Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 02, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | NL | |
Entity Registrant Name | NL INDUSTRIES INC | |
Entity Central Index Key | 72,162 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 48,727,484 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 123,028 | $ 98,316 |
Restricted cash and cash equivalents | 4,254 | 3,370 |
Accounts and other receivables, net | 28,869 | 10,670 |
Inventories, net | 17,159 | 15,382 |
Receivable from affiliate | 1,767 | |
Prepaid expenses and other | 1,052 | 1,162 |
Total current assets | 174,362 | 130,667 |
Other assets: | ||
Notes receivable from affiliate | 33,000 | 38,200 |
Marketable securities | 32,770 | 88,681 |
Investment in Kronos Worldwide, Inc. | 265,776 | 229,543 |
Goodwill | 27,156 | 27,156 |
Other assets, net | 5,137 | 4,843 |
Total other assets | 363,839 | 388,423 |
Property and equipment: | ||
Land | 5,151 | 5,146 |
Buildings | 22,704 | 23,044 |
Equipment | 66,118 | 67,926 |
Construction in progress | 994 | 569 |
Property and equipment, gross | 94,967 | 96,685 |
Less accumulated depreciation | 63,209 | 64,159 |
Net property and equipment | 31,758 | 32,526 |
Total assets | 569,959 | 551,616 |
Current liabilities: | ||
Accounts payable | 5,833 | 4,116 |
Accrued and other current liabilities | 70,050 | 9,707 |
Accrued environmental remediation and related costs | 17,762 | 5,302 |
Payable to affiliates | 1,600 | 429 |
Income taxes | 46 | 30 |
Total current liabilities | 95,291 | 19,584 |
Noncurrent liabilities: | ||
Long-term debt from affiliate | 500 | 500 |
Accrued pension costs | 9,242 | 12,194 |
Accrued postretirement benefits (OPEB) costs | 1,709 | 1,846 |
Accrued environmental remediation and related costs | 93,720 | 106,607 |
Deferred income taxes | 32,781 | 49,315 |
Other | 25,396 | 8,492 |
Total noncurrent liabilities | 163,348 | 178,954 |
NL stockholders' equity: | ||
Common stock | 6,090 | 6,089 |
Additional paid-in capital | 301,139 | 300,866 |
Retained earnings | 222,421 | 220,104 |
Accumulated other comprehensive loss | (237,507) | (191,737) |
Total NL stockholders' equity | 292,143 | 335,322 |
Noncontrolling interest in subsidiary | 19,177 | 17,756 |
Total equity | 311,320 | 353,078 |
Total liabilities and equity | 569,959 | 551,616 |
Commitments and contingencies (Note 14) |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 30,029 | $ 26,993 | $ 90,827 | $ 86,943 |
Cost of sales | 20,433 | 18,795 | 60,494 | 59,552 |
Gross margin | 9,596 | 8,198 | 30,333 | 27,391 |
Selling, general and administrative expense | 5,075 | 4,829 | 15,455 | 14,895 |
Other operating income (expense): | ||||
Insurance recoveries | 526 | 103 | 889 | 219 |
Other income, net | 18 | 140 | 645 | 140 |
Litigation settlement expense, net | (62,000) | |||
Corporate expense | (1,583) | (2,575) | (14,352) | (11,130) |
Income (loss) from operations | 3,482 | 1,037 | (59,940) | 1,725 |
Equity in earnings of Kronos Worldwide, Inc. | 9,905 | 22,437 | 55,029 | 93,357 |
Other income (expense): | ||||
Marketable equity securities | (35,645) | (55,911) | ||
Other components of net periodic pension and OPEB cost | (99) | (177) | (297) | (531) |
Interest and dividend income | 1,336 | 977 | 3,630 | 2,554 |
Interest expense | (9) | (8) | (25) | (22) |
Income (loss) before income taxes | (21,030) | 24,266 | (57,514) | 97,083 |
Income tax expense (benefit) | (6,158) | 6,466 | (15,416) | 28,923 |
Net income (loss) | (14,872) | 17,800 | (42,098) | 68,160 |
Noncontrolling interest in net income of subsidiary | 514 | 328 | 1,654 | 1,171 |
Net income (loss) attributable to NL stockholders | $ (15,386) | $ 17,472 | $ (43,752) | $ 66,989 |
Amounts attributable to NL stockholders: | ||||
Basic and diluted net income (loss) per share | $ (0.32) | $ 0.36 | $ (0.90) | $ 1.38 |
Weighted average shares used in the calculation of net income per share | 48,727 | 48,715 | 48,721 | 48,710 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net income (loss) | $ (14,872) | $ 17,800 | $ (42,098) | $ 68,160 |
Other comprehensive income (loss), net of tax: | ||||
Marketable securities | (5,260) | (9,851) | ||
Currency translation | 1,103 | 5,908 | (2,414) | 10,604 |
Interest rate swap | 362 | 390 | ||
Total other comprehensive income, net | 1,997 | 1,699 | 299 | 2,996 |
Comprehensive income (loss) | (12,875) | 19,499 | (41,799) | 71,156 |
Comprehensive income attributable to noncontrolling interest | 514 | 328 | 1,654 | 1,171 |
Comprehensive income (loss) attributable to NL stockholders | (13,389) | 19,171 | (43,453) | 69,985 |
Defined Benefit Pension Plans | ||||
Other comprehensive income (loss), net of tax: | ||||
Defined benefit pension plans/ Other postretirement benefit plans | 959 | 738 | 2,916 | 1,998 |
OPEB | ||||
Other comprehensive income (loss), net of tax: | ||||
Defined benefit pension plans/ Other postretirement benefit plans | $ (65) | $ (49) | $ (203) | $ (145) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF EQUITY - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Noncontrolling interest in subsidiary |
Beginning Balance at Dec. 31, 2017 | $ 353,078 | $ 6,089 | $ 300,866 | $ 220,104 | $ (191,737) | $ 17,756 |
Change in accounting principle - ASU 2016-01 at Dec. 31, 2017 | 46,069 | (46,069) | ||||
Balance at January 1, 2018, as adjusted at Dec. 31, 2017 | 353,078 | 6,089 | 300,866 | 266,173 | (237,806) | 17,756 |
Net income (loss) | (42,098) | (43,752) | 1,654 | |||
Other comprehensive income, net of tax | 299 | 299 | ||||
Issuance of NL common stock | 120 | 1 | 119 | |||
Dividends | (251) | (251) | ||||
Other, net | 172 | 154 | 18 | |||
Ending Balance at Sep. 30, 2018 | $ 311,320 | $ 6,090 | $ 301,139 | $ 222,421 | $ (237,507) | $ 19,177 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (42,098) | $ 68,160 |
Depreciation and amortization | 2,609 | 2,794 |
Deferred income taxes | (16,624) | 27,924 |
Equity in earnings of Kronos Worldwide, Inc. | (55,029) | (93,357) |
Dividends received from Kronos Worldwide, Inc. | 17,961 | 15,849 |
Cash funding of benefit plans in excess of net benefit plan expense | (2,074) | (689) |
Marketable equity securities | 55,911 | |
Other, net | 426 | 348 |
Change in assets and liabilities: | ||
Accounts and other receivables, net | (18,203) | (1,436) |
Inventories, net | (1,935) | (475) |
Prepaid expenses and other | 110 | 70 |
Accounts payable and accrued liabilities | 62,025 | (466) |
Income taxes | 11 | 2 |
Accounts with affiliates | 2,939 | (2,062) |
Accrued environmental remediation and related costs | (428) | (1,392) |
Other noncurrent assets and liabilities, net | 16,698 | (54) |
Net cash provided by operating activities | 22,299 | 15,216 |
Cash flows from investing activities: | ||
Capital expenditures | (2,043) | (2,152) |
Promissory notes receivable from affiliate: | ||
Loans | (39,000) | (49,700) |
Collections | 44,200 | 40,400 |
Other, net | 225 | 4 |
Net cash provided by (used in) investing activities | 3,382 | (11,448) |
Cash flows from financing activities - | ||
Distributions to noncontrolling interests in subsidiary | (251) | (250) |
Cash and cash equivalents and restricted cash and cash equivalents - net change from: | ||
Operating, investing and financing activities | 25,430 | 3,518 |
Balance at beginning of period | 102,941 | 98,242 |
Balance at end of period | 128,371 | 101,760 |
Supplemental disclosure - cash paid (received) for: | ||
Interest | 25 | 22 |
Income taxes, net | $ (1,740) | $ 3,085 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and basis of presentation | Note 1 – Organization and basis of presentation: Organization – At September 30, 2018, Valhi, Inc. (NYSE: VHI) held approximately 83% of our outstanding common stock and a wholly-owned subsidiary of Contran Corporation held approximately 92% of Valhi’s outstanding common stock. 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, Valhi and us. Basis of presentation – Consolidated in this Quarterly Report are the results of our majority-owned subsidiary, CompX International Inc. We also own 30% of Kronos Worldwide, Inc. (Kronos). CompX (NYSE American: CIX) and Kronos (NYSE: KRO); each file periodic reports with the Securities and Exchange Commission (SEC). The unaudited Condensed Consolidated Financial Statements contained in this Quarterly Report have been prepared on the same basis as the audited Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2017 that we filed with the SEC on March 12, 2018 (the 2017 Annual Report). In our opinion, we have made all necessary adjustments (which include only normal recurring adjustments) in order to state fairly, in all material respects, our consolidated financial position, results of operations and cash flows as of the dates and for the periods presented. We have condensed the Consolidated Balance Sheet at December 31, 2017 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, 2017) normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Our results of operations for the interim periods ended September 30, 2018 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 2017 Consolidated Financial Statements contained in our 2017 Annual Report. Unless otherwise indicated, references in this report to “NL,” “we,” “us” or “our” refer to NL Industries, Inc. and its subsidiaries and affiliate, Kronos, taken as a whole. |
Accounts and Other Receivables,
Accounts and Other Receivables, Net | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Accounts and other receivables, net | Note 2 – December 31, September 30, 2017 2018 (In thousands) Trade receivables - CompX $ 10,516 $ 13,416 Accrued insurance recoveries 145 15,427 Other receivables 79 96 Allowance for doubtful accounts (70 ) (70 ) Total $ 10,670 $ 28,869 Accrued insurance recoveries are discussed in Note 14. |
Inventories, Net
Inventories, Net | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Note 3 – Inventories, net: December 31, September 30, 2017 2018 (In thousands) Raw materials $ 2,730 $ 3,001 Work in process 9,836 10,864 Finished products 2,816 3,294 Total $ 15,382 $ 17,159 |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable securities | Note 4 – Our marketable securities consist of investments in the publicly-traded shares of our immediate parent company Valhi, Inc. Prior to 2018, any unrealized gains or losses on the securities were recognized through other comprehensive income, net of deferred income taxes. Beginning on January 1, 2018 with the adoption of Accounting Standards Update (“ASU”) 2016-01, our marketable equity securities will continue to be carried at fair value as noted below, but any unrealized gains or losses on the securities are now recognized as a component of other income included in Marketable equity securities on our Condensed Consolidated Statements of Operations. See Note 16. Fair value measurement level Market value Cost basis Unrealized gain (In thousands) December 31, 2017 Valhi common stock 1 $ 88,681 $ 24,347 $ 64,334 September 30, 2018 Valhi common stock 1 $ 32,770 $ 24,347 $ 8,423 At December 31, 2017 and September 30, 2018, we held approximately 14.4 million shares of common stock of Valhi. See Note 1. Our shares of Valhi common stock are carried at fair value based on quoted market prices, representing a Level 1 input within the fair value hierarchy. At December 31, 2017 and September 30, 2018, the quoted per share market price of Valhi common stock was $6.17 and $2.28, respectively. During the first nine months of 2018 we recognized a pre-tax loss of $55.9 million related to the aggregate net change in market value of our marketable equity securities during such period. The Valhi common stock we own is subject to the restrictions on resale pursuant to certain provisions of the SEC Rule 144. In addition, as a majority-owned subsidiary of Valhi, we cannot vote our shares of Valhi common stock under Delaware General Corporation Law, but we do receive dividends from Valhi on these shares, when declared and paid. |
Investment in Kronos Worldwide,
Investment in Kronos Worldwide, Inc. | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investment in Kronos Worldwide, Inc. | Note 5 – Investment in Kronos Worldwide, Inc.: At December 31, 2017 and September 30, 2018, we owned approximately 35.2 million shares of Kronos common stock. At September 30, 2018, the quoted market price of Kronos’ common stock was $16.25 per share, or an aggregate market value of $572.3 million. At December 31, 2017, the quoted market price was $25.77 per share, or an aggregate market value of $907.6 million. The change in the carrying value of our investment in Kronos during the first nine months of 2018 is summarized below. Amount (In millions) Balance at the beginning of the period $ 229.5 Equity in earnings of Kronos 55.0 Dividends received from Kronos (17.9 ) Equity in Kronos' other comprehensive income: Currency translation (3.0 ) Defined benefit pension plans 2.2 Balance at the end of the period $ 265.8 Selected financial information of Kronos is summarized below: December 31, September 30, 2017 2018 (In millions) Current assets $ 1,062.5 $ 1,238.4 Property and equipment, net 506.4 491.9 Investment in TiO 2 86.5 79.7 Other noncurrent assets 169.0 124.9 Total assets $ 1,824.4 $ 1,934.9 Current liabilities $ 231.5 $ 249.6 Long-term debt 473.8 465.2 Accrued pension and postretirement benefits 261.9 255.0 Other noncurrent liabilities 102.9 91.7 Stockholders' equity 754.3 873.4 Total liabilities and stockholders' equity $ 1,824.4 $ 1,934.9 Three months ended Nine months ended September 30, September 30, 2017 2018 2017 2018 (In millions) Net sales $ 464.5 $ 410.3 $ 1,275.7 $ 1,312.5 Cost of sales 309.5 291.2 882.3 846.8 Income from operations 96.1 58.1 226.8 285.5 Income tax expense (benefit) 6.1 14.1 (114.0 ) 75.5 Net income 73.8 32.6 307.1 181.0 |
Other Noncurrent Assets, Net
Other Noncurrent Assets, Net | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other noncurrent assets, net | Note 6 – December 31, September 30, 2017 2018 (In thousands) Restricted cash $ 1,255 $ 1,089 Pension asset 2,593 2,847 Other 995 1,201 Total $ 4,843 $ 5,137 |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Payables And Accruals [Abstract] | |
Accrued and other current liabilities | Note 7 – December 31, September 30, 2017 2018 (In thousands) Employee benefits $ 8,269 $ 7,955 Litigation settlement - 60,000 Other 1,438 2,095 Total $ 9,707 $ 70,050 See Note 14 for a discussion of the accrued litigation settlement. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-term debt | Note 8 – During the first nine months of 2018, our wholly owned subsidiary, NLKW Holding, LLC had no borrowings or repayments under its $50 million secured revolving credit facility with Valhi. At September 30, 2018, we had outstanding borrowings of $0.5 million under such facility, and the remaining $49.5 million was available for future borrowing under this facility. Outstanding borrowings under such credit facility bear interest at the prime rate plus 1.875% per annum, and the average interest rate as of and for the nine months ended September 30, 2018 was 7.125% and 6.64%, respectively. We are in compliance with all of the covenants contained in such facility at September 30, 2018. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee benefit plans | Note 9 – The components of net periodic defined benefit pension cost are presented in the table below. Three months ended Nine months ended September 30, September 30, 2017 2018 2017 2018 (In thousands) Interest cost $ 506 $ 372 $ 1,518 $ 1,116 Expected return on plan assets (689 ) (590 ) (2,067 ) (1,770 ) Recognized actuarial losses 394 365 1,182 1,095 Total $ 211 $ 147 $ 633 $ 441 The components of net periodic postretirement benefits other than pension (OPEB) income are presented in the table below. Three months ended Nine months ended September 30, September 30, 2017 2018 2017 2018 (In thousands) Interest cost $ 20 $ 15 $ 60 $ 45 Recognized actuarial gains (54 ) (63 ) (162 ) (189 ) Total $ (34 ) $ (48 ) $ (102 ) $ (144 ) Upon the adoption of ASU 2017-07, Compensation - Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost We currently expect our 2018 contributions to our defined benefit pension plans and other postretirement plans to be approximately $3.4 million. |
Other Noncurrent Liabilities
Other Noncurrent Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other noncurrent liabilities | Note 10 – December 31, September 30, 2017 2018 (In thousands) Reserve for uncertain tax positions $ 7,312 $ 7,312 Insurance claims and expenses 620 674 Litigation settlement - 17,000 Other 560 410 Total $ 8,492 $ 25,396 See Note 14 for a discussion of the accrued litigation settlement. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 11 – Revenue Recognition Our sales are conducted through our majority-owned subsidiary CompX and involve single performance obligations to ship our products pursuant to customer purchase orders. In some cases, the purchase order is supported by an underlying master sales agreement, but the purchase order acceptance generally evidences the contract with our customer by specifying the key terms of product and quantity ordered, price and delivery and payment terms. Effective January 1, 2018 with the adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), Revenue is recorded in an amount that reflects the net consideration we expect to receive in exchange for our products. Prices for our products are based on terms specified in published list prices and purchase orders, which generally do not include financing components, noncash consideration or consideration paid to our customers. As our standard payment terms are less than one year, we have elected the practical expedient under ASC 606 and we have not assessed whether a contract has a significant financing component. We state sales net of price, early payment and distributor discounts as well as volume rebates (collectively, variable consideration). Variable consideration, to the extent present, is not material and is recognized as the amount to which we are most-likely to be entitled, using all information (historical, current and forecasted) that is reasonably available to us, and only to the extent that a significant reversal in the amount of the cumulative revenue recognized is not probable of occurring in a future period. Differences, if any, between estimates of the amount of variable consideration to which we will be entitled and the actual amount of such variable consideration have not been material in the past. We report any tax assessed by a governmental authority that we collect from our customers that is both imposed on and concurrent with our revenue-producing activities (such as sales, use, value added and excise taxes) on a net basis (meaning we do not recognize these taxes either in our revenues or in our costs and expenses). Frequently, we receive orders for products to be delivered over dates that may extend across reporting periods. We invoice for each delivery upon shipment and recognize revenue for each distinct shipment when all sales recognition criteria for that shipment have been satisfied. As scheduled delivery dates for these orders are within a one year period, under the optional exemption provided by ASC 606, we do not disclose sales allocated to future shipments of partially completed contracts. The following table disaggregates our net sales by reporting unit, which are the categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors (as required by ASC 606). Three months ended Nine months ended September 30, September 30, 2017 2018 2017 2018 (In thousands) Net Sales: Security Products $ 22,854 $ 24,541 $ 74,903 $ 75,845 Marine Components 4,139 5,488 12,040 14,982 Total $ 26,993 $ 30,029 $ 86,943 $ 90,827 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Note 12 – Three months ended Nine months ended September 30, September 30, 2017 2018 2017 2018 (In millions) Expected tax expense (benefit), at U.S. federal statutory income tax rate of 35% in 2017 and 21% in 2018 $ 8.5 $ (4.4 ) $ 34.0 $ (12.1 ) Rate differences on equity in earnings of Kronos (2.1 ) (1.9 ) (5.0 ) (4.3 ) Nontaxable income (.1 ) - (.3 ) (.2 ) U.S. state income taxes and other, net .2 .2 .2 1.2 Income tax expense (benefit) $ 6.5 $ (6.1 ) $ 28.9 $ (15.4 ) Comprehensive provision for income taxes (benefit) allocable to: Net income (loss) $ 6.5 $ (6.1 ) $ 28.9 $ (15.4 ) Other comprehensive income (loss): Marketable securities (2.8 ) - (5.3 ) - Currency translation 3.1 .3 5.7 (.6 ) Interest rate swap .2 - .2 - Pension plans .4 .3 1.1 .8 OPEB plans (.1 ) (.1 ) (.1 ) (.1 ) Total $ 7.3 $ (5.6 ) $ 30.5 $ (15.3 ) In accordance with GAAP, we recognize deferred income taxes on our undistributed equity in earnings (losses) of Kronos. Because we and Kronos are part of the same U.S. federal income tax group, any dividends we receive from Kronos are nontaxable to us. Accordingly, we do not recognize and we are not required to pay income taxes on dividends from Kronos. We received aggregate dividends from Kronos of $15.8 million in the first nine months of 2017 and $18.0 million in the first nine months of 2018. The amounts shown in the above table of our income tax rate reconciliation for rate differences on equity in earnings of Kronos represents the net tax (benefit) associated with such non-taxability of the dividends we receive from Kronos, as it relates to the amount of deferred income taxes we recognize on our undistributed equity in earnings (losses) of Kronos and 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. As discussed in the 2017 Annual Report, on December 22, 2017, H.R.1, formally known as the “Tax Cuts and Jobs Act” (“2017 Tax Act”) was enacted into law. This new tax legislation among other changes, (i) reduced the U.S. Federal corporate income tax rate from 35% to 21% effective January 1, 2018; (ii) eliminated the domestic production activities deduction beginning in 2018; and (iii) allows for the expensing of certain capital expenditures. Following the enactment of the 2017 Tax Act, the Securities and Exchange Commission issued Staff Accounting Bulletin (SAB) 118 to provide guidance on the accounting and reporting impacts of the 2017 Tax Act. SAB 118 states that companies should account for changes related to the 2017 Tax Act in the period of enactment if all information is available and the accounting can be completed. In situations where companies do not have enough information to complete the accounting in the period of enactment, a company must either 1) record an estimated provisional amount if the impact of the change can be reasonably estimated; or 2) continue to apply the accounting guidance that was in effect immediately prior to the 2017 Tax Act if the impact of the change cannot be reasonably estimated. If estimated provisional amounts are recorded, SAB 118 provides a measurement period of no longer than one year during which companies should adjust those amounts as additional information becomes available in the reporting period within the measurement period in which such adjustment is determined. Under GAAP, we are required to revalue our net deferred tax liability associated with our U.S. net taxable temporary differences in the period in which the new tax legislation is enacted based on deferred tax balances as of the enactment date, to reflect the effect of such reduction in the corporate income tax rate. Other than with respect to temporary differences related to our marketable securities, and certain year-end actuarial valuations associated with our defined benefit pension and OPEB plans, our temporary differences as of December 31, 2017 were not materially different from our temporary differences as of the enactment date, accordingly revaluation of our net taxable temporary differences was based on our net deferred tax liability as of December 31, 2017 (except for our temporary differences related to our marketable securities, and certain year-end actuarial valuations associated with our defined benefit pension and OPEB plans, for which such revaluation was based on the deferred income tax asset/liability as of enactment date). Such revaluation resulted in a non-cash deferred income tax benefit of $37.5 million recognized as of December 31, 2017 in continuing operations, reducing our net deferred income tax liability. The amounts recorded as of December 31, 2017 as a result of the 2017 Tax Act represent estimates based on information currently available. We did not make any additional measurement-period adjustments to the provisional amounts recorded for this item during the first six months of 2018, as we were still waiting on additional guidance that might impact the income tax effects of the new legislation recognized at December 31, 2017. During the third quarter of 2018, in conjunction with finalizing our federal income tax return, we were able to obtain, prepare and analyze the necessary information to complete the accounting under ASC 740 related to the revaluation of our net deferred tax liability associated with our U.S. net taxable temporary differences as of December 31, 2017, which resulted in the recognition of an immaterial adjustment to the provisional amount recognized at December 31, 2017. Accordingly, we have completed our analysis related to such revaluation as of September 30, 2018. Income tax matters related to Kronos Kronos has substantial net operating loss (NOL) carryforwards in Germany (the equivalent of $652 million for Kronos’ German corporate purposes and $.5 million for German trade tax purposes at December 31, 2017) and in Belgium (the equivalent of $50 million for Kronos’ Belgian corporate tax purposes at December 31, 2017), all of which have an indefinite carryforward period. As a result, Kronos has net deferred income tax assets with respect to these two jurisdictions, primarily related to these NOL carryforwards. The German corporate tax is similar to the U.S. federal income tax, and the German trade tax is similar to the U.S. state income tax. As discussed in the 2017 Annual Report, commencing June 30, 2015, Kronos concluded that it was required to recognize a non-cash deferred income tax asset valuation allowance under the more-likely-than-not recognition criteria with respect to its German and Belgian net deferred income tax assets at such date. During the first six months of 2017, Kronos recognized an aggregate non-cash deferred income tax benefit of $12.7 million as a result of a net decrease in such deferred income tax asset valuation allowance, due to utilizing a portion of both the German and Belgian NOL during the period, including $7.7 million in the second quarter of 2017. As also discussed in the 2017 Annual Report, at June 30, 2017, Kronos concluded it had sufficient positive evidence under the more-likely-than-not recognition criteria to support reversal of the entire valuation allowance related to its German and Belgian operations. In accordance with the ASC 740-270 guidance regarding accounting for income taxes at interim dates, the amount of the valuation allowance reversed at June 30, 2017 ($149.9 million, of which $141.9 million related to Germany and $8.0 million related to Belgium) relates to Kronos’ change in judgment at that date regarding the realizability of the related deferred income tax asset as it relates to future years (i.e., 2018 and after). A change in judgment regarding the realizability of deferred tax assets as it relates to the current year is considered in determining the estimated annual effective tax rate for the year and is recognized throughout the year, including interim periods subsequent to the date of the change in judgment. Accordingly, Kronos’ income tax benefit in calendar 2017 includes an aggregate non-cash deferred income tax benefit of $186.7 million related to the reversal of the German and Belgian valuation allowance, comprised of $12.7 million recognized in the first half of 2017 (noted above) related to the utilization of a portion of both the German and Belgian NOLs during such period, $149.9 million related to the portion of the valuation allowance reversed as of June 30, 2017 and $24.1 million recognized in the second half of 2017 (including $7.8 million reversed in the third quarter) related to the utilization of a portion of both the German and Belgian NOLs during such period. Kronos’ deferred income tax asset valuation allowance increased $13.7 million in 2017 as a result of changes in currency exchange rates, which increase was recognized as part of other comprehensive income (loss). Prior to the enactment of the 2017 Tax Act, the undistributed earnings of Kronos’ European subsidiaries were deemed to be permanently reinvested (Kronos had not made a similar determination with respect to the undistributed earnings of its Canadian subsidiary). Pursuant to the Transition Tax provisions imposing a one-time repatriation tax on post-1986 undistributed earnings, Kronos recognized a provisional current income tax expense of $76.2 million in the fourth quarter of 2017. The amounts recorded as of December 31, 2017 as a result of the 2017 Tax Act represent estimates based on information currently available. Kronos elected to pay such tax over an eight year period beginning in 2018, including approximately $6.1 million which was paid in April 2018 (for the 2017 tax year) and $4.6 million which was paid in the second and third quarters of 2018 (for the 2018 tax year). Kronos did not make any measurement-period adjustments to the provisional amounts recorded for this item during the first six months of 2018 because no new information became available during the period that required an adjustment. During the third quarter of 2018, in conjunction with finalizing Kronos’ federal income tax return and based on additional information that became available (including proposed regulations issued by the IRS in August 2018 with respect to the Transition Tax), Kronos recognized a provisional income tax benefit of $1.7 million which amount is recorded as a measurement-period adjustment, reducing the provisional income tax expense of $76.2 million recognized in the fourth quarter of 2017. As a result, at September 30, 2018, taking into account the prior Transition Tax installments payments of $10.7 million (noted above), the balance of Kronos’ unpaid Transition Tax aggregates $63.8 million, which will be paid in quarterly installments over the remainder of the eight year period. Of the $63.8 million, $58.1 million is recorded as a noncurrent payable to affiliate (income taxes payable to Valhi) and $5.7 million is included with Kronos’ current payable to affiliate (income taxes payable to Valhi) classified as a current liability. The issuance of final regulations and/or additional guidance with respect to the Transition Tax may impact the amount of the Transition Tax recognized in the fourth quarter of 2017, as adjusted in the third quarter of 2018. Kronos continues to gather information and is awaiting further guidance from the state jurisdictions in which Kronos operates with respect to the Transition Tax. Kronos will complete its accounting for this item within the prescribed measurement period ending December 22, 2018, pursuant to the guidance under SAB 118, and if Kronos determines an adjustment to the provisional amount recognized at December 31, 2017 is required, Kronos will recognize such adjustment in the reporting period within the SAB 118 measurement period in which such adjustment is determined. Prior to the enactment of the 2017 Tax Act the undistributed earnings of Kronos’ European subsidiaries were deemed to be permanently reinvested (Kronos had not made a similar determination with respect to the undistributed earnings of its Canadian subsidiary). As a result of the implementation of a territorial tax system under the 2017 Tax Act, effective January 1, 2018, and the Transition Tax which in effect taxes the post-1986 undistributed earnings of Kronos’ non-U.S. subsidiaries accumulated up through December 31, 2017, Kronos determined effective December 31, 2017 that all of the post-1986 undistributed earnings of its European subsidiaries are not permanently reinvested. Accordingly, in the fourth quarter of 2017 Kronos recognized an aggregate provisional non-cash deferred income tax expense of $4.5 million based on its reasonable estimates of the U.S. state and non-U.S. income tax and withholding tax liability attributable to all of such previously-considered permanently reinvested undistributed earnings through December 31, 2017. The amounts recorded as of December 31, 2017 as a result of the 2017 Tax Act represent estimates based on information currently available. Kronos has not made any measurement-period adjustments to the provisional amounts recorded at December 31, 2017 for this item during the first nine months of 2018. However, Kronos recorded a provisional non-cash deferred income tax expense of $2.5 million for the estimated U.S. state and non-U.S. income tax and withholding tax liability attributable to the 2018 undistributed earnings of its non-U.S. subsidiaries in the first nine months of 2018, including withholding taxes related to the undistributed earnings of Kronos’s Canadian subsidiary. Kronos is continuing its review of certain other provisions under the 2017 Tax Act and waiting on further guidance, primarily from the state jurisdictions in which it operates, that may impact its determination of the aggregate temporary differences attributable to its investments in its non-U.S. subsidiaries. Kronos will complete its accounting for this item within the prescribed measurement period ending December 22, 2018, pursuant to the guidance under SAB 118, and if Kronos determines an adjustment to the provisional amount recognized at December 31, 2017 and September 30, 2018 are required, Kronos will recognize such adjustment in the reporting period within the SAB 118 measurement period in which such adjustment is determined. Under U.S. GAAP, as it relates to the new GILTI tax rules, Kronos is allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into the measurement of our deferred taxes (the “deferred method”). Kronos’ selection of an accounting policy related to the GILTI tax provisions will depend, in part, on analyzing our global income to determine whether it expects to have future U.S. inclusions in taxable income related to GILTI and, if so, what the impact is expected to be. While Kronos’ future global operations depend on a number of different factors, Kronos does expect to have future U.S. inclusions in taxable income related to GILTI. As such, Kronos has performed an analysis of GILTI’s impact on its provision and determined the impact is not material. Because the impact is not material to its tax provision, Kronos has not recorded any adjustments related to potential GILTI tax in its financial statements in the first nine months of 2018. Further, Kronos has not made a policy decision regarding whether to record deferred taxes on GILTI or record GILTI tax as a current-period expense when incurred. Kronos will complete its policy election for this item within the prescribed measurement period ending December 22, 2018, pursuant to the guidance under SAB 118 and if Kronos determines such policy election impacts its provision, it will recognize an adjustment in the reporting period within the SAB 118 measurement period in which such adjustment is determined. Similarly, Kronos has evaluated the tax impact of BEAT on its tax provision in the first nine months of 2018 and determined that the tax law has no material impact on its tax provision as it has historically not entered into international payments between related parties that are unrelated to cost of goods sold. None of Kronos 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 have been under review with the respective tax authorities since 2008 and prior to 2016, it was uncertain whether an agreement would be reached between the tax authorities and whether Kronos would agree to execute and finalize such agreements. • During the third quarter of 2017, Kronos’ Canadian subsidiary executed and finalized an Advance Pricing Agreement with the Competent Authority for Canada (the “Canada-Germany APA”) effective for tax years 2005 - 2017. Pursuant to the terms of the Canada-Germany APA, the Canadian and German tax authorities agreed to certain prior year changes to taxable income of our Canadian and German subsidiaries. As a result of such agreed-upon changes, Kronos reversed a significant portion of its reserve for uncertain tax positions and recognized a non-cash income tax benefit of $8.1 million related to such reversal in the third quarter of 2017. In addition, Kronos recognized a $2.6 million non-cash income tax benefit related to an increase in its German NOLs and a $.6 million German cash tax refund related to the Canada-Germany APA in the third quarter of 2017. • 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, Kronos recognized a net $1.4 million non-cash income tax benefit related to an APA tax settlement payment between its German and Canadian subsidiaries. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders Equity Note [Abstract] | |
Accumulated other comprehensive income (loss) | Note 13 – Changes in accumulated other comprehensive income (loss) attributable to NL stockholders, including amounts resulting from our investment in Kronos Worldwide (see Note 5), are presented in the table below. Three months ended Nine months ended September 30, September 30, 2017 2018 2017 2018 (In thousands) Accumulated other comprehensive loss, net of tax: Marketable securities: Balance at beginning of period $ 15,882 $ - $ 20,473 $ 46,069 Change in accounting principle - - - (46,069 ) Balance at beginning of period, as adjusted $ 15,882 $ - $ 20,473 $ - Other comprehensive loss - unrealized losses arising during the year (5,260 ) - (9,851 ) - Balance at end of period $ 10,622 $ - $ 10,622 $ - Currency translation: Balance at beginning of period $ (171,163 ) $ (167,984 ) $ (175,859 ) $ (164,467 ) Other comprehensive income (loss) 5,908 1,103 10,604 (2,414 ) Balance at end of period $ (165,255 ) $ (166,881 ) $ (165,255 ) $ (166,881 ) Interest rate swap: Balance at beginning of period $ (362 ) $ - $ (390 ) $ - Other comprehensive income (loss): Unrealized losses arising during the year (119 ) - (296 ) - Less reclassification adjustment for amounts included in interest expense 481 - 686 - Balance at end of period $ - $ - $ - $ - Defined benefit pension plans: Balance at beginning of period $ (75,450 ) $ (70,994 ) $ (76,710 ) $ (72,951 ) Other comprehensive income - amortization of net losses included in net periodic pension cost 738 959 1,998 2,916 Balance at end of period $ (74,712 ) $ (70,035 ) $ (74,712 ) $ (70,035 ) OPEB plans: Balance at beginning of period $ (456 ) $ (526 ) $ (360 ) $ (388 ) Other comprehensive loss - amortization of net gains included in net periodic OPEB cost (49 ) (65 ) (145 ) (203 ) Balance at end of period $ (505 ) $ (591 ) $ (505 ) $ (591 ) Total accumulated other comprehensive loss: Balance at beginning of period $ (231,549 ) $ (239,504 ) $ (232,846 ) $ (191,737 ) Change in accounting principle - - - (46,069 ) Balance at beginning of period, as adjusted $ (231,549 ) $ (239,504 ) $ (232,846 ) $ (237,806 ) Other comprehensive income 1,699 1,997 2,996 299 Balance at end of period $ (229,850 ) $ (237,507 ) $ (229,850 ) $ (237,507 ) See Note 9 for amounts related to our defined benefit pension plans and OPEB plans. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Note 14 – Commitments and contingencies: General We are involved in various environmental, contractual, product liability, patent (or intellectual property), employment and other claims and disputes incidental to our current and former businesses. At least quarterly our management discusses and evaluates the status of any pending litigation or claim to which we are a party or which has been asserted against us. The factors considered in such evaluation include, among other things, the nature of such pending cases and claims, the status of such pending cases and claims, the advice of legal counsel and our experience in similar cases and claims (if any). Based on such evaluation, we make a determination as to whether we believe (i) it is probable a loss has been incurred, and if so if the amount of such loss (or a range of loss) is reasonably estimable, or (ii) it is reasonably possible but not probable a loss has been incurred, and if so if the amount of such loss (or a range of loss) is reasonably estimable, or (iii) the probability a loss has been incurred is remote. