Louisiana Pigment Company, L.P. (LPC) 16.9 — Contran - trade items .2 .2 Other .4 .5 Allowance for doubtful accounts (4.2) (3.6) Total $ 340.4 $ 397.6 |
Inventories, net
Inventories, net | 6 Months Ended |
Jun. 30, 2024 | |
Inventories, net | |
Inventories, net | Note 4 – Inventories, net: December 31, June 30, 2023 2024 (In millions) Raw materials: Chemicals $ 188.3 $ 113.8 Component products 5.7 5.3 Total raw materials 194.0 119.1 Work in process: Chemicals 30.8 34.4 Component products 19.1 17.1 Total in-process products 49.9 51.5 Finished products: Chemicals 250.4 207.8 Component products 5.9 5.0 Total finished products 256.3 212.8 Supplies (chemicals) 95.9 92.0 Total $ 596.1 $ 475.4 |
Marketable securities
Marketable securities | 6 Months Ended |
Jun. 30, 2024 | |
Marketable securities | |
Marketable securities | Note 5 – Marketable securities: Cost or amortized Unrealized Market value cost loss, net (In millions) December 31, 2023: Current assets $ 56.1 $ 56.1 $ — Noncurrent assets $ 4.8 $ 5.0 $ (.2) June 30, 2024: Current assets $ 13.8 $ 13.8 $ — Noncurrent assets $ 5.3 $ 5.3 $ — Our marketable securities consist of investments in marketable equity and debt securities. We classify all of our marketable securities as available-for-sale. Our marketable equity securities are carried at fair value using quoted market prices, primarily Level 1 inputs as defined by ASC Topic 820, Fair Value Measurements and Disclosures |
Other noncurrent assets
Other noncurrent assets | 6 Months Ended |
Jun. 30, 2024 | |
Other noncurrent assets | |
Other noncurrent assets | Note 6 – Other noncurrent assets: December 31, June 30, 2023 2024 (In millions) Restricted cash and cash equivalents $ 32.4 $ 32.3 Note receivables - OPA 69.1 66.8 Operating lease right-of-use assets 22.7 22.1 Land held for development 19.4 16.2 IBNR receivables 13.4 13.4 Pension asset 8.1 8.6 Other 16.7 21.5 Total $ 181.8 $ 180.9 Note receivables - OPA |
Long-term debt
Long-term debt | 6 Months Ended |
Jun. 30, 2024 | |
Long-term debt | |
Long-term debt | Note 7 – Long-term debt: December 31, June 30, 2023 2024 (In millions) Valhi: Contran credit facility $ 93.4 $ 62.6 Subsidiary debt: Kronos: Kronos International, Inc. 9.50% Senior Secured Notes due 2029 — 289.8 Kronos International, Inc. 3.75% Senior Secured Notes due 2025 440.9 80.2 Subordinated, Unsecured Term Loan from Contran — 53.7 LandWell: Note payable to Western Alliance Business Trust 12.2 11.9 Total subsidiary debt 453.1 435.6 Total debt 546.5 498.2 Less current maturities .7 .8 Total long-term debt $ 545.8 $ 497.4 Valhi Contran credit facility Kronos – 9.50% Senior Secured Notes due 2029 – The New Notes and the Additional New Notes (as defined below): ● bear interest at 9.50% per annum , payable semi-annually on March 15 and September 15 of each year, payments begin on September 15, 2024 ; ● have a maturity date of March 15, 2029 . Prior to March 15, 2026, Kronos may redeem some or all of the New Notes at a price equal to 100% of the principal amount thereof, plus an applicable premium as of the date of the redemption as described in the indenture governing its New Notes plus accrued and unpaid interest. On or after March 15, 2026, Kronos may redeem the New Notes at redemption prices ranging from 104.750% of the principal amount, declining to 100% on or after March 15, 2028, plus accrued and unpaid interest. In addition, on or before March 15, 2026, Kronos may redeem up to 40% of the New Notes with the net proceeds of certain public or private equity offerings at 109.50% of the principal amount, plus accrued and unpaid interest, provided that following the redemption at least 50% of the New Notes remain outstanding . If Kronos or Kronos’ subsidiaries experience certain change of control events, as outlined in the indenture governing its New Notes , Kronos would be required to make an offer to purchase the New Notes at 101% of the principal amount thereof, plus accrued and unpaid interest. Kronos would also be required to make an offer to purchase a specified portion of the New Notes at par value, plus accrued and unpaid interest, in the event that Kronos and its subsidiaries generate a certain amount of net proceeds from the sale of assets outside the ordinary course of business, and such net proceeds are not otherwise used for specified purposes within a specified time period as described in the indenture governing Kronos’ New Notes; ● are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis by Kronos Worldwide, Inc. and each of its direct and indirect domestic, wholly-owned subsidiaries; ● are collateralized by a first priority lien on (i) 100% of the common stock or other ownership interests of each existing and future direct domestic subsidiary of KII and the guarantors, and (ii) 65% of the voting common stock or other ownership interests and 100% of the non-voting common stock or other ownership interests of each non-U.S. subsidiary that is directly owned by KII or any guarantor; ● contain a number of covenants and restrictions which, among other things, restrict Kronos’ ability to incur or guarantee additional debt, incur liens, pay dividends or make other restricted payments, or merge or consolidate with, or sell or transfer substantially all of its assets to, another entity, and contain other provisions and restrictive covenants customary in lending transactions of this type (however, there are no ongoing financial maintenance covenants); and ● contain customary default provisions, including a default under any of Kronos’ other indebtedness in excess of $50.0 million. At June 30, 2024, the carrying value of the New Notes (€276.174 million aggregate principal amount outstanding) is stated net of unamortized debt issuance costs of $5.5 million. As a result of the note exchange, in the first quarter of 2024 we recognized a non-cash pre-tax interest charge of $1.5 million included in interest expense related to the write-off of the deferred financing costs associated with the Old Notes. As of June 30, 2024, Kronos has capitalized $6.0 million in debt issuance costs associated with the New Notes. On July 30, 2024, Kronos’ wholly-owned subsidiary, KII, issued an additional €75 million principal amount of 9.50% Senior Secured Notes due 2029 (the “Additional New Notes”). The Additional New Notes are additional notes to the existing €276.174 aggregate principal amount of New Notes issued on February 12, 2024. The Additional New Notes were issued at a premium of 107.50% of their principal amount, plus accrued interest from February 12, 2024, resulting in net proceeds of approximately $90 million, after fees and estimated expenses. The Additional New Notes will be fungible with the New Notes, will be treated as a single series with the New Notes and will have the same terms as the New Notes, other than their date of issuance and issue price. The proceeds from the Additional New Notes were used to pay down borrowings under the Global Revolver. Subordinated, Unsecured Term Loan from Contran – Contran Term Loan 3.75% Senior Secured Notes due 2025 – Revolving credit facility – Available borrowings are based on formula-determined amounts of eligible trade receivables and inventories, as defined in the agreement, less any outstanding letters of credit issued under the Global Revolver. Borrowings by Kronos’ Canadian, Belgian and German subsidiaries are limited to U.S. $35 million, €30 million and €60 million, respectively. Any amounts outstanding under the Global Revolver bear interest, at Kronos’ option, at the applicable non-base rate (SOFR, adjusted CORRA or EURIBOR, depending on the currency of the borrowing) plus a margin ranging from 1.5% to 2.0% , or at the applicable base rate, as defined in the agreement, plus a margin ranging from .5% to 2.0% . U.S. Dollar or Canadian Dollar non-base rate loans, as well as Euro non-base rate and Euro base rate loans are subject to a 0.25% floor, plus the applicable margin. The Global Revolver is collateralized by, among other things, a first priority lien on the borrowers’ trade receivables and inventories. The facility contains a number of covenants and restrictions customary in lending transactions of this type which, among other things, restrict the borrowers’ ability to incur additional debt, incur liens, pay additional dividends or merge or consolidate with, or sell or transfer all or substantially all of their assets to another entity and, under certain conditions, requires the maintenance of a fixed charge coverage ratio, as defined in the agreement, of at least 1.0 to 1.0. Other – |
Accounts payable and accrued li
Accounts payable and accrued liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Accounts payable and accrued liabilities | |
Accounts payable and accrued liabilities | Note 8 – Accounts payable and accrued liabilities: December 31, June 30, 2023 2024 (In millions) Accounts payable: Kronos $ 218.7 $ 129.9 CompX 3.1 3.8 BMI/LandWell 6.7 5.5 Total 228.5 139.2 Payables to affiliates: LPC 19.9 18.4 Contran - income taxes 10.2 14.8 Deferred income 88.8 50.4 Employee benefits 36.2 34.5 Accrued sales discounts and rebates 22.5 18.1 Accrued development costs 15.1 17.2 Accrued litigation settlement 11.8 11.9 Interest 5.1 11.9 Environmental remediation and related costs 3.7 3.9 Operating lease liabilities 3.9 3.7 Other 45.0 43.7 Total $ 490.7 $ 367.7 The accrued litigation settlement is discussed in Note 16. |
Other noncurrent liabilities
Other noncurrent liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Other noncurrent liabilities | |
Other noncurrent liabilities | Note 9 – Other noncurrent liabilities: December 31, June 30, 2023 2024 (In millions) Accrued development costs $ 42.3 $ 41.4 Operating lease liabilities 18.6 18.1 Accrued litigation settlement 16.1 16.3 Insurance claims and expenses 14.9 15.0 Deferred income 15.5 12.2 Other postretirement benefits 7.4 7.1 Employee benefits 4.9 4.6 Other 7.8 8.0 Total $ 127.5 $ 122.7 The accrued litigation settlement is discussed in Note 16. |
Revenue - disaggregation of sal
Revenue - disaggregation of sales | 6 Months Ended |
Jun. 30, 2024 | |
Revenue - disaggregation of sales | |
