Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 04, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | VHI | |
Entity Registrant Name | VALHI INC /DE/ | |
Entity Central Index Key | 59,255 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 339,170,949 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 220.4 | $ 159.8 |
Restricted cash equivalents | 11.8 | 12.5 |
Marketable securities | 0.8 | 4.4 |
Accounts and other receivables, net | 366.5 | 272.2 |
Inventories, net | 359.1 | 360.6 |
Land held for development | 16.7 | 10.9 |
Other current assets | 13 | 17 |
Total current assets | 988.3 | 837.4 |
Other assets: | ||
Marketable securities | 257.2 | 253.5 |
Investment in TiO2 manufacturing joint venture, Louisiana Pigment Company, L.P. (“LPC”) | 70.5 | 78.9 |
Goodwill | 379.7 | 379.7 |
Deferred income taxes | 124.7 | 1.2 |
Other noncurrent assets | 196.9 | 238 |
Total other assets | 1,029 | 951.3 |
Property and equipment: | ||
Land | 47.6 | 45.4 |
Buildings | 250.1 | 237.5 |
Treatment, storage and disposal facility | 159.6 | |
Equipment | 1,084.2 | 1,070.6 |
Mining properties | 32.1 | 35.1 |
Construction in progress | 52.7 | 41.8 |
Gross property and equipment | 1,466.7 | 1,590 |
Less accumulated depreciation | 911.9 | 935.5 |
Net property and equipment | 554.8 | 654.5 |
Total assets | 2,572.1 | 2,443.2 |
Current liabilities: | ||
Current maturities of long-term debt | 7.6 | 7.8 |
Accounts payable and accrued liabilities | 301 | 281.2 |
Income taxes | 11.5 | 5.1 |
Total current liabilities | 320.1 | 294.1 |
Noncurrent liabilities: | ||
Long-term debt | 985 | 957.2 |
Deferred income taxes | 243.3 | 275 |
Accrued pension costs | 258.5 | 240.2 |
Accrued environmental remediation and related costs | 110.1 | 107.3 |
Accrued postretirement benefits costs | 11.1 | 11.1 |
Other liabilities | 120.2 | 113.9 |
Total noncurrent liabilities | 1,728.2 | 1,704.7 |
Equity: Valhi stockholders' equity: | ||
Preferred stock | 667.3 | 667.3 |
Common stock | 3.6 | 3.6 |
Retained deficit | (190.3) | (198.5) |
Accumulated other comprehensive loss | (204.9) | (221.9) |
Treasury stock | (49.6) | (49.6) |
Total Valhi stockholders’ equity | 226.1 | 200.9 |
Noncontrolling interest in subsidiaries | 297.7 | 243.5 |
Total equity | 523.8 | 444.4 |
Total liabilities and equity | 2,572.1 | 2,443.2 |
Commitments and contingencies (Notes 13 and 16) |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues and other income: | ||||
Net sales | $ 502.2 | $ 398.6 | $ 929.1 | $ 752.1 |
Other income, net | 7.7 | 10.7 | 15.3 | 22.1 |
Total revenues and other income | 509.9 | 409.3 | 944.4 | 774.2 |
Costs and expenses: | ||||
Cost of sales | 358.4 | 336.4 | 666.4 | 647.9 |
Selling, general and administrative | 77.2 | 64.6 | 148.3 | 127.8 |
Contract related intangible asset impairment | 5.1 | |||
Long-lived asset impairment | 170.6 | 170.6 | ||
Interest | 16 | 15.8 | 31.6 | 31.5 |
Total costs and expenses | 622.2 | 416.8 | 1,016.9 | 812.3 |
Loss before income taxes | (112.3) | (7.5) | (72.5) | (38.1) |
Income tax expense (benefit) | (167.4) | 0.2 | (149.4) | (8.4) |
Net income (loss) | 55.1 | (7.7) | 76.9 | (29.7) |
Noncontrolling interest in net income (loss) of subsidiaries | 46.3 | 0.8 | 55.4 | (1.7) |
Net income (loss) attributable to Valhi stockholders | $ 8.8 | $ (8.5) | $ 21.5 | $ (28) |
Amounts attributable to Valhi stockholders: | ||||
Basic and diluted net income (loss) per share | $ 0.03 | $ (0.02) | $ 0.06 | $ (0.08) |
Cash dividends per share | $ 0.02 | $ 0.02 | $ 0.04 | $ 0.04 |
Basic and diluted weighted average shares outstanding | 342 | 342 | 342 | 342 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net income (loss) | $ 55.1 | $ (7.7) | $ 76.9 | $ (29.7) |
Other comprehensive income (loss), net of tax: | ||||
Currency translation | 12.6 | (4.1) | 20.1 | 7.8 |
Marketable securities | (0.5) | 0.8 | (0.8) | 0.5 |
Interest rate swap | (0.4) | (0.7) | 0.1 | (3) |
Total other comprehensive income (loss), net | 12.3 | (1.7) | 22.6 | 9.9 |
Comprehensive income (loss) | 67.4 | (9.4) | 99.5 | (19.8) |
Comprehensive income attributable to noncontrolling interest | 49.2 | 0.9 | 61 | 1.4 |
Comprehensive income (loss) attributable to Valhi stockholders | 18.2 | (10.3) | 38.5 | (21.2) |
Defined Benefit Pension Plans | ||||
Other comprehensive income (loss), net of tax: | ||||
Pension and other postretirement benefit plan | 0.8 | 2.6 | 3.6 | 5.2 |
OPEB | ||||
Other comprehensive income (loss), net of tax: | ||||
Pension and other postretirement benefit plan | $ (0.2) | $ (0.3) | $ (0.4) | $ (0.6) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 76.9 | $ (29.7) |
Depreciation and amortization | 33.2 | 34.5 |
Benefit plan expense greater than cash funding | 4.6 | 1.2 |
Deferred income taxes | (183.9) | (17) |
Distributions from Ti02 manufacturing joint venture, net | 8.4 | 6.6 |
Contract related intangible asset impairment | 5.1 | |
Long-lived asset impairment | 170.6 | |
Other, net | 1.5 | (0.4) |
Change in assets and liabilities: | ||
Accounts and other receivables, net | (77.8) | (53) |
Inventories, net | 22.6 | 58.8 |
Land held for development, net | 3.1 | (0.6) |
Accounts payable and accrued liabilities | 8.8 | (11.9) |
Accounts with affiliates | 0.3 | (0.5) |
Income taxes | 5.8 | (5.4) |
Other, net | 14.6 | 3.6 |
Net cash provided by (used in) operating activities | 88.7 | (8.7) |
Cash flows from investing activities: | ||
Capital expenditures | (30.5) | (26.6) |
Capitalized permit costs | (2.2) | (1.1) |
Purchases of marketable securities | (5.6) | (4.4) |
Disposals of marketable securities | 5.5 | 3.3 |
Other, net | (0.1) | |
Net cash used in investing activities | (32.8) | (28.9) |
Indebtedness: | ||
Borrowings | 175.7 | 149.2 |
Principal payments | (148.9) | (101.5) |
Deferred financing costs paid | 0.2 | |
Valhi cash dividends paid | (13.6) | (13.6) |
Distributions to noncontrolling interest in subsidiaries | (7) | (7) |
Net cash provided by financing activities | 6 | 27.1 |
Cash, cash equivalents and restricted cash and cash equivalents - net change from: | ||
Operating, investing and financing activities | 61.9 | (10.5) |
Effect of exchange rate on cash | 8.6 | 0.3 |
Balance at beginning of period | 196.5 | 229.1 |
Balance at end of period | 267 | 218.9 |
Cash paid for: | ||
Interest, net of capitalized interest | 30 | 29.9 |
Income taxes, net | 26.3 | 8.5 |
Noncash investing activities: | ||
Change in accruals for capital expenditures | 4 | $ 4.5 |
Noncash financing activities: | ||
Indebtedness borrowings paid directly to lender to settle refinanced indebtedness | 9.3 | |
Indebtedness principal payments paid directly by lender | (8.4) | |
Indebtedness borrowings paid directly to lender for debt issuance costs | $ (0.9) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF EQUITY - 6 months ended Jun. 30, 2017 - USD ($) $ in Millions | Total | Preferred stock | Common stock | Additional paid-in capital | Retained deficit | Accumulated other comprehensive loss | Treasury stock | Non-controlling interest |
Balance at Dec. 31, 2016 | $ 444.4 | $ 667.3 | $ 3.6 | $ (198.5) | $ (221.9) | $ (49.6) | $ 243.5 | |
Net income | 76.9 | 21.5 | 55.4 | |||||
Other comprehensive income, net | 22.6 | 17 | 5.6 | |||||
Cash dividends | (20.5) | $ (0.2) | (13.3) | (7) | ||||
Other, net | 0.4 | $ 0.2 | 0.2 | |||||
Balance at Jun. 30, 2017 | $ 523.8 | $ 667.3 | $ 3.6 | $ (190.3) | $ (204.9) | $ (49.6) | $ 297.7 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Note 1—Organization and basis of presentation: Organization — We are majority owned by a wholly-owned subsidiary of Contran Corporation (“Contran”), which owns approximately 93% of our outstanding common stock at June 30, 2017. All of Contran's outstanding voting stock is held by a family trust established for the benefit of Lisa K. Simmons and Serena Simmons Connelly and their children, for which Ms. Simmons and Ms. Connelly are co-trustees, or is held directly by Ms. Simmons and Ms. Connelly or entities related to them. Consequently, Ms. Simmons and Ms. Connelly may be deemed to control Contran and us. Basis of Presentation— Consolidated in this Quarterly Report are the results of our majority-owned and wholly-owned subsidiaries, including NL Industries, Inc., Kronos Worldwide, Inc., CompX International Inc., Waste Control Specialists LLC (“WCS”), Tremont LLC, Basic Management, Inc. (“BMI”) and The LandWell Company (“LandWell”). Kronos (NYSE: KRO), NL (NYSE: NL), and CompX (NYSE MKT: CIX) each file periodic reports with the Securities and Exchange Commission (“SEC”). The unaudited Condensed Consolidated Financial Statements contained in this Quarterly Report have been prepared on the same basis as the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 that we filed with the SEC on March 13, 2017 (the “2016 Annual Report”). In our opinion, we have made all necessary adjustments (which include only normal recurring adjustments, other than the long-lived asset impairment charge recognized in the second quarter of 2017 as discussed in Note 3, and the reversal of the deferred income tax asset valuation allowance recognized in the second quarter of 2017, as discussed in Note 13) in order to state fairly, in all material respects, our consolidated financial position, results of operations and cash flows as of the dates and for the periods presented. We have condensed the Consolidated Balance Sheet at December 31, 2016 contained in this Quarterly Report as compared to our audited Consolidated Financial Statements at that date, and we have omitted certain information and footnote disclosures (including those related to the Consolidated Balance Sheet at December 31, 2016) normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Our results of operations for the interim periods ended June 30, 2017 may not be indicative of our operating results for the full year. The Condensed Consolidated Financial Statements contained in this Quarterly Report should be read in conjunction with our 2016 Consolidated Financial Statements contained in our 2016 Annual Report. Unless otherwise indicated, references in this report to “we,” “us” or “our” refer to Valhi, Inc and its subsidiaries (NYSE: VHI), taken as a whole. |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 2—Business segment information: Business segment Entity % controlled at Chemicals Kronos 80 % Component products CompX 87 % Waste management WCS 100 % Real estate management and development BMI and LandWell 63% - 77 % Our control of Kronos includes 50% we hold directly and 30% held directly by NL. We own 83% of NL. Our control of CompX is through NL. We own 63% of BMI. Our control of LandWell includes the 27% we hold directly and 50% held by BMI. Three months ended Six months ended 2016 2017 2016 2017 (unaudited) (In millions) Net sales: Chemicals $ 356.0 $ 441.4 $ 674.5 $ 811.2 Component products 27.1 30.1 54.2 60.0 Waste management 11.1 20.5 16.3 42.0 Real estate management and development 4.4 10.2 7.1 15.9 Total net sales $ 398.6 $ 502.2 $ 752.1 $ 929.1 Cost of sales: Chemicals $ 301.0 $ 312.1 $ 579.5 $ 578.9 Component products 18.6 20.5 37.5 40.8 Waste management 13.6 17.9 25.3 34.6 Real estate management and development 3.2 7.9 5.6 12.1 Total cost of sales $ 336.4 $ 358.4 $ 647.9 $ 666.4 Gross margin: Chemicals $ 55.0 $ 129.3 $ 95.0 $ 232.3 Component products 8.5 9.6 16.7 19.2 Waste management (2.5 ) 2.6 (9.0 ) 7.4 Real estate management and development 1.2 2.3 1.5 3.8 Total gross margin $ 62.2 $ 143.8 $ 104.2 $ 262.7 Operating income (loss): Chemicals $ 12.7 $ 73.0 $ 15.7 $ 128.0 Component products 3.7 4.6 7.1 9.1 Waste management (7.1 ) (171.6 ) (17.9 ) (171.0 ) Real estate management and development .5 1.2 (5.4 ) 1.8 Total operating income (loss) 9.8 (92.8 ) (.5 ) (32.1 ) General corporate items: Securities earnings 6.9 7.2 13.7 14.2 Insurance recoveries .2 — .3 .1 Termination fee — 4.0 — 4.0 General expenses, net (8.6 ) (14.7 ) (20.1 ) (27.1 ) Interest expense (15.8 ) (16.0 ) (31.5 ) (31.6 ) Loss before income taxes $ (7.5 ) $ (112.3 ) $ (38.1 ) $ (72.5 ) Segment results we report may differ from amounts separately reported by our various subsidiaries due to purchase accounting adjustments and related amortization or differences in the way we define operating income. Intersegment sales are not material. Our Real Estate Management and Development Segment’s operating loss in the first six months of 2016 includes a $5.1 million contract related intangible asset impairment loss which is included in the determination of its operating income, see Note 7. Our Chemicals Segment’s operating income in the second quarter and first six months of 2016 includes $1.4 million and $3.4 million, respectively, in business interruption insurance proceeds which is included in the determination of its operating income, see Note 12. Our Waste Management Segment’s results in the second quarter and first six months of 2017 includes a $170.6 million long-lived asset impairment which is included in the determination of its operating income, see Note 3. |
Long-lived Asset Impairment
Long-lived Asset Impairment | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Long-lived Asset Impairment | Note 3—Long-lived asset impairment — Waste Control Specialists LLC: As previously reported, in November 2015 we entered into an agreement with Rockwell Holdco, Inc. ("Rockwell"), for the sale of WCS to Rockwell. The agreement, as amended, was for $270 million in cash plus the assumption of all of WCS’ third-party indebtedness incurred prior to the date of the agreement. Additionally, Rockwell and its affiliates would have assumed all financial assurance obligations related to the WCS business. Rockwell is the parent company of EnergySolutions, Inc. Completion of the sale was subject to certain customary closing conditions, including the receipt of U.S. anti-trust approval. The U.S. Department of Justice (“DOJ”) did not give the parties anti-trust clearance, and on November 16, 2016, the DOJ filed an anti-trust action in the U.S. federal district court for the District of Delaware styled United States of America vs. Energy Solutions, Inc., et al As part of the terms of the fourth amendment to the purchase agreement, in the event of termination of the purchase agreement for any reason (including termination of the purchase agreement if completion of the sale of WCS is enjoined on anti-trust grounds), we would be entitled to receive a termination fee from Rockwell. Such termination fee (net of applicable expenses) aggregated $4 million, was received in June 2017 and is recognized as other non-operating income in the second quarter of 2017; see Note 12. The Court’s decision and resulting termination of the purchase agreement with Rockwell constitute triggering events under ASC 360-10-35-21, requiring WCS’ long-lived assets to be tested for recoverability. Given the challenges facing WCS’ disposal operations we have concluded that the long-lived assets associated with WCS’ operations are impaired at June 30, 2017. Accordingly, we have recognized an aggregate $170.6 million impairment charge as of June 30, 2017, to reduce the carrying value of WCS’ long-lived assets recognized for financial reporting purposes to their estimated fair value. Such $170.6 million impairment charge relates to the following long-lived assets of WCS: net property and equipment - $127.5 million; waste disposal site operating permits, net - $42.0 million; and other assets - $1.1 million. With respect to the operating permits, we concluded such long-lived assets were fully impaired, as these permits are specific to WCS’ land and facility in Andrews County and have no salvage value as there is no alternative use for permits. Similarly, with respect to the net property and equipment, we concluded such long-lived assets were fully impaired except to the extent certain items of property and equipment had an alternate use outside of WCS’ operations; for those items of property and equipment, they were written down to estimated salvage value, primarily using dealer or auction-site quotes (Level 3 inputs) as the basis for salvage value. The salvage value for such items of property and equipment aggregated $5.7 million at June 30, 2017. |
