Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Mar. 07, 2014 | Jun. 30, 2013 |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'VHI | ' | ' |
Entity Registrant Name | 'VALHI INC /DE/ | ' | ' |
Entity Central Index Key | '0000059255 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 339,120,449 | ' |
Entity Public Float | ' | ' | $251.70 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $142.80 | $366.90 |
Restricted cash equivalents | 10.4 | 8.1 |
Marketable securities | 3.8 | 0.9 |
Accounts and other receivables, net | 273.4 | 283.9 |
Refundable income taxes | 15.2 | 18.3 |
Receivable from affiliates | 14.7 | 0.3 |
Land held for development | 14.3 | ' |
Inventories, net | 430.6 | 650.3 |
Other current assets | 20.8 | 25.1 |
Deferred income taxes | 23 | 9.6 |
Total current assets | 949 | 1,363.40 |
Other assets: | ' | ' |
Marketable securities | 253.3 | 256.8 |
Investment in affiliates | 102.3 | 126.1 |
Goodwill | 379.7 | 379.7 |
Deferred income taxes | 149.2 | 120.3 |
Pension asset | 0.6 | 5.1 |
Other assets | 336.7 | 156 |
Total other assets | 1,221.80 | 1,044 |
Property and equipment: | ' | ' |
Land | 51.5 | 48.3 |
Buildings | 285.1 | 280.5 |
Equipment | 1,194.80 | 1,127.70 |
Treatment, storage and disposal facility | 158.9 | 158.7 |
Mining properties | 66.5 | 72.3 |
Construction in progress | 54.2 | 40.7 |
Gross property and equipment | 1,811 | 1,728.20 |
Less accumulated depreciation | 1,014.60 | 965.1 |
Net property and equipment | 796.4 | 763.1 |
Total assets | 2,967.20 | 3,170.50 |
Current liabilities: | ' | ' |
Current maturities of long-term debt | 10.7 | 29.6 |
Accounts payable | 133.2 | 169.6 |
Accrued liabilities | 188.2 | 112.2 |
Payable to affiliates | 51.5 | 52.8 |
Income taxes | 8.9 | 23.1 |
Deferred income taxes | 2.2 | 11.2 |
Total current liabilities | 394.7 | 398.5 |
Noncurrent liabilities: | ' | ' |
Long-term debt | 741.8 | 880.5 |
Deferred income taxes | 431.1 | 454.8 |
Accrued pension costs | 169.3 | 202.9 |
Accrued environmental remediation and related costs | 113.6 | 42.6 |
Accrued postretirement benefits costs | 13.7 | 21.2 |
Other liabilities | 110.2 | 78.3 |
Total noncurrent liabilities | 1,579.70 | 1,680.30 |
Equity: Valhi stockholders’ equity: | ' | ' |
Preferred stock, $.01 par value; 5,000 shares authorized; 5,000 shares issued | 667.3 | 667.3 |
Common stock, $.01 par value; 500.0 million shares authorized; 355.2 million shares issued | 3.6 | 3.6 |
Additional paid-in capital | 27.6 | 78.9 |
Retained earnings (deficit) | -39.6 | 75.4 |
Accumulated other comprehensive loss | -8 | -42 |
Treasury stock, at cost—13.2 million shares | -49.6 | -49.6 |
Total Valhi stockholders’ equity | 601.3 | 733.6 |
Noncontrolling interest in subsidiaries | 391.5 | 358.1 |
Total equity | 992.8 | 1,091.70 |
Total liabilities and equity | 2,967.20 | 3,170.50 |
Commitments and contingencies (Notes 9, 12, 16 and 17) | ' | ' |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 5,000 | 5,000 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 355,200,000 | 355,200,000 |
Treasury stock, shares | 13,200,000 | 13,200,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues and other income: | ' | ' | ' |
Net sales | $1,863.60 | $2,087.30 | $2,025.10 |
Other income, net | 88 | 70.6 | 49 |
Total revenues and other income | 1,951.60 | 2,157.90 | 2,074.10 |
Costs and expenses: | ' | ' | ' |
Cost of sales | 1,729.40 | 1,512.10 | 1,278.40 |
Selling, general and administrative | 375.1 | 273.3 | 268.9 |
Loss on prepayment of debt, net | 8.9 | 7.2 | 3.1 |
Goodwill impairment | ' | 6.4 | ' |
Assets held for sale write-down | ' | 1.2 | 1.1 |
Interest | 56.1 | 56.3 | 61.8 |
Total costs and expenses | 2,169.50 | 1,856.50 | 1,613.30 |
Income (loss) from continuing operations before income taxes | -217.9 | 301.4 | 460.8 |
Income tax expense (benefit) | -91 | 104.8 | 169.9 |
Income (loss) from continuing operations | -126.9 | 196.6 | 290.9 |
Income from discontinued operations, net of tax | ' | 25.5 | 4.1 |
Net income (loss) | -126.9 | 222.1 | 295 |
Noncontrolling interest in net income (loss) of subsidiaries | -28.9 | 62.3 | 77.5 |
Net income (loss) attributable to Valhi stockholders | -98 | 159.8 | 217.5 |
Amounts attributable to Valhi stockholders: | ' | ' | ' |
Income (loss) from continuing operations | -98 | 141.4 | 214.5 |
Income from discontinued operations | ' | 18.4 | 3 |
Net income (loss) attributable to Valhi stockholders | ($98) | $159.80 | $217.50 |
Basic and diluted net income (loss) per share: | ' | ' | ' |
Income (loss) from continuing operations | ($0.29) | $0.41 | $0.63 |
Income (loss) from discontinued operations | ' | $0.06 | $0.01 |
Net income (loss) per share | ($0.29) | $0.47 | $0.64 |
Cash dividends per share | $0.20 | $0.19 | $0.16 |
Basic and diluted weighted average shares outstanding | 342 | 342 | 342.1 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income (loss) | ($126.90) | $222.10 | $295 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Currency translation | 7.5 | 19.6 | -28.2 |
Marketable securities | 10.3 | -20.8 | 12.9 |
Total other comprehensive income (loss), net | 53.1 | -40.2 | -33.6 |
Comprehensive income (loss) | -73.8 | 181.9 | 261.4 |
Comprehensive income (loss) attributable to noncontrolling interest | -9.8 | 40.8 | 88.4 |
Comprehensive income (loss) attributable to Valhi stockholders | -64 | 141.1 | 173 |
Defined Benefit Pension Plans | ' | ' | ' |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Pension and other postretirement benefit plan | 32.1 | -37.5 | -16.1 |
OPEB | ' | ' | ' |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Pension and other postretirement benefit plan | $3.20 | ($1.50) | ($2.20) |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained earnings (deficit) | Accumulated other comprehensive income (loss) | Treasury Stock | Non-controlling interest |
In Millions | ||||||||
Balance at Dec. 31, 2010 | $818.20 | $667.30 | $3.60 | $73.80 | ($183.20) | $21.20 | ($40.90) | $276.40 |
Net income (loss) | 295 | ' | ' | ' | 217.5 | ' | ' | 77.5 |
Cash dividends | -83 | ' | ' | ' | -53.7 | ' | ' | -29.3 |
Other comprehensive income (loss), net | -33.6 | ' | ' | ' | ' | -44.5 | ' | 10.9 |
Treasury stock acquired | -8.7 | ' | ' | ' | ' | ' | -8.7 | ' |
Equity transactions with noncontrolling interest, net | 0.7 | ' | ' | 0.4 | ' | ' | ' | 0.3 |
Other | 4.4 | ' | ' | 4.4 | ' | ' | ' | ' |
Balance at Dec. 31, 2011 | 993 | 667.3 | 3.6 | 78.6 | -19.4 | -23.3 | -49.6 | 335.8 |
Net income (loss) | 222.1 | ' | ' | ' | 159.8 | ' | ' | 62.3 |
Cash dividends | -83.6 | ' | ' | ' | -65 | ' | ' | -18.6 |
Other comprehensive income (loss), net | -40.2 | ' | ' | ' | ' | -18.7 | ' | -21.5 |
Equity transactions with noncontrolling interest, net | 0.3 | ' | ' | 0.2 | ' | ' | ' | 0.1 |
Other | 0.1 | ' | ' | 0.1 | ' | ' | ' | ' |
Balance at Dec. 31, 2012 | 1,091.70 | 667.3 | 3.6 | 78.9 | 75.4 | -42 | -49.6 | 358.1 |
Net income (loss) | -126.9 | ' | ' | ' | -98 | ' | ' | -28.9 |
Cash dividends | -86.1 | ' | ' | -50.9 | -17 | ' | ' | -18.2 |
Other comprehensive income (loss), net | 53.1 | ' | ' | ' | ' | 34 | ' | 19.1 |
Noncontrolling interest of businesses acquired | 61.5 | ' | ' | ' | ' | ' | ' | 61.5 |
Equity transactions with noncontrolling interest, net | -0.5 | ' | ' | -0.4 | ' | ' | ' | -0.1 |
Balance at Dec. 31, 2013 | $992.80 | $667.30 | $3.60 | $27.60 | ($39.60) | ($8) | ($49.60) | $391.50 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income (loss) | ($126.90) | $222.10 | $295 |
Depreciation and amortization | 74.5 | 69.4 | 63.8 |
Net (gain) loss from: | ' | ' | ' |
Bargain purchase and remeasurement of existing investment in acquiree | -54.6 | ' | ' |
Litigation settlement | ' | -14.7 | ' |
Sale of discontinued operations | ' | -23.7 | ' |
Securities transactions, net | -0.2 | -21.8 | 0.6 |
Disposal of property and equipment, net | 0.5 | -1.5 | 0.9 |
Loss on prepayment of debt, net | 8.9 | 7.2 | 3.1 |
Call premium paid | ' | -6.2 | -2.5 |
Assets held for sale write-down | ' | 1.2 | 1.1 |
Goodwill impairment | ' | 6.4 | ' |
Noncash interest expense | 1.5 | 2.6 | 5.5 |
Benefit plan expense greater (less) than cash funding requirements: | ' | ' | ' |
Defined benefit pension expense | 8.9 | -3.3 | 0.4 |
Other postretirement benefit expense | -1.9 | -1.4 | -1.8 |
Deferred income taxes | -114.8 | 51.5 | 95.3 |
Equity in joint venture earnings | -0.5 | 0.2 | 0.5 |
Net distributions from (contributions to) TiO2 manufacturing joint venture, net | 10.9 | -20.7 | 3.8 |
Other, net | 6.5 | -3.1 | 1.3 |
Change in assets and liabilities: | ' | ' | ' |
Accounts and other receivables, net | 22.9 | -6.7 | -47.9 |
Inventories, net | 220 | -184.6 | -184.3 |
Accounts payable and accrued liabilities | 73.4 | -44.2 | 96.1 |
Income taxes | -9.6 | -20 | 19.8 |
Accounts with affiliates | -18.7 | 65.4 | -36.6 |
Other noncurrent assets | -2.1 | -11.7 | -3.3 |
Other noncurrent liabilities | 0.2 | 11.8 | -13.2 |
Other, net | 18.2 | -2.3 | -5.2 |
Net cash provided by operating activities | 117.1 | 71.9 | 292.4 |
Cash flows from investing activities: | ' | ' | ' |
Capital expenditures | -74.6 | -98.8 | -146.2 |
Capitalized permit costs | -1.5 | -4.1 | -8.9 |
Acquisition of a businesses | -5.3 | ' | -4.8 |
Cash of discontinued operations | ' | -5.4 | ' |
Cash of businesses acquired | 27.4 | ' | ' |
Proceeds from: | ' | ' | ' |
Sale of business | 0 | 58 | 0.3 |
Real estate-related litigation settlement | 0 | 15.6 | 0 |
Collection of real-estate related note receivable | 3 | 0 | 15 |
Disposal of assets held for sale | 1.6 | 3.6 | 0 |
Loan to affiliate: | ' | ' | ' |
Loan | ' | -52.8 | -11.2 |
Collection | ' | 64 | 0 |
Change in restricted cash equivalents, net | -9.9 | -15.7 | -3 |
Other, net | -0.1 | 7.1 | -8 |
Net cash provided by (used in) investing activities | -56.2 | 100.9 | -220.9 |
Indebtedness: | ' | ' | ' |
Borrowings | 493.8 | 732.8 | 121.3 |
Principal payments | -693.3 | -546 | -328.8 |
Deferred financing costs paid | ' | -7.2 | -0.1 |
Valhi cash dividends paid | -67.9 | -65 | -53.7 |
Distributions to noncontrolling interest in subsidiaries | -18.2 | -18.6 | -29.3 |
Purchase of Kronos common stock | -0.7 | ' | ' |
Treasury stock acquired | 0 | 0 | -9.5 |
Issuance of Valhi common stock and other, net | 0.1 | 0 | 0.3 |
Net cash provided by (used in) financing activities | -286.2 | 96 | -299.8 |
Cash and cash equivalents - net change from: | ' | ' | ' |
Operating, investing and financing activities | -225.3 | 268.8 | -228.3 |
Effect of exchange rates on cash | 1.2 | 1.7 | -0.4 |
Net change for the year | -224.1 | 270.5 | -228.7 |
Balance at beginning of year | 366.9 | 96.4 | 325.1 |
Balance at end of year | 142.8 | 366.9 | 96.4 |
Cash paid for: | ' | ' | ' |
Interest, net of amounts capitalized (including call premium paid) | 55 | 65.5 | 67 |
Income taxes, net | 15.6 | 71 | 73.8 |
Noncash investing activities: | ' | ' | ' |
Accruals for capital expenditures | 4.6 | 16.1 | 23.5 |
Noncash Amounts Issued In Connection With Business Combination | ' | ' | ' |
Noncash financing activities: | ' | ' | ' |
Promissory note | 19.1 | 0 | 0 |
Deferred payment obligation | 8.2 | 0 | 0 |
Construction retainage payable converted into note payable | ' | ' | ' |
Noncash financing activities: | ' | ' | ' |
Promissory note | 2.8 | ' | ' |
Mutual Funds | ' | ' | ' |
Purchases of: | ' | ' | ' |
Marketable securities | 0 | 0 | -272.8 |
Proceeds from: | ' | ' | ' |
Disposal of marketable securities | ' | 21.1 | 251 |
Other | ' | ' | ' |
Purchases of: | ' | ' | ' |
Marketable securities | -7.9 | -11.7 | -6.9 |
Proceeds from: | ' | ' | ' |
Disposal of marketable securities | 11.1 | 12.4 | 5 |
TIMET | ' | ' | ' |
Purchases of: | ' | ' | ' |
Marketable securities | 0 | 0 | -30.4 |
Proceeds from: | ' | ' | ' |
Disposal of marketable securities | ' | $107.60 | $0 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2013 | |||
Summary of Significant Accounting Policies | ' | ||
Note 1—Summary of significant accounting policies: | |||
Nature of our business. Valhi, Inc. (NYSE: VHI) is primarily a holding company. We operate through our wholly-owned and majority-owned subsidiaries, including NL Industries, Inc., Kronos Worldwide, Inc., CompX International Inc., Tremont LLC and Waste Control Specialists LLC (“WCS”). Kronos (NYSE: KRO), NL (NYSE: NL), and CompX (NYSE MKT: CIX) each file periodic reports with the Securities and Exchange Commission (“SEC”). | |||
Organization. We are majority owned by Contran Corporation and one of its subsidiaries, which own approximately 94% of our outstanding common stock at December 31, 2013. Substantially all of Contran’s outstanding voting stock is held by family trusts established for the benefit of Lisa K. Simmons and Serena Simmons Connelly, daughters of Harold C. Simmons, and their children (for which Ms. Lisa Simmons and Ms. Connelly are co-trustees) or is held directly by Ms. Lisa Simmons and Ms. Connelly or persons or entities related to them, including their step-mother Annette C. Simmons, the widow of Mr. Simmons. Prior to his death in December 2013, Mr. Simmons served as sole trustee of the family trusts. Under a voting agreement entered into in February 2014 by all of the voting stockholders of Contran, the size of the board of directors of Contran was fixed at five members, each of Ms. Lisa Simmons, Ms. Connelly and Ms. Annette Simmons have the right to designate one of the five members of the Contran board and the other two members of the Contran board must consist of members of Contran management. Ms. Lisa Simmons, Ms. Connelly, and Ms. Annette Simmons each serve as members of the Contran board. The voting agreement expires in February 2017 (unless Ms. Lisa Simmons, Ms. Connelly and Ms. Annette Simmons otherwise mutually agree), and the ability of Ms. Lisa Simmons, Ms. Connelly, and Ms. Annette Simmons to each designate one member of the Contran board is dependent upon each of their continued beneficial ownership of at least 5% of the combined voting stock of Contran. Consequently, Ms. Lisa Simmons, Ms. Connelly and Ms. Annette Simmons may be deemed to control Contran and us. | |||
Unless otherwise indicated, references in this report to “we,” “us” or “our” refer to Valhi, Inc and its subsidiaries, taken as a whole. | |||
Management’s estimates. The preparation of our Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”), requires us to make estimates and assumptions that affect the reported amounts of our assets and liabilities and disclosures of contingent assets and liabilities at each balance sheet date and the reported amounts of our revenues and expenses during each reporting period. Actual results may differ significantly from previously-estimated amounts under different assumptions or conditions. | |||
Principles of consolidation. Our consolidated financial statements include the financial position, results of operations and cash flows of Valhi and our majority-owned and wholly-owned subsidiaries. We eliminate all material intercompany accounts and balances. Changes in ownership are accounted for as equity transactions with no gain or loss recognized on the transaction unless there is a change in control. See Note 3. | |||
Foreign currency translation. The financial statements of our foreign subsidiaries are translated to U.S. dollars. The functional currency of our foreign subsidiaries is generally the local currency of the country. Accordingly, we translate the assets and liabilities at year-end rates of exchange, while we translate their revenues and expenses at average exchange rates prevailing during the year. We accumulate the resulting translation adjustments in stockholders’ equity as part of accumulated other comprehensive income (loss), net of related deferred income taxes and noncontrolling interest. We recognize currency transaction gains and losses in income. | |||
Derivatives and hedging activities. We recognize derivatives as either an asset or liability measured at fair value in accordance with Accounting Standards Codification (“ASC”) Topic 815, Derivatives and Hedging. We recognize the effect of changes in the fair value of derivatives either in net income or other comprehensive income (loss), depending on the intended use of the derivative. See Note 18. | |||
Cash and cash equivalents. We classify bank time deposits and government and commercial notes and bills with original maturities of three months or less as cash equivalents. | |||
Restricted cash, cash equivalents and marketable debt securities. We classify cash, cash equivalents and marketable debt securities that have been segregated or are otherwise limited in use as restricted. To the extent the restricted amount relates to a recognized liability, we classify the restricted amount as current or noncurrent according to the corresponding liability. To the extent the restricted amount does not relate to a recognized liability, we classify restricted cash as a current asset and we classify the restricted debt security as either a current or noncurrent asset depending upon the maturity date of the security. | |||
Marketable securities and securities transactions. We carry marketable debt and equity securities at fair value. ASC Topic 820, Fair Value Measurements and Disclosures, establishes a consistent framework for measuring fair value and (with certain exceptions) this framework is generally applied to all financial statements items required to be measured at fair value. The standard requires fair value measurements to be classified and disclosed in one of the following three categories: | |||
· | Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | ||
· | Level 2—Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the assets or liability; and | ||
· | Level 3—Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable. | ||
We recognize unrealized and realized gains and losses on trading securities in income. We accumulate unrealized gains and losses on available-for-sale securities as part of accumulated other comprehensive income (loss), net of related deferred income taxes and noncontrolling interest. Realized gains and losses are based on specific identification of the securities sold. See Notes 4, 11 and 19. | |||
Accounts receivable. We provide an allowance for doubtful accounts for known and estimated potential losses arising from our sales to customers based on a periodic review of these accounts. | |||
Inventories and cost of sales. We state inventories at the lower of cost or market, net of allowance for obsolete and slow-moving inventories. We generally base inventory costs for all inventory categories on average cost that approximates the first-in, first-out method. Inventories include the costs for raw materials, the cost to manufacture the raw materials into finished goods and overhead. Depending on the inventory’s stage of completion, our manufacturing costs can include the costs of packing and finishing, utilities, maintenance, depreciation, shipping and handling, and salaries and benefits associated with our manufacturing process. We allocate fixed manufacturing overhead based on normal production capacity. Unallocated overhead costs resulting from periods with abnormally low production levels are charged to expense as incurred. As inventory is sold to third parties, we recognize the cost of sales in the same period the sale occurs. We periodically review our inventory for estimated obsolescence or instances when inventory is no longer marketable for its intended use, and we record any write-down equal to the difference between the cost of inventory and its estimated net realizable value based on assumptions about alternative uses, market conditions and other factors. | |||
Land held for development. Land held for development relates to Basic Management, Inc. (“BMI”) and The Landwell Company L.P. (“Landwell”), for which we acquired a controlling interest in December 2013, see Note 3. The primary asset of Landwell is certain real property in Henderson, Nevada some of which we are developing for residential lots in a master planned community. Land held for development was recorded at the estimated acquisition date fair value based on a value per developable acre at the time of purchase. Development costs, including infrastructure improvements, real estate taxes, capitalized interest and other costs, some of which may be allocated, are capitalized during the period incurred. We allocate costs to each parcel sold on a pro-rata basis associated with the relevant development activity. As land parcels are sold, costs of land sales, including land and development costs, are allocated based on specific identification, relative sales value, square footage or a combination of these methods. All sales and marketing activities and general overhead are charged to selling, general and administrative expense as incurred. | |||
Investment in affiliates and joint ventures. We account for investments in more than 20%-owned but less than majority-owned companies by the equity method. See Note 7. We allocate any differences between the cost of each investment and our pro-rata share of the entity’s separately-reported net assets among the assets and liabilities of the entity based upon estimated relative fair values. We amortize these differences, which were not material at December 31, 2013, to income as the entities depreciate, amortize or dispose of the related net assets. | |||
Goodwill and other intangible assets; amortization expense. Goodwill represents the excess of cost over fair value of individual net assets acquired in business combinations. Goodwill is not subject to periodic amortization. We amortize other intangible assets by the straight-line method over their estimated lives and state them net of accumulated amortization. We evaluate goodwill for impairment, annually, or when circumstances indicate the carrying value may not be recoverable. We evaluate other intangible assets for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. See Note 8. | |||
Capitalized operating permits. Our Waste Management Segment capitalizes direct costs related to the acquisition or renewal of operating permits and amortize such costs by the straight-line method over the term of the applicable permit. Our net capitalized operating permit costs include (i) costs to renew certain permits for which the renewal application is pending with the applicable regulatory agency and (ii) costs to apply for certain new permits which have not yet been issued by the applicable regulatory authority. We currently expect renewal of the permits for which application is still pending will occur in the ordinary course of business, and we are amortizing costs related to such renewals from the date the prior permit expired. All operating permits are generally subject to renewal at the option of the issuing governmental agency. See Note 7. | |||
Property and equipment; depreciation expense. We state property and equipment at acquisition cost, including capitalized interest on borrowings during the actual construction period of major capital projects. In 2011, 2012 and 2013 we capitalized $3.3 million, $1.7 million and $1.6 million, respectively, of interest costs. We compute depreciation of property and equipment for financial reporting purposes (including mining equipment) principally by the straight-line method over the estimated useful lives of the assets as follows: | |||
Asset | Useful lives | ||
Buildings and improvements | 10 to 40 years | ||
Machinery and equipment | 3 to 20 years | ||
Mine development costs | Units-of-production | ||
Landfill disposal costs | Units-of-consumption | ||
We expense expenditures for maintenance, repairs and minor renewals as incurred that do not improve or extend the life of the assets, including planned major maintenance. | |||
We have a governmental concession with an unlimited term to operate our ilmenite mines in Norway. Mining properties consist of buildings and equipment used in our Norwegian ilmenite mining operations. While we own the land and ilmenite reserves associated with the mining operations, such land and reserves were acquired for nominal value and we have no material asset recognized for the land and reserves related to our mining operations. | |||
We operate waste disposal facilities. We capitalize preparation costs for landfill disposal cells, including costs relating to excavation and grading and the design and construction of liner and leachate collection system. We recognize closure and post closure costs as part of the carrying value disposal facilities. | |||
We perform impairment tests when events or changes in circumstances indicate the carrying value may not be recoverable. We consider all relevant factors. We perform the impairment test by comparing the estimated future undiscounted cash flows (exclusive of interest expense) associated with the asset to the asset’s net carrying value to determine if a write-down to fair value is required. | |||
Closure and post closure costs. The closure and post closure obligations related to our Waste Management Segment’s waste disposal sites are covered by the scope of ASC Topic 410, Asset Retirement and Environmental Obligations. We recognize the fair value of a liability for an asset retirement obligation in accordance with ASC Topic 410 in the period in which the liability is incurred, with an offsetting increase in the carrying amount of the related long-lived asset. Over time, we accrete the liability to its future value, and we depreciate the capitalized cost over the useful life of the related asset. The accretion and depreciation expenses are reported as a component of cost of sales in the accompanying statement of operations. We account for future revisions in the estimated fair value of the asset retirement obligation due to changes in the amount and/or timing of the expected future cash flows to settle the retirement obligation, prospectively as an adjustment to the previously-recognized asset retirement cost. Upon settlement of the liability, we will either settle the obligation for its recorded amount or incur a gain or loss upon settlement. See Note 10. | |||
Long-term debt. We state long-term debt net of any unamortized original issue premium or discount. We classify amortization of deferred financing costs and any premium or discount associated with the issuance of indebtedness as interest expense, and compute amortization by either the interest method or the straight-line method over the term of the applicable issue. | |||
Employee benefit plans. Accounting and funding policies for our retirement plans are described in Note 11. | |||
Income taxes. We and our qualifying subsidiaries are members of Contran’s consolidated U.S federal income tax group (the “Contran Tax Group”). We and certain of our qualifying subsidiaries also file consolidated income tax returns with Contran in various U.S. state jurisdictions. As a member of the Contran Tax Group, we are jointly and severally liable for the federal income tax liability of Contran and the other companies included in the Contran Tax Group for all periods in which we are included in the Contran Tax Group. See Note 17. As a member of the Contran Tax Group, we are a party to a tax sharing agreement which provides that we compute our tax provision for U.S. income taxes on a separate-company basis using the tax elections made by Contran. Pursuant to the tax sharing agreement, we make payments to or receive payments from Contran in amounts we would have paid to or received from the U.S. Internal Revenue Service or the applicable state tax authority had we not been a member of the Contran Tax Group. Generally, subsidiaries make payments to or receive payments from us in the amounts they would have paid to or received from the Internal Revenue Service or the applicable state tax authority had they not been members of the Contran Tax Group. We made net cash payments for income taxes to Contran of $10.3 million in 2011, $6.0 million in 2012 and $6.5 million in 2013. | |||
We recognize deferred income tax assets and liabilities for the expected future tax consequences of temporary differences between amounts recorded in our Consolidated Financial Statements and the tax basis of our assets and liabilities, including investments in our subsidiaries and affiliates who are not members of the Contran Tax Group and undistributed earnings of foreign subsidiaries which are not deemed to be permanently reinvested. In addition, we recognize deferred income taxes with respect to the excess of the financial reporting carrying amount over the income tax basis of our direct investment in Kronos common stock because the exemption under GAAP to avoid recognition of such deferred income taxes is not available to us. The earnings of our foreign subsidiaries subject to permanent reinvestment plans aggregated $.9 billion at December 31, 2013 (at December 31, 2012 the amount was $1.0 billion). It is not practical for us to determine the amount of the unrecognized deferred income tax liability related to these earnings due to the complexities associated with the U.S. taxation on earnings of foreign subsidiaries repatriated to the U.S. We periodically evaluate our deferred tax assets in the various taxing jurisdictions in which we operate and adjust any related valuation allowance based on the estimate of the amount of such deferred tax assets we believe does not meet the more-likely-than-not recognition criteria. | |||
We record a reserve for uncertain tax positions where we believe it is more-likely-than-not our position will not prevail with the applicable tax authorities. The amount of the benefit associated with our uncertain tax positions that we recognize is limited to the largest amount for which we believe the likelihood of realization is greater than 50%. We accrue penalties and interest on the difference between tax positions taken on our tax returns and the amount of benefit recognized for financial reporting purposes. We classify our reserves for uncertain tax positions in a separate current or noncurrent liability, depending on the nature of the tax position. See Note 12. | |||
Environmental remediation and related costs. We record liabilities related to environmental remediation and related costs when estimated future expenditures are probable and reasonably estimable. We adjust these accruals as further information becomes available to us or as circumstances change. We generally do not discount estimated future expenditures to its present value due to the uncertainty of the timing of the ultimate payout. We recognize any recoveries of remediation costs from other parties when we deem their receipt to be probable. We expense any environmental remediation related legal costs as incurred. At December 31, 2012 and 2013, we had not recognized any receivables for recoveries. See Note 17. | |||
Net sales. We record sales when products are shipped and title and other risks and rewards of ownership have passed to the customer, or when we perform services. We include amounts charged to customers for shipping and handling costs in net sales. We state sales net of price, early payment and distributor discounts and volume rebates. We report taxes assessed by a governmental authority such as sales, use, value added, excise taxes and fees from the State of Texas and Andrews County, Texas on a net basis (i.e., we do not recognize these taxes in either our revenues or in our costs and expenses). | |||
Selling, general and administrative expenses; shipping and handling costs; advertising costs; research and development costs. Selling, general and administrative expenses include costs related to marketing, sales, distribution, shipping and handling, research and development, legal, environmental remediation and administrative functions such as accounting, treasury and finance, and includes costs for salaries and benefits not associated with our manufacturing process, travel and entertainment, promotional materials and professional fees. Shipping and handling costs of our Chemicals Segment were approximately $93 million in 2011, $89 million in 2012 and $93 million in 2013. Shipping and handling costs of our Component Products and Waste Management Segments are not material. We expense advertising and research, development and sales technical support costs as incurred. Advertising costs attributable to continuing operations were approximately $2 million in 2011, $1 million in 2012 and $2 million in 2013. Research, development and certain sales technical support costs attributable to continuing operations were approximately $20 million in 2011, $19 million in 2012 and $18 million in 2013. |
Business_and_Geographic_Segmen
Business and Geographic Segments | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Business and Geographic Segments | ' | |||||||||||
Note 2—Business and geographic segments: | ||||||||||||
Business segment | Entity | % controlled at | ||||||||||
December 31, 2013 | ||||||||||||
Chemicals | Kronos | 80% | ||||||||||
Component products | CompX | 87% | ||||||||||
Waste management | WCS | 100% | ||||||||||
Our control of Kronos includes 50% we hold directly and 30% held directly by NL. We own 83% of NL. Our control of CompX is through NL. See Note 3. | ||||||||||||
We are organized based upon our operating subsidiaries. Our operating segments are defined as components of our consolidated operations about which separate financial information is available that is regularly evaluated by our chief operating decision maker in determining how to allocate resources and in assessing performance. Each operating segment is separately managed, and each operating segment represents a strategic business unit offering different products. | ||||||||||||
We have the following three consolidated reportable operating segments. | ||||||||||||
· | Chemicals—Our chemicals segment is operated through our majority control of Kronos. Kronos is a leading global producer and marketer of value-added titanium dioxide pigments (“TiO2”), TiO2 is used to impart whiteness, brightness, opacity and durability to a wide variety of products, including paints, plastics, paper, fibers and ceramics. Additionally, TiO2 is a critical component of everyday applications, such as coatings, plastics and paper, as well as many specialty products such as inks, foods and cosmetics. See Note 7. | |||||||||||
· | Component Products—We operate in the component products industry through our majority control of CompX. CompX is a leading manufacturer of engineered components utilized in a variety of applications and industries. CompX manufactures engineered components that are sold to a variety of industries including recreational transportation, postal, office and institutional furniture, cabinetry, tool storage, healthcare, gas stations and vending equipment. All of CompX production facilities are in the United States. Prior to December, 2012 CompX also manufactured slides, pulls and ergonomic supports. See Note 3. | |||||||||||
· | Waste Management—WCS is our subsidiary which operates a West Texas facility for the processing, treatment, storage and disposal of a broad range of low-level radioactive, hazardous, toxic and other wastes. WCS obtained a byproduct disposal license in 2008 and began disposal operations at this facility in October 2009. WCS received a low-level radioactive waste (“LLRW”) disposal license in September 2009. The Compact LLRW commenced operations in 2012 and the Federal LLRW commenced operations in 2013. | |||||||||||
We evaluate segment performance based on segment operating income, which we define as income before income taxes and interest expense, exclusive of certain non-recurring items (such as gains or losses on disposition of business units and other long-lived assets outside the ordinary course of business and certain legal settlements) and certain general corporate income and expense items (including securities transactions gains and losses and interest and dividend income), which are not attributable to the operations of the reportable operating segments. The accounting policies of our reportable operating segments are the same as those described in Note 1. Segment results we report may differ from amounts separately reported by our various subsidiaries and affiliates due to purchase accounting adjustments and related amortization or differences in how we define operating income. Intersegment sales are not material. | ||||||||||||
Interest income included in the calculation of segment operating income is not material in 2011, 2012 or 2013. Capital expenditures include additions to property and equipment but exclude amounts we paid for business units acquired in business combinations. Depreciation and amortization related to each reportable operating segment includes amortization of any intangible assets attributable to the segment. Amortization of deferred financing costs and any premium or discount associated with the issuance of indebtedness is included in interest expense. | ||||||||||||
Segment assets are comprised of all assets attributable to each reportable operating segment, including goodwill and other intangible assets. Our investment in the TiO2 manufacturing joint venture (see Note 7) is included in the Chemicals Segment assets. Corporate assets are not attributable to any operating segment and consist principally of cash and cash equivalents, restricted cash equivalents, marketable securities and land held for development. At December 31, 2013, approximately 10% of corporate assets were held by NL (in 2012 the percentage was 15%), with substantially all of the remainder held directly by Valhi, BMI and Landwell. | ||||||||||||
Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Net sales: | ||||||||||||
Chemicals | $ | 1,943.30 | $ | 1,976.30 | $ | 1,732.40 | ||||||
Component products | 79.8 | 83.2 | 92 | |||||||||
Waste management | 2 | 27.8 | 39.2 | |||||||||
Total net sales | $ | 2,025.10 | $ | 2,087.30 | $ | 1,863.60 | ||||||
Cost of sales: | ||||||||||||
Chemicals | $ | 1,197.50 | $ | 1,418.20 | $ | 1,622.60 | ||||||
Component products | 55.6 | 58.9 | 64.5 | |||||||||
Waste management | 25.3 | 35 | 42.3 | |||||||||
Total cost of sales | $ | 1,278.40 | $ | 1,512.10 | $ | 1,729.40 | ||||||
Gross margin: | ||||||||||||
Chemicals | $ | 745.8 | $ | 558.1 | $ | 109.8 | ||||||
Component products | 24.2 | 24.3 | 27.5 | |||||||||
Waste management | (23.3 | ) | (7.2 | ) | (3.1 | ) | ||||||
Total gross margin | $ | 746.7 | $ | 575.2 | $ | 134.2 | ||||||
Operating income (loss): | ||||||||||||
Chemicals | $ | 553 | $ | 366.8 | $ | (125.4 | ) | |||||
Component products | 6.4 | 5.4 | 9.3 | |||||||||
Waste management | (38.0 | ) | (26.8 | ) | (22.6 | ) | ||||||
Total operating income (loss) | 521.4 | 345.4 | (138.7 | ) | ||||||||
Equity in earnings of joint venture | (.5 | ) | (.2 | ) | 0.5 | |||||||
General corporate items: | ||||||||||||
Securities earnings | 28.6 | 50.2 | 26.6 | |||||||||
Insurance recoveries | 16.9 | 3.3 | 9.4 | |||||||||
Litigation settlement gain | — | 14.7 | — | |||||||||
Gain on sale of excess property | — | 3.2 | — | |||||||||
Goodwill impairment | — | (6.4 | ) | — | ||||||||
Gain on bargain purchase and remeasurement of existing investment in acquiree | — | — | 54.6 | |||||||||
General expenses, net | (40.7 | ) | (45.3 | ) | (105.3 | ) | ||||||
Loss on prepayment of debt, net | (3.1 | ) | (7.2 | ) | (8.9 | ) | ||||||
Interest expense | (61.8 | ) | (56.3 | ) | (56.1 | ) | ||||||
Income (loss) from continuing operations before income taxes | $ | 460.8 | $ | 301.4 | $ | (217.9 | ) | |||||
Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Depreciation and amortization: | ||||||||||||
Chemicals | $ | 50.2 | $ | 50.4 | $ | 52.8 | ||||||
Component products* | 6.8 | 5.8 | 3.3 | |||||||||
Waste management | 6.8 | 13.2 | 18.4 | |||||||||
Total | $ | 63.8 | $ | 69.4 | $ | 74.5 | ||||||
Capital expenditures: | ||||||||||||
Chemicals | $ | 68.6 | $ | 74.9 | $ | 67.6 | ||||||
Component products* | 3.2 | 4.3 | 3.5 | |||||||||
Waste management | 74.3 | 19.6 | 3.5 | |||||||||
Corporate | 0.1 | — | — | |||||||||
Total | $ | 146.2 | $ | 98.8 | $ | 74.6 | ||||||
December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Total assets: | ||||||||||||
Operating segments: | ||||||||||||
Chemicals | $ | 2,189.70 | $ | 2,401.10 | $ | 1,984.80 | ||||||
Component products** | 141.4 | 82.3 | 83.1 | |||||||||
Waste management | 223.4 | 265 | 270.1 | |||||||||
Joint venture accounted for by the | 16.5 | 16.2 | — | |||||||||
equity method | ||||||||||||
Corporate and eliminations | 267 | 405.9 | 629.2 | |||||||||
Total | $ | 2,838.00 | $ | 3,170.50 | $ | 2,967.20 | ||||||
* | Includes discontinued operations for 2011 and 2012, see Note 3. | |||||||||||
** | Includes discontinued operations for 2011, see Note 3. | |||||||||||
Geographic information. We attribute net sales to the place of manufacture (point-of-origin) and the location of the customer (point-of-destination); we attribute property and equipment to their physical location. At December 31, 2013 the net assets of our non-U.S. subsidiaries included in consolidated net assets approximated $708 million (in 2012 the total was $775 million). | ||||||||||||
Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Net sales—point of origin: | ||||||||||||
United States | $ | 831.4 | $ | 1,153.80 | $ | 961.5 | ||||||
Germany | 1,039.70 | 977.7 | 915.8 | |||||||||
Canada | 301.7 | 339.1 | 246.5 | |||||||||
Norway | 245.1 | 284 | 261.3 | |||||||||
Belgium | 301.8 | 272.9 | 254.6 | |||||||||
Eliminations | (694.6 | ) | (940.2 | ) | (776.1 | ) | ||||||
Total | $ | 2,025.10 | $ | 2,087.30 | $ | 1,863.60 | ||||||
Net sales—point of destination: | ||||||||||||
North America | $ | 578.2 | $ | 760.7 | $ | 690.5 | ||||||
Europe | 1,141.30 | 1,011.40 | 905 | |||||||||
Asia and other | 305.6 | 315.2 | 268.1 | |||||||||
Total | $ | 2,025.10 | $ | 2,087.30 | $ | 1,863.60 | ||||||
December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Net property and equipment: | ||||||||||||
United States** | $ | 189 | $ | 211.9 | $ | 232.8 | ||||||
Germany | 259.6 | 271.2 | 292.9 | |||||||||
Canada** | 80 | 73 | 67.1 | |||||||||
Norway | 101.5 | 109.5 | 100.9 | |||||||||
Belgium | 86 | 97.5 | 102.7 | |||||||||
Taiwan** | 7.7 | — | — | |||||||||
Total | $ | 723.8 | $ | 763.1 | $ | 796.4 | ||||||
** | Includes discontinued operations for 2011, see Note 3. |
Business_Combinations_Disconti
Business Combinations, Discontinued Operations and Related Transactions | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Business Combinations, Discontinued Operations and Related Transactions | ' | |||||||
Note 3—Business combinations, discontinued operations and related transactions: | ||||||||
Kronos Worldwide, Inc. | ||||||||
Prior to 2011, Kronos’ board of directors authorized the repurchase of up to 2.0 million shares of its common stock in open market transactions, including block purchases, or in privately-negotiated transactions at unspecified prices and over an unspecified period of time. Kronos may repurchase its common stock from time to time as market conditions permit. The stock repurchase program does not include specific price targets or timetables and may be suspended at any time. Depending on market conditions, Kronos may terminate the program prior to its completion. Kronos will use cash on hand to acquire the shares. Repurchased shares will be added to Kronos’ treasury and cancelled. During 2013 Kronos repurchased approximately 49,000 shares for an aggregate of $.7 million under its repurchase program. The 2013 purchases are the only purchases Kronos has made to date under the plan and at December 31, 2013 approximately 1.95 million shares are available for repurchase. | ||||||||
CompX International Inc. | ||||||||
Prior to 2011, CompX’s board of directors authorized various repurchases of its Class A common stock in open market transactions, including block purchases, or in privately-negotiated transactions at unspecified prices and over an unspecified period of time. CompX may repurchase its common stock from time to time as market conditions permit. The stock repurchase program does not include specific price targets or timetables and may be suspended at any time. Depending on market conditions, CompX may terminate the program prior to its completion. CompX will generally use cash on hand to acquire the shares. Repurchased shares will be added to CompX’s treasury and cancelled. CompX did not make any repurchases under the plan during 2011, 2012 and 2013, and at December 31, 2013 approximately 678,000 shares were available for purchase under these authorizations. | ||||||||
Discontinued operations—On December 28, 2012, CompX completed the sale of its furniture components operations to a competitor of that business for proceeds, net of expenses, of approximately $58.0 million in cash. We recognized a pre-tax gain in 2012 of $23.7 million on the disposal of these operations ($15.7 million, or $.05 per basic and diluted share, net of income taxes and noncontrolling interest, as shown in the table below). Such pre-tax gain includes income of $10.4 million associated with the reclassification out of accumulated other comprehensive income related to foreign currency translation. The income taxes associated with the pre-tax gain on disposal is less than the U.S. statutory income tax rate of 35% principally due to the utilization of foreign tax credits, the benefit of which had previously not been recognized in part because such benefit did not meet the “more-likely-than-not” recognition criteria and in part because we have not previously elected to claim a credit with respect to foreign income taxes paid because our tax elections are consistent with the elections of Contran and Contran had not previously elected to claim credit. The furniture components operations primarily sold products with lower average margins and higher commodity raw material content than other operations of CompX’s business. We believe disposing of this business enables us to focus more effort on continuing to develop the remaining portion of CompX’s business that we believe has greater opportunity for higher returns and with less volatility in the cost of commodity raw materials. | ||||||||
Selected financial data for the operations of the disposed furniture Components business is presented below: | ||||||||
Years ended December 31, | ||||||||
2011 | 2012 | |||||||
(In millions) | ||||||||
Income statement: | ||||||||
Net sales | $ | 59 | $ | 60.7 | ||||
Operating income | $ | 9.1 | $ | 7.4 | ||||
Income from discontinued operations: | ||||||||
Income before taxes | $ | 9.1 | $ | 7.2 | ||||
Income tax expense | 5 | 3.5 | ||||||
Income from discontinued operations, net of tax | 4.1 | 3.7 | ||||||
Gain on sale of discontinued operations: | ||||||||
Gain on sale | — | 23.7 | ||||||
Income tax expense | — | 1.9 | ||||||
Gain on sale discontinued operations, net of tax | — | 21.8 | ||||||
Total discontinued operations, net of tax | 4.1 | 25.5 | ||||||
Noncontrolling interest in income from discontinued operations | 1.1 | 1 | ||||||
Noncontrolling interest in gain on sale of discontinued operations | — | 6.1 | ||||||
Total noncontrolling interest in discontinued operations | 1.1 | 7.1 | ||||||
Total discontinued operations, net of tax and | $ | 3 | $ | 18.4 | ||||
noncontrolling interest | ||||||||
In accordance with generally accepted accounting principles, the assets and liabilities relating to the furniture components business were eliminated from our 2012 Consolidated Balance Sheet at the date of sale. We have reclassified our Consolidated Statements of Operations to reflect the disposed business as discontinued operations for all periods presented. We have not reclassified our December 31, 2011 or 2012 Consolidated Statements of Cash Flows to reflect discontinued operations. | ||||||||
In conjunction with the sale of CompX’s furniture components reporting unit, the buyer was not interested in retaining certain undeveloped land located in Taiwan owned by CompX’s Taiwanese Furniture Component subsidiary. We had no additional use for the undeveloped land in Taiwan and therefore expected the land to be sold to a third party with CompX receiving the net proceeds. Based on the legal form of how we completed the disposal transaction, our interest in the land was represented by a $3.0 million promissory note receivable at December 31, 2012, issued to CompX by its former Taiwanese subsidiary which retained legal ownership in the land to facilitate the future sale of the land to a third party. The proceeds from the sale of the land were required to be used to settle the note receivable. Such note receivable was classified as part of other current assets in our Consolidated Balance Sheet at December 31, 2012. In 2013 the land was sold to a third party for $3.0 million. | ||||||||
Basic Management, Inc. and The Landwell Company | ||||||||
Prior to December 2013, we owned a 32% interest in BMI, which among other things provides utility services to an industrial park located in Henderson, NV, and is responsible for the delivery of water to the city of Henderson and various other users through a water distribution system owned by BMI. We also had a 12% interest in Landwell, which is actively engaged in efforts to develop certain real estate in Henderson, Nevada. BMI owns an additional 50% interest in Landwell. We accounted for our 32% interest in BMI and Landwell by the equity method of accounting. See Note 7. Three other entities owned the remaining ownership interest in BMI (a 32% interest, a 31% interest and a 5% interest) and Landwell (a 21% interest, a 15% interest and a 2% interest). Provisions in the governing documents of BMI and Landwell give BMI and Landwell and their owners a right of first refusal upon any proposed transfer of an ownership interest in BMI and Landwell. | ||||||||
Prior to November 2010, the 31% ownership interest in BMI and the 15% ownership interest in Landwell indicated above were held by Tronox Incorporated, which among other things conducted operations at the Henderson industrial complex. Tronox filed for bankruptcy protection in January 2009. As part of Tronox’ plan of reorganization, in November 2010 such BMI and Landwell interests were transferred to the Nevada Environmental Response Trust (“NERT”), with the consent of BMI and Landwell and its owners (including us), and the parties agreed to negotiate to establish the price at which such BMI and Landwell interests would be transferred to BMI and Landwell or their owners. Such negotiations continued until February 2012, when the parties reached agreement as to the basic monetary terms of such transfer. Further negotiations over all of the terms and conditions of a definitive agreement continued until December 2013, when the parties reached agreement as to all terms and conditions, including the fact that we would acquire the BMI and Landwell interests formerly owned by Tronox, with the consent of BMI and Landwell and their other owners (who elected not to exercise their right-of-first-refusal rights). | ||||||||
As a result, in December 2013 we completed the acquisition of the 31% ownership interest in BMI and the 15% ownership interest in Landwell held by NERT. We completed this acquisition because it allowed us to obtain control of BMI and Landwell (with the consent of BMI and Landwell and their other owners), which increased our direct ownership interest of BMI to 63% and our direct ownership of Landwell to 27%, which also resulted in our control of 77% of Landwell (given BMI’s 50% ownership interest in Landwell our controlling ownership of BMI and our 27% direct ownership of Landwell). The other owners did not exercise their first refusal or participation rights and accordingly did not participate in the acquisition of the additional interest of the BMI and Landwell interests. As part of this transaction with NERT, we also acquired one parcel of real property located in Henderson, and acquired an option to purchase four additional parcels of real property located in Henderson, at our option, without the payment of additional consideration to NERT. These five additional parcels, which NERT had also acquired as part of Tronox’ plan of reorganization, are not part of the land currently being developed by Landwell but are located in or are adjacent to the industrial park. The aggregate fair value of the total consideration we gave for the acquisition of BMI and Landwell interest, the parcel of real property acquired and the option to acquire the four other parcels was $32.6 million consisting of $5.3 million in cash, a $19.1 million promissory note secured by the real property acquired, and a $11.1 million deferred payment obligation (which was discounted to present value of $8.2 million, as discussed below). The acquisition of the BMI and Landwell interests, the parcel of real property and the option for the four additional parcels is accounted for as a business combination under GAAP. The application of the purchase method of accounting for business combinations requires us to use significant estimates and assumptions in the determination of the estimated fair value of assets acquired and liabilities assumed; it also requires us to remeasure our existing ownership interest in BMI and Landwell to their estimated fair value. Our estimates of the fair values of assets acquired and liabilities assumed are based upon assumptions we believe are reasonable, and when appropriate, includes assistance from independent third-party valuation firms. | ||||||||
The $19.1 million promissory note bears interest at 3% per annum, with interest payable annually and all principal due in December 2023. The promissory note is collateralized by the BMI and Landwell interests acquired as well as the real property acquired as part of the transaction. The note may be prepaid at any time, without penalty. We must make mandatory prepayments on the note in specified amounts whenever we receive distributions from BMI or Landwell, or in the event we sell any of the real property acquired. The acquisition date estimated fair value of this promissory note is equal to its $19.1 million face amount. | ||||||||
The $11.1 million deferred payment obligation bears interest at 3% per annum, commencing in December 2023, and is collateralized by the BMI and Landwell interests acquired. The deferred payment obligation has no specified maturity date. We are required to make repayments on the deferred payment obligation, in specified amounts, whenever we receive distributions from BMI and Landwell, and we may make voluntary repayments on the deferred payment obligation at any time, in each case without any penalty, but in any case only after the promissory note discussed above has been repaid in full. For financial reporting purposes, the acquisition date estimated fair value of the deferred payment obligation is approximately $8.2 million, which was determined by discounting the $11.1 million face amount to its present value using a 3% discount rate from December 2023 (when it becomes interest bearing at 3%). | ||||||||