Revenue - disaggregation of sales | Note 10 – Revenue – disaggregation of sales: The following table disaggregates the net sales of our Chemicals Segment by place of manufacture (point of origin) and to the location of the customer (point of destination), which are the categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Three months ended Six months ended June 30, June 30, 2023 2024 2023 2024 (In millions) Net sales - point of origin: United States $ 233.4 $ 279.7 $ 489.2 $ 520.6 Germany 193.6 216.2 379.6 428.4 Canada 83.9 97.6 174.8 186.9 Norway 75.3 77.7 147.2 148.7 Belgium 45.5 61.0 114.3 130.6 Eliminations (188.5) (231.7) (435.6) (435.9) Total $ 443.2 $ 500.5 $ 869.5 $ 979.3 Net sales - point of destination: Europe $ 199.0 $ 222.6 $ 400.1 $ 437.5 North America 153.0 182.5 301.6 348.5 Other 91.2 95.4 167.8 193.3 Total $ 443.2 $ 500.5 $ 869.5 $ 979.3 The following table disaggregates the net sales of our Component Products Segment by major product line. Three months ended Six months ended June 30, June 30, 2023 2024 2023 2024 (In millions) Component Products: Net sales: Security products $ 25.6 $ 28.2 $ 53.0 $ 58.1 Marine components 11.0 7.7 24.8 15.8 Total $ 36.6 $ 35.9 $ 77.8 $ 73.9 Substantially all of the Real Estate Management and Development Segment’s sales are related to land sales in the second quarter and the first six months of 2023 and 2024. |
Defined benefit pension plans
Defined benefit pension plans | 6 Months Ended |
Jun. 30, 2024 | |
Defined benefit pension plans | |
Defined benefit pension plans | Note 11 – Defined benefit pension plans: The components of our net periodic defined benefit pension cost are presented in the table below. Three months ended Six months ended June 30, June 30, 2023 2024 2023 2024 (In millions) Service cost $ 1.5 $ 1.6 $ 3.1 $ 3.3 Interest cost 5.5 5.2 11.1 10.6 Expected return on plan assets (5.2) (5.6) (10.4) (11.2) Recognized net actuarial losses 1.0 1.0 1.9 1.9 Settlements 6.2 — 6.2 — Total $ 9.0 $ 2.2 $ 11.9 $ 4.6 In the second quarter of 2023, we completed a termination and buy-out of our United Kingdom pension plan resulting in a $6.2 million settlement loss. We expect to contribute the equivalent of approximately $18 million to all of our defined benefit pension plans during 2024. |
Other income, net
Other income, net | 6 Months Ended |
Jun. 30, 2024 | |
Other income, net | |
Other income, net | Note 12 – Other income, net: Six months ended June 30, 2023 2024 (In millions) Interest income and other: Interest and dividends $ 9.4 $ 11.0 Securities transactions, net .2 .2 Total 9.6 11.2 Gain on land sales 1.5 — Currency transactions, net 8.5 2.0 Insurance recoveries 2.2 .2 Other, net 1.8 2.5 Total $ 23.6 $ 15.9 Land sales Insurance recoveries Kronos recognized a gain of $2.2 million related to its Hurricane Laura business interruption claim in the first six months of 2023. |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income taxes | |
Income taxes | Note 13 – Income taxes: Three months ended Six months ended June 30, June 30, 2023 2024 2023 2024 (In millions) Expected tax expense (benefit) at U.S. federal statutory $ (1.4) $ 7.9 $ (3.5) $ 11.7 Non-U.S. tax rates (2.4) (.1) (2.4) (.1) Incremental net tax benefit on earnings and losses of U.S. and non-U.S. tax group companies (5.5) (3.5) (5.1) (4.3) Valuation allowance — 1.7 — 2.5 Global intangible low-tax income, net 1.6 1.1 .1 1.4 Adjustment to the reserve for uncertain tax positions, net .7 .1 (.7) .2 Adjustment of prior year taxes, net — — (.4) — Nondeductible expenses 1.0 .4 .5 .6 U.S. state income taxes and other, net (.8) .3 (.5) .3 Income tax expense (benefit) $ (6.8) $ 7.9 $ (12.0) $ 12.3 Comprehensive provision (benefit) for income taxes allocable to: Net income (loss) $ (6.8) $ 7.9 $ (12.0) $ 12.3 Other comprehensive income (loss): Currency translation (.6) .2 (1.4) (2.1) Pension plans .8 .3 1.1 .6 Other (.1) (.1) (.3) (.2) Total $ (6.7) $ 8.3 $ (12.6) $ 10.6 The amount shown in the preceding table of our income tax rate reconciliation for non-U.S. tax rates represents the result determined by multiplying the pre-tax earnings or losses of each of our non-U.S. subsidiaries by the difference between the applicable statutory income tax rate for each non-U.S. jurisdiction and the U.S. federal statutory tax rate. The amount shown on such table for incremental net tax benefit on earnings and losses on non-U.S. and non-tax group companies includes, as applicable, (i) deferred income taxes (or deferred income tax benefits) associated with the current year earnings (losses) of all our Chemicals Segment’s non-U.S. subsidiaries, (ii) current U.S. income taxes (or current income tax benefit) including U.S. personal holding company tax, as applicable, attributable to current-year income (losses) of one of our Chemicals Segment’s non-U.S. subsidiaries, which subsidiary is treated as a dual resident for U.S. income tax purposes, to the extent the current year income (losses) of such subsidiary is subject to U.S. income tax under the U.S. dual-resident provisions of the Internal Revenue Code, (iii) deferred income taxes associated with our direct investment in Kronos and (iv) current and deferred income taxes associated with distributions and earnings from our investments in LandWell and BMI. During the first six months of 2023, we recognized a non-cash deferred income tax benefit of $1.0 million relating to a decrease in our unrecognized tax benefits due to the expiration of certain statutes of limitations. See Note 1 for additional information related to the revision impacting income taxes. Tax authorities are examining certain of our U.S. and non-U.S. income tax returns and may propose tax deficiencies, including penalties and interest. We believe we have adequate accruals for additional taxes and related interest expense which could ultimately result from tax examinations. We believe the ultimate disposition of tax examinations should not have a material adverse effect on our consolidated financial position, results of operations or liquidity. We currently estimate that our unrecognized tax benefits will not change materially during the next twelve months. |
Noncontrolling interest in subs
Noncontrolling interest in subsidiaries | 6 Months Ended |
Jun. 30, 2024 | |
Noncontrolling interest in subsidiaries | |
Noncontrolling interest in subsidiaries | Note 14 – Noncontrolling interest in subsidiaries: December 31, June 30, 2023 2024 (In millions) Noncontrolling interest in net assets: Kronos Worldwide $ 209.0 $ 202.4 NL Industries 76.9 77.5 CompX International 22.0 22.1 BMI 11.0 13.7 LandWell 6.8 8.7 Total $ 325.7 $ 324.4 Six months ended June 30, 2023 2024 (In millions) Noncontrolling interest in net income (loss) of subsidiaries: Kronos Worldwide $ (4.5) $ 5.1 NL Industries (1.7) 2.5 CompX International 1.3 1.1 BMI 3.5 2.7 LandWell 5.5 4.2 Total $ 4.1 $ 15.6 |
Stockholders' equity
Stockholders' equity | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' equity | |
Stockholders' equity | Note 15 – Stockholders’ equity: Accumulated other comprehensive loss – Three months ended Six months ended June 30, June 30, 2023 2024 2023 2024 (In millions) Accumulated other comprehensive income (loss) (net of tax and Marketable securities: Balance at beginning of period $ 1.6 $ 1.7 $ 1.6 $ 1.7 Other comprehensive income: Unrealized loss arising during the period (.1) — (.1) — Balance at end of period $ 1.5 $ 1.7 $ 1.5 $ 1.7 Currency translation: Balance at beginning of period $ (96.0) $ (102.4) $ (91.5) $ (88.8) Other comprehensive income (loss) arising during the period (3.6) 1.2 (8.1) (12.4) Balance at end of period $ (99.6) $ (101.2) $ (99.6) $ (101.2) Defined benefit pension plans: Balance at beginning of period $ (54.4) $ (58.3) $ (55.0) $ (58.8) Other comprehensive income: Amortization of prior service cost and net losses .6 .5 1.2 1.0 Plan settlement 4.0 — 4.0 — Balance at end of period $ (49.8) $ (57.8) $ (49.8) $ (57.8) OPEB plans: Balance at beginning of period $ .8 $ .4 $ 1.0 $ .4 Other comprehensive income: Amortization of prior service credit and net losses (.1) (.1) (.3) (.1) Balance at end of period $ .7 $ .3 $ .7 $ .3 Total accumulated other comprehensive loss: Balance at beginning of period $ (148.0) $ (158.6) $ (143.9) $ (145.5) Other comprehensive income (loss) .8 1.6 (3.3) (11.5) Balance at end of period $ (147.2) $ (157.0) $ (147.2) $ (157.0) Other – |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Note 16 – Commitments and contingencies: Lead pigment litigation – NL NL’s former operations included the manufacture of lead pigments for use in paint and lead-based paint. NL, other former manufacturers of lead pigments for use in paint and lead-based paint (together, the “former pigment manufacturers”), and the Lead Industries Association (LIA), which discontinued business operations in 2002, have been named as defendants in various legal proceedings seeking damages for personal injury, property damage and governmental expenditures allegedly caused by the use of lead- based paints. Certain of these actions have been filed by or on behalf of states, counties, cities or their public housing authorities and school districts, and certain others have been asserted as class actions. These lawsuits seek recovery under a variety of theories, including public and private nuisance, negligent product design, negligent failure to warn, strict liability, breach of warranty, conspiracy/concert of action, aiding and abetting, enterprise liability, market share or risk contribution liability, intentional tort, fraud and misrepresentation, violations of state consumer protection statutes, supplier negligence and similar claims. The plaintiffs in these actions generally seek to impose on the defendants responsibility for lead paint abatement and health concerns associated with the use of lead-based paints, including damages for personal injury, contribution and/or indemnification for medical expenses, medical monitoring expenses and costs for educational programs. To the extent the plaintiffs seek compensatory or punitive damages in these actions, such damages are generally unspecified. In some cases, the damages are unspecified pursuant to the requirements of applicable state law. A number of cases are inactive or have been dismissed or withdrawn. Most of the remaining cases are in various pre-trial stages. Some are on appeal following dismissal or summary judgment rulings or a trial verdict in favor of either the defendants or the plaintiffs. NL believes it has substantial defenses to these actions, and NL intends to continue to deny all allegations of wrongdoing and liability and to defend against all actions vigorously. We do not believe it is probable we have incurred any liability with respect to pending lead pigment litigation cases to which NL is a party, and with respect to all such lead pigment litigation cases to which NL is a party, we believe liability to NL that may result, if any, in this regard cannot be reasonably estimated, because: ● NL has never settled any of the market share, intentional tort, fraud, nuisance, supplier negligence, breach of warranty, conspiracy, misrepresentation, aiding and abetting, enterprise liability, or statutory cases (other than the Santa Clara case discussed below), ● no final, non-appealable adverse judgments have ever been entered against NL, and ● NL has never ultimately been found liable with respect to any such litigation matters, including over 100 cases over a thirty-year period for which NL was previously a party and for which NL has been dismissed without any finding of liability . 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 NL 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 terms of the County of Santa Clara v. Atlantic Richfield Company, et al. New cases may continue to be filed against NL. We do not know if we will incur liability in the future in respect to 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 NL 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 NL 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. Our businesses 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, our businesses 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 all of our facilities are in substantial compliance with applicable environmental laws. Certain properties and facilities used in our former operations (primarily NL’s former operations), including divested primary and secondary lead smelters and former mining locations, are the subject of civil litigation, administrative proceedings or investigations arising under federal and state environmental laws and common law. Additionally, in connection with past operating practices, we are currently involved as a defendant, potentially responsible party (PRP) or both, pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, as amended by the Superfund Amendments and Reauthorization Act (CERCLA), and similar state laws in various governmental and private actions associated with waste disposal sites, mining locations, and facilities that we or our predecessors, and NL or its 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. 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 the accrued environmental and related costs which we expect to pay within the next twelve months, and we classify this estimate as a current liability. We classify the remaining accrued environmental costs as a noncurrent liability. The table below presents a summary of the activity in our accrued environmental costs during the first six months of 2024. Amount (In millions) Balance at the beginning of the period $ 96.9 Additions charged to expense, net 1.7 Payments, net (1.6) Balance at the end of the period $ 97.0 Amounts recognized in the Condensed Consolidated Balance Sheet Current liabilities $ 3.9 Noncurrent liabilities 93.1 Total $ 97.0 NL – NL believes that it is not reasonably possible to estimate the range of costs for certain sites. At June 30, 2024, there were approximately five sites for which NL is not currently able to reasonably estimate a range of costs. For these sites, generally the investigation is in the early stages, and NL is unable to determine whether or not NL actually had any association with the site, the nature of its responsibility, if any, for the contamination at the site, 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 NL’s control, such as when the party alleging liability provides information to NL. At certain of these previously inactive sites, NL has received general and special notices of liability from the EPA and/or state agencies alleging that NL, sometimes with other PRPs, is liable for past and future costs of remediating environmental contamination allegedly caused by former operations. These notifications may assert that NL, along with any other alleged PRPs, is liable for past and/or future clean-up costs. As further information becomes available to us for any of these sites which would allow us to estimate a range of costs, we would at that time adjust our accruals. Any such adjustment could result in the recognition of an accrual that would have a material effect on our consolidated financial statements, results of operations and liquidity. Other – Insurance coverage claims – NL NL is involved in certain legal proceedings with a number of its former insurance carriers regarding the nature and extent of the carriers’ obligations to NL 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 NL’s lead pigment and asbestos litigation depends upon a variety of factors, and we cannot assure you that such insurance coverage will be available. NL has agreements with certain of its former insurance carriers pursuant to which the carriers reimburse it for a portion of its future lead pigment litigation defense costs and one such carrier reimburses us for a portion of NL’s future asbestos litigation defense costs. We are not able to determine how much NL will ultimately recover from these carriers for defense costs incurred by NL because of certain issues that arise regarding which defense costs qualify for reimbursement. While NL continues 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 NL and certain of its former insurance carriers, refer to our 2023 Annual Report. Other litigation In addition to the litigation described above, we and our affiliates are involved in various other environmental, contractual, product liability, patent (or intellectual property), employment and other claims and disputes incidental to our present and former businesses. In certain cases, we have insurance coverage for these items, although we do not expect additional material insurance coverage for our environmental matters. We currently believe the disposition of all of these various other claims and disputes (including asbestos-related claims), individually or in the aggregate, should not have a material adverse effect on our consolidated financial position, results of operations or liquidity beyond the accruals already provided. |
Fair value measurements and fin
Fair value measurements and financial instruments | 6 Months Ended |
Jun. 30, 2024 | |
Fair value measurements and financial instruments | |
Fair value measurements and financial instruments | Note 17 – Fair value measurements and financial instruments: See Note 5 for amounts related to our marketable securities. The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure: December 31, 2023 June 30, 2024 Carrying Fair Carrying Fair amount value amount value (In millions) Cash, cash equivalents and restricted cash equivalents $ 462.0 $ 462.0 $ 427.3 $ 427.3 Long-term debt: Kronos fixed rate 9.50% Senior Secured Notes due 2029 — — 289.8 321.1 Kronos fixed rate 3.75% Senior Secured Notes due 2025 440.9 424.5 80.2 79.3 LandWell bank note payable 12.2 12.2 11.9 11.9 At June 30, 2024, the estimated market price of Kronos’ 9.50% Senior Secured Notes due 2029 was €1,087 per €1,000 principal amount, and the estimated market price of Kronos’ 3.75% Senior Secured Notes due 2025 was €989 per €1,000 principal amount. The fair values of Kronos’ Senior Secured Notes were based on quoted market prices; however, these quoted market prices represented Level 2 inputs because the markets in which the Senior Secured Notes trade were not active. The fair value of other fixed-rate debt, which represents Level 2 inputs, is deemed to approximate carrying value. See Note 7. Due to their near-term maturities, the carrying amounts of accounts receivable and accounts payable are considered equivalent to fair value. See Notes 3 and 8. |
Restructuring costs
Restructuring costs | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring costs | Note 18 – Restructuring costs: In response to the extended period of reduced demand in 2023, Kronos took measures to reduce its operating costs and improve its long-term cost structure such as the implementation of certain voluntary and involuntary workforce reductions during the third quarter of 2023 that primarily impacted its European operations. A substantial portion of Kronos’ workforce reductions were accomplished through voluntary programs, for which eligible workforce reduction costs are recognized at the time both the employee and employer are irrevocably committed to the terms of the separation. These workforce reductions impacted approximately 100 employees. Kronos recognized a total of approximately $6 million in charges primarily in the fourth quarter of 2023 related to workforce reductions it implement e sec a l f o f h e y a r. T o o h y t In April 2024, Kronos announced plans to close its sulfate process line at its plant in Varennes, Canada by the end of the third quarter of 2024. As a result of the planned sulfate process line closure, Kronos recognized a charge of approximately $2 million to cost of sales in the second quarter of 2024 related to workforce reductions for employees impacted. In addition, approximately $10 million in non-cash charges related primarily to accelerated depreciation in connection with the closure of the sulfate process line are reflected in cost of sales in the second quarter of 2024 with further amounts of approximately $5 million in non-cash charges related to accelerated depreciation expected to be recognized in the third quarter of 2024. A summary of the activity in Kronos’ accrued restructuring costs for the first six months of 2024 is shown in the table below: Amount (In millions) Accrued workforce reduction costs at December 31, 2023 $ 5.0 Workforce reduction costs accrued 1.9 Workforce reduction costs paid (2.6) Currency translation adjustments, net (.1) Accrued workforce reduction costs at June 30, 2024 $ 4.2 Amounts recognized in the balance sheet: Current liability $ 4.2 Noncurrent liability — Total $ 4.2 |
Acquisition of Remaining Joint
Acquisition of Remaining Joint Venture Interest in LPC | 6 Months Ended |
Jun. 30, 2024 | |
Acquisition of Remaining Joint Venture Interest in LPC | |
Acquisition of Remaining Joint Venture Interest in LPC | Note 19 – Acquisition of Remaining Joint Venture Interest in LPC: Effective July 16, 2024, Kronos acquired the 50% joint venture interest in LPC previously held by Venator Investments, Ltd. (“Venator”). Prior to the acquisition, LPC was operated as a joint venture between Kronos and Venator, and through a wholly-owned subsidiary, Kronos held a 50% joint venture interest in LPC. Following the acquisition, LPC is an indirect, wholly-owned subsidiary of Kronos. Kronos completed the acquisition in order to obtain full control of LPC and its TiO 2 2 The aggregate EBITDA tiers for the two-year earn-out period are $650 million and $730 million, with $5 million of the earnout payable if Kronos achieves $650 million in aggregate consolidated EBITDA, and a maximum of $15 million payable if aggregate EBITDA is $730 million or greater for the period. If Kronos achieves aggregate consolidated EBITDA between $650 million and $730 million, the payment of the additional $10 million is pro-rated between the two targets. |
Recent accounting pronouncement
Recent accounting pronouncements | 6 Months Ended |
Jun. 30, 2024 | |
Recent accounting pronouncements | |
Recent accounting pronouncements | Note 20 – Recent accounting pronouncements: In November 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
Organization and basis of pre_2
Organization and basis of presentation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Organization and basis of presentation | |
Organization | Organization – |
Basis of Presentation | Basis of Presentation – The unaudited Condensed Consolidated Financial Statements contained in this Quarterly Report have been prepared on the same basis as the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 that we filed with the SEC on March 7, 2024 (the “2023 Annual Report”). In our opinion, we have made all necessary adjustments (which include only normal recurring adjustments, except as noted below), in order to state fairly, in all material respects, our consolidated financial position, results of operations and cash flows as of the dates and for the periods presented. We have condensed the Consolidated Balance Sheet at December 31, 2023 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, 2023) 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 June 30, 2024 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 2023 Consolidated Financial Statements contained in our 2023 Annual Report. Unless otherwise indicated, references in this report to “we,” “us” or “our” refer to Valhi, Inc. and its subsidiaries (NYSE: VHI), taken as a whole. |
Revision of Previously Issued Financial Statements | Revision of Previously Issued Financial Statements – As a result of the revision, our deferred income tax liabilities decreased by $14.7 million with a corresponding increase in retained earnings as of December 31, 2023. Additionally, retained earnings increased by $12.5 million, $11.6 million, and $13.5 million, as of December 31, 2022, March 31, 2023, and June 30, 2023, respectively. In addition, our income tax benefit increased by $1.9 million and $1.0 million for the three and six-month periods ended June 30, 2023, respectively. Net loss and comprehensive loss decreased correspondingly in the same periods. Basic and diluted net loss |
Business segment information (T
Business segment information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Business segment information | |
Holding Percentage of Subsidiaries | % controlled at Business segment Entity June 30, 2024 Chemicals Kronos 81% Component products CompX 87% Real estate management and development BMI and LandWell 63% - 77% |
Segment Operating Performance | Three months ended Six months ended June 30, June 30, 2023 2024 2023 2024 (In millions) Net sales: Chemicals $ 443.2 $ 500.5 $ 869.5 $ 979.3 Component products 36.6 35.9 77.8 73.9 Real estate management and development 27.3 23.3 52.5 37.1 Total net sales $ 507.1 $ 559.7 $ 999.8 $ 1,090.3 Cost of sales: Chemicals $ 399.4 $ 400.7 $ 795.2 $ 808.6 Component products 26.3 24.8 54.8 53.1 Real estate management and development 15.9 12.9 30.2 21.0 Total cost of sales $ 441.6 $ 438.4 $ 880.2 $ 882.7 Gross margin: Chemicals $ 43.8 $ 99.8 $ 74.3 $ 170.7 Component products 10.3 11.1 23.0 20.8 Real estate management and development 11.4 10.4 22.3 16.1 Total gross margin $ 65.5 $ 121.3 $ 119.6 $ 207.6 Operating income (loss): Chemicals $ (2.6) $ 40.5 $ (17.7) $ 63.3 Component products 4.4 5.1 11.4 8.8 Real estate management and development 10.2 9.2 20.8 14.2 Total operating income 12.0 54.8 14.5 86.3 General corporate items: Interest income and other 4.7 5.5 9.6 11.2 Gain on land sales 1.5 — 1.5 — Other components of net periodic pension and OPEB expense (7.5) (.6) (8.7) (1.2) Changes in market value of Valhi common stock held by subsidiaries (1.1) .1 (2.2) .6 General expenses, net (9.5) (10.3) (17.4) (18.1) Interest expense (7.2) (11.9) (14.2) (23.2) Income (loss) before income taxes $ (7.1) $ 37.6 $ (16.9) $ 55.6 |
Accounts and other receivable_2
Accounts and other receivables, net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounts and other receivables, net | |
Components of Accounts and Other Receivables | December 31, June 30, 2023 2024 (In millions) Trade accounts receivable: Kronos $ 273.6 $ 355.7 CompX 17.1 15.5 BMI/LandWell 1.2 .5 VAT and other receivables 33.4 26.3 Refundable income taxes 1.8 2.5 Receivables from affiliates: Louisiana Pigment Company, L.P. (LPC) 16.9 — Contran - trade items .2 .2 Other .4 .5 Allowance for doubtful accounts (4.2) (3.6) Total $ 340.4 $ 397.6 |
Inventories, net (Tables)
Inventories, net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventories, net | |
Inventories, Net | December 31, June 30, 2023 2024 (In millions) Raw materials: Chemicals $ 188.3 $ 113.8 Component products 5.7 5.3 Total raw materials 194.0 119.1 Work in process: Chemicals 30.8 34.4 Component products 19.1 17.1 Total in-process products 49.9 51.5 Finished products: Chemicals 250.4 207.8 Component products 5.9 5.0 Total finished products 256.3 212.8 Supplies (chemicals) 95.9 92.0 Total $ 596.1 $ 475.4 |
Marketable securities (Tables)
Marketable securities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Marketable securities | |
Schedule of Marketable Securities | Cost or amortized Unrealized Market value cost loss, net (In millions) December 31, 2023: Current assets $ 56.1 $ 56.1 $ — Noncurrent assets $ 4.8 $ 5.0 $ (.2) June 30, 2024: Current assets $ 13.8 $ 13.8 $ — Noncurrent assets $ 5.3 $ 5.3 $ — |
Other noncurrent assets (Tables
Other noncurrent assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other noncurrent assets | |
Other noncurrent assets | December 31, June 30, 2023 2024 (In millions) Restricted cash and cash equivalents $ 32.4 $ 32.3 Note receivables - OPA 69.1 66.8 Operating lease right-of-use assets 22.7 22.1 Land held for development 19.4 16.2 IBNR receivables 13.4 13.4 Pension asset 8.1 8.6 Other 16.7 21.5 Total $ 181.8 $ 180.9 |
Long-term debt (Tables)
Long-term debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Long-term debt | |
Long-Term Debt | December 31, June 30, 2023 2024 (In millions) Valhi: Contran credit facility $ 93.4 $ 62.6 Subsidiary debt: Kronos: Kronos International, Inc. 9.50% Senior Secured Notes due 2029 — 289.8 Kronos International, Inc. 3.75% Senior Secured Notes due 2025 440.9 80.2 Subordinated, Unsecured Term Loan from Contran — 53.7 LandWell: Note payable to Western Alliance Business Trust 12.2 11.9 Total subsidiary debt 453.1 435.6 Total debt 546.5 498.2 Less current maturities .7 .8 Total long-term debt $ 545.8 $ 497.4 |
Accounts payable and accrued _2
Accounts payable and accrued liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounts payable and accrued liabilities | |
Schedule of Accounts Payable and Accrued Liabilities | December 31, June 30, 2023 2024 (In millions) Accounts payable: Kronos $ 218.7 $ 129.9 CompX 3.1 3.8 BMI/LandWell 6.7 5.5 Total 228.5 139.2 Payables to affiliates: LPC 19.9 18.4 Contran - income taxes 10.2 14.8 Deferred income 88.8 50.4 Employee benefits 36.2 34.5 Accrued sales discounts and rebates 22.5 18.1 Accrued development costs 15.1 17.2 Accrued litigation settlement 11.8 11.9 Interest 5.1 11.9 Environmental remediation and related costs 3.7 3.9 Operating lease liabilities 3.9 3.7 Other 45.0 43.7 Total $ 490.7 $ 367.7 |
Other noncurrent liabilities (T
Other noncurrent liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other noncurrent liabilities | |
Other noncurrent liabilities | December 31, June 30, 2023 2024 (In millions) Accrued development costs $ 42.3 $ 41.4 Operating lease liabilities 18.6 18.1 Accrued litigation settlement 16.1 16.3 Insurance claims and expenses 14.9 15.0 Deferred income 15.5 12.2 Other postretirement benefits 7.4 7.1 Employee benefits 4.9 4.6 Other 7.8 8.0 Total $ 127.5 $ 122.7 |
Revenue - disaggregation of s_2
Revenue - disaggregation of sales (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue - disaggregation of sales | |
Schedule of Disaggregates of Net Sales | The following table disaggregates the net sales of our Chemicals Segment by place of manufacture (point of origin) and to the location of the customer (point of destination), which are the categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Three months ended Six months ended June 30, June 30, 2023 2024 2023 2024 (In millions) Net sales - point of origin: United States $ 233.4 $ 279.7 $ 489.2 $ 520.6 Germany 193.6 216.2 379.6 428.4 Canada 83.9 97.6 174.8 186.9 Norway 75.3 77.7 147.2 148.7 Belgium 45.5 61.0 114.3 130.6 Eliminations (188.5) (231.7) (435.6) (435.9) Total $ 443.2 $ 500.5 $ 869.5 $ 979.3 Net sales - point of destination: Europe $ 199.0 $ 222.6 $ 400.1 $ 437.5 North America 153.0 182.5 301.6 348.5 Other 91.2 95.4 167.8 193.3 Total $ 443.2 $ 500.5 $ 869.5 $ 979.3 The following table disaggregates the net sales of our Component Products Segment by major product line. Three months ended Six months ended June 30, June 30, 2023 2024 2023 2024 (In millions) Component Products: Net sales: Security products $ 25.6 $ 28.2 $ 53.0 $ 58.1 Marine components 11.0 7.7 24.8 15.8 Total $ 36.6 $ 35.9 $ 77.8 $ 73.9 |
Defined benefit pension plans (
Defined benefit pension plans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Defined Benefit Pension Plans | |
Defined benefit pension plans [Line Items] | |
Components of Net Periodic Defined Benefit Cost | The components of our net periodic defined benefit pension cost are presented in the table below. Three months ended Six months ended June 30, June 30, 2023 2024 2023 2024 (In millions) Service cost $ 1.5 $ 1.6 $ 3.1 $ 3.3 Interest cost 5.5 5.2 11.1 10.6 Expected return on plan assets (5.2) (5.6) (10.4) (11.2) Recognized net actuarial losses 1.0 1.0 1.9 1.9 Settlements 6.2 — 6.2 — Total $ 9.0 $ 2.2 $ 11.9 $ 4.6 |
Other income, net (Tables)
Other income, net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other income, net | |
Schedule of Components of Other Income | Six months ended June 30, 2023 2024 (In millions) Interest income and other: Interest and dividends $ 9.4 $ 11.0 Securities transactions, net .2 .2 Total 9.6 11.2 Gain on land sales 1.5 — Currency transactions, net 8.5 2.0 Insurance recoveries 2.2 .2 Other, net 1.8 2.5 Total $ 23.6 $ 15.9 |
Income taxes (Tables)
Income taxes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income taxes | |
Component of Income Taxes Expenses | Three months ended Six months ended June 30, June 30, 2023 2024 2023 2024 (In millions) Expected tax expense (benefit) at U.S. federal statutory $ (1.4) $ 7.9 $ (3.5) $ 11.7 Non-U.S. tax rates (2.4) (.1) (2.4) (.1) Incremental net tax benefit on earnings and losses of U.S. and non-U.S. tax group companies (5.5) (3.5) (5.1) (4.3) Valuation allowance — 1.7 — 2.5 Global intangible low-tax income, net 1.6 1.1 .1 1.4 Adjustment to the reserve for uncertain tax positions, net .7 .1 (.7) .2 Adjustment of prior year taxes, net — — (.4) — Nondeductible expenses 1.0 .4 .5 .6 U.S. state income taxes and other, net (.8) .3 (.5) .3 Income tax expense (benefit) $ (6.8) $ 7.9 $ (12.0) $ 12.3 Comprehensive provision (benefit) for income taxes allocable to: Net income (loss) $ (6.8) $ 7.9 $ (12.0) $ 12.3 Other comprehensive income (loss): Currency translation (.6) .2 (1.4) (2.1) Pension plans .8 .3 1.1 .6 Other (.1) (.1) (.3) (.2) Total $ (6.7) $ 8.3 $ (12.6) $ 10.6 |
Noncontrolling interest in su_2
Noncontrolling interest in subsidiaries (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Noncontrolling interest in subsidiaries | |
Noncontrolling Interest in Net Assets of Subsidiaries | December 31, June 30, 2023 2024 (In millions) Noncontrolling interest in net assets: Kronos Worldwide $ 209.0 $ 202.4 NL Industries 76.9 77.5 CompX International 22.0 22.1 BMI 11.0 13.7 LandWell 6.8 8.7 Total $ 325.7 $ 324.4 |
Schedule of Noncontrolling interest in net income (loss) of subsidiaries | Six months ended June 30, 2023 2024 (In millions) Noncontrolling interest in net income (loss) of subsidiaries: Kronos Worldwide $ (4.5) $ 5.1 NL Industries (1.7) 2.5 CompX International 1.3 1.1 BMI 3.5 2.7 LandWell 5.5 4.2 Total $ 4.1 $ 15.6 |
Stockholders' equity (Tables)
Stockholders' equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' equity | |
Accumulated Other Comprehensive Loss (Loss) | Three months ended Six months ended June 30, June 30, 2023 2024 2023 2024 (In millions) Accumulated other comprehensive income (loss) (net of tax and Marketable securities: Balance at beginning of period $ 1.6 $ 1.7 $ 1.6 $ 1.7 Other comprehensive income: Unrealized loss arising during the period (.1) — (.1) — Balance at end of period $ 1.5 $ 1.7 $ 1.5 $ 1.7 Currency translation: Balance at beginning of period $ (96.0) $ (102.4) $ (91.5) $ (88.8) Other comprehensive income (loss) arising during the period (3.6) 1.2 (8.1) (12.4) Balance at end of period $ (99.6) $ (101.2) $ (99.6) $ (101.2) Defined benefit pension plans: Balance at beginning of period $ (54.4) $ (58.3) $ (55.0) $ (58.8) Other comprehensive income: Amortization of prior service cost and net losses .6 .5 1.2 1.0 Plan settlement 4.0 — 4.0 — Balance at end of period $ (49.8) $ (57.8) $ (49.8) $ (57.8) OPEB plans: Balance at beginning of period $ .8 $ .4 $ 1.0 $ .4 Other comprehensive income: Amortization of prior service credit and net losses (.1) (.1) (.3) (.1) Balance at end of period $ .7 $ .3 $ .7 $ .3 Total accumulated other comprehensive loss: Balance at beginning of period $ (148.0) $ (158.6) $ (143.9) $ (145.5) Other comprehensive income (loss) .8 1.6 (3.3) (11.5) Balance at end of period $ (147.2) $ (157.0) $ (147.2) $ (157.0) |
Commitments and contingencies (
Commitments and contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Change in Accrued Environmental Remediation and Related Costs | The table below presents a summary of the activity in our accrued environmental costs during the first six months of 2024. Amount (In millions) Balance at the beginning of the period $ 96.9 Additions charged to expense, net 1.7 Payments, net (1.6) Balance at the end of the period $ 97.0 Amounts recognized in the Condensed Consolidated Balance Sheet Current liabilities $ 3.9 Noncurrent liabilities 93.1 Total $ 97.0 |
Fair value measurements and f_2
Fair value measurements and financial instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair value measurements and financial instruments | |
Financial Instruments not Carried at Fair Value | December 31, 2023 June 30, 2024 Carrying Fair Carrying Fair amount value amount value (In millions) Cash, cash equivalents and restricted cash equivalents $ 462.0 $ 462.0 $ 427.3 $ 427.3 Long-term debt: Kronos fixed rate 9.50% Senior Secured Notes due 2029 — — 289.8 321.1 Kronos fixed rate 3.75% Senior Secured Notes due 2025 440.9 424.5 80.2 79.3 LandWell bank note payable 12.2 12.2 11.9 11.9 |
Restructuring costs (Tables)
Restructuring costs (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring costs | Amount (In millions) Accrued workforce reduction costs at December 31, 2023 $ 5.0 Workforce reduction costs accrued 1.9 Workforce reduction costs paid (2.6) Currency translation adjustments, net (.1) Accrued workforce reduction costs at June 30, 2024 $ 4.2 Amounts recognized in the balance sheet: Current liability $ 4.2 Noncurrent liability — Total $ 4.2 |
Organization and basis of pre_3
Organization and basis of presentation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Organization and basis of presentation [Line Items] | |||||||
Deferred income taxes | $ 13 | $ 13 | $ 17.1 | ||||
Retained earnings | 499 | 499 | 475.8 | ||||
Income tax expense (benefit) | $ 7.9 | $ (6.8) | $ 12.3 | $ (12) | |||
Basic net loss per share | $ 0.70 | $ (0.11) | $ 0.97 | $ (0.31) | |||
Diluted net loss per share | $ 0.70 | $ (0.11) | $ 0.97 | $ (0.31) | |||
Restatement adjustment | |||||||
Organization and basis of presentation [Line Items] | |||||||
Deferred income taxes | $ (14.7) | ||||||
Retained earnings | $ 13.5 | $ 13.5 | $ 11.6 | $ 12.5 | |||
Income tax expense (benefit) | $ 1.9 | $ 1 | |||||
Basic net loss per share | $ (0.07) | $ (0.04) | |||||
Diluted net loss per share | $ (0.07) | $ (0.04) | |||||
Contran | Valhi Incorporation | |||||||
Organization and basis of presentation [Line Items] | |||||||
Parent company ownership interest | 91% | 91% |
Business segment information -
Business segment information - Holding Percentage of Subsidiaries (Detail) | Jun. 30, 2024 |
Chemicals | |
Business segment information [Line Items] | |
Controlling interest in subsidiary | 81% |
Component products | |
Business segment information [Line Items] | |
Controlling interest in subsidiary | 87% |
Real estate management and development | BMI | |
Business segment information [Line Items] | |
Controlling interest in subsidiary | 63% |
Real estate management and development | LandWell | Aggregate General And Limited Interests | |
Business segment information [Line Items] | |
Controlling interest in subsidiary | 77% |
Business segment information _2
Business segment information - Additional Information (Detail) | Jun. 30, 2024 |
Kronos Worldwide, Inc. | Valhi Incorporation | |
Business segment information [Line Items] | |
Direct ownership percentage by parent | 50% |
Kronos Worldwide, Inc. | NL | |
Business segment information [Line Items] | |
Indirect controlling interest in subsidiary | 31% |
NL | Valhi Incorporation | |
Business segment information [Line Items] | |
Direct ownership percentage by parent | 83% |
LandWell | Valhi Incorporation | |
Business segment information [Line Items] | |
Direct ownership percentage by parent | 27% |
LandWell | BMI | |
Business segment information [Line Items] | |
Indirect controlling interest in subsidiary | 50% |
BMI | Valhi Incorporation | |
Business segment information [Line Items] | |
Direct ownership percentage by parent | 63% |
Business segment information _3
Business segment information - Segment Operating Performance (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Business segment information [Line Items] | ||||
Net sales | $ 559.7 | $ 507.1 | $ 1,090.3 | $ 999.8 |
Cost of sales | 438.4 | 441.6 | 882.7 | 880.2 |
Gross margin | 121.3 | 65.5 | 207.6 | 119.6 |
Operating income | 54.8 | 12 | 86.3 | 14.5 |
Interest income and other | 5.5 | 4.7 | 11.2 | 9.6 |
Gain on land sales | 1.5 | 0 | 1.5 | |
Other components of net periodic pension and OPEB expense | (0.6) | (7.5) | (1.2) | (8.7) |
Changes in market value of Valhi common stock held by subsidiaries | 0.1 | (1.1) | 0.6 | (2.2) |
General expenses, net | (10.3) | (9.5) | (18.1) | (17.4) |
Interest expense | (11.9) | (7.2) | (23.2) | (14.2) |
Income (loss) before income taxes | 37.6 | (7.1) | 55.6 | (16.9) |
Insurance recoveries | 0.2 | 2.2 | ||
Chemicals | ||||
Business segment information [Line Items] | ||||
Net sales | 500.5 | 443.2 | 979.3 | 869.5 |
Cost of sales | 400.7 | 399.4 | 808.6 | 795.2 |
Gross margin | 99.8 | 43.8 | 170.7 | 74.3 |
Operating income | 40.5 | (2.6) | 63.3 | (17.7) |
Insurance recoveries | 0.5 | 2.2 | ||
Component products | ||||
Business segment information [Line Items] | ||||
Net sales | 35.9 | 36.6 | 73.9 | 77.8 |
Cost of sales | 24.8 | 26.3 | 53.1 | 54.8 |
Gross margin | 11.1 | 10.3 | 20.8 | 23 |
Operating income | 5.1 | 4.4 | 8.8 | 11.4 |
Real estate management and development | ||||
Business segment information [Line Items] | ||||
Net sales | 23.3 | 27.3 | 37.1 | 52.5 |
Cost of sales | 12.9 | 15.9 | 21 | 30.2 |
Gross margin | 10.4 | 11.4 | 16.1 | 22.3 |
Operating income | $ 9.2 | $ 10.2 | $ 14.2 | $ 20.8 |
Accounts and other receivable_3
Accounts and other receivables, net - Components of Accounts and Other Receivables (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Trade accounts receivable: | ||
VAT and other receivables | $ 26.3 | $ 33.4 |
Refundable income taxes | 2.5 | 1.8 |
Allowance for doubtful accounts | (3.6) | (4.2) |
Total | 397.6 | 340.4 |
Trade Accounts Receivable | Kronos | ||
Trade accounts receivable: | ||
Trade Accounts receivable | 355.7 | 273.6 |
Trade Accounts Receivable | CompX | ||
Trade accounts receivable: | ||
Trade Accounts receivable | 15.5 | 17.1 |
Trade Accounts Receivable | BMI/LandWell | ||
Trade accounts receivable: | ||
Trade Accounts receivable | 0.5 | 1.2 |
Louisiana Pigment Company, L.P. (LPC) | ||
Trade accounts receivable: | ||
Receivables from affiliates | 16.9 | |
Contran | Trade Items | ||
Trade accounts receivable: | ||
Receivables from affiliates | 0.2 | 0.2 |
Other | Trade Items | ||
Trade accounts receivable: | ||
Receivables from affiliates | $ 0.5 | $ 0.4 |
Inventories, net (Detail)
Inventories, net (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Inventories, net [Line Items] | ||
Raw materials | $ 119.1 | $ 194 |
Work in process | 51.5 | 49.9 |
Finished products | 212.8 | 256.3 |
Supplies (chemicals) | 92 | 95.9 |
Total | 475.4 | 596.1 |
Chemicals | ||
Inventories, net [Line Items] | ||
Raw materials | 113.8 | 188.3 |
Work in process | 34.4 | 30.8 |
Finished products | 207.8 | 250.4 |
Component products | ||
Inventories, net [Line Items] | ||
Raw materials | 5.3 | 5.7 |
Work in process | 17.1 | 19.1 |
Finished products | $ 5 | $ 5.9 |
Marketable securities - Schedul
Marketable securities - Schedule of Marketable Securities (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Marketable securities [Line Items] | ||
Market value, current | $ 13.8 | $ 56.1 |
Market value, noncurrent | 5.3 | 4.8 |
Current Assets | ||
Marketable securities [Line Items] | ||
Market value, current | 13.8 | 56.1 |
Cost or amortized cost | 13.8 | 56.1 |
Unrealized loss, net | 0 | 0 |
Non Current Assets | ||
Marketable securities [Line Items] | ||
Market value, noncurrent | 5.3 | 4.8 |
Cost or amortized cost | 5.3 | 5 |
Unrealized loss, net | $ 0 | $ (0.2) |
Other noncurrent assets - Other
Other noncurrent assets - Other assets (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Other noncurrent assets: | |||
Restricted cash and cash equivalents | $ 32.3 | $ 32.4 | |
Note receivables - OPA | 66.8 | 69.1 | |
Operating lease right-of-use assets | 22.1 | 22.7 | |
Land held for development | 16.2 | 19.4 | |
IBNR receivables | 13.4 | 13.4 | |
Pension asset | 8.6 | 8.1 | |
Other | 21.5 | 16.7 | |
Total | 180.9 | $ 181.8 | |
City of Henderson Redevelopment Agency | OPA | OtherIncome | |||
Other noncurrent assets: | |||
Infrastructure reimbursement | $ 0 | $ 0 |
Long-term debt (Detail)
Long-term debt (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Long-term debt | ||
Total debt | $ 498.2 | $ 546.5 |
Less current maturities | 0.8 | 0.7 |
Total long-term debt | 497.4 | 545.8 |
VALHI, INC. | Contran Credit Facility | ||
Long-term debt | ||
Total debt | 62.6 | 93.4 |
Kronos Worldwide, Inc. | 9.50% Senior Secured Notes due March 15, 2029 | Kronos International, Inc | ||
Long-term debt | ||
Total debt | 289.8 | |
Kronos Worldwide, Inc. | 3.75% Senior Secured Notes due September 15, 2025 | Kronos International, Inc | ||
Long-term debt | ||
Total debt | 80.2 | 440.9 |
Kronos Worldwide, Inc. | Subordinated, unsecured term loan from Contran | Contran | ||
Long-term debt | ||
Total debt | 53.7 | |
LandWell | Unsecured Debt | Western Alliance Bank | ||
Long-term debt | ||
Total debt | 11.9 | 12.2 |
Subsidiary | ||
Long-term debt | ||
Total debt | $ 435.6 | $ 453.1 |
Long-term debt - Valhi Contran
Long-term debt - Valhi Contran Credit Facility - Additional Information (Detail) - VALHI, INC. - Contran Credit Facility $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Debt Instrument [Line Items] | |
Borrowings of credit facility | $ 0 |
Repayments of credit facility | $ 30.8 |
Debt instrument, interest rate during period | 9.50% |
Debt instrument, Interest rate at period end | 9.50% |
Amount available for borrowing | $ 87.4 |
Long-term debt - Kronos 9.50 Se
Long-term debt - Kronos 9.50 Senior Secured Notes - Additional Information (Detail) $ in Millions | 6 Months Ended | |||||||||
Jul. 30, 2024 USD ($) | Feb. 14, 2024 USD ($) | Feb. 12, 2024 EUR (€) | Feb. 12, 2024 USD ($) | Jun. 30, 2024 USD ($) | Jul. 30, 2024 EUR (€) | Jun. 30, 2024 EUR (€) | Jun. 30, 2024 USD ($) | Feb. 14, 2024 EUR (€) | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Remaining outstanding | € 75,000,000 | |||||||||
Kronos Worldwide, Inc. | Kronos International, Inc | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum amount of other indebtedness default before triggering customary default provisions | $ | $ 50 | |||||||||
Kronos Worldwide, Inc. | Kronos International, Inc | Direct Domestic Subsidiary of KII and Guarantors | Collateral Pledged | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Parent company ownership interest | 100% | |||||||||
Kronos Worldwide, Inc. | Kronos International, Inc | Foreign Subsidiary Directly Owned by KII or any Guarantor | Collateral Pledged | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Parent company ownership interest | 65% | |||||||||
Kronos Worldwide, Inc. | Kronos International, Inc | Foreign Subsidiary Directly Owned by KII or any Guarantor | Collateral Pledged | Non-voting Common Stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Parent company ownership interest | 100% | |||||||||
Kronos Worldwide, Inc. | 9.50% Senior Secured Notes due March 15, 2029 | Kronos International, Inc | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate | 9.50% | 9.50% | 9.50% | 9.50% | ||||||
Principal amount | € 325,000,000 | |||||||||
Debt instrument principal amount | 276,174,000 | |||||||||
Cash consideration | $ 52.6 | € 48,750,000 | ||||||||
Debt instrument, payment terms | bear interest at 9.50% per annum | |||||||||
Frequency of debt instrument payment | semi-annually | |||||||||
Debt Instrument, date of first required semi-annual payment | Sep. 15, 2024 | Sep. 15, 2024 | ||||||||
Debt instrument maturity date | Mar. 15, 2029 | Mar. 15, 2029 | ||||||||
Debt instrument, redemption, description | have a maturity date of March 15, 2029. Prior to March 15, 2026, Kronos may redeem some or all of the New Notes at a price equal to 100% of the principal amount thereof, plus an applicable premium as of the date of the redemption as described in the indenture governing its New Notes plus accrued and unpaid interest. On or after March 15, 2026, Kronos may redeem the New Notes at redemption prices ranging from 104.750% of the principal amount, declining to 100% on or after March 15, 2028, plus accrued and unpaid interest. In addition, on or before March 15, 2026, Kronos may redeem up to 40% of the New Notes with the net proceeds of certain public or private equity offerings at 109.50% of the principal amount, plus accrued and unpaid interest, provided that following the redemption at least 50% of the New Notes remain outstanding. If Kronos or Kronos’ subsidiaries experience certain change of control events, as outlined in the indenture governing its New Notes, Kronos would be required to make an offer to purchase the New Notes at 101% of the principal amount thereof, plus accrued and unpaid interest. Kronos would also be required to make an offer to purchase a specified portion of the New Notes at par value, plus accrued and unpaid interest, in the event that Kronos and its subsidiaries generate a certain amount of net proceeds from the sale of assets outside the ordinary course of business, and such net proceeds are not otherwise used for specified purposes within a specified time period as described in the indenture governing Kronos’ New Notes; | |||||||||
Debt Instrument Exchanged, Principal Amount of Each Instrument | € 850 | |||||||||
Debt Instrument Exchanged, Cash Paid For Each Instrument | € 150 | |||||||||
Long term debt, carrying amount | € 276,174,000 | $ 289.8 | ||||||||
Unamortized debt issuance costs | $ | 5.5 | |||||||||
Debt issuance costs, gross | $ | $ 6 | |||||||||
Kronos Worldwide, Inc. | 9.50% Senior Secured Notes due March 15, 2029 | Kronos International, Inc | Subsequent event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate | 9.50% | |||||||||
Debt instrument principal amount | € 75,000,000 | |||||||||
Premium percentage | 107.50% | |||||||||
Net proceeds from issuance | $ | $ 90 | |||||||||
Kronos Worldwide, Inc. | 9.50% Senior Secured Notes due March 15, 2029 | Kronos International, Inc | Prior to March 15, 2026 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, redemption price percentage | 100% | 100% | ||||||||
Kronos Worldwide, Inc. | 9.50% Senior Secured Notes due March 15, 2029 | Kronos International, Inc | On or After March 15, 2026 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, redemption price percentage | 104.75% | 104.75% | ||||||||
Kronos Worldwide, Inc. | 9.50% Senior Secured Notes due March 15, 2029 | Kronos International, Inc | On or After March 15, 2028 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, redemption price percentage | 100% | 100% | ||||||||
Kronos Worldwide, Inc. | 9.50% Senior Secured Notes due March 15, 2029 | Kronos International, Inc | On or Before March 15, 2026 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, redemption price percentage | 109.50% | 109.50% | ||||||||
Debt instrument, percentage of debt that may be redeemed | 40% | 40% | ||||||||
Minimum redemption outstanding debt percentage | 50% | |||||||||
Kronos Worldwide, Inc. | 9.50% Senior Secured Notes due March 15, 2029 | Kronos International, Inc | Certain Change Of control events | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, redemption price percentage | 101% | 101% | ||||||||
Kronos Worldwide, Inc. | 3.75% Senior Secured Notes due September 15, 2025 | Kronos International, Inc | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate | 3.75% | 3.75% | 3.75% | 3.75% | ||||||
Long-Term Debt, Gross | € 75,000,000 | |||||||||
Debt instrument, par value | € 1,000 | |||||||||
Long term debt, carrying amount | $ | $ 80.2 | $ 440.9 | ||||||||
Interest charge included in interest expense | $ | $ 1.5 |
Long-term debt - Subordinated,
Long-term debt - Subordinated, Unsecured Term Loan from Contran (Details) € in Millions, $ in Millions | 1 Months Ended | 6 Months Ended | |||||
Feb. 14, 2024 USD ($) | Feb. 12, 2024 USD ($) | Feb. 12, 2024 EUR (€) | Feb. 06, 2024 USD ($) | Aug. 31, 2024 | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | |
Debt Instrument [Line Items] | |||||||
Kronos term loan from Contran | $ 53.7 | $ 0 | |||||
Kronos Worldwide, Inc. | Subordinated, unsecured term loan from Contran | |||||||
Debt Instrument [Line Items] | |||||||
Kronos term loan from Contran | $ 53.7 | $ 53.7 | € 50 | ||||
Line of credit maximum borrowing capacity | $ 225 | ||||||
Long-term promissory note fixed interest rate | 11.50% | 11.50% | |||||
Kronos Worldwide, Inc. | Subordinated, unsecured term loan from Contran | Subsequent event | |||||||
Debt Instrument [Line Items] | |||||||
Long-term promissory note fixed interest rate | 9.54% | ||||||
Kronos Worldwide, Inc. | Subordinated, unsecured term loan from Contran | Contran | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate spread | 2% | ||||||
Kronos Worldwide, Inc. | Subordinated, unsecured term loan from Contran | Contran | Subsequent event | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate spread | 2% |
Long-term debt - Kronos 3.75 Se
Long-term debt - Kronos 3.75 Senior Secured Notes - Additional Information (Detail) € in Millions, $ in Millions | Jun. 30, 2024 USD ($) | Jun. 30, 2024 EUR (€) | Feb. 12, 2024 | Dec. 31, 2023 USD ($) |
Debt Instrument [Line Items] | ||||
Carrying value of notes | $ 498.2 | $ 546.5 | ||
Kronos Worldwide, Inc. | 3.75% Senior Secured Notes due September 15, 2025 | Kronos International, Inc | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 3.75% | 3.75% | 3.75% | 3.75% |
Aggregate principal amount outstanding | € | € 75 | |||
Carrying value of notes | $ 80.2 | $ 440.9 |
Long-term debt - Revolving Cred
Long-term debt - Revolving Credit Facility - Additional Information (Detail) - Kronos Worldwide, Inc. € in Millions, $ in Millions | 6 Months Ended | ||
Jun. 30, 2024 USD ($) | Jul. 17, 2024 USD ($) | Jun. 30, 2024 EUR (€) | |
Global Revolver Credit Facility | |||
Line Of Credit Facility [Line Items] | |||
Line of credit maximum borrowing capacity | $ 225 | ||
Revolving credit facility, borrowings | 0 | ||
Amount available for borrowing | $ 225 | ||
Fixed charge coverage ratio, minimum value | 1% | ||
Global Revolver Credit Facility | Subsequent event | |||
Line Of Credit Facility [Line Items] | |||
Line of credit maximum borrowing capacity | $ 300 | ||
Global Revolver Credit Facility | Floor Rate Option [Member | |||
Line Of Credit Facility [Line Items] | |||
Interest rate spread | 0.25% | ||
Global Revolver Credit Facility | Minimum | Variable Rate | |||
Line Of Credit Facility [Line Items] | |||
Interest rate spread | 1.50% | ||
Global Revolver Credit Facility | Minimum | Base Rate Option | |||
Line Of Credit Facility [Line Items] | |||
Interest rate spread | 0.50% | ||
Global Revolver Credit Facility | Maximum | Variable Rate | |||
Line Of Credit Facility [Line Items] | |||
Interest rate spread | 2% | ||
Global Revolver Credit Facility | Maximum | Base Rate Option | |||
Line Of Credit Facility [Line Items] | |||
Interest rate spread | 2% | ||
Canadian Subsidiary Revolving Borrowings Maximum | |||
Line Of Credit Facility [Line Items] | |||
Line of credit maximum borrowing capacity | $ 35 | ||
Belgian Subsidiary Revolving Borrowings Maximum | |||
Line Of Credit Facility [Line Items] | |||
Line of credit maximum borrowing capacity | € | € 30 | ||
German Subsidiary Revolving Borrowings Maximum | |||
Line Of Credit Facility [Line Items] | |||
Line of credit maximum borrowing capacity | € | € 60 |
Accounts payable and accrued _3
Accounts payable and accrued liabilities - Schedule of Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Accounts payable: | ||
Accounts payable | $ 139.2 | $ 228.5 |
Current accrued liabilities: | ||
Deferred income | 50.4 | 88.8 |
Employee benefits | 34.5 | 36.2 |
Accrued development costs | 17.2 | 15.1 |
Accrued litigation settlement | 11.9 | 11.8 |
Accrued sales discounts and rebates | 18.1 | 22.5 |
Interest | 11.9 | 5.1 |
Operating lease liabilities | $ 3.7 | $ 3.9 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Total | Total |
Environmental remediation and related costs | $ 3.9 | $ 3.7 |
Other | 43.7 | 45 |
Total | 367.7 | 490.7 |
Kronos Worldwide, Inc. | ||
Accounts payable: | ||
Accounts payable | 129.9 | 218.7 |
CompX | ||
Accounts payable: | ||
Accounts payable | 3.8 | 3.1 |
BMI/LandWell | ||
Accounts payable: | ||
Accounts payable | 5.5 | 6.7 |
Contran | Income Taxes Payable | ||
Current accrued liabilities: | ||
Other | 14.8 | 10.2 |
Louisiana Pigment Company | ||
Current accrued liabilities: | ||
Other | $ 18.4 | $ 19.9 |
Other noncurrent liabilities -
Other noncurrent liabilities - Other noncurrent liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Other noncurrent liabilities | ||
Accrued development costs | $ 41.4 | $ 42.3 |
Operating lease liabilities | $ 18.1 | $ 18.6 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Total | Total |
Accrued litigation settlement | $ 16.3 | $ 16.1 |
Insurance claims and expenses | 15 | 14.9 |
Deferred income | 12.2 | 15.5 |
Other postretirement benefits | 7.1 | 7.4 |
Employee benefits | 4.6 | 4.9 |
Other | 8 | 7.8 |
Total | $ 122.7 | $ 127.5 |
Revenue - disaggregation of s_3
Revenue - disaggregation of sales - Schedule of Disaggregates of Net Sales of our Chemicals Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue - disaggregation of sales [Line Items] | ||||
Net sales | $ 559.7 | $ 507.1 | $ 1,090.3 | $ 999.8 |
Chemicals | ||||
Revenue - disaggregation of sales [Line Items] | ||||
Net sales | 500.5 | 443.2 | 979.3 | 869.5 |
Point of Origin | Chemicals | ||||
Revenue - disaggregation of sales [Line Items] | ||||
Net sales | 500.5 | 443.2 | 979.3 | 869.5 |
Point of Origin | Chemicals | Eliminations | ||||
Revenue - disaggregation of sales [Line Items] | ||||
Net sales | (231.7) | (188.5) | (435.9) | (435.6) |
Point of Origin | Chemicals | Operating Segment | United States | ||||
Revenue - disaggregation of sales [Line Items] | ||||
Net sales | 279.7 | 233.4 | 520.6 | 489.2 |
Point of Origin | Chemicals | Operating Segment | Germany | ||||
Revenue - disaggregation of sales [Line Items] | ||||
Net sales | 216.2 | 193.6 | 428.4 | 379.6 |
Point of Origin | Chemicals | Operating Segment | Canada | ||||
Revenue - disaggregation of sales [Line Items] | ||||
Net sales | 97.6 | 83.9 | 186.9 | 174.8 |
Point of Origin | Chemicals | Operating Segment | Norway | ||||
Revenue - disaggregation of sales [Line Items] | ||||
Net sales | 77.7 | 75.3 | 148.7 | 147.2 |
Point of Origin | Chemicals | Operating Segment | Belgium | ||||
Revenue - disaggregation of sales [Line Items] | ||||
Net sales | 61 | 45.5 | 130.6 | 114.3 |
Point of Destination | Chemicals | ||||
Revenue - disaggregation of sales [Line Items] | ||||
Net sales | 500.5 | 443.2 | 979.3 | 869.5 |
Point of Destination | Chemicals | Operating Segment | Europe | ||||
Revenue - disaggregation of sales [Line Items] | ||||
Net sales | 222.6 | 199 | 437.5 | 400.1 |
Point of Destination | Chemicals | Operating Segment | North America | ||||
Revenue - disaggregation of sales [Line Items] | ||||
Net sales | 182.5 | 153 | 348.5 | 301.6 |
Point of Destination | Chemicals | Operating Segment | Other | ||||
Revenue - disaggregation of sales [Line Items] | ||||
Net sales | $ 95.4 | $ 91.2 | $ 193.3 | $ 167.8 |
Revenue - disaggregation of s_4
Revenue - disaggregation of sales - Schedule of Disaggregates of Net Sales of our Component Products and Real Estate Management and Development Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 559.7 | $ 507.1 | $ 1,090.3 | $ 999.8 |
Component products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 35.9 | 36.6 | 73.9 | 77.8 |
Component products | Security Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 28.2 | 25.6 | 58.1 | 53 |
Component products | Marine Components | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 7.7 | 11 | 15.8 | 24.8 |
Real estate management and development | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 23.3 | $ 27.3 | $ 37.1 | $ 52.5 |
Defined benefit pension plans -
Defined benefit pension plans - Components of Net Periodic Defined Benefit Pension Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Defined benefit pension plans [Line Items] | ||||
Service cost | $ 1.6 | $ 1.5 | $ 3.3 | $ 3.1 |
Interest cost | 5.2 | 5.5 | 10.6 | 11.1 |
Expected return on plan assets | (5.6) | (5.2) | (11.2) | (10.4) |
Recognized net actuarial losses | 1 | 1 | 1.9 | 1.9 |
Settlements | 6.2 | 6.2 | ||
Total | 2.2 | $ 9 | 4.6 | $ 11.9 |
Pension Plans Defined Benefit [Member] | ||||
Defined benefit pension plans [Line Items] | ||||
Expected contribution | $ 18 | $ 18 |
Other income, net - Schedule of
Other income, net - Schedule of Components of Other Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Interest income and other: | ||||
Interest and dividends | $ 11 | $ 9.4 | ||
Securities transactions, net | 0.2 | 0.2 | ||
Total | 11.2 | 9.6 | ||
Gain on land sales | 1.5 | |||
Currency transactions, net | 2 | 8.5 | ||
Insurance recoveries | 0.2 | 2.2 | ||
Other, net | 2.5 | 1.8 | ||
Total | $ 3.7 | $ 10.5 | $ 15.9 | $ 23.6 |
Other income, net - Additional
Other income, net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other income, net. | |||
Insurance recoveries | $ 0.2 | $ 2.2 | |
Pre-tax gain on sale of land | $ 1.5 | 0 | 1.5 |
Net proceeds | $ 1.8 | $ 0 | $ 1.8 |
Income taxes - Components of Co
Income taxes - Components of Comprehensive Provision for Income Taxes Allocation (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disclosure Income Taxes Components Of Comprehensive Provision For Income Taxes Allocation [Abstract] | ||||
Expected tax expense (benefit) at U.S. federal statutory income tax rate of 21% | $ 7.9 | $ (1.4) | $ 11.7 | $ (3.5) |
U.S. federal statutory income tax rate | 21% | 21% | 21% | 21% |
Non-U.S. tax rates | $ (0.1) | $ (2.4) | $ (0.1) | $ (2.4) |
Incremental net tax (benefit) on earnings and losses of U.S. and non-U.S. tax group companies | (3.5) | (5.5) | (4.3) | (5.1) |
Valuation allowance | 1.7 | 2.5 | ||
Global intangible low-tax income, net | 1.1 | 1.6 | 1.4 | 0.1 |
Adjustment to the reserve for uncertain tax positions, net | 0.1 | 0.7 | 0.2 | (0.7) |
Adjustment of prior year taxes, net | (0.4) | |||
Nondeductible expenses | 0.4 | 1 | 0.6 | 0.5 |
U.S. state income taxes and other, net | 0.3 | (0.8) | 0.3 | (0.5) |
Income tax expense (benefit) | 7.9 | (6.8) | 12.3 | (12) |
Comprehensive provision (benefit) for income taxes allocable to: | ||||
Net income (loss) | 7.9 | (6.8) | 12.3 | (12) |
Other comprehensive income (loss): | ||||
Currency translation | 0.2 | (0.6) | (2.1) | (1.4) |
Defined benefit plans | 0.3 | 0.8 | 0.6 | 1.1 |
Other | (0.1) | (0.1) | (0.2) | (0.3) |
Total | $ 8.3 | $ (6.7) | $ 10.6 | $ (12.6) |
Income taxes - Changes in Uncer
Income taxes - Changes in Uncertain Tax Positions (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Unrecognized tax benefits: | |
Deferred income tax expense benefit non cash | $ 1 |
Noncontrolling interest in su_3
Noncontrolling interest in subsidiaries - Noncontrolling Interest in Net Assets of Subsidiaries (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | $ 324.4 | $ 325.7 |
Kronos Worldwide, Inc. | ||
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | 202.4 | 209 |
NL Industries, Inc. | ||
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | 77.5 | 76.9 |
CompX International Inc. | ||
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | 22.1 | 22 |
BMI | ||
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | 13.7 | 11 |
LandWell | ||
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | $ 8.7 | $ 6.8 |
Noncontrolling interest in su_4
Noncontrolling interest in subsidiaries - Schedule of Noncontrolling Interest in Net Income of Subsidiaries (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Noncontrolling interest in net income (loss) of subsidiaries: | ||||
Noncontrolling interest in net income of subsidiaries | $ 9.8 | $ 2.9 | $ 15.6 | $ 4.1 |
Kronos Worldwide, Inc. | ||||
Noncontrolling interest in net income (loss) of subsidiaries: | ||||
Noncontrolling interest in net income of subsidiaries | 5.1 | (4.5) | ||
NL | ||||
Noncontrolling interest in net income (loss) of subsidiaries: | ||||
Noncontrolling interest in net income of subsidiaries | 2.5 | (1.7) | ||
CompX | ||||
Noncontrolling interest in net income (loss) of subsidiaries: | ||||
Noncontrolling interest in net income of subsidiaries | 1.1 | 1.3 | ||
BMI | ||||
Noncontrolling interest in net income (loss) of subsidiaries: | ||||
Noncontrolling interest in net income of subsidiaries | 2.7 | 3.5 | ||
LandWell | ||||
Noncontrolling interest in net income (loss) of subsidiaries: | ||||
Noncontrolling interest in net income of subsidiaries | $ 4.2 | $ 5.5 |
Stockholders' equity - Accumula
Stockholders' equity - Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accumulated other comprehensive income (loss) (net of tax and noncontrolling interest): | ||||
Balance at beginning of period | $ 950.5 | |||
Balance at end of period | $ 962.6 | 962.6 | ||
Marketable Securities | ||||
Accumulated other comprehensive income (loss) (net of tax and noncontrolling interest): | ||||
Balance at beginning of period | 1.7 | $ 1.6 | 1.7 | $ 1.6 |
Other comprehensive income (loss) | (0.1) | (0.1) | ||
Balance at end of period | 1.7 | 1.5 | 1.7 | 1.5 |
Currency Translation | ||||
Accumulated other comprehensive income (loss) (net of tax and noncontrolling interest): | ||||
Balance at beginning of period | (102.4) | (96) | (88.8) | (91.5) |
Other comprehensive income (loss) | 1.2 | (3.6) | (12.4) | (8.1) |
Balance at end of period | (101.2) | (99.6) | (101.2) | (99.6) |
Accumulated Defined Benefit Plans Adjustment | Defined Benefit Pension Plans | ||||
Accumulated other comprehensive income (loss) (net of tax and noncontrolling interest): | ||||
Balance at beginning of period | (58.3) | (54.4) | (58.8) | (55) |
Other comprehensive income (loss) | 0.5 | 0.6 | 1 | 1.2 |
Plan settlement | 4 | 4 | ||
Balance at end of period | (57.8) | (49.8) | (57.8) | (49.8) |
Accumulated Defined Benefit Plans Adjustment | OPEB | ||||
Accumulated other comprehensive income (loss) (net of tax and noncontrolling interest): | ||||
Balance at beginning of period | 0.4 | 0.8 | 0.4 | 1 |
Other comprehensive income (loss) | (0.1) | (0.1) | (0.1) | (0.3) |
Balance at end of period | 0.3 | 0.7 | 0.3 | 0.7 |
Total Accumulated Other Comprehensive Loss | ||||
Accumulated other comprehensive income (loss) (net of tax and noncontrolling interest): | ||||
Balance at beginning of period | (158.6) | (148) | (145.5) | (143.9) |
Other comprehensive income (loss) | 1.6 | 0.8 | (11.5) | (3.3) |
Balance at end of period | $ (157) | $ (147.2) | $ (157) | $ (147.2) |
Stockholders' equity - Addition
Stockholders' equity - Additional Information (Detail) - Kronos Worldwide, Inc. $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) shares | |
Schedule Of Stockholders Equity [Line Items] | |
Shares acquired | 313,814 |
Shares acquired, value | $ | $ 2.8 |
Shares available for purchase | 1,000,000 |
Commitments and contingencies -
Commitments and contingencies - Lead Pigment Litigation-NL and Environmental Matters and Litigation - Additional Information (Detail) | 6 Months Ended | |
Jun. 30, 2024 USD ($) site case | Dec. 31, 2023 USD ($) | |
Commitments And Contingent Liabilities [Line Items] | ||
Litigation settlement | $ 11,900,000 | $ 11,800,000 |
Litigation settlement net present value | 16,300,000 | 16,100,000 |
Accrual for reasonably estimable environmental remediation and related matters | 97,000,000 | $ 96,900,000 |
Other Environmental Cleanup Matters | ||
Commitments And Contingent Liabilities [Line Items] | ||
Accrual for reasonably estimable environmental remediation and related matters | 5,000,000 | |
NL | Environmental Remediation Sites NL Named As PRP Or Defendant | ||
Commitments And Contingent Liabilities [Line Items] | ||
Accrual for reasonably estimable environmental remediation and related matters | $ 92,000,000 | |
Number of sites associated with remediation and related costs | site | 33 | |
Number of sites for which NL not currently able to reasonably estimate range of costs | site | 5 | |
NL | Maximum | Environmental Remediation Sites NL Named As PRP Or Defendant | ||
Commitments And Contingent Liabilities [Line Items] | ||
Upper end range, estimate costs for remediation and related matters | $ 119,000,000 | |
Lead Pigment Litigation | NL | ||
Commitments And Contingent Liabilities [Line Items] | ||
Period by which loss contingency claims settled and dismissed | 30 years | |
Lead Pigment Litigation | NL | Minimum | ||
Commitments And Contingent Liabilities [Line Items] | ||
Number of cases settled and dismissed and found not liable | case | 100 | |
C A Lead Paint Litigation | NL | ||
Commitments And Contingent Liabilities [Line Items] | ||
Number of annual installment payments | 2 | |
Remaining litigation settlement charge due in fifth installment | $ 12,000,000 | |
Remaining litigation settlement charge due in sixth installment | $ 16,700,000 |
Commitments and contingencies_2
Commitments and contingencies - Changes in Accrued Environmental Remediation and Related Costs (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Environmental Remediation Obligations [Abstract] | ||
Balance at the beginning of the period | $ 96.9 | |
Additions charged to expense, net | 1.7 | |
Payments, net | (1.6) | |
Balance at the end of the period | 97 | |
Amounts recognized in the Consolidated Balance Sheet at the end of the year: | ||
Current liabilities | 3.9 | $ 3.7 |
Noncurrent liabilities | 93.1 | 93.2 |
Total | $ 97 | $ 96.9 |
Fair value measurements and f_3
Fair value measurements and financial instruments- Financial Instruments not Carried at Fair Value (Detail) € in Thousands, $ in Millions | Jun. 30, 2024 EUR (€) | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Reported Value Measurement [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Cash, cash equivalents and restricted cash equivalents | $ 427.3 | $ 462 | |
Estimate of Fair Value Measurement [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Cash, cash equivalents and restricted cash equivalents | 427.3 | 462 | |
Kronos Worldwide, Inc. | 9.50% Senior Secured Notes due March 15, 2029 | Kronos International, Inc | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long term debt, carrying amount | € 276,174 | 289.8 | |
Long term debt, fair value | 321.1 | ||
Kronos Worldwide, Inc. | 3.75% Senior Secured Notes due September 15, 2025 | Kronos International, Inc | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long term debt, carrying amount | 80.2 | 440.9 | |
Long term debt, fair value | 79.3 | 424.5 | |
LandWell | Bank note payable | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long term debt, carrying amount | 11.9 | 12.2 | |
Long term debt, fair value | $ 11.9 | $ 12.2 |
Fair value measurements and f_4
Fair value measurements and financial instruments - Additional Information (Detail) - Kronos Worldwide, Inc. - Kronos International, Inc - EUR (€) | Jun. 30, 2024 | Feb. 12, 2024 | Dec. 31, 2023 |
9.50% Senior Secured Notes due March 15, 2029 | |||
Financial Instrument At Fair Value [Line Items] | |||
Interest rate | 9.50% | 9.50% | 9.50% |
Estimated market price of the notes | € 1,087 | ||
Principal amount of debt instrument | € 1,000 | ||
3.75% Senior Secured Notes due September 15, 2025 | |||
Financial Instrument At Fair Value [Line Items] | |||
Interest rate | 3.75% | 3.75% | 3.75% |
Estimated market price of the notes | € 989 | ||
Principal amount of debt instrument | € 1,000 |
Restructuring costs (Details)
Restructuring costs (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Apr. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | Jun. 30, 2024 USD ($) individual | |
Restructuring Cost and Reserve [Line Items] | |||
Number of individuals impacted from workforce reductions | individual | 100 | ||
Workforce reduction | |||
Restructuring Cost and Reserve [Line Items] | |||
Accrued workforce reduction costs, Beginning of period | $ 5 | ||
Workforce reduction costs accrued | 1.9 | ||
Workforce reduction costs paid | (2.6) | ||
Currency translation adjustments, net | (0.1) | ||
Accrued workforce reduction costs, end of period | $ 5 | 4.2 | |
Workforce reduction | Current Liability | |||
Restructuring Cost and Reserve [Line Items] | |||
Accrued workforce reduction costs, end of period | 4.2 | ||
Facility Closing | |||
Restructuring Cost and Reserve [Line Items] | |||
Workforce reduction costs accrued | $ 2 | ||
Accelerated depreciation | $ 10 | ||
Non-cash charges | $ 5 | ||
Selling, General and Administrative Expenses [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Workforce reduction costs accrued | $ 6 |
Acquisition of Remaining Join_2
Acquisition of Remaining Joint Venture Interest in LPC (Details) - Louisiana Pigment Company, L.P. (LPC) - Kronos Worldwide, Inc. - Subsequent event $ in Millions | Jul. 16, 2024 USD ($) |
Acquisition of Remaining Joint Venture Interest in LPC | |
Percentage acquired | 50% |
Percentage held through wholly-owned subsidiary | 50% |
Upfront cash payment | $ 185 |
Earn-out period | 2 years |
Global Revolver Credit Facility | |
Acquisition of Remaining Joint Venture Interest in LPC | |
Borrowings on credit facilities | $ 132 |
EBITDA of $650 million | |
Acquisition of Remaining Joint Venture Interest in LPC | |
Earn-out payment | 5 |
EBITDA is between $650 million and $730 million | |
Acquisition of Remaining Joint Venture Interest in LPC | |
Earn-out payment | 10 |
Minimum | |
Acquisition of Remaining Joint Venture Interest in LPC | |
Aggregate EBITDA considered for determining earnout payment | 650 |
Maximum | |
Acquisition of Remaining Joint Venture Interest in LPC | |
Earn-out payment | 15 |
Aggregate EBITDA considered for determining earnout payment | 730 |
Maximum | EBITDA of $730 million or more | |
Acquisition of Remaining Joint Venture Interest in LPC | |
Earn-out payment | $ 15 |