Accounts and Other Receivables,
Accounts and Other Receivables, Net | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Accounts and Other Receivables, Net | Note 4—Accounts and other receivables, net: December 31, June 30, (In millions) Trade accounts receivable: Kronos $ 224.8 $ 314.7 CompX 10.4 12.2 WCS 14.0 15.2 BMI and LandWell 1.3 1.3 VAT and other receivables 18.6 19.1 Refundable income taxes 1.0 1.3 Receivable from affiliates: Contran – trade items .4 .6 Other – trade items 2.8 3.3 Allowance for doubtful accounts (1.1 ) (1.2 ) Total $ 272.2 $ 366.5 |
Inventories, Net
Inventories, Net | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 5—Inventories, net: December 31, June 30, (In millions) Raw materials: Chemicals $ 68.7 $ 80.6 Component products 2.7 2.9 Total raw materials 71.4 83.5 Work in process: Chemicals 22.3 18.9 Component products 9.0 9.8 Total in-process products 31.3 28.7 Finished products: Chemicals 196.4 181.0 Component products 3.2 2.6 Total finished products 199.6 183.6 Supplies (primarily chemicals) 58.3 63.3 Total $ 360.6 $ 359.1 |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Securities | Note 6—Marketable securities: Market Cost Unrealized (In millions) December 31, 2016: Current assets $ 4.4 $ 4.4 $ — Noncurrent assets: The Amalgamated Sugar Company LLC $ 250.0 $ 250.0 $ — Other 3.5 3.7 (.2 ) Total $ 253.5 $ 253.7 $ (.2 ) June 30, 2017: Current assets $ .8 $ .8 $ — Noncurrent assets: The Amalgamated Sugar Company LLC $ 250.0 $ 250.0 $ — Other 7.2 7.4 (.2 ) Total $ 257.2 $ 257.4 $ (.2 ) All of our marketable securities are accounted for as available-for-sale, which are carried at fair value, with any unrealized gains or losses recognized through accumulated other comprehensive income. Our marketable securities are carried at fair value using quoted market prices, primarily Level 1 inputs as defined by ASC Topic 820, Fair Value Measurements and Disclosures |
Other Noncurrent Assets
Other Noncurrent Assets | 6 Months Ended |
Jun. 30, 2017 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Noncurrent Assets | Note 7—Other noncurrent assets: December 31, June 30, (In millions) Other noncurrent assets: Land held for development $ 138.1 $ 131.1 Waste disposal site operating permits, net 42.9 — Restricted cash 24.2 34.8 IBNR receivables 7.1 7.2 Capital lease deposit 6.2 6.2 Pension asset 1.6 2.1 Other 17.9 15.5 Total $ 238.0 $ 196.9 See Note 3 for a discussion of waste disposal site operating permits. Upon acquiring a controlling interest in our Real Estate Management and Development Segment in December 2013, we recognized an indefinite-lived customer relationship intangible asset of $5.1 million for long-term contracts related to water delivery services to the City of Henderson, Nevada and various other users through a water system owned by BMI. Aggregate revenues associated with water delivered under the City of Henderson contract have historically represented approximately 70% of the Segment’s aggregate water delivery revenues. These contracts generally span many years and feature automatic renewing provisions. The initial City of Henderson water delivery contract extended for a period of 25 years, and contained an automatic renewal provision. In January 2016, the water delivery contract with the City of Henderson was amended. As part of such amendment, required minimum volumes were reduced, pricing was lowered, the automatic renewal provision of the contract was eliminated, and the contract term now runs through June 2040. The amendment to the City of Henderson water delivery contract represents an event or change in circumstance which triggered the need to perform a quantitative impairment analysis with respect to the intangible asset in the first quarter of 2016, in accordance with the guidance in ASC 350-30-35. Accordingly, as a result of a quantitative impairment analysis performed in the first quarter of 2016 we concluded that the $5.1 million contract related intangible asset primarily related to the City of Henderson water delivery contract has been fully impaired as a result of the amended contract (with its reduced minimum volumes and lower pricing), and we recognized an aggregate $5.1 million contract related intangible asset impairment loss in the first quarter of 2016. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 8—Long-term debt: December 31, June 30, (In millions) Valhi: Snake River Sugar Company $ 250.0 $ 250.0 Contran credit facility 278.9 282.7 Total Valhi debt 528.9 532.7 Subsidiary debt: Kronos: Term loan 335.9 334.9 North American revolving credit facility — 16.3 WCS: Financing capital lease 64.0 63.1 Tremont: Promissory note payable 14.5 14.5 BMI: Bank note payable – Meadows Bank 8.4 — Bank loan – Western Alliance Bank — 18.7 LandWell: Note payable to the City of Henderson 2.9 2.7 Other 10.4 9.7 Total subsidiary debt 436.1 459.9 Total debt 965.0 992.6 Less current maturities 7.8 7.6 Total long-term debt $ 957.2 $ 985.0 Valhi – Contran credit facility – During the first six months of 2017, we borrowed a net $3.8 million under our Contran credit facility. The average interest rate on the existing balance as of and for the six months ended June 30, 2017 was 5.25% and 4.88%, respectively. At June 30, 2017, the equivalent of $42.3 million was available for borrowing under this facility. Kronos – Term loan – During the first six months of 2017, Kronos made its required quarterly principal payment of $1.8 million. The average interest rate on the term loan borrowings as of and for the six months ended June 30, 2017 was 4.3% and 4.1%, respectively. The carrying value of the term loan at June 30, 2017 is stated net of unamortized original issue discount of $.7 million and debt issuance costs of $3.0 million. See Note 17 for a discussion of the interest rate swap we entered into in 2015 pursuant to our interest rate risk strategy. North American revolving credit facility – In January 2017, Kronos extended the maturity date of its North American revolving credit facility to the earlier of (i) January 30, 2022 or (ii) 90 days prior to the maturity date of our existing term loan indebtedness (or 90 days prior to the maturity date of any indebtedness incurred in a permitted refinancing of such existing term loan indebtedness). Based on the February 2020 maturity date of our existing term loan, the maturity date of the North American revolving credit facility is currently November 2019. During the first six months of 2017, Kronos borrowed a net $16.3 million under its North American revolving credit facility. The average interest rate on outstanding borrowings as of and for the six months ended June 30, 2017 was 5.0 % % European revolving credit facility – Kronos’ European revolving credit facility requires the maintenance of certain financial ratios, and one of such requirements is based on the ratio of net debt to last twelve months earnings before income tax, interest, depreciation and amortization expense (EBITDA) of the borrowers. Based upon the borrowers’ last twelve months EBITDA as of June 30, 2017 and the net debt to EBITDA financial test, the full €120.0 million of the credit facility ($137.1 million) is available for borrowing availability at June 30, 2017. We expect to extend the maturity date of this facility on or prior to its maturity date in September 2017. Other – In February 2017, a wholly-owned subsidiary of BMI entered into a $20.5 million loan agreement with Western Alliance Bank. The proceeds were used to refinance the $8.5 million outstanding bank note payable to Meadows Bank and to finance improvements to BMI’s water delivery system. The agreement requires semi-annual payments of principal and interest on June 1 and December 1 aggregating $1.9 million annually beginning on June 1, 2017 through the maturity date in June 2032 (except during 2017 which calls for prorated aggregate principal and interest payments of $1.6 million). The agreement bears interest at 5.34% and is collateralized by certain real property, including the water delivery system, and revenue streams under the City of Henderson water contract. Debt issuance costs were approximately $1.0 million, and the carrying value of the banknote payable at June 30, 2017 is stated net of such unamortized debt issuance costs. Restrictions and other – Certain of the credit facilities with unrelated, third-party lenders described above require the respective borrowers to maintain minimum levels of equity, require the maintenance of certain financial ratios, limit dividends and additional indebtedness and contain other provisions and restrictive covenants customary in lending transactions of this type. We are in compliance with all of our debt covenants at June 30, 2017. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 6 Months Ended |
Jun. 30, 2017 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Note 9—Accounts payable and accrued liabilities: December 31, June 30, (In millions) Accounts payable: Kronos $ 84.9 $ 95.8 CompX 2.6 3.5 WCS 1.6 2.1 BMI and LandWell 2.2 4.4 NL 2.4 1.1 Other .7 .3 Payable to affiliates: Contran – trade items 31.4 33.6 Contran – income taxes 5.5 6.4 LPC – trade items 14.7 14.7 Employee benefits 29.2 27.8 Deferred income 32.0 25.8 Accrued sales discounts and rebates 22.6 21.4 Environmental remediation and related costs 15.3 14.8 Reserve for uncertain tax positions 3.3 3.3 Accrued workforce reduction costs 1.2 .2 Interest rate swap 2.8 2.0 Other 28.8 43.8 Total $ 281.2 $ 301.0 See Note 17 for a discussion of the interest rate swap contract. |
Other noncurrent liabilities
Other noncurrent liabilities | 6 Months Ended |
Jun. 30, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Noncurrent Liabilities | Note December 31, June 30, (In millions) Reserve for uncertain tax positions $ 35.7 $ 37.6 Asset retirement obligations 30.7 32.0 Deferred income 12.6 11.5 Employee benefits 7.6 8.2 Insurance claims and expenses 9.5 10.0 Deferred payment obligation 9.0 9.2 Other 8.8 11.7 Total $ 113.9 $ 120.2 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note 11—Employee benefit plans: Defined benefit plans – The components of our net periodic defined benefit pension cost are presented in the table below. Three months ended Six months ended 2016 2017 2016 2017 (In millions) Service cost $ 2.5 $ 2.8 $ 5.0 $ 5.5 Interest cost 4.5 3.9 8.9 7.7 Expected return on plan assets (4.7 ) (3.2 ) (9.2 ) (6.4 ) Amortization of unrecognized prior service cost .2 .1 .4 .2 Recognized actuarial losses 3.4 3.7 6.6 7.3 Total $ 5.9 $ 7.3 $ 11.7 $ 14.3 Other postretirement benefits – The components of our net periodic other postretirement benefit cost are presented in the table below. Three months ended Six months ended 2016 2017 2016 2017 (In millions) Service cost $ .1 $ .1 $ .1 $ .1 Interest cost — .1 .2 .2 Amortization of prior service credit (.4 ) (.3 ) (.9 ) (.5 ) Recognized actuarial gains — — (.1 ) (.1 ) Total $ (.3 ) $ (.1 ) $ (.7 ) $ (.3 ) Contributions – We expect to contribute the equivalent of $16.0 million and $1.1 million, respectively, to all of our defined benefit pension plans and other postretirement benefit plans during 2017. |
Other Income, Net
Other Income, Net | 6 Months Ended |
Jun. 30, 2017 | |
Other Income And Expenses [Abstract] | |
Other Income, Net | Note 12—Other income, net: Six months ended 2016 2017 (In millions) Securities earnings: Dividends and interest $ 13.6 $ 14.2 Securities transactions, net .1 — Total 13.7 14.2 Currency transactions, net 4.2 (3.7 ) Insurance recoveries .3 .1 Business interruption insurance proceeds 3.4 — Termination fee — 4.0 Other, net .5 .7 Total $ 22.1 $ 15.3 The termination fee is discussed in Note 3. Insurance recoveries reflect, in part, amounts NL received from certain of its former insurance carriers and relate to the recovery of prior lead pigment and asbestos litigation defense costs incurred by NL. See Note 16. We recognized $3.4 million (including $1.4 million in the second quarter of 2016) in income related to cash Kronos received in the first six months of 2016 from settlement of a business interruption insurance claim arising in 2014. No additional material amounts are expected to be received with respect to such insurance claim. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13—Income taxes: Three months ended Six months ended 2016 2017 2016 2017 (In millions) Expected tax benefit, at U.S. federal statutory income tax rate of 35% $ (2.6 ) $ (39.3 ) $ (13.3 ) $ (25.4 ) Incremental net tax on earnings and losses of non-U.S., U.S. and non-tax group companies .3 37.1 2.7 48.3 Non-U.S. tax rates (.6 ) (2.3 ) (.4 ) (4.7 ) Valuation allowance 2.9 (157.6 ) 2.9 (162.6 ) Adjustment to the reserve for uncertain tax positions, net .4 .6 .6 1.1 Nondeductible expenses .5 .3 .6 .8 Domestic production activities deduction (.5 ) (1.5 ) (.8 ) (2.1 ) U.S. state income taxes (.1 ) (4.7 ) (.5 ) (4.7 ) Other, net (.1 ) — (.2 ) (.1 ) Income tax expense (benefit) $ .2 $ (167.4 ) $ (8.4 ) $ (149.4 ) Comprehensive provision for income taxes (benefit) allocable to: Income tax expense (benefit) $ .2 $ (167.4 ) $ (8.4 ) $ (149.4 ) Other comprehensive income (loss): Marketable securities .4 (.3 ) .2 (.5 ) Currency translation (1.0 ) 16.4 1.8 18.1 Interest rate swap (.6 ) (.3 ) (2.7 ) .1 Pension plans .9 2.2 1.7 3.1 OPEB plans (.2 ) (.1 ) (.4 ) (.2 ) Total $ (.3 ) $ (149.5 ) $ (7.8 ) $ (128.8 ) The amount shown in the above table of our income tax rate reconciliation for non-U.S. tax rates represents the result determined by multiplying the pre-tax earnings or losses of each of our non-U.S. subsidiaries by the difference between the applicable statutory income tax rate for each non-U.S. jurisdiction and the U.S. federal statutory tax rate of 35%. The amount shown on such table for incremental net tax on earnings and losses on non-U.S. and non-tax group companies includes, as applicable, (i) current income taxes (including withholding taxes, if applicable), if any, associated with any current-year earnings of our Chemicals Segment’s non-U.S. subsidiaries to the extent such current-year earnings were distributed to us in the current year, (ii) deferred income taxes (or deferred income tax benefit) associated with the current-year change in the aggregate amount of undistributed earnings of our Chemicals Segment’s Canadian subsidiary, which earnings are not subject to a permanent reinvestment plan, in an amount representing the current-year change in the aggregate current income tax that would be generated (including withholding taxes, if applicable) when such aggregate undistributed earnings are distributed to us, (iii) current U.S. income taxes (or current income tax benefit), including U.S. personal holding company tax, as applicable, attributable to current-year income (losses) of one of Kronos’ non-U.S. subsidiaries, which subsidiary is treated as a dual resident for U.S. income tax purposes, to the extent the current-year income (losses) of such subsidiary is subject to U.S. income tax under the U.S. dual-resident provisions of the Internal Revenue Code, (iv) deferred income taxes associated with our direct investment in Kronos (beginning in the second quarter of 2015) and (v) current and deferred income taxes associated with distributions and earnings from our investment in LandWell and BMI. Kronos has substantial net operating loss (NOL) carryforwards in Germany (the equivalent of $638 million for German corporate purposes and $71 million for German trade tax purposes at December 31, 2016) and in Belgium (the equivalent of $93 million for Belgian corporate tax purposes at December 31, 2016), all of which have an indefinite carryforward period. As a result, we have net deferred income tax assets with respect to these two jurisdictions, primarily related to these NOL carryforwards. The German corporate tax is similar to the U.S. federal income tax, and the German trade tax is similar to the U.S. state income tax. Prior to June 30, 2015, and using all available evidence, we had concluded no deferred income tax asset valuation allowance was required to be recognized with respect to these net deferred income tax assets under the more-likely-than-not recognition criteria, primarily because (i) the carryforwards have an indefinite carryforward period, (ii) we utilized a portion of such carryforwards during the most recent three-year period, and (iii) we expected to utilize the remainder of the carryforwards over the long term. We had also previously indicated that facts and circumstances could change, which might in the future result in the recognition of a valuation allowance against some or all of such deferred income tax assets. However, as of June 30, 2015, and given our operating results during the second quarter of 2015 and our expectations at that time for our operating results for the remainder of 2015, we did not have sufficient positive evidence to overcome the significant negative evidence of having cumulative losses in the most recent twelve consecutive quarters in both our German and Belgian jurisdictions at June 30, 2015 (even considering that the carryforward period of our German and Belgian NOL carryforwards is indefinite, one piece of positive evidence). Accordingly, at June 30, 2015, we concluded that we were required to recognize a non-cash deferred income tax asset valuation allowance under the more-likely-than-not recognition criteria with respect to our German and Belgian net deferred income tax assets at such date. We recognized an additional non-cash deferred income tax asset valuation allowance during the second half of 2015 due to losses recognized by our German and Belgian operations during such period. During 2016, we recognized an aggregate $2.2 million non-cash tax benefit as the result of a net decrease in such deferred income tax valuation allowance, as the impact of utilizing a portion of our German NOLs during such period more than offset the impact of additional losses recognized by our Belgian operations during such period. Such valuation allowance aggregated approximately $173 million at December 31, 2016 ($153 million with respect to Germany and $20 million with respect to Belgium). During the first six months of 2017, we recognized an aggregate non-cash income tax benefit of $12.7 million as a result of a net decrease in such deferred income tax asset valuation allowance, due to utilizing a portion of both the German and Belgian NOLs during such period, including $7.7 million in the second quarter of 2017. At June 30, 2017, we concluded we now have sufficient positive evidence under the more-likely-than-not recognition criteria to support reversal of the entire valuation allowance related to our German and Belgian operations. As discussed below, a large portion of the remaining valuation allowance is reversed as of June 30, 2017, but a portion of the remaining valuation allowance will be reversed during the second half of 2017. Such sufficient positive evidence at June 30, 2017 includes, among other things, the existence of cumulative profits in the most recent twelve consecutive quarters (Germany) or profitability in recent quarters during which such profitability was trending upward throughout such period (Belgium), the ability to demonstrate future profitability in Germany and Belgium for a sustainable period, and the indefinite carryforward period for the German and Belgian NOLs. Accordingly, our income tax benefit in the second quarter of 2017 includes an aggregate non-cash income tax benefit of $149.9 million related to such reversal at June 30, 2017 ($141.9 million related to Germany, and $8.0 million related to Belgium). Such second quarter 2017 income tax benefit associated with reversal of the German and Belgian valuation allowance excludes the non-cash income tax benefit of $7.7 million, also recognized in the second quarter, as discussed above. In addition to the above amounts, our deferred income tax asset valuation allowance increased by $9.5 million during the first six months of 2017 as a result of changes in currency exchange rates, which was recognized as part of other comprehensive income (loss). In accordance with the ASC 740-270 guidance regarding accounting for income taxes at interim dates, the amount of the valuation allowance reversed at June 30, 2017 ($149.9 million) relates to our change in judgment regarding the realizability of the related deferred income tax asset as it relates to future years (i.e. 2018 and after). A change in judgment regarding the realizability of deferred tax assets as it relates to the current year is considered in determining the estimated annual effective tax rate for the year. Accordingly, of the aggregate $173 million deferred income tax asset valuation allowance recognized at December 31, 2016, approximately $163 million has been reversed through June 30, 2017, and the remaining $20 million (which relates to the expected level of profitability of our German and Belgian operations in calendar 2017) will be reversed during the third and fourth quarters of 2017 (such aggregate reversal amount includes the $9.5 million increase to our deferred income tax asset valuation allowance as a result of changes in currency exchange rates recognized as part of other comprehensive income (loss). 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 matters will be resolved in our favor, and therefore our potential exposure, if any, is also uncertain. During 2016, Contran, as the ultimate parent of our U.S. Consolidated income tax group, executed and finalized an Advance Pricing Agreement with the U.S. Internal Revenue Service and our Canadian subsidiary executed and finalized an Advance Pricing Agreement with the Competent Authority for Canada (collectively, the “U.S.-Canada APA”) effective for tax years 2005 - 2015. Pursuant to the terms of the U.S.-Canada APA, the U.S. and Canadian tax authorities agreed to certain prior year changes to taxable income of Kronos’ U.S. and Canadian subsidiaries. As a result of such agreed-upon changes, Kronos’ Canadian subsidiary incurred a cash income tax payment of approximately CAD $3 million (USD $2.3 million) related to the U.S.-Canada APA, but such payment was fully offset by previously provided accruals. We currently expect the Advance Pricing Agreement between Canada and Germany (collectively, the “Canada-Germany APA”) to be executed and finalized within the next twelve months. We believe we have adequate accruals to cover any cash income tax payment which might result from the finalization of the Canada-Germany APA, and accordingly we do not expect the execution of such APA to have a material adverse effect on our consolidated financial position, results of operations or liquidity. We recognize deferred income taxes with respect to the excess of the financial reporting carrying amount over the income tax basis of our direct investment in Kronos common stock because the exemption under GAAP to avoid such recognition of deferred income taxes is not available to us. There is a maximum amount (or cap) of such deferred income taxes we are required to recognize with respect to our direct investment in Kronos, and we previously reached such maximum amount in the fourth quarter of 2010. Since that time and through March 31, 2015, we were not required to recognize any additional deferred income taxes with respect to our direct investment in Kronos because the deferred income taxes associated with the excess of the financial reporting carrying amount over the income tax basis of our direct investment in Kronos common stock continued to be above such cap. However, at June 30, 2015, the deferred income taxes associated with the excess of the financial reporting carrying amount over the income tax basis of our direct investment in Kronos common stock was, for the first time since the fourth quarter of 2010, below such cap, in large part due to the net loss reported by Kronos in the second quarter of 2015. During the second, third and fourth quarters of 2015, we recognized an aggregate $29.3 million non-cash income tax benefit for the reduction in the deferred income taxes required to be recognized with respect to the excess of the financial reporting carrying amount over the income tax basis of our direct investment in Kronos common stock, to the extent such reduction related to our equity in Kronos’ net loss in 2015. We recognized a non-cash income tax expense of $6.5 million in 2016 (including $3.4 million in the first six months of 2016) for the increase in the deferred income taxes required to be recognized with respect to the excess of the financial reporting carrying amount over the income tax basis of our direct investment in Kronos common stock, to the extent such reduction related to our equity in Kronos’ net income (loss) in such periods. Our provision for income taxes in the first six months of 2017 includes a non-cash income tax expense of $39.5 million for the increase in the deferred income taxes required to be recognized with respect to the excess of the financial reporting carrying amount over the income tax basis of our direct investment in Kronos common stock, to the extent such reduction related to our equity in Kronos’ net income in such period. Such amount is included in the above table of our income tax rate reconciliation for incremental net tax on earnings and losses on non-U.S. and non-tax group companies (in addition to the other items included in such line item in the rate reconciliation, as indicated above). A portion of such increase (decrease) with respect to the excess of the financial reporting carrying amount over the income tax basis of our direct investment in Kronos common stock during 2015, 2016 and 2017 related to our equity in Kronos’ other comprehensive income (loss) items, and the amounts shown in the above table for income tax expense (benefit) allocated to other comprehensive income (loss) includes amounts related to our equity in Kronos’ other comprehensive income (loss) items. We believe we have adequate accruals for additional taxes and related interest expense which could ultimately result from tax examinations. We believe the ultimate disposition of tax examinations should not have a material adverse effect on our consolidated financial position, results of operations or liquidity. We currently estimate that our unrecognized tax benefits will decrease by approximately $15.0 million during the next twelve months primarily due to certain adjustments to our prior year returns and the expiration of certain statutes of limitations . |
Noncontrolling Interest in Subs
Noncontrolling Interest in Subsidiaries | 6 Months Ended |
Jun. 30, 2017 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest in Subsidiaries | Note 14—Noncontrolling interest in subsidiaries: December 31, June 30, (In millions) Noncontrolling interest in net assets: Kronos Worldwide $ 134.5 $ 178.8 NL Industries 44.3 53.0 CompX International 16.4 17.0 BMI 24.6 24.8 LandWell 23.7 24.1 Total $ 243.5 $ 297.7 Six months ended June 30, 2016 2017 (In millions) Noncontrolling interest in net income (loss) of subsidiaries: Kronos Worldwide $ (.5 ) $ 45.6 NL Industries (.2 ) 8.4 CompX International .6 .9 BMI (1.3 ) .2 LandWell (.3 ) .3 Total $ (1.7 ) $ 55.4 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 15—Accumulated other comprehensive income (loss): Changes in accumulated other comprehensive income (loss) attributable to Valhi stockholders for the three and six months ended June 30, 2016 and 2017 are presented in the table below. Three months ended Six months ended 2016 2017 2016 2017 (In millions) Accumulated other comprehensive income (loss), net of tax and noncontrolling interest: Marketable securities: Balance at beginning of period $ 1.6 $ 1.7 $ 1.6 $ 1.7 Other comprehensive income– unrealized gains arising during the period .1 — .1 — Balance at end of period $ 1.7 $ 1.7 $ 1.7 $ 1.7 Interest rate swap: Balance at beginning of period $ (3.0 ) $ (.8 ) $ (1.3 ) $ (1.2 ) Other comprehensive income (loss): Unrealized losses arising during the year (.8 ) (.5 ) (2.8 ) (.5 ) Less reclassification adjustment for amounts included in interest expense .3 .2 .6 .6 Balance at end of period $ (3.5 ) $ (1.1 ) $ (3.5 ) $ (1.1 ) Currency translation adjustment: Balance at beginning of period $ (69.4 ) $ (83.1 ) $ (78.1 ) $ (88.5 ) Other comprehensive income (loss) (3.0 ) 9.3 5.7 14.7 Balance at end of period $ (72.4 ) $ (73.8 ) $ (72.4 ) $ (73.8 ) Defined benefit pension plans: Balance at beginning of period $ (121.1 ) $ (135.0 ) $ (123.0 ) $ (137.0 ) Other comprehensive income— amortization of prior service cost and net losses included in net periodic pension cost 1.8 .6 3.7 2.6 Balance at end of period $ (119.3 ) $ (134.4 ) $ (119.3 ) $ (134.4 ) OPEB plans: Balance at beginning of period $ 3.5 $ 2.9 $ 3.8 $ 3.1 Other comprehensive loss – amortization of prior service credit (.2 ) (.2 ) (.5 ) (.4 ) Balance at end of period $ 3.3 $ 2.7 $ 3.3 $ 2.7 Total accumulated other comprehensive income (loss): Balance at beginning of period $ (188.4 ) $ (214.3 ) $ (197.0 ) $ (221.9 ) Other comprehensive income (loss) (1.8 ) 9.4 6.8 17.0 Balance at end of period $ (190.2 ) $ (204.9 ) $ (190.2 ) $ (204.9 ) See Note 11 for amounts related to our defined benefit pension plans and OPEB plans and Note 17 for a discussion of our interest rate swap contract. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 16—Commitments and contingencies: Lead pigment litigation—NL NL’s former operations included the manufacture of lead pigments for use in paint and lead-based paint. NL, other former manufacturers of lead pigments for use in paint and lead-based paint (together, the “former pigment manufacturers”), and the Lead Industries Association (“LIA”), which discontinued business operations in 2002, have been named as defendants in various legal proceedings seeking damages for personal injury, property damage and governmental expenditures allegedly caused by the use of lead-based paints. Certain of these actions have been filed by or on behalf of states, counties, cities or their public housing authorities and school districts, and certain others have been asserted as class actions. These lawsuits seek recovery under a variety of theories, including public and private nuisance, negligent product design, negligent failure to warn, strict liability, breach of warranty, conspiracy/concert of action, aiding and abetting, enterprise liability, market share or risk contribution liability, intentional tort, fraud and misrepresentation, violations of state consumer protection statutes, supplier negligence and similar claims. The plaintiffs in these actions generally seek to impose on the defendants responsibility for lead paint abatement and health concerns associated with the use of lead-based paints, including damages for personal injury, contribution and/or indemnification for medical expenses, medical monitoring expenses and costs for educational programs. To the extent the plaintiffs seek compensatory or punitive damages in these actions, such damages are generally unspecified. In some cases, the damages are unspecified pursuant to the requirements of applicable state law. A number of cases are inactive or have been dismissed or withdrawn. Most of the remaining cases are in various pre-trial stages. Some are on appeal following dismissal or summary judgment rulings or a trial verdict in favor of either the defendants or the plaintiffs. NL believes that these actions are without merit, and NL intends to continue to deny all allegations of wrongdoing and liability and to defend against all actions vigorously. NL does not believe it is probable that it has incurred any liability with respect to all of the lead pigment litigation cases to which NL is 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, 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 NL was previously a party and for which NL has been dismissed without any finding of liability. Accordingly, neither we nor NL have accrued any amounts for any of the pending lead pigment and lead-based paint litigation cases filed by or on behalf of states, counties, cities or their public housing authorities and school districts, or those asserted as class actions. In addition, we have determined that liability to us which may result, if any, cannot be reasonably estimated because there is no prior history of a loss of this nature on which an estimate could be made and there is no substantive information available upon which an estimate could be based. In one of these lead pigment cases, in April 2000 NL was served with a complaint in County of Santa Clara v. Atlantic Richfield Company, et al. The Santa Clara case is unusual in that this is the second time that an adverse verdict in the lead pigment litigation has been entered against NL (the first adverse verdict against NL was ultimately overturned on appeal). We have concluded that the likelihood of a loss in this case has not reached a standard of “probable” as contemplated by ASC 450, given (i) the substantive, substantial and meritorious grounds on which the adverse verdict in the Santa Clara case will be appealed, (ii) the uniqueness of the Santa Clara verdict (i.e. no final, non-appealable verdicts have ever been rendered against NL, or any of the other former lead pigment manufacturers, based on the public nuisance theory of liability or otherwise), and (iii) the rejection of the public nuisance theory of liability as it relates to lead pigment matters in many other jurisdictions (no jurisdiction in which a plaintiff has asserted a public nuisance theory of liability has ever successfully been upheld). In addition, liability that may result, if any, cannot be reasonably estimated, as NL continues to have no basis on which an estimate of liability could be made, as discussed above. However, as with any legal proceeding, there is no assurance that any appeal would be successful, and it is reasonably possible, based on the outcome of the appeals process, that NL may in the future incur some liability resulting in the recognition of a loss contingency accrual that could have a material adverse impact on our results of operations, financial position and liquidity. New cases may continue to be filed against NL. We cannot assure you that we will not incur liability in the future in respect of any of the pending or possible litigation in view of the inherent uncertainties involved in court and jury rulings. In the future, if new information regarding such matters becomes available to us (such as a final, non-appealable adverse verdict against us or otherwise ultimately being found liable with respect to such matters), at that time we would consider such information in evaluating any remaining cases then-pending against us as to whether it might then have become probable we have incurred liability with respect to these matters, and whether such liability, if any, could have become reasonably estimable. The resolution of any of these cases could result in the recognition of a loss contingency accrual that could have a material adverse impact on our net income for the interim or annual period during which such liability is recognized and a material adverse impact on our consolidated financial condition and liquidity. Environmental matters and litigation Our operations are governed by various environmental laws and regulations. Certain of our businesses are and have been engaged in the handling, manufacture or use of substances or compounds that may be considered toxic or hazardous within the meaning of applicable environmental laws and regulations. As with other companies engaged in similar businesses, certain of our past and current operations and products have the potential to cause environmental or other damage. We have implemented and continue to implement various policies and programs in an effort to minimize these risks. Our policy is to maintain compliance with applicable environmental laws and regulations at all of our plants and to strive to improve environmental performance. From time to time, we may be subject to environmental regulatory enforcement under U.S. and non-U.S. statutes, the resolution of which typically involves the establishment of compliance programs. It is possible that future developments, such as stricter requirements of environmental laws and enforcement policies, could adversely affect our production, handling, use, storage, transportation, sale or disposal of such substances. We believe that all of our facilities are in substantial compliance with applicable environmental laws. Certain properties and facilities used in NL’s former operations, including divested primary and secondary lead smelters and former mining locations, are the subject of civil litigation, administrative proceedings or investigations arising under federal and state environmental laws and common law. Additionally, in connection with past operating practices, we are currently involved as a defendant, potentially responsible party (“PRP”) or both, pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, as amended by the Superfund Amendments and Reauthorization Act (“CERCLA”), and similar state laws in various governmental and private actions associated with waste disposal sites, mining locations, and facilities that we or our predecessors, our subsidiaries or their predecessors currently or previously owned, operated or used, certain of which are on the United States Environmental Protection Agency’s (“EPA”) Superfund National Priorities List or similar state lists. These proceedings seek cleanup costs, damages for personal injury or property damage and/or damages for injury to natural resources. Certain of these proceedings involve claims for substantial amounts. Although we may be jointly and severally liable for these costs, in most cases we are only one of a number of PRPs who may also be jointly and severally liable, and among whom costs may be shared or allocated. In addition, we are occasionally named as a party in a number of personal injury lawsuits filed in various jurisdictions alleging claims related to environmental conditions alleged to have resulted from our operations. Obligations associated with environmental remediation and related matters are difficult to assess and estimate for numerous reasons including the: • complexity and differing interpretations of governmental regulations, • number of PRPs and their ability or willingness to fund such allocation of costs, • financial capabilities of the PRPs and the allocation of costs among them, • solvency of other PRPs, • multiplicity of possible solutions, • number of years of investigatory, remedial and monitoring activity required, • uncertainty over the extent, if any, to which our former operations might have contributed to the conditions allegedly giving rise to such personal injury, property damage, natural resource and related claims, and • number of years between former operations and notice of claims and lack of information and documents about the former operations. In addition, the imposition of more stringent standards or requirements under environmental laws or regulations, new developments or changes regarding site cleanup costs or the allocation of costs among PRPs, solvency of other PRPs, the results of future testing and analysis undertaken with respect to certain sites or a determination that we are potentially responsible for the release of hazardous substances at other sites, could cause our expenditures to exceed our current estimates. We cannot assure you that actual costs will not exceed accrued amounts or the upper end of the range for sites for which estimates have been made, and we cannot assure you that costs will not be incurred for sites where no estimates presently can be made. Further, additional environmental and related matters may arise in the future. If we were to incur any future liability, this could have a material adverse effect on our consolidated financial statements, results of operations and liquidity. We record liabilities related to environmental remediation and related matters (including costs associated with damages for personal injury or property damage and/or damages for injury to natural resources) when estimated future expenditures are probable and reasonably estimable. We adjust such accruals as further information becomes available to us or as circumstances change. Unless the amounts and timing of such estimated future expenditures are fixed and reasonably determinable, we generally do not discount estimated future expenditures to their present value due to the uncertainty of the timing of the payout. We recognize recoveries of costs from other parties, if any, as assets when their receipt is deemed probable. At December 31, 2016 and June 30, 2017, receivables for recoveries were not significant. We do not know and cannot estimate the exact time frame over which we will make payments for our accrued environmental and related costs. The timing of payments depends upon a number of factors, including but not limited to the timing of the actual remediation process; which in turn depends on factors outside of our control. At each balance sheet date, we estimate the amount of our accrued environmental and related costs which we expect to pay within the next twelve months, and we classify this estimate as a current liability. We classify the remaining accrued environmental costs as a noncurrent liability. The table below presents a summary of the activity in our accrued environmental costs during the first six months of 2017 are presented below. Amount (In millions) Balance at the beginning of the year $ 122.6 Additions charged to expense, net 3.2 Payments, net (1.0 ) Currency and other .1 Balance at the end of period $ 124.9 Amounts recognized in our Condensed Consolidated Balance Sheet at the end of the period: Current liabilities $ 14.8 Noncurrent liabilities 110.1 Total $ 124.9 NL – On a quarterly basis, NL evaluates the potential range of its liability for environmental remediation and related costs at sites where it has been named as a PRP or defendant. At June 30, 2017, NL had accrued approximately $119 million related to approximately 41 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 $161 million, including the amount currently accrued. NL believes that it is not reasonably possible to estimate the range of costs for certain sites. At June 30, 2017, 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. WCS – Effective December 2015, WCS entered an Agreed Order with the TCEQ with regard to the disposition of certain U.S. Department of Energy (“DOE”) waste currently stored at the WCS facility. WCS entered into the Agreed Order as the licensee of the storage facility, and DOE entered into a similar order with the TCEQ as the owner of the waste. WCS asserts that the alleged violations set forth in the orders are due to the acts and omissions of DOE and its contractor. WCS expects to work with TCEQ and DOE to develop a compliance plan regarding the stored waste. While the cost of the compliance plan is not currently estimable, the amount of such compliance costs could be material. On October 21, 2015 the U.S. Nuclear Regulatory Commission (“NRC”) Office of Investigations commenced an investigation of WCS’s handling of the DOE waste described above. WCS cooperated fully, and the matter was concluded with no formal demands or claims by the NRC. WCS believes the DOE or its contractor is required to reimburse WCS for its cost to comply with the Agreed Order and the NRC investigation under the terms of the storage contract and pursuant to law, and as such we believe the cost of compliance with the Agreed Order and the NRC investigation should not have a material effect on our consolidated financial condition, results of operations or liquidity. DOE has generally paid for the costs to comply. On April 28, 2016 WCS filed with the DOE an administrative claim under the Federal Tort Claims Act related to this matter. Other – We have also accrued approximately $5.9 million at June 30, 2017 for other environmental cleanup matters. Insurance coverage claims We are involved in certain legal proceedings with a number of our former insurance carriers regarding the nature and extent of the carriers’ obligations to us under insurance policies with respect to certain lead pigment and asbestos lawsuits. The issue of whether insurance coverage for defense costs or indemnity or both will be found to exist for our lead pigment and asbestos litigation depends upon a variety of factors and we cannot assure you that such insurance coverage will be available. We have agreements with certain of our former insurance carriers pursuant to which the carriers reimburse us for a portion of our future lead pigment litigation defense costs, and one such carrier reimburses us for a portion of our future asbestos litigation defense costs. We are not able to determine how much we will ultimately recover from these carriers for defense costs incurred by us because of certain issues that arise regarding which defense costs qualify for reimbursement. While we continue to seek additional insurance recoveries, we do not know if we will be successful in obtaining reimbursement for either defense costs or indemnity. Accordingly, we recognize insurance recoveries in income only when receipt of the recovery is probable and we are able to reasonably estimate the amount of the recovery. For additional discussion of certain litigation involving NL and certain of its former insurance carriers, please refer to our 2016 Annual Report. Other litigation NL—– NL has been named as a defendant in various lawsuits in several jurisdictions, alleging personal injuries as a result of occupational exposure primarily to products manufactured by our former operations containing asbestos, silica and/or mixed dust. In addition, some plaintiffs allege exposure to asbestos from working in various facilities previously owned and/or operated by NL. There are 101 of these types of cases pending, involving a total of approximately 586 plaintiffs. In addition, the claims of approximately 8,687 plaintiffs have been administratively dismissed or placed on the inactive docket in Ohio courts. We do not expect these claims will be re-opened unless the plaintiffs meet the courts’ medical criteria for asbestos-related claims. We have not accrued any amounts for this litigation because of the uncertainty of liability and inability to reasonably estimate the liability, if any. To date, we have not been adjudicated liable in any of these matters. Based on information available to us, including: • facts concerning historical operations, • the rate of new claims, • the number of claims from which we have been dismissed, and • our prior experience in the defense of these matters, We believe that the range of reasonably possible outcomes of these matters will be consistent with our historical costs (which are not material). Furthermore, we do not expect any reasonably possible outcome would involve amounts material to our consolidated financial position, results of operations or liquidity. We have sought and will continue to vigorously seek, dismissal and/or a finding of no liability from each claim. In addition, from time to time, we have received notices regarding asbestos or silica claims purporting to be brought against former subsidiaries, including notices provided to insurers with which we have entered into settlements extinguishing certain insurance policies. These insurers may seek indemnification from us. Kronos— In March 2013, Kronos was served with the complaint, (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. As amended by plaintiffs’ third amended complaint (Harrison, Jan, et al v. E.I. Du Pont de Nemours and Company, et al), plaintiffs seek to represent a class consisting of indirect purchasers of titanium dioxide in the states of Arizona, Arkansas, California, the District of Columbia, Florida, Iowa, Kansas, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Mexico, New York, North Carolina, Oregon and Tennessee that indirectly purchased titanium dioxide from one or more of the defendants on or after March 1, 2002. The complaint alleges that the defendants conspired and combined to fix, raise, maintain, and stabilize the price at which titanium dioxide was sold in the United States and engaged in other anticompetitive conduct. The case is now proceeding in the trial court. We believe the action is without merit, will deny all allegations of wrongdoing and liability and intend to defend against the action vigorously. Based on our quarterly status evaluation of this case, we have determined that it is not reasonably possible that a loss that is material has been incurred in this case. In September 2016, Kronos was served with the complaint, Home Depot U.S.A., Inc. v. E.I. Dupont Nemours and Company, et al. For a description of the anti-trust action filed by the United States Department of Justice with respect to the sales of WCS, see Note 3. 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. |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Financial Instruments | Note 17—Fair value measurements and financial instruments: The following table summarizes the valuation of our marketable securities, financial instruments and other items recorded on a fair value basis as of: Fair Value Measurements Total Quoted Significant Significant (In millions) Asset (liability) December 31, 2016: Marketable securities: Current $ 4.4 $ — $ 4.4 $ — Noncurrent 253.5 .6 2.9 250.0 Interest rate swap (3.1 ) — (3.1 ) — June 30, 2017: Marketable securities: Current $ .8 $ — $ .8 $ — Noncurrent 257.2 2.5 4.7 250.0 Interest rate swap (2.8 ) — (2.8 ) — See Note 6 for information on how we determine fair value of our noncurrent marketable securities. Certain of our sales generated by Chemicals Segment’s non-U.S. operations are denominated in U.S. dollars. Our Chemicals Segment periodically uses currency forward contracts to manage a very nominal portion of currency exchange rate risk associated with trade receivables denominated in a currency other than the holder’s functional currency or similar exchange rate risk associated with future sales. Derivatives that we use are primarily currency forward contracts and interest rate swaps. We have not entered into these contracts for trading or speculative purposes in the past, nor do we currently anticipate entering into such contracts for trading or speculative purposes in the future. Derivatives used to hedge forecasted transactions and specific cash flows associated with financial assets and liabilities denominated in currencies other than the U.S. dollar and which meet the criteria for hedge accounting are designated as cash flow hedges. Consequently, the effective portion of gains and losses is deferred as a component of accumulated other comprehensive income (loss) and is recognized in earnings at the time the hedged item affects earnings. Contracts that do not meet the criteria for hedge accounting are marked-to-market at each balance sheet date with any resulting gain or loss recognized in income currently as part of net currency transactions gains and losses. 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, 2016 and June 30, 2017, Kronos had no currency forward contracts outstanding. We did not use hedge accounting for any of our contracts to the extent we held such contracts in 2016. Interest rate swap contract - As part of our interest rate risk management strategy, in August 2015 Kronos entered into a pay-fixed/receive-variable interest rate swap contract with Wells Fargo Bank, N.A. to minimize its exposure to volatility in LIBOR as it relates to Kronos' forecasted outstanding variable-rate indebtedness. Under this interest rate swap, Kronos will pay a fixed rate of 2.016% per annum, payable quarterly, and receive a variable rate of three-month LIBOR (subject to a 1.00% floor), also payable quarterly, in each case based on the notional amount of the swap then outstanding. The effective date of the swap contract was September 30, 2015. The notional amount of the swap started at $344.75 million and declines by $875,000 each quarter beginning December 31, 2015, with a final maturity of the swap contract in February 2020. The notional amount of the swap as of June 30, 2017 was $338.6 million. This swap contract has been designated as a cash flow hedge and qualified as an effective hedge at inception under ASC Topic 815. The effective portion of changes in fair value on this interest rate swap is recorded as a component of other comprehensive income (loss), net of deferred income taxes and noncontrolling interest. Commencing in the fourth quarter of 2015, as interest expense accrues on LIBOR-based variable rate debt, we classify the amount we pay under the pay-fixed leg of the swap and the amount we receive under the receive-variable leg of the swap as part of interest expense, with the net effect that the amount of interest expense we recognize on our LIBOR-based variable rate debt each quarter, as it relates to the notional amount of the swap outstanding each quarter, will be based on a fixed rate of 2.016% per annum in lieu of the level of LIBOR prevailing during the quarter. The amount of hedge ineffectiveness, if any, related to the swap will be recorded in earnings (also as part of interest expense). Since the inception of the swap through June 30, 2017, there have been no gains or losses recognized in earnings representing hedge ineffectiveness with respect to the interest rate swap. During the first six months of June 30, 2017, the pretax amount recognized in other comprehensive income (loss) related to the interest rate swap contract was a $1.4 million gain. During the same period, $1.6 million was reclassified from accumulated other comprehensive income (loss) into earnings (interest expense). During the next twelve months the amount of the June 30, 2017 accumulated other comprehensive income (loss) balance that is expected to be reclassified to interest expense is $2.4 million pre-tax. The fair value of the interest rate swap contract at June 30, 2017 was a $2.8 million liability including $2.0 million recognized as part of accounts payable and accrued liabilities and $.8 million recognized as part of other noncurrent liabilities in our Condensed Consolidated Balance Sheet. The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure: December 31, 2016 June 30, 2017 Carrying Fair Carrying Fair (In millions) Cash, cash equivalents and restricted cash equivalents $ 191.0 $ 191.0 $ 267.0 $ 267.0 Deferred payment obligation 9.0 9.0 9.2 9.2 Long-term debt (excluding capitalized leases): Kronos term loan 335.9 334.6 334.9 340.3 Snake River Sugar Company fixed rate loans 250.0 250.0 250.0 250.0 WCS fixed rate debt 64.0 64.0 63.1 63.1 Valhi credit facility with Contran 278.9 278.9 282.7 282.7 Kronos North American credit facility — — 16.3 16.3 Tremont promissory note payable 14.5 14.5 14.5 14.5 BMI bank note payable 8.4 8.5 — — BMI loan agreement — — 18.7 19.7 LandWell note payable to the City of Henderson 2.9 2.9 2.7 2.7 At December 31, 2016 and June 30, 2017, the estimated market price of Kronos’ term loan was $983 per $1,000 principal amount and $1,005 per $1,000 principal amount, respectively. The fair value of Kronos’ 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 trades were not active. The fair value of our fixed-rate nonrecourse loans from Snake River Sugar Company is based upon the $250 million redemption price of our investment in Amalgamated, which collateralizes the nonrecourse loans (this is a Level 3 input). The fair value of variable interest rate debt and other fixed-rate debt, which represents Level 2 inputs, is deemed to approximate carrying values. See Note 8. Due to their near-term maturities, the carrying amounts of accounts receivable and accounts payable are considered equivalent to fair value. See Notes 4 and 9. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements Not Yet Adopted | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements Not Yet Adopted | Note 18—Recent accounting pronouncements not yet adopted: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In January 2017, the FASB issued ASU 2017-04, Intangibles Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment 2 In March 2017, the FASB issued ASU 2017-07, Compensation— Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
Organization and Basis of Pre25
Organization and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Organization | Organization — We are majority owned by a wholly-owned subsidiary of Contran Corporation (“Contran”), which owns approximately 93% of our outstanding common stock at June 30, 2017. All of Contran's outstanding voting stock is held by a family trust established for the benefit of Lisa K. Simmons and Serena Simmons Connelly and their children, for which Ms. Simmons and Ms. Connelly are co-trustees, or is held directly by Ms. Simmons and Ms. Connelly or entities related to them. Consequently, Ms. Simmons and Ms. Connelly may be deemed to control Contran and us. |
Basis of Presentation | Basis of Presentation— Consolidated in this Quarterly Report are the results of our majority-owned and wholly-owned subsidiaries, including NL Industries, Inc., Kronos Worldwide, Inc., CompX International Inc., Waste Control Specialists LLC (“WCS”), Tremont LLC, Basic Management, Inc. (“BMI”) and The LandWell Company (“LandWell”). Kronos (NYSE: KRO), NL (NYSE: NL), and CompX (NYSE MKT: CIX) each file periodic reports with the Securities and Exchange Commission (“SEC”). The unaudited Condensed Consolidated Financial Statements contained in this Quarterly Report have been prepared on the same basis as the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 that we filed with the SEC on March 13, 2017 (the “2016 Annual Report”). In our opinion, we have made all necessary adjustments (which include only normal recurring adjustments, other than the long-lived asset impairment charge recognized in the second quarter of 2017 as discussed in Note 3, and the reversal of the deferred income tax asset valuation allowance recognized in the second quarter of 2017, as discussed in Note 13) in order to state fairly, in all material respects, our consolidated financial position, results of operations and cash flows as of the dates and for the periods presented. We have condensed the Consolidated Balance Sheet at December 31, 2016 contained in this Quarterly Report as compared to our audited Consolidated Financial Statements at that date, and we have omitted certain information and footnote disclosures (including those related to the Consolidated Balance Sheet at December 31, 2016) normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Our results of operations for the interim periods ended June 30, 2017 may not be indicative of our operating results for the full year. The Condensed Consolidated Financial Statements contained in this Quarterly Report should be read in conjunction with our 2016 Consolidated Financial Statements contained in our 2016 Annual Report. |
Recent Accounting Pronouncements Not Yet Adopted | In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In January 2017, the FASB issued ASU 2017-04, Intangibles Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment 2 In March 2017, the FASB issued ASU 2017-07, Compensation— Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Holding Percentage of Subsidiaries | Business segment Entity % controlled at Chemicals Kronos 80 % Component products CompX 87 % Waste management WCS 100 % Real estate management and development BMI and LandWell 63% - 77 % |
Segment Operating Performance | Three months ended Six months ended 2016 2017 2016 2017 (unaudited) (In millions) Net sales: Chemicals $ 356.0 $ 441.4 $ 674.5 $ 811.2 Component products 27.1 30.1 54.2 60.0 Waste management 11.1 20.5 16.3 42.0 Real estate management and development 4.4 10.2 7.1 15.9 Total net sales $ 398.6 $ 502.2 $ 752.1 $ 929.1 Cost of sales: Chemicals $ 301.0 $ 312.1 $ 579.5 $ 578.9 Component products 18.6 20.5 37.5 40.8 Waste management 13.6 17.9 25.3 34.6 Real estate management and development 3.2 7.9 5.6 12.1 Total cost of sales $ 336.4 $ 358.4 $ 647.9 $ 666.4 Gross margin: Chemicals $ 55.0 $ 129.3 $ 95.0 $ 232.3 Component products 8.5 9.6 16.7 19.2 Waste management (2.5 ) 2.6 (9.0 ) 7.4 Real estate management and development 1.2 2.3 1.5 3.8 Total gross margin $ 62.2 $ 143.8 $ 104.2 $ 262.7 Operating income (loss): Chemicals $ 12.7 $ 73.0 $ 15.7 $ 128.0 Component products 3.7 4.6 7.1 9.1 Waste management (7.1 ) (171.6 ) (17.9 ) (171.0 ) Real estate management and development .5 1.2 (5.4 ) 1.8 Total operating income (loss) 9.8 (92.8 ) (.5 ) (32.1 ) General corporate items: Securities earnings 6.9 7.2 13.7 14.2 Insurance recoveries .2 — .3 .1 Termination fee — 4.0 — 4.0 General expenses, net (8.6 ) (14.7 ) (20.1 ) (27.1 ) Interest expense (15.8 ) (16.0 ) (31.5 ) (31.6 ) Loss before income taxes $ (7.5 ) $ (112.3 ) $ (38.1 ) $ (72.5 ) |
Accounts and Other Receivable27
Accounts and Other Receivables, Net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Components of Accounts and Other Receivables | December 31, June 30, (In millions) Trade accounts receivable: Kronos $ 224.8 $ 314.7 CompX 10.4 12.2 WCS 14.0 15.2 BMI and LandWell 1.3 1.3 VAT and other receivables 18.6 19.1 Refundable income taxes 1.0 1.3 Receivable from affiliates: Contran – trade items .4 .6 Other – trade items 2.8 3.3 Allowance for doubtful accounts (1.1 ) (1.2 ) Total $ 272.2 $ 366.5 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | December 31, June 30, (In millions) Raw materials: Chemicals $ 68.7 $ 80.6 Component products 2.7 2.9 Total raw materials 71.4 83.5 Work in process: Chemicals 22.3 18.9 Component products 9.0 9.8 Total in-process products 31.3 28.7 Finished products: Chemicals 196.4 181.0 Component products 3.2 2.6 Total finished products 199.6 183.6 Supplies (primarily chemicals) 58.3 63.3 Total $ 360.6 $ 359.1 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Marketable Securities | Market Cost Unrealized (In millions) December 31, 2016: Current assets $ 4.4 $ 4.4 $ — Noncurrent assets: The Amalgamated Sugar Company LLC $ 250.0 $ 250.0 $ — Other 3.5 3.7 (.2 ) Total $ 253.5 $ 253.7 $ (.2 ) June 30, 2017: Current assets $ .8 $ .8 $ — Noncurrent assets: The Amalgamated Sugar Company LLC $ 250.0 $ 250.0 $ — Other 7.2 7.4 (.2 ) Total $ 257.2 $ 257.4 $ (.2 ) |
Other Noncurrent Assets (Tables
Other Noncurrent Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Noncurrent Assets | December 31, June 30, (In millions) Other noncurrent assets: Land held for development $ 138.1 $ 131.1 Waste disposal site operating permits, net 42.9 — Restricted cash 24.2 34.8 IBNR receivables 7.1 7.2 Capital lease deposit 6.2 6.2 Pension asset 1.6 2.1 Other 17.9 15.5 Total $ 238.0 $ 196.9 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | December 31, June 30, (In millions) Valhi: Snake River Sugar Company $ 250.0 $ 250.0 Contran credit facility 278.9 282.7 Total Valhi debt 528.9 532.7 Subsidiary debt: Kronos: Term loan 335.9 334.9 North American revolving credit facility — 16.3 WCS: Financing capital lease 64.0 63.1 Tremont: Promissory note payable 14.5 14.5 BMI: Bank note payable – Meadows Bank 8.4 — Bank loan – Western Alliance Bank — 18.7 LandWell: Note payable to the City of Henderson 2.9 2.7 Other 10.4 9.7 Total subsidiary debt 436.1 459.9 Total debt 965.0 992.6 Less current maturities 7.8 7.6 Total long-term debt $ 957.2 $ 985.0 |
Accounts Payable and Accrued 32
Accounts Payable and Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Payables And Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | December 31, June 30, (In millions) Accounts payable: Kronos $ 84.9 $ 95.8 CompX 2.6 3.5 WCS 1.6 2.1 BMI and LandWell 2.2 4.4 NL 2.4 1.1 Other .7 .3 Payable to affiliates: Contran – trade items 31.4 33.6 Contran – income taxes 5.5 6.4 LPC – trade items 14.7 14.7 Employee benefits 29.2 27.8 Deferred income 32.0 25.8 Accrued sales discounts and rebates 22.6 21.4 Environmental remediation and related costs 15.3 14.8 Reserve for uncertain tax positions 3.3 3.3 Accrued workforce reduction costs 1.2 .2 Interest rate swap 2.8 2.0 Other 28.8 43.8 Total $ 281.2 $ 301.0 |
Other Noncurrent Liabilities (T
Other Noncurrent Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Noncurrent Liabilities | December 31, June 30, (In millions) Reserve for uncertain tax positions $ 35.7 $ 37.6 Asset retirement obligations 30.7 32.0 Deferred income 12.6 11.5 Employee benefits 7.6 8.2 Insurance claims and expenses 9.5 10.0 Deferred payment obligation 9.0 9.2 Other 8.8 11.7 Total $ 113.9 $ 120.2 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Defined Benefit Pension Plans | |
Components of Net Periodic Defined Benefit Cost | Defined benefit plans – The components of our net periodic defined benefit pension cost are presented in the table below. Three months ended Six months ended 2016 2017 2016 2017 (In millions) Service cost $ 2.5 $ 2.8 $ 5.0 $ 5.5 Interest cost 4.5 3.9 8.9 7.7 Expected return on plan assets (4.7 ) (3.2 ) (9.2 ) (6.4 ) Amortization of unrecognized prior service cost .2 .1 .4 .2 Recognized actuarial losses 3.4 3.7 6.6 7.3 Total $ 5.9 $ 7.3 $ 11.7 $ 14.3 |
OPEB | |
Components of Net Periodic Defined Benefit Cost | Other postretirement benefits – The components of our net periodic other postretirement benefit cost are presented in the table below. Three months ended Six months ended 2016 2017 2016 2017 (In millions) Service cost $ .1 $ .1 $ .1 $ .1 Interest cost — .1 .2 .2 Amortization of prior service credit (.4 ) (.3 ) (.9 ) (.5 ) Recognized actuarial gains — — (.1 ) (.1 ) Total $ (.3 ) $ (.1 ) $ (.7 ) $ (.3 ) |
Other Income, Net (Tables)
Other Income, Net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Other Income And Expenses [Abstract] | |
Schedule of Components of Other Income | Six months ended 2016 2017 (In millions) Securities earnings: Dividends and interest $ 13.6 $ 14.2 Securities transactions, net .1 — Total 13.7 14.2 Currency transactions, net 4.2 (3.7 ) Insurance recoveries .3 .1 Business interruption insurance proceeds 3.4 — Termination fee — 4.0 Other, net .5 .7 Total $ 22.1 $ 15.3 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Component of Income Taxes Expenses | Three months ended Six months ended 2016 2017 2016 2017 (In millions) Expected tax benefit, at U.S. federal statutory income tax rate of 35% $ (2.6 ) $ (39.3 ) $ (13.3 ) $ (25.4 ) Incremental net tax on earnings and losses of non-U.S., U.S. and non-tax group companies .3 37.1 2.7 48.3 Non-U.S. tax rates (.6 ) (2.3 ) (.4 ) (4.7 ) Valuation allowance 2.9 (157.6 ) 2.9 (162.6 ) Adjustment to the reserve for uncertain tax positions, net .4 .6 .6 1.1 Nondeductible expenses .5 .3 .6 .8 Domestic production activities deduction (.5 ) (1.5 ) (.8 ) (2.1 ) U.S. state income taxes (.1 ) (4.7 ) (.5 ) (4.7 ) Other, net (.1 ) — (.2 ) (.1 ) Income tax expense (benefit) $ .2 $ (167.4 ) $ (8.4 ) $ (149.4 ) Comprehensive provision for income taxes (benefit) allocable to: Income tax expense (benefit) $ .2 $ (167.4 ) $ (8.4 ) $ (149.4 ) Other comprehensive income (loss): Marketable securities .4 (.3 ) .2 (.5 ) Currency translation (1.0 ) 16.4 1.8 18.1 Interest rate swap (.6 ) (.3 ) (2.7 ) .1 Pension plans .9 2.2 1.7 3.1 OPEB plans (.2 ) (.1 ) (.4 ) (.2 ) Total $ (.3 ) $ (149.5 ) $ (7.8 ) $ (128.8 ) |
Noncontrolling Interest in Su37
Noncontrolling Interest in Subsidiaries (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest in Net Assets of Subsidiaries | December 31, June 30, (In millions) Noncontrolling interest in net assets: Kronos Worldwide $ 134.5 $ 178.8 NL Industries 44.3 53.0 CompX International 16.4 17.0 BMI 24.6 24.8 LandWell 23.7 24.1 Total $ 243.5 $ 297.7 |
Schedule of Noncontrolling Interest in Net Income (Loss) of Subsidiaries | Six months ended June 30, 2016 2017 (In millions) Noncontrolling interest in net income (loss) of subsidiaries: Kronos Worldwide $ (.5 ) $ 45.6 NL Industries (.2 ) 8.4 CompX International .6 .9 BMI (1.3 ) .2 LandWell (.3 ) .3 Total $ (1.7 ) $ 55.4 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) attributable to Valhi stockholders for the three and six months ended June 30, 2016 and 2017 are presented in the table below. Three months ended Six months ended 2016 2017 2016 2017 (In millions) Accumulated other comprehensive income (loss), net of tax and noncontrolling interest: Marketable securities: Balance at beginning of period $ 1.6 $ 1.7 $ 1.6 $ 1.7 Other comprehensive income– unrealized gains arising during the period .1 — .1 — Balance at end of period $ 1.7 $ 1.7 $ 1.7 $ 1.7 Interest rate swap: Balance at beginning of period $ (3.0 ) $ (.8 ) $ (1.3 ) $ (1.2 ) Other comprehensive income (loss): Unrealized losses arising during the year (.8 ) (.5 ) (2.8 ) (.5 ) Less reclassification adjustment for amounts included in interest expense .3 .2 .6 .6 Balance at end of period $ (3.5 ) $ (1.1 ) $ (3.5 ) $ (1.1 ) Currency translation adjustment: Balance at beginning of period $ (69.4 ) $ (83.1 ) $ (78.1 ) $ (88.5 ) Other comprehensive income (loss) (3.0 ) 9.3 5.7 14.7 Balance at end of period $ (72.4 ) $ (73.8 ) $ (72.4 ) $ (73.8 ) Defined benefit pension plans: Balance at beginning of period $ (121.1 ) $ (135.0 ) $ (123.0 ) $ (137.0 ) Other comprehensive income— amortization of prior service cost and net losses included in net periodic pension cost 1.8 .6 3.7 2.6 Balance at end of period $ (119.3 ) $ (134.4 ) $ (119.3 ) $ (134.4 ) OPEB plans: Balance at beginning of period $ 3.5 $ 2.9 $ 3.8 $ 3.1 Other comprehensive loss – amortization of prior service credit (.2 ) (.2 ) (.5 ) (.4 ) Balance at end of period $ 3.3 $ 2.7 $ 3.3 $ 2.7 Total accumulated other comprehensive income (loss): Balance at beginning of period $ (188.4 ) $ (214.3 ) $ (197.0 ) $ (221.9 ) Other comprehensive income (loss) (1.8 ) 9.4 6.8 17.0 Balance at end of period $ (190.2 ) $ (204.9 ) $ (190.2 ) $ (204.9 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Change in Accrued Environmental Remediation and Related Costs | The table below presents a summary of the activity in our accrued environmental costs during the first six months of 2017 are presented below. Amount (In millions) Balance at the beginning of the year $ 122.6 Additions charged to expense, net 3.2 Payments, net (1.0 ) Currency and other .1 Balance at the end of period $ 124.9 Amounts recognized in our Condensed Consolidated Balance Sheet at the end of the period: Current liabilities $ 14.8 Noncurrent liabilities 110.1 Total $ 124.9 |
Fair Value Measurements and F40
Fair Value Measurements and Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Marketable Securities and Financial Instruments on Fair Value Basis | The following table summarizes the valuation of our marketable securities, financial instruments and other items recorded on a fair value basis as of: Fair Value Measurements Total Quoted Significant Significant (In millions) Asset (liability) December 31, 2016: Marketable securities: Current $ 4.4 $ — $ 4.4 $ — Noncurrent 253.5 .6 2.9 250.0 Interest rate swap (3.1 ) — (3.1 ) — June 30, 2017: Marketable securities: Current $ .8 $ — $ .8 $ — Noncurrent 257.2 2.5 4.7 250.0 Interest rate swap (2.8 ) — (2.8 ) — |
Financial Instruments not Carried at Fair Value | The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure: December 31, 2016 June 30, 2017 Carrying Fair Carrying Fair (In millions) Cash, cash equivalents and restricted cash equivalents $ 191.0 $ 191.0 $ 267.0 $ 267.0 Deferred payment obligation 9.0 9.0 9.2 9.2 Long-term debt (excluding capitalized leases): Kronos term loan 335.9 334.6 334.9 340.3 Snake River Sugar Company fixed rate loans 250.0 250.0 250.0 250.0 WCS fixed rate debt 64.0 64.0 63.1 63.1 Valhi credit facility with Contran 278.9 278.9 282.7 282.7 Kronos North American credit facility — — 16.3 16.3 Tremont promissory note payable 14.5 14.5 14.5 14.5 BMI bank note payable 8.4 8.5 — — BMI loan agreement — — 18.7 19.7 LandWell note payable to the City of Henderson 2.9 2.9 2.7 2.7 |
Organization and Basis of Pre41
Organization and Basis of Presentation - Additional Information (Detail) | Jun. 30, 2017 |
Contran | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |
Parent company ownership interest | 93.00% |
Business Segment Information -
Business Segment Information - Holding Percentage of Subsidiaries (Detail) | Jun. 30, 2017 |
Kronos Worldwide, Inc. | |
Segment Reporting Information [Line Items] | |
Parent company ownership interest | 50.00% |
BMI | |
Segment Reporting Information [Line Items] | |
Parent company ownership interest | 63.00% |
LandWell | |
Segment Reporting Information [Line Items] | |
Parent company ownership interest | 27.00% |
Chemicals | Kronos Worldwide, Inc. | |
Segment Reporting Information [Line Items] | |
Controlling interest in subsidiary | 80.00% |
Component Products | CompX | |
Segment Reporting Information [Line Items] | |
Parent company ownership interest | 87.00% |
Waste Management | Waste Control Specialists | |
Segment Reporting Information [Line Items] | |
Parent company ownership interest | 100.00% |
Real Estate Management And Development | BMI | |
Segment Reporting Information [Line Items] | |
Parent company ownership interest | 63.00% |
Real Estate Management And Development | LandWell | Aggregate General And Limited Interests | |
Segment Reporting Information [Line Items] | |
Controlling interest in subsidiary | 77.00% |
Business Segment Information 43
Business Segment Information - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | |||||
Contract related intangible asset impairment | $ 5.1 | ||||
Business interruption insurance proceeds | 3.4 | ||||
Long-lived asset impairment | $ 170.6 | $ 170.6 | |||
Real Estate Management And Development | Customer Relationships | |||||
Segment Reporting Information [Line Items] | |||||
Contract related intangible asset impairment | $ 5.1 | 5.1 | |||
Chemicals | |||||
Segment Reporting Information [Line Items] | |||||
Business interruption insurance proceeds | $ 1.4 | $ 3.4 | |||
Waste Management | |||||
Segment Reporting Information [Line Items] | |||||
Long-lived asset impairment | $ 170.6 | $ 170.6 | |||
Kronos Worldwide, Inc. | |||||
Segment Reporting Information [Line Items] | |||||
Direct ownership percentage by parent | 50.00% | 50.00% | |||
Indirect controlling interest in subsidiary | 30.00% | 30.00% | |||
NL | |||||
Segment Reporting Information [Line Items] | |||||
Direct ownership percentage by parent | 83.00% | 83.00% | |||
LandWell | |||||
Segment Reporting Information [Line Items] | |||||
Direct ownership percentage by parent | 27.00% | 27.00% | |||
Indirect controlling interest in subsidiary | 50.00% | 50.00% | |||
BMI | |||||
Segment Reporting Information [Line Items] | |||||
Direct ownership percentage by parent | 63.00% | 63.00% | |||
BMI | Real Estate Management And Development | |||||
Segment Reporting Information [Line Items] | |||||
Direct ownership percentage by parent | 63.00% | 63.00% |
Business Segment Information 44
Business Segment Information - Segment Operating Performance (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 502.2 | $ 398.6 | $ 929.1 | $ 752.1 |
Cost of sales | 358.4 | 336.4 | 666.4 | 647.9 |
Gross margin | 143.8 | 62.2 | 262.7 | 104.2 |
Operating income (loss) | (92.8) | 9.8 | (32.1) | (0.5) |
Securities earnings | 7.2 | 6.9 | 14.2 | 13.7 |
Insurance recoveries | 0.2 | 0.1 | 0.3 | |
Termination fee | 4 | 4 | ||
General expenses, net | (14.7) | (8.6) | (27.1) | (20.1) |
Interest expense | (16) | (15.8) | (31.6) | (31.5) |
Loss before income taxes | (112.3) | (7.5) | (72.5) | (38.1) |
Chemicals | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 441.4 | 356 | 811.2 | 674.5 |
Cost of sales | 312.1 | 301 | 578.9 | 579.5 |
Gross margin | 129.3 | 55 | 232.3 | 95 |
Operating income (loss) | 73 | 12.7 | 128 | 15.7 |
Component Products | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 30.1 | 27.1 | 60 | 54.2 |
Cost of sales | 20.5 | 18.6 | 40.8 | 37.5 |
Gross margin | 9.6 | 8.5 | 19.2 | 16.7 |
Operating income (loss) | 4.6 | 3.7 | 9.1 | 7.1 |
Waste Management | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 20.5 | 11.1 | 42 | 16.3 |
Cost of sales | 17.9 | 13.6 | 34.6 | 25.3 |
Gross margin | 2.6 | (2.5) | 7.4 | (9) |
Operating income (loss) | (171.6) | (7.1) | (171) | (17.9) |
Real Estate Management And Development | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 10.2 | 4.4 | 15.9 | 7.1 |
Cost of sales | 7.9 | 3.2 | 12.1 | 5.6 |
Gross margin | 2.3 | 1.2 | 3.8 | 1.5 |
Operating income (loss) | $ 1.2 | $ 0.5 | $ 1.8 | $ (5.4) |
Long-lived Asset Impairment - A
Long-lived Asset Impairment - Additional Information (Detail) - USD ($) $ in Millions | Nov. 18, 2015 | Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2017 |
Impaired Long Lived Assets Held And Used [Line Items] | ||||
Termination fee | $ 4 | $ 4 | ||
Impairment of long lived assets held for use | 170.6 | 170.6 | ||
Property and equipment, salvage value | $ 5.7 | $ 5.7 | 5.7 | |
WCS | ||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||
Termination fee | $ 4 | |||
Impairment of long lived assets held for use | 170.6 | |||
WCS | Net Property and Equipment | ||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||
Impairment of long lived assets held for use | 127.5 | |||
WCS | Disposal Site Operating Permits, Net | ||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||
Impairment of long lived assets held for use | 42 | |||
WCS | Other Asset | ||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||
Impairment of long lived assets held for use | $ 1.1 | |||
WCS | Divestiture Terms Previously Pending | ||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||
Proceeds from sale of subsidiary | $ 270 |
Accounts and Other Receivable46
Accounts and Other Receivables, Net - Components of Accounts and Other Receivables (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Trade accounts receivable: | ||
VAT and other receivables | $ 19.1 | $ 18.6 |
Refundable income taxes | 1.3 | 1 |
Allowance for doubtful accounts | (1.2) | (1.1) |
Total | 366.5 | 272.2 |
Trade Accounts Receivable | Kronos Worldwide, Inc. | ||
Trade accounts receivable: | ||
Accounts receivable | 314.7 | 224.8 |
Trade Accounts Receivable | CompX | ||
Trade accounts receivable: | ||
Accounts receivable | 12.2 | 10.4 |
Trade Accounts Receivable | Waste Control Specialists | ||
Trade accounts receivable: | ||
Accounts receivable | 15.2 | 14 |
Trade Accounts Receivable | BMI and LandWell | ||
Trade accounts receivable: | ||
Accounts receivable | 1.3 | 1.3 |
Trade Items | Contran | ||
Trade accounts receivable: | ||
Receivable from affiliates | 0.6 | 0.4 |
Trade Items | Other | ||
Trade accounts receivable: | ||
Receivable from affiliates | $ 3.3 | $ 2.8 |
Inventories, Net - Inventories,
Inventories, Net - Inventories, Net (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Raw materials | $ 83.5 | $ 71.4 |
Work in process | 28.7 | 31.3 |
Finished products | 183.6 | 199.6 |
Supplies (primarily chemicals) | 63.3 | 58.3 |
Total | 359.1 | 360.6 |
Chemicals | ||
Inventory [Line Items] | ||
Raw materials | 80.6 | 68.7 |
Work in process | 18.9 | 22.3 |
Finished products | 181 | 196.4 |
Component Products | ||
Inventory [Line Items] | ||
Raw materials | 2.9 | 2.7 |
Work in process | 9.8 | 9 |
Finished products | $ 2.6 | $ 3.2 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Marketable Securities (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Market value, available for sale securities, current | $ 0.8 | $ 4.4 |
Market value, available for sale securities, noncurrent | 257.2 | 253.5 |
Non Current Assets | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost basis | 257.4 | 253.7 |
Unrealized losses, net | (0.2) | (0.2) |
Current Assets | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost basis | 0.8 | 4.4 |
Unrealized losses, net | 0 | 0 |
Other | Non Current Assets | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Market value, available for sale securities, noncurrent | 7.2 | 3.5 |
Cost basis | 7.4 | 3.7 |
Unrealized losses, net | (0.2) | (0.2) |
Amalgamated Sugar Company LLC | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Market value, available for sale securities, noncurrent | 250 | |
Amalgamated Sugar Company LLC | Non Current Assets | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Market value, available for sale securities, noncurrent | 250 | 250 |
Cost basis | 250 | 250 |
Unrealized losses, net | $ 0 | $ 0 |
Other Noncurrent Assets - Other
Other Noncurrent Assets - Other Noncurrent Assets (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Other noncurrent assets: | ||
Land held for development | $ 131.1 | $ 138.1 |
Restricted cash | 34.8 | 24.2 |
IBNR receivables | 7.2 | 7.1 |
Capital lease deposit | 6.2 | 6.2 |
Pension asset | 2.1 | 1.6 |
Other | 15.5 | 17.9 |
Total | $ 196.9 | 238 |
Waste Management | Capitalized Operating Permits | ||
Other noncurrent assets: | ||
Waste disposal site operating permits, net | $ 42.9 |
Other Noncurrent Assets - Addit
Other Noncurrent Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2013 | |
Other Assets Non Current [Line Items] | ||||
Contract related intangible asset impairment | $ 5.1 | |||
Real Estate Management And Development | City Of Henderson | ||||
Other Assets Non Current [Line Items] | ||||
Delivery contract extended period | 25 years | |||
Water delivery contract revenue, percentage | 70.00% | |||
Real Estate Management And Development | Customer Relationships | ||||
Other Assets Non Current [Line Items] | ||||
Indefinite-lived intangible asset | $ 5.1 | |||
Contract related intangible asset impairment | $ 5.1 | $ 5.1 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Long-term debt | ||
Total debt | $ 992.6 | $ 965 |
Less current maturities | 7.6 | 7.8 |
Total long-term debt | 985 | 957.2 |
VALHI, INC. | ||
Long-term debt | ||
Total debt | 532.7 | 528.9 |
VALHI, INC. | Contran Credit Facility | ||
Long-term debt | ||
Total debt | 282.7 | 278.9 |
VALHI, INC. | Notes Payable, Other Payables | Snake River | ||
Long-term debt | ||
Total debt | 250 | 250 |
Kronos Worldwide, Inc. | North American Revolving Credit Facility | ||
Long-term debt | ||
Total debt | 16.3 | |
Kronos Worldwide, Inc. | 2014 Term Loan | ||
Long-term debt | ||
Total debt | 334.9 | 335.9 |
Waste Control Specialists | Financing Capital Lease Obligation | ||
Long-term debt | ||
Total debt | 63.1 | 64 |
Tremont | Promissory Note | ||
Long-term debt | ||
Total debt | 14.5 | 14.5 |
BMI | Bank note payable | Meadows Bank | ||
Long-term debt | ||
Total debt | 8.4 | |
BMI | Bank loan | Western Alliance Bank | ||
Long-term debt | ||
Total debt | 18.7 | |
LandWell | Unsecured Debt | ||
Long-term debt | ||
Total debt | 2.7 | 2.9 |
Other Subsidiary | Other | ||
Long-term debt | ||
Total debt | 9.7 | 10.4 |
Subsidiary | ||
Long-term debt | ||
Total debt | $ 459.9 | $ 436.1 |
Long-Term Debt - Valhi Contran
Long-Term Debt - Valhi Contran Credit Facility - Additional Information (Detail) - VALHI, INC. - Contran Credit Facility $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Debt Instrument [Line Items] | |
Credit facility, Amount borrowed | $ 3.8 |
Debt instrument, Interest rate at period end | 5.25% |
Debt instrument, average interest rate during period | 4.88% |
Amount available for borrowing | $ 42.3 |
Long-Term Debt - Kronos Term Lo
Long-Term Debt - Kronos Term Loan - Additional Information (Detail) - Kronos Worldwide, Inc. - Notes Payable, Other Payables - 2014 Term Loan $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Debt Instrument [Line Items] | |
Quarterly principal payment | $ 1.8 |
Debt instrument, average interest rate during period | 4.10% |
Debt instrument, Effective interest rate at period end | 4.30% |
Unamortized discount balance | $ 0.7 |
Debt issuance cost | $ 3 |
Long-Term Debt - Revolving Cred
Long-Term Debt - Revolving Credit Facility - Additional Information (Detail) - Kronos Worldwide, Inc. € in Millions, $ in Millions | 1 Months Ended | 6 Months Ended | |
Jan. 31, 2017 | Jun. 30, 2017USD ($) | Jun. 30, 2017EUR (€) | |
Foreign Line of Credit | Europe | |||
Line Of Credit Facility [Line Items] | |||
Amount available for borrowing | $ 137.1 | € 120 | |
Line of credit, maturity date | Sep. 30, 2017 | ||
North American Revolving Credit Facility | |||
Line Of Credit Facility [Line Items] | |||
Line of credit maturity, description | In January 2017, Kronos extended the maturity date of its North American revolving credit facility to the earlier of (i) January 30, 2022 or (ii) 90 days prior to the maturity date of our existing term loan indebtedness (or 90 days prior to the maturity date of any indebtedness incurred in a permitted refinancing of such existing term loan indebtedness). Based on the February 2020 maturity date of our existing term loan, the maturity date of the North American revolving credit facility is currently November 2019. | ||
Revolving credit facility, borrowings | $ 16.3 | ||
Debt instrument, Interest rate at period end | 5.00% | 5.00% | |
Debt instrument, average interest rate during period | 4.80% | ||
Amount available for borrowing | $ 91.4 | ||
North American Revolving Credit Facility | Maturity Date Option 1 | |||
Line Of Credit Facility [Line Items] | |||
Line of credit, maturity date | Jan. 30, 2022 | ||
North American Revolving Credit Facility | Maturity Date Option 2 | |||
Line Of Credit Facility [Line Items] | |||
Line of credit, maturity date | Nov. 30, 2019 | ||
Maturity date of term loan | 90 days | ||
Maturity date permitted refinancing of term loan | 90 days |
Long-Term Debt - Other - Additi
Long-Term Debt - Other - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |
Feb. 28, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | |
Debt Instrument [Line Items] | |||
Repayment of note payable | $ 148.9 | $ 101.5 | |
BMI | Bank note payable | Meadows Bank | |||
Debt Instrument [Line Items] | |||
Repayment of note payable | $ 8.5 | ||
BMI | 2017 Bank Loan | Bank note payable | Western Alliance Bank | |||
Debt Instrument [Line Items] | |||
Principal amount of loan agreement | $ 20.5 | ||
Frequency of debt instrument payment | semi-annual | ||
Debt instrument, payment terms | The agreement requires semi-annual payments of principal and interest on June 1 and December 1 aggregating $1.9 million annually beginning on June 1, 2017 through the maturity date in June 2032 (except during 2017 which calls for prorated aggregate principal and interest payments of $1.6 million). | ||
Periodic principal and interest payments | $ 1.9 | ||
Loans maturity period | 2032-06 | ||
Prorated principal and interest payments | $ 1.6 | ||
Interest rate | 5.34% | ||
Debt issuance cost | $ 1 |
Accounts Payable and Accrued 56
Accounts Payable and Accrued Liabilities - Schedule of Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Payable to affiliates: | ||
Employee benefits | $ 27.8 | $ 29.2 |
Deferred income | 25.8 | 32 |
Accrued sales discounts and rebates | 21.4 | 22.6 |
Environmental remediation and related costs | 14.8 | 15.3 |
Reserve for uncertain tax positions | 3.3 | 3.3 |
Accrued workforce reduction costs | 0.2 | 1.2 |
Other | 43.8 | 28.8 |
Total | 301 | 281.2 |
Kronos Worldwide, Inc. | ||
Accounts payable: | ||
Accounts payable | 95.8 | 84.9 |
CompX | ||
Accounts payable: | ||
Accounts payable | 3.5 | 2.6 |
Waste Control Specialists | ||
Accounts payable: | ||
Accounts payable | 2.1 | 1.6 |
BMI and LandWell | ||
Accounts payable: | ||
Accounts payable | 4.4 | 2.2 |
NL | ||
Accounts payable: | ||
Accounts payable | 1.1 | 2.4 |
Other | ||
Accounts payable: | ||
Accounts payable | 0.3 | 0.7 |
Contran | Trade Accounts Payables | ||
Payable to affiliates: | ||
Payable to affiliates | 33.6 | 31.4 |
Contran | Income Taxes Payables | ||
Payable to affiliates: | ||
Payable to affiliates | 6.4 | 5.5 |
LPC | Trade Accounts Payables | ||
Payable to affiliates: | ||
Payable to affiliates | 14.7 | 14.7 |
Interest Rate Swap | ||
Payable to affiliates: | ||
Hedging liabilities | $ 2 | $ 2.8 |
Other Noncurrent Liabilities -
Other Noncurrent Liabilities - Other Noncurrent Liabilities (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Other Liabilities Disclosure [Abstract] | ||
Reserve for uncertain tax positions | $ 37.6 | $ 35.7 |
Asset retirement obligations | 32 | 30.7 |
Deferred income | 11.5 | 12.6 |
Employee benefits | 8.2 | 7.6 |
Insurance claims and expenses | 10 | 9.5 |
Deferred payment obligation | 9.2 | 9 |
Other | 11.7 | 8.8 |
Total | $ 120.2 | $ 113.9 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Defined Benefit Pension Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Defined Benefit Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 2.8 | $ 2.5 | $ 5.5 | $ 5 | $ 9.9 |
Interest cost | 3.9 | 4.5 | 7.7 | 8.9 | |
Expected return on plan assets | (3.2) | (4.7) | (6.4) | (9.2) | |
Amortization of unrecognized prior service cost | 0.1 | 0.2 | 0.2 | 0.4 | |
Recognized actuarial losses | 3.7 | 3.4 | 7.3 | 6.6 | |
Total | 7.3 | 5.9 | 14.3 | 11.7 | $ 22.9 |
OPEB | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 0.1 | 0.1 | 0.1 | 0.1 | |
Interest cost | 0.1 | 0.2 | 0.2 | ||
Amortization of unrecognized prior service cost | (0.3) | (0.4) | (0.5) | (0.9) | |
Recognized actuarial losses | (0.1) | (0.1) | |||
Total | $ (0.1) | $ (0.3) | $ (0.3) | $ (0.7) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) $ in Millions | Jun. 30, 2017USD ($) |
Defined Benefit Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution | $ 16 |
OPEB | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution | $ 1.1 |
Other Income, Net - Schedule of
Other Income, Net - Schedule of Components of Other Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Securities earnings: | ||||
Dividends and interest | $ 14.2 | $ 13.6 | ||
Securities transactions, net | 0.1 | |||
Total | $ 7.2 | $ 6.9 | 14.2 | 13.7 |
Currency transactions, net | (3.7) | 4.2 | ||
Insurance recoveries | 0.2 | 0.1 | 0.3 | |
Business interruption insurance proceeds | 3.4 | |||
Termination fee | 4 | 4 | ||
Other, net | 0.7 | 0.5 | ||
Total | $ 7.7 | $ 10.7 | $ 15.3 | $ 22.1 |
Other Income, Net - Additional
Other Income, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Disclosure Other Income Net Additional Information Detail [Line Items] | ||
Income received from settlement of business interruption insurance claim | $ 3.4 | |
Kronos Worldwide, Inc. | Other Income | Insurance Claim Arising In 2014 | ||
Disclosure Other Income Net Additional Information Detail [Line Items] | ||
Income received from settlement of business interruption insurance claim | $ 1.4 | $ 3.4 |
Income Taxes - Components of Co
Income Taxes - Components of Comprehensive Provision for Income Taxes Allocation (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Schedule Of Income Tax [Line Items] | ||||
Expected tax benefit, at U.S. federal statutory income tax rate of 35% | $ (39.3) | $ (2.6) | $ (25.4) | $ (13.3) |
Incremental net tax on earnings and losses of non-U.S., U.S. and non-tax group companies | 37.1 | 0.3 | 48.3 | 2.7 |
Non-U.S. tax rates | (2.3) | (0.6) | (4.7) | (0.4) |
Valuation allowance | (157.6) | 2.9 | (162.6) | 2.9 |
Adjustment to the reserve for uncertain tax positions, net | 0.6 | 0.4 | 1.1 | 0.6 |
Nondeductible expenses | 0.3 | 0.5 | 0.8 | 0.6 |
Domestic production activities deduction | (1.5) | (0.5) | (2.1) | (0.8) |
U.S. state income taxes | (4.7) | (0.1) | (4.7) | (0.5) |
Other, net | (0.1) | (0.1) | (0.2) | |
Income tax expense (benefit) | (167.4) | 0.2 | (149.4) | (8.4) |
Comprehensive provision for income taxes (benefit) allocable to: | ||||
Income tax expense (benefit) | (167.4) | 0.2 | (149.4) | (8.4) |
Other comprehensive income (loss): | ||||
Marketable securities | (0.3) | 0.4 | (0.5) | 0.2 |
Currency translation | 16.4 | (1) | 18.1 | 1.8 |
Interest rate swap | (0.3) | (0.6) | 0.1 | (2.7) |
Total | (149.5) | (0.3) | (128.8) | (7.8) |
Pension Plans | ||||
Other comprehensive income (loss): | ||||
Defined benefit plans | 2.2 | 0.9 | 3.1 | 1.7 |
OPEB Plans | ||||
Other comprehensive income (loss): | ||||
Defined benefit plans | $ (0.1) | $ (0.2) | $ (0.2) | $ (0.4) |
Income Taxes - Components of 63
Income Taxes - Components of Comprehensive Provision for Income Taxes Allocation (Parenthetical) (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% | 35.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) CAD in Millions, $ in Millions | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016 | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2017CAD |
Income Taxes Disclosure [Line Items] | |||||||||||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% | 35.00% | |||||||
Reversal of deferred income tax asset valuation | $ 163 | ||||||||||
Estimated reversal of deferred income tax asset valuation allowance | $ 20 | $ 20 | $ 20 | ||||||||
Income tax examination, description | 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 matters will be resolved in our favor, and therefore our potential exposure, if any, is also uncertain. 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. As a result of ongoing audits in certain jurisdictions, in 2008 Kronos filed Advance Pricing Agreement Requests with the tax authorities in the U.S., Canada and Germany. These requests have been under review with the respective tax authorities since 2008 and prior to 2016, it was uncertain whether an agreement would be reached between the tax authorities and whether we would agree to execute and finalize such agreements. During 2016, Contran, as the ultimate parent of our U.S. Consolidated income tax group, executed and finalized an Advance Pricing Agreement with the U.S. Internal Revenue Service and our Canadian subsidiary executed and finalized an Advance Pricing Agreement with the Competent Authority for Canada (collectively, the “U.S.-Canada APA”) effective for tax years 2005 - 2015. | ||||||||||
Income taxes | 11.5 | $ 5.1 | 11.5 | $ 11.5 | $ 5.1 | ||||||
Increase (decrease) in unrecognized tax benefits | (15) | (15) | (15) | ||||||||
Kronos Worldwide, Inc. | Earliest Tax Year | US-Canada APA | |||||||||||
Income Taxes Disclosure [Line Items] | |||||||||||
Effective tax year | 2,005 | ||||||||||
Kronos Worldwide, Inc. | Latest Tax Year | US-Canada APA | |||||||||||
Income Taxes Disclosure [Line Items] | |||||||||||
Effective tax year | 2,015 | ||||||||||
Kronos Worldwide, Inc. | Direct investment in subsidiary excess carrying amount | |||||||||||
Income Taxes Disclosure [Line Items] | |||||||||||
Deferred income taxes expense (benefit) | $ (29.3) | $ (29.3) | $ (29.3) | 39.5 | $ 3.4 | $ 6.5 | |||||
Kronos Worldwide, Inc. | Germany | Corporate Tax Purposes | |||||||||||
Income Taxes Disclosure [Line Items] | |||||||||||
Net operating loss carryforwards | 638 | 638 | |||||||||
Kronos Worldwide, Inc. | Germany | Trade Tax Purposes | |||||||||||
Income Taxes Disclosure [Line Items] | |||||||||||
Net operating loss carryforwards | 71 | 71 | |||||||||
Kronos Worldwide, Inc. | Belgium | Corporate Tax Purposes | |||||||||||
Income Taxes Disclosure [Line Items] | |||||||||||
Net operating loss carryforwards | 93 | 93 | |||||||||
Kronos Canadian Subsidiary | US-Canada APA | |||||||||||
Income Taxes Disclosure [Line Items] | |||||||||||
Income taxes | 2.3 | 2.3 | 2.3 | CAD 3 | |||||||
Current Periods Net Operating Loss Utilization | Kronos Worldwide, Inc. | Germany and Belgium | |||||||||||
Income Taxes Disclosure [Line Items] | |||||||||||
Deferred income tax asset valuation allowance | $ (2.2) | ||||||||||
Deferred income taxes expense (benefit) | $ (7.7) | (12.7) | |||||||||
Expected Future Periods Net Operating Loss Utilization | Kronos Worldwide, Inc. | |||||||||||
Income Taxes Disclosure [Line Items] | |||||||||||
Deferred income tax asset valuation allowance | 149.9 | (173) | |||||||||
Expected Future Periods Net Operating Loss Utilization | Kronos Worldwide, Inc. | Germany | |||||||||||
Income Taxes Disclosure [Line Items] | |||||||||||
Deferred income tax asset valuation allowance | 141.9 | (153) | |||||||||
Expected Future Periods Net Operating Loss Utilization | Kronos Worldwide, Inc. | Belgium | |||||||||||
Income Taxes Disclosure [Line Items] | |||||||||||
Deferred income tax asset valuation allowance | $ 8 | $ (20) | |||||||||
Effect of Currency Exchange Rates | Kronos Worldwide, Inc. | Germany and Belgium | |||||||||||
Income Taxes Disclosure [Line Items] | |||||||||||
Deferred income tax asset valuation allowance | $ 9.5 |
Noncontrolling Interest in Su65
Noncontrolling Interest in Subsidiaries - Noncontrolling Interest in Net Assets of Subsidiaries (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | $ 297.7 | $ 243.5 |
Kronos Worldwide, Inc. | ||
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | 178.8 | 134.5 |
NL Industries | ||
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | 53 | 44.3 |
CompX International | ||
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | 17 | 16.4 |
BMI | ||
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | 24.8 | 24.6 |
LandWell | ||
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | $ 24.1 | $ 23.7 |
Noncontrolling interest in Su66
Noncontrolling interest in Subsidiaries - Schedule of Noncontrolling Interest in Net Income (Loss) of Subsidiaries (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Noncontrolling interest in net income (loss) of subsidiaries: | ||||
Noncontrolling interest in net income (loss) of subsidiaries | $ 46.3 | $ 0.8 | $ 55.4 | $ (1.7) |
Kronos Worldwide, Inc. | ||||
Noncontrolling interest in net income (loss) of subsidiaries: | ||||
Noncontrolling interest in net income (loss) of subsidiaries | 45.6 | (0.5) | ||
NL Industries | ||||
Noncontrolling interest in net income (loss) of subsidiaries: | ||||
Noncontrolling interest in net income (loss) of subsidiaries | 8.4 | (0.2) | ||
CompX International | ||||
Noncontrolling interest in net income (loss) of subsidiaries: | ||||
Noncontrolling interest in net income (loss) of subsidiaries | 0.9 | 0.6 | ||
BMI | ||||
Noncontrolling interest in net income (loss) of subsidiaries: | ||||
Noncontrolling interest in net income (loss) of subsidiaries | 0.2 | (1.3) | ||
LandWell | ||||
Noncontrolling interest in net income (loss) of subsidiaries: | ||||
Noncontrolling interest in net income (loss) of subsidiaries | $ 0.3 | $ (0.3) |
Accumulated Other Comprehensi67
Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | $ 200.9 | |||
Balance at end of period | $ 226.1 | 226.1 | ||
Marketable Securities | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | 1.7 | $ 1.6 | 1.7 | $ 1.6 |
Other comprehensive income (loss) | 0.1 | 0.1 | ||
Balance at end of period | 1.7 | 1.7 | 1.7 | 1.7 |
Interest Rate Swap | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | (0.8) | (3) | (1.2) | (1.3) |
Other comprehensive income (loss) | (0.5) | (0.8) | (0.5) | (2.8) |
Less reclassification adjustment for amounts included in interest expense | 0.2 | 0.3 | 0.6 | 0.6 |
Balance at end of period | (1.1) | (3.5) | (1.1) | (3.5) |
Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | (83.1) | (69.4) | (88.5) | (78.1) |
Other comprehensive income (loss) | 9.3 | (3) | 14.7 | 5.7 |
Balance at end of period | (73.8) | (72.4) | (73.8) | (72.4) |
Accumulated Defined Benefit Plans Adjustment | Defined Benefit Pension Plans | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | (135) | (121.1) | (137) | (123) |
Other comprehensive income (loss) | 0.6 | 1.8 | 2.6 | 3.7 |
Balance at end of period | (134.4) | (119.3) | (134.4) | (119.3) |
Accumulated Defined Benefit Plans Adjustment | OPEB | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | 2.9 | 3.5 | 3.1 | 3.8 |
Other comprehensive income (loss) | (0.2) | (0.2) | (0.4) | (0.5) |
Balance at end of period | 2.7 | 3.3 | 2.7 | 3.3 |
Total Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | (214.3) | (188.4) | (221.9) | (197) |
Other comprehensive income (loss) | 9.4 | (1.8) | 17 | 6.8 |
Balance at end of period | $ (204.9) | $ (190.2) | $ (204.9) | $ (190.2) |
Commitments and Contingencies -
Commitments and Contingencies - Lead Pigment Litigation-NL and Environmental Matters and Litigation - Additional Information (Detail) $ in Millions | 6 Months Ended | |
Jun. 30, 2017USD ($)Casessite | Dec. 31, 2016USD ($) | |
Commitments And Contingent Liabilities [Line Items] | ||
Accrual for reasonably estimable environmental remediation and related matters | $ 124.9 | $ 122.6 |
Other Environmental Cleanup Matters | ||
Commitments And Contingent Liabilities [Line Items] | ||
Accrual for reasonably estimable environmental remediation and related matters | 5.9 | |
NL | Environmental Remediation Sites NL Named As PRP Or Defendant | ||
Commitments And Contingent Liabilities [Line Items] | ||
Accrual for reasonably estimable environmental remediation and related matters | $ 119 | |
Number of sites associated with remediation and related costs | site | 41 | |
Number of sites for which NL not currently able to reasonably estimate range of costs | site | 5 | |
NL | Maximum | Environmental Remediation Sites NL Named As PRP Or Defendant | ||
Commitments And Contingent Liabilities [Line Items] | ||
Upper end range, estimate costs for remediation and related matters | $ 161 | |
Lead Pigment Litigation | NL | ||
Commitments And Contingent Liabilities [Line Items] | ||
Number of cases settled and dismissed and found not liable | Cases | 100 | |
Period by which loss contingency claims settled and dismissed | 20 years | |
California Lead Paint Litigation | NL | ||
Commitments And Contingent Liabilities [Line Items] | ||
Amount awarded to the plaintiff | $ 1,150 |
Commitments and Contingencies69
Commitments and Contingencies - Changes in Accrued Environmental Remediation and Related Costs (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Environmental Remediation Obligations [Abstract] | |||
Balance at the beginning of the year | $ 122.6 | ||
Additions charged to expense, net | 3.2 | ||
Payments, net | (1) | ||
Currency and other | 0.1 | ||
Balance at the end of period | 124.9 | ||
Amounts recognized in our Condensed Consolidated Balance Sheet at the end of the period: | |||
Current liabilities | $ 14.8 | $ 15.3 | |
Noncurrent liabilities | 110.1 | 107.3 | |
Total | $ 122.6 | $ 124.9 | $ 122.6 |
Commitments and Contingencies70
Commitments and Contingencies - Other Litigation - Additional Information (Detail) - Product Liability And Occupational Exposure Litigation Claims - NL | 6 Months Ended |
Jun. 30, 2017CasesPlaintiff | |
Commitments And Contingent Liabilities [Line Items] | |
Cases pending | Cases | 101 |
Pending Claims | |
Commitments And Contingent Liabilities [Line Items] | |
Number of plaintiffs involved | 586 |
Administratively Dismissed Claims | |
Commitments And Contingent Liabilities [Line Items] | |
Number of plaintiffs involved | 8,687 |
Fair Value Measurements and F71
Fair Value Measurements and Financial Instruments - Marketable Securities and Financial Instruments on Fair Value Basis (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities, current | $ 0.8 | $ 4.4 |
Marketable securities, noncurrent | 257.2 | 253.5 |
Interest rate swap | (2.8) | (3.1) |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities, noncurrent | 2.5 | 0.6 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities, current | 0.8 | 4.4 |
Marketable securities, noncurrent | 4.7 | 2.9 |
Interest rate swap | (2.8) | (3.1) |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities, noncurrent | $ 250 | $ 250 |
Fair Value Measurements and F72
Fair Value Measurements and Financial Instruments - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financial Instrument At Fair Value [Line Items] | |||
Fair value of interest rate swap contract | $ 2,800,000 | $ 3,100,000 | |
Marketable securities | 257,200,000 | 253,500,000 | |
Amalgamated Sugar Company LLC | |||
Financial Instrument At Fair Value [Line Items] | |||
Marketable securities | 250,000,000 | ||
Kronos Worldwide, Inc. | 2014 Term Loan | |||
Financial Instrument At Fair Value [Line Items] | |||
Estimated market price of the notes | 1,005 | 983 | |
Principal amount of debt instrument | 1,000 | 1,000 | |
Kronos Worldwide, Inc. | Currency Forward Contracts | |||
Financial Instrument At Fair Value [Line Items] | |||
Currency forward contracts outstanding | 0 | $ 0 | |
Kronos Worldwide, Inc. | Interest Rate Swap | Accounts Payable and Accrued Liabilities | |||
Financial Instrument At Fair Value [Line Items] | |||
Fair value of interest rate swap contract, current | 2,000,000 | ||
Kronos Worldwide, Inc. | Interest Rate Swap | Other Noncurrent Liabilities | |||
Financial Instrument At Fair Value [Line Items] | |||
Fair value of interest rate swap contract, noncurrent | $ 800,000 | ||
Kronos Worldwide, Inc. | Interest Rate Swap | Libor Rate | |||
Financial Instrument At Fair Value [Line Items] | |||
Derivative, type of instrument | pay-fixed/receive-variable interest rate swap | ||
Interest rate swap, type of interest rate | fixed | ||
Interest rate swap, fixed rate | 2.016% | ||
Interest rate swap, floor rate | 1.00% | ||
Interest rate swap, inception date | Aug. 7, 2015 | ||
Interest rate swap, effective date | Sep. 30, 2015 | ||
Notional amount currency forward contract | $ 338,600,000 | $ 344,750,000 | |
Interest rate swap, notional amount decline each quarter | $ 875,000 | ||
Interest rate swap, notional amount decline commencing date | Dec. 31, 2015 | ||
Derivative maturity date | Feb. 29, 2020 | ||
Interest rate swap, gains or losses representing hedge ineffectiveness | $ 0 | ||
Pretax gain amount recognized in other comprehensive income (loss) related to interest rate swap contract | 1,400,000 | ||
Reclassified from accumulated other comprehensive income (loss) in to earnings (interest expense) | (1,600,000) | ||
Accumulated other comprehensive income (loss) expected to be reclassified to interest expense in next twelve months | (2,400,000) | ||
Fair value of interest rate swap contract | $ 2,800,000 |
Fair Value Measurements and F73
Fair Value Measurements and Financial Instruments - Financial Instruments not Carried at Fair Value (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Kronos Worldwide, Inc. | Revolving North American Credit Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long term debt, carrying amount | $ 16.3 | |
Long term debt, fair value | 16.3 | |
Kronos Worldwide, Inc. | Term Loan | 2014 Term Loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long term debt, carrying amount | 334.9 | $ 335.9 |
Long term debt, fair value | 340.3 | 334.6 |
VALHI, INC. | Contran Credit Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long term debt, carrying amount | 282.7 | 278.9 |
Long term debt, fair value | 282.7 | 278.9 |
VALHI, INC. | Term Loan | Snake River | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long term debt, carrying amount | 250 | 250 |
Long term debt, fair value | 250 | 250 |
Tremont | Promissory Note | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long term debt, carrying amount | 14.5 | 14.5 |
Long term debt, fair value | 14.5 | 14.5 |
BMI | Bank note payable | Meadows Term Loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long term debt, carrying amount | 8.4 | |
Long term debt, fair value | 8.5 | |
BMI | Loan Agreement | Western Alliance Bank | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long term debt, carrying amount | 18.7 | |
Long term debt, fair value | 19.7 | |
LandWell | Unsecured Debt | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long term debt, carrying amount | 2.7 | 2.9 |
Long term debt, fair value | 2.7 | 2.9 |
Financing capital lease | Waste Control Specialists | Financing Capital Lease Obligation | Andrews County capital lease | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long term debt, carrying amount | 63.1 | 64 |
Long term debt, fair value | 63.1 | 64 |
Reported Value Measurement | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash, cash equivalents and restricted cash equivalents | 267 | 191 |
Deferred payment obligation | 9.2 | 9 |
Estimate of Fair Value Measurement | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash, cash equivalents and restricted cash equivalents | 267 | 191 |
Deferred payment obligation | $ 9.2 | $ 9 |
Recent Accounting Pronounceme74
Recent Accounting Pronouncements Not Yet Adopted - Additional Information (Detail) - Defined Benefit Pension Plans - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 2.8 | $ 2.5 | $ 5.5 | $ 5 | $ 9.9 |
Net periodic defined benefit pension costs | $ 7.3 | $ 5.9 | $ 14.3 | $ 11.7 | $ 22.9 |