Upon gaining ownership of the BMI and Landwell interests formerly held by Tronox in 2010, NERT concluded that it would not be appropriate to take part in any corporate activities of BMI and Landwell, due to (i) the inherent conflict of interest associated with the fact that NERT was responsible to the Nevada Department of Environmental Protection with respect to the remediation of property NERT had acquired as a result of the Tronox plan of reorganization (including the five parcels of real property discussed above as well as other real property formerly owned by Tronox in Nevada), (ii) BMI and Landwell were involved in certain environmental remediation activities associated with the real property owned by Landwell which was under development, and (iii) NERT was also charged with maximizing the value of its assets, including the interests in BMI and Landwell as well as the real property it held directly. Accordingly, NERT never appointed any representatives to the board of directors of BMI, representatives of NERT never attended any BMI and Landwell board meetings, and at NERT’s request NERT was not provided any financial statements or other information regarding BMI and Landwell and their respective activities. In addition NERT (which received some cash and other assets at its formation as part of the Tronox plan of reorganization and also received the BMI/Landwell interests as well as the real property formerly owned by Tronox) knew it would need to raise funds in order to continue the environmental remediation obligation it assumed as part of its formation because the cash it received at its formation was substantially less than the amount it would need in order to continue such remediation. We believe that due to these conflicts and its desire to raise cash, NERT determined it needed to divest itself of the BMI and Landwell interests as soon as was practicable. And given the provisions of the governing documents of BMI and Landwell that gave BMI and Landwell and their other owners a right-of-first-refusal, there were a limited number of potential buyers for the BMI and Landwell interests held by NERT. | ||||||||
For financial reporting purposes, the assets acquired and liabilities assumed of BMI and Landwell have been included in our Consolidated Balance Sheet as of December 31, 2013, and the results of the operations and cash flows of BMI and Landwell will be included in our Consolidated Statement of Operations and Cash Flows beginning January 1, 2014. Our costs associated with the acquisition are not material. | ||||||||
We remeasured our existing ownership interests in BMI and Landwell to their estimated fair value at the acquisition date in accordance with ASC 805-10-25, for a business combination which occurs in stages (because we previously had an ownership interest in BMI and Landwell). As a result of such remeasurement, we recognized a pre-tax gain of $26.6 million in December 2013, representing the difference between the $43.4 million estimated fair value of our existing ownership interests in BMI and Landwell at the acquisition date and their aggregate $16.8 million carrying value at the acquisition date. Such pre-tax gain is included in part of “Other income, net” in our Consolidated Statement of Operations and is part of the line item captioned “Gain on bargain purchase and remeasurement of our existing investment in acquiree” in Note 15. | ||||||||
Under ASC 805-30-25, a “bargain purchase” occurs when the acquisition-date amounts for the identifiable net assets acquired (measured as required by applicable GAAP) exceeds the sum of (i) the fair value of the consideration transferred to gain control of the acquiree, (ii) the fair value of any previously-held ownership interests in the acquiree and (iii) the fair value of any noncontrolling interest in the acquiree that exits at the acquisition date. If a bargain purchase is initially identified, the acquirer is to reassess whether all of the assets acquired and liabilities assumed have been appropriately identified, recognized and measured, and whether the fair value of the consideration transferred, previously-held ownership interests and noncontrolling interests that exist at the acquisition date have been appropriately measured. If after this reassessment, if a bargain purchase is still indicated, it is recognized as a gain in earnings. After performing such reassessment with respect to this acquisition, we determined a bargain purchase exists. We believe this acquisition gave rise to a bargain purchase because of NERT’s decision to sell the BMI and Landwell interests it acquired as part of the Tronox plan of reorganization (for the reasons discussed above), the right-of-first-refusal rights granted to BMI and Landwell and their owners under the governing documents of BMI and Landwell and the time (22 months) it took to reach agreement on the terms and conditions of a definitive agreement after reaching agreement on the basic monetary terms. This preliminary bargain purchase gain aggregated $28.0 million, and is included in part of “Other Income, net” in our Consolidated Statement of Operations and is part of the line item captioned “Gain on bargain purchase and remeasurement of our existing investment in acquiree” in Note 15. | ||||||||
The following table summarizes the aggregate fair value of the consideration we paid to gain control of BMI and Landwell, the one parcel of real property acquired and the option to acquire the remaining four parcels of real property (which collectively are estimated to have a fair value of $14.9 million), and our current estimates for the fair value of our existing ownership interests in BMI and Landwell, the gain on bargain purchase recognized, the amounts assigned to the identifiable assets acquired and liabilities assumed at the acquisition date and the fair value of the noncontrolling interest in BMI and Landwell that exists as the acquisition date. The purchase price allocation for BMI and Landwell indicated below is preliminary and is subject to further refinement as management’s estimates of the valuation of certain assets acquired and liabilities assumed, including but not limited to the land held for development, certain property, plant and equipment, is not yet completed pending the final independent fair value appraisal. Accordingly, the amounts we ultimately assign to the assets acquired and liabilities assumed and the noncontrolling interest in BMI and Landwell at the acquisition date may change, and the amount of the gain we recognized from remeasurement of our existing ownership interest in BMI and Landwell, and the bargain purchase gain we recognized, may similarly change once our preliminary purchase allocation is finalized. Any such change in the amount of the gain from remeasurement and the bargain purchase gain recognized would be accounted for retrospectively, in accordance with ASC 805-10-25. Our final purchase price allocation will be based upon an independent appraisal of the assets acquired and liabilities assumed of BMI and Landwell, including the fair value of the noncontrolling interest in BMI and Landwell at the acquisition date, using the fair value measurement principles of ASC 820. Such independent appraisal is considered a Level III input under ASC 820. | ||||||||
Based on our preliminary analysis of the provisional amounts of the transaction at December 31, 2013 we recognized the following: | ||||||||
(In millions) | ||||||||
Consideration: | ||||||||
Cash | $ | 5.3 | ||||||
Promissory note payable | 19.1 | |||||||
Deferred payment, obligation ($11.1 million face value) | 8.2 | |||||||
Total fair value of consideration | 32.6 | |||||||
Fair value of existing equity interest in BMI and Landwell | 43.4 | |||||||
Bargain purchase gain recognized | 28 | |||||||
Preliminary total | $ | 104 | ||||||
Preliminary allocation of purchase price to identifiable assets acquired and liabilities assumed: | ||||||||
Cash | $ | 27.4 | ||||||
Land held for development: | ||||||||
Current | 14.3 | |||||||
Noncurrent | 158.1 | |||||||
Other current assets | 9.4 | |||||||
Property, plant and equipment | 29 | |||||||
Other noncurrent assets | 8.5 | |||||||
Long-term debt | (14.3 | ) | ||||||
Other liabilities | (66.9 | ) | ||||||
Total net identifiable assets | 165.5 | |||||||
Noncontrolling interest in BMI and Landwell | (61.5 | ) | ||||||
Preliminary total | $ | 104 | ||||||
The pro forma effect on our Consolidated Statement of Operations for 2013 and 2012, assuming the acquisition of BMI and Landwell had occurred at the beginning of such periods, is not material. |
Marketable_Securities
Marketable Securities | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Marketable Securities | ' | |||||||||||||||
Note 4—Marketable securities: | ||||||||||||||||
Market | Cost | Unrealized | ||||||||||||||
value | basis | gains, | ||||||||||||||
net | ||||||||||||||||
(In millions) | ||||||||||||||||
December 31, 2012: | ||||||||||||||||
Current assets | $ | 0.9 | $ | 0.9 | $ | — | ||||||||||
Noncurrent assets: | ||||||||||||||||
The Amalgamated Sugar Company LLC | $ | 250 | $ | 250 | $ | — | ||||||||||
Other | 6.8 | 6.7 | 0.1 | |||||||||||||
Total | $ | 256.8 | $ | 256.7 | $ | 0.1 | ||||||||||
December 31, 2013: | ||||||||||||||||
Current assets | $ | 3.8 | $ | 3.8 | $ | — | ||||||||||
Noncurrent assets: | ||||||||||||||||
The Amalgamated Sugar Company LLC | $ | 250 | $ | 250 | $ | — | ||||||||||
Other | 3.3 | 3.3 | — | |||||||||||||
Total | $ | 253.3 | $ | 253.3 | $ | — | ||||||||||
Fair Value Measurements | ||||||||||||||||
Total | Quoted | Significant | Significant | |||||||||||||
Prices in | Other | Unobservable | ||||||||||||||
Active | Observable | Inputs | ||||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(In millions) | ||||||||||||||||
December 31, 2012: | ||||||||||||||||
Current assets | $ | 0.9 | $ | — | $ | 0.9 | $ | — | ||||||||
Noncurrent assets: | ||||||||||||||||
The Amalgamated Sugar Company LLC | $ | 250 | $ | — | $ | — | $ | 250 | ||||||||
Mutual funds and common stocks | 6.8 | 3.5 | 3.3 | — | ||||||||||||
Total | $ | 256.8 | $ | 3.5 | $ | 3.3 | $ | 250 | ||||||||
December 31, 2013: | ||||||||||||||||
Current assets | $ | 3.8 | $ | 2.4 | $ | 1.4 | $ | — | ||||||||
Noncurrent assets: | ||||||||||||||||
The Amalgamated Sugar Company LLC | $ | 250 | $ | — | $ | — | $ | 250 | ||||||||
Fixed income securities | 1.9 | — | 1.9 | — | ||||||||||||
Mutual funds and common stocks | 1.4 | 1.4 | — | — | ||||||||||||
Total | $ | 253.3 | $ | 1.4 | $ | 1.9 | $ | 250 | ||||||||
Amalgamated Sugar. Prior to 2011, we transferred control of the refined sugar operations previously conducted by our wholly-owned subsidiary, The Amalgamated Sugar Company, to Snake River Sugar Company, an Oregon agricultural cooperative formed by certain sugar beet growers in Amalgamated’s areas of operations. Pursuant to the transaction, we contributed substantially all of the net assets of our refined sugar operations to The Amalgamated Sugar Company LLC, a limited liability company controlled by Snake River, on a tax-deferred basis in exchange for a non-voting ownership interest in the LLC. The cost basis of the net assets we transferred to the LLC was approximately $34 million. When we transferred control of our operations to Snake River in return for our interest in the LLC, we recognized a gain in earnings equal to the difference between $250 million (the fair value of our investment in the LLC as evidenced by its $250 million redemption price, as discussed below) and the $34 million cost basis of the net assets we contributed to the LLC, net of applicable deferred income taxes. Therefore, the cost basis of our investment in the LLC is $250 million. As part of this transaction, Snake River made certain loans to us aggregating $250 million. These loans are collateralized by our interest in the LLC. See Notes 9 and 15. | ||||||||||||||||
We and Snake River share in distributions from the LLC up to an aggregate of $26.7 million per year (the “base” level), with a preferential 95% share going to us. To the extent the LLC’s distributions are below this base level in any given year, we are entitled to an additional 95% preferential share of any future annual LLC distributions in excess of the base level until the shortfall is recovered. Under certain conditions, we are entitled to receive additional cash distributions from the LLC. At our option, we may require the LLC to redeem our interest in the LLC, and the LLC has the right to redeem, at their option, our interest in the LLC beginning in 2027. The redemption price is generally $250 million plus the amount of certain undistributed income allocable to us. If we require the LLC to redeem our interest in the LLC, Snake River has the right to accelerate the maturity of and call our $250 million loans from Snake River. | ||||||||||||||||
The LLC Company Agreement contains certain restrictive covenants intended to protect our interest in the LLC, including limitations on capital expenditures and additional indebtedness of the LLC. We also have the ability to temporarily take control of the LLC if our cumulative distributions from the LLC fall below specified levels, subject to satisfaction of certain conditions imposed by Snake River’s current third-party senior lenders. | ||||||||||||||||
Prior to 2011, Snake River agreed that the annual amount of distributions we receive from the LLC would exceed the annual amount of interest payments we owe to Snake River on our $250 million in loans from Snake River by at least $1.8 million. If we receive less than the required minimum amount, certain agreements we previously made with Snake River and the LLC, including a reduction in the amount of cumulative distributions that we must receive from the LLC in order to prevent us from becoming able to temporarily take control of the LLC, would retroactively become null and void and we would be able to temporarily take control of the LLC if we so desired. Through December 31, 2013, Snake River and the LLC maintained the applicable minimum required levels of cash flows to us. | ||||||||||||||||
We report the cash distributions received from the LLC as dividend income. We recognize distributions when they are declared by the LLC, which is generally the same month we receive them, although in certain cases distributions may be paid on the first business day of the following month. See Note 15. The amount of such future distributions we will receive from the LLC is dependent upon, among other things, the future performance of the LLC’s operations. Because we receive preferential distributions from the LLC and we have the right to require the LLC to redeem our interest for a fixed and determinable amount beginning at a fixed and determinable date, we account for our investment in the LLC as a marketable security carried at its cost basis of $250 million. The cost basis is also the fair value of our investment determined using Level 3 inputs as the $250 million redemption price of our investment in the LLC as well as the amount of our debt owed to Snake River Company that is collateralized by our investment in the LLC. There has been no change to the fair value of our Amalgamated Sugar investment during 2011, 2012 or 2013. We do not expect to report a gain on the redemption at the time our LLC interest is redeemed, as the redemption price of $250 million is expected to equal the carrying value of our investment in the LLC at the time of redemption. | ||||||||||||||||
Other. The fair value of our other marketable securities are either determined using Level 1 inputs (because the securities are actively traded) or determined using Level 2 inputs (because although these securities are traded, in many cases the market is not active and the year-end valuation is generally based on the last trade of the year, which may be several days prior to December 31). |
Accounts_and_Other_Receivables
Accounts and Other Receivables, Net | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounts and Other Receivables, Net | ' | |||||||
Note 5—Accounts and other receivables, net: | ||||||||
December 31, | ||||||||
2012 | 2013 | |||||||
(In millions) | ||||||||
Trade accounts receivable: | ||||||||
Kronos | $ | 229.7 | $ | 226.1 | ||||
CompX | 8.7 | 8.7 | ||||||
WCS | 4.8 | 7.2 | ||||||
VAT and other receivables | 42.2 | 32.7 | ||||||
Allowance for doubtful accounts | (1.5 | ) | (1.3 | ) | ||||
Total | $ | 283.9 | $ | 273.4 | ||||
Inventories_Net
Inventories, Net | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventories, Net | ' | |||||||
Note 6—Inventories, net: | ||||||||
December 31, | ||||||||
2012 | 2013 | |||||||
(In millions) | ||||||||
Raw materials: | ||||||||
Chemicals | $ | 151.5 | $ | 66.6 | ||||
Component products | 3.3 | 3.6 | ||||||
Total raw materials | 154.8 | 70.2 | ||||||
Work in process: | ||||||||
Chemicals | 27.3 | 18 | ||||||
Component products | 5.9 | 6.7 | ||||||
Total in-process products | 33.2 | 24.7 | ||||||
Finished products: | ||||||||
Chemicals | 395.6 | 263.3 | ||||||
Component products | 2.1 | 3 | ||||||
Total finished products | 397.7 | 266.3 | ||||||
Supplies (chemicals) | 64.6 | 69.4 | ||||||
Total | $ | 650.3 | $ | 430.6 | ||||
Investment_in_Affiliates_and_O
Investment in Affiliates and Other Assets | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Investment in Affiliates and Other Assets | ' | |||||||||||
Note 7—Investment in affiliates and other assets: | ||||||||||||
December 31, | ||||||||||||
2012 | 2013 | |||||||||||
(In millions) | ||||||||||||
Investment in affiliates: | ||||||||||||
Ti02 manufacturing joint venture | $ | 109.9 | $ | 102.3 | ||||||||
BMI and Landwell | 16.2 | — | ||||||||||
Total | $ | 126.1 | $ | 102.3 | ||||||||
Other assets: | ||||||||||||
Land held for development | $ | — | $ | 158.1 | ||||||||
Waste disposal site operating permits, net | 65.7 | 59.5 | ||||||||||
Restricted cash | 20.9 | 33.3 | ||||||||||
IBNR receivables | 6.7 | 6.9 | ||||||||||
Capital lease deposit | 6.2 | 6.2 | ||||||||||
Intangible assets | 0.2 | 5.2 | ||||||||||
Deferred financing costs | 7 | 2.6 | ||||||||||
Assets held for sale | 2.6 | 1.1 | ||||||||||
Other | 46.7 | 63.8 | ||||||||||
Total | $ | 156 | $ | 336.7 | ||||||||
Investment in TiO2 manufacturing joint venture. Our Chemicals Segment and another Ti02 producer, Tioxide Americas LLC (“Tioxide”), are equal owners of a manufacturing joint venture (Louisiana Pigment Company, L.P., or “LPC”) that owns and operates a TiO2 plant in Louisiana. Tioxide is a wholly-owned subsidiary of Huntsman Corporation. | ||||||||||||
We and Tioxide are both required to purchase one-half of the TiO2 produced by LPC, unless we and Tioxide agree otherwise (such as in 2012, when we purchased approximately 52% of the production from the plant). LPC operates on a break-even basis and, accordingly, we report no equity in earnings of LPC. Each owner’s acquisition transfer price for its share of the TiO2 produced is equal to its share of the joint venture’s production costs and interest expense, if any. Our share of net cost is reported as cost of sales as the related TiO2 acquired from LPC is sold. We report distributions we receive from LPC, which generally relate to excess cash generated by LPC from its non-cash production costs, and contributions we make to LPC, which generally relate to cash required by LPC when it builds working capital, as part of our cash flows from operating activities in our Consolidated Statements of Cash Flows. The components of our net distributions (contributions) from LPC are shown in the table below. | ||||||||||||
Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Distributions from LPC | $ | 29.7 | $ | 79.5 | $ | 70.7 | ||||||
Contributions to LPC | (25.9 | ) | (100.2 | ) | (59.8 | ) | ||||||
Net distributions (contributions) | $ | 3.8 | $ | (20.7 | ) | $ | 10.9 | |||||
Summary balance sheets of LPC are shown below: | ||||||||||||
December 31, | ||||||||||||
2012 | 2013 | |||||||||||
(In millions) | ||||||||||||
ASSETS | ||||||||||||
Current assets | $ | 139.8 | $ | 127.2 | ||||||||
Property and equipment, net | 126 | 114.1 | ||||||||||
Total assets | $ | 265.8 | $ | 241.3 | ||||||||
LIABILITIES AND PARTNERS’ EQUITY | ||||||||||||
Other liabilities, primarily current | $ | 43.2 | $ | 33.9 | ||||||||
Partners’ equity | 222.6 | 207.4 | ||||||||||
Total liabilities and partners’ equity | $ | 265.8 | $ | 241.3 | ||||||||
Summary income statements of LPC are shown below: | ||||||||||||
Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Revenues and other income: | ||||||||||||
Kronos | $ | 144.8 | $ | 250.2 | $ | 224.5 | ||||||
Tioxide | 145.7 | 227.5 | 224.6 | |||||||||
Total | 290.5 | 477.7 | 449.1 | |||||||||
Cost and expenses: | ||||||||||||
Cost of sales | 290.1 | 477.3 | 448.7 | |||||||||
General and administrative | 0.4 | 0.4 | 0.4 | |||||||||
Total | 290.5 | 477.7 | 449.1 | |||||||||
Net income | $ | — | $ | — | $ | — | ||||||
Investment in Basic Management and Landwell. As discussed in Note 3, prior to December 2013 we owned a 32% interest in BMI and a 12% interest in Landwell. BMI owns an additional 50% interest in Landwell, and we accounted for our ownership interests in BMI and Landwell by the equity method of accounting. In December 2013, we acquired a controlling interest in BMI and Landwell, and we ceased to account for BMI and Landwell by the equity method and began to account for BMI and Landwell as a consolidated subsidiary. For federal income tax purposes Landwell is treated as a partnership, and accordingly the combined results of operations of BMI and Landwell include a provision for income taxes on Landwell’s earnings only to the extent that such earnings accrue to BMI. We previously recorded our equity in earnings of BMI and Landwell on a one-quarter lag because their financial statements were generally not available to us on a timely basis. Upon gaining control of BMI and Landwell in December 2013, we eliminated the one-quarter lag by recognizing, in the fourth quarter of 2013, equity in earnings of BMI and Landwell attributable to the six-month period ended December 31, 2013. The effect of this one-quarter lag, as well as the effect of us recognizing five quarters of equity in earnings of BMI and Landwell in 2013, is not material to any period presented. Certain selected combined financial information of BMI and Landwell is summarized below. In addition, the combined revenues, income before income taxes and net income of BMI and Landwell for the three months ended December 31, 2013 is $15.9 million, $6.9 million and $5.3 million, respectively. | ||||||||||||
September 30, | ||||||||||||
2012 | ||||||||||||
(In millions) | ||||||||||||
ASSETS | ||||||||||||
Current assets | $ | 25.7 | ||||||||||
Prepaid costs and other | 11.6 | |||||||||||
Property and equipment, net | 6.4 | |||||||||||
Investment in undeveloped land and water rights | 42 | |||||||||||
Land and development costs | 12.7 | |||||||||||
Total assets | $ | 98.4 | ||||||||||
LIABILITIES AND EQUITY | ||||||||||||
Current liabilities | $ | 14.2 | ||||||||||
Long-term debt | 14.3 | |||||||||||
Deferred income taxes | 6 | |||||||||||
Other noncurrent liabilities | 3.4 | |||||||||||
Equity | 60.5 | |||||||||||
Total liabilities and equity | $ | 98.4 | ||||||||||
Twelve months ended September 30, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Total revenues | $ | 10 | $ | 10.4 | $ | 9.5 | ||||||
Loss before income taxes | (2.7 | ) | (1.2 | ) | (3.9 | ) | ||||||
Net loss | (2.1 | ) | (1.4 | ) | (3.7 | ) | ||||||
Land held for development. The land held for development relates to BMI and Landwell and is discussed in Notes 1 and 3. | ||||||||||||
Capitalized permit costs. We obtained our byproducts disposal license in 2008 and began amortizing such license when the byproduct disposal facility began operations in October 2009. We obtained our low-level radioactive waste (“LLRW”) license in September 2009. Our LLRW facilities commenced operations in 2012, at which time we began amortizing such license. Amortization of capitalized operating permit costs was $1.3 million in 2011, $4.9 million in 2012 and $6.5 million in 2013. Our estimated aggregate amortization expense for all our of capitalized permit costs as of December 31, 2013 is approximately $6.7 million in each of 2014 through 2018. Capitalized permit costs are stated net of accumulated amortization of $11.8 million at December 31, 2012 and $18.8 million at December 31, 2013. The components of net capitalized permit costs are presented in the table below. | ||||||||||||
December 31, | ||||||||||||
2012 | 2013 | |||||||||||
(In millions) | ||||||||||||
Net permit costs for: | ||||||||||||
Pending renewals of prior permits | $ | 0.2 | $ | — | ||||||||
Issued permits which are being amortized: | ||||||||||||
LLRW license (expires in 2024) | 58.3 | 54 | ||||||||||
Byproduct license (expires in 2018) | 5.6 | 4.6 | ||||||||||
Other (expires 2014 - 2024) | 1.6 | 0.9 | ||||||||||
Total pending renewals and issued permits which are being amortized | $ | 65.7 | $ | 59.5 | ||||||||
Assets held for sale. Prior to 2012, our assets held for sale consisted primarily of two facilities (land, building, and building improvements) and certain unimproved land, all of which were formerly used in Component Products Segment’s operations. These assets were classified as “assets held for sale” when they ceased to be used in our operations and met all of the applicable criteria under GAAP. During 2012 we obtained updated independent appraisals of the significant assets. Based on these appraisals, we recognized write-downs in the third quarter aggregating $.4 million to reduce the carrying value of the assets to their estimated fair value less cost to sell. Subsequently we sold the one of the facilities in December 2012 for net proceeds of $3.6 million, which net proceeds were less than the carrying amount of the assets and we therefore recognized a loss on the sale of the facility of approximately $.8 million during the fourth quarter of 2012. | ||||||||||||
In 2013 CompX sold its remaining facility for net proceeds of $1.6 million which approximated the carrying value of the assets as of the date of the sale. | ||||||||||||
We also recognized asset held for sale write-downs aggregating $1.1 million in 2011 related to these properties, associated with obtaining updated appraisals on the properties. These appraisals represent a Level 2 input as defined by ASC 820-10-35. | ||||||||||||
Other. We have certain related party transactions with LPC and Basic Management, as more fully described in Note 16. | ||||||||||||
The IBNR receivables relate to certain insurance liabilities, the risk of which we have reinsured with certain third party insurance carriers. We report the insurance liabilities related to these IBNR receivables which have been reinsured as part of noncurrent accrued insurance claims and expenses. Certain of our insurance liabilities are classified as current liabilities and the related IBNR receivables are classified with other current assets. See Notes 10 and 16. | ||||||||||||
Restricted cash relates primarily relates to our Chemicals (see Notes 9 and 12) and Waste Management Segments (see Note 17). | ||||||||||||
The capital lease deposit relates to certain indebtedness of our Waste Management Segment and is discussed in Note 9. |
Goodwill
Goodwill | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Goodwill | ' | |||||||||||||||
Note 8—Goodwill: | ||||||||||||||||
Changes in the carrying amount of goodwill during the past three years by operating segment are presented in the table below. Goodwill acquired in 2011 relates to discontinued operations, see Note 3. | ||||||||||||||||
Operating segment | ||||||||||||||||
Chemicals | Component | EWI | Total | |||||||||||||
Products | ||||||||||||||||
(In millions) | ||||||||||||||||
Balance at December 31, 2010 | $ | 352.6 | $ | 38.4 | $ | 6.4 | $ | 397.4 | ||||||||
Changes in foreign exchange rates | — | (.4 | ) | — | (.4 | ) | ||||||||||
Goodwill acquired | — | 3.1 | — | 3.1 | ||||||||||||
Balance at December 31, 2011 | 352.6 | 41.1 | 6.4 | 400.1 | ||||||||||||
Sale of discontinued operations | — | (14.3 | ) | — | (14.3 | ) | ||||||||||
Goodwill impairment | — | — | (6.4 | ) | (6.4 | ) | ||||||||||
Changes in foreign exchange rates | — | 0.3 | — | 0.3 | ||||||||||||
Balance at December 31, 2012 and 2013 | $ | 352.6 | $ | 27.1 | $ | — | $ | 379.7 | ||||||||
We have assigned goodwill to each of our reporting units (as that term is defined in ASC Topic 350-20-20, Goodwill) which corresponds to our operating segments. All of our goodwill related to our Chemicals Segment was generated prior to 2011 from our various step acquisitions of NL and Kronos, as goodwill was determined prior to the adoption of the equity transaction framework provisions of ASC Topic 810. Substantially all of the net goodwill related to the Component Products Segment was generated from CompX’s acquisitions of certain business units and the step acquisitions of CompX. The Component Products Segment goodwill is assigned to the two reporting units within that operating segment: security products and furniture components. Prior to December 31, 2012, we also had approximately $6.4 million of goodwill which resulted from NL’s acquisition of EWI Re, Inc., an insurance brokerage subsidiary. EWI brokers certain insurance policies for Contran and certain of its affiliates, including us and our subsidiaries, as well as for certain third parties. See Note 16. | ||||||||||||||||
We test for goodwill impairment at the reporting unit level. In determining the estimated fair value of the reporting units, we use appropriate valuation techniques, such as discounted cash flows and, with respect to our Chemicals Segment, we consider quoted market prices, a Level 1 input, while discounted cash flows are a Level 3 input. If the carrying amount of goodwill exceeds its implied fair value, an impairment charge is recorded. We review goodwill for each of our reporting units for impairment during the third quarter of each year or when circumstances arise that indicate an impairment might be present. If the fair value of an evaluated asset is less than its book value, the asset is written down to fair value. Prior to 2013, we used a quantitative assessment in determining the estimated fair value of our Component Products security products reporting unit, using appropriate valuation techniques such as discounted cash flows. Such discounted cash flows are a Level 3 input as defined by ASC 820-10-35. If the carrying amount of goodwill exceeds its implied fair value, an impairment charge is recorded. In 2013 we adopted the guidance in ASU No. 2011-08 for testing goodwill for impairment by assessing qualitative factors solely as it relates to our security products reporting unit, to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. | ||||||||||||||||
We performed our annual goodwill impairment test in the third quarter of 2013 for each of our reporting units and concluded there was no impairment of the goodwill for those reporting units. Such impairment test as it relates to our security products reporting unit was based on our qualitative assessment, and as a result a quantitative assessment was not required for such reporting unit for 2013. We also tested our goodwill for impairment in connection with our annual goodwill impairment test during the third quarter of 2011 and 2012. No impairment was indicated as part of such 2011, 2012 or 2013 annual review of goodwill. However, as a result of the December 2012 disposition of CompX’s furniture components reporting unit and the December 2012 sale of all common stock of TIMET owned by Contran Corporation and its affiliates (including us and our subsidiaries), a significant portion of EWI’s insurance brokerage business was lost (including TIMET). Consequently, we reevaluated goodwill associated with EWI due to the triggering event caused by significant impact these dispositions had on EWI’s business in December 2012, and concluded that all of our goodwill related to EWI was impaired. Accordingly, we recognized a $6.4 million goodwill impairment in December 2012. In addition, we had goodwill of approximately $14.3 million attributable to the disposed CompX furniture components operations, see Note 3. | ||||||||||||||||
Prior to 2011, we recorded a $10.1 million goodwill impairment in our Component Products Segment. Our consolidated gross goodwill at December 31, 2013 is $396.2 million. | ||||||||||||||||
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Long-Term Debt | ' | |||||||
Note 9—Long-term debt: | ||||||||
December 31, | ||||||||
2012 | 2013 | |||||||
(In millions) | ||||||||
Valhi: | ||||||||
Snake River Sugar Company | $ | 250 | $ | 250 | ||||
Contran credit facility | 157.6 | 206.5 | ||||||
Total Valhi debt | 407.6 | 456.5 | ||||||
Subsidiary debt: | ||||||||
Kronos: | ||||||||
Note payable to Contran | — | 170 | ||||||
Term loan | 384.5 | — | ||||||
Revolving North American credit facility | — | 11.1 | ||||||
Revolving European credit facility | 13.2 | — | ||||||
CompX: | ||||||||
Promissory note payable to TIMET | 18.5 | — | ||||||
WCS: | ||||||||
Financing capital lease | 69.9 | 68.6 | ||||||
6% promissory notes | 7.2 | 2.4 | ||||||
Tremont: | ||||||||
Promissory note payable | — | 19.1 | ||||||
BMI: | ||||||||
Bank note payable | — | 11.2 | ||||||
Landwell: | ||||||||
Note payable to the City of Henderson | — | 3.1 | ||||||
Other | 9.2 | 10.5 | ||||||
Total subsidiary debt | 502.5 | 296 | ||||||
Total debt | 910.1 | 752.5 | ||||||
Less current maturities | 29.6 | 10.7 | ||||||
Total long-term debt | $ | 880.5 | $ | 741.8 | ||||
Valhi —Snake River Sugar Company — Our $250 million in loans from Snake River Sugar Company are collateralized by our interest in The Amalgamated Sugar Company LLC. The loans bear interest at a weighted average fixed interest rate of 9.4% and are due in January 2027. At December 31, 2013, $37.5 million of the loans are recourse to us and the remaining $212.5 million is nonrecourse to us. Under certain conditions, Snake River has the ability to accelerate the maturity of these loans. See Note 4. | ||||||||
Contran credit facility— We also have an unsecured revolving credit facility with Contran which, as amended, provides for borrowings from Contran of up to $275 million. The facility, as amended, bears interest at prime plus 1% (4.25% at December 31, 2013), and is due on demand, but in any event no earlier than December 31, 2015. The facility contains no financial covenants or other financial restrictions. Valhi pays an unused commitment fee quarterly to Contran on the available balance (except during periods during which Contran would be a net borrower from Valhi). In December 2012, we borrowed $157.6 million under this facility and used the proceeds to repay an intercompany note with our Chemicals Segment (which note was eliminated in the preparation of our Consolidated Financial Statements). During 2013 we borrowed an additional $48.9 million and at December 31, 2013 an additional $68.5 million was available for borrowings. | ||||||||
Kronos—Term loan—In February 2013, Kronos voluntarily prepaid an aggregate $290 million principal amount of its term loan. We recognized a non-cash pre-tax interest charge of $6.6 million in the first of 2013 quarter related to this prepayment consisting of the write-off of the unamortized original issue discount costs and deferred financing costs associated with such prepayment. Funds for such prepayment were provided by $100 million of Kronos’ cash on hand as well as borrowings of $190 million under a new loan from Contran as described below. In July 2013 Kronos voluntarily prepaid the remaining $100 million principal amount outstanding under its term loan, using $50 million of its cash on hand as well as borrowings of $50 million under its North American revolving credit facility. We recognized a non-cash pre-tax interest charge of $2.3 million in the third quarter of 2013 related to this prepayment consisting of the write-off of the unamortized original issue discount costs and deferred financing costs associated with such prepayment. The average interest rate on the term loan for the year-to-date period ended July 30, 2013 (the payoff date) was 6.8%. The carrying value of the term loan at December 31, 2012 included unamortized original issue discount of $5.5 million. | ||||||||
In February 2014, Kronos entered into a new $350 million term loan. Kronos used $170 million of the net proceeds of the new term loan to prepay the outstanding principal balance of its note payable to Contran (along with accrued and unpaid interest through the prepayment date), and such note payable was cancelled. The term loan was issued at 99.5% of the principal amount, or an aggregate of $348.25 million. The remaining $172.8 million net proceeds of the term loan are available for our general corporate purposes. The new term loan: | ||||||||
· | bears interest, at our option, at LIBOR (with LIBOR no less than 1.0%) plus 3.75%, or the base rate, as defined in the agreement, plus 2.75%; | |||||||
· | requires quarterly principal repayments of $875,000 commencing in June 2014, other mandatory principal repayments of formula-determined amounts under specified conditions with all remaining principal balance due in February 2020. Voluntary principal prepayments are permitted at any time, provided that a call premium of 1% of the principal amount of such prepayment applies to any voluntary prepayment made on or before February 2015 (there is no prepayment penalty applicable to any voluntary prepayment after February 2015); | |||||||
· | is collateralized by, among other things, a first priority lien on (i) 100% of the common stock of certain of Kronos' U.S. wholly-owned subsidiaries, (ii) 65% of the common stock or other ownership interest of Kronos' Canadian subsidiary (Kronos Canada, Inc.) and certain first-tier European subsidiaries (Kronos Titan GmbH and Kronos Denmark ApS) and (iii) a $395.7 million unsecured promissory note issued by Kronos’ wholly-owned subsidiary, Kronos International, Inc. (KII) to Kronos’; | |||||||
· | is also collateralized by a second priority lien on all of the U.S. assets which collateralize Kronos' new North American revolving facility, as discussed below; | |||||||
· | contains a number of covenants and restrictions which, among other things, restrict Kronos’ ability to incur additional debt, incur liens, pay dividends or merge or consolidate with, or sell or transfer substantially all of Kronos’ assets to, another entity, contains other provisions and restrictive covenants customary in lending transactions of this type (however, there are no ongoing financial maintenance covenants); and | |||||||
· | contains customary default provisions, including a default under any of Kronos’ other indebtedness in excess of $50 million. | |||||||
Note payable to Contran—As discussed above, in February 2013 Kronos entered into a promissory note with Contran. This new loan from Contran contained terms and conditions similar to the terms and conditions of the term loan, except that the loan from Contran was unsecured and contained no financial maintenance covenant. The independent members of Kronos’ board of directors approved the terms and conditions of the loan from Contran. The note required quarterly principal payments of $5.0 million which commenced in March 2013, with any remaining outstanding principal due by June 2018. Voluntary principal prepayments were permitted at any time without penalty. The note bore interest at LIBOR (with LIBOR no less than 1%) plus 5.125%, or the base rate (as defined in the agreement) plus 4.125%. Kronos was required to use the base rate method until such time as both (1) the term loan discussed above had been fully repaid and (2) the European credit facility had terms satisfactory to Contran, at which time Kronos would have had the option to use either the base rate or LIBOR rate methods. In 2013, Kronos borrowed $190 million and subsequently repaid $20 million on the note. The average interest rate on these borrowings as of and for the period from issuance to December 31, 2013 was 7.375%. As discussed above, in February 2014 Kronos used $170 million of the proceeds from its new term loan and prepaid the remaining balance owed to Contran under this note payable, and the note payable to Contran was cancelled. In accordance with GAAP, since Kronos has refinanced the note payable to Contran with a portion of the net proceeds from its new term loan, current maturities of long-term debt at December 31, 2013, as it relates to the note payable to Contran, is based upon the required quarterly principal repayments of the new term loan. | ||||||||
Senior Secured Notes —In March 2011, Kronos redeemed €80 million of its €400 million 6.5% Senior Secured Notes at 102.17% of the principal amount for an aggregate of $115.7 million, including a $2.5 million call premium. During the third and fourth quarters of 2011, Kronos repurchased in open market transactions an aggregate of €40.8 million principal amount of the Senior Notes for an aggregate of €40.6 million (an aggregate of $57.6 million when repurchased). Following such partial redemption and repurchases, €279.2 million principal amount of Senior Notes remained outstanding. We recognized a $3.3 million pre-tax interest charge related to the redemption of €80 million of the 6.5% Senior Secured Notes consisting of the call premium, the write-off of unamortized deferred financing costs and original issue discount associated with the redeemed Senior Notes. We recognized a $.2 million net gain on the €40.8 million principal amount of Senior Notes repurchased in open market transactions. We borrowed under our European revolving credit facility in order to fund the redemption in March 2011, while we used cash on hand to fund the open market repurchases. | ||||||||
Immediately upon the June 2012 issuance of Kronos' prior term loan discussed above, we sent a request to the trustee under the indenture for the Senior Notes, asking that all remaining €279.2 million principal amount outstanding of the Senior Notes be called for redemption on July 20, 2012. We also directed that a portion of the proceeds from the prior term loan be irrevocably sent to the trustee, in an amount sufficient to pay the principal, call premium at 1.01083% of the principal amount and all accrued and unpaid interest due through the July 20, 2012 redemption date. Upon the trustee’s confirmation of receipt of such funds on June 14, 2012, the trustee discharged our obligations under the indenture and released the liens on all collateral thereunder. Because we were released as being the primary obligor under the indenture as of June 14, 2012, the Senior Notes were derecognized as of that date along with the funds irrevocably sent to the trustee to effect the July 20, 2012 redemption. We recognized an aggregate $7.2 million pre-tax charge related to the early extinguishment of debt in the second quarter of 2012, consisting of the call premium paid, interest from the June 14, 2012 indenture discharge date to the July 20, 2012 redemption date and the write-off of unamortized deferred financing costs and original issue discount associated with the redeemed Senior Notes. | ||||||||
Revolving North American credit facility—Also in June 2012, Kronos entered into a $125 million revolving bank credit facility which matures June 2017. Borrowings under the revolving credit facility are available for our general corporate purposes. Available borrowings on this facility are based on formula-determined amounts of eligible trade receivables and inventories, as defined in the agreement, of certain of Kronos’ North American subsidiaries less any outstanding letters of credit up to $15 million issued under the facility (with revolving borrowings by Kronos’ Canadian subsidiary limited to $25 million). Any amounts outstanding under the revolving credit facility bear interest, at Kronos’ option, at LIBOR plus a margin ranging from 1.5% to 2.0% or at the applicable base rate, as defined in the agreement, plus a margin ranging from .5% to 1.0%. The credit facility is collateralized by, among other things, a first priority lien on the borrowers’ trade receivables and inventories. The facility contains a number of covenants and restrictions which, among other things, restricts the borrowers’ ability to incur additional debt, incur liens, pay dividends or merge or consolidate with, or sell or transfer all or substantially all of their assets to, another entity, contains other provisions and restrictive covenants customary in lending transactions of this type and under certain conditions requires the maintenance of a specified financial covenant 1.0 to 1.0. During 2013, Kronos borrowed $162.1 million and repaid an aggregate of $151.0 million under this facility. The average interest rate on these borrowings as of and for the period from borrowing to December 31, 2013 was 2.69% and 3.75%, respectively. At December 31, 2013 approximately $89.1 million was available for borrowing under this revolving facility. | ||||||||
Revolving European credit facility—Kronos’ operating subsidiaries in Germany, Belgium, Norway and Denmark have a €120 million secured revolving bank credit facility that, matures in September 2017. Kronos may denominate borrowings in Euros, Norwegian kroner or U.S. dollars. Outstanding borrowings bear interest at LIBOR plus 1.90%. The facility is collateralized by the accounts receivable and inventories of the borrowers, plus a limited pledge of all of the other assets of the Belgian borrower. The facility contains certain restrictive covenants that, among other things, restrict the ability of the borrowers to incur debt, incur liens, pay dividends or merge or consolidate with, or sell or transfer all or substantially all of the assets to, another entity, and requires the maintenance of certain financial ratios. In addition, the credit facility contains customary cross-default provisions with respect to other debt and obligations of the borrowers, KII and its other subsidiaries. | ||||||||
During 2013, Kronos borrowed €10 million ($12.8 million when borrowed) and repaid the entire outstanding balance of €20 million ($26.5 million when repaid) under its European credit facility. The average interest rate on these borrowings for the year-to-date period ended August 31, 2013 when paid off was 2.02%. At December 31, 2013, there were no outstanding borrowings under this facility. Our European credit facility requires the maintenance of certain financial ratios. At September 30, 2013, and based on the earnings before income tax, interest, depreciation and amortization expense (EBITDA) of the borrowers, we would not have met the financial covenant test if the borrowers had any net debt outstanding. In December 2013, the lenders under Kronos’ European revolving credit facility granted a waiver until June 30, 2014 with respect to the financial test, but Kronos’ ability to borrow any amounts under the facility is subject to the requirement that the borrowers maintain a specified level of EBITDA. At December 31, 2013 Kronos is in compliance with the minimum EBITDA set forth in the waiver, and our borrowing availability was 50% of the credit facility, or €60 million ($82.8 million). Effective January 1, 2014, per the waiver, Kronos’ borrowing availability is 75% of the credit facility, or €90 million ($124.1 million). | ||||||||
Canada—In December 2011, Kronos’ Canadian subsidiary entered into a Cdn. $10.0 million loan agreement with the Bank of Montreal for the limited purpose of issuing letters of credit. The facility renews annually. Letters of credit are collateralized by restricted deposits at the Bank of Montreal ($7.4 million at December 31, 2013). See Note 7. The facility contains certain restrictive covenants which, among other things, restrict the subsidiary from incurring additional indebtedness in excess of Cdn. $35 million. At December 31, 2013, an aggregate of Cdn. $7.9 million letters of credit were outstanding under this facility. | ||||||||
In December 2011, Kronos’ Canadian subsidiary entered into an agreement with an economic development agency of the Province of Quebec, Canada pursuant to which we may borrow up to Cdn. $7.1 million from such agency. Borrowings may only be used to fund capital improvements at its Canadian plant and are limited to a specified percentage of such capital improvements. Borrowings are non-interest bearing, with monthly payments commencing in 2017. The agreement contains certain restrictive covenants, which, among other things, restricts the subsidiary’s ability to sell assets or enter into mergers, and requires Kronos’ subsidiary to maintain certain financial ratios and maintain specified levels of employment. At December 31, 2013 Kronos had Cdn. $1.8 million (USD $1.7 million) outstanding under this agreement. | ||||||||
CompX—Note payable to Timet Finance Management Company—Prior to 2011, CompX purchased and/or cancelled certain shares of its Class A common stock from Timet Finance Management Company (“TFMC”). TFMC is a wholly-owned subsidiary of Titanium Metals Corporation, which was one of our affiliates until December 20, 2012. CompX paid for the shares acquired in the form of a promissory note which, as amended, bore interest at LIBOR plus 1% and provided for quarterly principal repayments of $250,000, with the balance due at maturity in September 2014. The promissory note was prepayable, in whole or in part, at any time at CompX’s option without penalty. In July 2013, CompX prepaid the remaining outstanding principal amount of the note, plus accrued interest, without penalty. The average interest rate on the promissory note payable for the year-to-date period ended July 18, 2013 (the pay-off date) was 1.3%. | ||||||||
WCS—Financing capital lease—In December 2010, WCS closed under a Sale and Purchase Agreement with the County of Andrews, whereby WCS sold certain real and personal property constituting a substantial portion of its property and equipment (“Transferred Assets”) to the County for gross proceeds of $75 million. WCS used the net proceeds received under the Agreement to finance the construction of its Federal and Texas Compact LLRW disposal facilities. As a condition under the Agreement, in December 2010 WCS also concurrently entered into a Lease Agreement (“Lease”) with the County pursuant to which WCS agreed to lease the Transferred Assets back from the County for a period of 25 years. The Lease requires monthly rental payments payable from December 2010 through August 2035, and during the Lease term WCS is responsible for all costs associated with the use, occupancy, possession and operation of the Transferred Assets. Under the terms of the Agreement, WCS was also required to pay all of the County’s costs associated with the transactions, and the proceeds WCS received from the County upon closing under the Sale and Purchase Agreement were net of the County’s cost, which aggregated approximately $2.6 million At the end of the Lease term, title to the Transferred Assets automatically reverts back to WCS without further payment obligation. Prior to the end of the Lease term, WCS may, at its option, terminate the Lease early upon payment of specified amounts to the County, at which time the Transferred Assets would also revert back to WCS. For financial reporting purposes, we have accounted for these transactions in tandem as a financing capital lease, in which we continue to recognize the Transferred Assets on our Consolidated Balance Sheet and our rental payments due under the Lease are accounted for as debt. The capital lease has an effective interest rate of approximately 7.0%. At the inception of the Lease, WCS was required to prepay to the County an amount ($6.2 million) equal to its aggregate lease rentals due to the County in the final year of the Lease, the County will hold the funds as a prepaid deposit. The deposit serves as collateral for WCS’ performance under the Lease and is included in our other noncurrent assets. See Notes 7 and 16. | ||||||||
6% promissory notes —As part of the termination of a contract with a former customer regarding various contractual and legal claims, in April 2010 WCS issued the former customer a $12.0 million long-term promissory note. The note is unsecured, bears interest at a fixed rate of 6% and is payable in five equal annual installments of principal plus accrued interest that began on December 31, 2010. WCS has the right to prepay the note at any time without penalty. A substantial portion of the principal amount of the promissory note issued was offset against deferred revenue that was unearned by WCS. The remaining $1.1 million we recognized in contract termination expense related to this agreement in the first quarter of 2010. At December 31, 2013, the outstanding principal balance of this promissory note was $2.4 million, which is payable in December 2014. | ||||||||
In December 2010, WCS issued a vendor, in final settlement of certain accrued construction retainage owed to such vendor, a $6.6 million non-interest bearing promissory note due on December 31, 2013. WCS made payments of $1.7 million in 2011, $2.4 million in 2012 and $2.5 million in 2013, respectively. The note calls for a final payment of $2.5 million on December 31, 2013. While the note is non-interest bearing, it does provide for a 6% discount rate in the event we elect, at our option, to prepay the promissory note. For financial reporting purposes, we discounted the note to its present value of $5.82 million at issuance based on this 6% discount rate. The amount of accrued construction retainage payable we had previously recognized was approximately $1.4 million greater than such $5.82 million amount, and as part of the settlement we reduced the value of our property and equipment by such excess to reflect the final cost. At December 31, 2013, our obligation to the vendor under this promissory note has been fully paid. | ||||||||
Other. Tremont’s promissory note payable is discussed in Notes 3 and 16. | ||||||||
In January 2013, BMI entered into an $11.9 million bank note payable with Meadows Bank. The proceeds of the note were used to refinance previously outstanding debt obligations. The note requires monthly installments of $.1 million through the maturity date in January 2025. The note bears interest at a variable rate equal to the prime rate with a floor of 3.25% and a ceiling of 9.0%. The note is secured by certain real property and water rights. In addition we are required to maintain cash collateral of $750,000 with the lender, which collateral is classified as noncurrent restricted cash in our December 31, 2013 Consolidated Balance Sheet. At December 31, 2013 the note had an outstanding balance of $11.2 million. The interest rate at December 31, 2013 was 3.25%. | ||||||||
In May 2012, Landwell entered into a $3.9 million promissory note payable with the City of Henderson, Nevada. The note requires semi-annual principal payments of $250,000 payable solely from cash received from certain specified revenue sources with any remaining unpaid balance due in October 2020. The loan bears interest at a 3% fixed rate. Due to the uncertainty in timing of the cash to be received from the specified revenue sources, the outstanding balance of $3.1 million is deemed to be maturing in 2020. | ||||||||
Aggregate maturities of long-term debt at December 31, 2013 | ||||||||
Aggregate maturities of debt at December 31, 2013 are presented in the table below. Such maturities, as they relate to Kronos note payable to Contran, are based upon the required quarterly principal repayments of its new term loan. | ||||||||
Years ending December 31, | Amount | |||||||
(In millions) | ||||||||
Gross amounts due each year: | ||||||||
2014 | $ | 15.2 | ||||||
2015 | 219.2 | |||||||
2016 | 13.1 | |||||||
2017 | 22.4 | |||||||
2018 | 11.3 | |||||||
2019 and thereafter | 535.6 | |||||||
Subtotal | 816.8 | |||||||
Less amounts representing interest on capital leases | 64.3 | |||||||
