Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | VHI | |
Entity Registrant Name | VALHI INC /DE/ | |
Entity Central Index Key | 0000059255 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 339,185,449 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 463.9 | $ 499.8 |
Restricted cash equivalents | 15.1 | 15 |
Marketable securities | 1.9 | 2.5 |
Accounts and other receivables, net | 389.9 | 352.6 |
Land held for development | 1.3 | |
Inventories, net | 515.1 | 515.8 |
Other current assets | 17.9 | 23.1 |
Total current assets | 1,405.1 | 1,408.8 |
Other assets: | ||
Investment in TiO2 manufacturing joint venture | 82.1 | 81.3 |
Goodwill | 379.7 | 379.7 |
Deferred income taxes | 96 | 101 |
Other assets | 203.7 | 175.3 |
Total other assets | 761.5 | 737.3 |
Property and equipment: | ||
Land | 46.4 | 46.6 |
Buildings | 246.1 | 250.5 |
Equipment | 1,143.6 | 1,155.2 |
Mining properties | 22.8 | 28.6 |
Construction in progress | 52 | 44.2 |
Gross property and equipment | 1,510.9 | 1,525.1 |
Less accumulated depreciation | 952.8 | 961.6 |
Net property and equipment | 558.1 | 563.5 |
Total assets | 2,724.7 | 2,709.6 |
Current liabilities: | ||
Current maturities of long-term debt | 2.9 | 2.9 |
Accounts payable and accrual liabilities | 335.7 | 339 |
Income taxes | 9.1 | 9.1 |
Total current liabilities | 347.7 | 351 |
Noncurrent liabilities: | ||
Long-term debt | 786.3 | 797.5 |
Deferred income taxes | 42.3 | 41.2 |
Payable to affiliates | 56.3 | 56.3 |
Accrued pension costs | 266.5 | 273.3 |
Accrued environmental remediation and related costs | 96.1 | 96.9 |
Other liabilities | 123.4 | 104.4 |
Total noncurrent liabilities | 1,370.9 | 1,369.6 |
Equity: Valhi stockholders' equity: | ||
Preferred stock | 667.3 | 667.3 |
Common stock | 3.6 | 3.6 |
Retained earnings | 231.7 | 220.3 |
Accumulated other comprehensive loss | (204.9) | (206.2) |
Treasury stock, at cost | (49.6) | (49.6) |
Total Valhi stockholders’ equity | 648.1 | 635.4 |
Noncontrolling interest in subsidiaries | 358 | 353.6 |
Total equity | 1,006.1 | 989 |
Total liabilities and equity | 2,724.7 | 2,709.6 |
Commitments and contingencies (Notes 13 and 16) |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues and other income: | ||
Net sales | $ 479.6 | $ 466 |
Other income, net | 6.6 | 20.4 |
Total revenues and other income | 486.2 | 486.4 |
Costs and expenses: | ||
Cost of sales | 357.8 | 280.7 |
Selling, general and administrative | 71.4 | 80.2 |
Other components of net periodic pension and OPEB cost | 4.1 | 3.7 |
Interest | 10.3 | 15.4 |
Total costs and expenses | 443.6 | 380 |
Income from continuing operations before income taxes | 42.6 | 106.4 |
Income tax expense | 14.2 | 36.2 |
Net income from continuing operations | 28.4 | 70.2 |
Income from discontinued operations, net of tax | 37.6 | |
Net income | 28.4 | 107.8 |
Noncontrolling interest in net income of subsidiaries | 10.2 | 18.5 |
Net income attributable to Valhi stockholders | 18.2 | 89.3 |
Amounts attributable to Valhi stockholders: | ||
Income from continuing operations | 18.2 | 51.7 |
Income from discontinued operations | 37.6 | |
Net income attributable to Valhi stockholders | $ 18.2 | $ 89.3 |
Basic and diluted net income per share: | ||
Income from continuing operations | $ 0.05 | $ 0.15 |
Income from discontinued operations | 0.11 | |
Net income attributable to Valhi stockholders | $ 0.05 | $ 0.26 |
Basic and diluted weighted average shares outstanding | 342 | 342 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net income | $ 28.4 | $ 107.8 |
Other comprehensive income (loss), net of tax: | ||
Currency translation | (0.3) | 9.8 |
Marketable securities | (0.1) | |
Total other comprehensive income, net | 1.8 | 12 |
Comprehensive income | 30.2 | 119.8 |
Comprehensive income attributable to noncontrolling interest | 10.7 | 21.7 |
Comprehensive income attributable to Valhi stockholders | 19.5 | 98.1 |
Defined Benefit Pension Plans | ||
Other comprehensive income (loss), net of tax: | ||
Pension and other postretirement benefit plan | 2.3 | 2.6 |
OPEB | ||
Other comprehensive income (loss), net of tax: | ||
Pension and other postretirement benefit plan | $ (0.2) | $ (0.3) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 28.4 | $ 107.8 |
Depreciation and amortization | 12.8 | 14.5 |
Benefit plan expense greater than cash funding | 1.1 | 0.5 |
Deferred income taxes | 3.6 | 37.2 |
Gain on sale of WCS | (58.4) | |
Gain on land sales | (12.5) | |
Distributions from (contributions to) Ti02 manufacturing joint venture, net | (0.8) | 5.5 |
Other, net | 1.1 | 1.6 |
Change in assets and liabilities: | ||
Accounts and other receivables, net | (46) | (40.9) |
Inventories, net | (3.7) | (41.8) |
Land held for development, net | (1.1) | (1.4) |
Accounts payable and accrued liabilities | (4.2) | 23 |
Accounts with affiliates | 1.8 | 3.4 |
Income taxes | 1.6 | 7.5 |
Other, net | 3.2 | 1.7 |
Net cash provided by (used in) operating activities | (2.2) | 47.7 |
Cash flows from investing activities: | ||
Capital expenditures | (16.8) | (16.9) |
Cash, cash equivalents and restricted cash and cash equivalents of discontinued operations at time of sale | (28.9) | |
Proceeds from sale of land | 19.5 | |
Purchases of marketable securities | (1) | (3.5) |
Disposals of marketable securities | 1.7 | 3.4 |
Other, net | 0.6 | |
Net cash used in investing activities | (16.1) | (25.8) |
Indebtedness: | ||
Principal payments | (2.1) | (2.5) |
Valhi cash dividends paid | (6.8) | (6.8) |
Distributions to noncontrolling interest in subsidiaries | (6.3) | (3.9) |
Net cash used in financing activities | (15.2) | (13.2) |
Cash, cash equivalents and restricted cash and cash equivalents - net change from: | ||
Operating, investing and financing activities | (33.5) | 8.7 |
Effect of exchange rates on cash | (2.6) | 5.4 |
Balance at beginning of period | 523.7 | 489.4 |
Balance at end of period | 487.6 | 503.5 |
Cash paid for: | ||
Interest, net of capitalized interest | 13.7 | 19.4 |
Income taxes, net | 6.3 | 13.7 |
Noncash investing activities: | ||
Change in accruals for capital expenditures | $ 2 | 1.8 |
Noncash financing activities: | ||
Trade payable to affiliate converted to indebtedness | $ 36.3 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Preferred stock | Common stock | Retained earnings (deficit) | Accumulated other comprehensive loss | Treasury stock | Non-controlling interest |
Balance at Dec. 31, 2017 | $ 766.7 | $ 667.3 | $ 3.6 | $ (17.9) | $ (179) | $ (49.6) | $ 342.3 |
Change in accounting principle – ASU 2014-09 at Dec. 31, 2017 | 5 | 2.7 | 2.3 | ||||
Balance at January 1, 2018, as adjusted at Dec. 31, 2017 | 771.7 | 667.3 | 3.6 | (15.2) | (179) | (49.6) | 344.6 |
Net income | 107.8 | 89.3 | 18.5 | ||||
Other comprehensive income, net | 12 | 8.8 | 3.2 | ||||
Dividends paid to noncontrolling interest | (3.9) | (3.9) | |||||
Cash dividends | (6.8) | (6.8) | |||||
Balance at Mar. 31, 2018 | 880.8 | 667.3 | 3.6 | 67.3 | (170.2) | (49.6) | 362.4 |
Balance at Dec. 31, 2018 | 989 | 667.3 | 3.6 | 220.3 | (206.2) | (49.6) | 353.6 |
Net income | 28.4 | 18.2 | 10.2 | ||||
Other comprehensive income, net | 1.8 | 1.3 | 0.5 | ||||
Dividends paid to noncontrolling interest | (6.3) | (6.3) | |||||
Cash dividends | (6.8) | (6.8) | |||||
Balance at Mar. 31, 2019 | $ 1,006.1 | $ 667.3 | $ 3.6 | $ 231.7 | $ (204.9) | $ (49.6) | $ 358 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement Of Stockholders Equity [Abstract] | ||
Cash dividends per share | $ 0.02 | $ 0.02 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
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 92% of our outstanding common stock at March 31, 2019. 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., Tremont LLC, Basic Management, Inc. (“BMI”) and The LandWell Company (“LandWell”). Kronos (NYSE: KRO), NL (NYSE: NL), and CompX (NYSE American: CIX) each file periodic reports with the Securities and Exchange Commission (“SEC”). In January 2018, we sold Waste Control Specialists LLC (“WCS”). See Note 3. 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, 2018 that we filed with the SEC on March 11, 2019 (the “2018 Annual Report”). In our opinion, we have made all necessary adjustments (which include only normal recurring adjustments, other than the gain on the sale of WCS recognized in the first quarter of 2018 as discussed in Note 3), 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, 2018 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, 2018) 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 period ended March 31, 2019 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 2018 Consolidated Financial Statements contained in our 2018 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 | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 2—Business segment information: Business segment Entity % controlled at Chemicals Kronos 80 % Component products CompX 87 % 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 2018 2019 (unaudited) Net sales: Chemicals $ 430.4 $ 436.5 Component products 28.4 31.2 Real estate management and development 7.2 11.9 Total net sales $ 466.0 $ 479.6 Cost of sales: Chemicals $ 256.1 $ 327.7 Component products 18.9 21.5 Real estate management and development 5.7 8.6 Total cost of sales $ 280.7 $ 357.8 Gross margin: Chemicals $ 174.3 $ 108.8 Component products 9.5 9.7 Real estate management and development 1.5 3.3 Total gross margin $ 185.3 $ 121.8 Operating income: Chemicals $ 110.6 $ 52.8 Component products 4.4 4.4 Real estate management and development 3.8 3.2 Total operating income 118.8 60.4 General corporate items: Securities earnings 8.3 3.1 Insurance recoveries .2 .3 Gain on land sales 12.5 — Changes in market value of Valhi common stock held by subsidiaries (.3 ) 1.1 Other components of net periodic pension and OPEB cost (3.7 ) (4.1 ) General expenses, net (14.0 ) (7.9 ) Interest expense (15.4 ) (10.3 ) Income from continuing operations before income taxes $ 106.4 $ 42.6 Segment results we report may differ from amounts separately reported by our various subsidiaries due to purchase accounting adjustments and related amortization or differences in the way we define operating income. Intersegment sales are not material. |
Business Disposition
Business Disposition | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Business Disposition | Note 3—Business disposition — Waste Control Specialists LLC: On January 26, 2018 we sold our Waste Management Segment to JFL-WCS Partners, LLC ("JFL Partners"), an entity sponsored by certain investment affiliates of J.F. Lehman & Company, for consideration consisting of the assumption of all of WCS' third-party indebtedness and other liabilities. The sale of our former Waste Management Segment enabled us to focus on continuing to develop our remaining segments which we believe have greater opportunity for higher returns. In accordance with GAAP, the Waste Management Segment has been classified as discontinued operations in our Condensed Consolidated Statement of Income for the three months ended March 31, 2018. Also in accordance with GAAP, we have not reclassified our Condensed Consolidated Statement of Cash Flows to reflect the Waste Management Segment as discontinued operations. We recognized a pre-tax gain of approximately $58 million in the first quarter of 2018 on the transaction ($38.2 million, or $.11 per diluted share, net of tax) because the carrying value of the liabilities of the business assumed by JFL Partners exceeded the carrying value of the assets sold at the time of the sale in large part due to the previously-reported long-lived asset impairment of $170.6 million recognized in the second quarter of 2017, as discussed in the 2018 Annual Report. Selected financial data for the operations of the disposed Waste Management Segment for periods prior to completing the sale is presented below. Three months ended March 31, 2018 (1) (In millions) Net sales $4.6 Operating loss $(.4) Interest expense, net (.3 Loss before taxes (.7) Income tax benefit .1 Net loss $(.6 Pre-tax gain on disposal $58.4 Income tax expense 20.2 After-tax gain on disposal 38.2 Total 37.6 Net cash provided by operating activities $2.3 Net cash used in investing activities $(.1) (1) Reflects the results of the Waste Management Segment though January 26, 2018, the date of the sale. In connection with the January 2018 sale, JFL Partners did not assume WCS’ trade payable owed to Contran, which consisted primarily of intercorporate service fees charged to WCS by Contran which WCS had not paid to Contran for several years. Immediately prior to the closing of the sale of WCS, Contran transferred its associated receivable of $36.3 million from WCS to Valhi, in return for a deemed $36.3 million borrowing by Valhi under its revolving credit facility with Contran. Valhi subsequently contributed such receivable from WCS to WCS’s equity, and the trade payable obligation of WCS was deemed paid in full. |
Accounts and Other Receivables,
Accounts and Other Receivables, Net | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Accounts and Other Receivables, Net | Note 4—Accounts and other receivables, net: December 31, March 31, (In millions) Trade accounts receivable: Kronos $ 273.3 $ 317.9 CompX 12.2 15.4 BMI and LandWell 1.5 1.3 VAT and other receivables 32.7 25.0 Refundable income taxes 5.7 3.6 Accrued insurance recovery related to litigation 15.0 15.0 Receivable from affiliates: Contran – trade items .5 .5 LPC – trade items 10.2 10.2 Other – trade items 2.8 2.7 Allowance for doubtful accounts (1.3 ) (1.7 ) Total $ 352.6 $ 389.9 The accrued insurance recovery related to litigation is discussed in Note 16. |
Inventories, Net
Inventories, Net | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 5—Inventories, net: December 31, March 31, (In millions) Raw materials: Chemicals $ 93.1 $ 102.0 Component products 2.7 3.3 Total raw materials 95.8 105.3 Work in process: Chemicals 23.5 29.2 Component products 11.1 11.8 Total in-process products 34.6 41.0 Finished products: Chemicals 317.6 299.7 Component products 3.3 3.4 Total finished products 320.9 303.1 Supplies (chemicals) 64.5 65.7 Total $ 515.8 $ 515.1 |
Other Noncurrent Assets
Other Noncurrent Assets | 3 Months Ended |
Mar. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Noncurrent Assets | Note 6—Other noncurrent assets: December 31, March 31, (In millions) Other noncurrent assets: Land held for development $ 129.2 $ 126.2 Operating lease right-of-use assets — 33.1 Restricted cash and cash equivalents 8.9 8.6 Land contract receivables 9.1 3.8 IBNR receivables 6.0 6.9 Marketable securities 4.8 4.9 Pension asset 2.7 3.4 Notes receivable - OPA 1.9 3.1 Other 12.7 13.7 Total $ 175.3 $ 203.7 Land contract receivables classified as a noncurrent asset relate to our Real Estate Management and Development Segment. Such receivables relate to certain fees we collect from builders when the builder sells a home to a customer. Leases We enter into various arrangements (or leases) that convey the rights to use and control identified underlying assets for a period of time in exchange for consideration. We lease various manufacturing facilities and equipment. In addition, o ur Chemicals Segment’s principal German operating subsidiary leases the land under its Leverkusen TiO 2 production facility pursuant to a lease with Bayer AG that expires in 2050. The Leverkusen facility itself, which Kronos owns and which represents approximately one-third of our current TiO 2 production capacity, is located within Bayer’s extensive manufacturing complex. From time to time, we may also enter into an arrangement in which the right to use and control an identified underlying asset is embedded in another type of contract. On January 1, 2019 we adopted Accounting Standards Update (“ASU 2016-02”), Leases (Topic 842) Right-of-use assets represent our right to use an underlying asset for the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. For leases in effect as of the January 1, 2019 date of adoption of the new ASU, the right-of-use operating lease assets and liabilities were recognized based on the estimated present value of remaining lease payments over the remaining lease term as of the adoption date. For new leases entered into subsequent to the date of adoption of the new ASU, the right-of-use operating lease asset and liabilities will be recognized based on the estimated present value of lease payments over the lease term as of the respective lease commencement dates. We use an estimated incremental borrowing rate to determine the present value of lease payments (unless we can determine the rate implicit in the lease, which is generally not the case). Our incremental borrowing rate for each of our leases is derived from available information, including our current debt and credit facilities and U.S. and European yield curves as well as publicly available data for instruments with similar characteristics, adjusted for factors such as collateralization and term. For leases in effect as of the January 1, 2019 date of adoption of the new ASU, we used an estimated incremental borrowing rate for each lease on the date of adoption. For new leases entered into subsequent to the date of adoption of the new ASU, we use an estimated incremental borrowing rate for each lease as of the respective lease commencement dates. Our leases generally do not include termination or purchase options. Certain of our leases include an option to renew the lease after expiration of the initial lease term, but we have not included such renewal periods in our lease term because it is not reasonably certain that we would exercise the renewal option. Our leases generally have fixed lease payments, with no contingent or incentive payments. Certain of our leases include variable lease payments that depend on a specified index or rate, and in accordance with ASU 2016-02 the determination of the operating lease liabilities is based on the index or rate existing at the date of adoption of the new ASU (for leases in effect as of January 1, 2019) or the index or rate in effect as of the lease commencement date (for leases entered into subsequent to the date of adoption of the new ASU). Our lease agreements do not contain any residual value guarantees. With respect to our land lease associated with Kronos’ Leverkusen facility, we periodically establish the amount of rent for such land lease by agreement with Bayer for periods of at least two years at a time. The lease agreement provides for no formula, index or other mechanism to determine changes in the rent of such land lease; rather, any change in the rent is subject solely to periodic negotiation between Bayer and us. As such, we will account for any change in the rent associated with such lease subsequent to the January 1, 2019 adoption of the new ASU as a lease modification. During the first three months of 2019, our operating lease expense approximated $2.1 million (which amount approximates the amount of cash paid during the period for our operating leases included in the determination of our net cash flows from operating activities). During the first three months of 2019, variable lease expense and short-term lease expense were not material. During the first three months of 2019, we entered into new operating leases which resulted in the recognition of a nominal right-of-use operating lease asset and operating lease liability. At March 31, 2019, maturities of our lease liabilities were as follows: Years ending December 31, Amount (In millions) Gross amounts due each year: 2019 (remainder of year) $ 5.8 2020 6.7 2021 6.0 2022 3.4 2023 2.2 2024 and thereafter 21.3 Total lease payments 45.4 Less imputed interest 13.0 Total lease obligations 32.4 Less current obligations 6.8 Long-term lease obligations $ 25.6 Disclosures related to periods prior to adoption of ASU 2016-02 Net operating lease rent expense approximated $14.3 million in 2016, $16.3 million in 2017 and $14.8 million in 2018. At December 31, 2018, future minimum payments under non-cancellable operating leases having an initial or remaining term of more than one year were as follows: Years ending December 31, Amount (In millions) 2019 $ 6.3 2020 5.1 2021 4.3 2022 3.2 2023 2.4 2024 and thereafter 21.5 Total (1) $ 42.8 (1) Approximately $17 million of the $42.8 million aggregate future minimum rental commitments at December 31, 2018 relates to Kronos’ Leverkusen facility lease discussed above. The minimum commitment amounts for such lease included in the table above for each year through the 2050 expiration of the lease are based upon the current annual rental rate as of December 31, 2018. As discussed above, any change in the rent is based solely on negotiations between Bayer and Kronos, and any such change in the rent was deemed “contingent rentals” under prior GAAP and was excluded from the future minimum lease payments disclosed above. Note receivable – OPA As disclosed in Note 7 to our 2018 Annual Report under an Owner Participation Agreement (“OPA”) entered into by LandWell with the Redevelopment Agency of the City of Henderson, Nevada, as LandWell develops certain real property for commercial and residential purposes in its master planned community in Henderson, Nevada, and the cost of certain public infrastructure may be reimbursed to LandWell through tax increment. Prior to 2018, due to the significant uncertainty of the timing and amount of any of such potential tax increment reimbursements, we recognized any such tax increment reimbursements only when received. However, due to growth in the master planned community and the increase in tax increment funds to which LandWell is entitled, we determined in the first quarter of 2018 the tax increment reimbursements expected to be collected in the future would at least be sufficient to support recognizing the promissory note payable issued by the City of Henderson to LandWell. During the first quarter of 2018, we recognized $3.8 million of other income related to the existing promissory note and accrued interest as of January 1, 2018. During the first quarter of 2019, we received approval for additional tax increment reimbursement of $1.1 million, which was recognized as other income and is evidenced by a promissory note issued to LandWell by the City of Henderson. See Note 12. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 7—Long-term debt: December 31, March 31, (In millions) Valhi: Contran credit facility $ 314.3 $ 313.0 Subsidiary debt: Kronos: Senior Secured Notes 452.4 443.2 Tremont: Promissory note payable 9.4 8.7 BMI: Bank loan – Western Alliance Bank 18.0 18.0 LandWell: Note payable to the City of Henderson 2.1 2.1 Other 4.2 4.2 Total subsidiary debt 486.1 476.2 Total debt 800.4 789.2 Less current maturities 2.9 2.9 Total long-term debt $ 797.5 $ 786.3 Valhi – Contran credit facility – During the first three months of 2019, we repaid a net $1.3 million under this facility. The average interest rate on the existing balance as of and for the three months ended March 31, 2019 was 6.50%. At March 31, 2019, the equivalent of $47.0 million was available for borrowing under this facility. Kronos – Senior Secured Notes - At March 31, 2019, the carrying value of Kronos’ 3.75% Senior Secured Notes due September 15, 2025 (€400 million aggregate principal amount outstanding) is stated net of unamortized debt issuance costs of $5.9 million. North American and European revolving credit facilities – During the first three months of 2019, Kronos had no borrowings or repayments under its North American revolving credit facility and its European revolving credit facility. At March 31, 2019, approximately $123.1 million was available for additional borrowing under the North American 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 March 31, 2019 and the net debt to EBITDA financial test, the full €90.0 million of the credit facility ($101.1 million) is available for borrowing availability at such date. Tremont – Promissory note payable – During the first three months of 2019, Tremont prepaid (without penalty) $.7 million principal amount on the note as required under the terms of the note agreement. 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 March 31, 2019. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Note 8—Accounts payable and accrued liabilities: December 31, March 31, (In millions) Accounts payable: Kronos $ 103.2 $ 111.8 CompX 3.2 3.3 BMI and LandWell 2.9 4.0 NL 1.6 1.2 Other .6 .5 Payable to affiliates: Contran – income taxes 10.0 12.2 LPC – trade items 16.7 15.2 Accrued litigation settlement 60.0 60.0 Operating lease liability — 6.8 Employee benefits 37.5 34.8 Deferred income 28.3 18.9 Accrued sales discounts and rebates 29.7 22.1 Environmental remediation and related costs 6.5 6.4 Interest 5.2 1.2 Other 33.6 37.3 Total $ 339.0 $ 335.7 The accrued litigation settlement is discussed in Note 16. The operating lease liability is discussed in Notes 6 and 18. |
Other Noncurrent Liabilities
Other Noncurrent Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Noncurrent Liabilities | Note December 31, March 31, (In millions) Operating lease liability $ — $ 25.6 Reserve for uncertain tax positions 19.1 19.4 Accrued litigation settlement 17.0 17.0 Deferred income 15.8 7.7 Other postretirement benefits 10.3 10.3 Employee benefits 7.1 6.9 Insurance claims and expenses 8.1 9.0 Deferred payment obligation 9.6 9.7 Accrued development costs 7.5 8.2 Other 9.9 9.6 Total $ 104.4 $ 123.4 The accrued litigation settlement is discussed in Note 16. The operating lease liability is discussed in Notes 6 and 18. |
Revenue - Disaggregation of Sal
Revenue - Disaggregation of Sales | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue - Disaggregation of Sales | Note 10 – Revenue – disaggregation of sales: The following table disaggregates the net sales of our Chemicals Segment by the categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Three months ended March 31, 2018 2019 (In millions) Net sales – point of origin: Germany $ 234.5 $ 219.2 United States 196.8 245.3 Canada 71.6 78.5 Belgium 69.7 69.7 Norway 53.1 51.5 Eliminations (195.3 ) (227.7 ) Total $ 430.4 $ 436.5 Net sales – point of destination: Europe $ 233.9 $ 215.2 North America 127.0 146.8 Other 69.5 74.5 $ 430.4 $ 436.5 The following table disaggregates the net sales of our Component Products and Real Estate Management and Development Segments by major product line. Three months ended March 31, 2018 2019 (In millions) Component Products: Net sales: Security products $ 24.1 $ 24.7 Marine components 4.3 6.5 $ 28.4 $ 31.2 Real Estate Management and Development: Net sales: Land sales $ 5.8 $ 9.5 Water delivery .9 1.9 Utility and other .5 .5 $ 7.2 $ 11.9 |
Defined Benefit Pension Plans
Defined Benefit Pension Plans | 3 Months Ended |
Mar. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Defined Benefit Pension Plans | Note 11—Defined benefit pension plans: The components of our net periodic defined benefit pension cost are presented in the table below. Three months ended 2018 2019 (In millions) Service cost $ 3.0 $ 2.8 Interest cost 4.0 4.0 Expected return on plan assets (4.0 ) (3.7 ) Amortization of unrecognized prior service cost .1 .1 Recognized actuarial losses 3.8 3.8 Total $ 6.9 $ 7.0 We expect to contribute the equivalent of approximately $18.2 million to all of our defined benefit pension plans during 2019. |
Other Income, Net
Other Income, Net | 3 Months Ended |
Mar. 31, 2019 | |
Other Income And Expenses [Abstract] | |
Other Income, Net | Note 12—Other income, net: Three months ended 2018 2019 (In millions) Securities earnings: Dividends and interest $ 8.3 $ 2.9 Securities transactions, net — .2 8.3 3.1 Currency transactions, net (5.0 ) .9 Insurance recoveries .2 .3 Infrastructure reimbursement 3.8 1.1 Gain on land sales 12.5 — Other, net .6 1.2 Total $ 20.4 $ 6.6 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. Infrastructure reimbursement costs relate principally to tax increment reimbursements of our Real Estate Management and Development Segment discussed in Note 6. In the first quarter of 2018 we sold two parcels of land not used in our operating activities. We sold the first parcel for net proceeds of $18.9 million, and recognized a pre-tax gain on the sale of $11.9 million. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13—Income taxes: Three months ended 2018 2019 (In millions) Expected tax expense, at U.S. federal statutory income tax rate of 21% $ 22.4 $ 8.9 Incremental net tax (benefit) on earnings and losses of non-U.S. and non-tax group companies 4.1 (.2 ) Non-U.S. tax rates 7.0 2.3 Valuation allowance .3 1.0 Global intangible low-tax income, net — .7 Adjustment to the reserve for uncertain tax positions, net 1.6 .5 Canada – Germany APA (1.4 ) — U.S. state income taxes and other, net 2.2 1.0 Income tax expense $ 36.2 $ 14.2 Comprehensive provision for income taxes (benefit) allocable to: Income from continuing operations $ 36.2 $ 14.2 Discontinued operations 20.1 — Retained earnings – change in accounting principle 1.1 — Other comprehensive income (loss): Currency translation 1.4 — Pension plans 1.5 1.6 OPEB plans (.1 ) (.1 ) Total $ 60.2 $ 15.7 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 21%. The amount shown on such table for incremental net tax (benefit) on earnings and losses on non-U.S. and non-tax group companies includes, as applicable, (i) deferred state and foreign income taxes (or deferred income tax benefits) and deferred withholding taxes, as applicable, associated with the current-year change in the aggregate amount of undistributed earnings of all of our non-U.S. subsidiaries, which earnings are not permanently reinvested , (ii) current U.S. income taxes (or current income tax benefit) 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, (iii) deferred income taxes associated with our direct investment in Kronos and (iv) current and deferred income taxes associated with distributions and earnings from our investment in LandWell and BMI. We record global intangible low-tax income (GILTI) tax as a current-period expense when incurred under the period cost method. We have evaluated the tax impact of GILTI and base erosion anti abuse tax (BEAT) provisions and related U.S. tax credit provisions applicable to tax years beginning in 2018 based on the relevant statutes and guidance provided under the proposed regulations. Given the complexity of the international provisions, it is possible that final regulations could differ from the proposed regulations and materially impact our determinations with respect to such items. Any material change will be recognized in the period in which the final regulations are published. None of our federal U.S. and non-U.S. tax returns are currently under examination. As a result of prior audits in certain jurisdictions, which are now settled, in 2008 Kronos filed Advance Pricing Agreement Requests with the tax authorities in the U.S., Canada and Germany. These requests had 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 the first quarter of 2018, Kronos’ German subsidiary executed and finalized the related Advance Pricing Agreement with the Competent Authority for Germany (the “Germany-Canada APA”) effective for tax years 2005 - 2017. In the first quarter of 2018, we recognized a net $1.4 million non-cash income tax benefit related to an APA tax settlement payment between Kronos’ German and Canadian subsidiaries. The 2017 Tax Act amended the rules limiting the deduction for business interest expense beginning in 2018. The limitation applies to all taxpayers, and our annual deduction for business interest expense is limited to the sum of our business interest income and 30% of our adjusted taxable income as defined under the 2017 Tax Act. Any business interest expense not allowed as a deduction as a result of the limitation may be carried forward indefinitely and is treated as interest paid in the carryforward year subject to the respective year’s limitation. We determined that our interest expense for 2018 and 2019 was limited under these provisions. The limitation in 2018 resulted in part because of the loss we recognized on the sale of WCS for income tax purposes. 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 a portion of our deferred tax asset attributable to the nondeductible amount of business interest expense carryforward. Consequently, our provision for income taxes includes a non-cash deferred income tax expense of $5.9 million in the first quarter of 2018 and $1.0 million in the first quarter of 2019 for the amount of such deferred income tax asset that we have determined does not meet the more-likely-than-not recognition criteria. In accordance with the ASC 740 guidance regarding intra-period allocation of income taxes, such non-cash deferred income tax expense in 2018 is classified as part of the income taxes associated with the pre-tax gain we recognized for financial reporting purposes on the sale of WCS, which is classified as part of discontinued operations as discussed in Note 3. 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 $3.7 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 | 3 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest in Subsidiaries | Note 14—Noncontrolling interest in subsidiaries: December 31, March 31, (In millions) Noncontrolling interest in net assets: Kronos Worldwide $ 221.4 $ 223.5 NL Industries 62.4 65.1 CompX International 19.4 19.9 BMI 27.1 26.7 LandWell 23.3 22.8 Total $ 353.6 $ 358.0 Three months ended March 31, 2018 2019 (In millions) Noncontrolling interest in net income of subsidiaries: Kronos Worldwide $ 13.8 $ 5.9 NL Industries 2.4 2.6 CompX International .5 .5 BMI .6 .5 LandWell 1.2 .7 Total $ 18.5 $ 10.2 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 15—Accumulated other comprehensive loss: Changes in accumulated other comprehensive income (loss) attributable to Valhi stockholders for the three months ended March 31, 2018 and 2019 are presented in the table below. Three months ended 2018 2019 (In millions) Accumulated other comprehensive income (loss), net of tax and noncontrolling interest: Marketable securities: Balance at beginning of period $ 1.7 $ 1.7 Other comprehensive loss – unrealized losses arising during the period (.1 ) — Balance at end of period $ 1.6 $ 1.7 Currency translation adjustment: Balance at beginning of period $ (54.1 ) $ (75.6 ) Other comprehensive income (loss) 7.2 (.2 ) Balance at end of period $ (46.9 ) $ (75.8 ) Defined benefit pension plans: Balance at beginning of period $ (129.0 ) $ (134.0 ) Other comprehensive income— amortization of prior service cost and net losses included in net periodic pension cost 1.9 1.7 Balance at end of period $ (127.1 ) $ (132.3 ) OPEB plans: Balance at beginning of period $ 2.4 $ 1.7 Other comprehensive loss – amortization of prior service credit (.2 ) (.2 ) Balance at end of period $ 2.2 $ 1.5 Total accumulated other comprehensive income (loss): Balance at beginning of period $ (179.0 ) $ (206.2 ) Other comprehensive income 8.8 1.3 Balance at end of period $ (170.2 ) $ (204.9 ) See Note 11 for amounts related to our defined benefit pension plans. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
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. We believe that these actions are without merit, and we intend to continue to deny all allegations of wrongdoing and liability and to defend against all actions vigorously. Other than with respect to the Santa Clara, California public nuisance case discussed below, we do not believe it is probable that we have incurred any liability with respect to all of the lead pigment litigation cases to which we are a party, and with respect to all such lead pigment litigation cases to which we are a party, other than with respect to the Santa Clara case discussed below, we believe liability to us that may result, if any, in this regard cannot be reasonably estimated, because: • 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 (subject to the final outcome of the Santa Clara case discussed below), and • NL has never ultimately been found liable with respect to any such litigation matters, including over 100 cases over a twenty-year period for which we were previously a party and for which we have been dismissed without any finding of liability (subject to the final outcome of the Santa Clara case discussed below). Accordingly, other than with respect to the Santa Clara case discussed below, we have not accrued any amounts for any of the pending lead pigment and lead-based paint litigation cases filed by or on behalf of states, counties, cities or their public housing authorities and school districts, or those asserted as class actions other than the Santa Clara case noted below. In addition, we have determined that liability to us which may result, if any, cannot be reasonably estimated at this time because there is no prior history of a loss of this nature on which an estimate could be made and there is no substantive information available upon which an estimate could be based. In one of these lead pigment cases, in April 2000 we were served with a complaint in County of Santa Clara v. Atlantic Richfield Company, et al The Santa Clara case is unusual in that this is the second time that an adverse verdict in a public nuisance lead pigment case has been entered against us (the first adverse verdict against us was ultimately overturned on appeal). Given the appellate court’s November 2017 ruling, and the denial of an appeal by the California Supreme Court, we previously concluded that the likelihood of a loss in this case has reached a standard of “probable” as contemplated by ASC 450. Under the remand ordered by the appellate court, the trial court was required to, among other things, (i) recalculate the amount of the abatement fund, excluding remediation of homes built between 1951 and 1980, (ii) hold an evidentiary hearing to appoint a suitable receiver for the abatement fund and (iii) enter an order or orders setting forth its rulings on these issues. We believe any party will have a right to appeal any of these new decisions to be made by the trial court from the remand of the case. Several uncertainties will still exist with respect to the new decisions to be made by the trial court from the remand of the case, including the following: • The appellate court remanded the case back to the trial court to recalculate the total amount of the abatement, limiting the abatement to pre-1951 homes. In this regard, NL and the other defendants filed a brief with the trial court proposing a recalculated maximum abatement fund amount of no more than $409 million and plaintiffs filed a brief proposing an abatement fund amount of $730 million. In September 2018, following a case-management hearing regarding the recalculated abatement fund amount held in August 2018, the trial court issued an order setting the recalculated amount of the abatement fund at $409 million; • The appellate court upheld NL’s and the other defendants’ right to seek contribution from other liable parties (e.g. property owners who have violated the applicable housing code) on a house-by-house basis. The method by which the trial court would undertake to determine such house-by-house responsibility, and the outcome of such a house-by-house determination, is not presently known; • Participation in any abatement program by each homeowner is voluntary, and each homeowner would need to consent to allowing someone to come into the home to undertake any inspection and abatement, as well as consent to the nature, timing and extent of any abatement. The original trial court’s judgment unrealistically assumed 100% participation by the affected homeowners. Actual participation rates are likely to be less than 100% (the ultimate extent of participation is not presently known); • The remedy ordered by the trial court is an abatement fund. The trial court ordered that any funds unspent after four years are to be returned to the defendants (this provision of the trial court’s original judgment was not overturned by the appellate court). As noted above, the actual number of homes which would participate in any abatement, and the nature, timing and extent of any such abatement, is not presently known; and • We and the other two defendants are jointly and severally liable for the abatement, which means we or either of the two other defendants could ultimately be responsible for payment of the full amount of the abatement fund. However, we do not believe any individual defendant would be 100% responsible for the cost of any abatement, and the allocation of the recalculated amount of the abatement fund ($409 million, as explained below) among the three defendants has not yet been determined. In May 2018, we and the plaintiffs entered into a settlement agreement pursuant to which, as supplemented, the plaintiffs would be paid an aggregate of $80 million, in return for which we would be dismissed from the case with prejudice and all pending and future claims, causes of action, cross-complaints, actions or proceedings against us and our affiliates for indemnity, contribution, reimbursement or declaratory relief in respect to the case would be barred, discharged and enjoined as a matter of applicable law. Of such $80 million, $65 million would be paid by us and $15 million would be provided by one of our former insurance carriers that has previously placed such amount on deposit with the trial court in satisfaction of potential liability such former carrier might have with respect to the case under certain insurance policies we had with such former carrier. Of such $65 million which would be paid by us, $45 million would be paid upon approval of the terms of the settlement, and the remaining $20 million would be paid in five annual installments beginning four years from such approval ($6 million for the first installment, $5 million for the second installment and $3 million for each of the third, fourth and fifth installments). The settlement agreement is subject to a number of conditions including the trial court’s approval of the terms of the settlement (which trial court approval includes a determination that such settlement agreement meets the standards for a “good faith” settlement under applicable California law). The other defendants filed motions with the trial court objecting to the terms of the settlement. With all of the uncertainties that exist with respect to the new decisions to be made by the trial court from the remand of the case, as noted above, we had previously concluded that the amount of such loss could not be reasonably estimated (nor could a range of loss be reasonably estimated). However, the terms of the settlement agreement entered into by us and the plaintiffs in May 2018, as supplemented, provides evidence that the amount of the loss to us could be reasonably estimated (and provides evidence of the low end of a range of loss to us). For financial reporting purposes, we discounted the five payments aggregating $20 million to be paid in installments to their estimated net present value, using a discount rate of 3.0% per annum. Such net present value is $17 million, and we would begin to accrete such present value amount upon approval of the settlement agreement. Accordingly, in the second quarter of 2018 we recognized a net $62 million pre-tax charge with respect to this matter ($45 million for the amount to be paid by us upon approval of the terms of the settlement and $17 million for the net present value of the five payments aggregating $20 million to be paid by us in installments beginning four years from such approval), representing the net amount we would pay in full settlement of our liability under the terms of the proposed settlement agreement. For purposes of our Condensed Consolidated Balance Sheet, we have presented the aggregate $45 million that would be paid to the plaintiffs upon approval of the terms of the settlement and the $15 million that would be paid to the plaintiffs from the amount placed on deposit with the trial court by one of our former insurance carriers (for a total of $60 million) as a current liability, $17 million for the net present value of the five payments aggregating $20 million to be paid by us in installments beginning four years from such approval as a noncurrent liability and the $15 million portion of such aggregate $80 million undiscounted amount which would be funded from the amount placed on deposit with the trial court by one of our former insurance carriers as a current insurance recovery receivable. In July 2018, we and the other defendants filed appeals with the U.S. Supreme Court, seeking its review of two federal issues in the trial court’s original judgment. Review by the U.S. Supreme Court is discretionary, and in October 2018 the U.S. Supreme Court denied the petitions for the Court to hear such appeals. In September 2018, following a case-management hearing regarding the recalculated abatement fund amount held in August 2018, the trial court issued an order setting the recalculated amount of the abatement fund at $409 million. Also in September 2018, the trial court denied approval of the settlement agreement, finding among other things that the settlement agreement did not meet the standards for a “good faith” settlement under applicable California law. Subsequently in October 2018, we filed an appeal of the trial court’s denial of approval of the settlement agreement with the Sixth District Court of Appeal for the State of California, asserting among other things that in denying such approval the trial court made several legal errors in applying applicable California law to the terms of the settlement. The plaintiffs filed a brief in support of The trial court has selected and appointed a receiver for the abatement fund. The trial court has also previously stated it will not enter the judgment in the case until after the Sixth District Court of Appeal determines whether to hear the appeal regarding our settlement agreement. In March 2019, the trial court entered an order granting an offset of $8 million from a previous settlement thereby lowering the abatement fund amount from $409 million to $401 million. In April 2019, the plaintiffs filed a motion asking the trial court to move forward with entry of a judgment, even if the Sixth District Court of Appeals has not yet decided whether to hear the appeal. Subsequently, NL and the other defendants filed a response, opposing the plaintiffs’ motion. If the appellate court does not reverse the trial court decision and approve the terms of this or any other settlement agreement between us and the plaintiffs, the proceedings in the trial court under the remand, as discussed above, would continue. In such event, NL’s share of the recalculated amount of the abatement fund ($401 million) is not presently known, and other uncertainties exist with respect to the new decisions to be made by the trial court from the remand of the case, as discussed above, including but not limited to the final amount of the abatement fund ($401 million) which will ultimately be expended, particularly because participation in the abatement program by eligible homeowners is voluntary and the ultimate extent of participation and how the abatement fund will be administered is uncertain. 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 and the remand proceedings in the trial court, that NL may in the future incur liability resulting in the recognition of an additional loss contingency accrual that could have a material adverse impact on our results of operations, financial position and liquidity. In November 2018, NL was served with two complaints filed by county governments in Pennsylvania. E New cases may continue to be filed against us. We cannot assure you that we will not incur liability in the future in respect of any of the pending or possible litigation in view of the inherent uncertainties involved in court and jury rulings. In the future, if new information regarding such matters becomes available to us (such as a final, non-appealable adverse verdict against us or otherwise ultimately being found liable with respect to such matters), at that time we would consider such information in evaluating any remaining cases then-pending against us as to whether it might then have become probable we have incurred liability with respect to these matters, and whether such liability, if any, could have become reasonably estimable. The resolution of any of these cases could result in the recognition of a loss contingency accrual that could have a material adverse impact on our net income for the interim or annual period during which such liability is recognized and a material adverse impact on our consolidated financial condition and liquidity. Environmental matters and litigation Our operations are governed by various environmental laws and regulations. Certain of our businesses are and have been engaged in the handling, manufacture or use of substances or compounds that may be considered toxic or hazardous within the meaning of applicable environmental laws and regulations. As with other companies engaged in similar businesses, certain of our past and current operations and products have the potential to cause environmental or other damage. We have implemented and continue to implement various policies and programs in an effort to minimize these risks. Our policy is to maintain compliance with applicable environmental laws and regulations at all of our plants and to strive to improve environmental performance. From time to time, we may be subject to environmental regulatory enforcement under U.S. and non-U.S. statutes, the resolution of which typically involves the establishment of compliance programs. It is possible that future developments, such as stricter requirements of environmental laws and enforcement policies, could adversely affect our production, handling, use, storage, transportation, sale or disposal of such substances. We believe that all of our facilities are in substantial compliance with applicable environmental laws. Certain properties and facilities used in 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, 2018 and March 31, 2019, we have recognized $15.0 million of receivables for recoveries related to the California case discussed above. 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 three months of 2019 are presented below. Amount (In millions) Balance at the beginning of the year $ 103.4 Additions charged (credited) to expense, net (.7 ) Payments, net (.8 ) Other, net .6 Balance at the end of period $ 102.5 Amounts recognized in our Condensed Consolidated Balance Sheet at the end of the period: Current liabilities $ 6.4 Noncurrent liabilities 96.1 Total $ 102.5 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 March 31, 2019, NL had accrued approximately $97 million related to approximately 32 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 $117 million, including the amount currently accrued. NL believes that it is not reasonably possible to estimate the range of costs for certain sites. At March 31, 2019, there were approximately 5 sites for which NL is not currently able to estimate a range of costs. For these sites, generally the investigation is in the early stages, and NL is unable to determine whether or not NL actually had any association with the site, the nature of its responsibility, if any, for the contamination at the site and the extent of contamination at and cost to remediate the site. The timing and availability of information on these sites is dependent on events outside of our control, such as when the party alleging liability provides information to us. At certain of these previously inactive sites, NL has received general and special notices of liability from the EPA and/or state agencies alleging that NL, sometimes with other PRPs, are liable for past and future costs of remediating environmental contamination allegedly caused by former operations. These notifications may assert that NL, along with any other alleged PRPs, are liable for past and/or future clean-up costs. As further information becomes available to us for any of these sites which would allow us to estimate a range of costs, we would at that time adjust our accruals. Any such adjustment could result in the recognition of an accrual that would have a material effect on our consolidated financial statements, results of operations and liquidity. Other – We have also accrued approximately $5.5 million at March 31, 2019 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 2018 Annual Report. Other litigation In addition to the litigation described above, we and our affiliates are involved in various other environmental, contractual, product liability, patent (or intellectual property), employment and other claims and disputes incidental to our present and former businesses. In certain cases, we have insurance coverage for these items, although we do not expect any additional material insurance coverage for our environmental claims. We currently believe that the disposition of all of these various other claims and disputes (including asbestos-related claims), individually or in the aggregate, should not have a material adverse effect on our consolidated financial position, results of operations or liquidity beyond the accruals already provided. |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Financial Instruments | Note 17—Fair value measurements and financial instruments: Certain sales generated by our 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. 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. During 2018 and the first quarter of 2019, Kronos had no currency forward contracts outstanding. The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure: December 31, 2018 March 31, 2019 Carrying Fair Carrying Fair (In millions) Cash, cash equivalents and restricted cash equivalents $ 523.7 $ 523.7 $ 487.6 $ 487.6 Deferred payment obligation 9.6 9.6 9.7 9.7 Long-term debt (excluding capitalized leases): Kronos Senior Notes 452.4 412.9 443.2 428.6 Valhi credit facility with Contran 314.3 314.3 313.0 313.0 Tremont promissory note payable 9.4 9.4 8.7 8.7 BMI bank note payable 18.0 18.8 18.0 18.8 LandWell note payable to the City of Henderson 2.1 2.1 2.1 2.1 At March 31, 2019, the estimated market price of Kronos’ Senior Notes was €954 per €1,000 principal amount. The fair value of Kronos’ Senior Notes 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 variable interest rate debt and other fixed-rate debt, which represents Level 2 inputs, is deemed to approximate carrying values. See Note 7. Due to their near-term maturities, the carrying amounts of accounts receivable and accounts payable are considered equivalent to fair value. See Notes 4 and 8. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 18—Recent accounting pronouncements: On January 1, 2019, we adopted ASU 2016-02, Leases (Topic 842) |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Organization | Organization — We are majority owned by a wholly-owned subsidiary of Contran Corporation (“Contran”), which owns approximately 92% of our outstanding common stock at March 31, 2019. 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., Tremont LLC, Basic Management, Inc. (“BMI”) and The LandWell Company (“LandWell”). Kronos (NYSE: KRO), NL (NYSE: NL), and CompX (NYSE American: CIX) each file periodic reports with the Securities and Exchange Commission (“SEC”). In January 2018, we sold Waste Control Specialists LLC (“WCS”). See Note 3. 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, 2018 that we filed with the SEC on March 11, 2019 (the “2018 Annual Report”). In our opinion, we have made all necessary adjustments (which include only normal recurring adjustments, other than the gain on the sale of WCS recognized in the first quarter of 2018 as discussed in Note 3), 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, 2018 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, 2018) 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 period ended March 31, 2019 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 2018 Consolidated Financial Statements contained in our 2018 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. |
Recent accounting pronouncements | On January 1, 2019, we adopted ASU 2016-02, Leases (Topic 842) |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Holding Percentage of Subsidiaries | Business segment Entity % controlled at Chemicals Kronos 80 % Component products CompX 87 % Real estate management and development BMI and LandWell 63% - 77 % |
Segment Operating Performance | Three months ended 2018 2019 (unaudited) Net sales: Chemicals $ 430.4 $ 436.5 Component products 28.4 31.2 Real estate management and development 7.2 11.9 Total net sales $ 466.0 $ 479.6 Cost of sales: Chemicals $ 256.1 $ 327.7 Component products 18.9 21.5 Real estate management and development 5.7 8.6 Total cost of sales $ 280.7 $ 357.8 Gross margin: Chemicals $ 174.3 $ 108.8 Component products 9.5 9.7 Real estate management and development 1.5 3.3 Total gross margin $ 185.3 $ 121.8 Operating income: Chemicals $ 110.6 $ 52.8 Component products 4.4 4.4 Real estate management and development 3.8 3.2 Total operating income 118.8 60.4 General corporate items: Securities earnings 8.3 3.1 Insurance recoveries .2 .3 Gain on land sales 12.5 — Changes in market value of Valhi common stock held by subsidiaries (.3 ) 1.1 Other components of net periodic pension and OPEB cost (3.7 ) (4.1 ) General expenses, net (14.0 ) (7.9 ) Interest expense (15.4 ) (10.3 ) Income from continuing operations before income taxes $ 106.4 $ 42.6 |
Business Disposition (Tables)
Business Disposition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Waste Control Specialists | |
Schedule of Operations of Disposed Waste Management Segment | Selected financial data for the operations of the disposed Waste Management Segment for periods prior to completing the sale is presented below. Three months ended March 31, 2018 (1) (In millions) Net sales $4.6 Operating loss $(.4) Interest expense, net (.3 Loss before taxes (.7) Income tax benefit .1 Net loss $(.6 Pre-tax gain on disposal $58.4 Income tax expense 20.2 After-tax gain on disposal 38.2 Total 37.6 Net cash provided by operating activities $2.3 Net cash used in investing activities $(.1) (1) Reflects the results of the Waste Management Segment though January 26, 2018, the date of the sale. |
Accounts and Other Receivable_2
Accounts and Other Receivables, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Components of Accounts and Other Receivables | December 31, March 31, (In millions) Trade accounts receivable: Kronos $ 273.3 $ 317.9 CompX 12.2 15.4 BMI and LandWell 1.5 1.3 VAT and other receivables 32.7 25.0 Refundable income taxes 5.7 3.6 Accrued insurance recovery related to litigation 15.0 15.0 Receivable from affiliates: Contran – trade items .5 .5 LPC – trade items 10.2 10.2 Other – trade items 2.8 2.7 Allowance for doubtful accounts (1.3 ) (1.7 ) Total $ 352.6 $ 389.9 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | December 31, March 31, (In millions) Raw materials: Chemicals $ 93.1 $ 102.0 Component products 2.7 3.3 Total raw materials 95.8 105.3 Work in process: Chemicals 23.5 29.2 Component products 11.1 11.8 Total in-process products 34.6 41.0 Finished products: Chemicals 317.6 299.7 Component products 3.3 3.4 Total finished products 320.9 303.1 Supplies (chemicals) 64.5 65.7 Total $ 515.8 $ 515.1 |
Other Noncurrent Assets (Tables
Other Noncurrent Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Noncurrent Assets | December 31, March 31, (In millions) Other noncurrent assets: Land held for development $ 129.2 $ 126.2 Operating lease right-of-use assets — 33.1 Restricted cash and cash equivalents 8.9 8.6 Land contract receivables 9.1 3.8 IBNR receivables 6.0 6.9 Marketable securities 4.8 4.9 Pension asset 2.7 3.4 Notes receivable - OPA 1.9 3.1 Other 12.7 13.7 Total $ 175.3 $ 203.7 |
Schedule of Maturities of Lease Liabilities | At March 31, 2019, maturities of our lease liabilities were as follows: Years ending December 31, Amount (In millions) Gross amounts due each year: 2019 (remainder of year) $ 5.8 2020 6.7 2021 6.0 2022 3.4 2023 2.2 2024 and thereafter 21.3 Total lease payments 45.4 Less imputed interest 13.0 Total lease obligations 32.4 Less current obligations 6.8 Long-term lease obligations $ 25.6 |
Future Minimum Payments Under Non-cancellable Operating Leases | Net operating lease rent expense approximated $14.3 million in 2016, $16.3 million in 2017 and $14.8 million in 2018. At December 31, 2018, future minimum payments under non-cancellable operating leases having an initial or remaining term of more than one year were as follows: Years ending December 31, Amount (In millions) 2019 $ 6.3 2020 5.1 2021 4.3 2022 3.2 2023 2.4 2024 and thereafter 21.5 Total (1) $ 42.8 (1) Approximately $17 million of the $42.8 million aggregate future minimum rental commitments at December 31, 2018 relates to Kronos’ Leverkusen facility lease discussed above. The minimum commitment amounts for such lease included in the table above for each year through the 2050 expiration of the lease are based upon the current annual rental rate as of December 31, 2018. As discussed above, any change in the rent is based solely on negotiations between Bayer and Kronos, and any such change in the rent was deemed “contingent rentals” under prior GAAP and was excluded from the future minimum lease payments disclosed above. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | December 31, March 31, (In millions) Valhi: Contran credit facility $ 314.3 $ 313.0 Subsidiary debt: Kronos: Senior Secured Notes 452.4 443.2 Tremont: Promissory note payable 9.4 8.7 BMI: Bank loan – Western Alliance Bank 18.0 18.0 LandWell: Note payable to the City of Henderson 2.1 2.1 Other 4.2 4.2 Total subsidiary debt 486.1 476.2 Total debt 800.4 789.2 Less current maturities 2.9 2.9 Total long-term debt $ 797.5 $ 786.3 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Payables And Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | December 31, March 31, (In millions) Accounts payable: Kronos $ 103.2 $ 111.8 CompX 3.2 3.3 BMI and LandWell 2.9 4.0 NL 1.6 1.2 Other .6 .5 Payable to affiliates: Contran – income taxes 10.0 12.2 LPC – trade items 16.7 15.2 Accrued litigation settlement 60.0 60.0 Operating lease liability — 6.8 Employee benefits 37.5 34.8 Deferred income 28.3 18.9 Accrued sales discounts and rebates 29.7 22.1 Environmental remediation and related costs 6.5 6.4 Interest 5.2 1.2 Other 33.6 37.3 Total $ 339.0 $ 335.7 The accrued litigation settlement is discussed in Note 16. The operating lease liability is discussed in Notes 6 and 18. |
Other Noncurrent Liabilities (T
Other Noncurrent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Noncurrent Liabilities | December 31, March 31, (In millions) Operating lease liability $ — $ 25.6 Reserve for uncertain tax positions 19.1 19.4 Accrued litigation settlement 17.0 17.0 Deferred income 15.8 7.7 Other postretirement benefits 10.3 10.3 Employee benefits 7.1 6.9 Insurance claims and expenses 8.1 9.0 Deferred payment obligation 9.6 9.7 Accrued development costs 7.5 8.2 Other 9.9 9.6 Total $ 104.4 $ 123.4 |
Revenue - Disaggregation of S_2
Revenue - Disaggregation of Sales (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Disaggregates of Net Sales | The following table disaggregates the net sales of our Chemicals Segment by the categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Three months ended March 31, 2018 2019 (In millions) Net sales – point of origin: Germany $ 234.5 $ 219.2 United States 196.8 245.3 Canada 71.6 78.5 Belgium 69.7 69.7 Norway 53.1 51.5 Eliminations (195.3 ) (227.7 ) Total $ 430.4 $ 436.5 Net sales – point of destination: Europe $ 233.9 $ 215.2 North America 127.0 146.8 Other 69.5 74.5 $ 430.4 $ 436.5 The following table disaggregates the net sales of our Component Products and Real Estate Management and Development Segments by major product line. Three months ended March 31, 2018 2019 (In millions) Component Products: Net sales: Security products $ 24.1 $ 24.7 Marine components 4.3 6.5 $ 28.4 $ 31.2 Real Estate Management and Development: Net sales: Land sales $ 5.8 $ 9.5 Water delivery .9 1.9 Utility and other .5 .5 $ 7.2 $ 11.9 |
Defined Benefit Pension Plans (
Defined Benefit Pension Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Defined Benefit Pension Plans | |
Components of Net Periodic Defined Benefit Cost | The components of our net periodic defined benefit pension cost are presented in the table below. Three months ended 2018 2019 (In millions) Service cost $ 3.0 $ 2.8 Interest cost 4.0 4.0 Expected return on plan assets (4.0 ) (3.7 ) Amortization of unrecognized prior service cost .1 .1 Recognized actuarial losses 3.8 3.8 Total $ 6.9 $ 7.0 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Income And Expenses [Abstract] | |
Schedule of Components of Other Income | Three months ended 2018 2019 (In millions) Securities earnings: Dividends and interest $ 8.3 $ 2.9 Securities transactions, net — .2 8.3 3.1 Currency transactions, net (5.0 ) .9 Insurance recoveries .2 .3 Infrastructure reimbursement 3.8 1.1 Gain on land sales 12.5 — Other, net .6 1.2 Total $ 20.4 $ 6.6 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Component of Income Taxes Expenses | Three months ended 2018 2019 (In millions) Expected tax expense, at U.S. federal statutory income tax rate of 21% $ 22.4 $ 8.9 Incremental net tax (benefit) on earnings and losses of non-U.S. and non-tax group companies 4.1 (.2 ) Non-U.S. tax rates 7.0 2.3 Valuation allowance .3 1.0 Global intangible low-tax income, net — .7 Adjustment to the reserve for uncertain tax positions, net 1.6 .5 Canada – Germany APA (1.4 ) — U.S. state income taxes and other, net 2.2 1.0 Income tax expense $ 36.2 $ 14.2 Comprehensive provision for income taxes (benefit) allocable to: Income from continuing operations $ 36.2 $ 14.2 Discontinued operations 20.1 — Retained earnings – change in accounting principle 1.1 — Other comprehensive income (loss): Currency translation 1.4 — Pension plans 1.5 1.6 OPEB plans (.1 ) (.1 ) Total $ 60.2 $ 15.7 |
Noncontrolling Interest in Su_2
Noncontrolling Interest in Subsidiaries (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest in Net Assets of Subsidiaries | December 31, March 31, (In millions) Noncontrolling interest in net assets: Kronos Worldwide $ 221.4 $ 223.5 NL Industries 62.4 65.1 CompX International 19.4 19.9 BMI 27.1 26.7 LandWell 23.3 22.8 Total $ 353.6 $ 358.0 |
Schedule of Noncontrolling Interest in Net Income of Subsidiaries | Three months ended March 31, 2018 2019 (In millions) Noncontrolling interest in net income of subsidiaries: Kronos Worldwide $ 13.8 $ 5.9 NL Industries 2.4 2.6 CompX International .5 .5 BMI .6 .5 LandWell 1.2 .7 Total $ 18.5 $ 10.2 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) attributable to Valhi stockholders for the three months ended March 31, 2018 and 2019 are presented in the table below. Three months ended 2018 2019 (In millions) Accumulated other comprehensive income (loss), net of tax and noncontrolling interest: Marketable securities: Balance at beginning of period $ 1.7 $ 1.7 Other comprehensive loss – unrealized losses arising during the period (.1 ) — Balance at end of period $ 1.6 $ 1.7 Currency translation adjustment: Balance at beginning of period $ (54.1 ) $ (75.6 ) Other comprehensive income (loss) 7.2 (.2 ) Balance at end of period $ (46.9 ) $ (75.8 ) Defined benefit pension plans: Balance at beginning of period $ (129.0 ) $ (134.0 ) Other comprehensive income— amortization of prior service cost and net losses included in net periodic pension cost 1.9 1.7 Balance at end of period $ (127.1 ) $ (132.3 ) OPEB plans: Balance at beginning of period $ 2.4 $ 1.7 Other comprehensive loss – amortization of prior service credit (.2 ) (.2 ) Balance at end of period $ 2.2 $ 1.5 Total accumulated other comprehensive income (loss): Balance at beginning of period $ (179.0 ) $ (206.2 ) Other comprehensive income 8.8 1.3 Balance at end of period $ (170.2 ) $ (204.9 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 three months of 2019 are presented below. Amount (In millions) Balance at the beginning of the year $ 103.4 Additions charged (credited) to expense, net (.7 ) Payments, net (.8 ) Other, net .6 Balance at the end of period $ 102.5 Amounts recognized in our Condensed Consolidated Balance Sheet at the end of the period: Current liabilities $ 6.4 Noncurrent liabilities 96.1 Total $ 102.5 |
Fair Value Measurements and F_2
Fair Value Measurements and Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
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, 2018 March 31, 2019 Carrying Fair Carrying Fair (In millions) Cash, cash equivalents and restricted cash equivalents $ 523.7 $ 523.7 $ 487.6 $ 487.6 Deferred payment obligation 9.6 9.6 9.7 9.7 Long-term debt (excluding capitalized leases): Kronos Senior Notes 452.4 412.9 443.2 428.6 Valhi credit facility with Contran 314.3 314.3 313.0 313.0 Tremont promissory note payable 9.4 9.4 8.7 8.7 BMI bank note payable 18.0 18.8 18.0 18.8 LandWell note payable to the City of Henderson 2.1 2.1 2.1 2.1 |
Organization and Basis of Pre_3
Organization and Basis of Presentation - Additional Information (Detail) | Mar. 31, 2019 |
Contran | Valhi Incorporation | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |
Parent company ownership interest | 92.00% |
Business Segment Information -
Business Segment Information - Holding Percentage of Subsidiaries (Detail) | Mar. 31, 2019 |
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% |
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 _2
Business Segment Information - Additional Information (Detail) | Mar. 31, 2019 |
Kronos Worldwide, Inc. | Valhi Incorporation | |
Segment Reporting Information [Line Items] | |
Direct ownership percentage by parent | 50.00% |
Kronos Worldwide, Inc. | NL | |
Segment Reporting Information [Line Items] | |
Indirect controlling interest in subsidiary | 30.00% |
NL | Valhi Incorporation | |
Segment Reporting Information [Line Items] | |
Direct ownership percentage by parent | 83.00% |
LandWell | Valhi Incorporation | |
Segment Reporting Information [Line Items] | |
Direct ownership percentage by parent | 27.00% |
LandWell | BMI | |
Segment Reporting Information [Line Items] | |
Indirect controlling interest in subsidiary | 50.00% |
BMI | Valhi Incorporation | |
Segment Reporting Information [Line Items] | |
Direct ownership percentage by parent | 63.00% |
Business Segment Information _3
Business Segment Information - Segment Operating Performance (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 479.6 | $ 466 |
Cost of sales | 357.8 | 280.7 |
Gross margin | 121.8 | 185.3 |
Operating income | 60.4 | 118.8 |
Securities earnings | 3.1 | 8.3 |
Insurance recoveries | 0.3 | 0.2 |
Gain on land sales | 12.5 | |
Changes in market value of Valhi common stock held by subsidiaries | 1.1 | (0.3) |
Other components of net periodic pension and OPEB cost | (4.1) | (3.7) |
General expenses, net | (7.9) | (14) |
Interest expense | (10.3) | (15.4) |
Income from continuing operations before income taxes | 42.6 | 106.4 |
Chemicals | ||
Segment Reporting Information [Line Items] | ||
Net sales | 436.5 | 430.4 |
Cost of sales | 327.7 | 256.1 |
Gross margin | 108.8 | 174.3 |
Operating income | 52.8 | 110.6 |
Component Products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 31.2 | 28.4 |
Cost of sales | 21.5 | 18.9 |
Gross margin | 9.7 | 9.5 |
Operating income | 4.4 | 4.4 |
Real Estate Management And Development | ||
Segment Reporting Information [Line Items] | ||
Net sales | 11.9 | 7.2 |
Cost of sales | 8.6 | 5.7 |
Gross margin | 3.3 | 1.5 |
Operating income | $ 3.2 | $ 3.8 |
Business Disposition - Addition
Business Disposition - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Jun. 30, 2017 | Jan. 26, 2018 | |
WCS | Contran Credit Facility | Contran | Amounts Acquired in Business Divestiture | |||
Business Combinations Discontinued Operations And Related Transactions [Line Items] | |||
Acquired trade receivable | $ 36.3 | ||
Waste Management | |||
Business Combinations Discontinued Operations And Related Transactions [Line Items] | |||
Pre-tax gain from disposal of discontinued operations | $ 58.4 | ||
Gain from disposal of discontinued operations, net of tax | 38.2 | ||
Impairment of long lived assets held for use | $ 170.6 | ||
Waste Management | Contran Credit Facility | |||
Business Combinations Discontinued Operations And Related Transactions [Line Items] | |||
Noncash borrowings | $ 36.3 | ||
Waste Management | Discontinued Operations | |||
Business Combinations Discontinued Operations And Related Transactions [Line Items] | |||
Pre-tax gain from disposal of discontinued operations | 58 | ||
Gain from disposal of discontinued operations, net of tax | $ 38.2 | ||
Gain on disposal of discontinued operations, per diluted share, net of tax | $ 0.11 |
Business Disposition - Schedule
Business Disposition - Schedule of Consolidated Statements of Operations (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Total | $ 37.6 |
Waste Management | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Net sales | 4.6 |
Operating loss | (0.4) |
Interest expense, net | (0.3) |
Loss before taxes | (0.7) |
Income tax benefit | 0.1 |
Net loss | (0.6) |
Pre-tax gain on disposal | 58.4 |
Income tax expense | 20.2 |
After-tax gain on disposal | 38.2 |
Total | 37.6 |
Net cash provided by operating activities | 2.3 |
Net cash used in investing activities | $ (0.1) |
Accounts and Other Receivable_3
Accounts and Other Receivables, Net - Components of Accounts and Other Receivables (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Trade accounts receivable: | ||
VAT and other receivables | $ 25 | $ 32.7 |
Refundable income taxes | 3.6 | 5.7 |
Accrued insurance recovery related to litigation | 15 | 15 |
Allowance for doubtful accounts | (1.7) | (1.3) |
Total | 389.9 | 352.6 |
Trade Accounts Receivable | Kronos Worldwide, Inc. | ||
Trade accounts receivable: | ||
Accounts receivable | 317.9 | 273.3 |
Trade Accounts Receivable | CompX | ||
Trade accounts receivable: | ||
Accounts receivable | 15.4 | 12.2 |
Trade Accounts Receivable | BMI and LandWell | ||
Trade accounts receivable: | ||
Accounts receivable | 1.3 | 1.5 |
Contran | Trade Items | ||
Trade accounts receivable: | ||
Receivable from affiliates | 0.5 | 0.5 |
LPC | Trade Items | ||
Trade accounts receivable: | ||
Receivable from affiliates | 10.2 | 10.2 |
Other | Trade Items | ||
Trade accounts receivable: | ||
Receivable from affiliates | $ 2.7 | $ 2.8 |
Inventories, Net - Inventories,
Inventories, Net - Inventories, Net (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory [Line Items] | ||
Raw materials | $ 105.3 | $ 95.8 |
Work in process | 41 | 34.6 |
Finished products | 303.1 | 320.9 |
Supplies (chemicals) | 65.7 | 64.5 |
Total | 515.1 | 515.8 |
Chemicals | ||
Inventory [Line Items] | ||
Raw materials | 102 | 93.1 |
Work in process | 29.2 | 23.5 |
Finished products | 299.7 | 317.6 |
Component Products | ||
Inventory [Line Items] | ||
Raw materials | 3.3 | 2.7 |
Work in process | 11.8 | 11.1 |
Finished products | $ 3.4 | $ 3.3 |
Other Noncurrent Assets - Other
Other Noncurrent Assets - Other Noncurrent Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Other noncurrent assets: | ||
Land held for development | $ 126.2 | $ 129.2 |
Operating lease right-of-use assets | 33.1 | |
Restricted cash and cash equivalents | 8.6 | 8.9 |
Land contract receivables | 3.8 | 9.1 |
IBNR receivables | 6.9 | 6 |
Marketable securities | 4.9 | 4.8 |
Pension asset | 3.4 | 2.7 |
Notes receivable - OPA | 3.1 | 1.9 |
Other | 13.7 | 12.7 |
Total | $ 203.7 | $ 175.3 |
Other Noncurrent Assets - Addit
Other Noncurrent Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Assets Non Current [Line Items] | |||||
Operating lease expense | $ 2.1 | ||||
Weighted average remaining lease term | 13 years | ||||
Weighted average discount rate associated with leases | 4.50% | ||||
Net operating lease rent expense | $ 14.8 | $ 16.3 | $ 14.3 | ||
Infrastructure reimbursement | $ 1.1 | $ 3.8 | |||
City Of Henderson | |||||
Other Assets Non Current [Line Items] | |||||
Infrastructure reimbursement | $ 1.1 | $ 3.8 |
Other Noncurrent Assets - Sched
Other Noncurrent Assets - Schedule of Maturities of Lease Liabilities (Detail) $ in Millions | Mar. 31, 2019USD ($) |
Gross amounts due each year: | |
2019 (remainder of year) | $ 5.8 |
2020 | 6.7 |
2021 | 6 |
2022 | 3.4 |
2023 | 2.2 |
2024 and thereafter | 21.3 |
Total lease payments | 45.4 |
Less imputed interest | 13 |
Total lease obligations | 32.4 |
Less current obligations | 6.8 |
Long-term lease obligations | $ 25.6 |
Other Noncurrent Assets - Futur
Other Noncurrent Assets - Future Minimum Payments under Non-cancellable Operating Leases (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2019 | $ 6.3 |
2020 | 5.1 |
2021 | 4.3 |
2022 | 3.2 |
2023 | 2.4 |
2024 and thereafter | 21.5 |
Total | $ 42.8 |
Other Noncurrent Assets - Fut_2
Other Noncurrent Assets - Future Minimum Payments under Non-cancellable Operating Leases (Parenthetical) (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Future Minimum Payments Under Non Cancelable Operating Leases With Initial Terms Of One Year Or More [Line Items] | |
Future minimum lease payments | $ 42.8 |
Leverkusen TiO2 production facility | Chemicals | |
Future Minimum Payments Under Non Cancelable Operating Leases With Initial Terms Of One Year Or More [Line Items] | |
Future minimum lease payments | $ 17 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Long-term debt | ||
Total debt | $ 789.2 | $ 800.4 |
Less current maturities | 2.9 | 2.9 |
Total long-term debt | 786.3 | 797.5 |
VALHI, INC. | Contran Credit Facility | ||
Long-term debt | ||
Total debt | 313 | 314.3 |
Kronos Worldwide, Inc. | 3.75% Senior Secured Notes due September 15, 2025 | Kronos International, Inc | ||
Long-term debt | ||
Total debt | 443.2 | 452.4 |
Tremont | Promissory Note | ||
Long-term debt | ||
Total debt | 8.7 | 9.4 |
BMI | Bank loan | Western Alliance Bank | ||
Long-term debt | ||
Total debt | 18 | 18 |
LandWell | Unsecured Debt | ||
Long-term debt | ||
Total debt | 2.1 | 2.1 |
Other Subsidiary | Other | ||
Long-term debt | ||
Total debt | 4.2 | 4.2 |
Subsidiary | ||
Long-term debt | ||
Total debt | $ 476.2 | $ 486.1 |
Long-Term Debt - Valhi Contran
Long-Term Debt - Valhi Contran Credit Facility - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |
Repaid amount | $ 1.3 |
VALHI, INC. | Contran Credit Facility | |
Debt Instrument [Line Items] | |
Debt instrument, Interest rate at period end | 6.50% |
Amount available for borrowing | $ 47 |
Long-Term Debt - Kronos Senior
Long-Term Debt - Kronos Senior Secured Notes - Additional Information (Detail) - Kronos Worldwide, Inc. - 3.75% Senior Secured Notes due September 15, 2025 - Kronos International, Inc $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($) | Mar. 31, 2019EUR (€) | |
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 3.75% | 3.75% |
Debt instrument maturity date | Sep. 15, 2025 | |
Debt instrument principal amount | € | € 400,000,000 | |
Unamortized debt issuance costs | $ | $ 5.9 |
Long-Term Debt - Revolving Cred
Long-Term Debt - Revolving Credit Facility - Additional Information (Detail) - 3 months ended Mar. 31, 2019 - Kronos Worldwide, Inc. € in Millions, $ in Millions | USD ($) | EUR (€) |
European Revolving Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Amount available for borrowing | $ 101.1 | € 90 |
Revolving credit facility, borrowings | 0 | |
Repayment of credit facility | 0 | |
North American Revolving Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Amount available for borrowing | 123.1 | |
Revolving North American Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Revolving credit facility, borrowings | 0 | |
Repayment of credit facility | $ 0 |
Long-Term Debt - Tremont Promis
Long-Term Debt - Tremont Promissory Note Payable - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Promissory Note | Tremont | |
Debt Instrument [Line Items] | |
Principal prepayments of note | $ 0.7 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities - Schedule of Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Payable to affiliates: | ||
Accrued litigation settlement | $ 60 | $ 60 |
Operating lease liability | 6.8 | |
Employee benefits | 34.8 | 37.5 |
Deferred income | 18.9 | 28.3 |
Accrued sales discounts and rebates | 22.1 | 29.7 |
Environmental remediation and related costs | 6.4 | 6.5 |
Interest | 1.2 | 5.2 |
Other | 37.3 | 33.6 |
Total | 335.7 | 339 |
Kronos Worldwide, Inc. | ||
Accounts payable: | ||
Accounts payable | 111.8 | 103.2 |
CompX | ||
Accounts payable: | ||
Accounts payable | 3.3 | 3.2 |
BMI and LandWell | ||
Accounts payable: | ||
Accounts payable | 4 | 2.9 |
NL | ||
Accounts payable: | ||
Accounts payable | 1.2 | 1.6 |
Other | ||
Accounts payable: | ||
Accounts payable | 0.5 | 0.6 |
Contran | Income Taxes Payable | ||
Payable to affiliates: | ||
Payable to affiliates | 12.2 | 10 |
LPC | Trade Accounts Payables | ||
Payable to affiliates: | ||
Payable to affiliates | $ 15.2 | $ 16.7 |
Other Noncurrent Liabilities -
Other Noncurrent Liabilities - Other Noncurrent Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Operating lease liability | $ 25.6 | |
Reserve for uncertain tax positions | 19.4 | $ 19.1 |
Accrued litigation settlement | 17 | 17 |
Deferred income | 7.7 | 15.8 |
Other postretirement benefits | 10.3 | 10.3 |
Employee benefits | 6.9 | 7.1 |
Insurance claims and expenses | 9 | 8.1 |
Deferred payment obligation | 9.7 | 9.6 |
Accrued development costs | 8.2 | 7.5 |
Other | 9.6 | 9.9 |
Total | $ 123.4 | $ 104.4 |
Revenue - Disaggregation of S_3
Revenue - Disaggregation of Sales - Schedule of Disaggregates of Net Sales of our Chemicals Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 479.6 | $ 466 |
Chemicals | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 436.5 | 430.4 |
Point of Origin | Chemicals | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 436.5 | 430.4 |
Point of Origin | Chemicals | Germany | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 219.2 | 234.5 |
Point of Origin | Chemicals | United States | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 245.3 | 196.8 |
Point of Origin | Chemicals | Canada | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 78.5 | 71.6 |
Point of Origin | Chemicals | Belgium | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 69.7 | 69.7 |
Point of Origin | Chemicals | Norway | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 51.5 | 53.1 |
Point of Origin | Chemicals | Eliminations | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | (227.7) | (195.3) |
Point of Destination | Chemicals | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 436.5 | 430.4 |
Point of Destination | Chemicals | Europe | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 215.2 | 233.9 |
Point of Destination | Chemicals | North America | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 146.8 | 127 |
Point of Destination | Chemicals | Other | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 74.5 | $ 69.5 |
Revenue - Disaggregation of S_4
Revenue - Disaggregation of Sales - Schedule of Disaggregates of Net Sales of our Component Products and Real Estate Management and Development Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 479.6 | $ 466 |
Component Products | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 31.2 | 28.4 |
Component Products | Security Products | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 24.7 | 24.1 |
Component Products | Marine Components | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 6.5 | 4.3 |
Real Estate Management And Development | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 11.9 | 7.2 |
Real Estate Management And Development | Land Sales | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 9.5 | 5.8 |
Real Estate Management And Development | Water Delivery | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 1.9 | 0.9 |
Real Estate Management And Development | Utility and Other | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 0.5 | $ 0.5 |
Defined Benefit Pension Plans -
Defined Benefit Pension Plans - Components of Net Periodic Defined Benefit Pension Benefit Cost (Detail) - Defined Benefit Pension Plans - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 2.8 | $ 3 |
Interest cost | 4 | 4 |
Expected return on plan assets | (3.7) | (4) |
Amortization of unrecognized prior service cost | 0.1 | 0.1 |
Recognized actuarial losses | 3.8 | 3.8 |
Total | $ 7 | $ 6.9 |
Defined Benefit Pension Plans_2
Defined Benefit Pension Plans - Additional Information (Detail) $ in Millions | Mar. 31, 2019USD ($) |
Defined Benefit Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution | $ 18.2 |
Other Income, Net - Schedule of
Other Income, Net - Schedule of Components of Other Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Securities earnings: | ||
Dividends and interest | $ 2.9 | $ 8.3 |
Securities transactions, net | 0.2 | |
Security earnings, total | 3.1 | 8.3 |
Currency transactions, net | 0.9 | (5) |
Insurance recoveries | 0.3 | 0.2 |
Infrastructure reimbursement | 1.1 | 3.8 |
Gain on land sales | 12.5 | |
Other, net | 1.2 | 0.6 |
Total | $ 6.6 | $ 20.4 |
Other Income, Net - Additional
Other Income, Net - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)Parcel | |
Disclosure Other Income Net Additional Information Detail [Line Items] | |
Number of land parecels | Parcel | 2 |
Net proceeds | $ 19.5 |
Pre-tax gain on sale of land | 11.9 |
Tremont | |
Disclosure Other Income Net Additional Information Detail [Line Items] | |
Net proceeds | 18.9 |
NL | |
Disclosure Other Income Net Additional Information Detail [Line Items] | |
Net proceeds | $ 0.6 |
Income Taxes - Components of Co
Income Taxes - Components of Comprehensive Provision for Income Taxes Allocation (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule Of Income Tax [Line Items] | ||
Expected tax expense, at U.S. federal statutory income tax rate of 21% | $ 8.9 | $ 22.4 |
Incremental net tax (benefit) on earnings and losses of non-U.S. and non-tax group companies | (0.2) | 4.1 |
Non-U.S. tax rates | 2.3 | 7 |
Valuation allowance | 1 | 0.3 |
Global intangible low-tax income, net | 0.7 | |
Adjustment to the reserve for uncertain tax positions, net | 0.5 | 1.6 |
U.S. state income taxes and other, net | 1 | 2.2 |
Income tax expense | 14.2 | 36.2 |
Comprehensive provision for income taxes (benefit) allocable to: | ||
Income from continuing operations | 14.2 | 36.2 |
Discontinued operations | 20.1 | |
Retained earnings – change in accounting principle | 1.1 | |
Other comprehensive income (loss): | ||
Currency translation | 1.4 | |
Total | 15.7 | 60.2 |
Kronos Worldwide, Inc. | Canada-Germany APA | ||
Schedule Of Income Tax [Line Items] | ||
Canada – Germany APA | (1.4) | |
Pension Plans | ||
Other comprehensive income (loss): | ||
Defined benefit plans | 1.6 | 1.5 |
OPEB Plans | ||
Other comprehensive income (loss): | ||
Defined benefit plans | $ (0.1) | $ (0.1) |
Income Taxes - Components of _2
Income Taxes - Components of Comprehensive Provision for Income Taxes Allocation (Parenthetical) (Detail) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal statutory income tax rate | 21.00% | 21.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal statutory income tax rate | 21.00% | 21.00% |
Non-cash income tax benefit | $ 1.4 | |
Provision for income taxes includes non-cash deferred income tax expense | $ 1 | $ 5.9 |
Business interest income, adjusted taxable income | 30.00% | |
Increase (decrease) in unrecognized tax benefits | $ (3.7) |
Noncontrolling Interest in Su_3
Noncontrolling Interest in Subsidiaries - Noncontrolling Interest in Net Assets of Subsidiaries (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | $ 358 | $ 353.6 |
Kronos Worldwide, Inc. | ||
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | 223.5 | 221.4 |
NL Industries | ||
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | 65.1 | 62.4 |
CompX International | ||
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | 19.9 | 19.4 |
BMI | ||
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | 26.7 | 27.1 |
LandWell | ||
Noncontrolling interest in net assets: | ||
Noncontrolling interest in subsidiaries | $ 22.8 | $ 23.3 |
Noncontrolling Interest in Su_4
Noncontrolling Interest in Subsidiaries - Schedule of Noncontrolling Interest in Net Income of Subsidiaries (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Noncontrolling interest in net income of subsidiaries: | ||
Noncontrolling interest in net income of subsidiaries | $ 10.2 | $ 18.5 |
Kronos Worldwide, Inc. | ||
Noncontrolling interest in net income of subsidiaries: | ||
Noncontrolling interest in net income of subsidiaries | 5.9 | 13.8 |
NL Industries | ||
Noncontrolling interest in net income of subsidiaries: | ||
Noncontrolling interest in net income of subsidiaries | 2.6 | 2.4 |
CompX International | ||
Noncontrolling interest in net income of subsidiaries: | ||
Noncontrolling interest in net income of subsidiaries | 0.5 | 0.5 |
BMI | ||
Noncontrolling interest in net income of subsidiaries: | ||
Noncontrolling interest in net income of subsidiaries | 0.5 | 0.6 |
LandWell | ||
Noncontrolling interest in net income of subsidiaries: | ||
Noncontrolling interest in net income of subsidiaries | $ 0.7 | $ 1.2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | $ 635.4 | |
Balance at end of period | 648.1 | |
Marketable Securities | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | 1.7 | $ 1.7 |
Other comprehensive income (loss) | (0.1) | |
Balance at end of period | 1.7 | 1.6 |
Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | (75.6) | (54.1) |
Other comprehensive income (loss) | (0.2) | 7.2 |
Balance at end of period | (75.8) | (46.9) |
Accumulated Defined Benefit Plans Adjustment | Defined Benefit Pension Plans | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | (134) | (129) |
Other comprehensive income (loss) | 1.7 | 1.9 |
Balance at end of period | (132.3) | (127.1) |
Accumulated Defined Benefit Plans Adjustment | OPEB | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | 1.7 | 2.4 |
Other comprehensive income (loss) | (0.2) | (0.2) |
Balance at end of period | 1.5 | 2.2 |
Total Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | (206.2) | (179) |
Other comprehensive income (loss) | 1.3 | 8.8 |
Balance at end of period | $ (204.9) | $ (170.2) |
Commitments and Contingencies -
Commitments and Contingencies - Lead Pigment Litigation-NL and Environmental Matters and Litigation - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | ||||||
Mar. 31, 2019USD ($)site | Sep. 30, 2018USD ($) | May 31, 2018USD ($)Installment | Mar. 31, 2019USD ($)CasesInstallmentsite | Jun. 30, 2018USD ($)Installment | Dec. 31, 2018USD ($) | Nov. 30, 2018Complaint | Aug. 31, 2018USD ($) | |
Commitments And Contingent Liabilities [Line Items] | ||||||||
Litigation settlement net present value | $ 17 | $ 17 | $ 17 | |||||
Current insurance recovery receivable | 15 | 15 | 15 | |||||
Accrued litigation settlement | 60 | 60 | 60 | |||||
Accrual for reasonably estimable environmental remediation and related matters | 102.5 | 102.5 | $ 103.4 | |||||
Other Environmental Cleanup Matters | ||||||||
Commitments And Contingent Liabilities [Line Items] | ||||||||
Accrual for reasonably estimable environmental remediation and related matters | 5.5 | 5.5 | ||||||
NL | ||||||||
Commitments And Contingent Liabilities [Line Items] | ||||||||
Recalculated abatement fund amount | $ 409 | |||||||
Settlement of recalculated abatement fund amount | 401 | $ 409 | ||||||
Recalculated abatement fund amount undetermined | 409 | |||||||
Settlement of recalculated abatement fund offset amount granted | 8 | |||||||
Number of complaints filed | Complaint | 2 | |||||||
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 | $ 97 | $ 97 | ||||||
Number of sites associated with remediation and related costs | site | 32 | 32 | ||||||
Number of sites for which NL not currently able to reasonably estimate range of costs | site | 5 | 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 | $ 117 | $ 117 | ||||||
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 | |||||||
Settlement agreement amount | $ 80 | $ 45 | ||||||
Settlement agreement amount to be paid | 65 | 62 | ||||||
Litigation settlement charge upon trial court's approval | $ 45 | $ 45 | ||||||
Number of annual installments | Installment | 5 | 5 | 5 | |||||
Litigation settlement installments payment beginning term from approval | 4 years | 4 years | ||||||
Remaining litigation settlement charge | $ 20 | $ 20 | $ 20 | $ 20 | ||||
Remaining litigation settlement charge due in first installment | 6 | |||||||
Remaining litigation settlement charge due in second installment | 5 | |||||||
Remaining litigation settlement charge due in third installment | 3 | |||||||
Remaining litigation settlement charge due in fourth installment | 3 | |||||||
Remaining litigation settlement charge due in fifth installment | 3 | |||||||
Discounted rate for estimated present value of remaining litigation amount | 3.00% | 3.00% | ||||||
Litigation settlement net present value | $ 17 | $ 17 | 17 | |||||
Current insurance recovery receivable | 15 | |||||||
Accrued litigation settlement | $ 60 | |||||||
Lead Pigment Litigation | NL | Former Insurance Carriers | ||||||||
Commitments And Contingent Liabilities [Line Items] | ||||||||
Settlement agreement amount to be paid | $ 15 | |||||||
California Lead Paint Litigation | NL | ||||||||
Commitments And Contingent Liabilities [Line Items] | ||||||||
Amount awarded to the plaintiff | $ 1,150 | |||||||
Lead Pigment Litigation Plaintiffs | ||||||||
Commitments And Contingent Liabilities [Line Items] | ||||||||
Proposed abatement fund amount | $ 730 |
Commitments and Contingencies_2
Commitments and Contingencies - Changes in Accrued Environmental Remediation and Related Costs (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Environmental Remediation Obligations [Abstract] | |||
Balance at the beginning of the year | $ 103.4 | ||
Additions charged (credited) to expense, net | (0.7) | ||
Payments, net | (0.8) | ||
Other, net | 0.6 | ||
Balance at the end of period | 102.5 | ||
Amounts recognized in our Condensed Consolidated Balance Sheet at the end of the period: | |||
Current liabilities | $ 6.4 | $ 6.5 | |
Noncurrent liabilities | 96.1 | 96.9 | |
Total | $ 103.4 | $ 102.5 | $ 103.4 |
Fair Value Measurements and F_3
Fair Value Measurements and Financial Instruments - Additional Information (Detail) - Kronos Worldwide, Inc. | Mar. 31, 2019USD ($) | Mar. 31, 2019EUR (€) | Mar. 31, 2018USD ($) |
3.75% Senior Secured Notes due September 15, 2025 | Kronos International, Inc | |||
Financial Instrument At Fair Value [Line Items] | |||
Estimated market price of the notes | € 954 | ||
Principal amount of debt instrument | € 1,000 | ||
Currency Forward Contracts | |||
Financial Instrument At Fair Value [Line Items] | |||
Currency forward contracts outstanding | $ | $ 0 | $ 0 |
Fair Value Measurements and F_4
Fair Value Measurements and Financial Instruments - Financial Instruments not Carried at Fair Value (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Kronos Worldwide, Inc. | 3.75% Senior Secured Notes due September 15, 2025 | Kronos International, Inc | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long term debt, carrying amount | $ 443.2 | $ 452.4 |
Long term debt, fair value | 428.6 | 412.9 |
VALHI, INC. | Contran Credit Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long term debt, carrying amount | 313 | 314.3 |
Long term debt, fair value | 313 | 314.3 |
Tremont | Promissory Note | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long term debt, carrying amount | 8.7 | 9.4 |
Long term debt, fair value | 8.7 | 9.4 |
BMI | Bank note payable | Meadows Term Loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long term debt, carrying amount | 18 | 18 |
Long term debt, fair value | 18.8 | 18.8 |
LandWell | Unsecured Debt | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long term debt, carrying amount | 2.1 | 2.1 |
Long term debt, fair value | 2.1 | 2.1 |
Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash, cash equivalents and restricted cash equivalents | 487.6 | 523.7 |
Deferred payment obligation | 9.7 | 9.6 |
Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash, cash equivalents and restricted cash equivalents | 487.6 | 523.7 |
Deferred payment obligation | $ 9.7 | $ 9.6 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Right-of-use operating lease asset | $ 33.1 | |
Operating lease liability | $ 32.4 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Right-of-use operating lease asset | $ 35.1 | |
Operating lease liability | $ 34.5 |