Total long-term debt | $ | 752.5 | ||||||
After considering the effect of the new term loan Kronos obtained in February 2014 and the application of the net proceeds as discussed above, our aggregate maturities of long-term debt would be: | ||||||||
Years ending December 31, | Amount | |||||||
(In millions) | ||||||||
Gross amounts due each year: | ||||||||
2014 | $ | 15.2 | ||||||
2015 | 219.2 | |||||||
2016 | 13.1 | |||||||
2017 | 22.4 | |||||||
2018 | 11.3 | |||||||
2019 and thereafter | 715.6 | |||||||
Subtotal | 996.8 | |||||||
Less amounts representing interest on capital leases | 64.3 | |||||||
Total long-term debt | $ | 932.5 | ||||||
Accounts_Payable_and_Accrued_L
Accounts Payable and Accrued Liabilities | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounts Payable and Accrued Liabilities | ' | |||||||
Note 10—Accounts payable and accrued liabilities: | ||||||||
December 31, | ||||||||
2012 | 2013 | |||||||
(In millions) | ||||||||
Accounts payable: | ||||||||
Kronos | $ | 161.3 | $ | 124 | ||||
CompX | 2.8 | 1.5 | ||||||
WCS | 0.9 | 0.4 | ||||||
Other | 4.6 | 7.3 | ||||||
Total | $ | 169.6 | $ | 133.2 | ||||
Current accrued liabilities: | ||||||||
Employee benefits | $ | 38.5 | $ | 36.1 | ||||
Deferred income | 5.4 | 36.9 | ||||||
Accrued litigation settlement | — | 35.0 | ||||||
Accrued sales discounts and rebates | 14.9 | 16.7 | ||||||
Environmental costs | 7.6 | 9.1 | ||||||
Reserve for uncertain tax positions | 3 | 3.1 | ||||||
Other | 42.8 | 51.3 | ||||||
Total | $ | 112.2 | $ | 188.2 | ||||
Noncurrent accrued liabilities: | ||||||||
Reserve for uncertain tax positions | $ | 29.4 | $ | 49.8 | ||||
Asset retirement obligations | 23.8 | 25.6 | ||||||
Employee benefits | 11.3 | 12.2 | ||||||
Insurance claims and expenses | 9.7 | 9.5 | ||||||
Deferred payment obligation | — | 8.2 | ||||||
Deferred income | 1 | 1.3 | ||||||
Other | 3.1 | 3.6 | ||||||
Total | $ | 78.3 | $ | 110.2 | ||||
The risks associated with certain of our accrued insurance claims and expenses have been reinsured, and the related IBNR receivables are recognized as noncurrent assets to the extent the related liability is classified as a noncurrent liability. See Note 7. Our reserve for uncertain tax positions is discussed in Note 12. | ||||||||
Other asset retirement obligations include amounts related to the closure and post-closure obligations associated with our Waste Management Segment’s facility in West Texas. Our Compact and Federal LLRW disposal facilities were fully certified for operations in 2012, at which time we increased our estimated asset retirement obligation by approximately $19.1 million. We recognized accretion expense of $.7 million in 2012 and $1.7 million in 2013 on the closure and post-closure obligations. We are required to provide certain financial assurance to the Texas government agencies with respect to the decommissioning obligations related to such facility, as more fully described in Note 17. Certain of our affiliates have provided or assisted us in providing such financial assurance, as discussed in Note 16. | ||||||||
Estimates of the ultimate cost to be incurred to settle our closure and post closure obligation require a number of assumptions, are inherently difficult to develop and the ultimate outcome may differ materially from current estimates. However, we believe our experience in the environmental services business provides a reasonable basis for estimating such costs. As additional information becomes available, cost estimates will be adjusted as necessary. It is possible that technological, regulatory or enforcement developments, the results of studies or other factors could necessitate the recording of additional liabilities which could be material. | ||||||||
The accrued litigation settlement relates to Kronos and is discussed in Note 17. | ||||||||
The deferred payment obligation relates to Tremont and is discussed in Notes 3 and 16. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Employee Benefit Plans | ' | |||||||||||||||
Note 11—Employee benefit plans: | ||||||||||||||||
Defined contribution plans. Certain of our subsidiaries maintain various defined contribution pension plans for our employees worldwide. Defined contribution plan expense attributable to continuing operations approximated $3.4 million in 2011, $3.9 million in 2012 and $4.2 million in 2013. | ||||||||||||||||
Defined benefit plans. Kronos and NL sponsor various defined benefit pension plans worldwide. The benefits under our defined benefit plans are based upon years of service and employee compensation. Our funding policy is to contribute annually the minimum amount required under ERISA (or equivalent foreign) regulations plus additional amounts as we deem appropriate. | ||||||||||||||||
We expect to contribute the equivalent of $27.4 million to all of our defined benefit pension plans during 2014. Benefit payments to plan participants out of plan assets are expected to be the equivalent of: | ||||||||||||||||
2014 | $ | 29.2 million | ||||||||||||||
2015 | 29.2 million | |||||||||||||||
2016 | 29.0 million | |||||||||||||||
2017 | 29.8 million | |||||||||||||||
2018 | 30.4 million | |||||||||||||||
Next 5 years | 168.3 million | |||||||||||||||
The funded status of our U.S. defined benefit pension plans is presented in the table below. | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
2012 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
Change in projected benefit obligations (“PBO”): | ||||||||||||||||
Balance at beginning of the year | $ | 65.3 | $ | 69.1 | ||||||||||||
Interest cost | 2.7 | 2.4 | ||||||||||||||
Actuarial loss (gain) | 4.9 | (5.6 | ) | |||||||||||||
Benefits paid | (3.8 | ) | (3.9 | ) | ||||||||||||
Balance at end of the year | $ | 69.1 | $ | 62 | ||||||||||||
Change in plan assets: | ||||||||||||||||
Fair value at beginning of the year | $ | 45.4 | $ | 50.7 | ||||||||||||
Actual return on plan assets | 6.9 | 7 | ||||||||||||||
Employer contributions | 2.2 | 1.1 | ||||||||||||||
Benefits paid | (3.8 | ) | (3.9 | ) | ||||||||||||
Fair value at end of year | $ | 50.7 | $ | 54.9 | ||||||||||||
Funded status | $ | (18.4 | ) | $ | (7.1 | ) | ||||||||||
Amounts recognized in the Consolidated Balance Sheets: | ||||||||||||||||
Accrued pension costs: | ||||||||||||||||
Current | $ | (.3 | ) | $ | (.3 | ) | ||||||||||
Noncurrent | (18.1 | ) | (6.8 | ) | ||||||||||||
Total | (18.4 | ) | (7.1 | ) | ||||||||||||
Accumulated other comprehensive loss—Actuarial loss | 38.1 | 28.9 | ||||||||||||||
Total | $ | 19.7 | $ | 21.8 | ||||||||||||
Accumulated benefit obligations (“ABO”) | $ | 69.1 | $ | 62 | ||||||||||||
The components of our net periodic defined benefit pension benefit cost (credit) for U.S. plans are presented in the table below. The amounts shown below for the amortization of unrecognized actuarial losses for 2011, 2012 and 2013 were recognized as components of our accumulated other comprehensive income (loss) at December 31, 2010, 2011 and 2012, respectively, net of deferred income taxes and noncontrolling interest. | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||
(In millions) | ||||||||||||||||
Net periodic pension benefit cost (credit) for U.S. plans: | ||||||||||||||||
Interest cost | $ | 2.9 | $ | 2.7 | $ | 2.4 | ||||||||||
Expected return on plan assets | (4.8 | ) | (4.5 | ) | (4.9 | ) | ||||||||||
Amortization of unrecognized net actuarial loss | 1 | 1.6 | 1.6 | |||||||||||||
Total | $ | (.9 | ) | $ | (.2 | ) | $ | (.9 | ) | |||||||
Certain information concerning our U.S. defined benefit pension plans is presented in the table below. | ||||||||||||||||
December 31, | ||||||||||||||||
2012 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
Plans for which the ABO exceeds plan assets: | ||||||||||||||||
Projected benefit obligations | $ | 69.1 | $ | 62 | ||||||||||||
Accumulated benefit obligations | 69.1 | 62 | ||||||||||||||
Fair value of plan assets | 50.7 | 54.9 | ||||||||||||||
The discount rate assumptions used in determining the actuarial present value of the benefit obligation for our U.S. defined benefit pension plans as of December 31, 2012 and 2013 are 3.6% and 4.5%, respectively. The impact of assumed increases in future compensation levels does not have an effect on the benefit obligation as the plans are frozen with regards to compensation. | ||||||||||||||||
The weighted-average rate assumptions used in determining the net periodic pension cost for our U.S. defined benefit pension plans for 2011, 2012 and 2013 are presented in the table below. The impact of assumed increases in future compensation levels does not have an effect on the periodic pension cost as the plans are frozen with regards to compensation. | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
Rate | 2011 | 2012 | 2013 | |||||||||||||
Discount rate | 5.10% | 4.20% | 3.60% | |||||||||||||
Long-term return on plan assets | 10.00% | 10.00% | 10.00% | |||||||||||||
Variances from actuarially assumed rates will result in increases or decreases in accumulated pension obligations, pension expense and funding requirements in future periods. | ||||||||||||||||
The funded status of our foreign defined benefit pension plans is presented in the table below. | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
2012 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
Change in PBO: | ||||||||||||||||
Balance at beginning of the year | $ | 469.7 | $ | 591.5 | ||||||||||||
Service cost | 10.4 | 13.1 | ||||||||||||||
Interest cost | 22.8 | 21.6 | ||||||||||||||
Participants’ contributions | 1.8 | 1.9 | ||||||||||||||
Actuarial loss (gain) | 95.9 | (2.5 | ) | |||||||||||||
Change in currency exchange rates | 15.3 | 4.6 | ||||||||||||||
Benefits paid | (24.4 | ) | (25.3 | ) | ||||||||||||
Balance at end of the year | $ | 591.5 | $ | 604.9 | ||||||||||||
Change in plan assets: | ||||||||||||||||
Fair value at beginning of the year | $ | 343.7 | $ | 409.9 | ||||||||||||
Actual return on plan assets | 49 | 28.5 | ||||||||||||||
Employer contributions | 28.2 | 27.3 | ||||||||||||||
Participants’ contributions | 1.8 | 1.9 | ||||||||||||||
Change in currency exchange rates | 11.6 | (.7 | ) | |||||||||||||
Benefits paid | (24.4 | ) | (25.3 | ) | ||||||||||||
Fair value at end of year | $ | 409.9 | $ | 441.6 | ||||||||||||
Funded status | $ | (181.6 | ) | $ | (163.3 | ) | ||||||||||
Amounts recognized in the Consolidated Balance Sheets: | ||||||||||||||||
Pension asset | $ | 5.1 | $ | 0.6 | ||||||||||||
Accrued pension costs: | ||||||||||||||||
Current | (1.9 | ) | (1.4 | ) | ||||||||||||
Noncurrent | (184.8 | ) | (162.5 | ) | ||||||||||||
Total | (181.6 | ) | (163.3 | ) | ||||||||||||
Accumulated other comprehensive loss: | ||||||||||||||||
Actuarial loss | 190.8 | 160.8 | ||||||||||||||
Prior service cost | 5.4 | 2.8 | ||||||||||||||
Net transition obligations | 1.3 | — | ||||||||||||||
Total | 197.5 | 163.6 | ||||||||||||||
Total | $ | 15.9 | $ | 0.3 | ||||||||||||
ABO | $ | 545.9 | $ | 560 | ||||||||||||
The components of our net periodic defined benefit pension benefit cost for our foreign plans are presented in the table below. The amounts shown below for the amortization of unrecognized prior service cost, net transition obligations and actuarial losses for 2011, 2012 and 2013 were recognized as components of our accumulated other comprehensive income (loss) at December 31, 2010, 2011 and 2012, respectively, net of deferred income taxes and noncontrolling interest. During 2011, certain eligible participants elected to take lump sum distributions upon their retirement, resulting in a nominal settlement charge in 2011. In December 2013, we amended one of our Canadian plans in which participation with respect to hourly workers was closed to new participants in December 2013, resulting in a $7.1 million curtailment charge for recognition of previously unamortized prior service cost and transition obligation and $.2 million for special termination benefits. | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||
(In millions) | ||||||||||||||||
Net periodic pension cost for foreign plans: | ||||||||||||||||
Service cost | $ | 11.2 | $ | 10.4 | $ | 13.1 | ||||||||||
Interest cost | 24.1 | 22.8 | 21.6 | |||||||||||||
Settlement loss | 0.5 | — | — | |||||||||||||
Curtailment loss | — | — | 7.3 | |||||||||||||
Expected return on plan assets | (18.0 | ) | (17.4 | ) | (18.9 | ) | ||||||||||
Amortization of unrecognized: | ||||||||||||||||
Prior service cost | 1.2 | 1.1 | 1.1 | |||||||||||||
Net transition obligations | 0.5 | 0.4 | 0.4 | |||||||||||||
Net actuarial loss | 6.8 | 8 | 12.5 | |||||||||||||
Total | $ | 26.3 | $ | 25.3 | $ | 37.1 | ||||||||||
Certain information concerning our foreign defined benefit pension plans is presented in the table below. | ||||||||||||||||
December 31, | ||||||||||||||||
2012 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
Plans for which the ABO exceeds plan assets: | ||||||||||||||||
Projected benefit obligations | $ | 529.4 | $ | 527 | ||||||||||||
Accumulated benefit obligations | 491.5 | 489.5 | ||||||||||||||
Fair value of plan assets | 342.7 | 364.2 | ||||||||||||||
A summary of our key actuarial assumptions used to determine foreign benefit obligations as of December 31, 2012 and 2013 was: | ||||||||||||||||
December 31, | ||||||||||||||||
Rate | 2012 | 2013 | ||||||||||||||
Discount rate | 3.70% | 3.80% | ||||||||||||||
Increase in future compensation levels | 3.10% | 2.70% | ||||||||||||||
A summary of our key actuarial assumptions used to determine foreign net periodic benefit cost for 2011, 2012 and 2013 are as follows: | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
Rate | 2011 | 2012 | 2013 | |||||||||||||
Discount rate | 5.10% | 4.90% | 3.70% | |||||||||||||
Increase in future compensation levels | 3.00% | 3.10% | 3.10% | |||||||||||||
Long-term return on plan assets | 5.50% | 5.20% | 5.00% | |||||||||||||
Variances from actuarially assumed rates will result in increases or decreases in accumulated pension obligations, pension expense and funding requirements in future periods. | ||||||||||||||||
The amounts shown for all of our defined benefit plans for unrecognized actuarial losses, prior service cost and net transition obligations at December 31, 2012 and 2013 have not been recognized as components of our periodic defined benefit pension cost as of those dates. These amounts will be recognized as components of our periodic defined benefit cost in future years. These amounts, net of deferred income taxes and noncontrolling interest, are recognized in our accumulated other comprehensive income (loss) at December 31, 2012 and 2013. We expect approximately $11.4 million, $.5 million and $.1 million of the unrecognized actuarial losses, prior service cost and net transition obligations, respectively, will be recognized as components of our periodic defined benefit pension cost in 2014. The table below details the changes in other comprehensive income (loss) during 2011, 2012 and 2013. | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||
(In millions) | ||||||||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | ||||||||||||||||
Net actuarial gain (loss) | $ | (30.1 | ) | $ | (66.7 | ) | $ | 19.8 | ||||||||
Plan curtailment | — | — | 7.1 | |||||||||||||
Amortization of unrecognized: | ||||||||||||||||
Prior service cost | 1.2 | 1.1 | 1.1 | |||||||||||||
Net transition obligations | 0.5 | 0.4 | 0.4 | |||||||||||||
Net actuarial gain | 8.2 | 9.7 | 14.2 | |||||||||||||
Total | $ | (20.2 | ) | $ | (55.5 | ) | $ | 42.6 | ||||||||
At December 31, 2012 and 2013, substantially all of the assets attributable to our U.S. plan were invested in the Combined Master Retirement Trust (CMRT), a collective investment trust sponsored by Contran to permit the collective investment by certain master trusts that fund certain employee benefits plans sponsored by Contran and certain of its affiliates. The CMRT’s long-term investment objective is to provide a rate of return exceeding a composite of broad market equity and fixed income indices (including the S&P 500 and certain Russell indices) while utilizing both third-party investment managers as well as investments directed by Mr. Simmons (prior to his death in December 2013). Prior to his death, Mr. Simmons was the sole trustee of the CMRT, and he along with the CMRT’s investment committee, of which Mr. Simmons was a member, actively managed the investments of the CMRT. | ||||||||||||||||
The CMRT trustee and investment committee do not maintain a specific target asset allocation in order to achieve their objectives, but instead they periodically change the asset mix of the CMRT based upon, among other things, advice they receive from third-party advisors and their expectations regarding potential returns for various investment alternatives and what asset mix will generate the greatest overall return. Prior to December 2012, the CMRT had an investment in TIMET common stock; however, in December 2012 the CMRT elected to sell its shares of common stock in conjunction with the tender offer discussed in Note 15. During the history of the CMRT from its inception in 1988 through December 31, 2013, the average annual rate of return has been 14%. For the years ended December 31, 2011, 2012 and 2013, the assumed long-term rate of return for plan assets invested in the CMRT was 10%. In determining the appropriateness of the long-term rate of return assumption, we primarily relied on the historical rates of return achieved by the CMRT, although we considered other factors as well including, among other things, the investment objectives of the CMRT’s managers and their expectation that such historical returns would in the future continue to be achieved over the long-term. | ||||||||||||||||
Following the death of Mr. Simmons in December 2013, the Contran board of directors in January 2014 appointed a financial institution as the new directed trustee of the CMRT, and the Contran board appointed five individuals (all executive officers of Contran) as the new investment committee of the CMRT. The new investment committee intends to reallocate to current and/or new investment managers or various mutual funds the portion of the CMRT assets that had previously been under the direct and active management by Mr. Simmons. Such reallocation will be done prudently over a period of time, given the asset composition of this portion of the portfolio. Concurrent with this change in investment strategy in which there is no longer a portion of the CMRT’s assets under the direct and active management by Mr. Simmons, and considering the long-term asset mix for the assets of the CMRT and the expected long-term rates of return for such asset components as well as advice from Contran’s actuaries, beginning in 2014 the assumed long-term rate of return for plan assets invested in the CMRT will be reduced to 7.5%. | ||||||||||||||||
The CMRT unit value is determined semi-monthly, and the plans have the ability to redeem all or any portion of their investment in the CMRT at any time based on the most recent semi-monthly valuation. However, the plans do not have the right to individual assets held by the CMRT and the CMRT has the sole discretion in determining how to meet any redemption request. For purposes of our plan asset disclosure, we consider the investment in the CMRT as a Level 2 input because (i) the CMRT value is established semi-monthly and the plans have the right to redeem their investment in the CMRT, in part or in whole, at anytime based on the most recent value and (ii) observable inputs from Level 1 or Level 2 were used to value approximately 83% of the assets of the CMRT at each of December 31, 2012 and 2013, as noted below. The aggregate fair value of all of the CMRT assets, including funds of Contran and its other affiliates that also invest in the CMRT, and supplemental asset mix details of the CMRT are as follows: | ||||||||||||||||
December 31, | ||||||||||||||||
2012 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
CMRT asset value | $ | 726.4 | $ | 722.8 | ||||||||||||
CMRT fair value input: | ||||||||||||||||
Level 1 | 82 | % | 79 | % | ||||||||||||
Level 2 | 1 | 4 | ||||||||||||||
Level 3 | 17 | 17 | ||||||||||||||
100 | % | 100 | % | |||||||||||||
CMRT asset mix: | ||||||||||||||||
Domestic equities, principally publicly traded | 43 | % | 53 | % | ||||||||||||
International equities, publicly traded | 2 | — | ||||||||||||||
Fixed income securities, publicly traded | 12 | 35 | ||||||||||||||
Privately managed limited partnerships | 8 | 11 | ||||||||||||||
Other, primarily cash | 35 | 1 | ||||||||||||||
100 | % | 100 | % | |||||||||||||
The relatively large percentage portion of the CMRT invested in cash and other assets at December 31, 2012 is the result of the CMRT’s December 2012 disposition of its shares of TIMET common stock, which generated aggregate proceeds to the CMRT of $254.7 million (or approximately 35% of the CMRT’s total asset value at December 31, 2012), and which funds were invested in a cash equivalent at the end of 2012. Subsequently in January 2013, the CMRT redeployed such proceeds into other investments. | ||||||||||||||||
In determining the expected long-term rate of return on non-U.S. plan asset assumptions, we consider the long-term asset mix (e.g. equity vs. fixed income) for the assets for each of our plans and the expected long-term rates of return for such asset components. In addition, we receive third-party advice about appropriate long-term rates of return. Such assumed asset mixes are summarized below: | ||||||||||||||||
· | In Germany, the composition of our plan assets is established to satisfy the requirements of the German insurance commissioner. Our German pension plan assets represent an investment in a large collective investment fund established and maintained by Bayer AG in which several pension plans, including our German pension plan and Bayer’s pension plans, have invested. Our plan assets represent a very nominal portion of the total collective investment fund maintained by Bayer. These plan assets are a Level 3 input because there is not an active market that approximates the value of our investment in the Bayer investment fund. We determine the fair value of the Bayer plan assets based on periodic reports we receive from the managers of the Bayer plan. These periodic reports are subject to audit by the German pension regulator. | |||||||||||||||
· | In Canada, we currently have a plan asset target allocation of 45% to equity securities, 48% to fixed income securities, 7% to other investments and cash. We expect the long-term rate of return for such investments to average approximately 125 basis points above the applicable equity or fixed income index. The Canadian assets are Level 1 input because they are traded in active markets. | |||||||||||||||
· | In Norway, we currently have a plan asset target allocation of 12% to equity securities, 78% to fixed income securities, 9% to real estate and the remainder primarily to other investments and liquid investments such as money markets. The expected long-term rate of return for such investments is approximately 8%, 4%, 6% and 4%, respectively. The majority of Norwegian plan assets are Level 1 inputs because they are traded in active markets; however approximately 8% of our Norwegian plan assets are invested in real estate and other investments not actively traded and are therefore a Level 3 input. | |||||||||||||||
· | We also have plan assets in Belgium and the United Kingdom. The Belgian plan assets are invested in certain individualized fixed income insurance contracts for the benefit of each plan participant as required by the local regulators and are therefore a Level 3 input. The United Kingdom plan assets consist of marketable securities which are Level 1 inputs because they trade in active markets. | |||||||||||||||
We regularly review our actual asset allocation for each plan, and will periodically rebalance the investments in each plan to more accurately reflect the targeted allocation and/or maximize the overall long-term return when considered appropriate. | ||||||||||||||||
The composition of our December 31, 2012 and 2013 pension plan assets by fair value level is shown in the table below. The amounts shown for plan assets invested in the CMRT include a nominal amount of cash held by our U.S. pension plan which is not part of the plan’s investment in the CMRT. | ||||||||||||||||
Fair Value Measurements at December 31, 2012 | ||||||||||||||||
Total | Quoted | Significant | Significant | |||||||||||||
Prices in | Other | Unobservable | ||||||||||||||
Active | Observable | Inputs | ||||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(In millions) | ||||||||||||||||
Germany | $ | 224.8 | $ | — | $ | — | $ | 224.8 | ||||||||
Canada: | ||||||||||||||||
Local currency equities | 22.4 | 22.4 | — | — | ||||||||||||
Foreign currency equities | 30.3 | 30.3 | — | — | ||||||||||||
Local currency fixed income | 38 | 38 | — | — | ||||||||||||
Global mutual fund | 5.6 | 5.6 | — | — | ||||||||||||
Cash and other | 2.1 | 2.1 | — | — | ||||||||||||
Norway: | ||||||||||||||||
Local currency equities | 3.2 | 3.2 | — | — | ||||||||||||
Foreign currency equities | 5.2 | 5.2 | — | — | ||||||||||||
Local currency fixed income | 40.9 | 40.9 | — | — | ||||||||||||
Foreign currency fixed income | 4.8 | 4.8 | — | — | ||||||||||||
Real estate | 5.5 | — | — | 5.5 | ||||||||||||
Cash and other | 7.6 | 7 | — | 0.6 | ||||||||||||
U.S.—CMRT | 50.7 | — | 50.7 | — | ||||||||||||
Other | 19.5 | 12.3 | — | 7.2 | ||||||||||||
Total | $ | 460.6 | $ | 171.8 | $ | 50.7 | $ | 238.1 | ||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||||
Total | Quoted | Significant | Significant | |||||||||||||
Prices in | Other | Unobservable | ||||||||||||||
Active | Observable | Inputs | ||||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(In millions) | ||||||||||||||||
Germany | $ | 247.5 | $ | — | $ | — | $ | 247.5 | ||||||||
Canada: | ||||||||||||||||
Local currency equities | 24 | 24 | — | — | ||||||||||||
Foreign currency equities | 33 | 33 | — | — | ||||||||||||
Local currency fixed income | 44.7 | 44.7 | — | — | ||||||||||||
Global mutual fund | 6.1 | 6.1 | — | — | ||||||||||||
Cash and other | 0.5 | 0.5 | — | — | ||||||||||||
Norway: | ||||||||||||||||
Local currency equities | 2 | 2 | — | — | ||||||||||||
Foreign currency equities | 5.2 | 5.2 | — | — | ||||||||||||
Local currency fixed income | 35 | 35 | — | — | ||||||||||||
Foreign currency fixed income | 3.6 | 3.6 | — | — | ||||||||||||
Real estate | 4.8 | — | — | 4.8 | ||||||||||||
Cash and other | 13.2 | 12.4 | — | 0.8 | ||||||||||||
U.S.—CMRT | 55 | — | 55 | — | ||||||||||||
Other | 22 | 13.6 | — | 8.4 | ||||||||||||
Total | $ | 496.6 | $ | 180.1 | $ | 55 | $ | 261.5 | ||||||||
A rollforward of the change in fair value of Level 3 assets follows. | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
2012 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
Fair value at beginning of year | $ | 200.6 | $ | 238.1 | ||||||||||||
Gain on assets held at end of year | 33 | 11.2 | ||||||||||||||
Gain on assets sold during the year | 0.1 | |||||||||||||||
Assets purchased | 15.1 | 16.1 | ||||||||||||||
Assets sold | (14.3 | ) | (14.6 | ) | ||||||||||||
Transfers out | (1.0 | ) | ||||||||||||||
Currency exchange rate fluctuations | 4.6 | 10.7 | ||||||||||||||
Fair value at end of year | $ | 238.1 | $ | 261.5 | ||||||||||||
Postretirement benefits other than pensions (OPEB). NL, Kronos and Tremont provide certain health care and life insurance benefits for their eligible retired employees. We have no OPEB plan assets, rather, we fund benefit payments as they are paid. At December 31, 2013, we expect to contribute the equivalent of approximately $1.5 million to all of our OPEB plans during 2014. Benefit payments to OPEB plan participants are expected to be the equivalent of: | ||||||||||||||||
2014 | $ | 1.5 million | ||||||||||||||
2015 | 1.4 million | |||||||||||||||
2016 | 1.3 million | |||||||||||||||
2017 | 1.2 million | |||||||||||||||
2018 | 1.1 million | |||||||||||||||
Next 5 years | 4.9 million | |||||||||||||||
The funded status of our OPEB plans is presented in the table below. | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
2012 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
Actuarial present value of accumulated OPEB obligations: | ||||||||||||||||
Balance at beginning of the year | $ | 22.1 | $ | 22.7 | ||||||||||||
Service cost | 0.3 | 0.3 | ||||||||||||||
Interest cost | 0.8 | 0.7 | ||||||||||||||
Actuarial loss (gain) | 0.4 | (2.2 | ) | |||||||||||||
Plan amendment | — | (4.4 | ) | |||||||||||||
Curtailment | — | (.1 | ) | |||||||||||||
Change in currency exchange rates | 0.3 | (.8 | ) | |||||||||||||
Benefits paid from employer contributions | (1.2 | ) | (1.1 | ) | ||||||||||||
Balance at end of the year | $ | 22.7 | $ | 15.1 | ||||||||||||
Fair value of plan assets | — | — | ||||||||||||||
Funded status | $ | (22.7 | ) | $ | (15.1 | ) | ||||||||||
Accrued OPEB costs recognized in the Consolidated Balance Sheets: | ||||||||||||||||
Current | $ | (1.5 | ) | $ | (1.4 | ) | ||||||||||
Noncurrent | (21.2 | ) | (13.7 | ) | ||||||||||||
Total | (22.7 | ) | (15.1 | ) | ||||||||||||
Accumulated other comprehensive income (loss): | ||||||||||||||||
Net actuarial loss | 3.8 | 1.6 | ||||||||||||||
Prior service credit | (10.5 | ) | (12.6 | ) | ||||||||||||
Total | (6.7 | ) | (11.0 | ) | ||||||||||||
Total | $ | (29.4 | ) | $ | (26.1 | ) | ||||||||||
The amounts shown in the table above for unrecognized actuarial losses and prior service credit at December 31, 2012 and 2013 have not been recognized as components of our periodic OPEB cost as of those dates. These amounts will be recognized as components of our periodic OPEB cost in future years. These amounts, net of deferred income taxes and noncontrolling interest, are now recognized in our accumulated other comprehensive income (loss) at December 31, 2012 and 2013. We expect to recognize approximately $2.1 million of prior service credit as a component of our periodic OPEB cost in 2014. The table below details the changes in other comprehensive income (loss) during 2011, 2012 and 2013. In the fourth quarter of 2013, we amended the benefit formula for most Canadian participants of our plans effective January 1, 2014, resulting in a curtailment gain as of December 31, 2013. Key assumptions including the service cost and benefit duration at December 31, 2013 now reflect these plan revisions to the benefit formula. | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||
(In millions) | ||||||||||||||||
Changes in benefit obligations recognized in other | ||||||||||||||||
comprehensive income (loss): | ||||||||||||||||
Net actuarial gain (loss) arising during the year | $ | (.9 | ) | $ | (.4 | ) | $ | 2.2 | ||||||||
Plan amendments/curtailment | — | — | 4.5 | |||||||||||||
Amortization of unrecognized prior service credit | (2.3 | ) | (1.8 | ) | (2.4 | ) | ||||||||||
Total | $ | (3.2 | ) | $ | (2.2 | ) | $ | 4.3 | ||||||||
The components of our periodic OPEB cost are presented in the table below. The amounts shown below for the amortization of unrecognized actuarial loss and prior service credit for 2011, 2012 and 2013 were recognized as components of our accumulated other comprehensive income (loss) at December 31, 2011, 2012 and 2013, respectively, net of deferred income taxes and noncontrolling interest. | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||
(In millions) | ||||||||||||||||
Net periodic OPEB cost (credit): | ||||||||||||||||
Service cost | $ | 0.2 | $ | 0.3 | $ | 0.3 | ||||||||||
Interest cost | 1 | 0.8 | 0.7 | |||||||||||||
Curtailment gain | — | — | (.6 | ) | ||||||||||||
Amortization of unrecognized prior service credit | (2.3 | ) | (1.8 | ) | (1.8 | ) | ||||||||||
Total | $ | (1.1 | ) | $ | (.7 | ) | $ | (1.4 | ) | |||||||
A summary of our key actuarial assumptions used to determine the net benefit obligations as of December 31, 2012 and 2013 follows: | ||||||||||||||||
December 31, | ||||||||||||||||
2012 | 2013 | |||||||||||||||
Healthcare inflation: | ||||||||||||||||
Initial rate | 7.00% | 7.00% | ||||||||||||||
Ultimate rate | 5.00% | 5.00% | ||||||||||||||
Year of ultimate rate achievement | 2018 | 2020 | ||||||||||||||
Discount rate | 3.47% | 4.00% | ||||||||||||||
Assumed health care cost trend rates affect the amounts we report for health care plans. A one percent change in assumed health care trend rates would not have a material effect on the net periodic OPEB cost for 2013 or on the accumulated OPEB obligations at December 31, 2013. | ||||||||||||||||
The weighted average discount rate used in determining the net periodic OPEB cost for 2013 was 3.47% (the rate was 3.93% in 2012 and 4.65% in 2011). The weighted average rate was determined using the projected benefit obligations as of the beginning of each year. | ||||||||||||||||
Variances from actuarially-assumed rates will result in additional increases or decreases in accumulated OPEB obligations, net periodic OPEB cost and funding requirements in future periods. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Income Taxes | ' | |||||||||||||||
Note 12—Income taxes: | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||
(In millions) | ||||||||||||||||
Pre-tax income (loss) from continuing operations: | ||||||||||||||||
United States | $ | 51.6 | $ | 89 | $ | (70.4 | ) | |||||||||
Non-U.S. subsidiaries | 409.2 | 212.4 | (147.5 | ) | ||||||||||||
Total | $ | 460.8 | $ | 301.4 | $ | (217.9 | ) | |||||||||
Expected tax expense (benefit) at U.S. federal statutory income tax rate of 35% | $ | 161.3 | $ | 105.4 | $ | (76.3 | ) | |||||||||
Non-U.S. tax rates | (17.1 | ) | (11.9 | ) | 4.3 | |||||||||||
Incremental U.S. tax on earnings of non-U.S. and non-tax group companies | 28.8 | 1 | (18.5 | ) | ||||||||||||
U.S. state income taxes, net | 4 | 1.3 | (3.4 | ) | ||||||||||||
Adjustment to the reserve for uncertain tax positions, net | (8.5 | ) | 4.2 | 2.1 | ||||||||||||
Nondeductible expenses | 3.7 | 4.3 | 2.9 | |||||||||||||
Tax rate changes | (.1 | ) | 1.9 | (.2 | ) | |||||||||||
French dividend surtax | — | 0.3 | — | |||||||||||||
Other, net | (2.2 | ) | (1.7 | ) | (1.9 | ) | ||||||||||
Provision for income taxes (benefit) | $ | 169.9 | $ | 104.8 | $ | (91.0 | ) | |||||||||
Components of income tax expense (benefit): | ||||||||||||||||
Currently payable (refundable): | ||||||||||||||||
U.S. federal and state | $ | 8 | $ | 0.9 | $ | 9.1 | ||||||||||
Non-U.S. | 78.7 | 42.6 | (1.2 | ) | ||||||||||||
Total | 86.7 | 43.5 | 7.9 | |||||||||||||
Deferred income taxes (benefit): | ||||||||||||||||
U.S. federal and state | 28.6 | 34.5 | (57.9 | ) | ||||||||||||
Non-U.S. | 54.6 | 26.8 | (41.0 | ) | ||||||||||||
Total | 83.2 | 61.3 | (98.9 | ) | ||||||||||||
Provision for income taxes (benefit) | $ | 169.9 | $ | 104.8 | $ | (91.0 | ) | |||||||||
Comprehensive provision for income taxes (benefit) allocable to: | ||||||||||||||||
Income (loss) from continuing operations | $ | 169.9 | $ | 104.8 | $ | (91.0 | ) | |||||||||
Income from discontinued operations | 5 | 5.4 | — | |||||||||||||
Other comprehensive income (loss): | ||||||||||||||||
Marketable securities | 7.7 | (11.6 | ) | 5.1 | ||||||||||||
Currency translation | — | 4.9 | 5.5 | |||||||||||||
Pension plans | (6.5 | ) | (18.3 | ) | 14.1 | |||||||||||
OPEB plans | (1.0 | ) | (.7 | ) | 1 | |||||||||||
Total | $ | 175.1 | $ | 84.5 | $ | (65.3 | ) | |||||||||
The components of the net deferred tax liability at December 31, 2012 and 2013 are summarized below. | ||||||||||||||||
December 31, | ||||||||||||||||
2012 | 2013 | |||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||
(In millions) | ||||||||||||||||
Tax effect of temporary differences related to: | ||||||||||||||||
Inventories | $ | 3.6 | $ | (10.3 | ) | $ | 4.4 | $ | (2.6 | ) | ||||||
Marketable securities | — | (164.8 | ) | — | (145.8 | ) | ||||||||||
Property and equipment | — | (104.5 | ) | — | (115.8 | ) | ||||||||||
Accrued OPEB costs | 6.9 | — | 4.6 | — | ||||||||||||
Accrued pension costs | 33.3 | — | 21.8 | — | ||||||||||||
Accrued environmental liabilities | 16.9 | — | 40.1 | — | ||||||||||||
Other deductible differences | 26.2 | — | 58.8 | — | ||||||||||||
Other taxable differences | — | (30.3 | ) | — | (35.1 | ) | ||||||||||
Investments in subsidiaries and affiliates | — | (258.3 | ) | — | (280.6 | ) | ||||||||||
Tax on unremitted earnings of non-U.S. subsidiaries | — | (7.6 | ) | — | (2.6 | ) | ||||||||||
Tax loss and tax credit carryforwards | 153 | — | 191.8 | — | ||||||||||||
Valuation allowance | (.2 | ) | — | (.1 | ) | — | ||||||||||
Adjusted gross deferred tax assets (liabilities) | 239.7 | (575.8 | ) | 321.4 | (582.5 | ) | ||||||||||
Netting of items by tax jurisdiction | (109.8 | ) | 109.8 | (149.2 | ) | 149.2 | ||||||||||
129.9 | (466.0 | ) | 172.2 | (433.3 | ) | |||||||||||
Less net current deferred tax asset (liability) | 9.6 | (11.2 | ) | 23 | (2.2 | ) | ||||||||||
Net noncurrent deferred tax asset (liability) | $ | 120.3 | $ | (454.8 | ) | $ | 149.2 | $ | (431.1 | ) | ||||||
In the third quarter of 2012, France enacted certain changes in their income tax laws, including a 3% nondeductible surtax on all dividend distributions on which tax is assessed at the time of the distribution against the company making such distribution. Consequently, our Chemicals Segment’s French subsidiary will be required to pay an additional 3% tax on all future dividend distributions. Our undistributed earnings in France are deemed to be permanently reinvested and such tax will be recognized as part of our income tax expense if and when a dividend is declared and at that time a related tax will be remitted to the French government in accordance with the applicable tax law. During 2012, our French subsidiary distributed an $8.9 million dividend. There have been no dividend distributions from our Chemicals Segment’s French subsidiary during 2013. At December 31, 2013, our French subsidiary has undistributed earnings of approximately $11.0 million that, if distributed, would be subject to the 3% surtax. | ||||||||||||||||
Our income tax provision in 2012 includes a net incremental tax benefit of $3.1 million attributable to our Chemicals Segment. We determined during the third quarter that due to global changes in the business we would not remit certain dividends from our Chemicals Segment’s non-U.S. jurisdictions. As a result, certain current year tax attributes were available for carryback to offset prior year tax expense and our provision for income taxes in the third quarter included an incremental tax benefit of $11.1 million. During the fourth quarter as a result of a change in circumstances related to our sale and the sale by certain of our affiliates of their shares of TIMET common stock, which sale provided an opportunity for us and other members of our consolidated U.S. federal income tax group to elect to claim foreign tax credits, we determined that we could tax-efficiently remit non-cash dividends from our Chemical Segment’s non-U.S. jurisdictions before the end of the year that absent the TIMET sale would not have been considered. Our provision for income taxes in the fourth quarter of 2012 includes an incremental tax related to the non-cash dividend distributions of $8.0 million. | ||||||||||||||||
Our provision for income taxes in 2011 includes $17.2 million for U.S. incremental income taxes on current earnings repatriated from our Chemicals Segment’s German subsidiary, which earnings were used to fund a portion of the repurchases of its Senior Secured Notes discussed in Note 9. In addition, we accrue U.S. incremental income taxes on the earnings of our Canadian subsidiary, which earnings we previously determined are not permanently reinvested. | ||||||||||||||||
Our acquisition of an additional ownership interest in BMI in December 2013, discussed in Note 3, increased our ownership interest in BMI from 32% to 63%. As a result, effective December 31, 2013 we no longer account for our ownership interest in BMI by the equity method of accounting but instead BMI is a consolidated subsidiary. Prior to December 31, 2013, we recognized a deferred income tax liability for the excess of our book basis over our tax basis of our investment in BMI at capital gains rates, because we did not have the ability to control BMI and hence we could assume we would only realize such excess upon a disposition of our ownership interest in BMI. Upon gaining control of BMI in December 2013, we now have the ability to control the means in which such excess would be realized, and accordingly the deferred income tax liability we now recognize for such excess is based on the assumption that we would realize such excess from dividend distributions from BMI (which are taxed at a lower rate, after considering the effect of the dividends received deduction). Our income tax benefit in 2013 includes an aggregate $11.1 million benefit (classified in the table above as part of our incremental U.S. tax on earnings of non-U.S. and non-tax group companies) related to the remeasurement of such deferred income tax liability with respect to our investment in BMI from capital gains rates to dividend received deduction rates, including the deferred income taxes related to (i) the gain from the remeasurement of our existing investment in BMI to estimated fair value and (ii) the bargain purchase gain related to the additional ownership interest in BMI acquired in December 2013. See Note 3. | ||||||||||||||||
Tax authorities are examining certain of our U.S. and non-U.S. tax returns and have or may propose tax deficiencies, including penalties and interest. Because of the inherent uncertainties involved in settlement initiatives and court and tax proceedings, we cannot guarantee that these tax matters will be resolved in our favor, and therefore our potential exposure, if any, is also uncertain. In 2011 and 2012 our Chemicals Segment received notices of re-assessment from the Canadian federal and provincial tax authorities related to the years 2002 through 2004. We object to the re-assessments and believe the position is without merit. Accordingly, we are appealing the re-assessments and in connection with such appeal we were required to post letters of credit aggregating Cdn. $7.9 million (see Note 9). If the full amount of the proposed adjustment were ultimately to be assessed against us the cash tax liability would be approximately $15.7 million. 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. | ||||||||||||||||
The following table shows the changes in the amount of our uncertain tax positions (exclusive of the effect of interest and penalties) during 2011, 2012 and 2013: | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||
(In millions) | ||||||||||||||||
Unrecognized tax benefits: | ||||||||||||||||
Amount beginning of year | $ | 37.4 | $ | 23 | $ | 33.4 | ||||||||||
Net increase: | ||||||||||||||||
Tax positions taken in prior periods | 0.5 | 1.1 | 0.5 | |||||||||||||
Tax positions taken in current period | 6 | 11 | 11.3 | |||||||||||||
Settlements with taxing authorities—cash paid | — | (.1 | ) | — | ||||||||||||
Lapse due to applicable statute of limitations | (20.6 | ) | (1.8 | ) | 3.4 | |||||||||||
Acquisition of BMI and Landwell | — | — | 0.1 | |||||||||||||
Changes in currency exchange rates | (.3 | ) | 0.2 | (.8 | ) | |||||||||||
Amount at end of year | $ | 23 | $ | 33.4 | $ | 47.9 | ||||||||||
If our uncertain tax positions were recognized, a benefit of $23.5 million, $27.9 million and $29.2 million at December 31, 2011, 2012 and 2013, respectively, would affect our effective income tax rate. We currently estimate that our unrecognized tax benefits will decrease by approximately $8.2 million during the next twelve months due to the reversal of certain timing differences and the expiration of certain statutes of limitations. | ||||||||||||||||
We file income tax returns in various U.S. federal, state and local jurisdictions. We also file income tax returns in various foreign jurisdictions, principally in Germany, Canada, Belgium and Norway. Our U.S. income tax returns prior to 2010 are generally considered closed to examination by applicable tax authorities. Our foreign income tax returns are generally considered closed to examination for years prior to: 2004 for Norway; 2008 for Canada; 2009 for Germany; and 2010 for Belgium. | ||||||||||||||||
We accrue interest and penalties on our uncertain tax positions as a component of our provision for income taxes. We accrued $.6 million, $.9 million and $1.3 million of interest and penalties during 2011, 2012 and 2013, respectively, and at December 31, 2012 and 2013 we had $4.1 million and $5.0 million, respectively, accrued for interest and an immaterial amount accrued for penalties for our uncertain tax positions. | ||||||||||||||||
At December 31, 2013, Kronos had the equivalent of $842 million and $127 million of net operating loss carryforwards for German corporate and trade tax purposes, respectively, and it had the equivalent of $102 million of net operating loss carryforwards for Belgian corporate tax purposes. At December 31, 2013, we have concluded that no deferred income tax asset valuation allowance is required to be recognized with respect to such carryforwards, principally because (i) such carryforwards have an indefinite carryforward period, (ii) we have utilized a portion of such carryforwards in Germany during the most recent three-year period and (iii) we currently expect to utilize the remainder of such carryforwards over the long term. However, prior to the complete utilization of these carryforwards, if we generate operating losses in our German and Belgian operations for an extended period of time, it is possible we might conclude the benefit of the carryforwards would no longer meet the more-likely-than-not recognition criteria, at which point we would be required to recognize a valuation allowance against some or all of the then-remaining tax benefit associated with the carryforwards. |
Noncontrolling_Interest_in_Sub
Noncontrolling Interest in Subsidiaries | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Noncontrolling Interest in Subsidiaries | ' | |||||||||||
Note 13—Noncontrolling interest in subsidiaries: | ||||||||||||
December 31, | ||||||||||||
2012 | 2013 | |||||||||||
(In millions) | ||||||||||||
Noncontrolling interest in net assets: | ||||||||||||
Kronos Worldwide | $ | 267 | $ | 241.9 | ||||||||
NL Industries | 77.8 | 74.5 | ||||||||||
CompX International | 13.3 | 13.6 | ||||||||||
BMI | — | 33.7 | ||||||||||
Landwell | — | 27.8 | ||||||||||
Total | $ | 358.1 | $ | 391.5 | ||||||||
Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Noncontrolling interest in net income (loss) of subsidiaries: | ||||||||||||
Kronos Worldwide | $ | 62.6 | $ | 42.6 | $ | (20.3 | ) | |||||
NL Industries | 13.9 | 15.2 | (9.4 | ) | ||||||||
CompX International | 1 | 4.5 | 0.8 | |||||||||
Total | $ | 77.5 | $ | 62.3 | $ | (28.9 | ) | |||||
A portion of the noncontrolling interest in the net income (loss) of subsidiaries in 2011 and 2012 relates to discontinued operations, see Note 3. The changes in our ownership interest in our subsidiaries and the effect on our equity is as follows: | ||||||||||||
Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Net income (loss) attributable to Valhi stockholders | $ | 217.5 | $ | 159.8 | $ | (98.0 | ) | |||||
Transfers from noncontrolling interest: | ||||||||||||
Issuance of subsidiary stock | 0.4 | 0.2 | (.4 | ) | ||||||||
Net income (loss) attributable to Valhi stockholders and change from noncontrolling interest in subsidiaries | $ | 217.9 | $ | 160 | $ | (98.4 | ) | |||||
See Note 3 for information regarding the sale of Kronos common stock in 2012. |
Valhi_Stockholders_Equity
Valhi Stockholder's Equity | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Valhi Stockholder's Equity | ' | |||||||||||
Note 14—Valhi stockholder’s equity: | ||||||||||||
Shares of common stock | ||||||||||||
Issued | Treasury | Outstanding | ||||||||||
(In millions) | ||||||||||||
Balance at December 31, 2010 | 355.2 | (12.2 | ) | 341 | ||||||||
Acquired during 2011 | — | (1.0 | ) | (1.0 | ) | |||||||
Balance at December 31, 2012 and 2013 | 355.2 | (13.2 | ) | 342 | ||||||||
Valhi authorized shares and stock split. In May 2012, we amended our certificate of incorporation to increase the authorized number of shares of our common stock to 500 million. Subsequently in May 2012, we implemented a 3-for-1 split of our common stock in the form of a stock dividend. Other than the disclosure of the increase in the authorized number of shares of our common stock, we have adjusted all share and per-share disclosures for all periods presented in our Consolidated Financial Statements to give effect to the stock split. | ||||||||||||
We have issued a nominal number of shares of Valhi common stock during 2011, 2012 and 2013, principally associated with stock awards issued annually to members of our board of directors. | ||||||||||||
Valhi share repurchases and cancellations. Prior to 2011, our board of directors authorized the repurchase of up to 10.0 million shares of our common stock in open market transactions, including block purchases, or in privately negotiated transactions, which may include transactions with our affiliates or subsidiaries. We may purchase the stock from time to time as market conditions permit. The stock repurchase program does not include specific price targets or timetables and may be suspended at any time. Depending on market conditions, we may terminate the program prior to completion. We will use cash on hand to acquire the shares. Repurchased shares could be retired and cancelled or may be added to our treasury stock and used for employee benefit plans, future acquisitions or other corporate purposes. We did not make any such purchases under the plan in each of 2011, 2012 and 2013. | ||||||||||||
Treasury stock. The treasury stock we reported for financial reporting purposes at December 31, 2011, 2012 and 2013 represents our proportional interest in the shares of our common stock held by NL and Kronos. NL held approximately 14.4 million shares of our common stock at December 31, 2012 and 2013. Prior to 2011, Kronos held approximately 364,000 shares of Valhi common stock. During 2011, Kronos purchased an additional 1.4 million shares in open market transactions for an aggregate purchase price of $12.6 million, and at December 31, 2011, 2012 and 2013 Kronos held an aggregate of 1.7 million shares of our common stock. Under Delaware Corporation Law, 100% (and not the proportionate interest) of a parent company’s shares held by a majority-owned subsidiary of the parent is considered to be treasury stock for voting purposes. As a result, our common shares outstanding for financial reporting purposes differ from those outstanding for legal purposes. | ||||||||||||
Preferred stock. Our outstanding preferred stock consists of 5,000 shares of our Series A Preferred Stock having a liquidation preference of $133,466.75 per share, or an aggregate liquidation preference of $667.3 million. The outstanding shares of Series A Preferred Stock are held by Contran and represent all of the shares of Series A Preferred Stock we are authorized to issue. The preferred stock has a par value of $.01 per share and pays a non-cumulative cash dividend at an annual rate of 6% of the aggregate liquidation preference only when authorized and declared by our board of directors. The shares of Series A Preferred Stock are non-convertible, and the shares do not carry any redemption or call features (either at our option or the option of the holder). A holder of the Series A shares does not have any voting rights, except in limited circumstances, and is not entitled to a preferential dividend right that is senior to our shares of common stock. Upon the liquidation, dissolution or winding up of our affairs, a holder of the Series A shares is entitled to be paid a liquidation preference of $133,466.75 per share, plus an amount (if any) equal to any declared but unpaid dividends, before any distribution of assets is made to holders of our common stock. Through December 31, 2013, we have not declared any dividends on the Series A Preferred Stock since its issuance prior to 2011. | ||||||||||||
Valhi long-term incentive compensation plan. Prior to 2013, we had an incentive stock option plan that provided for the discretionary grant of, among other things since its five-year extension, nonqualified stock options, restricted common stock, stock awards and stock appreciation rights. We had no outstanding stock options at December 31, 2011 or 2012 under this plan. In February 2012, our board of directors voted to replace the existing long-term incentive plan with a new plan that would provide for the award of stock to our board of directors, and up to a maximum of 200,000 shares could be awarded. The new plan was approved at our May 2012 shareholder meeting, at which time the prior long-term incentive compensation plan terminated. We awarded 6,000 shares under this new plan in 2012 and 5,000 shares in 2013, and at December 31, 2013 189,000 shares are available for future award under this new plan. | ||||||||||||
Stock plans of subsidiaries. Kronos, NL and CompX each maintain plans which provide for the award of their common stock to their board of directors. At December 31, 2013, approximately 190,000 shares of common stock were available for future grant under each of such plans. | ||||||||||||
Earnings per share. Basic earnings per share of common stock is based upon the weighted average number of our common shares actually outstanding during each period. Diluted earnings per share of common stock includes the impact of our outstanding dilutive stock options as well as the dilutive effect, if any, of diluted earnings per share reported by Kronos, NL or CompX. The dilutive effect of dilutive earnings per share for Kronos, NL and CompX in 2011, 2012 and 2013 was not significant. | ||||||||||||
Accumulated other comprehensive income (loss). Accumulated other comprehensive income (loss) attributable to Valhi stockholders comprises changes in equity as presented in the table below. | ||||||||||||
Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Accumulated other comprehensive income (loss) (net of tax and noncontrolling interest): | ||||||||||||
Marketable securities: | ||||||||||||
Balance at beginning of year | $ | 14.6 | $ | 6.4 | $ | 2.1 | ||||||
Other comprehensive income (loss): | ||||||||||||
Unrealized gain (loss) arising during the year | (8.2 | ) | 4.1 | — | ||||||||
Less reclassification adjustments for amounts included in realized loss (gain) | — | (8.4 | ) | 0.7 | ||||||||
Balance at end of year | $ | 6.4 | $ | 2.1 | $ | 2.8 | ||||||
Currency translation: | ||||||||||||
Balance at beginning of year | $ | 59.2 | $ | 37.5 | $ | 53.3 | ||||||
Other comprehensive income (loss): | ||||||||||||
Arising during the year | (21.7 | ) | 23 | 5.9 | ||||||||
Less reclassification adjustments for amounts included in gain on disposal | — | (7.2 | ) | — | ||||||||
Balance at end of year | $ | 37.5 | $ | 53.3 | $ | 59.2 | ||||||
Defined benefit pension plans: | ||||||||||||
Balance at beginning of year | $ | (59.8 | ) | $ | (72.6 | ) | $ | (101.5 | ) | |||
Other comprehensive income (loss): | ||||||||||||
Amortization of prior service cost and net losses included in net periodic pension cost | 4 | 6.1 | 8.4 | |||||||||
Net actuarial gain (loss) arising during year | (16.8 | ) | (35.0 | ) | 12.6 | |||||||
Plan curtailment | — | — | 4 | |||||||||
Balance at end of year | $ | (72.6 | ) | $ | (101.5 | ) | $ | (76.5 | ) | |||
OPEB plans: | ||||||||||||
Balance at beginning of year | $ | 7.2 | $ | 5.4 | $ | 4.1 | ||||||
Other comprehensive loss: | ||||||||||||
Amortization of prior service credit and net losses included in net periodic OPEB cost | (.5 | ) | (1.0 | ) | (1.4 | ) | ||||||
Net actuarial gain (loss) arising during year | (1.3 | ) | (.3 | ) | 1.3 | |||||||
Plan amendment | — | — | 2.5 | |||||||||
Balance at end of year | $ | 5.4 | $ | 4.1 | $ | 6.5 | ||||||
Total accumulated other comprehensive income (loss): | ||||||||||||
Balance at beginning of year | $ | 21.2 | $ | (23.3 | ) | $ | (42.0 | ) | ||||
Other comprehensive income (loss) | (44.5 | ) | (18.7 | ) | 34 | |||||||
Balance at end of year | $ | (23.3 | ) | $ | (42.0 | ) | $ | (8.0 | ) | |||
The marketable securities reclassification adjustment in 2012, all of which was reclassified into income from continuing operations, consists principally of the securities transaction gain related to the sale of TIMET common stock discussed in Note 15. The foreign currency translation reclassification adjustment in 2012 relates to CompX’s disposition of its furniture components operations discussed in Note 3. See Note 11 for amounts related to our defined benefit pension plans and OPEB plans. |
Other_Income_Net
Other Income, Net | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Other Income, Net | ' | |||||||||||
Note 15—Other income, net: | ||||||||||||
Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Securities earnings: | ||||||||||||
Dividends and interest | $ | 29.2 | $ | 28.4 | $ | 26.4 | ||||||
Securities transactions, net | (.6 | ) | 21.8 | 0.2 | ||||||||
Total | 28.6 | 50.2 | 26.6 | |||||||||
Equity in earnings | (.5 | ) | (.2 | ) | 0.5 | |||||||
Insurance recoveries | 16.9 | 3.3 | 9.4 | |||||||||
Currency transactions, net | 3 | (1.0 | ) | (3.8 | ) | |||||||
Disposal of property and equipment, net | (.9 | ) | 1.5 | (.5 | ) | |||||||
Gain on bargain purchase and remeasurement of | — | — | 54.6 | |||||||||
our existing investment in acquiree | ||||||||||||
Litigation settlement gains | — | 14.7 | — | |||||||||
Other, net | 1.9 | 2.1 | 1.2 | |||||||||
Total | $ | 49 | $ | 70.6 | $ | 88 | ||||||
Dividends and interest income includes distributions from The Amalgamated Sugar Company LLC of $25.4 million in each of 2011, 2012 and 2013. | ||||||||||||
At December 31, 2011, we, directly and through our ownership in NL and Kronos, held approximately 6.5 million, or 3.7%, of the outstanding common stock of TIMET, and Contran, Mr. Harold Simmons and persons and other entities related to Mr. Simmons (including us) owned a majority of TIMET’s outstanding common stock. In December 2012, we sold all of our shares of TIMET common stock for $107.6 million ($16.50 per share) pursuant to a cash tender offer by a third party, and all of our affiliates also sold their shares of TIMET common stock for the same price. Securities transactions in 2012 consist of a $21.6 million pre-tax gain we recognized on the sale of these TIMET shares. | ||||||||||||
Insurance recoveries relate primarily to amounts NL received from certain of its former insurance carriers, and relate principally to the recovery of prior lead pigment and asbestos litigation defense costs incurred by us. We have agreements with four former insurance carriers pursuant to which the carriers reimburse us for a portion of our future lead pigment litigation defense costs, and one such carrier reimburses us for a portion of our future asbestos litigation defense costs. We are not able to determine how much we will ultimately recover from these carriers for defense costs incurred by us because of certain issues that arise regarding which defense costs qualify for reimbursement. In September 2011 we reached a settlement with one of our former insurance carriers in which they agreed to reimburse NL for a portion of its past lead pigment litigation defense costs. Substantially all of the insurance recoveries we recognized in 2011 relates to this settlement. | ||||||||||||
Disposal of property and equipment, net in 2012 includes a gain of $3.2 million on the sale of certain excess real property owned by NL. | ||||||||||||
While we continue to seek additional insurance recoveries for lead pigment and asbestos litigation matters, we do not know the extent to which we will be successful in obtaining additional reimbursement for either defense costs or indemnity. Any additional insurance recoveries would be recognized when the receipt is probable and the amount is determinable. See Note 17. | ||||||||||||
In 2005, certain real property NL owned that is subject to environmental remediation was taken from us in a condemnation proceeding by a governmental authority in New Jersey. The condemnation proceeds, the adequacy of which we disputed, were placed into escrow with a court in New Jersey. Because the funds were in escrow with the court and were beyond our control, we never gave recognition to such condemnation proceeds for financial reporting purposes. In October 2008 we reached a definitive settlement agreement with such governmental authority and a real estate developer, among others, pursuant to which, among other things, we would receive certain agreed-upon amounts in satisfaction of our claim to just compensation for the taking of our property in the condemnation proceeding at three separate closings, and we would be indemnified against certain environmental liabilities related to such property, in exchange for the release of our equitable lien on specified portions of the property at each closing. At the initial October 2008 closing, we received cash plus a promissory note in the amount of $15.0 million in exchange for the release of our equitable lien on a portion of the property. The $15.0 million promissory note bore interest at LIBOR plus 2.75%, with interest payable monthly and all principal due no later than October 2011. In October 2011, we collected the full $15.0 million due to us under the promissory note issued in connection with the first closing. In April 2009, the second closing was completed, pursuant to which we received an aggregate of $11.8 million in cash. In May 2012, NL reached an agreement with the New Jersey governmental authority and the real estate developer pursuant to which NL received an aggregate of $15.6 million cash for the third and final closing contemplated by the October 2008 settlement agreement associated with certain real property NL formerly owned in New Jersey. Upon NL’s receipt of these cash proceeds, our equitable lien on a portion of such property was released. For financial reporting purposes, we have accounted for the consideration received in each of the first, second and third closings contemplated by the October 2008 settlement agreement by the full accrual method of accounting for real estate sales (since the settlement agreement arose out of a dispute concerning the adequacy of the condemnation proceeds of our former real property in New Jersey). Under this method, we recognized a pre-tax gain of approximately $14.7 million in the second quarter of 2012, based on the excess of the $15.6 million cash received over our carrying value of the property from which our equitable lien was released. Similarly, the cash received in the third closing is reflected as an investing activity in our Consolidated Statement of Cash Flows. | ||||||||||||
Equity in earnings primarily relates to our investment in BMI and Landwell. The gain on bargain purchase and remeasurement of our existing investment in acquiree relates to our acquisition of a controlling interest in BMI and Landwell. See Note 3. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Related Party Transactions | ' | |||||||
Note 16—Related party transactions: | ||||||||
We may be deemed to be controlled by Ms. Lisa Simmons, Ms. Connelly and Ms. Annette Simmons. See Note 1. Corporations that may be deemed to be controlled by or affiliated with such individuals sometimes engage in (a) intercorporate transactions such as guarantees, management and expense sharing arrangements, shared fee arrangements, joint ventures, partnerships, loans, options, advances of funds on open account, and sales, leases and exchanges of assets, including securities issued by both related and unrelated parties and (b) common investment and acquisition strategies, business combinations, reorganizations, recapitalizations, securities repurchases, and purchases and sales (and other acquisitions and dispositions) of subsidiaries, divisions or other business units, which transactions have involved both related and unrelated parties and have included transactions which resulted in the acquisition by one related party of a publicly-held noncontrolling interest in another related party. While no transactions of the type described above are planned or proposed with respect to us other than as set forth in these financial statements, we continuously consider, review and evaluate, and understand that Contran and related entities consider, review and evaluate such transactions. Depending upon the business, tax and other objectives then relevant, it is possible that we might be a party to one or more such transactions in the future. | ||||||||
From time to time, we will have loans and advances outstanding between us and various related parties, including Contran, pursuant to term and demand notes. We generally enter into these loans and advances for cash management purposes. When we loan funds to related parties, we are generally able to earn a higher rate of return on the loan than we would earn if we invested the funds in other instruments. While certain of these loans may be of a lesser credit quality than cash equivalent instruments otherwise available to us, we believe we have evaluated the credit risks involved and appropriately reflect those credit risks in the terms of the applicable loans. When we borrow from related parties, we are generally able to pay a lower rate of interest than we would pay if we borrowed from unrelated parties. | ||||||||
In December 2011, we entered into an unsecured revolving demand promissory note with Contran whereby, as amended, we agreed to loan Contran up to $65 million. Our loan to Contran bore interest at prime plus 3.0% payable quarterly, with all principal due on demand, but in any event no earlier than December 31, 2014. The amount of our outstanding loans to Contran at any time was at our discretion. We had loans outstanding to Contran of $11.2 million at December 31, 2011, and loaned an additional $52.8 million to Contran in 2012. In December 2012, Contran repaid the aggregate $64.0 million of borrowings, at which time the loan facility was terminated. Interest income on our loan to Contran was $36,000 in 2011 and $.8 million in 2012. | ||||||||
We also engaged in related party loans, as discussed in Note 9. Interest expense related to our borrowings from Contran was $.5 million in 2011, $.1 million in 2012 and $19.0 million in 2013. Interest expense related to CompX’s note payable to TFMC (a subsidiary of TIMET, and during the time period in which TIMET was one of our affiliates) was $.5 million in 2011 and $.3 million in 2012. | ||||||||
A subsidiary of Contran has guaranteed (i) WCS’s obligation under its financing capital lease with the County of Andrews, Texas discussed in Note 9, (ii) Tremont’s obligation under its $19.1 million promissory note payable discussed in Notes 3 and 9 and (iii) Tremont’s $8.2 million ($11.1 million face value) deferred payment obligation discussed in Notes 3 and 10. The guaranty obligation would only arise upon our failure to make any required repayments. We currently do not expect such Contran subsidiary will be required to perform under such guarantees for the foreseeable future. | ||||||||
Under the terms of various intercorporate services agreements (“ISAs”) we enter into with Contran, employees of Contran provide us certain management, tax planning, financial and administrative services on a fee basis. Such charges are based upon estimates of the time devoted by the Contran employees to our affairs, and the compensation and other expenses associated with those persons. Because of the large number of companies affiliated with Contran, we believe we benefit from cost savings and economies of scale gained by not having certain management, financial and administrative staffs duplicated at all of our subsidiaries, thus allowing certain Contran employees to provide services to multiple companies but only be compensated by Contran. The net ISA fees charged to us by Contran and approved by the independent members of the applicable board of directors aggregated $27.1 million in 2011, $32.0 million in 2012 and $36.1 million in 2013. These agreements are renewed annually, and we expect to pay a net amount of $33.4 million under the ISAs during 2014. | ||||||||
At December 31, 2013 we had an aggregate 12.0 million shares of our Kronos common stock pledged as collateral for certain debt obligations of Contran. We receive a fee from Contran for pledging these Kronos shares, determined by a formula based on the market value of the shares pledged. During 2013 we received $.8 million from Contran for this pledge. | ||||||||
Tall Pines Insurance Company and EWI RE, Inc. provide for or broker certain insurance or reinsurance policies for Contran and certain of its subsidiaries and affiliates, including us. Tall Pines and EWI are our subsidiaries. Consistent with insurance industry practices, Tall Pines and EWI receive commissions from the insurance and reinsurance underwriters and/or assess fees for the policies that they provide or broker to us. Tall Pines purchases reinsurance for substantially all of the risks it underwrites from third party insurance carriers with an A.M. Best Company rating of generally at least A- (Excellent). We expect these relationships with Tall Pines and EWI will continue in 2014. | ||||||||
Contran and certain of its subsidiaries and affiliates, including us, purchase certain of their insurance policies as a group, with the costs of the jointly-owned policies being apportioned among the participating companies. With respect to some of these policies, it is possible that unusually large losses incurred by one or more insureds during a given policy period could leave the other participating companies without adequate coverage under that policy for the balance of the policy period. As a result, we and Contran have entered into a loss sharing agreement under which any uninsured loss is shared by those entities who have submitted claims under the relevant policy. We believe the benefits in the form of reduced premiums and broader coverage associated with the group coverage for such policies justifies the risk associated with the potential of any uninsured loss. | ||||||||
BMI, among other things, provides utility services (primarily water distribution, maintenance of a common electrical facility and sewage disposal monitoring) to TIMET and other current manufacturers within an industrial complex located in Nevada. The other owners of BMI are generally other former or current manufacturers located within the complex. BMI provides power transmission and sewer services on a cost reimbursement basis, similar to a cooperative, while water delivery is currently provided at the same rates as are charged by BMI to an unrelated third party. Amounts paid by TIMET to BMI for these utility services (during the time period in which TIMET was one of our affiliates) were $1.6 million in 2011 and $1.8 million in 2012. | ||||||||
Additionally, BMI maintains insurance coverage for common area environmental remediation activities within the industrial complex located in Henderson, Nevada with participation from numerous manufacturers within the industrial complex, including TIMET. In December 2011, after approval by TIMET’s independent members of its board of directors, TIMET sold a portion of its excess insurance reserve limit under such insurance policy to BMI for $2.8 million. As consideration for the sale, BMI paid TIMET $1.4 million in cash and issued a $1.4 million promissory note to TIMET that bore interest at 3% per annum with the balance due no later than December 2012. This amount was paid as scheduled in December 2012. The terms of the sale were comparable with then-recent negotiations for a similar transaction between BMI and other unrelated third party manufacturers within the same industrial complex, and BMI completed such transaction with the other unrelated third party in January 2012 on those comparable terms. Additionally, if at any time through December 2013 BMI had purchased excess insurance limits from any of the other manufacturers within the industrial complex at a price per dollar of coverage in excess of the price per dollar of coverage inherent in TIMET’s sale to BMI, BMI would have been obligated to pay TIMET such excess price per dollar of coverage as additional consideration for its sale. No such additional purchases occurred and therefore no additional payments were made to TIMET. | ||||||||
WCS is required to provide certain financial assurances to the Texas government agencies with respect to certain decommissioning obligations related to our facility in West Texas. See Note 17. Such financial assurances may be provided by various means. We and certain of our affiliates have provided or assisted WCS with providing such financial assurance, as specified below: | ||||||||
· | During 2011, 2012 and 2013, a subsidiary of Contran guaranteed certain of WCS’ specified decommissioning obligations as it relates to its RCRA and TSCA licenses and permits, currently estimated at $5.5 million. Such Contran subsidiary was eligible to provide this guarantee because it met certain specified financial tests. The obligations would arise only upon a closure of our West Texas facility and our failure to perform the required decommissioning activities. We do not currently expect that such subsidiary will be required to perform under such guarantee for the foreseeable future. | |||||||
· | During 2011, 2012 and 2013, Contran issued a letter of credit (“LOC”) under its bank credit facility to the state of Texas related to specified decommissioning obligations associated with our byproduct facility. At December 31, 2013, the amount of such LOC was $6.0 million. The LOC would only be drawn down upon the closure of our byproduct facility and our failure to perform the required decommissioning activities. We do not currently expect that the LOC will have to be drawn down for the foreseeable future. We incurred costs related to the LOC of $.1 million in each of 2011, 2012 and 2013. | |||||||
· | During 2011, a subsidiary of Contran pledged certain of its marketable securities as collateral for the benefit of the state of Texas related to specified decommissioning obligations associated with our LLRW disposal facilities, currently estimated at $56.0 million. In return for such pledge, we agreed to pay such Contran subsidiary a collateral pledge fee and such fee was $.1 million in 2011 and $.7 million in 2012. In November 2012, upon the release from the pledge of these marketable securities, Valhi pledged certain of our marketable securities to replace the securities previously pledged. The marketable securities would only be liquidated upon a closure of our West Texas facility and our failure to perform the required decommissioning activities. We do not currently expect that such marketable securities will be required to be liquidated for the foreseeable future. Such marketable securities would be released in November 2016 upon our payment of approximately $119.5 million into a collateral trust, as discussed in Note 17. | |||||||
· | During 2011, we, certain of our subsidiaries, Contran, and certain subsidiaries of Contran guaranteed WCS’ obligations under the surety bond (currently valued at $32.2 million) discussed in Note 17. The obligations would arise upon our failure to make the required quarterly payments into the surety bond trust discussed in Note 17. We do not currently expect that we, certain of our subsidiaries, Contran, and such certain Contran subsidiaries will be required to perform under such guarantee for the foreseeable future. | |||||||
Receivables from and payables to affiliates are summarized in the table below. | ||||||||
December 31, | ||||||||
2012 | 2013 | |||||||
(In millions) | ||||||||
Current receivables from affiliates: | ||||||||
Louisiana Pigment Company, L.P., net | $ | — | $ | 14.2 | ||||
Contran—trade items | 0.3 | 0.5 | ||||||
Total | $ | 0.3 | $ | 14.7 | ||||
Current payables to affiliates: | ||||||||
Louisiana Pigment Company, L.P. | $ | 23.4 | $ | 21.1 | ||||
Contran: | ||||||||
Income taxes, net | 2.6 | 4.3 | ||||||
Trade items | 26.8 | 26.1 | ||||||
Total | $ | 52.8 | $ | 51.5 | ||||
Payable to affiliate included in long-term debt: | ||||||||
Valhi—Contran credit facility | $ | 157.6 | $ | 206.5 | ||||
Kronos— note payable to Contran | — | 170 | ||||||
Total | $ | 157.6 | $ | 376.5 | ||||
Amounts payable to LPC are generally for the purchase of TiO2, while amounts receivable from LPC are generally from the sale of TiO2 feedstock. See Note 7. Purchases of TiO2 from LPC were $144.8 million in 2011, $250.2 million in 2012 and $224.5 million in 2013. Sales of feedstock to LPC were $93.0 million in 2011, $143.7 million in 2012 and $141.1 million in 2013. Substantially all of the Contran trade payables relates to the ISA fees charged to WCS by Contran, which ISA fees had not been paid by WCS to Contran for 2012 and prior years. See Note 9 for more information on the Valhi and Kronos credit facilities with Contran. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Commitments and Contingencies | ' | |||||||||||
Note 17—Commitments and contingencies: | ||||||||||||
Lead pigment litigation—NL | ||||||||||||
NL’s former operations included the manufacture of lead pigments for use in paint and lead-based paint. NL, other former manufacturers of lead pigments for use in paint and lead-based paint (together, the “former pigment manufacturers”), and the Lead Industries Association (LIA), which discontinued business operations in 2002, have been named as defendants in various legal proceedings seeking damages for personal injury, property damage and governmental expenditures allegedly caused by the use of lead-based paints. Certain of these actions have been filed by or on behalf of states, counties, cities or their public housing authorities and school districts, and certain others have been asserted as class actions. These lawsuits seek recovery under a variety of theories, including public and private nuisance, negligent product design, negligent failure to warn, strict liability, breach of warranty, conspiracy/concert of action, aiding and abetting, enterprise liability, market share or risk contribution liability, intentional tort, fraud and misrepresentation, violations of state consumer protection statutes, supplier negligence and similar claims. | ||||||||||||
The plaintiffs in these actions generally seek to impose on the defendants responsibility for lead paint abatement and health concerns associated with the use of lead-based paints, including damages for personal injury, contribution and/or indemnification for medical expenses, medical monitoring expenses and costs for educational programs. To the extent the plaintiffs seek compensatory or punitive damages in these actions, such damages are generally unspecified. In some cases, the damages are unspecified pursuant to the requirements of applicable state law. A number of cases are inactive or have been dismissed or withdrawn. Most of the remaining cases are in various pre-trial stages. Some are on appeal following dismissal or summary judgment rulings in favor of either the defendants or the plaintiffs. | ||||||||||||
We believe that these actions are without merit, and we intend to continue to deny all allegations of wrongdoing and liability and to defend against all actions vigorously. We do not believe it is probable that we have incurred any liability with respect to all of the lead pigment litigation cases to which we are a party, and liability to us that may result, if any, in this regard cannot be reasonably estimated, because: | ||||||||||||
· | NL has never settled any of the market share, risk contribution, intentional tort, fraud, nuisance, supplier negligence, breach of warranty, conspiracy, misrepresentation, aiding and abetting, enterprise liability, or statutory cases, | |||||||||||
· | no final, non-appealable adverse verdicts have ever been entered against NL, and | |||||||||||
· | NL has never ultimately been found liable with respect to any such litigation matters, including over 100 cases over a twenty-year period for which we were previously a party and for which we have been dismissed without any finding of liability. | |||||||||||
Accordingly, we have not accrued any amounts for any of the pending lead pigment and lead-based paint litigation cases. In addition, we have determined that liability to us which may result, if any, cannot be reasonably estimated because there is no prior history of a loss of this nature on which an estimate could be made and there is no substantive information available upon which an estimate could be based. | ||||||||||||
New cases may continue to be filed against us. We cannot assure you that we will not incur liability in the future in respect of any of the pending or possible litigation in view of the inherent uncertainties involved in court and jury rulings. In the future, if new information regarding such matters becomes available to us (such as a final, non-appealable adverse verdict against us or otherwise ultimately being found liable with respect to such matters), at that time we would consider such information in evaluating any remaining cases then-pending against us as to whether it might then have become probable we have incurred liability with respect to these matters, and whether such liability, if any, could have become reasonably estimable. The resolution of any of these cases could result in the recognition of a loss contingency accrual that could have a material adverse impact on our net income for the interim or annual period during which such liability is recognized and a material adverse impact on our consolidated financial condition and liquidity. | ||||||||||||
In one of these lead pigment cases, in April 2000 we were served with a complaint in County of Santa Clara v. Atlantic Richfield Company, et al. (Superior Court of the State of California, County of Santa Clara, Case No. 1-00-CV-788657) brought by a number of California government entities against the former pigment manufacturers, the LIA and certain paint manufacturers. The County of Santa Clara sought to recover compensatory damages for funds the plaintiffs have expended or will in the future expend for medical treatment, educational expenses, abatement or other costs due to exposure to, or potential exposure to, lead paint, disgorgement of profit, and punitive damages. In July 2003, the trial judge granted defendants’ motion to dismiss all remaining claims. Plaintiffs appealed and the intermediate appellate court reinstated public nuisance, negligence, strict liability, and fraud claims in March 2006. A fourth amended complaint was filed in March 2011 on behalf of The People of California by the County Attorneys of Alameda, Ventura, Solano, San Mateo, Los Angeles and Santa Clara, and the City Attorneys of San Francisco, San Diego and Oakland. That complaint alleged that the presence of lead paint created a public nuisance in each of the prosecuting attorney jurisdictions and seeks its abatement. In July and August 2013, the case was tried. In January 2014, the Judge issued a judgment finding us, The Sherwin Williams Company and ConAgra jointly and severally liable for the abatement of lead paint in pre-1980 homes, and ordered the defendants to pay an aggregate $1.15 billion to the State of California to fund such abatement. NL believes that this judgment is inconsistent with California law and is unsupported by the evidence, and we will appeal in the first quarter of 2014. In February 2014, NL filed a motion for a new trial. | ||||||||||||
The Santa Clara case is unique in that this is the second time that an adverse verdict in the lead pigment litigation has been entered against NL (the first adverse verdict against NL was ultimately overturned on appeal). We have concluded that the likelihood of a loss in this case has not reached a standard of “probable” as contemplated by ASC 450, given (i) the substantive, substantial and meritorious grounds on which the adverse verdict in the Santa Clara case will be appealed (assuming our motion for a new trial is not granted), (ii) the uniqueness of the Santa Clara verdict (i.e. no final, non-appealable verdicts have ever been rendered against us, or any of the other former lead pigment manufacturers, based on the public nuisance theory of liability or otherwise), and (ii) the rejection of the public nuisance theory of liability as it relates to lead pigment matters in many other jurisdictions (no jurisdiction in which a plaintiff has asserted a public nuisance theory of liability has ever successfully been upheld). In addition, liability that may result, if any, cannot be reasonably estimated, as NL continues to have no basis on which an estimate of liability could be made, as discussed above. However, as with any legal proceeding, there is no assurance that any of any appeal would be successful, and it is reasonably possible, based on the outcome of the appeals process, that NL may in the future incur some liability resulting in the recognition of a loss contingency accrual that could have a material adverse impact on our results of operations, financial position and liquidity. | ||||||||||||
Environmental matters and litigation | ||||||||||||
Our operations are governed by various environmental laws and regulations. Certain of our businesses are and have been engaged in the handling, manufacture or use of substances or compounds that may be considered toxic or hazardous within the meaning of applicable environmental laws and regulations. As with other companies engaged in similar businesses, certain of our past and current operations and products have the potential to cause environmental or other damage. We have implemented and continue to implement various policies and programs in an effort to minimize these risks. Our policy is to maintain compliance with applicable environmental laws and regulations at all of our plants and to strive to improve environmental performance. From time to time, we may be subject to environmental regulatory enforcement under U.S. and non-U.S. statutes, the resolution of which typically involves the establishment of compliance programs. It is possible that future developments, such as stricter requirements of environmental laws and enforcement policies, could adversely affect our production, handling, use, storage, transportation, sale or disposal of such substances. We believe that all of our facilities are in substantial compliance with applicable environmental laws. | ||||||||||||
Certain properties and facilities used in our former operations, including divested primary and secondary lead smelters and former mining locations, are the subject of civil litigation, administrative proceedings or investigations arising under federal and state environmental laws and common law. Additionally, in connection with past operating practices, we are currently involved as a defendant, potentially responsible party (PRP) or both, pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, as amended by the Superfund Amendments and Reauthorization Act (CERCLA), and similar state laws in various governmental and private actions associated with waste disposal sites, mining locations, and facilities that we or our predecessors, our subsidiaries or their predecessors currently or previously owned, operated or used, certain of which are on the United States Environmental Protection Agency’s (EPA) Superfund National Priorities List or similar state lists. These proceedings seek cleanup costs, damages for personal injury or property damage and/or damages for injury to natural resources. Certain of these proceedings involve claims for substantial amounts. Although we may be jointly and severally liable for these costs, in most cases we are only one of a number of PRPs who may also be jointly and severally liable, and among whom costs may be shared or allocated. In addition, we are also a party to a number of personal injury lawsuits filed in various jurisdictions alleging claims related to environmental conditions alleged to have resulted from our operations. | ||||||||||||
Obligations associated with environmental remediation and related matters are difficult to assess and estimate for numerous reasons including the: | ||||||||||||
· | complexity and differing interpretations of governmental regulations, | |||||||||||
· | number of PRPs and their ability or willingness to fund such allocation of costs, | |||||||||||
· | financial capabilities of the PRPs and the allocation of costs among them, | |||||||||||
· | solvency of other PRPs, | |||||||||||
· | multiplicity of possible solutions, | |||||||||||
· | number of years of investigatory, remedial and monitoring activity required, | |||||||||||
· | uncertainty over the extent, if any, to which our former operations might have contributed to the conditions allegedly giving rise to such personal injury, property damage, natural resource and related claims and | |||||||||||
· | number of years between former operations and notice of claims and lack of information and documents about the former operations. | |||||||||||
In addition, the imposition of more stringent standards or requirements under environmental laws or regulations, new developments or changes regarding site cleanup costs or the allocation of costs among PRPs, solvency of other PRPs, the results of future testing and analysis undertaken with respect to certain sites or a determination that we are potentially responsible for the release of hazardous substances at other sites, could cause our expenditures to exceed our current estimates. We cannot assure you that actual costs will not exceed accrued amounts or the upper end of the range for sites for which estimates have been made, and we cannot assure you that costs will not be incurred for sites where no estimates presently can be made. Further, additional environmental and related matters may arise in the future. If we were to incur any future liability, this could have a material adverse effect on our consolidated financial statements, results of operations and liquidity. | ||||||||||||
We record liabilities related to environmental remediation and related matters when estimated future expenditures are probable and reasonably estimable. We adjust such accruals as further information becomes available to us or as circumstances change. Unless the amounts and timing of such estimated future expenditures are fixed and reasonably determinable, we generally do not discount estimated future expenditures to their present value due to the uncertainty of the timing of the payout. We recognize recoveries of costs from other parties, if any, as assets when their receipt is deemed probable. At December 31, 2012 and 2013, we have not recognized any receivables for recoveries. | ||||||||||||
We do not know and cannot estimate the exact time frame over which we will make payments for our accrued environmental and related costs. The timing of payments depends upon a number of factors, including but not limited to the timing of the actual remediation process; which in turn depends on factors outside of our control. At each balance sheet date, we estimate the amount of our accrued environmental and related costs which we expect to pay within the next twelve months, and we classify this estimate as a current liability. We classify the remaining accrued environmental costs as a noncurrent liability. | ||||||||||||
The table below presents a summary of the activity in our accrued environmental costs during the past three years. The amount charged to expense is included in corporate expense on our Consolidated Statements of Operations. | ||||||||||||
Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Balance at the beginning of the year | $ | 42.3 | $ | 43.2 | $ | 50.2 | ||||||
Additions charged to expense, net | 11.3 | 15 | 69 | |||||||||
Acquired | — | — | 7 | |||||||||
Payments, net | (10.4 | ) | (8.1 | ) | (3.4 | ) | ||||||
Changes in currency exchange rates | — | 0.1 | (.1 | ) | ||||||||
Balance at the end of the year | $ | 43.2 | $ | 50.2 | $ | 122.7 | ||||||
Amounts recognized in our Consolidated Balance Sheet at the end of the year: | ||||||||||||
Current liabilities | $ | 8.6 | $ | 7.6 | $ | 9.1 | ||||||
Noncurrent liabilities | 34.6 | 42.6 | 113.6 | |||||||||
Total | $ | 43.2 | $ | 50.2 | $ | 122.7 | ||||||
NL—Of the $11.3 million net additions charged to expense in 2011, $5.6 million relates to certain payments which have been discounted to their present value because the timing and amounts of such payments are fixed and determinable. Such payments aggregate $6.0 million on an undiscounted basis ($2.0 million that was paid in 2012, $1.0 million that was paid in 2013 and $1.0 million due in each of 2014 through 2016) and were discounted to present value using a 3.0% discount rate. The aggregate $.4 million discount is being charged to expense using the interest method in 2011 through 2016, and the amount of such discount charged to expense in any individual year is not material. | ||||||||||||
On a quarterly basis, NL evaluates the potential range of its liability for environmental remediation and related costs at sites where it has been named as a PRP or defendant. At December 31, 2013, NL had accrued approximately $114 million related to approximately 45 sites associated with remediation and related matters that it believes are at the present time and/or in their current phase reasonably estimable. The upper end of the range of reasonably possible costs to NL for remediation and related matters for which we believe it is possible to estimate costs is approximately $154 million, including the amount currently accrued. | ||||||||||||
NL believes that it is not possible to estimate the range of costs for certain sites. At December 31, 2013, there were approximately 5 sites for which NL is not currently able to estimate a range of costs. For these sites, generally the investigation is in the early stages, and NL is unable to determine whether or not NL actually had any association with the site, the nature of its responsibility, if any, for the contamination at the site and the extent of contamination at and cost to remediate the site. The timing and availability of information on these sites is dependent on events outside of our control, such as when the party alleging liability provides information to us. At certain of these previously inactive sites, NL has received general and special notices of liability from the EPA and/or state agencies alleging that NL, sometimes with other PRPs, are liable for past and future costs of remediating environmental contamination allegedly caused by former operations. These notifications may assert that NL, along with any other alleged PRPs, are liable for past and/or future clean-up costs. As further information becomes available to us for any of these sites which would allow us to estimate a range of costs, we would at that time adjust our accruals. Any such adjustment could result in the recognition of an accrual that would have a material effect on our consolidated financial statements, results of operations and liquidity. | ||||||||||||
Other—We have also accrued approximately $9.0 million at December 31, 2013 for other environmental cleanup matters. This accrual is near the upper end of the range of our estimate of reasonably possible costs for such matters. | ||||||||||||
Insurance coverage claims | ||||||||||||
We are involved in certain legal proceedings with a number of our former insurance carriers regarding the nature and extent of the carriers’ obligations to us under insurance policies with respect to certain lead pigment and asbestos lawsuits. The issue of whether insurance coverage for defense costs or indemnity or both will be found to exist for our lead pigment and asbestos litigation depends upon a variety of factors and we cannot assure you that such insurance coverage will be available. | ||||||||||||
We have agreements with four former insurance carriers pursuant to which the carriers reimburse us for a portion of our future lead pigment litigation defense costs, and one such carrier reimburses us for a portion of our future asbestos litigation defense costs. We are not able to determine how much we will ultimately recover from these carriers for defense costs incurred by us because of certain issues that arise regarding which defense costs qualify for reimbursement. While we continue to seek additional insurance recoveries, we do not know if we will be successful in obtaining reimbursement for either defense costs or indemnity. Accordingly, we recognize insurance recoveries in income only when receipt of the recovery is probable and we are able to reasonably estimate the amount of the recovery. | ||||||||||||
In addition to insurance recoveries discussed above, in September 2011 we reached a settlement with one of our insurance carriers in which they agreed to reimburse us for a portion of our past lead pigment litigation defense costs. Substantially all of the $16.9 million in insurance recoveries we recognized in 2011 relate to this settlement. | ||||||||||||
In October 2005 we were served with a complaint in OneBeacon American Insurance Company v. NL Industries, Inc., et al. (Supreme Court of the State of New York, County of New York, Index No. 603429-05). The plaintiff, a former insurance carrier, sought a declaratory judgment of its obligations to us under insurance policies issued to us by the plaintiff’s predecessor with respect to certain lead pigment lawsuits filed against us. In March 2006, the trial court denied our motion to dismiss. In April 2006, we filed a notice of appeal of the trial court’s ruling, and in September 2007, the Supreme Court - Appellate Division (First Department) reversed and ordered that the OneBeacon complaint be dismissed. The Appellate Division did not dismiss the counterclaims and cross claims. | ||||||||||||
In February 2006, we were served with a complaint in Certain Underwriters at Lloyds, London v. Millennium Holdings LLC et al. (Supreme Court of the State of New York, County of New York, Index No. 06/60026). The plaintiff, a former insurance carrier of ours, sought a declaratory judgment of its obligations to us under insurance policies issued to us by the plaintiff with respect to certain lead pigment lawsuits. This case is currently stayed. | ||||||||||||
Prior to 2011, we reached partial settlements with the plaintiffs in the two cases discussed above, pursuant to which the two former insurance carriers paid us an aggregate of approximately $7.2 million in settlement of certain counter-claims related to past lead pigment and asbestos defense costs. In connection with these partial settlements, we agreed to dismiss the case captioned NL Industries, Inc. v. OneBeacon America Insurance Company, et al. (District Court for Dallas County, Texas, Case No. 05-11347), and in January 2009 we filed a notice of non-suit without prejudice in that matter. In March 2010, we filed a complaint in NL Industries, Inc. v. OneBeacon America Insurance Company (Supreme Court of the State of New York, County of New York, Index No. 108881-2009), to address the remaining claims from the New York state cases. In December 2013, we entered into a settlement agreement with OneBeacon, pursuant to which they agreed to reimburse us for certain contested past lead pigment litigation costs in the amount of $3.9 million. | ||||||||||||
In January 2014, we were served with a complaint in Certain Underwriters at Lloyds, London, et al v. NL Industries, Inc. (Supreme Court of the State of New York, County of New York, Index No. 14/650103). The plaintiff, a former insurance carrier of ours, is seeking a declaratory judgment of its obligations to us under insurance policies issued to us by the plaintiff with respect to certain lead pigment lawsuits. The case is now proceeding in the trial court. We believe the action is without merit and intend to defend NL’s rights in this action vigorously. | ||||||||||||
In February 2014, we were served with a complaint in Zurich American Insurance Company, as successor-in-interest to Zurich Insurance Company, U.S. Branch vs. NL Industries, Inc, and The People of the State of California, acting by and through county Counsels of Santa Clara, Alameda, Los Angeles, Monterey, San Mateo, Solano and Ventura Counties and the city Attorneys of Oakland, San Diego, and San Francisco, et al (Superior Court of California, County of Santa Clara, Case No.: 1-14-CV-259924). The Plaintiff, a former insurance carrier of ours, is seeking an Order of Deposit Under C.C.P § 572. This case is now proceeding in the trial court. We intend to defend NL’s coverage rights in this action vigorously. | ||||||||||||
Other litigation | ||||||||||||
NL—NL has been named as a defendant in various lawsuits in several jurisdictions, alleging personal injuries as a result of occupational exposure primarily to products manufactured by NL’s former operations containing asbestos, silica and/or mixed dust. In addition, some plaintiffs allege exposure to asbestos from working in various facilities previously owned and/or operated by NL. There are 1,130 of these types of cases pending, involving a total of approximately 1,643 plaintiffs. In addition, the claims of approximately 8,298 plaintiffs have been administratively dismissed or placed on the inactive docket in Ohio, Indiana and Texas state courts. We do not expect these claims will be re-opened unless the plaintiffs meet the courts’ medical criteria for asbestos-related claims. We have not accrued any amounts for this litigation because of the uncertainty of liability and inability to reasonably estimate the liability, if any. To date, we have not been adjudicated liable in any of these matters. Based on information available to us, including: | ||||||||||||
· | facts concerning historical operations, | |||||||||||
· | the rate of new claims, | |||||||||||
· | the number of claims from which we have been dismissed and | |||||||||||
· | our prior experience in the defense of these matters. | |||||||||||
We believe that the range of reasonably possible outcomes of these matters will be consistent with our historical costs (which are not material). Furthermore, we do not expect any reasonably possible outcome would involve amounts material to our consolidated financial position, results of operations or liquidity. We have sought and will continue to vigorously seek, dismissal and/or a finding of no liability from each claim. In addition, from time to time, we have received notices regarding asbestos or silica claims purporting to be brought against former subsidiaries, including notices provided to insurers with which we have entered into settlements extinguishing certain insurance policies. These insurers may seek indemnification from us. | ||||||||||||
Kronos—In March 2010, Kronos was served with two complaints which were subsequently consolidated as Haley Paint et al. v. E.I. Du Pont de Nemours and Company, et al. (United States District Court, for the District of Maryland, Case No. 1:10-cv-00318-RDB). A third plaintiff intervened into the case in July 2011. The defendants included Kronos, E.I. Du Pont de Nemours & Company, Huntsman International LLC, Millennium Inorganic Chemicals, Inc. and the National Titanium Dioxide Company Limited (d/b/a Cristal). Plaintiffs sought to represent a class consisting of all persons and entities that purchased titanium dioxide in the United States directly from one or more of the defendants on or after March 1, 2002. The complaint alleged that the defendants conspired and combined to fix, raise, maintain, and stabilize the price at which titanium dioxide was sold in the United States and engaged in other anticompetitive conduct. In May 2010, defendants filed a motion to dismiss, which plaintiffs opposed. In March 2011, the court denied the motion to dismiss. In February 2012, the plaintiffs submitted their motion for class certification, which defendants opposed. In August 2012, the court granted the plaintiffs’ motion for class certification and trial was set for September 2013. On September 10, 2013, and following the agreement by the three other defendants in the third quarter of 2013 to enter into settlement agreements with the class plaintiffs, Kronos also entered into a settlement agreement with the class plaintiffs, without admitting any fault or wrongdoing, and agreed to pay an aggregate of $35 million (payable in two installments at specified times, expected to occur by mid-2014). Following the service of the Class Action Fairness Notice and the Order of Final Approval from the court, we, and the other defendants, will be dismissed with prejudice from this matter. Selling, general and administrative expenses in the third quarter of 2013 includes a $35 million charge related to this settlement. See also Note 10. | ||||||||||||
In March 2013, Kronos was served with the complaint, Los Gatos Mercantile, Inc. d/b/a Los Gatos Ace Hardware, et al v. E.I. Du Pont de Nemours and Company, et al. (United States District Court, for the Northern District of California, Case No. 3:13-cv-01180-SI). The defendants include Kronos, E.I. Du Pont de Nemours & Company, Huntsman International LLC and Millennium Inorganic Chemicals, Inc. Plaintiffs seek to represent a class consisting of indirect purchasers of titanium dioxide in the states of Arizona, Arkansas, California, the District of Columbia, Florida, Hawaii, Illinois, Iowa, Kansas, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Oregon, South Carolina, South Dakota, Tennessee, Utah, Vermont, West Virginia and Wisconsin that indirectly purchased titanium dioxide from one or more of the defendants on or after March 1, 2002. The complaint alleges that the defendants conspired and combined to fix, raise, maintain, and stabilize the price at which titanium dioxide was sold in the United States and engaged in other anticompetitive conduct. This matter had been stayed by the court pending a resolution in the Haley Paint Matter. The case is now proceeding in the trial court. We believe the action is without merit, will deny all allegations of wrongdoing and liability and intend to defend against the action vigorously. | ||||||||||||
In November 2013, we were served with the complaint, The Valspar Corporation, et al v. E.I. Du Pont de Nemours and Company, et al. (United States District Court, for the District of Minnesota, Case No. 1:13-cv-03214-RHK-L1B). The defendants include us, E.I. Du Pont de Nemours & Company, Huntsman International LLC, Millennium Inorganic Chemicals, Inc. and the National Titanium Dioxide Company Limited (d/b/a Cristal). Plaintiff opted out of the settlement in the original lawsuit, Haley Paint et al. v. E.I. Du Pont de Nemours and Company, et al. (United States District Court, for the District of Maryland, Case No. 1:10-cv-00318-RDB) and filed its own lawsuit against the Defendants. The complaint alleged that the defendants conspired and combined to fix, raise, maintain, and stabilize the price at which titanium dioxide was sold in the United States and engaged in other anticompetitive conduct. The case is now proceeding in the trial court. We believe the action is without merit, will deny all allegations of wrongdoing and liability and intend to defend against the action vigorously. | ||||||||||||
WCS— Previously, the Lone Star Chapter of the Sierra Club has filed various lawsuits in Texas District Court against the Texas Commission on Environmental Quality (“TCEQ”). WCS has intervened in these lawsuits. These lawsuits challenge our by-product and low-level radioactive waste disposal licenses. Subsequently, the District Court upheld the TCEQ’s determination that the Sierra Club lacked standing to pursue a challenge to the by-product disposal license. The Sierra Club appealed. WCS’ by-product disposal license remains in effect pending resolution of the appeal. | ||||||||||||
In May 2012, the same District Court subsequently held that TCEQ erred in denying Sierra Club’s request for an administrative contested case hearing regarding the low-level radioactive waste disposal license, and ordered the TCEQ to undertake a contested case hearing in which the Sierra Club could participate. Shortly thereafter, both the TCEQ and WCS appealed the District Court’s order with respect to the low-level radioactive waste disposal license, and the District Court’s order is suspended. WCS’ low-level radioactive waste disposal license remains in effect, pending resolution of this appeal. | ||||||||||||
On the same day that WCS filed its appeal with regard to the District Court’s order with respect to its low-level radioactive waste disposal license, the Sierra Club filed another lawsuit in the same Texas District Court, challenging a routine TCEQ action relating to administration of the low-level radioactive waste disposal license. On March 7, 2014, the Third District of the Texas Court of Appeals in Austin ruled that the courts do not have jurisdiction over Sierra Club’s lawsuit challenging the routine TCEQ action. The Court of Appeals dismissed Sierra Club’s lawsuit. The deadline for Sierra Club to petition for relief from the Texas Supreme Court has not yet passed. Additionally, the Sierra Club filed a petition for writ of injunction with the same Court of Appeals in Austin; that petition was denied. | ||||||||||||
WCS believes all of these actions by the Sierra Club are without merit and that the Sierra Club has no proper standing to challenge any of its licenses and permits. This position has been reinforced by two recent Texas Supreme Court rulings narrowing the basis for a challenge to environmental permits. WCS intends to continue to defend against any and all such actions vigorously, and to continue to operate its West Texas facilities in accordance with the terms of its licenses and permits. | ||||||||||||
Other—In addition to the litigation described above, we and our affiliates are involved in various other environmental, contractual, product liability, patent (or intellectual property), employment and other claims and disputes incidental to our present and former businesses. In certain cases, we have insurance coverage for these items, although we do not expect any additional material insurance coverage for our environmental claims. | ||||||||||||
We currently believe that the disposition of all of these various other claims and disputes, 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. | ||||||||||||
Other matters | ||||||||||||
Concentrations of credit risk—Sales of TiO2 accounted for approximately 92% of our Chemicals Segment’s sales in 2011, and 90% in each of 2012 and 2013. The remaining sales result from the mining and sale of ilmenite ore (a raw material used in the sulfate pigment production process), and the manufacture and sale of iron-based water treatment chemicals and certain titanium chemical products (derived from co-products of the TiO2 production processes). TiO2 is generally sold to the paint, plastics and paper industries. Such markets are generally considered “quality-of-life” markets whose demand for TiO2 is influenced by the relative economic well-being of the various geographic regions. Our Chemicals Segment sells TiO2 to over 4,000 customers, with the top ten customers approximating 30% of net sales in 2011, 34% in each of 2012 and 2013. We did not have sales to a single customer comprising 10% or more of our net sales in 2011. In each of 2012 and 2013, one customer, Behr Process Corporation, accounted for approximately 10% of our Chemicals Segment’s net sales. The table below shows the approximate percentage of our TiO2 sales by volume for our significant markets, Europe and North America, for the last three years. | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Europe | 53% | 47% | 49% | |||||||||
North America | 32% | 35% | 33% | |||||||||
Our Component Products Segment’s products are sold primarily in North America to original equipment manufacturers. The ten largest customers related to our Component Product’s continuing operations accounted for approximately 39% of sales in 2011, 38% in 2012, and 42% in 2013. Harley Davidson, a customer of the Component Products segment, accounted for approximately 13% of that segment’s total sales in 2011 and 12% in each of 2012, and 2013. San Mateo Postal Data, accounted for 13% of the Component Products Segment’s total sales in 2013. | ||||||||||||
Our Waste Management Segment’s revenues consists of storage and disposal fees at our facility located in Andrews County, Texas. During 2013 we had sales to three customers that exceed 10% of our 2013 net sales: Tennessee Valley Authority (30%), Studsvik, Inc. (15%) and the Department of Energy (10%). | ||||||||||||
Long-term contracts—Our Chemicals Segment has long-term supply contracts that provide for certain of our TiO2 feedstock requirements through 2016. The agreements require Kronos to purchase certain minimum quantities of feedstock with minimum purchase commitments aggregating approximately $820 million over the term of the contracts in years subsequent to December 31, 2013. In addition, our Chemicals Segment has other long-term supply and service contracts that provide for various raw materials and services. These agreements require Kronos to purchase certain minimum quantities or services with minimum purchase commitments aggregating approximately $123 million at December 31, 2013. | ||||||||||||
Operating leases—Our Chemicals Segment’s principal German operating subsidiary leases the land under its Leverkusen TiO2 production facility pursuant to a lease with Bayer AG that expires in 2050. The Leverkusen facility itself, which our Chemicals Segment owns and which represents approximately one-third of its current TiO2 production capacity, is located within Bayer’s extensive manufacturing complex. Kronos periodically establishes the amount of rent for the land lease associated with the Leverkusen facility by agreement with Bayer for periods of at least two years at a time. The lease agreement provides for no formula, index or other mechanism to determine changes in the rent for such land lease; rather, any change in the rent is subject solely to periodic negotiation between Bayer and Kronos. We recognize any change in the rent based on such negotiations as part of lease expense starting from the time such change is agreed upon by both parties, as any such change in the rent is deemed “contingent rentals” under GAAP. Under the terms of a master supply and services agreements a majority-owned subsidiary of Bayer provides raw materials, including chlorine, auxiliary and operating materials, utilities and services necessary to operate the Leverkusen facility. This agreement, as amended, expires in 2017 and will automatically renew for successive three year terms until terminated by either party upon one year’s prior notice. | ||||||||||||
We also lease various other manufacturing facilities and equipment. Some of the leases contain purchase and/or various term renewal options at fair market and fair rental values, respectively. In most cases we expect that, in the normal course of business, such leases will be renewed or replaced by other leases. Net rent expense attributable to continuing operations approximated $13.3 million in 2011, $16.3 million in 2012 and $15.8 million in 2013. At December 31, 2013, future minimum payments under non-cancellable operating leases having an initial or remaining term of more than one year were as follows: | ||||||||||||
Years ending December 31, | Amount | |||||||||||
(In millions) | ||||||||||||
2014 | $ | 12.5 | ||||||||||
2015 | 10.4 | |||||||||||
2016 | 5.1 | |||||||||||
2017 | 3.6 | |||||||||||
2018 | 3.2 | |||||||||||
2019 and thereafter | 23.4 | |||||||||||
Total(1) | $ | 58.2 | ||||||||||
-1 | Approximately $18 million of the $58.2 million aggregate future minimum rental commitments at December 31, 2013 relates to Kronos’ Leverkusen facility lease discussed above. The minimum commitment amounts for such lease included in the table above for each year through the 2050 expiration of the lease are based upon the current annual rental rate as of December 31, 2013. As discussed above, any change in the rent is based solely on negotiations between Bayer and Kronos, and any such change in the rent is deemed “contingent rentals” under GAAP which is excluded from the future minimum lease payments disclosed above. | |||||||||||
Income taxes—Prior to 2011, NL made certain pro-rata distributions to its stockholders in the form of shares of Kronos common stock. All of NL’s distributions of Kronos common stock were taxable to NL and NL recognized a taxable gain equal to the difference between the fair market value of the Kronos shares distributed on the various dates of distribution and NL’s adjusted tax basis in the shares at the dates of distribution. NL transferred shares of Kronos common stock to us in satisfaction of the tax liability related to NL’s gain on the transfer or distribution of these shares of Kronos common stock and the tax liability generated from the use of Kronos shares to settle the tax liability. To date, we have not paid the liability to Contran because Contran has not paid the liability to the applicable tax authority. The income tax liability will become payable to Contran, and by Contran to the applicable tax authority, when the shares of Kronos transferred or distributed by NL to us are sold or otherwise transferred outside the Contran Tax Group or in the event of certain restructuring transactions involving us. We have recognized deferred income taxes for our investment in Kronos common stock. | ||||||||||||
We and Contran have agreed to a policy providing for the allocation of tax liabilities and tax payments as described in Note 1. Under applicable law, we, as well as every other member of the Contran Tax Group, are each jointly and severally liable for the aggregate federal income tax liability of Contran and the other companies included in the Contran Tax Group for all periods in which we are included in the Contran Tax Group. Contran has agreed, however, to indemnify us for any liability for income taxes of the Contran Tax Group in excess of our tax liability computed in accordance with the tax allocation policy. | ||||||||||||
Financial assurance associated with Waste Management Segment—Our Waste Management Segment is required to provide certain financial assurances to the Texas government agencies with respect to the decommissioning obligations related to the its facility in West Texas. We and certain of our affiliates have provided or assisted us in providing such financial assurances, see Note 16. Other matters related to the financial assurance associated with our LLRW disposal facilities are discussed below: | ||||||||||||
· | A portion of WCS’ required financial assurance associated with its LLRW disposal facilities is in the form of a surety bond issued by a third-party insurance company on its behalf for the benefit of the state of Texas. The value of the surety bond at issuance was $20 million in 2011 and was increased to $23.4 in December 2012 and increased to $32.2 million in December 2013. As part of such surety bond, WCS is required to make quarterly cash payments into a collateral trust of 2.5% of the total value of the bonds which commenced in the fourth quarter of 2011. At December 31, 2013, we had made payments totaling $4.9 million, which is reflected as part of our noncurrent restricted cash on our Consolidated Balance Sheet. | |||||||||||
· | During November of each of 2012 through 2016, WCS is required to make cash payments into another collateral trust or increase the $32.2 million surety bond discussed above for the benefit of the state of Texas in an aggregate of $12.35 million, plus an amount for the estimated increase in the required financial assurance amount associated with normal inflationary cost increases. In addition, in November 2016 WCS is required to make an additional cash payment of $119.5 million into this collateral trust. At that point, the collateral trust would be fully funded, and we would expect that we would only be required to make additional cash payments into the collateral trust to cover normal inflationary cost increases in order for the trust to remain fully funded. Until such time as we make the $119.5 million cash payment in November 2016, the aggregate market value of the marketable securities pledged on WCS’ behalf by Valhi (see Note 16) is required to be at least a specified minimum amount. In the event such aggregate market value were to become less than such specified minimum amount, then Valhi would either pledge additional marketable securities sufficient to cover any market-value deficiency, or we would be required to make a cash payment into the collateral trust to cover such market-value deficiency. During the fourth quarters of 2012 and 2013, we paid $18.0 million into the collateral trust, which is reflected as part of our noncurrent restricted cash on our Consolidated Balance Sheet. |
Financial_Instruments
Financial Instruments | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Financial Instruments | ' | |||||||||||||||
Note 18—Financial instruments: | ||||||||||||||||
The following table summarizes the valuation of our short-term investments and financial instruments by the ASC Topic 820 categories as of December 31, 2012 and 2013: | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
Total | Quoted | Significant | Significant | |||||||||||||
Prices in | Other | Unobservable | ||||||||||||||
Active | Observable | Inputs | ||||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(In millions) | ||||||||||||||||
Asset (liability) | ||||||||||||||||
December 31, 2012: | ||||||||||||||||
Marketable securities: | ||||||||||||||||
Current | $ | 0.9 | $ | — | $ | 0.9 | $ | — | ||||||||
Noncurrent | 256.8 | 3.5 | 3.3 | 250 | ||||||||||||
Currency forward contracts | 1.8 | 1.8 | — | — | ||||||||||||
December 31, 2013: | ||||||||||||||||
Marketable securities: | ||||||||||||||||
Current | $ | 3.8 | $ | 2.4 | $ | 1.4 | $ | — | ||||||||
Noncurrent | 253.3 | 1.4 | 1.9 | 250 | ||||||||||||
Currency forward contracts | (1.0 | ) | (1.0 | ) | — | — | ||||||||||
See Note 4 for information on how we determine the fair value of our marketable securities. | ||||||||||||||||
Certain of our sales generated by Chemicals Segment’s non-U.S. operations are denominated in U.S. dollars. Our Chemicals Segment periodically uses currency forward contracts to manage a very nominal portion of currency exchange rate risk associated with trade receivables denominated in a currency other than the holder’s functional currency or similar exchange rate risk associated with future sales. We have not entered into these contracts for trading or speculative purposes in the past, nor do we currently anticipate entering into such contracts for trading or speculative purposes in the future. Derivatives used to hedge forecasted transactions and specific cash flows associated with financial assets and liabilities denominated in currencies other than the U.S. dollar and which meet the criteria for hedge accounting are designated as cash flow hedges. Consequently, the effective portion of gains and losses is deferred as a component of accumulated other comprehensive income (loss) and is recognized in earnings at the time the hedged item affects earnings. Contracts that do not meet the criteria for hedge accounting are marked-to-market at each balance sheet date with any resulting gain or loss recognized in income currently as part of net currency transactions. The fair value of the currency forward contracts is determined using Level 1 inputs based on the currency spot forward rates quoted by banks or currency dealers. | ||||||||||||||||
At December 31, 2013, Kronos had currency forward contracts to exchange: | ||||||||||||||||
· | an aggregate of $36.0 million for an equivalent value of Canadian dollars at an exchange rate ranging from Cdn. $1.02 to Cdn. $1.06 per U.S. dollar. These contracts with Wells Fargo Bank, N.A. mature from January 2014 through December 2014 at a rate of $3.0 million per month, subject to early redemption provisions at our option; | |||||||||||||||
· | an aggregate $20.0 million for an equivalent value of Norwegian kroner at exchange rates ranging from kroner 6.12 to kroner 6.25 per U.S. dollar. These contracts with DnB Nor Bank ASA mature at a rate of $5.0 million per month in certain months from January 2014 through October 2014; and | |||||||||||||||
· | an aggregate €20.0 million for an equivalent value of Norwegian kroner at exchange rates ranging from kroner 8.04 to kroner 8.41 per euro. These contracts with DnB Nor Bank ASA mature at a rate of €5.0 million per month in certain months from January 2014 through October 2014. | |||||||||||||||
The estimated fair value of such currency forward contracts at December 31, 2013 was a $1.0 million net liability of which $.2 million is recognized as part of accounts and other receivables and $1.2 million is recognized as part of accounts payable and accrued liabilities in our Consolidated Balance Sheet with a corresponding $1.0 million currency transaction loss in our Consolidated Statement of Operations, (2012—$1.8 million net asset, recognized as part of accounts and other receivables with a corresponding $1.8 million currency transaction gain in our Consolidated Statement of Operations). We did not use hedge accounting for any of our contracts to the extent we held such contracts during 2011, 2012 and 2013. | ||||||||||||||||
The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure as of December 31, 2012 and 2013: | ||||||||||||||||
December 31, | ||||||||||||||||
2012 | 2013 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
amount | value | amount | value | |||||||||||||
(In millions) | ||||||||||||||||
Cash, cash equivalents and restricted cash equivalents | $ | 395.9 | $ | 395.9 | $ | 186.8 | $ | 186.8 | ||||||||
Deferred payment obligation | — | — | 8.2 | 8.2 | ||||||||||||
Long-term debt (excluding capitalized leases): | ||||||||||||||||
Kronos note payable to Contran | $ | — | $ | — | $ | 170 | $ | 170 | ||||||||
Kronos term loan | 384.5 | 396.8 | — | — | ||||||||||||
Snake River Sugar Company fixed rate loans | 250 | 250 | 250 | 250 | ||||||||||||
WCS fixed rate debt | 77.1 | 77.1 | 72.4 | 72.4 | ||||||||||||
Valhi Contran credit facility | 157.6 | 157.6 | 206.5 | 206.5 | ||||||||||||
Kronos variable rate bank credit facilities | 13.2 | 13.2 | 11.1 | 11.1 | ||||||||||||
CompX variable rate promissory note | 18.5 | 18.5 | — | — | ||||||||||||
Tremont promissory note | — | — | 19.1 | 19.1 | ||||||||||||
BMI bank note payable | — | — | 11.2 | 11.2 | ||||||||||||
Landwell note payable to the City of Henderson | — | — | 3.1 | 3.1 | ||||||||||||
Noncontrolling interest in: | ||||||||||||||||
Kronos common stock | $ | 267 | $ | 442.6 | $ | 241.9 | $ | 431.6 | ||||||||
NL common stock | 77.8 | 94.8 | 74.5 | 92.6 | ||||||||||||
CompX common stock | 13.3 | 23.4 | 13.6 | 23.1 | ||||||||||||
Valhi stockholders’ equity | $ | 733.6 | $ | 4,238.90 | $ | 601.3 | $ | 5,961.70 | ||||||||
The fair value of our publicly-traded marketable securities, noncontrolling interest in NL, Kronos and CompX and our common stockholders’ equity are all based upon quoted market prices, Level 1 inputs at each balance sheet date. At December 31, 2012, the estimated market price of Kronos’ term loan was $1,017.5 per $1,000 principal amount. The fair value of the 6 term loan was based on quoted market prices; however, these quoted market prices represent Level 2 inputs because the markets in which the term loan trade were not active. The fair value of our fixed-rate nonrecourse loans from Snake River Sugar Company is based upon the $250 million redemption price of our investment in the Amalgamated Sugar Company LLC, which collateralizes the nonrecourse loans, (this is a Level 3 input). Fair values of variable interest rate notes receivable and debt and other fixed-rate debt are deemed to approximate book value. Due to their near-term maturities, the carrying amounts of accounts receivable and accounts payable are considered equivalent to fair value. See Notes 4 and 9. |
Quarterly_Results_of_Operation
Quarterly Results of Operations (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Results of Operations (Unaudited) | ' | |||||||||||||||
Note 19—Quarterly results of operations (unaudited): | ||||||||||||||||
Quarter ended | ||||||||||||||||
March 31 | June 30 | Sept. 30 | Dec. 31 | |||||||||||||
(In millions, except per share data) | ||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||
Net sales | $ | 582.8 | $ | 568.4 | $ | 508.7 | $ | 427.4 | ||||||||
Gross margin | 260.4 | 162.1 | 97.4 | 55.3 | ||||||||||||
Operating income (loss) | 203.3 | 103.2 | 41.1 | (2.2 | ) | |||||||||||
Net income | $ | 119.6 | $ | 61.5 | $ | 31.8 | $ | 9.2 | ||||||||
Amounts attributable to Valhi stockholders: | ||||||||||||||||
Income (loss) from continuing operations | $ | 88.5 | $ | 43.7 | $ | 21.8 | $ | (12.6 | ) | |||||||
Income from discontinued operations | 0.5 | 0.6 | 1.2 | 16.1 | ||||||||||||
Net income(1) | $ | 89 | $ | 44.3 | $ | 23 | $ | 3.5 | ||||||||
Earnings per share: | ||||||||||||||||
Income (loss) from continuing operations | $ | 0.26 | $ | 0.13 | $ | 0.06 | $ | (.04 | ) | |||||||
Income from discontinued operations | — | — | 0.01 | 0.05 | ||||||||||||
Net income | $ | 0.26 | $ | 0.13 | $ | 0.07 | $ | 0.01 | ||||||||
Year ended December 31, 2013 | ||||||||||||||||
Net sales | $ | 499.2 | $ | 516.1 | $ | 448.2 | $ | 400.1 | ||||||||
Gross margin | 12.9 | 17.2 | 48.6 | 55.5 | ||||||||||||
Operating income (loss) | (45.2 | ) | (46.8 | ) | (42.5 | ) | (4.2 | ) | ||||||||
Net income (loss) | $ | (48.2 | ) | $ | (48.6 | ) | $ | (40.9 | ) | $ | 10.8 | |||||
Amounts attributable to Valhi stockholders: | ||||||||||||||||
Net income (loss)(2) | $ | (39.8 | ) | $ | (39.7 | ) | $ | (34.2 | ) | $ | 15.7 | |||||
Earnings per share: | ||||||||||||||||
Net income (loss) | $ | (.12 | ) | $ | (.12 | ) | $ | (.10 | ) | $ | 0.05 | |||||
-1 | We recognized the following amounts during 2012: | |||||||||||||||
· | a $3.7 million after-tax and noncontrolling interest loss on the prepayment of debt in the second quarter, see Note 9; | |||||||||||||||
— | a $7.8 million after-tax and noncontrolling interest real-estate related litigation settlement gain in the second quarter, see Note 15; | |||||||||||||||
· | a $13.2 million after-tax and noncontrolling interest securities transaction gain in the fourth quarter, see Note 4; | |||||||||||||||
— | a $5.3 million net of noncontrolling interest charge in the fourth quarter for a goodwill impairment, see Note 8; | |||||||||||||||
— | an $.8 million after-tax and noncontrolling interest charge in the primarily in the fourth quarter as a result of an asset held for sale write-down, see Note 7; | |||||||||||||||
· | an $1.7 million after-tax and noncontrolling interest gain on sale of excess property in the fourth quarter, see Note 15; and | |||||||||||||||
— | an incremental tax charge of $6.1 million (net of noncontrolling interest) in the fourth quarter as a result of a change in circumstances related to our sale of TIMET common stock, which sale provided an opportunity for us to elect to claim foreign tax credits, we determined that we could tax-efficiently remit non-cash dividends from our non-U.S. jurisdictions before the end of the year that absent the TIMET sale would not have been considered. Our provision for income taxes recognized in the fourth quarter also includes a $2.1 million expense (net of noncontrolling interest) related to an increase in our reserve for uncertain tax positions. In addition, an aggregate $2.7 million (net of noncontrolling interest) of such fourth quarter 2012 provision for income taxes is a correction of amounts that should have been recognized in the third quarter of 2011 and is not material to any current or prior periods. | |||||||||||||||
-2 | We recognized the following amounts during 2013: | |||||||||||||||
o | a $3.4 million after-tax and noncontrolling interest charge related to the February voluntary prepayment of an aggregate $290 million principal amount of Kronos’ term loan in the first quarter; see Note 9; | |||||||||||||||
o | a $17.9 million after-tax and noncontrolling interest litigation settlement charge included in operating income in the third quarter; see Note 17; | |||||||||||||||
o | a $1.2 million after-tax and noncontrolling interest charge related to the July voluntary prepayment of the remaining $100 million principal amount of Kronos’ term loan in the third quarter; see Note 9; | |||||||||||||||
o | pre-tax charges aggregating approximately $28 million consisting of unabsorbed fixed production and other costs as a result of Kronos’ Canadian plant lockout in the third and fourth quarters of approximately $19 million, $7 million as a result of the pension curtailment charge discussed in Note 11, and $2 million for severance and other back-to-work expenses associated with reaching terms of the new Canadian collective bargaining agreement. Approximately $7 million of the costs (primarily related to unabsorbed fixed production costs) related to the third quarter of 2013 with the remaining costs recognized in the fourth quarter of 2013; | |||||||||||||||
o | aggregate insurance recoveries of $4.7 million, after-tax and noncontrolling interest in the fourth quarter; and | |||||||||||||||
o | a $46.6 million after-tax gain on bargain purchase and remeasurement of existing investment related to our acquisition of a controlling interest in BMI and Landwell; see Notes 3 and 12. | |||||||||||||||
The sum of the quarterly per share amounts may not equal the annual per share amounts due to relative changes in the weighted average number of shares used in the per share computations. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Nature of Our Business | ' | ||
Nature of our business. Valhi, Inc. (NYSE: VHI) is primarily a holding company. We operate through our wholly-owned and majority-owned subsidiaries, including NL Industries, Inc., Kronos Worldwide, Inc., CompX International Inc., Tremont LLC and Waste Control Specialists LLC (“WCS”). Kronos (NYSE: KRO), NL (NYSE: NL), and CompX (NYSE MKT: CIX) each file periodic reports with the Securities and Exchange Commission (“SEC”). | |||
Organization | ' | ||
Organization. We are majority owned by Contran Corporation and one of its subsidiaries, which own approximately 94% of our outstanding common stock at December 31, 2013. Substantially all of Contran’s outstanding voting stock is held by family trusts established for the benefit of Lisa K. Simmons and Serena Simmons Connelly, daughters of Harold C. Simmons, and their children (for which Ms. Lisa Simmons and Ms. Connelly are co-trustees) or is held directly by Ms. Lisa Simmons and Ms. Connelly or persons or entities related to them, including their step-mother Annette C. Simmons, the widow of Mr. Simmons. Prior to his death in December 2013, Mr. Simmons served as sole trustee of the family trusts. Under a voting agreement entered into in February 2014 by all of the voting stockholders of Contran, the size of the board of directors of Contran was fixed at five members, each of Ms. Lisa Simmons, Ms. Connelly and Ms. Annette Simmons have the right to designate one of the five members of the Contran board and the other two members of the Contran board must consist of members of Contran management. Ms. Lisa Simmons, Ms. Connelly, and Ms. Annette Simmons each serve as members of the Contran board. The voting agreement expires in February 2017 (unless Ms. Lisa Simmons, Ms. Connelly and Ms. Annette Simmons otherwise mutually agree), and the ability of Ms. Lisa Simmons, Ms. Connelly, and Ms. Annette Simmons to each designate one member of the Contran board is dependent upon each of their continued beneficial ownership of at least 5% of the combined voting stock of Contran. Consequently, Ms. Lisa Simmons, Ms. Connelly and Ms. Annette Simmons may be deemed to control Contran and us. | |||
Unless otherwise indicated, references in this report to “we,” “us” or “our” refer to Valhi, Inc and its subsidiaries, taken as a whole. | |||
Management's Estimates | ' | ||
Management’s estimates. The preparation of our Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”), requires us to make estimates and assumptions that affect the reported amounts of our assets and liabilities and disclosures of contingent assets and liabilities at each balance sheet date and the reported amounts of our revenues and expenses during each reporting period. Actual results may differ significantly from previously-estimated amounts under different assumptions or conditions. | |||
Principles of Consolidation | ' | ||
Principles of consolidation. Our consolidated financial statements include the financial position, results of operations and cash flows of Valhi and our majority-owned and wholly-owned subsidiaries. We eliminate all material intercompany accounts and balances. Changes in ownership are accounted for as equity transactions with no gain or loss recognized on the transaction unless there is a change in control. | |||
Foreign Currency Translation | ' | ||
Foreign currency translation. The financial statements of our foreign subsidiaries are translated to U.S. dollars. The functional currency of our foreign subsidiaries is generally the local currency of the country. Accordingly, we translate the assets and liabilities at year-end rates of exchange, while we translate their revenues and expenses at average exchange rates prevailing during the year. We accumulate the resulting translation adjustments in stockholders’ equity as part of accumulated other comprehensive income (loss), net of related deferred income taxes and noncontrolling interest. We recognize currency transaction gains and losses in income. | |||
Derivatives and Hedging Activities | ' | ||
Derivatives and hedging activities. We recognize derivatives as either an asset or liability measured at fair value in accordance with Accounting Standards Codification (“ASC”) Topic 815, Derivatives and Hedging. We recognize the effect of changes in the fair value of derivatives either in net income or other comprehensive income (loss), depending on the intended use of the derivative. See Note 18. | |||
Cash and Cash Equivalents | ' | ||
Cash and cash equivalents. We classify bank time deposits and government and commercial notes and bills with original maturities of three months or less as cash equivalents. | |||
Restricted Cash, Cash Equivalents and Marketable Debt Securities | ' | ||
Restricted cash, cash equivalents and marketable debt securities. We classify cash, cash equivalents and marketable debt securities that have been segregated or are otherwise limited in use as restricted. To the extent the restricted amount relates to a recognized liability, we classify the restricted amount as current or noncurrent according to the corresponding liability. To the extent the restricted amount does not relate to a recognized liability, we classify restricted cash as a current asset and we classify the restricted debt security as either a current or noncurrent asset depending upon the maturity date of the security. | |||
Marketable Securities and Securities Transactions | ' | ||
Marketable securities and securities transactions. We carry marketable debt and equity securities at fair value. ASC Topic 820, Fair Value Measurements and Disclosures, establishes a consistent framework for measuring fair value and (with certain exceptions) this framework is generally applied to all financial statements items required to be measured at fair value. The standard requires fair value measurements to be classified and disclosed in one of the following three categories: | |||
· | Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | ||
· | Level 2—Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the assets or liability; and | ||
· | Level 3—Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable. | ||
We recognize unrealized and realized gains and losses on trading securities in income. We accumulate unrealized gains and losses on available-for-sale securities as part of accumulated other comprehensive income (loss), net of related deferred income taxes and noncontrolling interest. Realized gains and losses are based on specific identification of the securities sold. See Notes 4, 11 and 19. | |||
Accounts Receivable | ' | ||
Accounts receivable. We provide an allowance for doubtful accounts for known and estimated potential losses arising from our sales to customers based on a periodic review of these accounts. | |||
Inventories and Cost of Sales | ' | ||
Inventories and cost of sales. We state inventories at the lower of cost or market, net of allowance for obsolete and slow-moving inventories. We generally base inventory costs for all inventory categories on average cost that approximates the first-in, first-out method. Inventories include the costs for raw materials, the cost to manufacture the raw materials into finished goods and overhead. Depending on the inventory’s stage of completion, our manufacturing costs can include the costs of packing and finishing, utilities, maintenance, depreciation, shipping and handling, and salaries and benefits associated with our manufacturing process. We allocate fixed manufacturing overhead based on normal production capacity. Unallocated overhead costs resulting from periods with abnormally low production levels are charged to expense as incurred. As inventory is sold to third parties, we recognize the cost of sales in the same period the sale occurs. We periodically review our inventory for estimated obsolescence or instances when inventory is no longer marketable for its intended use, and we record any write-down equal to the difference between the cost of inventory and its estimated net realizable value based on assumptions about alternative uses, market conditions and other factors. | |||
Land Held for Development | ' | ||
Land held for development. Land held for development relates to Basic Management, Inc. (“BMI”) and The Landwell Company L.P. (“Landwell”), for which we acquired a controlling interest in December 2013, see Note 3. The primary asset of Landwell is certain real property in Henderson, Nevada some of which we are developing for residential lots in a master planned community. Land held for development was recorded at the estimated acquisition date fair value based on a value per developable acre at the time of purchase. Development costs, including infrastructure improvements, real estate taxes, capitalized interest and other costs, some of which may be allocated, are capitalized during the period incurred. We allocate costs to each parcel sold on a pro-rata basis associated with the relevant development activity. As land parcels are sold, costs of land sales, including land and development costs, are allocated based on specific identification, relative sales value, square footage or a combination of these methods. All sales and marketing activities and general overhead are charged to selling, general and administrative expense as incurred. | |||
Investment In Affiliates and Joint Ventures | ' | ||
Investment in affiliates and joint ventures. We account for investments in more than 20%-owned but less than majority-owned companies by the equity method. See Note 7. We allocate any differences between the cost of each investment and our pro-rata share of the entity’s separately-reported net assets among the assets and liabilities of the entity based upon estimated relative fair values. We amortize these differences, which were not material at December 31, 2013, to income as the entities depreciate, amortize or dispose of the related net assets. | |||
Goodwill and Other Intangible Assets; Amortization Expense | ' | ||
Goodwill and other intangible assets; amortization expense. Goodwill represents the excess of cost over fair value of individual net assets acquired in business combinations. Goodwill is not subject to periodic amortization. We amortize other intangible assets by the straight-line method over their estimated lives and state them net of accumulated amortization. We evaluate goodwill for impairment, annually, or when circumstances indicate the carrying value may not be recoverable. We evaluate other intangible assets for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. See Note 8. | |||
Capitalized Operating Permits | ' | ||
Capitalized operating permits. Our Waste Management Segment capitalizes direct costs related to the acquisition or renewal of operating permits and amortize such costs by the straight-line method over the term of the applicable permit. Our net capitalized operating permit costs include (i) costs to renew certain permits for which the renewal application is pending with the applicable regulatory agency and (ii) costs to apply for certain new permits which have not yet been issued by the applicable regulatory authority. We currently expect renewal of the permits for which application is still pending will occur in the ordinary course of business, and we are amortizing costs related to such renewals from the date the prior permit expired. All operating permits are generally subject to renewal at the option of the issuing governmental agency. See Note 7. | |||
Property and Equipment; Depreciation Expense | ' | ||
Property and equipment; depreciation expense. We state property and equipment at acquisition cost, including capitalized interest on borrowings during the actual construction period of major capital projects. In 2011, 2012 and 2013 we capitalized $3.3 million, $1.7 million and $1.6 million, respectively, of interest costs. We compute depreciation of property and equipment for financial reporting purposes (including mining equipment) principally by the straight-line method over the estimated useful lives of the assets as follows: | |||
Asset | Useful lives | ||
Buildings and improvements | 10 to 40 years | ||
Machinery and equipment | 3 to 20 years | ||
Mine development costs | Units-of-production | ||
Landfill disposal costs | Units-of-consumption | ||
We expense expenditures for maintenance, repairs and minor renewals as incurred that do not improve or extend the life of the assets, including planned major maintenance. | |||
We have a governmental concession with an unlimited term to operate our ilmenite mines in Norway. Mining properties consist of buildings and equipment used in our Norwegian ilmenite mining operations. While we own the land and ilmenite reserves associated with the mining operations, such land and reserves were acquired for nominal value and we have no material asset recognized for the land and reserves related to our mining operations. | |||
We operate waste disposal facilities. We capitalize preparation costs for landfill disposal cells, including costs relating to excavation and grading and the design and construction of liner and leachate collection system. We recognize closure and post closure costs as part of the carrying value disposal facilities. | |||
We perform impairment tests when events or changes in circumstances indicate the carrying value may not be recoverable. We consider all relevant factors. We perform the impairment test by comparing the estimated future undiscounted cash flows (exclusive of interest expense) associated with the asset to the asset’s net carrying value to determine if a write-down to fair value is required. | |||
Closure and Post Closure Costs | ' | ||
Closure and post closure costs. The closure and post closure obligations related to our Waste Management Segment’s waste disposal sites are covered by the scope of ASC Topic 410, Asset Retirement and Environmental Obligations. We recognize the fair value of a liability for an asset retirement obligation in accordance with ASC Topic 410 in the period in which the liability is incurred, with an offsetting increase in the carrying amount of the related long-lived asset. Over time, we accrete the liability to its future value, and we depreciate the capitalized cost over the useful life of the related asset. The accretion and depreciation expenses are reported as a component of cost of sales in the accompanying statement of operations. We account for future revisions in the estimated fair value of the asset retirement obligation due to changes in the amount and/or timing of the expected future cash flows to settle the retirement obligation, prospectively as an adjustment to the previously-recognized asset retirement cost. Upon settlement of the liability, we will either settle the obligation for its recorded amount or incur a gain or loss upon settlement. See Note 10. | |||
Long-Term Debt | ' | ||
Long-term debt. We state long-term debt net of any unamortized original issue premium or discount. We classify amortization of deferred financing costs and any premium or discount associated with the issuance of indebtedness as interest expense, and compute amortization by either the interest method or the straight-line method over the term of the applicable issue. | |||
Employee Benefit Plans | ' | ||
Employee benefit plans. Accounting and funding policies for our retirement plans are described in Note 11. | |||
Income Taxes | ' | ||
Income taxes. We and our qualifying subsidiaries are members of Contran’s consolidated U.S federal income tax group (the “Contran Tax Group”). We and certain of our qualifying subsidiaries also file consolidated income tax returns with Contran in various U.S. state jurisdictions. As a member of the Contran Tax Group, we are jointly and severally liable for the federal income tax liability of Contran and the other companies included in the Contran Tax Group for all periods in which we are included in the Contran Tax Group. See Note 17. As a member of the Contran Tax Group, we are a party to a tax sharing agreement which provides that we compute our tax provision for U.S. income taxes on a separate-company basis using the tax elections made by Contran. Pursuant to the tax sharing agreement, we make payments to or receive payments from Contran in amounts we would have paid to or received from the U.S. Internal Revenue Service or the applicable state tax authority had we not been a member of the Contran Tax Group. Generally, subsidiaries make payments to or receive payments from us in the amounts they would have paid to or received from the Internal Revenue Service or the applicable state tax authority had they not been members of the Contran Tax Group. We made net cash payments for income taxes to Contran of $10.3 million in 2011, $6.0 million in 2012 and $6.5 million in 2013. | |||
We recognize deferred income tax assets and liabilities for the expected future tax consequences of temporary differences between amounts recorded in our Consolidated Financial Statements and the tax basis of our assets and liabilities, including investments in our subsidiaries and affiliates who are not members of the Contran Tax Group and undistributed earnings of foreign subsidiaries which are not deemed to be permanently reinvested. In addition, we recognize deferred income taxes with respect to the excess of the financial reporting carrying amount over the income tax basis of our direct investment in Kronos common stock because the exemption under GAAP to avoid recognition of such deferred income taxes is not available to us. The earnings of our foreign subsidiaries subject to permanent reinvestment plans aggregated $.9 billion at December 31, 2013 (at December 31, 2012 the amount was $1.0 billion). It is not practical for us to determine the amount of the unrecognized deferred income tax liability related to these earnings due to the complexities associated with the U.S. taxation on earnings of foreign subsidiaries repatriated to the U.S. We periodically evaluate our deferred tax assets in the various taxing jurisdictions in which we operate and adjust any related valuation allowance based on the estimate of the amount of such deferred tax assets we believe does not meet the more-likely-than-not recognition criteria. | |||
We record a reserve for uncertain tax positions where we believe it is more-likely-than-not our position will not prevail with the applicable tax authorities. The amount of the benefit associated with our uncertain tax positions that we recognize is limited to the largest amount for which we believe the likelihood of realization is greater than 50%. We accrue penalties and interest on the difference between tax positions taken on our tax returns and the amount of benefit recognized for financial reporting purposes. We classify our reserves for uncertain tax positions in a separate current or noncurrent liability, depending on the nature of the tax position. See Note 12. | |||
Environmental Remediation and Related Costs | ' | ||
Environmental remediation and related costs. We record liabilities related to environmental remediation and related costs when estimated future expenditures are probable and reasonably estimable. We adjust these accruals as further information becomes available to us or as circumstances change. We generally do not discount estimated future expenditures to its present value due to the uncertainty of the timing of the ultimate payout. We recognize any recoveries of remediation costs from other parties when we deem their receipt to be probable. We expense any environmental remediation related legal costs as incurred. At December 31, 2012 and 2013, we had not recognized any receivables for recoveries. See Note 17. | |||
Net Sales | ' | ||
Net sales. We record sales when products are shipped and title and other risks and rewards of ownership have passed to the customer, or when we perform services. We include amounts charged to customers for shipping and handling costs in net sales. We state sales net of price, early payment and distributor discounts and volume rebates. We report taxes assessed by a governmental authority such as sales, use, value added, excise taxes and fees from the State of Texas and Andrews County, Texas on a net basis (i.e., we do not recognize these taxes in either our revenues or in our costs and expenses). | |||
Selling, General and Administrative Expenses; Shipping and Handling Costs; Advertising Costs; Research and Development Costs | ' | ||
Selling, general and administrative expenses; shipping and handling costs; advertising costs; research and development costs. Selling, general and administrative expenses include costs related to marketing, sales, distribution, shipping and handling, research and development, legal, environmental remediation and administrative functions such as accounting, treasury and finance, and includes costs for salaries and benefits not associated with our manufacturing process, travel and entertainment, promotional materials and professional fees. Shipping and handling costs of our Chemicals Segment were approximately $93 million in 2011, $89 million in 2012 and $93 million in 2013. Shipping and handling costs of our Component Products and Waste Management Segments are not material. We expense advertising and research, development and sales technical support costs as incurred. Advertising costs attributable to continuing operations were approximately $2 million in 2011, $1 million in 2012 and $2 million in 2013. Research, development and certain sales technical support costs attributable to continuing operations were approximately $20 million in 2011, $19 million in 2012 and $18 million in 2013. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Computation of Depreciation of Property and Equipment | ' | ||
Property and equipment; depreciation expense. We state property and equipment at acquisition cost, including capitalized interest on borrowings during the actual construction period of major capital projects. In 2011, 2012 and 2013 we capitalized $3.3 million, $1.7 million and $1.6 million, respectively, of interest costs. We compute depreciation of property and equipment for financial reporting purposes (including mining equipment) principally by the straight-line method over the estimated useful lives of the assets as follows: | |||
Asset | Useful lives | ||
Buildings and improvements | 10 to 40 years | ||
Machinery and equipment | 3 to 20 years | ||
Mine development costs | Units-of-production | ||
Landfill disposal costs | Units-of-consumption | ||
Business_and_Geographic_Segmen1
Business and Geographic Segments (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Holding Percentage of Subsidiaries | ' | |||||||||||
Business segment | Entity | % controlled at | ||||||||||
December 31, 2013 | ||||||||||||
Chemicals | Kronos | 80% | ||||||||||
Component products | CompX | 87% | ||||||||||
Waste management | WCS | 100% | ||||||||||
Segment Operating Performance | ' | |||||||||||
Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Net sales: | ||||||||||||
Chemicals | $ | 1,943.30 | $ | 1,976.30 | $ | 1,732.40 | ||||||
Component products | 79.8 | 83.2 | 92 | |||||||||
Waste management | 2 | 27.8 | 39.2 | |||||||||
Total net sales | $ | 2,025.10 | $ | 2,087.30 | $ | 1,863.60 | ||||||
Cost of sales: | ||||||||||||
Chemicals | $ | 1,197.50 | $ | 1,418.20 | $ | 1,622.60 | ||||||
Component products | 55.6 | 58.9 | 64.5 | |||||||||
Waste management | 25.3 | 35 | 42.3 | |||||||||
Total cost of sales | $ | 1,278.40 | $ | 1,512.10 | $ | 1,729.40 | ||||||
Gross margin: | ||||||||||||
Chemicals | $ | 745.8 | $ | 558.1 | $ | 109.8 | ||||||
Component products | 24.2 | 24.3 | 27.5 | |||||||||
Waste management | (23.3 | ) | (7.2 | ) | (3.1 | ) | ||||||
Total gross margin | $ | 746.7 | $ | 575.2 | $ | 134.2 | ||||||
Operating income (loss): | ||||||||||||
Chemicals | $ | 553 | $ | 366.8 | $ | (125.4 | ) | |||||
Component products | 6.4 | 5.4 | 9.3 | |||||||||
Waste management | (38.0 | ) | (26.8 | ) | (22.6 | ) | ||||||
Total operating income (loss) | 521.4 | 345.4 | (138.7 | ) | ||||||||
Equity in earnings of joint venture | (.5 | ) | (.2 | ) | 0.5 | |||||||
General corporate items: | ||||||||||||
Securities earnings | 28.6 | 50.2 | 26.6 | |||||||||
Insurance recoveries | 16.9 | 3.3 | 9.4 | |||||||||
Litigation settlement gain | — | 14.7 | — | |||||||||
Gain on sale of excess property | — | 3.2 | — | |||||||||
Goodwill impairment | — | (6.4 | ) | — | ||||||||
Gain on bargain purchase and remeasurement of existing investment in acquiree | — | — | 54.6 | |||||||||
General expenses, net | (40.7 | ) | (45.3 | ) | (105.3 | ) | ||||||
Loss on prepayment of debt, net | (3.1 | ) | (7.2 | ) | (8.9 | ) | ||||||
Interest expense | (61.8 | ) | (56.3 | ) | (56.1 | ) | ||||||
Income (loss) from continuing operations before income taxes | $ | 460.8 | $ | 301.4 | $ | (217.9 | ) | |||||
Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Depreciation and amortization: | ||||||||||||
Chemicals | $ | 50.2 | $ | 50.4 | $ | 52.8 | ||||||
Component products* | 6.8 | 5.8 | 3.3 | |||||||||
Waste management | 6.8 | 13.2 | 18.4 | |||||||||
Total | $ | 63.8 | $ | 69.4 | $ | 74.5 | ||||||
Capital expenditures: | ||||||||||||
Chemicals | $ | 68.6 | $ | 74.9 | $ | 67.6 | ||||||
Component products* | 3.2 | 4.3 | 3.5 | |||||||||
Waste management | 74.3 | 19.6 | 3.5 | |||||||||
Corporate | 0.1 | — | — | |||||||||
Total | $ | 146.2 | $ | 98.8 | $ | 74.6 | ||||||
Total Assets Held by Business Segments | ' | |||||||||||
December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Total assets: | ||||||||||||
Operating segments: | ||||||||||||
Chemicals | $ | 2,189.70 | $ | 2,401.10 | $ | 1,984.80 | ||||||
Component products** | 141.4 | 82.3 | 83.1 | |||||||||
Waste management | 223.4 | 265 | 270.1 | |||||||||
Joint venture accounted for by the | 16.5 | 16.2 | — | |||||||||
equity method | ||||||||||||
Corporate and eliminations | 267 | 405.9 | 629.2 | |||||||||
Total | $ | 2,838.00 | $ | 3,170.50 | $ | 2,967.20 | ||||||
* | Includes discontinued operations for 2011 and 2012, see Note 3. | |||||||||||
** | Includes discontinued operations for 2011, see Note 3. | |||||||||||
Net Sales by Point of Origin and Point of Destination | ' | |||||||||||
Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Net sales—point of origin: | ||||||||||||
United States | $ | 831.4 | $ | 1,153.80 | $ | 961.5 | ||||||
Germany | 1,039.70 | 977.7 | 915.8 | |||||||||
Canada | 301.7 | 339.1 | 246.5 | |||||||||
Norway | 245.1 | 284 | 261.3 | |||||||||
Belgium | 301.8 | 272.9 | 254.6 | |||||||||
Eliminations | (694.6 | ) | (940.2 | ) | (776.1 | ) | ||||||
Total | $ | 2,025.10 | $ | 2,087.30 | $ | 1,863.60 | ||||||
Net sales—point of destination: | ||||||||||||
North America | $ | 578.2 | $ | 760.7 | $ | 690.5 | ||||||
Europe | 1,141.30 | 1,011.40 | 905 | |||||||||
Asia and other | 305.6 | 315.2 | 268.1 | |||||||||
Total | $ | 2,025.10 | $ | 2,087.30 | $ | 1,863.60 | ||||||
Net Property and Equipment by Segment | ' | |||||||||||
December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Net property and equipment: | ||||||||||||
United States** | $ | 189 | $ | 211.9 | $ | 232.8 | ||||||
Germany | 259.6 | 271.2 | 292.9 | |||||||||
Canada** | 80 | 73 | 67.1 | |||||||||
Norway | 101.5 | 109.5 | 100.9 | |||||||||
Belgium | 86 | 97.5 | 102.7 | |||||||||
Taiwan** | 7.7 | — | — | |||||||||
Total | $ | 723.8 | $ | 763.1 | $ | 796.4 | ||||||
** | Includes discontinued operations for 2011, see Note 3. |
Business_Combinations_Disconti1
Business Combinations, Discontinued Operations and Related Transactions (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Schedule of Condensed Income Statement and Balance Sheet | ' | |||||||
Selected financial data for the operations of the disposed furniture Components business is presented below: | ||||||||
Years ended December 31, | ||||||||
2011 | 2012 | |||||||
(In millions) | ||||||||
Income statement: | ||||||||
Net sales | $ | 59 | $ | 60.7 | ||||
Operating income | $ | 9.1 | $ | 7.4 | ||||
Income from discontinued operations: | ||||||||
Income before taxes | $ | 9.1 | $ | 7.2 | ||||
Income tax expense | 5 | 3.5 | ||||||
Income from discontinued operations, net of tax | 4.1 | 3.7 | ||||||
Gain on sale of discontinued operations: | ||||||||
Gain on sale | — | 23.7 | ||||||
Income tax expense | — | 1.9 | ||||||
Gain on sale discontinued operations, net of tax | — | 21.8 | ||||||
Total discontinued operations, net of tax | 4.1 | 25.5 | ||||||
Noncontrolling interest in income from discontinued operations | 1.1 | 1 | ||||||
Noncontrolling interest in gain on sale of discontinued operations | — | 6.1 | ||||||
Total noncontrolling interest in discontinued operations | 1.1 | 7.1 | ||||||
Total discontinued operations, net of tax and | $ | 3 | $ | 18.4 | ||||
noncontrolling interest | ||||||||
Recognition Based on Preliminary Analysis of Provisional Amounts | ' | |||||||
Based on our preliminary analysis of the provisional amounts of the transaction at December 31, 2013 we recognized the following: | ||||||||
(In millions) | ||||||||
Consideration: | ||||||||
Cash | $ | 5.3 | ||||||
Promissory note payable | 19.1 | |||||||
Deferred payment, obligation ($11.1 million face value) | 8.2 | |||||||
Total fair value of consideration | 32.6 | |||||||
Fair value of existing equity interest in BMI and Landwell | 43.4 | |||||||
Bargain purchase gain recognized | 28 | |||||||
Preliminary total | $ | 104 | ||||||
Preliminary allocation of purchase price to identifiable assets acquired and liabilities assumed: | ||||||||
Cash | $ | 27.4 | ||||||
Land held for development: | ||||||||
Current | 14.3 | |||||||
Noncurrent | 158.1 | |||||||
Other current assets | 9.4 | |||||||
Property, plant and equipment | 29 | |||||||
Other noncurrent assets | 8.5 | |||||||
Long-term debt | (14.3 | ) | ||||||
Other liabilities | (66.9 | ) | ||||||
Total net identifiable assets | 165.5 | |||||||
Noncontrolling interest in BMI and Landwell | (61.5 | ) | ||||||
Preliminary total | $ | 104 | ||||||
Marketable_Securities_Tables
Marketable Securities (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Schedule of Marketable Securities | ' | |||||||||||||||
Market | Cost | Unrealized | ||||||||||||||
value | basis | gains, | ||||||||||||||
net | ||||||||||||||||
(In millions) | ||||||||||||||||
December 31, 2012: | ||||||||||||||||
Current assets | $ | 0.9 | $ | 0.9 | $ | — | ||||||||||
Noncurrent assets: | ||||||||||||||||
The Amalgamated Sugar Company LLC | $ | 250 | $ | 250 | $ | — | ||||||||||
Other | 6.8 | 6.7 | 0.1 | |||||||||||||
Total | $ | 256.8 | $ | 256.7 | $ | 0.1 | ||||||||||
December 31, 2013: | ||||||||||||||||
Current assets | $ | 3.8 | $ | 3.8 | $ | — | ||||||||||
Noncurrent assets: | ||||||||||||||||
The Amalgamated Sugar Company LLC | $ | 250 | $ | 250 | $ | — | ||||||||||
Other | 3.3 | 3.3 | — | |||||||||||||
Total | $ | 253.3 | $ | 253.3 | $ | — | ||||||||||
Schedule of Marketable Securities and Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
Total | Quoted | Significant | Significant | |||||||||||||
Prices in | Other | Unobservable | ||||||||||||||
Active | Observable | Inputs | ||||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(In millions) | ||||||||||||||||
December 31, 2012: | ||||||||||||||||
Current assets | $ | 0.9 | $ | — | $ | 0.9 | $ | — | ||||||||
Noncurrent assets: | ||||||||||||||||
The Amalgamated Sugar Company LLC | $ | 250 | $ | — | $ | — | $ | 250 | ||||||||
Mutual funds and common stocks | 6.8 | 3.5 | 3.3 | — | ||||||||||||
Total | $ | 256.8 | $ | 3.5 | $ | 3.3 | $ | 250 | ||||||||
December 31, 2013: | ||||||||||||||||
Current assets | $ | 3.8 | $ | 2.4 | $ | 1.4 | $ | — | ||||||||
Noncurrent assets: | ||||||||||||||||
The Amalgamated Sugar Company LLC | $ | 250 | $ | — | $ | — | $ | 250 | ||||||||
Fixed income securities | 1.9 | — | 1.9 | — | ||||||||||||
Mutual funds and common stocks | 1.4 | 1.4 | — | — | ||||||||||||
Total | $ | 253.3 | $ | 1.4 | $ | 1.9 | $ | 250 | ||||||||
Accounts_and_Other_Receivables1
Accounts and Other Receivables, Net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Components of Accounts and Other Receivables | ' | |||||||
December 31, | ||||||||
2012 | 2013 | |||||||
(In millions) | ||||||||
Trade accounts receivable: | ||||||||
Kronos | $ | 229.7 | $ | 226.1 | ||||
CompX | 8.7 | 8.7 | ||||||
WCS | 4.8 | 7.2 | ||||||
VAT and other receivables | 42.2 | 32.7 | ||||||
Allowance for doubtful accounts | (1.5 | ) | (1.3 | ) | ||||
Total | $ | 283.9 | $ | 273.4 | ||||
Inventories_Net_Tables
Inventories, Net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventories, Net | ' | |||||||
December 31, | ||||||||
2012 | 2013 | |||||||
(In millions) | ||||||||
Raw materials: | ||||||||
Chemicals | $ | 151.5 | $ | 66.6 | ||||
Component products | 3.3 | 3.6 | ||||||
Total raw materials | 154.8 | 70.2 | ||||||
Work in process: | ||||||||
Chemicals | 27.3 | 18 | ||||||
Component products | 5.9 | 6.7 | ||||||
Total in-process products | 33.2 | 24.7 | ||||||
Finished products: | ||||||||
Chemicals | 395.6 | 263.3 | ||||||
Component products | 2.1 | 3 | ||||||
Total finished products | 397.7 | 266.3 | ||||||
Supplies (chemicals) | 64.6 | 69.4 | ||||||
Total | $ | 650.3 | $ | 430.6 | ||||
Investment_in_Affiliates_and_O1
Investment in Affiliates and Other Assets (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Investment in Affiliates and Other Assets | ' | |||||||||||
December 31, | ||||||||||||
2012 | 2013 | |||||||||||
(In millions) | ||||||||||||
Investment in affiliates: | ||||||||||||
Ti02 manufacturing joint venture | $ | 109.9 | $ | 102.3 | ||||||||
BMI and Landwell | 16.2 | — | ||||||||||
Total | $ | 126.1 | $ | 102.3 | ||||||||
Other assets: | ||||||||||||
Land held for development | $ | — | $ | 158.1 | ||||||||
Waste disposal site operating permits, net | 65.7 | 59.5 | ||||||||||
Restricted cash | 20.9 | 33.3 | ||||||||||
IBNR receivables | 6.7 | 6.9 | ||||||||||
Capital lease deposit | 6.2 | 6.2 | ||||||||||
Intangible assets | 0.2 | 5.2 | ||||||||||
Deferred financing costs | 7 | 2.6 | ||||||||||
Assets held for sale | 2.6 | 1.1 | ||||||||||
Other | 46.7 | 63.8 | ||||||||||
Total | $ | 156 | $ | 336.7 | ||||||||
Summary of Financial Information | ' | |||||||||||
Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Distributions from LPC | $ | 29.7 | $ | 79.5 | $ | 70.7 | ||||||
Contributions to LPC | (25.9 | ) | (100.2 | ) | (59.8 | ) | ||||||
Net distributions (contributions) | $ | 3.8 | $ | (20.7 | ) | $ | 10.9 | |||||
Components of Net Capitalized Permit Costs | ' | |||||||||||
December 31, | ||||||||||||
2012 | 2013 | |||||||||||
(In millions) | ||||||||||||
Net permit costs for: | ||||||||||||
Pending renewals of prior permits | $ | 0.2 | $ | — | ||||||||
Issued permits which are being amortized: | ||||||||||||
LLRW license (expires in 2024) | 58.3 | 54 | ||||||||||
Byproduct license (expires in 2018) | 5.6 | 4.6 | ||||||||||
Other (expires 2014 - 2024) | 1.6 | 0.9 | ||||||||||
Total pending renewals and issued permits which are being amortized | $ | 65.7 | $ | 59.5 | ||||||||
LPC | ' | |||||||||||
Summary of Financial Information | ' | |||||||||||
Summary balance sheets of LPC are shown below: | ||||||||||||
December 31, | ||||||||||||
2012 | 2013 | |||||||||||
(In millions) | ||||||||||||
ASSETS | ||||||||||||
Current assets | $ | 139.8 | $ | 127.2 | ||||||||
Property and equipment, net | 126 | 114.1 | ||||||||||
Total assets | $ | 265.8 | $ | 241.3 | ||||||||
LIABILITIES AND PARTNERS’ EQUITY | ||||||||||||
Other liabilities, primarily current | $ | 43.2 | $ | 33.9 | ||||||||
Partners’ equity | 222.6 | 207.4 | ||||||||||
Total liabilities and partners’ equity | $ | 265.8 | $ | 241.3 | ||||||||
Summary income statements of LPC are shown below: | ||||||||||||
Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Revenues and other income: | ||||||||||||
Kronos | $ | 144.8 | $ | 250.2 | $ | 224.5 | ||||||
Tioxide | 145.7 | 227.5 | 224.6 | |||||||||
Total | 290.5 | 477.7 | 449.1 | |||||||||
Cost and expenses: | ||||||||||||
Cost of sales | 290.1 | 477.3 | 448.7 | |||||||||
General and administrative | 0.4 | 0.4 | 0.4 | |||||||||
Total | 290.5 | 477.7 | 449.1 | |||||||||
Net income | $ | — | $ | — | $ | — | ||||||
Basic Management Inc And Landwell | ' | |||||||||||
Summary of Financial Information | ' | |||||||||||
September 30, | ||||||||||||
2012 | ||||||||||||
(In millions) | ||||||||||||
ASSETS | ||||||||||||
Current assets | $ | 25.7 | ||||||||||
Prepaid costs and other | 11.6 | |||||||||||
Property and equipment, net | 6.4 | |||||||||||
Investment in undeveloped land and water rights | 42 | |||||||||||
Land and development costs | 12.7 | |||||||||||
Total assets | $ | 98.4 | ||||||||||
LIABILITIES AND EQUITY | ||||||||||||
Current liabilities | $ | 14.2 | ||||||||||
Long-term debt | 14.3 | |||||||||||
Deferred income taxes | 6 | |||||||||||
Other noncurrent liabilities | 3.4 | |||||||||||
Equity | 60.5 | |||||||||||
Total liabilities and equity | $ | 98.4 | ||||||||||
Twelve months ended September 30, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Total revenues | $ | 10 | $ | 10.4 | $ | 9.5 | ||||||
Loss before income taxes | (2.7 | ) | (1.2 | ) | (3.9 | ) | ||||||
Net loss | (2.1 | ) | (1.4 | ) | (3.7 | ) | ||||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Changes in Carrying Amount of Goodwill | ' | |||||||||||||||
Operating segment | ||||||||||||||||
Chemicals | Component | EWI | Total | |||||||||||||
Products | ||||||||||||||||
(In millions) | ||||||||||||||||
Balance at December 31, 2010 | $ | 352.6 | $ | 38.4 | $ | 6.4 | $ | 397.4 | ||||||||
Changes in foreign exchange rates | — | (.4 | ) | — | (.4 | ) | ||||||||||
Goodwill acquired | — | 3.1 | — | 3.1 | ||||||||||||
Balance at December 31, 2011 | 352.6 | 41.1 | 6.4 | 400.1 | ||||||||||||
Sale of discontinued operations | — | (14.3 | ) | — | (14.3 | ) | ||||||||||
Goodwill impairment | — | — | (6.4 | ) | (6.4 | ) | ||||||||||
Changes in foreign exchange rates | — | 0.3 | — | 0.3 | ||||||||||||
Balance at December 31, 2012 and 2013 | $ | 352.6 | $ | 27.1 | $ | — | $ | 379.7 | ||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Long-Term Debt | ' | |||||||
December 31, | ||||||||
2012 | 2013 | |||||||
(In millions) | ||||||||
Valhi: | ||||||||
Snake River Sugar Company | $ | 250 | $ | 250 | ||||
Contran credit facility | 157.6 | 206.5 | ||||||
Total Valhi debt | 407.6 | 456.5 | ||||||
Subsidiary debt: | ||||||||
Kronos: | ||||||||
Note payable to Contran | — | 170 | ||||||
Term loan | 384.5 | — | ||||||
Revolving North American credit facility | — | 11.1 | ||||||
Revolving European credit facility | 13.2 | — | ||||||
CompX: | ||||||||
Promissory note payable to TIMET | 18.5 | — | ||||||
WCS: | ||||||||
Financing capital lease | 69.9 | 68.6 | ||||||
6% promissory notes | 7.2 | 2.4 | ||||||
Tremont: | ||||||||
Promissory note payable | — | 19.1 | ||||||
BMI: | ||||||||
Bank note payable | — | 11.2 | ||||||
Landwell: | ||||||||
Note payable to the City of Henderson | — | 3.1 | ||||||
Other | 9.2 | 10.5 | ||||||
Total subsidiary debt | 502.5 | 296 | ||||||
Total debt | 910.1 | 752.5 | ||||||
Less current maturities | 29.6 | 10.7 | ||||||
Total long-term debt | $ | 880.5 | $ | 741.8 | ||||
Aggregate Maturities of Long-Term Debt | ' | |||||||
Aggregate maturities of debt at December 31, 2013 are presented in the table below. Such maturities, as they relate to Kronos note payable to Contran, are based upon the required quarterly principal repayments of its new term loan. | ||||||||
Years ending December 31, | Amount | |||||||
(In millions) | ||||||||
Gross amounts due each year: | ||||||||
2014 | $ | 15.2 | ||||||
2015 | 219.2 | |||||||
2016 | 13.1 | |||||||
2017 | 22.4 | |||||||
2018 | 11.3 | |||||||
2019 and thereafter | 535.6 | |||||||
Subtotal | 816.8 | |||||||
Less amounts representing interest on capital leases | 64.3 | |||||||
Total long-term debt | $ | 752.5 | ||||||
After considering the effect of the new term loan Kronos obtained in February 2014 and the application of the net proceeds as discussed above, our aggregate maturities of long-term debt would be: | ||||||||
Years ending December 31, | Amount | |||||||
(In millions) | ||||||||
Gross amounts due each year: | ||||||||
2014 | $ | 15.2 | ||||||
2015 | 219.2 | |||||||
2016 | 13.1 | |||||||
2017 | 22.4 | |||||||
2018 | 11.3 | |||||||
2019 and thereafter | 715.6 | |||||||
Subtotal | 996.8 | |||||||
Less amounts representing interest on capital leases | 64.3 | |||||||
Total long-term debt | $ | 932.5 | ||||||
Accounts_Payable_and_Accrued_L1
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Schedule of Accounts Payable and Accrued Liabilities | ' | |||||||
December 31, | ||||||||
2012 | 2013 | |||||||
(In millions) | ||||||||
Accounts payable: | ||||||||
Kronos | $ | 161.3 | $ | 124 | ||||
CompX | 2.8 | 1.5 | ||||||
WCS | 0.9 | 0.4 | ||||||
Other | 4.6 | 7.3 | ||||||
Total | $ | 169.6 | $ | 133.2 | ||||
Current accrued liabilities: | ||||||||
Employee benefits | $ | 38.5 | $ | 36.1 | ||||
Deferred income | 5.4 | 36.9 | ||||||
Accrued litigation settlement | — | 35.0 | ||||||
Accrued sales discounts and rebates | 14.9 | 16.7 | ||||||
Environmental costs | 7.6 | 9.1 | ||||||
Reserve for uncertain tax positions | 3 | 3.1 | ||||||
Other | 42.8 | 51.3 | ||||||
Total | $ | 112.2 | $ | 188.2 | ||||
Noncurrent accrued liabilities: | ||||||||
Reserve for uncertain tax positions | $ | 29.4 | $ | 49.8 | ||||
Asset retirement obligations | 23.8 | 25.6 | ||||||
Employee benefits | 11.3 | 12.2 | ||||||
Insurance claims and expenses | 9.7 | 9.5 | ||||||
Deferred payment obligation | — | 8.2 | ||||||
Deferred income | 1 | 1.3 | ||||||
Other | 3.1 | 3.6 | ||||||
Total | $ | 78.3 | $ | 110.2 | ||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Defined Benefit Pension Plans | ' | |||||||||||||||
Schedule of Defined Benefit Plan Expected Future Payments | ' | |||||||||||||||
We expect to contribute the equivalent of $27.4 million to all of our defined benefit pension plans during 2014. Benefit payments to plan participants out of plan assets are expected to be the equivalent of: | ||||||||||||||||
2014 | $ | 29.2 million | ||||||||||||||
2015 | 29.2 million | |||||||||||||||
2016 | 29.0 million | |||||||||||||||
2017 | 29.8 million | |||||||||||||||
2018 | 30.4 million | |||||||||||||||
Next 5 years | 168.3 million | |||||||||||||||
Schedule of Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) | ' | |||||||||||||||
The amounts shown for all of our defined benefit plans for unrecognized actuarial losses, prior service cost and net transition obligations at December 31, 2012 and 2013 have not been recognized as components of our periodic defined benefit pension cost as of those dates. These amounts will be recognized as components of our periodic defined benefit cost in future years. These amounts, net of deferred income taxes and noncontrolling interest, are recognized in our accumulated other comprehensive income (loss) at December 31, 2012 and 2013. We expect approximately $11.4 million, $.5 million and $.1 million of the unrecognized actuarial losses, prior service cost and net transition obligations, respectively, will be recognized as components of our periodic defined benefit pension cost in 2014. The table below details the changes in other comprehensive income (loss) during 2011, 2012 and 2013. | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||
(In millions) | ||||||||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | ||||||||||||||||
Net actuarial gain (loss) | $ | (30.1 | ) | $ | (66.7 | ) | $ | 19.8 | ||||||||
Plan curtailment | — | — | 7.1 | |||||||||||||
Amortization of unrecognized: | ||||||||||||||||
Prior service cost | 1.2 | 1.1 | 1.1 | |||||||||||||
Net transition obligations | 0.5 | 0.4 | 0.4 | |||||||||||||
Net actuarial gain | 8.2 | 9.7 | 14.2 | |||||||||||||
Total | $ | (20.2 | ) | $ | (55.5 | ) | $ | 42.6 | ||||||||
Composition of Pension Plan Assets | ' | |||||||||||||||
The composition of our December 31, 2012 and 2013 pension plan assets by fair value level is shown in the table below. The amounts shown for plan assets invested in the CMRT include a nominal amount of cash held by our U.S. pension plan which is not part of the plan’s investment in the CMRT. | ||||||||||||||||
Fair Value Measurements at December 31, 2012 | ||||||||||||||||
Total | Quoted | Significant | Significant | |||||||||||||
Prices in | Other | Unobservable | ||||||||||||||
Active | Observable | Inputs | ||||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(In millions) | ||||||||||||||||
Germany | $ | 224.8 | $ | — | $ | — | $ | 224.8 | ||||||||
Canada: | ||||||||||||||||
Local currency equities | 22.4 | 22.4 | — | — | ||||||||||||
Foreign currency equities | 30.3 | 30.3 | — | — | ||||||||||||
Local currency fixed income | 38 | 38 | — | — | ||||||||||||
Global mutual fund | 5.6 | 5.6 | — | — | ||||||||||||
Cash and other | 2.1 | 2.1 | — | — | ||||||||||||
Norway: | ||||||||||||||||
Local currency equities | 3.2 | 3.2 | — | — | ||||||||||||
Foreign currency equities | 5.2 | 5.2 | — | — | ||||||||||||
Local currency fixed income | 40.9 | 40.9 | — | — | ||||||||||||
Foreign currency fixed income | 4.8 | 4.8 | — | — | ||||||||||||
Real estate | 5.5 | — | — | 5.5 | ||||||||||||
Cash and other | 7.6 | 7 | — | 0.6 | ||||||||||||
U.S.—CMRT | 50.7 | — | 50.7 | — | ||||||||||||
Other | 19.5 | 12.3 | — | 7.2 | ||||||||||||
Total | $ | 460.6 | $ | 171.8 | $ | 50.7 | $ | 238.1 | ||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||||
Total | Quoted | Significant | Significant | |||||||||||||
Prices in | Other | Unobservable | ||||||||||||||
Active | Observable | Inputs | ||||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(In millions) | ||||||||||||||||
Germany | $ | 247.5 | $ | — | $ | — | $ | 247.5 | ||||||||
Canada: | ||||||||||||||||
Local currency equities | 24 | 24 | — | — | ||||||||||||
Foreign currency equities | 33 | 33 | — | — | ||||||||||||
Local currency fixed income | 44.7 | 44.7 | — | — | ||||||||||||
Global mutual fund | 6.1 | 6.1 | — | — | ||||||||||||
Cash and other | 0.5 | 0.5 | — | — | ||||||||||||
Norway: | ||||||||||||||||
Local currency equities | 2 | 2 | — | — | ||||||||||||
Foreign currency equities | 5.2 | 5.2 | — | — | ||||||||||||
Local currency fixed income | 35 | 35 | — | — | ||||||||||||
Foreign currency fixed income | 3.6 | 3.6 | — | — | ||||||||||||
Real estate | 4.8 | — | — | 4.8 | ||||||||||||
Cash and other | 13.2 | 12.4 | — | 0.8 | ||||||||||||
U.S.—CMRT | 55 | — | 55 | — | ||||||||||||
Other | 22 | 13.6 | — | 8.4 | ||||||||||||
Total | $ | 496.6 | $ | 180.1 | $ | 55 | $ | 261.5 | ||||||||
Schedule of Rollforward of Change in Fair Value of Level 3 Assets | ' | |||||||||||||||
A rollforward of the change in fair value of Level 3 assets follows. | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
2012 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
Fair value at beginning of year | $ | 200.6 | $ | 238.1 | ||||||||||||
Gain on assets held at end of year | 33 | 11.2 | ||||||||||||||
Gain on assets sold during the year | 0.1 | |||||||||||||||
Assets purchased | 15.1 | 16.1 | ||||||||||||||
Assets sold | (14.3 | ) | (14.6 | ) | ||||||||||||
Transfers out | (1.0 | ) | ||||||||||||||
Currency exchange rate fluctuations | 4.6 | 10.7 | ||||||||||||||
Fair value at end of year | $ | 238.1 | $ | 261.5 | ||||||||||||
U.S. Defined Benefit Pension Plans | ' | |||||||||||||||
Schedule of Funded Status | ' | |||||||||||||||
The funded status of our U.S. defined benefit pension plans is presented in the table below. | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
2012 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
Change in projected benefit obligations (“PBO”): | ||||||||||||||||
Balance at beginning of the year | $ | 65.3 | $ | 69.1 | ||||||||||||
Interest cost | 2.7 | 2.4 | ||||||||||||||
Actuarial loss (gain) | 4.9 | (5.6 | ) | |||||||||||||
Benefits paid | (3.8 | ) | (3.9 | ) | ||||||||||||
Balance at end of the year | $ | 69.1 | $ | 62 | ||||||||||||
Change in plan assets: | ||||||||||||||||
Fair value at beginning of the year | $ | 45.4 | $ | 50.7 | ||||||||||||
Actual return on plan assets | 6.9 | 7 | ||||||||||||||
Employer contributions | 2.2 | 1.1 | ||||||||||||||
Benefits paid | (3.8 | ) | (3.9 | ) | ||||||||||||
Fair value at end of year | $ | 50.7 | $ | 54.9 | ||||||||||||
Funded status | $ | (18.4 | ) | $ | (7.1 | ) | ||||||||||
Amounts recognized in the Consolidated Balance Sheets: | ||||||||||||||||
Accrued pension costs: | ||||||||||||||||
Current | $ | (.3 | ) | $ | (.3 | ) | ||||||||||
Noncurrent | (18.1 | ) | (6.8 | ) | ||||||||||||
Total | (18.4 | ) | (7.1 | ) | ||||||||||||
Accumulated other comprehensive loss—Actuarial loss | 38.1 | 28.9 | ||||||||||||||
Total | $ | 19.7 | $ | 21.8 | ||||||||||||
Accumulated benefit obligations (“ABO”) | $ | 69.1 | $ | 62 | ||||||||||||
Components of Net Periodic Defined Benefit Cost (Credit) | ' | |||||||||||||||
The components of our net periodic defined benefit pension benefit cost (credit) for U.S. plans are presented in the table below. The amounts shown below for the amortization of unrecognized actuarial losses for 2011, 2012 and 2013 were recognized as components of our accumulated other comprehensive income (loss) at December 31, 2010, 2011 and 2012, respectively, net of deferred income taxes and noncontrolling interest. | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||
(In millions) | ||||||||||||||||
Net periodic pension benefit cost (credit) for U.S. plans: | ||||||||||||||||
Interest cost | $ | 2.9 | $ | 2.7 | $ | 2.4 | ||||||||||
Expected return on plan assets | (4.8 | ) | (4.5 | ) | (4.9 | ) | ||||||||||
Amortization of unrecognized net actuarial loss | 1 | 1.6 | 1.6 | |||||||||||||
Total | $ | (.9 | ) | $ | (.2 | ) | $ | (.9 | ) | |||||||
Schedule of Plans for which Accumulated Benefit Obligations Exceeds Plan Assets | ' | |||||||||||||||
Certain information concerning our U.S. defined benefit pension plans is presented in the table below. | ||||||||||||||||
December 31, | ||||||||||||||||
2012 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
Plans for which the ABO exceeds plan assets: | ||||||||||||||||
Projected benefit obligations | $ | 69.1 | $ | 62 | ||||||||||||
Accumulated benefit obligations | 69.1 | 62 | ||||||||||||||
Fair value of plan assets | 50.7 | 54.9 | ||||||||||||||
Summary of Actuarial Assumptions Used to Determine the Benefit Obligation and Net Benefit Cost | ' | |||||||||||||||
The weighted-average rate assumptions used in determining the net periodic pension cost for our U.S. defined benefit pension plans for 2011, 2012 and 2013 are presented in the table below. The impact of assumed increases in future compensation levels does not have an effect on the periodic pension cost as the plans are frozen with regards to compensation. | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
Rate | 2011 | 2012 | 2013 | |||||||||||||
Discount rate | 5.10% | 4.20% | 3.60% | |||||||||||||
Long-term return on plan assets | 10.00% | 10.00% | 10.00% | |||||||||||||
Foreign Pension Plan Defined Benefit | ' | |||||||||||||||
Schedule of Funded Status | ' | |||||||||||||||
The funded status of our foreign defined benefit pension plans is presented in the table below. | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
2012 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
Change in PBO: | ||||||||||||||||
Balance at beginning of the year | $ | 469.7 | $ | 591.5 | ||||||||||||
Service cost | 10.4 | 13.1 | ||||||||||||||
Interest cost | 22.8 | 21.6 | ||||||||||||||
Participants’ contributions | 1.8 | 1.9 | ||||||||||||||
Actuarial loss (gain) | 95.9 | (2.5 | ) | |||||||||||||
Change in currency exchange rates | 15.3 | 4.6 | ||||||||||||||
Benefits paid | (24.4 | ) | (25.3 | ) | ||||||||||||
Balance at end of the year | $ | 591.5 | $ | 604.9 | ||||||||||||
Change in plan assets: | ||||||||||||||||
Fair value at beginning of the year | $ | 343.7 | $ | 409.9 | ||||||||||||
Actual return on plan assets | 49 | 28.5 | ||||||||||||||
Employer contributions | 28.2 | 27.3 | ||||||||||||||
Participants’ contributions | 1.8 | 1.9 | ||||||||||||||
Change in currency exchange rates | 11.6 | (.7 | ) | |||||||||||||
Benefits paid | (24.4 | ) | (25.3 | ) | ||||||||||||
Fair value at end of year | $ | 409.9 | $ | 441.6 | ||||||||||||
Funded status | $ | (181.6 | ) | $ | (163.3 | ) | ||||||||||
Amounts recognized in the Consolidated Balance Sheets: | ||||||||||||||||
Pension asset | $ | 5.1 | $ | 0.6 | ||||||||||||
Accrued pension costs: | ||||||||||||||||
Current | (1.9 | ) | (1.4 | ) | ||||||||||||
Noncurrent | (184.8 | ) | (162.5 | ) | ||||||||||||
Total | (181.6 | ) | (163.3 | ) | ||||||||||||
Accumulated other comprehensive loss: | ||||||||||||||||
Actuarial loss | 190.8 | 160.8 | ||||||||||||||
Prior service cost | 5.4 | 2.8 | ||||||||||||||
Net transition obligations | 1.3 | — | ||||||||||||||
Total | 197.5 | 163.6 | ||||||||||||||
Total | $ | 15.9 | $ | 0.3 | ||||||||||||
ABO | $ | 545.9 | $ | 560 | ||||||||||||
Components of Net Periodic Defined Benefit Cost (Credit) | ' | |||||||||||||||
The components of our net periodic defined benefit pension benefit cost for our foreign plans are presented in the table below. The amounts shown below for the amortization of unrecognized prior service cost, net transition obligations and actuarial losses for 2011, 2012 and 2013 were recognized as components of our accumulated other comprehensive income (loss) at December 31, 2010, 2011 and 2012, respectively, net of deferred income taxes and noncontrolling interest. During 2011, certain eligible participants elected to take lump sum distributions upon their retirement, resulting in a nominal settlement charge in 2011. In December 2013, we amended one of our Canadian plans in which participation with respect to hourly workers was closed to new participants in December 2013, resulting in a $7.1 million curtailment charge for recognition of previously unamortized prior service cost and transition obligation and $.2 million for special termination benefits. | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||
(In millions) | ||||||||||||||||
Net periodic pension cost for foreign plans: | ||||||||||||||||
Service cost | $ | 11.2 | $ | 10.4 | $ | 13.1 | ||||||||||
Interest cost | 24.1 | 22.8 | 21.6 | |||||||||||||
Settlement loss | 0.5 | — | — | |||||||||||||
Curtailment loss | — | — | 7.3 | |||||||||||||
Expected return on plan assets | (18.0 | ) | (17.4 | ) | (18.9 | ) | ||||||||||
Amortization of unrecognized: | ||||||||||||||||
Prior service cost | 1.2 | 1.1 | 1.1 | |||||||||||||
Net transition obligations | 0.5 | 0.4 | 0.4 | |||||||||||||
Net actuarial loss | 6.8 | 8 | 12.5 | |||||||||||||
Total | $ | 26.3 | $ | 25.3 | $ | 37.1 | ||||||||||
Schedule of Plans for which Accumulated Benefit Obligations Exceeds Plan Assets | ' | |||||||||||||||
Certain information concerning our foreign defined benefit pension plans is presented in the table below. | ||||||||||||||||
December 31, | ||||||||||||||||
2012 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
Plans for which the ABO exceeds plan assets: | ||||||||||||||||
Projected benefit obligations | $ | 529.4 | $ | 527 | ||||||||||||
Accumulated benefit obligations | 491.5 | 489.5 | ||||||||||||||
Fair value of plan assets | 342.7 | 364.2 | ||||||||||||||
Summary of Actuarial Assumptions Used to Determine the Benefit Obligation and Net Benefit Cost | ' | |||||||||||||||
A summary of our key actuarial assumptions used to determine foreign benefit obligations as of December 31, 2012 and 2013 was: | ||||||||||||||||
December 31, | ||||||||||||||||
Rate | 2012 | 2013 | ||||||||||||||
Discount rate | 3.70% | 3.80% | ||||||||||||||
Increase in future compensation levels | 3.10% | 2.70% | ||||||||||||||
Foreign Pension Plans, Defined Benefit, Foreign Net Periodic | ' | |||||||||||||||
Summary of Actuarial Assumptions Used to Determine the Benefit Obligation and Net Benefit Cost | ' | |||||||||||||||
A summary of our key actuarial assumptions used to determine foreign net periodic benefit cost for 2011, 2012 and 2013 are as follows: | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
Rate | 2011 | 2012 | 2013 | |||||||||||||
Discount rate | 5.10% | 4.90% | 3.70% | |||||||||||||
Increase in future compensation levels | 3.00% | 3.10% | 3.10% | |||||||||||||
Long-term return on plan assets | 5.50% | 5.20% | 5.00% | |||||||||||||
CMRT | ' | |||||||||||||||
Composition of Pension Plan Assets | ' | |||||||||||||||
The CMRT unit value is determined semi-monthly, and the plans have the ability to redeem all or any portion of their investment in the CMRT at any time based on the most recent semi-monthly valuation. However, the plans do not have the right to individual assets held by the CMRT and the CMRT has the sole discretion in determining how to meet any redemption request. For purposes of our plan asset disclosure, we consider the investment in the CMRT as a Level 2 input because (i) the CMRT value is established semi-monthly and the plans have the right to redeem their investment in the CMRT, in part or in whole, at anytime based on the most recent value and (ii) observable inputs from Level 1 or Level 2 were used to value approximately 83% of the assets of the CMRT at each of December 31, 2012 and 2013, as noted below. The aggregate fair value of all of the CMRT assets, including funds of Contran and its other affiliates that also invest in the CMRT, and supplemental asset mix details of the CMRT are as follows: | ||||||||||||||||
December 31, | ||||||||||||||||
2012 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
CMRT asset value | $ | 726.4 | $ | 722.8 | ||||||||||||
CMRT fair value input: | ||||||||||||||||
Level 1 | 82 | % | 79 | % | ||||||||||||
Level 2 | 1 | 4 | ||||||||||||||
Level 3 | 17 | 17 | ||||||||||||||
100 | % | 100 | % | |||||||||||||
CMRT asset mix: | ||||||||||||||||
Domestic equities, principally publicly traded | 43 | % | 53 | % | ||||||||||||
International equities, publicly traded | 2 | — | ||||||||||||||
Fixed income securities, publicly traded | 12 | 35 | ||||||||||||||
Privately managed limited partnerships | 8 | 11 | ||||||||||||||
Other, primarily cash | 35 | 1 | ||||||||||||||
100 | % | 100 | % | |||||||||||||
OPEB | ' | |||||||||||||||
Schedule of Defined Benefit Plan Expected Future Payments | ' | |||||||||||||||
Postretirement benefits other than pensions (OPEB). NL, Kronos and Tremont provide certain health care and life insurance benefits for their eligible retired employees. We have no OPEB plan assets, rather, we fund benefit payments as they are paid. At December 31, 2013, we expect to contribute the equivalent of approximately $1.5 million to all of our OPEB plans during 2014. Benefit payments to OPEB plan participants are expected to be the equivalent of: | ||||||||||||||||
2014 | $ | 1.5 million | ||||||||||||||
2015 | 1.4 million | |||||||||||||||
2016 | 1.3 million | |||||||||||||||
2017 | 1.2 million | |||||||||||||||
2018 | 1.1 million | |||||||||||||||
Next 5 years | 4.9 million | |||||||||||||||
Schedule of Funded Status | ' | |||||||||||||||
The funded status of our OPEB plans is presented in the table below. | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
2012 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
Actuarial present value of accumulated OPEB obligations: | ||||||||||||||||
Balance at beginning of the year | $ | 22.1 | $ | 22.7 | ||||||||||||
Service cost | 0.3 | 0.3 | ||||||||||||||
Interest cost | 0.8 | 0.7 | ||||||||||||||
Actuarial loss (gain) | 0.4 | (2.2 | ) | |||||||||||||
Plan amendment | — | (4.4 | ) | |||||||||||||
Curtailment | — | (.1 | ) | |||||||||||||
Change in currency exchange rates | 0.3 | (.8 | ) | |||||||||||||
Benefits paid from employer contributions | (1.2 | ) | (1.1 | ) | ||||||||||||
Balance at end of the year | $ | 22.7 | $ | 15.1 | ||||||||||||
Fair value of plan assets | — | — | ||||||||||||||
Funded status | $ | (22.7 | ) | $ | (15.1 | ) | ||||||||||
Accrued OPEB costs recognized in the Consolidated Balance Sheets: | ||||||||||||||||
Current | $ | (1.5 | ) | $ | (1.4 | ) | ||||||||||
Noncurrent | (21.2 | ) | (13.7 | ) | ||||||||||||
Total | (22.7 | ) | (15.1 | ) | ||||||||||||
Accumulated other comprehensive income (loss): | ||||||||||||||||
Net actuarial loss | 3.8 | 1.6 | ||||||||||||||
Prior service credit | (10.5 | ) | (12.6 | ) | ||||||||||||
Total | (6.7 | ) | (11.0 | ) | ||||||||||||
Total | $ | (29.4 | ) | $ | (26.1 | ) | ||||||||||
Components of Net Periodic Defined Benefit Cost (Credit) | ' | |||||||||||||||
The components of our periodic OPEB cost are presented in the table below. The amounts shown below for the amortization of unrecognized actuarial loss and prior service credit for 2011, 2012 and 2013 were recognized as components of our accumulated other comprehensive income (loss) at December 31, 2011, 2012 and 2013, respectively, net of deferred income taxes and noncontrolling interest. | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||
(In millions) | ||||||||||||||||
Net periodic OPEB cost (credit): | ||||||||||||||||
Service cost | $ | 0.2 | $ | 0.3 | $ | 0.3 | ||||||||||
Interest cost | 1 | 0.8 | 0.7 | |||||||||||||
Curtailment gain | — | — | (.6 | ) | ||||||||||||
Amortization of unrecognized prior service credit | (2.3 | ) | (1.8 | ) | (1.8 | ) | ||||||||||
Total | $ | (1.1 | ) | $ | (.7 | ) | $ | (1.4 | ) | |||||||
Summary of Actuarial Assumptions Used to Determine the Benefit Obligation and Net Benefit Cost | ' | |||||||||||||||
A summary of our key actuarial assumptions used to determine the net benefit obligations as of December 31, 2012 and 2013 follows: | ||||||||||||||||
December 31, | ||||||||||||||||
2012 | 2013 | |||||||||||||||
Healthcare inflation: | ||||||||||||||||
Initial rate | 7.00% | 7.00% | ||||||||||||||
Ultimate rate | 5.00% | 5.00% | ||||||||||||||
Year of ultimate rate achievement | 2018 | 2020 | ||||||||||||||
Discount rate | 3.47% | 4.00% | ||||||||||||||
Schedule of Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) | ' | |||||||||||||||
The amounts shown in the table above for unrecognized actuarial losses and prior service credit at December 31, 2012 and 2013 have not been recognized as components of our periodic OPEB cost as of those dates. These amounts will be recognized as components of our periodic OPEB cost in future years. These amounts, net of deferred income taxes and noncontrolling interest, are now recognized in our accumulated other comprehensive income (loss) at December 31, 2012 and 2013. We expect to recognize approximately $2.1 million of prior service credit as a component of our periodic OPEB cost in 2014. The table below details the changes in other comprehensive income (loss) during 2011, 2012 and 2013. In the fourth quarter of 2013, we amended the benefit formula for most Canadian participants of our plans effective January 1, 2014, resulting in a curtailment gain as of December 31, 2013. Key assumptions including the service cost and benefit duration at December 31, 2013 now reflect these plan revisions to the benefit formula. | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||
(In millions) | ||||||||||||||||
Changes in benefit obligations recognized in other | ||||||||||||||||
comprehensive income (loss): | ||||||||||||||||
Net actuarial gain (loss) arising during the year | $ | (.9 | ) | $ | (.4 | ) | $ | 2.2 | ||||||||
Plan amendments/curtailment | — | — | 4.5 | |||||||||||||
Amortization of unrecognized prior service credit | (2.3 | ) | (1.8 | ) | (2.4 | ) | ||||||||||
Total | $ | (3.2 | ) | $ | (2.2 | ) | $ | 4.3 | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Component of Income Taxes Expenses | ' | |||||||||||||||
Years ended December 31, | ||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||
(In millions) | ||||||||||||||||
Pre-tax income (loss) from continuing operations: | ||||||||||||||||
United States | $ | 51.6 | $ | 89 | $ | (70.4 | ) | |||||||||
Non-U.S. subsidiaries | 409.2 | 212.4 | (147.5 | ) | ||||||||||||
Total | $ | 460.8 | $ | 301.4 | $ | (217.9 | ) | |||||||||
Expected tax expense (benefit) at U.S. federal statutory income tax rate of 35% | $ | 161.3 | $ | 105.4 | $ | (76.3 | ) | |||||||||
Non-U.S. tax rates | (17.1 | ) | (11.9 | ) | 4.3 | |||||||||||
Incremental U.S. tax on earnings of non-U.S. and non-tax group companies | 28.8 | 1 | (18.5 | ) | ||||||||||||
U.S. state income taxes, net | 4 | 1.3 | (3.4 | ) | ||||||||||||
Adjustment to the reserve for uncertain tax positions, net | (8.5 | ) | 4.2 | 2.1 | ||||||||||||
Nondeductible expenses | 3.7 | 4.3 | 2.9 | |||||||||||||
Tax rate changes | (.1 | ) | 1.9 | (.2 | ) | |||||||||||
French dividend surtax | — | 0.3 | — | |||||||||||||
Other, net | (2.2 | ) | (1.7 | ) | (1.9 | ) | ||||||||||
Provision for income taxes (benefit) | $ | 169.9 | $ | 104.8 | $ | (91.0 | ) | |||||||||
Components of income tax expense (benefit): | ||||||||||||||||
Currently payable (refundable): | ||||||||||||||||
U.S. federal and state | $ | 8 | $ | 0.9 | $ | 9.1 | ||||||||||
Non-U.S. | 78.7 | 42.6 | (1.2 | ) | ||||||||||||
Total | 86.7 | 43.5 | 7.9 | |||||||||||||
Deferred income taxes (benefit): | ||||||||||||||||
U.S. federal and state | 28.6 | 34.5 | (57.9 | ) | ||||||||||||
Non-U.S. | 54.6 | 26.8 | (41.0 | ) | ||||||||||||
Total | 83.2 | 61.3 | (98.9 | ) | ||||||||||||
Provision for income taxes (benefit) | $ | 169.9 | $ | 104.8 | $ | (91.0 | ) | |||||||||
Comprehensive provision for income taxes (benefit) allocable to: | ||||||||||||||||
Income (loss) from continuing operations | $ | 169.9 | $ | 104.8 | $ | (91.0 | ) | |||||||||
Income from discontinued operations | 5 | 5.4 | — | |||||||||||||
Other comprehensive income (loss): | ||||||||||||||||
Marketable securities | 7.7 | (11.6 | ) | 5.1 | ||||||||||||
Currency translation | — | 4.9 | 5.5 | |||||||||||||
Pension plans | (6.5 | ) | (18.3 | ) | 14.1 | |||||||||||
OPEB plans | (1.0 | ) | (.7 | ) | 1 | |||||||||||
Total | $ | 175.1 | $ | 84.5 | $ | (65.3 | ) | |||||||||
Components of Net Deferred Tax Liability | ' | |||||||||||||||
The components of the net deferred tax liability at December 31, 2012 and 2013 are summarized below. | ||||||||||||||||
December 31, | ||||||||||||||||
2012 | 2013 | |||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||
(In millions) | ||||||||||||||||
Tax effect of temporary differences related to: | ||||||||||||||||
Inventories | $ | 3.6 | $ | (10.3 | ) | $ | 4.4 | $ | (2.6 | ) | ||||||
Marketable securities | — | (164.8 | ) | — | (145.8 | ) | ||||||||||
Property and equipment | — | (104.5 | ) | — | (115.8 | ) | ||||||||||
Accrued OPEB costs | 6.9 | — | 4.6 | — | ||||||||||||
Accrued pension costs | 33.3 | — | 21.8 | — | ||||||||||||
Accrued environmental liabilities | 16.9 | — | 40.1 | — | ||||||||||||
Other deductible differences | 26.2 | — | 58.8 | — | ||||||||||||
Other taxable differences | — | (30.3 | ) | — | (35.1 | ) | ||||||||||
Investments in subsidiaries and affiliates | — | (258.3 | ) | — | (280.6 | ) | ||||||||||
Tax on unremitted earnings of non-U.S. subsidiaries | — | (7.6 | ) | — | (2.6 | ) | ||||||||||
Tax loss and tax credit carryforwards | 153 | — | 191.8 | — | ||||||||||||
Valuation allowance | (.2 | ) | — | (.1 | ) | — | ||||||||||
Adjusted gross deferred tax assets (liabilities) | 239.7 | (575.8 | ) | 321.4 | (582.5 | ) | ||||||||||
Netting of items by tax jurisdiction | (109.8 | ) | 109.8 | (149.2 | ) | 149.2 | ||||||||||
129.9 | (466.0 | ) | 172.2 | (433.3 | ) | |||||||||||
Less net current deferred tax asset (liability) | 9.6 | (11.2 | ) | 23 | (2.2 | ) | ||||||||||
Net noncurrent deferred tax asset (liability) | $ | 120.3 | $ | (454.8 | ) | $ | 149.2 | $ | (431.1 | ) | ||||||
Changes in Uncertain Tax Positions | ' | |||||||||||||||
The following table shows the changes in the amount of our uncertain tax positions (exclusive of the effect of interest and penalties) during 2011, 2012 and 2013: | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||
(In millions) | ||||||||||||||||
Unrecognized tax benefits: | ||||||||||||||||
Amount beginning of year | $ | 37.4 | $ | 23 | $ | 33.4 | ||||||||||
Net increase: | ||||||||||||||||
Tax positions taken in prior periods | 0.5 | 1.1 | 0.5 | |||||||||||||
Tax positions taken in current period | 6 | 11 | 11.3 | |||||||||||||
Settlements with taxing authorities—cash paid | — | (.1 | ) | — | ||||||||||||
Lapse due to applicable statute of limitations | (20.6 | ) | (1.8 | ) | 3.4 | |||||||||||
Acquisition of BMI and Landwell | — | — | 0.1 | |||||||||||||
Changes in currency exchange rates | (.3 | ) | 0.2 | (.8 | ) | |||||||||||
Amount at end of year | $ | 23 | $ | 33.4 | $ | 47.9 | ||||||||||
Noncontrolling_Interest_in_Sub1
Noncontrolling Interest in Subsidiaries (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Noncontrolling Interest in Net Assets of Subsidiaries | ' | |||||||||||
December 31, | ||||||||||||
2012 | 2013 | |||||||||||
(In millions) | ||||||||||||
Noncontrolling interest in net assets: | ||||||||||||
Kronos Worldwide | $ | 267 | $ | 241.9 | ||||||||
NL Industries | 77.8 | 74.5 | ||||||||||
CompX International | 13.3 | 13.6 | ||||||||||
BMI | — | 33.7 | ||||||||||
Landwell | — | 27.8 | ||||||||||
Total | $ | 358.1 | $ | 391.5 | ||||||||
Noncontrolling Interest in Net Income (Loss) of Subsidiaries | ' | |||||||||||
Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Noncontrolling interest in net income (loss) of subsidiaries: | ||||||||||||
Kronos Worldwide | $ | 62.6 | $ | 42.6 | $ | (20.3 | ) | |||||
NL Industries | 13.9 | 15.2 | (9.4 | ) | ||||||||
CompX International | 1 | 4.5 | 0.8 | |||||||||
Total | $ | 77.5 | $ | 62.3 | $ | (28.9 | ) | |||||
Changes in Ownership Interest in Subsidiaries | ' | |||||||||||
Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Net income (loss) attributable to Valhi stockholders | $ | 217.5 | $ | 159.8 | $ | (98.0 | ) | |||||
Transfers from noncontrolling interest: | ||||||||||||
Issuance of subsidiary stock | 0.4 | 0.2 | (.4 | ) | ||||||||
Net income (loss) attributable to Valhi stockholders and change from noncontrolling interest in subsidiaries | $ | 217.9 | $ | 160 | $ | (98.4 | ) | |||||
Valhi_Stockholders_Equity_Tabl
Valhi Stockholder's Equity (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Schedule of Common Stock Outstanding | ' | |||||||||||
Shares of common stock | ||||||||||||
Issued | Treasury | Outstanding | ||||||||||
(In millions) | ||||||||||||
Balance at December 31, 2010 | 355.2 | (12.2 | ) | 341 | ||||||||
Acquired during 2011 | — | (1.0 | ) | (1.0 | ) | |||||||
Balance at December 31, 2012 and 2013 | 355.2 | (13.2 | ) | 342 | ||||||||
Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||
Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Accumulated other comprehensive income (loss) (net of tax and noncontrolling interest): | ||||||||||||
Marketable securities: | ||||||||||||
Balance at beginning of year | $ | 14.6 | $ | 6.4 | $ | 2.1 | ||||||
Other comprehensive income (loss): | ||||||||||||
Unrealized gain (loss) arising during the year | (8.2 | ) | 4.1 | — | ||||||||
Less reclassification adjustments for amounts included in realized loss (gain) | — | (8.4 | ) | 0.7 | ||||||||
Balance at end of year | $ | 6.4 | $ | 2.1 | $ | 2.8 | ||||||
Currency translation: | ||||||||||||
Balance at beginning of year | $ | 59.2 | $ | 37.5 | $ | 53.3 | ||||||
Other comprehensive income (loss): | ||||||||||||
Arising during the year | (21.7 | ) | 23 | 5.9 | ||||||||
Less reclassification adjustments for amounts included in gain on disposal | — | (7.2 | ) | — | ||||||||
Balance at end of year | $ | 37.5 | $ | 53.3 | $ | 59.2 | ||||||
Defined benefit pension plans: | ||||||||||||
Balance at beginning of year | $ | (59.8 | ) | $ | (72.6 | ) | $ | (101.5 | ) | |||
Other comprehensive income (loss): | ||||||||||||
Amortization of prior service cost and net losses included in net periodic pension cost | 4 | 6.1 | 8.4 | |||||||||
Net actuarial gain (loss) arising during year | (16.8 | ) | (35.0 | ) | 12.6 | |||||||
Plan curtailment | — | — | 4 | |||||||||
Balance at end of year | $ | (72.6 | ) | $ | (101.5 | ) | $ | (76.5 | ) | |||
OPEB plans: | ||||||||||||
Balance at beginning of year | $ | 7.2 | $ | 5.4 | $ | 4.1 | ||||||
Other comprehensive loss: | ||||||||||||
Amortization of prior service credit and net losses included in net periodic OPEB cost | (.5 | ) | (1.0 | ) | (1.4 | ) | ||||||
Net actuarial gain (loss) arising during year | (1.3 | ) | (.3 | ) | 1.3 | |||||||
Plan amendment | — | — | 2.5 | |||||||||
Balance at end of year | $ | 5.4 | $ | 4.1 | $ | 6.5 | ||||||
Total accumulated other comprehensive income (loss): | ||||||||||||
Balance at beginning of year | $ | 21.2 | $ | (23.3 | ) | $ | (42.0 | ) | ||||
Other comprehensive income (loss) | (44.5 | ) | (18.7 | ) | 34 | |||||||
Balance at end of year | $ | (23.3 | ) | $ | (42.0 | ) | $ | (8.0 | ) | |||
Other_Income_Net_Tables
Other Income, Net (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Schedule of Components of Other Income | ' | |||||||||||
Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Securities earnings: | ||||||||||||
Dividends and interest | $ | 29.2 | $ | 28.4 | $ | 26.4 | ||||||
Securities transactions, net | (.6 | ) | 21.8 | 0.2 | ||||||||
Total | 28.6 | 50.2 | 26.6 | |||||||||
Equity in earnings | (.5 | ) | (.2 | ) | 0.5 | |||||||
Insurance recoveries | 16.9 | 3.3 | 9.4 | |||||||||
Currency transactions, net | 3 | (1.0 | ) | (3.8 | ) | |||||||
Disposal of property and equipment, net | (.9 | ) | 1.5 | (.5 | ) | |||||||
Gain on bargain purchase and remeasurement of | — | — | 54.6 | |||||||||
our existing investment in acquiree | ||||||||||||
Litigation settlement gains | — | 14.7 | — | |||||||||
Other, net | 1.9 | 2.1 | 1.2 | |||||||||
Total | $ | 49 | $ | 70.6 | $ | 88 | ||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Receivables from and Payables to Affiliates | ' | |||||||
Receivables from and payables to affiliates are summarized in the table below. | ||||||||
December 31, | ||||||||
2012 | 2013 | |||||||
(In millions) | ||||||||
Current receivables from affiliates: | ||||||||
Louisiana Pigment Company, L.P., net | $ | — | $ | 14.2 | ||||
Contran—trade items | 0.3 | 0.5 | ||||||
Total | $ | 0.3 | $ | 14.7 | ||||
Current payables to affiliates: | ||||||||
Louisiana Pigment Company, L.P. | $ | 23.4 | $ | 21.1 | ||||
Contran: | ||||||||
Income taxes, net | 2.6 | 4.3 | ||||||
Trade items | 26.8 | 26.1 | ||||||
Total | $ | 52.8 | $ | 51.5 | ||||
Payable to affiliate included in long-term debt: | ||||||||
Valhi—Contran credit facility | $ | 157.6 | $ | 206.5 | ||||
Kronos— note payable to Contran | — | 170 | ||||||
Total | $ | 157.6 | $ | 376.5 | ||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Change in Accrued Environmental Remediation and Related Costs | ' | |||||||||||
The table below presents a summary of the activity in our accrued environmental costs during the past three years. The amount charged to expense is included in corporate expense on our Consolidated Statements of Operations. | ||||||||||||
Years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
(In millions) | ||||||||||||
Balance at the beginning of the year | $ | 42.3 | $ | 43.2 | $ | 50.2 | ||||||
Additions charged to expense, net | 11.3 | 15 | 69 | |||||||||
Acquired | — | — | 7 | |||||||||
Payments, net | (10.4 | ) | (8.1 | ) | (3.4 | ) | ||||||
Changes in currency exchange rates | — | 0.1 | (.1 | ) | ||||||||
Balance at the end of the year | $ | 43.2 | $ | 50.2 | $ | 122.7 | ||||||
Amounts recognized in our Consolidated Balance Sheet at the end of the year: | ||||||||||||
Current liabilities | $ | 8.6 | $ | 7.6 | $ | 9.1 | ||||||
Noncurrent liabilities | 34.6 | 42.6 | 113.6 | |||||||||
Total | $ | 43.2 | $ | 50.2 | $ | 122.7 | ||||||
Approximate Percentage of TiO2 Sales by Volume for Segments | ' | |||||||||||
Concentrations of credit risk—Sales of TiO2 accounted for approximately 92% of our Chemicals Segment’s sales in 2011, and 90% in each of 2012 and 2013. The remaining sales result from the mining and sale of ilmenite ore (a raw material used in the sulfate pigment production process), and the manufacture and sale of iron-based water treatment chemicals and certain titanium chemical products (derived from co-products of the TiO2 production processes). TiO2 is generally sold to the paint, plastics and paper industries. Such markets are generally considered “quality-of-life” markets whose demand for TiO2 is influenced by the relative economic well-being of the various geographic regions. Our Chemicals Segment sells TiO2 to over 4,000 customers, with the top ten customers approximating 30% of net sales in 2011, 34% in each of 2012 and 2013. We did not have sales to a single customer comprising 10% or more of our net sales in 2011. In each of 2012 and 2013, one customer, Behr Process Corporation, accounted for approximately 10% of our Chemicals Segment’s net sales. The table below shows the approximate percentage of our TiO2 sales by volume for our significant markets, Europe and North America, for the last three years. | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Europe | 53% | 47% | 49% | |||||||||
North America | 32% | 35% | 33% | |||||||||
Future Minimum Payments Under Noncancellable Operating Leases | ' | |||||||||||
We also lease various other manufacturing facilities and equipment. Some of the leases contain purchase and/or various term renewal options at fair market and fair rental values, respectively. In most cases we expect that, in the normal course of business, such leases will be renewed or replaced by other leases. Net rent expense attributable to continuing operations approximated $13.3 million in 2011, $16.3 million in 2012 and $15.8 million in 2013. At December 31, 2013, future minimum payments under non-cancellable operating leases having an initial or remaining term of more than one year were as follows: | ||||||||||||
Years ending December 31, | Amount | |||||||||||
(In millions) | ||||||||||||
2014 | $ | 12.5 | ||||||||||
2015 | 10.4 | |||||||||||
2016 | 5.1 | |||||||||||
2017 | 3.6 | |||||||||||
2018 | 3.2 | |||||||||||
2019 and thereafter | 23.4 | |||||||||||
Total(1) | $ | 58.2 | ||||||||||
-1 | Approximately $18 million of the $58.2 million aggregate future minimum rental commitments at December 31, 2013 relates to Kronos’ Leverkusen facility lease discussed above. The minimum commitment amounts for such lease included in the table above for each year through the 2050 expiration of the lease are based upon the current annual rental rate as of December 31, 2013. As discussed above, any change in the rent is based solely on negotiations between Bayer and Kronos, and any such change in the rent is deemed “contingent rentals” under GAAP which is excluded from the future minimum lease payments disclosed above. |
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Measurements of Financial Instruments | ' | |||||||||||||||
The following table summarizes the valuation of our short-term investments and financial instruments by the ASC Topic 820 categories as of December 31, 2012 and 2013: | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
Total | Quoted | Significant | Significant | |||||||||||||
Prices in | Other | Unobservable | ||||||||||||||
Active | Observable | Inputs | ||||||||||||||
Markets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(In millions) | ||||||||||||||||
Asset (liability) | ||||||||||||||||
December 31, 2012: | ||||||||||||||||
Marketable securities: | ||||||||||||||||
Current | $ | 0.9 | $ | — | $ | 0.9 | $ | — | ||||||||
Noncurrent | 256.8 | 3.5 | 3.3 | 250 | ||||||||||||
Currency forward contracts | 1.8 | 1.8 | — | — | ||||||||||||
December 31, 2013: | ||||||||||||||||
Marketable securities: | ||||||||||||||||
Current | $ | 3.8 | $ | 2.4 | $ | 1.4 | $ | — | ||||||||
Noncurrent | 253.3 | 1.4 | 1.9 | 250 | ||||||||||||
Currency forward contracts | (1.0 | ) | (1.0 | ) | — | — | ||||||||||
Financial Instruments not Carried at Fair Value | ' | |||||||||||||||
The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure as of December 31, 2012 and 2013: | ||||||||||||||||
December 31, | ||||||||||||||||
2012 | 2013 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
amount | value | amount | value | |||||||||||||
(In millions) | ||||||||||||||||
Cash, cash equivalents and restricted cash equivalents | $ | 395.9 | $ | 395.9 | $ | 186.8 | $ | 186.8 | ||||||||
Deferred payment obligation | — | — | 8.2 | 8.2 | ||||||||||||
Long-term debt (excluding capitalized leases): | ||||||||||||||||
Kronos note payable to Contran | $ | — | $ | — | $ | 170 | $ | 170 | ||||||||
Kronos term loan | 384.5 | 396.8 | — | — | ||||||||||||
Snake River Sugar Company fixed rate loans | 250 | 250 | 250 | 250 | ||||||||||||
WCS fixed rate debt | 77.1 | 77.1 | 72.4 | 72.4 | ||||||||||||
Valhi Contran credit facility | 157.6 | 157.6 | 206.5 | 206.5 | ||||||||||||
Kronos variable rate bank credit facilities | 13.2 | 13.2 | 11.1 | 11.1 | ||||||||||||
CompX variable rate promissory note | 18.5 | 18.5 | — | — | ||||||||||||
Tremont promissory note | — | — | 19.1 | 19.1 | ||||||||||||
BMI bank note payable | — | — | 11.2 | 11.2 | ||||||||||||
Landwell note payable to the City of Henderson | — | — | 3.1 | 3.1 | ||||||||||||
Noncontrolling interest in: | ||||||||||||||||
Kronos common stock | $ | 267 | $ | 442.6 | $ | 241.9 | $ | 431.6 | ||||||||
NL common stock | 77.8 | 94.8 | 74.5 | 92.6 | ||||||||||||
CompX common stock | 13.3 | 23.4 | 13.6 | 23.1 | ||||||||||||
Valhi stockholders’ equity | $ | 733.6 | $ | 4,238.90 | $ | 601.3 | $ | 5,961.70 | ||||||||
Quarterly_Results_of_Operation1
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Schedule of Quarterly Results of Operations | ' | |||||||||||||||
Quarter ended | ||||||||||||||||
March 31 | June 30 | Sept. 30 | Dec. 31 | |||||||||||||
(In millions, except per share data) | ||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||
Net sales | $ | 582.8 | $ | 568.4 | $ | 508.7 | $ | 427.4 | ||||||||
Gross margin | 260.4 | 162.1 | 97.4 | 55.3 | ||||||||||||
Operating income (loss) | 203.3 | 103.2 | 41.1 | (2.2 | ) | |||||||||||
Net income | $ | 119.6 | $ | 61.5 | $ | 31.8 | $ | 9.2 | ||||||||
Amounts attributable to Valhi stockholders: | ||||||||||||||||
Income (loss) from continuing operations | $ | 88.5 | $ | 43.7 | $ | 21.8 | $ | (12.6 | ) | |||||||
Income from discontinued operations | 0.5 | 0.6 | 1.2 | 16.1 | ||||||||||||
Net income(1) | $ | 89 | $ | 44.3 | $ | 23 | $ | 3.5 | ||||||||
Earnings per share: | ||||||||||||||||
Income (loss) from continuing operations | $ | 0.26 | $ | 0.13 | $ | 0.06 | $ | (.04 | ) | |||||||
Income from discontinued operations | — | — | 0.01 | 0.05 | ||||||||||||
Net income | $ | 0.26 | $ | 0.13 | $ | 0.07 | $ | 0.01 | ||||||||
Year ended December 31, 2013 | ||||||||||||||||
Net sales | $ | 499.2 | $ | 516.1 | $ | 448.2 | $ | 400.1 | ||||||||
Gross margin | 12.9 | 17.2 | 48.6 | 55.5 | ||||||||||||
Operating income (loss) | (45.2 | ) | (46.8 | ) | (42.5 | ) | (4.2 | ) | ||||||||
Net income (loss) | $ | (48.2 | ) | $ | (48.6 | ) | $ | (40.9 | ) | $ | 10.8 | |||||
Amounts attributable to Valhi stockholders: | ||||||||||||||||
Net income (loss)(2) | $ | (39.8 | ) | $ | (39.7 | ) | $ | (34.2 | ) | $ | 15.7 | |||||
Earnings per share: | ||||||||||||||||
Net income (loss) | $ | (.12 | ) | $ | (.12 | ) | $ | (.10 | ) | $ | 0.05 | |||||
-1 | We recognized the following amounts during 2012: | |||||||||||||||
· | a $3.7 million after-tax and noncontrolling interest loss on the prepayment of debt in the second quarter, see Note 9; | |||||||||||||||
· | a $7.8 million after-tax and noncontrolling interest real-estate related litigation settlement gain in the second quarter, see Note 15; | |||||||||||||||
· | a $13.2 million after-tax and noncontrolling interest securities transaction gain in the fourth quarter, see Note 4; | |||||||||||||||
· | a $5.3 million net of noncontrolling interest charge in the fourth quarter for a goodwill impairment, see Note 8; | |||||||||||||||
· | an $.8 million after-tax and noncontrolling interest charge in the primarily in the fourth quarter as a result of an asset held for sale write-down, see Note 7; | |||||||||||||||
· | an $1.7 million after-tax and noncontrolling interest gain on sale of excess property in the fourth quarter, see Note 15; and | |||||||||||||||
· | an incremental tax charge of $6.1 million (net of noncontrolling interest) in the fourth quarter as a result of a change in circumstances related to our sale of TIMET common stock, which sale provided an opportunity for us to elect to claim foreign tax credits, we determined that we could tax-efficiently remit non-cash dividends from our non-U.S. jurisdictions before the end of the year that absent the TIMET sale would not have been considered. Our provision for income taxes recognized in the fourth quarter also includes a $2.1 million expense (net of noncontrolling interest) related to an increase in our reserve for uncertain tax positions. In addition, an aggregate $2.7 million (net of noncontrolling interest) of such fourth quarter 2012 provision for income taxes is a correction of amounts that should have been recognized in the third quarter of 2011 and is not material to any current or prior periods. | |||||||||||||||
-2 | We recognized the following amounts during 2013: | |||||||||||||||
· | a $3.4 million after-tax and noncontrolling interest charge related to the February voluntary prepayment of an aggregate $290 million principal amount of Kronos’ term loan in the first quarter; see Note 9; | |||||||||||||||
· | a $17.9 million after-tax and noncontrolling interest litigation settlement charge included in operating income in the third quarter; see Note 17; | |||||||||||||||
· | a $1.2 million after-tax and noncontrolling interest charge related to the July voluntary prepayment of the remaining $100 million principal amount of Kronos’ term loan in the third quarter; see Note 9; | |||||||||||||||
· | pre-tax charges aggregating approximately $28 million consisting of unabsorbed fixed production and other costs as a result of Kronos’ Canadian plant lockout in the third and fourth quarters of approximately $19 million, $7 million as a result of the pension curtailment charge discussed in Note 11, and $2 million for severance and other back-to-work expenses associated with reaching terms of the new Canadian collective bargaining agreement. Approximately $7 million of the costs (primarily related to unabsorbed fixed production costs) related to the third quarter of 2013 with the remaining costs recognized in the fourth quarter of 2013; | |||||||||||||||
· | aggregate insurance recoveries of $4.7 million, after-tax and noncontrolling interest in the fourth quarter; and | |||||||||||||||
· | a $46.6 million after-tax gain on bargain purchase and remeasurement of existing investment related to our acquisition of a controlling interest in BMI and Landwell; see Notes 3 and 12. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 28, 2014 | Feb. 28, 2014 |
Chemical Segment | Chemical Segment | Chemical Segment | Minimum | Contran | Contran | Contran | Contran | Contran | ||||
Subsequent Event | Subsequent Event | |||||||||||
Minimum | ||||||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Controlling interest in subsidiary | ' | ' | ' | ' | ' | ' | ' | 94.00% | ' | ' | ' | ' |
Common stock, voting rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The voting agreement expires in February 2017 (unless Ms. Lisa Simmons, Ms. Connelly and Ms. Annette Simmons otherwise mutually agree), and the ability of Ms. Lisa Simmons, Ms. Connelly, and Ms. Annette Simmons to each designate one member of the Contran board is dependent upon each of their continued beneficial ownership of at least 5% of the combined voting stock of Contran. | ' |
Voting agreement expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2017-02 | ' |
Percentage of voting stock ownership required to designate a board member | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% |
Percentage of investment required to report under equity method investment | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' |
Capitalized interest cost on property and equipment | $1.60 | $1.70 | $3.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash payments received from/paid to tax group parent | ' | ' | ' | ' | ' | ' | ' | 6.5 | 6 | 10.3 | ' | ' |
Earnings of foreign subsidiaries subject to permanent reinvestment plan | 900 | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of likelihood for recognition of uncertain tax positions | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shipping and handling costs | ' | ' | ' | 93 | 89 | 93 | ' | ' | ' | ' | ' | ' |
Advertising costs | 2 | 1 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research, development and certain sales technical support costs | $18 | $19 | $20 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Computation of Depreciation of Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Buildings and improvements | Minimum | ' |
Interest Cost Capitalized And Depreciation And Amortization Expenses For Property Plant And Equipment [Line Items] | ' |
Property and equipment useful life | '10 years |
Buildings and improvements | Maximum | ' |
Interest Cost Capitalized And Depreciation And Amortization Expenses For Property Plant And Equipment [Line Items] | ' |
Property and equipment useful life | '40 years |
Machinery and equipment | Minimum | ' |
Interest Cost Capitalized And Depreciation And Amortization Expenses For Property Plant And Equipment [Line Items] | ' |
Property and equipment useful life | '3 years |
Machinery and equipment | Maximum | ' |
Interest Cost Capitalized And Depreciation And Amortization Expenses For Property Plant And Equipment [Line Items] | ' |
Property and equipment useful life | '20 years |
Mine development costs | ' |
Interest Cost Capitalized And Depreciation And Amortization Expenses For Property Plant And Equipment [Line Items] | ' |
Property and equipment useful life | 'Units-of-production |
Landfill disposal costs | ' |
Interest Cost Capitalized And Depreciation And Amortization Expenses For Property Plant And Equipment [Line Items] | ' |
Property and equipment useful life | 'Units-of-consumption |
Business_and_Geographic_Segmen2
Business and Geographic Segments - Holding Percentage of Subsidiaries (Detail) | Dec. 31, 2013 |
Kronos Worldwide, Inc. | ' |
Segment Reporting Information [Line Items] | ' |
Controlling interest in business segments | 80.00% |
CompX | ' |
Segment Reporting Information [Line Items] | ' |
Controlling interest in business segments | 87.00% |
WCS | ' |
Segment Reporting Information [Line Items] | ' |
Controlling interest in business segments | 100.00% |
Business_and_Geographic_Segmen3
Business and Geographic Segments - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Kronos Worldwide, Inc. | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Direct controlling interest in subsidiary | 50.00% | ' |
Indirect controlling interest in subsidiary | 30.00% | ' |
Total controlling interest | 80.00% | ' |
NL | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total controlling interest | 83.00% | ' |
Corporate assets held by subsidiary | 10.00% | 15.00% |
Non-U.S. subsidiaries | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net assets of non-U.S. subsidiaries | 708 | 775 |
Business_and_Geographic_Segmen4
Business and Geographic Segments - Segment Operating Performance (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net sales | $400.10 | $448.20 | $516.10 | $499.20 | $427.40 | $508.70 | $568.40 | $582.80 | $1,863.60 | $2,087.30 | $2,025.10 | |||
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,729.40 | 1,512.10 | 1,278.40 | |||
Gross margin | 55.5 | 48.6 | 17.2 | 12.9 | 55.3 | 97.4 | 162.1 | 260.4 | 134.2 | 575.2 | 746.7 | |||
Operating income (loss) | -4.2 | -42.5 | -46.8 | -45.2 | -2.2 | 41.1 | 103.2 | 203.3 | -138.7 | 345.4 | 521.4 | |||
Equity in earnings of joint venture | ' | ' | ' | ' | ' | ' | ' | ' | 0.5 | -0.2 | -0.5 | |||
Securities earnings | ' | ' | ' | ' | ' | ' | ' | ' | 26.6 | 50.2 | 28.6 | |||
Insurance recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 9.4 | 3.3 | 16.9 | |||
Litigation settlement gain | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.7 | ' | |||
Gain on sale of excess property | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.2 | ' | |||
Goodwill impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | -6.4 | ' | |||
Gain on bargain purchase and remeasurement of existing investment in acquiree | ' | ' | ' | ' | ' | ' | ' | ' | 54.6 | ' | ' | |||
General expenses, net | ' | ' | ' | ' | ' | ' | ' | ' | -105.3 | -45.3 | -40.7 | |||
Loss on prepayment of debt, net | ' | ' | ' | ' | ' | ' | ' | ' | -8.9 | -7.2 | -3.1 | |||
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -56.1 | -56.3 | -61.8 | |||
Income (loss) from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -217.9 | 301.4 | 460.8 | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 74.5 | 69.4 | 63.8 | |||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 74.6 | 98.8 | 146.2 | |||
Chemicals | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,732.40 | 1,976.30 | 1,943.30 | |||
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,622.60 | 1,418.20 | 1,197.50 | |||
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | 109.8 | 558.1 | 745.8 | |||
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -125.4 | 366.8 | 553 | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 52.8 | 50.4 | 50.2 | |||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 67.6 | 74.9 | 68.6 | |||
Component products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 92 | 83.2 | 79.8 | |||
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 64.5 | 58.9 | 55.6 | |||
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | 27.5 | 24.3 | 24.2 | |||
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 9.3 | 5.4 | 6.4 | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 3.3 | [1] | 5.8 | [1] | 6.8 | [1] |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 3.5 | [1] | 4.3 | [1] | 3.2 | [1] |
Waste management | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 39.2 | 27.8 | 2 | |||
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 42.3 | 35 | 25.3 | |||
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | -3.1 | -7.2 | -23.3 | |||
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -22.6 | -26.8 | -38 | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 18.4 | 13.2 | 6.8 | |||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 3.5 | 19.6 | 74.3 | |||
Corporate segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Equity in earnings of joint venture | ' | ' | ' | ' | ' | ' | ' | ' | 0.5 | -0.2 | -0.5 | |||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | |||
[1] | Includes discontinued operations for 2011 and 2012, see Note 3. |
Business_and_Geographic_Segmen5
Business and Geographic Segments - Total Assets Held by Business Segments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
In Millions, unless otherwise specified | ||||||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total assets | $2,967.20 | $3,170.50 | $2,838 | |||
Chemicals | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total assets | 1,984.80 | 2,401.10 | 2,189.70 | |||
Component products | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total assets | 83.1 | [1] | 82.3 | [1] | 141.4 | [1] |
Waste management | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total assets | 270.1 | 265 | 223.4 | |||
Investment in Basic Management and The Landwell Company | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total assets | ' | 16.2 | 16.5 | |||
Corporate and eliminations | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total assets | $629.20 | $405.90 | $267 | |||
[1] | Includes discontinued operations for 2011, see Note 3. |
Business_and_Geographic_Segmen6
Business and Geographic Segments - Net Sales by Point of Origin and Point of Destination (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $400.10 | $448.20 | $516.10 | $499.20 | $427.40 | $508.70 | $568.40 | $582.80 | $1,863.60 | $2,087.30 | $2,025.10 |
Point Of Origin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,863.60 | 2,087.30 | 2,025.10 |
Point Of Destination | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,863.60 | 2,087.30 | 2,025.10 |
United States | Point Of Origin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 961.5 | 1,153.80 | 831.4 |
Germany | Point Of Origin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 915.8 | 977.7 | 1,039.70 |
Canada | Point Of Origin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 246.5 | 339.1 | 301.7 |
Norway | Point Of Origin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 261.3 | 284 | 245.1 |
Belgium | Point Of Origin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 254.6 | 272.9 | 301.8 |
Eliminations | Point Of Origin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | -776.1 | -940.2 | -694.6 |
North America | Point Of Destination | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 690.5 | 760.7 | 578.2 |
Europe | Point Of Destination | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 905 | 1,011.40 | 1,141.30 |
Asia and other | Point Of Destination | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | $268.10 | $315.20 | $305.60 |
Business_and_Geographic_Segmen7
Business and Geographic Segments - Net Property and Equipment by Segment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
In Millions, unless otherwise specified | ||||||
Net property and equipment: | ' | ' | ' | |||
Net property and equipment | $796.40 | $763.10 | $723.80 | |||
United States | ' | ' | ' | |||
Net property and equipment: | ' | ' | ' | |||
Net property and equipment | 232.8 | [1] | 211.9 | [1] | 189 | [1] |
Germany | ' | ' | ' | |||
Net property and equipment: | ' | ' | ' | |||
Net property and equipment | 292.9 | 271.2 | 259.6 | |||
Canada | ' | ' | ' | |||
Net property and equipment: | ' | ' | ' | |||
Net property and equipment | 67.1 | [1] | 73 | [1] | 80 | [1] |
Norway | ' | ' | ' | |||
Net property and equipment: | ' | ' | ' | |||
Net property and equipment | 100.9 | 109.5 | 101.5 | |||
Belgium | ' | ' | ' | |||
Net property and equipment: | ' | ' | ' | |||
Net property and equipment | 102.7 | 97.5 | 86 | |||
Taiwan | ' | ' | ' | |||
Net property and equipment: | ' | ' | ' | |||
Net property and equipment | ' | ' | $7.70 | [1] | ||
[1] | Includes discontinued operations for 2011, see Note 3. |
Business_Combinations_Disconti2
Business Combinations, Discontinued Operations and Related Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2010 | Nov. 30, 2013 | Nov. 30, 2010 | Nov. 30, 2013 | Nov. 30, 2013 |
Basic Management, Inc. | Landwell | Basic Management Inc And Landwell | Basic Management Inc And Landwell | Basic Management Inc And Landwell | Basic Management Inc And Landwell | Certain Real Property Litigation Settlement | General Partner | Aggregate General and Limited Interests | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | CompX | CompX | CompX | CompX | CompX | Entity One | Entity One | Nevada Environmental Response Trust | Nevada Environmental Response Trust | Nevada Environmental Response Trust | Nevada Environmental Response Trust | Entity Three | Entity Three | ||||||||||||
Promissory Note | Face value | Present Value | Basic Management Inc And Landwell | Landwell | Taiwan Land | Taiwan Land | Discontinued operations | Class A | Basic Management, Inc. | Landwell | Basic Management, Inc. | Basic Management, Inc. | Landwell | Landwell | Basic Management, Inc. | Landwell | ||||||||||||||||||||
Deferred payment | Deferred payment | |||||||||||||||||||||||||||||||||||
Business Combinations Discontinued Operations And Related Transactions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchased shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49,000 | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchased shares, value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares available for purchase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,950,000 | ' | ' | ' | ' | ' | ' | 678,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of Furniture Components segment | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 58 | 0.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 58 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale discontinued operations, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) per share | $0.05 | ($0.10) | ($0.12) | ($0.12) | $0.01 | $0.07 | $0.13 | $0.26 | ($0.29) | $0.47 | $0.64 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.05 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification out of AOCI, foreign currency translation adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statutory income tax rate of foreign tax credit | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Promissory note receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash collected on notes receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32.00% | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling interest, ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32.00% | 21.00% | 31.00% | 31.00% | 15.00% | 15.00% | 5.00% | 2.00% |
Controlling interest in subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 63.00% | 27.00% | ' | ' | ' | ' | ' | 50.00% | 77.00% | 80.00% | ' | ' | 87.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, percentage of voting interests acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31.00% | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value of consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of consideration, cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business combination consideration transferred, liabilities incurred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19.1 | 11.1 | 8.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest on promissory note and deferred payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recognized pre-tax gain on business combination | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition estimated fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition at carrying value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bargain purchase gain recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option to acquire four parcels of real property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8.50 | ' | ' | ' | $14.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business_Combinations_Disconti3
Business Combinations, Discontinued Operations and Related Transactions - Summary of Operations of Disposed Furniture Components Business (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
Business Combinations Discontinued Operations And Related Transactions [Line Items] | ' | ' | ' | ' | ' | ' |
Gain on sale | ' | ' | ' | ' | $23.70 | ' |
Total discontinued operations, net of tax | ' | ' | ' | ' | 25.5 | 4.1 |
Total discontinued operations, net of tax and noncontrolling interest | 16.1 | 1.2 | 0.6 | 0.5 | 18.4 | 3 |
Compx Furniture Components | ' | ' | ' | ' | ' | ' |
Business Combinations Discontinued Operations And Related Transactions [Line Items] | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | 60.7 | 59 |
Operating income | ' | ' | ' | ' | 7.4 | 9.1 |
Income before taxes | ' | ' | ' | ' | 7.2 | 9.1 |
Income tax expense | ' | ' | ' | ' | 3.5 | 5 |
Income from discontinued operations, net of tax | ' | ' | ' | ' | 3.7 | 4.1 |
Gain on sale | ' | ' | ' | ' | 23.7 | ' |
Income tax expense | ' | ' | ' | ' | 1.9 | ' |
Gain on sale discontinued operations, net of tax | ' | ' | ' | ' | 21.8 | ' |
Total discontinued operations, net of tax | ' | ' | ' | ' | 25.5 | 4.1 |
Noncontrolling interest in gain on sale of discontinued operations | ' | ' | ' | ' | 7.1 | 1.1 |
Total discontinued operations, net of tax and noncontrolling interest | ' | ' | ' | ' | 18.4 | 3 |
Compx Furniture Components | Discontinued operations | ' | ' | ' | ' | ' | ' |
Business Combinations Discontinued Operations And Related Transactions [Line Items] | ' | ' | ' | ' | ' | ' |
Total discontinued operations, net of tax | ' | ' | ' | ' | 1 | 1.1 |
Compx Furniture Components | Gain on sale of discontinued operations | ' | ' | ' | ' | ' | ' |
Business Combinations Discontinued Operations And Related Transactions [Line Items] | ' | ' | ' | ' | ' | ' |
Noncontrolling interest in gain on sale of discontinued operations | ' | ' | ' | ' | $6.10 | ' |
Business_Combinations_Disconti4
Business Combinations, Discontinued Operations and Related Transactions - Recognition Based on Preliminary Analysis of Provisional Amounts (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Land held for development: | ' |
Current | $14.30 |
Noncurrent | 158.1 |
Basic Management Inc And Landwell | ' |
Consideration: | ' |
Cash | 5.3 |
Total fair value of consideration | 32.6 |
Fair value of existing equity interest in BMI and Landwell | 43.4 |
Bargain purchase gain recognized | 28 |
Preliminary total | 104 |
Preliminary allocation of purchase price to identifiable assets acquired and liabilities assumed: | ' |
Cash | 27.4 |
Land held for development: | ' |
Current | 14.3 |
Noncurrent | 158.1 |
Other current assets | 9.4 |
Property, plant and equipment | 29 |
Other noncurrent assets | 8.5 |
Long-term debt | -14.3 |
Other liabilities | -66.9 |
Total net identifiable assets | 165.5 |
Noncontrolling interest in BMI and Landwell | -61.5 |
Preliminary total | 104 |
Basic Management Inc And Landwell | Promissory note | ' |
Consideration: | ' |
Promissory note payable | 19.1 |
Basic Management Inc And Landwell | Deferred payment | Present Value | ' |
Consideration: | ' |
Promissory note payable | $8.20 |
Business_Combinations_Disconti5
Business Combinations, Discontinued Operations and Related Transactions - Recognition Based on Preliminary Analysis of Provisional Amounts (Parenthetical) (Detail) (Deferred payment, Basic Management Inc And Landwell, Face value, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Deferred payment | Basic Management Inc And Landwell | Face value | ' |
Business Combinations Discontinued Operations And Related Transactions [Line Items] | ' |
Promissory note payable | $11.10 |
Marketable_Securities_Schedule
Marketable Securities - Schedule of Marketable Securities (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Market value | $3.80 | $0.90 |
Market value | 253.3 | 256.8 |
Current assets | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Market value | 3.8 | 0.9 |
Cost basis | 3.8 | 0.9 |
Unrealized gains, net | ' | ' |
Noncurrent assets | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Market value | 253.3 | 256.8 |
Cost basis | 253.3 | 256.7 |
Unrealized gains, net | ' | 0.1 |
Noncurrent assets | Other | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Market value | 3.3 | 6.8 |
Cost basis | 3.3 | 6.7 |
Unrealized gains, net | ' | 0.1 |
Amalgamated Sugar Company LLC | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Market value | 250 | 250 |
Amalgamated Sugar Company LLC | Noncurrent assets | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Market value | 250 | 250 |
Cost basis | 250 | 250 |
Unrealized gains, net | ' | ' |
Marketable_Securities_Schedule1
Marketable Securities - Schedule of Marketable Securities and Fair Value Measurements (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | $3.80 | $0.90 |
Marketable securities | 253.3 | 256.8 |
Fixed income securities | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 1.9 | ' |
Mutual funds and other common stocks | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 1.4 | 6.8 |
Level 1 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 2.4 | ' |
Marketable securities | 1.4 | 3.5 |
Level 1 | Fixed income securities | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | ' | ' |
Level 1 | Mutual funds and other common stocks | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 1.4 | 3.5 |
Level 2 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 1.4 | 0.9 |
Marketable securities | 1.9 | 3.3 |
Level 2 | Fixed income securities | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 1.9 | ' |
Level 2 | Mutual funds and other common stocks | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | ' | 3.3 |
Level 3 Inputs | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | ' | ' |
Marketable securities | 250 | 250 |
Level 3 Inputs | Fixed income securities | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | ' | ' |
Level 3 Inputs | Mutual funds and other common stocks | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | ' | ' |
Amalgamated Sugar Company LLC | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 250 | 250 |
Amalgamated Sugar Company LLC | Level 1 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | ' | ' |
Amalgamated Sugar Company LLC | Level 2 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | ' | ' |
Amalgamated Sugar Company LLC | Level 3 Inputs | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | $250 | $250 |
Marketable_Securities_Addition
Marketable Securities - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Amalgamated Sugar Company LLC | ' |
Schedule Of Available For Sale Securities [Line Items] | ' |
Net of assets transferred to the LLC | $34 |
Fair value on investment in the LLC redemption price | 250 |
Cost of the investment in LLC | 250 |
Percentage of share from profit of LLC | 95.00% |
Additional preferential share receivable in case distributions are below this base level | 95.00% |
Amalgamated Sugar Company LLC | Base Level | ' |
Schedule Of Available For Sale Securities [Line Items] | ' |
Distributions from LLC - aggregate annual base level | 26.7 |
Snake River | ' |
Schedule Of Available For Sale Securities [Line Items] | ' |
Loan issued by Snake River | 250 |
Snake River | Amalgamated Sugar Company LLC | ' |
Schedule Of Available For Sale Securities [Line Items] | ' |
Minimum amount annual distributions received from Amalgamated Sugar LLC will exceed Snake River loan interest payments | $1.80 |
Accounts_and_Other_Receivables2
Accounts and Other Receivables, Net - Components of Accounts and Other Receivables (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Trade accounts receivable: | ' | ' |
VAT and other receivables | $32.70 | $42.20 |
Allowance for doubtful accounts | -1.3 | -1.5 |
Total | 273.4 | 283.9 |
Kronos Worldwide, Inc. | ' | ' |
Trade accounts receivable: | ' | ' |
Accounts receivable | 226.1 | 229.7 |
CompX | ' | ' |
Trade accounts receivable: | ' | ' |
Accounts receivable | 8.7 | 8.7 |
WCS | ' | ' |
Trade accounts receivable: | ' | ' |
Accounts receivable | $7.20 | $4.80 |
Inventories_Net_Inventories_Ne
Inventories, Net - Inventories, Net (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Components Of Inventory [Line Items] | ' | ' |
Raw materials | $70.20 | $154.80 |
Work in process | 24.7 | 33.2 |
Finished products | 266.3 | 397.7 |
Supplies (chemicals) | 69.4 | 64.6 |
Inventories, net | 430.6 | 650.3 |
Chemicals | ' | ' |
Components Of Inventory [Line Items] | ' | ' |
Raw materials | 66.6 | 151.5 |
Work in process | 18 | 27.3 |
Finished products | 263.3 | 395.6 |
Component Products | ' | ' |
Components Of Inventory [Line Items] | ' | ' |
Raw materials | 3.6 | 3.3 |
Work in process | 6.7 | 5.9 |
Finished products | $3 | $2.10 |
Investment_in_Affiliates_and_O2
Investment in Affiliates and Other Assets - Investment in Affiliates and Other Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Investment in Basic Management and The Landwell Company | Investment in Basic Management and The Landwell Company | Basic Management Inc And Landwell | Basic Management Inc And Landwell | Capitalized Operating Permits | Capitalized Operating Permits | |||
Other Noncurrent Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in affiliates | $102,300,000 | $126,100,000 | $102,300,000 | $109,900,000 | $16,200,000 | ' | ' | ' |
Other assets: | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in undeveloped land and water rights | ' | ' | ' | ' | ' | 42,000,000 | ' | ' |
Land held for development | 158,100,000 | ' | ' | ' | ' | 12,700,000 | ' | ' |
Waste disposal site operating permits, net | 59,500,000 | 65,700,000 | ' | ' | ' | ' | 59,500,000 | 65,700,000 |
Restricted cash | 33,300,000 | 20,900,000 | ' | ' | ' | ' | ' | ' |
IBNR receivables | 6,900,000 | 6,700,000 | ' | ' | ' | ' | ' | ' |
Capital lease deposit | 6,200,000 | 6,200,000 | ' | ' | ' | ' | ' | ' |
Intangible assets | 5,200,000 | 200,000 | ' | ' | ' | ' | ' | ' |
Deferred financing costs | 2,600,000 | 7,000,000 | ' | ' | ' | ' | ' | ' |
Assets held for sale | 1,100,000 | 2,600,000 | ' | ' | ' | ' | ' | ' |
Other | 63,800,000 | 46,700,000 | ' | ' | ' | ' | ' | ' |
Total | $336,700,000 | $156,000,000 | ' | ' | ' | ' | ' | ' |
Investment_in_Affiliates_and_O3
Investment in Affiliates and Other Assets - Components of Net Distributions from LPC (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Summary Of Investment Holdings [Line Items] | ' | ' | ' |
Net distributions (contributions) | $10.90 | ($20.70) | $3.80 |
LPC | ' | ' | ' |
Summary Of Investment Holdings [Line Items] | ' | ' | ' |
Distributions from LPC | 70.7 | 79.5 | 29.7 |
Contributions to LPC | -59.8 | -100.2 | -25.9 |
Net distributions (contributions) | $10.90 | ($20.70) | $3.80 |
Investment_in_Affiliates_and_O4
Investment in Affiliates and Other Assets - Summary of Financial Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
LPC | LPC | LPC | LPC | LPC | LPC | LPC | LPC | LPC | Basic Management Inc And Landwell | Basic Management Inc And Landwell | Basic Management Inc And Landwell | ||||||||||||
Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Tioxide | Tioxide | Tioxide | ||||||||||||||||||
Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current assets | $949 | ' | ' | ' | $1,363.40 | ' | ' | ' | $949 | $1,363.40 | ' | $127.20 | $139.80 | ' | ' | ' | ' | ' | ' | ' | ' | $25.70 | ' |
Prepaid costs and other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.6 | ' |
Property and equipment, net | 796.4 | ' | ' | ' | 763.1 | ' | ' | ' | 796.4 | 763.1 | 723.8 | 114.1 | 126 | ' | ' | ' | ' | ' | ' | ' | ' | 6.4 | ' |
Investment in undeveloped land and water rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42 | ' |
Land held for development | 158.1 | ' | ' | ' | ' | ' | ' | ' | 158.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.7 | ' |
Total assets | 2,967.20 | ' | ' | ' | 3,170.50 | ' | ' | ' | 2,967.20 | 3,170.50 | 2,838 | 241.3 | 265.8 | ' | ' | ' | ' | ' | ' | ' | ' | 98.4 | ' |
Current liabilities | 394.7 | ' | ' | ' | 398.5 | ' | ' | ' | 394.7 | 398.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.2 | ' |
Long-term debt | 741.8 | ' | ' | ' | 880.5 | ' | ' | ' | 741.8 | 880.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.3 | ' |
Deferred income taxes | 431.1 | ' | ' | ' | 454.8 | ' | ' | ' | 431.1 | 454.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' |
Other liabilities | 110.2 | ' | ' | ' | 78.3 | ' | ' | ' | 110.2 | 78.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.4 | ' |
Equity | 601.3 | ' | ' | ' | 733.6 | ' | ' | ' | 601.3 | 733.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.5 | ' |
Other liabilities, primarily current | 51.3 | ' | ' | ' | 42.8 | ' | ' | ' | 51.3 | 42.8 | ' | 33.9 | 43.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Partners’ equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 207.4 | 222.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total liabilities and equity | 2,967.20 | ' | ' | ' | 3,170.50 | ' | ' | ' | 2,967.20 | 3,170.50 | ' | 241.3 | 265.8 | ' | ' | ' | ' | ' | ' | ' | ' | 98.4 | ' |
Net sales | 400.1 | 448.2 | 516.1 | 499.2 | 427.4 | 508.7 | 568.4 | 582.8 | 1,863.60 | 2,087.30 | 2,025.10 | 449.1 | 477.7 | 290.5 | 224.5 | 250.2 | 144.8 | 224.6 | 227.5 | 145.7 | 9.5 | 10.4 | 10 |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,729.40 | 1,512.10 | 1,278.40 | 448.7 | 477.3 | 290.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
General and administrative | ' | ' | ' | ' | ' | ' | ' | ' | 375.1 | 273.3 | 268.9 | 0.4 | 0.4 | 0.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total costs and expenses | ' | ' | ' | ' | ' | ' | ' | ' | 2,169.50 | 1,856.50 | 1,613.30 | 449.1 | 477.7 | 290.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 10.8 | -40.9 | -48.6 | -48.2 | 9.2 | 31.8 | 61.5 | 119.6 | -126.9 | 222.1 | 295 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3.7 | -1.4 | -2.1 |
Income (loss) from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ($217.90) | $301.40 | $460.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($3.90) | ($1.20) | ($2.70) |
Investment_in_Affiliates_and_O5
Investment in Affiliates and Other Assets - Components of Net Capitalized Permit Costs (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other Noncurrent Assets [Line Items] | ' | ' |
Net capitalized permit costs | $59.50 | $65.70 |
Pending Renewals Of Prior Permits | ' | ' |
Other Noncurrent Assets [Line Items] | ' | ' |
Net capitalized permit costs | ' | 0.2 |
LLRW License - (expires in 2024) | Permits Subject to Amortization | ' | ' |
Other Noncurrent Assets [Line Items] | ' | ' |
Net capitalized permit costs | 54 | 58.3 |
Byproduct License - (expires in 2018) | Permits Subject to Amortization | ' | ' |
Other Noncurrent Assets [Line Items] | ' | ' |
Net capitalized permit costs | 4.6 | 5.6 |
Other - (expires 2014 - 2024) | Permits Subject to Amortization | ' | ' |
Other Noncurrent Assets [Line Items] | ' | ' |
Net capitalized permit costs | $0.90 | $1.60 |
Investment_in_Affiliates_and_O6
Investment in Affiliates and Other Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Capitalized Operating Permit Costs | Capitalized Operating Permit Costs | Capitalized Operating Permit Costs | Capitalized Operating Permit Costs | Capitalized Operating Permit Costs | Basic Management, Inc. | Landwell | Basic Management Inc And Landwell | LPC | CompX | CompX | CompX | CompX | CompX | ||||||||||||
Permits Subject to Amortization | Permits Subject to Amortization | Permits Subject to Amortization | Facilities | ||||||||||||||||||||||
Other Assets Non Current [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of TiO2 from the plant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 52.00% | ' | ' | ' | ' | ' |
Equity ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32.00% | 12.00% | ' | ' | ' | ' | ' | ' | ' |
Direct controlling interest in subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' |
Net sales | $400.10 | $448.20 | $516.10 | $499.20 | $427.40 | $508.70 | $568.40 | $582.80 | $1,863.60 | $2,087.30 | $2,025.10 | ' | ' | ' | ' | ' | ' | ' | $15.90 | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -217.9 | 301.4 | 460.8 | ' | ' | ' | ' | ' | ' | ' | 6.9 | ' | ' | ' | ' | ' | ' |
Net income (loss) | 10.8 | -40.9 | -48.6 | -48.2 | 9.2 | 31.8 | 61.5 | 119.6 | -126.9 | 222.1 | 295 | ' | ' | ' | ' | ' | ' | ' | 5.3 | ' | ' | ' | ' | ' | ' |
Amortization of capitalized operating permit costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.5 | 4.9 | 1.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of capitalized operating permit, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of capitalized operating permit, 2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of capitalized operating permit, 2016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of capitalized operating permit, 2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of capitalized operating permit, 2018 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net of accumulated amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18.8 | 11.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of facilities held for sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 |
Assets held for sale write-down | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.2 | 1.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.4 | ' | ' | 1.1 |
Net proceeds of sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.6 | 3.6 | ' |
Loss on sale | ' | ' | ' | ' | ' | ' | ' | ' | ($0.50) | $1.50 | ($0.90) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.80 | ' | ' | ' | ' |
Goodwill_Changes_in_Carrying_A
Goodwill - Changes in Carrying Amount of Goodwill (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 |
Chemicals | Chemicals | Chemicals | Chemicals | Component Products | Component Products | Component Products | EWI | EWI | ||||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | $400.10 | $397.40 | $379.70 | $352.60 | $352.60 | $352.60 | $352.60 | $41.10 | $38.40 | $27.10 | $6.40 | $6.40 |
Changes in foreign exchange rates | 0.3 | -0.4 | ' | ' | ' | ' | ' | 0.3 | -0.4 | ' | ' | ' |
Goodwill acquired | ' | 3.1 | ' | ' | ' | ' | ' | ' | 3.1 | ' | ' | ' |
Ending Balance | 379.7 | 400.1 | 379.7 | 352.6 | 352.6 | 352.6 | 352.6 | 27.1 | 41.1 | 27.1 | ' | 6.4 |
Sale of discontinued operations | -14.3 | ' | ' | ' | ' | ' | ' | -14.3 | ' | ' | ' | ' |
Goodwill impairment | ($6.40) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($6.40) | ' |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2012 |
EWI | Component Products Segment | Compx Furniture Components | |||
Goodwill [Line Items] | ' | ' | ' | ' | ' |
Goodwill impairment | $6.40 | ' | $6.40 | $10.10 | ' |
Goodwill loss of discontinued operations | 14.3 | ' | ' | ' | 14.3 |
Consolidated gross goodwill | ' | $396.20 | ' | ' | ' |
LongTerm_Debt_LongTerm_Debt_De
Long-Term Debt - Long-Term Debt (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-12 |
In Millions, unless otherwise specified | Other Subsidiary Debt | Other Subsidiary Debt | Subsidiary Debt | Subsidiary Debt | VALHI, INC. | VALHI, INC. | VALHI, INC. | VALHI, INC. | VALHI, INC. | VALHI, INC. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | CompX | CompX | WCS | WCS | WCS | WCS | Tremont | Tremont | BMI | BMI | BMI | Landwell | Landwell | Landwell | ||
Snake River | Snake River | Contran | Contran | Note Payable | Note Payable | Term Loan | Term Loan | Revolving North American credit facility | Revolving North American credit facility | Revolving European credit facility | Revolving European credit facility | Timet Finance Management Company | Timet Finance Management Company | Promissory Notes | Promissory Notes | Promissory Notes | Promissory Notes | Bank note payable | Bank note payable | Bank note payable | Note payable to the City of Henderson | Note payable to the City of Henderson | Note payable to the City of Henderson | |||||||||||
Notes Payable, Other Payables | Notes Payable, Other Payables | Contran | Contran | |||||||||||||||||||||||||||||||
Long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument | ' | ' | ' | ' | ' | ' | ' | ' | $250 | $250 | ' | ' | ' | ' | ' | $384.50 | ' | ' | ' | ' | ' | $18.50 | ' | ' | ' | ' | $19.10 | ' | $11.20 | $11.90 | ' | $3.10 | ' | ' |
Debt instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 206.5 | 157.6 | ' | ' | ' | ' | 11.1 | ' | ' | 13.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Valhi debt | ' | ' | ' | ' | ' | ' | 456.5 | 407.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 170 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.4 | 7.2 | ' | ' | ' | ' | ' | 3.1 | ' | 3.9 |
Financing capital lease | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 68.6 | 69.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other | ' | ' | 10.5 | 9.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total subsidiary debt | ' | ' | ' | ' | 296 | 502.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total debt | 752.5 | 910.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less current maturities | 10.7 | 29.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long-term debt | $741.80 | $880.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_Valhi_Additional
Long-Term Debt - Valhi - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Notes Payable, Other Payables | Snake River | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Term loan | $250 | ' |
Loans bear interest at a weighted average fixed interest rate | 9.40% | ' |
Loans maturity period | 31-Jan-27 | ' |
Recourse loans | 37.5 | ' |
Nonrecourse loans | 212.5 | ' |
Line of Credit | Contran | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Borrowing availability | 275 | ' |
Debt instrument, Interest rate at period end | 4.25% | ' |
Debt due date, start date | 31-Dec-15 | ' |
Credit facility, Amount borrowed | 48.9 | 157.6 |
Amount available for borrowing | $68.50 | ' |
Debt instrument, Variable rate spread | 1.00% | ' |
LongTerm_Debt_Kronos_Term_Loan
Long-Term Debt - Kronos Term Loan - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 12 Months Ended | 7 Months Ended | 1 Months Ended | ||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Jun. 30, 2012 | Dec. 31, 2011 | Feb. 28, 2013 | Dec. 31, 2013 | Jul. 30, 2013 | Dec. 31, 2012 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Jul. 31, 2013 | Feb. 28, 2013 | Jul. 31, 2013 | |
Contran | 2014 Term Loan | 2014 Term Loan | 2014 Term Loan | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | ||||
Subsequent Event | Subsequent Event | U.S. wholly-owned subsidiaries | Canadian first-tier European subsidiaries | Contran | Contran | Term Loan | Term Loan | 2014 Term Loan | 2014 Term Loan | 2014 Term Loan | 2014 Term Loan | Principal Prepayment | Principal Prepayment | Prepayment Funded By Borrowings | ||||||
Subsequent Event | Subsequent Event | Subsequent Event | Remaining Proceeds Available For Use | Libor Rate | Base Rate | Term Loan | Term Loan | Principal Prepayment | ||||||||||||
Subsequent Event | Subsequent Event | Subsequent Event | Term Loan | |||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of Principal Amount | ' | ' | ' | $170,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,000,000 | $290,000,000 | ' |
Pre Tax Interest Charge | -8,900,000 | -7,200,000 | -3,100,000 | ' | ' | ' | ' | 7,200,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | 2,300,000 | 6,600,000 | ' |
Cash used for payment of term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | 100,000,000 | 50,000,000 |
Borrowing from Contran for prepayment of term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 190,000,000 | ' |
Percentage of average interest rate, during period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.38% | 6.80% | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized discount balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,500,000 | ' | ' | ' | ' | ' | ' | ' |
Principal amount of promissory note | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350,000,000 | ' | ' | ' | ' | ' | ' |
Percentage of loan issued to principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 99.50% | ' | ' | ' | ' | ' | ' |
Borrowings under credit facility during the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 348,250,000 | 172,800,000 | ' | ' | ' | ' | ' |
Minimum LIBOR rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' |
Debt instrument, Variable rate spread | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.75% | 2.75% | ' | ' | ' |
Quarterly principal repayments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | 875,000 | ' | ' | ' | ' | ' | ' |
Quarterly principle repayments, commencing date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30-Jun-14 | ' | ' | ' | ' | ' | ' |
Loans maturity period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30-Jun-18 | ' | ' | ' | 28-Feb-20 | ' | ' | ' | ' | ' | ' |
Long term debt prepayments terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Voluntary principal prepayments are permitted at any time, provided that a call premium of 1% of the principal amount of such prepayment applies to any voluntary prepayment made on or before February 2015 (there is no prepayment penalty applicable to any voluntary prepayment after February 2015) | ' | ' | ' | ' | ' | ' |
Call premium percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' |
Voluntary prepayment, earliest date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28-Feb-15 | ' | ' | ' | ' | ' | ' |
Term Loan Collateralized Priority | ' | ' | ' | ' | ' | 100.00% | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan pledged as collateral from wholly-owned subsidiary | ' | ' | ' | ' | 395,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum amount of debt default for using customary default provisions | ' | ' | ' | ' | $50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_Revolving_Credit
Long-Term Debt - Revolving Credit Facility - Additional Information (Detail) (Kronos Worldwide, Inc.) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 01, 2014 | Jan. 01, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Revolving North American credit facility | Revolving North American credit facility | Revolving North American credit facility | Revolving North American credit facility | Revolving North American credit facility | Revolving North American credit facility | Revolving European credit facility | European Credit Facility | European Credit Facility | European Credit Facility | European Credit Facility | European Credit Facility | European Credit Facility | Letter Of Credit | Canadian Subsidiary Revolving Borrowings Maximum | Canadian Letter Of Credit Loan Agreement | Canadian Letter Of Credit Loan Agreement | Canadian Letter Of Credit Loan Agreement | Canadian Loan Agreement | Canadian Loan Agreement | Canadian Loan Agreement | |
USD ($) | USD ($) | Minimum | Minimum | Maximum | Maximum | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | Subsequent Event | Subsequent Event | Revolving North American credit facility | Revolving North American credit facility | USD ($) | CAD | CAD | USD ($) | CAD | CAD | |
LIBOR Option | Base Rate Option | LIBOR Option | Base Rate Option | USD ($) | EUR (€) | USD ($) | USD ($) | ||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | $125 | ' | ' | ' | ' | € 120 | ' | ' | ' | ' | ' | ' | $15 | $25 | ' | ' | 10 | ' | ' | 7.1 |
Credit facility maturity date | 'June 2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument basis spread on variable rate | ' | ' | 1.50% | 0.50% | 2.00% | 1.00% | 1.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed charge coverage ratio, minimum value | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, borrowings | 162.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.7 | 1.8 | ' |
Repayment of credit facility | 151 | ' | ' | ' | ' | ' | ' | 26.5 | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of average interest rate | 2.69% | ' | ' | ' | ' | ' | ' | 2.02% | 2.02% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of average interest rate, during period | 3.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount available for borrowing | 89.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings under credit facility during the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.8 | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of borrowings available under credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% | 75.00% | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Amount available for Borrowing | ' | ' | ' | ' | ' | ' | ' | ' | ' | 82.8 | 60 | 124.1 | 90 | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.4 | ' | ' | ' | ' |
Additional indebtedness | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35 | ' | ' | ' | ' |
Restricted Deposits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7.90 | ' | ' | ' | ' | ' |
LongTerm_Debt_Notes_Payable_to
Long-Term Debt - Notes Payable to TIMET - Additional Information (Detail) (Timet Finance Management Company, CompX, Promissory Note, USD $) | 1 Months Ended | 6 Months Ended | 12 Months Ended |
Oct. 31, 2007 | Jul. 18, 2013 | Dec. 31, 2013 | |
Timet Finance Management Company | CompX | Promissory Note | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Quarterly principal repayments | ' | ' | $250,000 |
Debt instrument, Variable rate spread | 1.00% | ' | ' |
Basis of variable interest rate | 'LIBOR | ' | 'LIBOR |
Promissory note maturity date | ' | ' | 30-Sep-14 |
Percentage of average interest rate during period | ' | 1.30% | ' |
LongTerm_Debt_WCS_Additional_I
Long-Term Debt - WCS - Additional Information (Detail) (WCS, USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Mar. 31, 2010 | Dec. 31, 2013 | Apr. 30, 2010 | Dec. 31, 2013 | |
Vendor construction retainage promissory note | Vendor construction retainage promissory note | Vendor construction retainage promissory note | Final Payment | Former customer promissory note | Former customer promissory note | Former customer promissory note | Financing capital lease | |
Vendor construction retainage promissory note | Andrews County capital lease | |||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Gross proceeds sale of property and equipment | ' | ' | ' | ' | ' | ' | ' | $75,000,000 |
Lease Agreement period | ' | ' | ' | ' | ' | ' | ' | '25 years |
Lease agreement cost | ' | ' | ' | ' | ' | ' | ' | 2,600,000 |
Capital lease agreement interest rate | ' | ' | ' | ' | ' | ' | ' | 7.00% |
Aggregate rental due | ' | ' | ' | ' | ' | ' | ' | 6,200,000 |
Principal amount of promissory note | ' | ' | 6,600,000 | ' | ' | ' | 12,000,000 | ' |
Long-term promissory note fixed interest rate | ' | ' | ' | ' | ' | ' | 6.00% | ' |
Contract termination expense | ' | ' | ' | ' | 1,100,000 | ' | ' | ' |
Carrying amount of debt | ' | ' | 5,820,000 | ' | ' | 2,400,000 | ' | ' |
Promissory note due date | ' | ' | 31-Dec-13 | ' | ' | ' | ' | ' |
Note calls for payments | 2,400,000 | 1,700,000 | ' | 2,500,000 | ' | ' | ' | ' |
Percentage of discount on promissory note | ' | ' | 6.00% | ' | ' | ' | ' | ' |
Accrued construction retainage payable | ' | ' | $1,400,000 | ' | ' | ' | ' | ' |
LongTerm_Debt_Aggregate_Maturi
Long-Term Debt - Aggregate Maturities of Long-Term Debt (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2014 |
In Millions, unless otherwise specified | Subsequent Event | ||
Term Loan | |||
Schedule Of Long Term Debt Maturities [Line Items] | ' | ' | ' |
2014 | $15.20 | ' | $15.20 |
2015 | 219.2 | ' | 219.2 |
2016 | 13.1 | ' | 13.1 |
2017 | 22.4 | ' | 22.4 |
2018 | 11.3 | ' | 11.3 |
2019 and thereafter | 535.6 | ' | 715.6 |
Subtotal | 816.8 | ' | 996.8 |
Less amounts representing interest on capital leases | 64.3 | ' | 64.3 |
Total long-term debt | $752.50 | $910.10 | $932.50 |
LongTerm_Debt_Note_Payable_to_
Long-Term Debt - Note Payable to Contran - Additional Information (Detail) (Kronos Worldwide, Inc., Contran, USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||
Feb. 28, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 28, 2014 | |
Libor Loans | Base Rate Loans | Subsequent Event | |||
New Term Loan | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Quarterly principal repayments | ' | $5,000,000 | ' | ' | $170,000,000 |
Term loan maturity date | 30-Jun-18 | ' | ' | ' | ' |
Interest rate terms | ' | ' | '(with LIBOR no less than 1%) plus 5.125%, | 'rate (as defined in the agreement) plus 4.125%. | ' |
Debt instrument, Variable rate spread | ' | ' | 5.13% | 4.13% | ' |
Percentage of average interest rate, during period | ' | 7.38% | ' | ' | ' |
Percentage of average interest rate | ' | 7.38% | ' | ' | ' |
Borrowings under credit facility during the period | 190,000,000 | ' | ' | ' | ' |
Repayment of credit facility | $20,000,000 | ' | ' | ' | ' |
LongTerm_Debt_Senior_Secured_N
Long-Term Debt - Senior Secured Note - Additional Information (Detail) | 12 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2012 | Dec. 31, 2011 | Jul. 20, 2012 | Mar. 31, 2011 | Mar. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Jun. 30, 2012 | Mar. 31, 2011 | |
USD ($) | USD ($) | USD ($) | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | |
USD ($) | USD ($) | 6.5% Senior Secured Notes | 6.5% Senior Secured Notes | 6.5% Senior Secured Notes | 6.5% Senior Secured Notes | 6.5% Senior Secured Notes | 6.5% Senior Secured Notes | 6.5% Senior Secured Notes | ||||
USD ($) | USD ($) | USD ($) | EUR (€) | EUR (€) | EUR (€) | |||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount of debt redeemed or repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | € 40,800,000 | ' | € 80,000,000 |
Interest on promissory note and deferred payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.50% |
Principal amount of promissory note | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000,000 |
Percentage of loan issued to principal amount | ' | ' | ' | ' | ' | ' | 102.17% | ' | ' | ' | ' | ' |
Aggregate redemption or repurchase price on principal amount | ' | ' | ' | ' | ' | ' | 115,700,000 | ' | 57,600,000 | 40,600,000 | ' | ' |
Call premium | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' |
Pre Tax Interest Charge | -8,900,000 | -7,200,000 | -3,100,000 | 7,200,000 | 200,000 | ' | ' | 3,300,000 | ' | ' | ' | ' |
Carrying amount of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | € 279,200,000 | ' |
Repayment of debt, percentage on principal amount | ' | ' | ' | ' | ' | 1.01% | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_Notes_Payable_to1
Long-Term Debt - Notes Payable to BMI - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2012 | |
Debt Instrument [Line Items] | ' | ' | ' |
Cash Collateral | $33,300,000 | ' | $20,900,000 |
BMI | Bank note payable | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument | 11,200,000 | 11,900,000 | ' |
Cash Collateral | ' | 750,000 | ' |
Periodic principal payments | $100,000 | ' | ' |
Loans maturity period | 31-Jan-25 | ' | ' |
Frequency of debt instrument payment | 'Monthly | ' | ' |
Interest rate terms | 'note bears interest at a variable rate equal to the prime rate with a floor of 3.25% and a ceiling of 9.0%. | ' | ' |
Debt instrument, Interest rate at period end | 3.25% | ' | ' |
BMI | Bank note payable | Minimum | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Percentage of average interest rate during period | 3.25% | ' | ' |
BMI | Bank note payable | Maximum | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Percentage of average interest rate during period | 9.00% | ' | ' |
LongTerm_Debt_Notes_Payable_La
Long-Term Debt - Notes Payable Landwell - Additional Information (Detail) (Landwell, Note payable to the City of Henderson, USD $) | 12 Months Ended | |
Dec. 31, 2013 | 31-May-12 | |
Landwell | Note payable to the City of Henderson | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument | $3,100,000 | $3,900,000 |
Periodic principal payments | $250,000 | ' |
Interest rate terms | 'The loan bears interest at a 3% fixed rate. | ' |
Promissory note maturity date | 31-Dec-20 | ' |
Frequency of debt instrument payment | 'Semi-Annual | ' |
Fixed interest rate percentage | 3.00% | ' |
Accounts_Payable_and_Accrued_L2
Accounts Payable and Accrued Liabilities - Schedule of Accounts Payable and Accrued Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Accounts payable: | ' | ' | ' |
Accounts payable | $133.20 | $169.60 | ' |
Current accrued liabilities: | ' | ' | ' |
Employee benefits | 36.1 | 38.5 | ' |
Deferred income | 36.9 | 5.4 | ' |
Accrued litigation settlement | 35 | ' | ' |
Accrued sales discounts and rebates | 16.7 | 14.9 | ' |
Environmental costs | 9.1 | 7.6 | 8.6 |
Reserve for uncertain tax positions | 3.1 | 3 | ' |
Other | 51.3 | 42.8 | ' |
Total | 188.2 | 112.2 | ' |
Noncurrent accrued liabilities: | ' | ' | ' |
Reserve for uncertain tax positions | 49.8 | 29.4 | ' |
Asset retirement obligations | 25.6 | 23.8 | ' |
Employee benefits | 12.2 | 11.3 | ' |
Insurance claims and expenses | 9.5 | 9.7 | ' |
Deferred payment obligation | 8.2 | ' | ' |
Deferred income | 1.3 | 1 | ' |
Other | 3.6 | 3.1 | ' |
Total | 110.2 | 78.3 | ' |
Kronos Worldwide, Inc. | ' | ' | ' |
Accounts payable: | ' | ' | ' |
Accounts payable | 124 | 161.3 | ' |
CompX | ' | ' | ' |
Accounts payable: | ' | ' | ' |
Accounts payable | 1.5 | 2.8 | ' |
WCS | ' | ' | ' |
Accounts payable: | ' | ' | ' |
Accounts payable | 0.4 | 0.9 | ' |
Other | ' | ' | ' |
Accounts payable: | ' | ' | ' |
Accounts payable | $7.30 | $4.60 | ' |
Accounts_Payable_and_Accrued_L3
Accounts Payable and Accrued Liabilities - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts Payable And Accrued Liabilities [Line Items] | ' | ' |
Asset retirement obligation, accretion expense | $1.70 | $0.70 |
Compact and Federal LLRW Disposal Facilities | ' | ' |
Accounts Payable And Accrued Liabilities [Line Items] | ' | ' |
Asset Retirement Obligation | ' | $19.10 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2014 |
Other Assets | Other Assets | Defined Benefit Pension Plans | Defined Benefit Pension Plans | Defined Benefit Pension Plans | Defined Benefit Pension Plans | Defined Benefit Pension Plans | Defined Benefit Pension Plans | Defined Benefit Pension Plans | Defined Benefit Pension Plans | Defined Benefit Pension Plans | U.S. Defined Benefit Pension Plans | U.S. Defined Benefit Pension Plans | U.S. Defined Benefit Pension Plans | Foreign Pension Plan Defined Benefit | Foreign Pension Plan Defined Benefit | Foreign Pension Plan Defined Benefit | Foreign Pension Plan Defined Benefit | Foreign Pension Plan Defined Benefit | Foreign Pension Plan Defined Benefit | Foreign Pension Plan Defined Benefit | Foreign Pension Plan Defined Benefit | Foreign Pension Plan Defined Benefit | Foreign Pension Plan Defined Benefit | Foreign Pension Plan Defined Benefit | Foreign Pension Plan Defined Benefit | OPEB | OPEB | OPEB | CMRT | CMRT | CMRT | CMRT | CMRT | CMRT | CMRT | ||||
Real estate | Real estate | Level 3 Inputs | Level 3 Inputs | Level 3 Inputs | Level 3 Inputs | Level 3 Inputs | Canada | Other Assets | Equity Securities | Equity Securities | Fixed Income Funds | Fixed Income Funds | Other Investments | Real estate | Level 3 Inputs | U.S. Defined Benefit Pension Plans | U.S. Defined Benefit Pension Plans | U.S. Defined Benefit Pension Plans | U.S. Defined Benefit Pension Plans | U.S. Defined Benefit Pension Plans | U.S. Defined Benefit Pension Plans | U.S. Defined Benefit Pension Plans | |||||||||||||||||
Norway | Norway | Real estate | Real estate | BasisPoint | Norway | Canada | Norway | Canada | Norway | Canada | Norway | Norway | Plan assets attributable to disposition of certain investments | Level 1 and Level 2 | Level 1 and Level 2 | Subsequent Event | |||||||||||||||||||||||
Norway | Norway | ||||||||||||||||||||||||||||||||||||||
Pension Plans Postretirement And Other Employee Benefits [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined contribution plan expense | $4.20 | $3.90 | $3.40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected contribution | ' | ' | ' | ' | ' | 27.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.50% | 3.60% | ' | 3.80% | 3.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | 3.47% | ' | ' | ' | ' | ' | ' | ' | ' |
Expect to recognize unrecognized actuarial losses | ' | ' | ' | ' | ' | 11.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expect to recognize prior service credit\cost | ' | ' | ' | ' | ' | 0.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expect to recognize transition obligations, Net | ' | ' | ' | ' | ' | 0.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of average annual rate of return | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.00% | ' | ' | ' | ' | ' | ' |
Long-term return on plan assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 10.00% | 10.00% | 5.00% | 5.20% | 5.50% | ' | 4.00% | ' | 8.00% | ' | 4.00% | ' | 6.00% | ' | ' | ' | ' | 10.00% | 10.00% | 10.00% | ' | ' | ' | 7.50% |
Percentage of fair value of asset | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 83.00% | 83.00% | ' |
Plan assets | ' | ' | ' | ' | ' | 496.6 | 460.6 | 4.8 | 5.5 | 261.5 | 238.1 | 200.6 | 4.8 | 5.5 | 54.9 | 50.7 | 45.4 | 441.6 | 409.9 | 343.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 254.7 | ' | ' | ' |
Percentage of aggregate assets value | 100.00% | 100.00% | ' | 1.00% | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average basis points of long-term rate of return on investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of plan asset allocation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45.00% | 12.00% | 48.00% | 78.00% | 7.00% | 9.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of assumed long-term rate of return for plan assets invested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 10.00% | 10.00% | 5.00% | 5.20% | 5.50% | ' | 4.00% | ' | 8.00% | ' | 4.00% | ' | 6.00% | ' | ' | ' | ' | 10.00% | 10.00% | 10.00% | ' | ' | ' | 7.50% |
Percentage of plan asset allocation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average discount rate used in determining the net periodic cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.60% | 4.20% | 5.10% | 3.70% | 4.90% | 5.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.47% | 3.93% | 4.65% | ' | ' | ' | ' | ' | ' | ' |
Curtailment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.1 | ' | ' | ' | ' | ' | ' | ' | ' | -0.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined benefit plan, special termination benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee_Benefit_Plans_Schedul
Employee Benefit Plans - Schedule of Defined Benefit Plan Expected Future Payments (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Defined Benefit Pension Plans | ' |
Pension Plans Postretirement And Other Employee Benefits [Line Items] | ' |
2014 | $29.20 |
2015 | 29.2 |
2016 | 29 |
2017 | 29.8 |
2018 | 30.4 |
Next 5 years | 168.3 |
OPEB | ' |
Pension Plans Postretirement And Other Employee Benefits [Line Items] | ' |
2014 | 1.5 |
2015 | 1.4 |
2016 | 1.3 |
2017 | 1.2 |
2018 | 1.1 |
Next 5 years | $4.90 |
Employee_Benefit_Plans_Schedul1
Employee Benefit Plans - Schedule of Funded Status (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Noncurrent | ($169.30) | ($202.90) | ' |
U.S. Defined Benefit Pension Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Balance at beginning of the year | 69.1 | 65.3 | ' |
Interest cost | 2.4 | 2.7 | 2.9 |
Actuarial loss (gain) | -5.6 | 4.9 | ' |
Benefits paid | -3.9 | -3.8 | ' |
Balance at end of the year | 62 | 69.1 | 65.3 |
Fair value at beginning of the year | 50.7 | 45.4 | ' |
Actual return on plan assets | 7 | 6.9 | ' |
Employer contributions | 1.1 | 2.2 | ' |
Fair value at end of year | 54.9 | 50.7 | 45.4 |
Funded status | -7.1 | -18.4 | ' |
Current | -0.3 | -0.3 | ' |
Noncurrent | -6.8 | -18.1 | ' |
Total | -7.1 | -18.4 | ' |
Accumulated other comprehensive loss—Actuarial loss | 28.9 | 38.1 | ' |
Total amount recognized in balance sheet | 21.8 | 19.7 | ' |
Accumulated benefit obligations (“ABOâ€) | 62 | 69.1 | ' |
Foreign Pension Plan Defined Benefit | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Balance at beginning of the year | 591.5 | 469.7 | ' |
Service cost | 13.1 | 10.4 | 11.2 |
Interest cost | 21.6 | 22.8 | 24.1 |
Participants’ contributions | 1.9 | 1.8 | ' |
Actuarial loss (gain) | -2.5 | 95.9 | ' |
Change in currency exchange rates | 4.6 | 15.3 | ' |
Benefits paid | -25.3 | -24.4 | ' |
Balance at end of the year | 604.9 | 591.5 | 469.7 |
Fair value at beginning of the year | 409.9 | 343.7 | ' |
Actual return on plan assets | 28.5 | 49 | ' |
Employer contributions | 27.3 | 28.2 | ' |
Change in currency exchange rates | -0.7 | 11.6 | ' |
Fair value at end of year | 441.6 | 409.9 | 343.7 |
Funded status | -163.3 | -181.6 | ' |
Pension asset | 0.6 | 5.1 | ' |
Current | -1.4 | -1.9 | ' |
Noncurrent | -162.5 | -184.8 | ' |
Total | -163.3 | -181.6 | ' |
Accumulated other comprehensive loss—Actuarial loss | 160.8 | 190.8 | ' |
Accumulated other comprehensive income (loss) - Prior service credit | 2.8 | 5.4 | ' |
Accumulated other comprehensive loss - Net transition obligations | ' | 1.3 | ' |
Accumulated other comprehensive loss, Total | 163.6 | 197.5 | ' |
Total amount recognized in balance sheet | 0.3 | 15.9 | ' |
Accumulated benefit obligations (“ABOâ€) | 560 | 545.9 | ' |
OPEB | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Balance at beginning of the year | 22.7 | 22.1 | ' |
Service cost | 0.3 | 0.3 | 0.2 |
Interest cost | 0.7 | 0.8 | 1 |
Actuarial loss (gain) | -2.2 | 0.4 | ' |
Plan amendment | -4.4 | ' | ' |
Curtailment | -0.1 | ' | ' |
Change in currency exchange rates | -0.8 | 0.3 | ' |
Benefits paid | -1.1 | -1.2 | ' |
Balance at end of the year | 15.1 | 22.7 | 22.1 |
Fair value at beginning of the year | ' | ' | ' |
Fair value at end of year | ' | ' | ' |
Funded status | -15.1 | -22.7 | ' |
Current | -1.4 | -1.5 | ' |
Noncurrent | -13.7 | -21.2 | ' |
Total | -15.1 | -22.7 | ' |
Accumulated other comprehensive loss—Actuarial loss | 1.6 | 3.8 | ' |
Accumulated other comprehensive income (loss) - Prior service credit | -12.6 | -10.5 | ' |
Accumulated other comprehensive loss, Total | -11 | -6.7 | ' |
Total amount recognized in balance sheet | ($26.10) | ($29.40) | ' |
Employee_Benefit_Plans_Compone
Employee Benefit Plans - Components of Net Periodic Defined Benefit Pension Benefit Cost (Credit) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
U.S. Defined Benefit Pension Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Interest cost | $2.40 | $2.70 | $2.90 |
Expected return on plan assets | -4.9 | -4.5 | -4.8 |
Amortization of unrecognized: Net actuarial loss | 1.6 | 1.6 | 1 |
Total | -0.9 | -0.2 | -0.9 |
Foreign Pension Plan Defined Benefit | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Interest cost | 21.6 | 22.8 | 24.1 |
Service cost | 13.1 | 10.4 | 11.2 |
Settlement loss | ' | ' | 0.5 |
Curtailment gain (loss) | 7.3 | ' | ' |
Expected return on plan assets | -18.9 | -17.4 | -18 |
Amortization of unrecognized prior service credit | 1.1 | 1.1 | 1.2 |
Amortization of unrecognized: Net transition obligations | 0.4 | 0.4 | 0.5 |
Amortization of unrecognized: Net actuarial loss | 12.5 | 8 | 6.8 |
Total | 37.1 | 25.3 | 26.3 |
OPEB | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Interest cost | 0.7 | 0.8 | 1 |
Service cost | 0.3 | 0.3 | 0.2 |
Curtailment gain (loss) | -0.6 | ' | ' |
Amortization of unrecognized prior service credit | -1.8 | -1.8 | -2.3 |
Total | ($1.40) | ($0.70) | ($1.10) |
Employee_Benefit_Plans_Schedul2
Employee Benefit Plans - Schedule of Plans for which Accumulated Benefit Obligations Exceeds Plan Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
U.S. Defined Benefit Pension Plans | ' | ' |
Plans for which the ABO exceeds plan assets: | ' | ' |
Projected benefit obligations | $62 | $69.10 |
Accumulated benefit obligations | 62 | 69.1 |
Fair value at end of year | 54.9 | 50.7 |
Foreign Pension Plan Defined Benefit | ' | ' |
Plans for which the ABO exceeds plan assets: | ' | ' |
Projected benefit obligations | 527 | 529.4 |
Accumulated benefit obligations | 489.5 | 491.5 |
Fair value at end of year | $364.20 | $342.70 |
Employee_Benefit_Plans_Summary
Employee Benefit Plans - Summary of Actuarial Assumptions Used to Determine Net Periodic Benefit Cost (Credit) (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
U.S. Defined Benefit Pension Plans | ' | ' | ' |
Pension Plans Postretirement And Other Employee Benefits [Line Items] | ' | ' | ' |
Discount rate | 3.60% | 4.20% | 5.10% |
Long-term return on plan assets | 10.00% | 10.00% | 10.00% |
Foreign Pension Plan Defined Benefit | ' | ' | ' |
Pension Plans Postretirement And Other Employee Benefits [Line Items] | ' | ' | ' |
Discount rate | 3.70% | 4.90% | 5.10% |
Long-term return on plan assets | 5.00% | 5.20% | 5.50% |
Increase in future compensation levels | 3.10% | 3.10% | 3.00% |
Employee_Benefit_Plans_Summary1
Employee Benefit Plans - Summary of Actuarial Assumptions Used to Benefit Obligations (Detail) (Foreign Pension Plan Defined Benefit) | Dec. 31, 2013 | Dec. 31, 2012 |
Foreign Pension Plan Defined Benefit | ' | ' |
Pension Plans Postretirement And Other Employee Benefits [Line Items] | ' | ' |
Discount rate | 3.80% | 3.70% |
Increase in future compensation levels | 2.70% | 3.10% |
Employee_Benefit_Plans_Schedul3
Employee Benefit Plans - Schedule of Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Pension Plans | ' | ' | ' |
Pension Plans Postretirement And Other Employee Benefits [Line Items] | ' | ' | ' |
Net actuarial gain (loss) | $19.80 | ($66.70) | ($30.10) |
Amortization of unrecognized prior service cost (credit) | 1.1 | 1.1 | 1.2 |
Amortization of unrecognized prior service cost net transition obligations | 0.4 | 0.4 | 0.5 |
Amortization of unrecognized net actuarial gain/loss | 14.2 | 9.7 | 8.2 |
Total | 42.6 | -55.5 | -20.2 |
OPEB | ' | ' | ' |
Pension Plans Postretirement And Other Employee Benefits [Line Items] | ' | ' | ' |
Net actuarial gain (loss) | 2.2 | -0.4 | -0.9 |
Amortization of unrecognized net actuarial gain/loss | -2.4 | -1.8 | -2.3 |
Total | 4.3 | -2.2 | -3.2 |
Plan amendments/curtailment | $4.50 | ' | ' |
Employee_Benefit_Plans_Schedul4
Employee Benefit Plans - Schedule of Aggregate Fair Value of Asset and Supplemental Asset Mix (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
CMRT asset value | $722.80 | $726.40 |
CMRT fair value input | 100.00% | 100.00% |
CMRT asset mix | 100.00% | 100.00% |
Level 1 | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
CMRT fair value input | 79.00% | 82.00% |
Level 2 | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
CMRT fair value input | 4.00% | 1.00% |
Level 3 Inputs | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
CMRT fair value input | 17.00% | 17.00% |
Domestic Equities, Principally Publicly Traded | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
CMRT asset mix | 53.00% | 43.00% |
International Equities, Publicly Traded | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
CMRT asset mix | ' | 2.00% |
Fixed Income Securities, Publicly Traded | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
CMRT asset mix | 35.00% | 12.00% |
Privately Managed Limited Partnerships | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
CMRT asset mix | 11.00% | 8.00% |
Other Assets | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
CMRT asset mix | 1.00% | 35.00% |
Employee_Benefit_Plans_Composi
Employee Benefit Plans - Composition of Pension Plan Assets (Detail) (Defined Benefit Pension Plans, USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | $496.60 | $460.60 | ' |
Other Pension Plans, Defined Benefit | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 22 | 19.5 | ' |
Germany | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 247.5 | 224.8 | ' |
Canada | Local Currency Equities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 24 | 22.4 | ' |
Canada | Foreign Equities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 33 | 30.3 | ' |
Canada | Local Currency Fixed Income | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 44.7 | 38 | ' |
Canada | Global Mutual Fund | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 6.1 | 5.6 | ' |
Canada | Cash and Other | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 0.5 | 2.1 | ' |
Norway | Local Currency Equities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 2 | 3.2 | ' |
Norway | Foreign Equities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 5.2 | 5.2 | ' |
Norway | Local Currency Fixed Income | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 35 | 40.9 | ' |
Norway | Cash and Other | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 13.2 | 7.6 | ' |
Norway | Foreign Fixed Income | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 3.6 | 4.8 | ' |
Norway | Real estate | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 4.8 | 5.5 | ' |
United States | CMRT | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 55 | 50.7 | ' |
Level 1 | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 180.1 | 171.8 | ' |
Level 1 | Other Pension Plans, Defined Benefit | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 13.6 | 12.3 | ' |
Level 1 | Canada | Local Currency Equities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 24 | 22.4 | ' |
Level 1 | Canada | Foreign Equities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 33 | 30.3 | ' |
Level 1 | Canada | Local Currency Fixed Income | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 44.7 | 38 | ' |
Level 1 | Canada | Global Mutual Fund | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 6.1 | 5.6 | ' |
Level 1 | Canada | Cash and Other | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 0.5 | 2.1 | ' |
Level 1 | Norway | Local Currency Equities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 2 | 3.2 | ' |
Level 1 | Norway | Foreign Equities | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 5.2 | 5.2 | ' |
Level 1 | Norway | Local Currency Fixed Income | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 35 | 40.9 | ' |
Level 1 | Norway | Cash and Other | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 12.4 | 7 | ' |
Level 1 | Norway | Foreign Fixed Income | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 3.6 | 4.8 | ' |
Level 2 | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 55 | 50.7 | ' |
Level 2 | United States | CMRT | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 55 | 50.7 | ' |
Level 3 Inputs | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 261.5 | 238.1 | 200.6 |
Level 3 Inputs | Other Pension Plans, Defined Benefit | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 8.4 | 7.2 | ' |
Level 3 Inputs | Germany | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 247.5 | 224.8 | ' |
Level 3 Inputs | Norway | Cash and Other | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | 0.8 | 0.6 | ' |
Level 3 Inputs | Norway | Real estate | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan assets | $4.80 | $5.50 | ' |
Employee_Benefit_Plans_Schedul5
Employee Benefit Plans - Schedule of Rollforward of Change in Fair Value of Level 3 Assets (Detail) (Defined Benefit Pension Plans, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Reconciliation Of Changes In Fair Value Of Assets And Liabilities [Line Items] | ' | ' |
Fair value at end of year | $496.60 | $460.60 |
Level 3 Inputs | ' | ' |
Schedule Of Reconciliation Of Changes In Fair Value Of Assets And Liabilities [Line Items] | ' | ' |
Fair value at beginning of the year | 238.1 | 200.6 |
Gain on assets held at end of year | 11.2 | 33 |
Gain on assets sold during the year | ' | 0.1 |
Assets purchased | 16.1 | 15.1 |
Assets sold | -14.6 | -14.3 |
Transfers out | ' | -1 |
Currency exchange rate fluctuations | 10.7 | 4.6 |
Fair value at end of year | $261.50 | $238.10 |
Employee_Benefit_Plans_Summary2
Employee Benefit Plans - Summary of Key Actuarial Assumptions Used to Determine Net Benefit Obligations (Detail) (OPEB) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
OPEB | ' | ' |
Healthcare inflation: | ' | ' |
Initial rate | 7.00% | 7.00% |
Ultimate rate | 5.00% | 5.00% |
Year of ultimate rate achievement | '2020 | '2018 |
Discount rate | 4.00% | 3.47% |
Income_Taxes_Components_of_Com
Income Taxes - Components of Comprehensive Provision for Income Taxes Allocation (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule Of Income Tax [Line Items] | ' | ' | ' |
United States | ($70.40) | $89 | $51.60 |
Non-U.S. subsidiaries | -147.5 | 212.4 | 409.2 |
Income (loss) from continuing operations before income taxes | -217.9 | 301.4 | 460.8 |
Expected tax expense (benefit) at U.S. federal statutory income tax rate of 35% | -76.3 | 105.4 | 161.3 |
Non-U.S. tax rates | 4.3 | -11.9 | -17.1 |
Incremental U.S. tax on earnings of non-U.S. and non-tax group companies | -18.5 | 1 | 28.8 |
U.S. state income taxes, net | -3.4 | 1.3 | 4 |
Adjustment to the reserve for uncertain tax positions, net | 2.1 | 4.2 | -8.5 |
Nondeductible expenses | 2.9 | 4.3 | 3.7 |
Tax rate changes | -0.2 | 1.9 | -0.1 |
French dividend surtax | ' | 0.3 | ' |
Other, net | -1.9 | -1.7 | -2.2 |
Provision for income taxes (benefit) | -91 | 104.8 | 169.9 |
Income tax expense (benefit) | -91 | 104.8 | 169.9 |
Income from discontinued operations | ' | 5.4 | 5 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Marketable securities | 5.1 | -11.6 | 7.7 |
Currency translation | 5.5 | 4.9 | ' |
Total | -65.3 | 84.5 | 175.1 |
Defined Benefit Pension Plans | ' | ' | ' |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Defined benefit plans | 14.1 | -18.3 | -6.5 |
OPEB | ' | ' | ' |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Defined benefit plans | $1 | ($0.70) | ($1) |
Income_Taxes_Components_of_Com1
Income Taxes - Components of Comprehensive Provision for Income Taxes Allocation (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule Of Income Tax [Line Items] | ' | ' | ' |
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Income_Taxes_Component_of_Inco
Income Taxes - Component of Income Taxes Expenses (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Currently payable (refundable): | ' | ' | ' |
U.S. federal and state | $9.10 | $0.90 | $8 |
Non-U.S. | -1.2 | 42.6 | 78.7 |
Total | 7.9 | 43.5 | 86.7 |
Deferred income taxes (benefit): | ' | ' | ' |
U.S. federal and state | -57.9 | 34.5 | 28.6 |
Non-U.S. | -41 | 26.8 | 54.6 |
Total | -98.9 | 61.3 | 83.2 |
Provision for income taxes (benefit) | ($91) | $104.80 | $169.90 |
Income_Taxes_Components_of_Net
Income Taxes - Components of Net Deferred Tax Liability (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Tax effect of temporary differences related to: | ' | ' |
Inventories | $4.40 | $3.60 |
Marketable securities | ' | ' |
Accrued OPEB costs | 4.6 | 6.9 |
Accrued pension costs | 21.8 | 33.3 |
Accrued environmental liabilities | 40.1 | 16.9 |
Other deductible differences | 58.8 | 26.2 |
Tax loss and tax credit carryforwards | 191.8 | 153 |
Valuation allowance | -0.1 | -0.2 |
Adjusted gross deferred tax assets (liabilities) | 321.4 | 239.7 |
Netting of items by tax jurisdiction, assets | -149.2 | -109.8 |
Total | 172.2 | 129.9 |
Less net current deferred tax asset (liability) | 23 | 9.6 |
Net noncurrent deferred tax asset (liability) | 149.2 | 120.3 |
Tax effect of temporary differences related to: | ' | ' |
Inventories | -2.6 | -10.3 |
Marketable securities | -145.8 | -164.8 |
Property and equipment | -115.8 | -104.5 |
Other taxable differences | -35.1 | -30.3 |
Investments in subsidiaries and affiliates | -280.6 | -258.3 |
Tax on unremitted earnings of non-U.S. subsidiaries | -2.6 | -7.6 |
Adjusted gross deferred tax assets (liabilities) | -582.5 | -575.8 |
Netting of items by tax jurisdiction, liabilities | -149.2 | -109.8 |
Total | -433.3 | -466 |
Less net current deferred tax asset (liability) | -2.2 | -11.2 |
Net noncurrent deferred tax asset (liability) | ($431.10) | ($454.80) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | USD ($) | USD ($) | USD ($) | Basic Management, Inc. | Chemicals | France | France | France | Taiwan | Proposed adjustment to certain foreign tax liabilities | Proposed adjustment to certain foreign tax liabilities | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CAD | Maximum | German corporate | Trade tax purposes | Belgian corporate tax purposes | |||||||
USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||
Income Taxes Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Surtax on dividend distributions | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' |
Distributed dividend | ' | ' | ' | ' | ' | ' | $8.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings of foreign subsidiaries subject to permanent reinvestment plan | ' | 900 | 1,000 | ' | ' | ' | ' | 11 | ' | ' | ' | ' | ' | ' | ' | ' |
Net incremental tax benefit | 11.1 | ' | ' | ' | ' | 3.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax related to non-cash dividend distributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' | ' | ' | ' | ' |
Provision for income taxes | ' | ' | ' | 17.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letter of credit collateralized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.9 | ' | ' | ' | ' | ' |
Potential tax liability full amount for the proposed adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.7 | ' | ' | ' | ' |
Unrecognized tax benefits impact on effective tax rate | ' | 29.2 | 27.9 | 23.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (decrease) in unrecognized tax benefits | ' | 8.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued interest and penalties during the period | ' | 1.3 | 0.9 | 0.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued interest and penalties end of the period | ' | 5 | 4.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net operating loss carryforwards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 842 | 127 | 102 |
Deferred income tax asset valuation allowance | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity ownership percentage | ' | ' | ' | ' | 32.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Controlling interest in subsidiary | ' | ' | ' | ' | 63.00% | ' | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' |
Income tax expense (benefit) | ' | ($91) | $104.80 | $169.90 | $11.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Changes_in_Uncert
Income Taxes - Changes in Uncertain Tax Positions (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Unrecognized tax benefits: | ' | ' | ' |
Amount beginning of year | $33.40 | $23 | $37.40 |
Net increase: | ' | ' | ' |
Tax positions taken in prior periods | 0.5 | 1.1 | 0.5 |
Tax positions taken in current period | 11.3 | 11 | 6 |
Settlements with taxing authorities—cash paid | ' | -0.1 | ' |
Lapse due to applicable statute of limitations | 3.4 | -1.8 | -20.6 |
Changes in currency exchange rates | -0.8 | 0.2 | -0.3 |
Amount at end of year | 47.9 | 33.4 | 23 |
Basic Management Inc And Landwell | ' | ' | ' |
Net increase: | ' | ' | ' |
Acquisition of BMI and Landwell | $0.10 | ' | ' |
Noncontrolling_Interest_in_Sub2
Noncontrolling Interest in Subsidiaries - Noncontrolling Interest in Subsidiaries (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Noncontrolling interest in net assets: | ' | ' |
Noncontrolling interest in subsidiaries | $391.50 | $358.10 |
Basic Management, Inc. | ' | ' |
Noncontrolling interest in net assets: | ' | ' |
Noncontrolling interest in subsidiaries | 33.7 | ' |
Landwell | ' | ' |
Noncontrolling interest in net assets: | ' | ' |
Noncontrolling interest in subsidiaries | 27.8 | ' |
Kronos Worldwide, Inc. | ' | ' |
Noncontrolling interest in net assets: | ' | ' |
Noncontrolling interest in subsidiaries | 241.9 | 267 |
NL | ' | ' |
Noncontrolling interest in net assets: | ' | ' |
Noncontrolling interest in subsidiaries | 74.5 | 77.8 |
CompX | ' | ' |
Noncontrolling interest in net assets: | ' | ' |
Noncontrolling interest in subsidiaries | $13.60 | $13.30 |
Noncontrolling_Interest_in_Sub3
Noncontrolling Interest in Subsidiaries - Noncontrolling Interest in Net Income (Loss) of Subsidiaries (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Noncontrolling interest in net income (loss) of subsidiaries: | ' | ' | ' |
Noncontrolling interest in net income (loss) of subsidiaries | ($28.90) | $62.30 | $77.50 |
Kronos Worldwide, Inc. | ' | ' | ' |
Noncontrolling interest in net income (loss) of subsidiaries: | ' | ' | ' |
Noncontrolling interest in net income (loss) of subsidiaries | -20.3 | 42.6 | 62.6 |
NL | ' | ' | ' |
Noncontrolling interest in net income (loss) of subsidiaries: | ' | ' | ' |
Noncontrolling interest in net income (loss) of subsidiaries | -9.4 | 15.2 | 13.9 |
CompX | ' | ' | ' |
Noncontrolling interest in net income (loss) of subsidiaries: | ' | ' | ' |
Noncontrolling interest in net income (loss) of subsidiaries | $0.80 | $4.50 | $1 |
Noncontrolling_Interest_in_Sub4
Noncontrolling Interest in Subsidiaries - Changes in Ownership Interest in Subsidiaries (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Effects Of Changes Net [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) attributable to Valhi stockholders | $15.70 | ($34.20) | ($39.70) | ($39.80) | $3.50 | $23 | $44.30 | $89 | ($98) | $159.80 | $217.50 |
Transfers from noncontrolling interest: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of subsidiary stock | ' | ' | ' | ' | ' | ' | ' | ' | -0.4 | 0.2 | 0.4 |
Net income (loss) attributable to Valhi stockholders and change from noncontrolling interest in subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ($98.40) | $160 | $217.90 |
Valhi_Stockholders_Equity_Sche
Valhi Stockholder's Equity - Schedule of Common Stock Outstanding (Detail) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 |
Schedule Of Stockholders Equity [Line Items] | ' | ' | ' | ' |
Shares of common stock, Issued, beginning balance | 355.2 | 355.2 | 355.2 | ' |
Shares of common stock, Issued, ending balance | ' | 355.2 | 355.2 | ' |
Shares of common stock, Treasury, beginning balance | ' | -13.2 | -13.2 | -12.2 |
Shares of common stock, Treasury, acquired | -1 | ' | ' | ' |
Shares of common stock, Outstanding, beginning balance | 341 | 342 | 342 | ' |
Shares of common stock, Outstanding, ending balance | ' | 342 | 342 | ' |
Valhi_Stockholders_Equity_Addi
Valhi Stockholder's Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||
In Millions, except Share data, unless otherwise specified | 31-May-12 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2012 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 |
Long Term Incentive Compensation Plan | Long Term Incentive Compensation Plan | Director Plan | Director Plan | Director Plan | Series A Preferred Stock | Common Stock | NL | NL | NL | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | CompX | ||||||
Director Plan | Director Plan | Director Plan | |||||||||||||||||||
Schedule Of Stockholders Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | 500,000,000 | 500,000,000 | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock split proportion | '3-for-1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares available for purchase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | 1,950,000 | ' | ' | ' | ' | ' |
Treasury stock, shares | ' | 13,200,000 | ' | 13,200,000 | 12,200,000 | ' | ' | ' | ' | ' | ' | ' | 14,400,000 | 14,400,000 | ' | 1,700,000 | 1,700,000 | 1,700,000 | 364,000 | ' | ' |
Repurchased shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49,000 | 1,400,000 | ' | ' | ' | ' |
Aggregate purchase price of shares purchased by subsidiary | ' | ' | $8.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12.60 | ' | ' | ' | ' |
Percentage of shares held by majority-owned subsidiary that has to be considered for voting purpose | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock liquidation preference, per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $133,466.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, aggregate liquidation preference | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $667.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, par value | ' | $0.01 | ' | $0.01 | ' | ' | ' | ' | ' | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-cumulative dividend on preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding stock options | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares awarded under new plan | ' | ' | ' | ' | ' | ' | ' | 5,000 | 6,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock available for future grant | ' | ' | ' | ' | ' | ' | ' | 189,000 | ' | ' | ' | ' | ' | ' | 190,000 | ' | ' | ' | ' | 190,000 | 190,000 |
Valhi_Stockholders_Equity_Accu
Valhi Stockholder's Equity - Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Marketable securities, Balance at beginning of year | $2.10 | $6.40 | $14.60 |
Marketable securities, Unrealized gain (loss) arising during the year | ' | 4.1 | -8.2 |
Common stock sale | 0.7 | -8.4 | ' |
Marketable securities, Balance at end of year | 2.8 | 2.1 | 6.4 |
Currency translation, Balance at beginning of year | 53.3 | 37.5 | 59.2 |
Currency translation, Arising during the year | 5.9 | 23 | -21.7 |
Currency translation, Common stock sale | ' | -7.2 | ' |
Currency translation, Balance at end of year | 59.2 | 53.3 | 37.5 |
Balance at beginning of year | -42 | -23.3 | 21.2 |
Other comprehensive income (loss) | 34 | -18.7 | -44.5 |
Balance at end of year | -8 | -42 | -23.3 |
Pension Plan Defined Benefit | ' | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Balance at beginning of year | -101.5 | -72.6 | -59.8 |
Amortization of prior service cost and net losses included in net periodic pension cost | 8.4 | 6.1 | 4 |
Net actuarial gain (loss) arising during year | 12.6 | -35 | -16.8 |
Plan amendment | 4 | ' | ' |
Balance at end of year | -76.5 | -101.5 | -72.6 |
OPEB | ' | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Balance at beginning of year | 4.1 | 5.4 | 7.2 |
Amortization of prior service cost and net losses included in net periodic pension cost | -1.4 | -1 | -0.5 |
Net actuarial gain (loss) arising during year | 1.3 | -0.3 | -1.3 |
Plan amendment | 2.5 | ' | ' |
Balance at end of year | $6.50 | $4.10 | $5.40 |
Other_Income_Net_Schedule_of_C
Other Income, Net - Schedule of Components of Other Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Securities earnings: | ' | ' | ' |
Dividends and interest | $26.40 | $28.40 | $29.20 |
Securities transactions, net | 0.2 | 21.8 | -0.6 |
Total | 26.6 | 50.2 | 28.6 |
Equity in earnings | 0.5 | -0.2 | -0.5 |
Insurance recoveries | 9.4 | 3.3 | 16.9 |
Currency transactions, net | -3.8 | -1 | 3 |
Disposal of property and equipment, net | -0.5 | 1.5 | -0.9 |
Gain on bargain purchase and remeasurement of our existing investment in acquiree | 54.6 | ' | ' |
Litigation settlement gains | ' | 14.7 | ' |
Other, net | 1.2 | 2.1 | 1.9 |
Total | $88 | $70.60 | $49 |
Other_Income_Net_Additional_In
Other Income, Net - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 6 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | 31-May-12 | Oct. 31, 2011 | Apr. 30, 2009 | Oct. 31, 2008 | Jun. 30, 2012 |
Amalgamated Sugar Company LLC | Amalgamated Sugar Company LLC | Amalgamated Sugar Company LLC | TIMET | TIMET | NL | NL | NL | NL | NL | NL | ||||
Certain Real Property Litigation Settlement | Certain Real Property Litigation Settlement | Certain Real Property Litigation Settlement | Certain Real Property Litigation Settlement | Certain Real Property Litigation Settlement | ||||||||||
Disclosure Other Income Net Additional Information Detail [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends and interest income | $26.40 | $28.40 | $29.20 | $25.40 | $25.40 | $25.40 | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in common stock | ' | ' | ' | ' | ' | ' | ' | 6.5 | ' | ' | ' | ' | ' | ' |
Percentage of outstanding common stock held | ' | ' | ' | ' | ' | ' | ' | 3.70% | ' | ' | ' | ' | ' | ' |
Sale of common stock | ' | ' | ' | ' | ' | ' | 107.6 | ' | ' | ' | ' | ' | ' | ' |
Sale of common stock, price per share | ' | ' | ' | ' | ' | ' | $16.50 | ' | ' | ' | ' | ' | ' | ' |
Pre-tax gain on sale of shares | ' | ' | ' | ' | ' | ' | 21.6 | ' | ' | ' | ' | ' | ' | ' |
Disposal of property and equipment, net | -0.5 | 1.5 | -0.9 | ' | ' | ' | ' | ' | 3.2 | ' | ' | ' | ' | ' |
Promissory note received | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15 | ' |
Interest payable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.75% | ' |
Aggregate cash received | 0 | 15.6 | 0 | ' | ' | ' | ' | ' | ' | 15.6 | ' | 11.8 | ' | ' |
Litigation settlement gains | ' | 14.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.7 |
Collection of real-estate related note receivable | $3 | $0 | $15 | ' | ' | ' | ' | ' | ' | ' | $15 | ' | ' | ' |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Share data in Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Contran | Intercorporate Services Agreements Fees | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Related party transaction | $36,100,000 | $32,000,000 | $27,100,000 |
Contran | Intercorporate Services Agreements Fees | Scenario, Forecast | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Related party transaction | 33,400,000 | ' | ' |
Contran | Pledge Fee Received | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Revenue and other income from related party transactions | 800,000 | ' | ' |
Contran | Revolving Credit Facility | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Interest expense | 19,000,000 | 100,000 | 500,000 |
Contran | Unsecured Revolving Demand Note Receivable | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Unsecured Revolving Demand Promissory note | ' | ' | 65,000,000 |
Interest at prime plus rate | ' | 3.00% | ' |
Unsecured Revolving Demand Promissory Note Receivable, due on demand no earlier than date | 31-Dec-14 | 31-Dec-14 | ' |
Loans outstanding to Contran | ' | ' | 11,200,000 |
Loans to related party | ' | 52,800,000 | ' |
Loan repayment received | ' | 64,000,000 | ' |
Contran | Interest Income | Unsecured Revolving Demand Note Receivable | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Revenue and other income from related party transactions | ' | 800,000 | 36,000 |
TIMET | BMI | Sale Of Insurance Coverage | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Loans to related party | ' | ' | 1,400,000 |
Revenue and other income from related party transactions | ' | ' | 2,800,000 |
Promissory note bears interest rate | ' | ' | 3.00% |
TIMET | BMI | Cash | Sale Of Insurance Coverage | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Revenue and other income from related party transactions | ' | ' | 1,400,000 |
CompX | Note Payable TFMC | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Interest expense | ' | 300,000 | 500,000 |
Tremont | Contran | Promissory Notes | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Guarantee Obligations, maximum exposure | 19,100,000 | ' | ' |
Tremont | Contran | Present Value | Deferred payment | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Guarantee Obligations, maximum exposure | 8,200,000 | ' | ' |
Tremont | Contran | Face value | Deferred payment | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Guarantee Obligations, maximum exposure | 11,100,000 | ' | ' |
TIMET | Utility Services Fee | BMI | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Related party transaction | ' | 1,800,000 | 1,600,000 |
WCS | Contran | Surety Bond | VALHI, INC. | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Guarantee Obligations, maximum exposure | 32,200,000 | ' | ' |
WCS | Contran | Additional Collateral Trust | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Related party transaction | ' | 700,000 | 100,000 |
Guarantee Obligations, maximum exposure | 119,500,000 | ' | ' |
Guarantee Obligations, estimated exposure | ' | ' | 56,000,000 |
Pledged marketable securities released on | 30-Nov-16 | ' | ' |
WCS | Contran | Performance Guarantee | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Guarantee Obligations, maximum exposure | 5,500,000 | 5,500,000 | 5,500,000 |
WCS | Contran | Letter of credit | Performance Guarantee | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Guarantee Obligations, maximum exposure | 6,000,000 | 6,000,000 | 6,000,000 |
Costs related to the Letter of Credit | 100,000 | 100,000 | 100,000 |
LPC | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Purchase of Ti02 from LPC | 224,500,000 | 250,200,000 | 144,800,000 |
Sales of feedstock ore to LPC | $141,100,000 | $143,700,000 | $93,000,000 |
Kronos Worldwide, Inc. | Contran | Stock Pledged as Collateral | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Stock pledged as collateral | 12 | ' | ' |
Related_Party_Transactions_Rec
Related Party Transactions - Receivables from and Payables to Affiliates (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current receivables from affiliates: | ' | ' |
Receivable from affiliates | $14.70 | $0.30 |
Current payables to affiliates: | ' | ' |
Payable to affiliates | 51.5 | 52.8 |
Payable to affiliate included in long-term debt | 376.5 | 157.6 |
Louisiana Pigment Company | ' | ' |
Current receivables from affiliates: | ' | ' |
Receivable from affiliates | 14.2 | 0 |
Current payables to affiliates: | ' | ' |
Payable to affiliates | 21.1 | 23.4 |
Contran | ' | ' |
Current receivables from affiliates: | ' | ' |
Receivable from affiliates | 0.5 | 0.3 |
Current payables to affiliates: | ' | ' |
Income taxes, net | 4.3 | 2.6 |
Trade items | 26.1 | 26.8 |
VALHI, INC. | Contran | Credit Facility | ' | ' |
Current payables to affiliates: | ' | ' |
Payable to affiliate included in long-term debt | 206.5 | 157.6 |
Kronos Worldwide, Inc. | Contran | Credit Facility | ' | ' |
Current payables to affiliates: | ' | ' |
Payable to affiliate included in long-term debt | $170 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Changes in Accrued Environmental Remediation and Related Costs (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Commitments And Contingent Liabilities [Line Items] | ' | ' | ' |
Balance at the beginning of the year | $50.20 | $43.20 | $42.30 |
Additions charged to expense, net | 69 | 15 | 11.3 |
Acquired | 7 | ' | ' |
Payments, net | -3.4 | -8.1 | -10.4 |
Changes in currency exchange rates | -0.1 | 0.1 | ' |
Balance at the end of the year | 122.7 | 50.2 | 43.2 |
Amounts recognized in our Consolidated Balance Sheet at the end of the year: | ' | ' | ' |
Current liabilities | 9.1 | 7.6 | 8.6 |
Noncurrent liabilities | 113.6 | 42.6 | 34.6 |
Total | $122.70 | $50.20 | $43.20 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Approximate Percentage of TiO2 Sales by Volume for Segments (Detail) (Geographic Concentration Risk, Component Segment) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Europe | ' | ' | ' |
Schedule Of Sales Revenue By Business Segment [Line Items] | ' | ' | ' |
Sale of TiO2, percentage | 49.00% | 47.00% | 53.00% |
North America | ' | ' | ' |
Schedule Of Sales Revenue By Business Segment [Line Items] | ' | ' | ' |
Sale of TiO2, percentage | 33.00% | 35.00% | 32.00% |
Commitments_and_Contingencies_3
Commitments and Contingencies - Future Minimum Payments under Noncancellable Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Future Minimum Payments Under Non Cancelable Operating Leases With Initial Terms Of One Year Or More [Line Items] | ' |
2014 | $12.50 |
2015 | 10.4 |
2016 | 5.1 |
2017 | 3.6 |
2018 | 3.2 |
2019 and thereafter | 23.4 |
Total | $58.20 |
Commitments_and_Contingencies_4
Commitments and Contingencies - Future Minimum Payments under Noncancellable Operating Leases (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Future Minimum Payments Under Non Cancelable Operating Leases With Initial Terms Of One Year Or More [Line Items] | ' |
Future minimum lease payments | $58.20 |
Leverkusen TiO2 production facility | ' |
Future Minimum Payments Under Non Cancelable Operating Leases With Initial Terms Of One Year Or More [Line Items] | ' |
Future minimum lease payments | $18 |
Commitments_and_Contingencies_5
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Chemicals | Chemicals | Chemicals | Chemicals | Chemicals | Chemicals | Chemical Segment | Chemical Segment | Surety Bond | Additional Collateral Trust | Additional Collateral Trust | Additional Collateral Trust | Additional Collateral Trust | Additional Collateral Trust | Other Environmental Cleanup Matters | NL | NL | NL | NL | NL | NL | NL | NL | NL | NL | Kronos Worldwide, Inc. | Behr Process Corporation | Behr Process Corporation | Valhi | Valhi | Valhi | |||||
Component Products Segment | Component Products Segment | Component Products Segment | Component Products Segment | Waste Management Segment | Waste Management Segment | Waste Management Segment | Top Ten Customers | Top Ten Customers | Top Ten Customers | TiO2 Product | TiO2 Product | TiO2 Product | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Feedstock Ore | Other Supply And Service Contracts | Waste Control Specialists | Waste Control Specialists | Waste Control Specialists | Waste Control Specialists | Waste Control Specialists | Waste Control Specialists | Cases | One Beacon | Environmental Remediation Sites Nl Named As Prp Or Defendant | Insurance claims | Insurance claims | Environmental Obligations | Environmental Obligations | California Lead Paint Litigation | Product Liability And Occupational Exposure Litigation Claims | Product Liability And Occupational Exposure Litigation Claims | Pricing Litigation Settlement | Chemicals | Chemicals | Surety Bond | Surety Bond | Surety Bond | ||||||
Harley Davidson Inc | Harley Davidson Inc | Harley Davidson Inc | San Mateo Postal Data | Tennessee Valley Authority | Studsvik, Inc. | Department of Energy | Component Products Segment | Component Products Segment | Component Products Segment | Customer | Top Ten Customers | Top Ten Customers | Top Ten Customers | site | Lead Pigment Litigation With Insurance Carriers | Lead Pigment Litigation With Insurance Carriers | Certain Obligations Discounted to Present Value | Pending Claims | Administratively Dismissed Claims | Customer Concentration Risk | Customer Concentration Risk | Contran | Contran | Contran | |||||||||||||||||||||
Plaintiff | Plaintiff | Waste Control Specialists | Waste Control Specialists | Waste Control Specialists | |||||||||||||||||||||||||||||||||||||||||
Cases | |||||||||||||||||||||||||||||||||||||||||||||
Commitments And Contingent Liabilities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of cases settled and dismissed and found not liable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period by which loss contingency claims settled and dismissed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for litigation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Additions charged to expense, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,300,000 | 5,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate payments related to additions charged to expense on undiscounted basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments related to additions charged to expense on undiscounted basis, 2012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments related to additions charged to expense on undiscounted basis, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments related to additions charged to expense on undiscounted basis, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments related to additions charged to expense on undiscounted basis, 2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments related to additions charged to expense on undiscounted basis, 2016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate payments related to additions charged to expense on discounted basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrual for reasonably estimable environmental remediation and related matters | 122,700,000 | 50,200,000 | 43,200,000 | 42,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,000,000 | ' | ' | 114,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of sites associated with remediation ad related costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Upper end range, estimate costs for remediation and related matters | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 154,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of sites for which NL not currently able to estimate range of costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Insurance recoveries | 9,400,000 | 3,300,000 | 16,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,900,000 | 7,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation settlement receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cases pending | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,130 | ' | ' | ' | ' | ' | ' | ' |
Number of plaintiffs involved | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,643 | 8,298 | ' | ' | ' | ' | ' | ' |
Case conclusion settlement amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000,000 | ' | ' | ' | ' | ' |
General and administrative | 375,100,000 | 273,300,000 | 268,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000,000 | ' | ' | ' | ' | ' |
Concentration risk percentage | ' | ' | ' | ' | 12.00% | 12.00% | 13.00% | 13.00% | 30.00% | 15.00% | 10.00% | 42.00% | 38.00% | 39.00% | 90.00% | 90.00% | 92.00% | 34.00% | 34.00% | 30.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 10.00% | ' | ' | ' |
Sale of TiO2, number of customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum purchase commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 820,000,000 | 123,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rent expense | 15,800,000 | 16,300,000 | 13,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Surety bond purchased from third party insurance company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 119,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,200,000 | 23,400,000 | 20,000,000 |
Collateral trust as a percent of value of bonds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash payments to collateral trust | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Surety bond purchased of state of Texas in aggregate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,350,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in restricted cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $18,000,000 | $18,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial_Instruments_Marketab
Financial Instruments - Marketable Securities and Financial Instruments on Fair Value Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | $3.80 | $0.90 |
Marketable securities | 253.3 | 256.8 |
Currency forward contracts | -1 | 1.8 |
Quoted Prices in Active Markets (Level 1) | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 2.4 | ' |
Marketable securities | 1.4 | 3.5 |
Currency forward contracts | -1 | 1.8 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | 1.4 | 0.9 |
Marketable securities | 1.9 | 3.3 |
Currency forward contracts | ' | ' |
Level 3 Inputs | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Marketable securities | ' | ' |
Marketable securities | 250 | 250 |
Currency forward contracts | ' | ' |
Financial_Instruments_Financia
Financial Instruments - Financial Instruments not Carried at Fair Value (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Cash, cash equivalents and restricted cash equivalents | $186,800,000 | $395,900,000 |
Deferred payment obligation | 8,200,000 | ' |
Noncontrolling interest in subsidiaries | 391,500,000 | 358,100,000 |
Valhi stockholders' equity, Carrying amount | 601,300,000 | 733,600,000 |
Cash, cash equivalents and restricted cash equivalents, fair value | 186,800,000 | 395,900,000 |
Deferred payment obligation, Fair value | 8,200,000 | ' |
Valhi stockholders' equity, Fair value | 5,961,700,000 | 4,238,900,000 |
Kronos Worldwide, Inc. | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Noncontrolling interest in subsidiaries | 241,900,000 | 267,000,000 |
Noncontrolling interest, Fair value | 431,600,000 | 442,600,000 |
Kronos Worldwide, Inc. | Note Payable | Contran | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Debt instrument | 170,000,000 | ' |
Debt instrument, fair value | 170,000,000 | ' |
Kronos Worldwide, Inc. | Term Loan | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Loans, Carrying amount | ' | 384,500,000 |
Debt instrument, fair value | ' | 396,800,000 |
Kronos Worldwide, Inc. | Bank Credit Facility | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Variable rate credit facility, Carrying Amount | 11,100,000 | 13,200,000 |
Variable rate credit facility, Fair Value | 11,100,000 | 13,200,000 |
Snake River | Fixed Rate Loans | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Loans, Carrying amount | 250,000,000 | 250,000,000 |
Debt instrument, fair value | 250,000,000 | 250,000,000 |
WCS | Fixed Rate Loans | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Loans, Carrying amount | 72,400,000 | 77,100,000 |
Debt instrument, fair value | 72,400,000 | 77,100,000 |
Valhi | Credit Facility | Contran | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Variable rate credit facility, Carrying Amount | 206,500,000 | 157,600,000 |
Variable rate credit facility, Fair Value | 206,500,000 | 157,600,000 |
CompX | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Noncontrolling interest in subsidiaries | 13,600,000 | 13,300,000 |
Noncontrolling interest, Fair value | 23,100,000 | 23,400,000 |
CompX | Promissory Note | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Promissory note | ' | 18,500,000 |
Debt instrument, fair value | ' | 18,500,000 |
Tremont | Promissory Note | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Debt instrument | 19,100,000 | ' |
Debt instrument, fair value | 19,100,000 | ' |
BMI | Bank note payable | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Debt instrument | 11,200,000 | ' |
Debt instrument, fair value | 11,200,000 | ' |
Landwell | City of Henderson | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Debt instrument | 3,100,000 | ' |
Debt instrument, fair value | 3,100,000 | ' |
NL | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Noncontrolling interest in subsidiaries | 74,500,000 | 77,800,000 |
Noncontrolling interest, Fair value | $92,600,000 | $94,800,000 |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | USD ($) | Amalgamated Sugar Company LLC | Forward Contracts | Forward Contracts | Forward Contracts | Forward Contracts | Forward Contracts | Forward Contracts | Forward Contracts | Forward Contracts | Forward Contracts | Forward Contracts | Forward Contracts | Kronos Worldwide, Inc. | |
USD ($) | USD ($) | USD ($) | Wells Fargo Bank Na | DnB Nor Bank ASA | DnB Nor Bank ASA | Minimum | Minimum | Minimum | Maximum | Maximum | Maximum | Term Loan | |||
Canadian Dollar | USD ($) | EUR (€) | Wells Fargo Bank Na | DnB Nor Bank ASA | DnB Nor Bank ASA | Wells Fargo Bank Na | DnB Nor Bank ASA | DnB Nor Bank ASA | Per Thousand Dollar Principal Amount | ||||||
USD ($) | Canadian Dollar | U S Dollar | Euros | Canadian Dollar | U S Dollar | Euros | USD ($) | ||||||||
Financial Instrument At Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value of currency forward contracts | ($1,000,000) | $1,800,000 | ' | ($1,000,000) | $1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value of currency forward contracts included accounts and other receivables | ' | ' | ' | 200,000 | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value of currency forward contracts included accounts payable and accrued liabilities | ' | ' | ' | 1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated market price of the notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,017.50 |
Principal amount of debt instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 |
Marketable securities | 253,300,000 | 256,800,000 | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount currency forward contract | ' | ' | ' | ' | ' | 36,000,000 | 20,000,000 | 20,000,000 | ' | ' | ' | ' | ' | ' | ' |
Exchange floor rate | ' | ' | ' | ' | ' | ' | ' | ' | 1.02 | 6.12 | 8.04 | 1.06 | 6.25 | 8.41 | ' |
Maturity rate of derivative | ' | ' | ' | ' | ' | $3,000,000 | $5,000,000 | € 5,000,000 | ' | ' | ' | ' | ' | ' | ' |
Quarterly_Results_of_Operation2
Quarterly Results of Operations - Schedule of Quarterly Results of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net sales | $400.10 | $448.20 | $516.10 | $499.20 | $427.40 | $508.70 | $568.40 | $582.80 | $1,863.60 | $2,087.30 | $2,025.10 |
Gross margin | 55.5 | 48.6 | 17.2 | 12.9 | 55.3 | 97.4 | 162.1 | 260.4 | 134.2 | 575.2 | 746.7 |
Operating income (loss) | -4.2 | -42.5 | -46.8 | -45.2 | -2.2 | 41.1 | 103.2 | 203.3 | -138.7 | 345.4 | 521.4 |
Net income (loss) | 10.8 | -40.9 | -48.6 | -48.2 | 9.2 | 31.8 | 61.5 | 119.6 | -126.9 | 222.1 | 295 |
Amounts attributable to Valhi stockholders: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations | ' | ' | ' | ' | -12.6 | 21.8 | 43.7 | 88.5 | -98 | 141.4 | 214.5 |
Total discontinued operations, net of tax and noncontrolling interest | ' | ' | ' | ' | 16.1 | 1.2 | 0.6 | 0.5 | ' | 18.4 | 3 |
Net income (loss) attributable to Valhi stockholders | $15.70 | ($34.20) | ($39.70) | ($39.80) | $3.50 | $23 | $44.30 | $89 | ($98) | $159.80 | $217.50 |
Earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations | ' | ' | ' | ' | ($0.04) | $0.06 | $0.13 | $0.26 | ($0.29) | $0.41 | $0.63 |
Income (loss) from discontinued operations | ' | ' | ' | ' | $0.05 | $0.01 | ' | ' | ' | $0.06 | $0.01 |
Net income (loss) per share | $0.05 | ($0.10) | ($0.12) | ($0.12) | $0.01 | $0.07 | $0.13 | $0.26 | ($0.29) | $0.47 | $0.64 |
Quarterly_Results_of_Operation3
Quarterly Results of Operations - Schedule of Quarterly Results of Operations (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 6 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | |||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Mar. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 31, 2013 | Feb. 28, 2013 |
Net of Noncontrolling Interest | Attributable to Parent | Attributable to Parent | Attributable to Parent | Attributable to Parent Net of Tax | Attributable to Parent Net of Tax | Attributable to Parent Net of Tax | Attributable to Parent Net of Tax | NL | NL | NL | NL | NL | CompX | CompX | CompX | CompX | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | Kronos Worldwide, Inc. | |||||
BM and Landwell | Certain Real Property Litigation Settlement | Attributable to Parent Net of Tax | Attributable to Parent Net of Tax | Attributable to Parent Net of Tax | Attributable to Parent Net of Tax | Unabsorbed Fixed Costs | Foreign Pension Plan Defined Benefit | Severance and Other Back-to-work Expenses | Principal Prepayment | Principal Prepayment | |||||||||||||||||
Certain Real Property Litigation Settlement | Pension Curtailment Charge | Term Loan | Term Loan | ||||||||||||||||||||||||
Canada | |||||||||||||||||||||||||||
Loss on prepayment of debt | ' | ' | ' | ' | ' | $3.40 | ' | $3.70 | ' | $1.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation settlement gain | ' | ' | 14.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.7 | 17.9 | ' | 7.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on securities transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill impairment | ' | ' | 6.4 | ' | ' | ' | 5.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets held for sale write-down | ' | ' | 1.2 | 1.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.4 | 1.1 | 0.8 | ' | ' | ' | ' | ' | ' |
Loss on sale | ' | -0.5 | 1.5 | -0.9 | ' | ' | ' | ' | ' | ' | ' | ' | 3.2 | ' | ' | 1.7 | ' | 0.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incremental tax charge related to sale of TIMET common stock | ' | ' | ' | ' | 6.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax positions taken in current period | ' | 11.3 | 11 | 6 | 2.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for income taxes | ' | ' | ' | ' | 2.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of Principal Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100 | 290 |
Pre-tax charges of unabsorbed fixed production and other costs | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28 | 19 | 7 | 2 | ' | ' |
Insurance recoveries | ' | 9.4 | 3.3 | 16.9 | ' | ' | ' | ' | 4.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bargain purchase after-tax gain and remeasurement of existing investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $46.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |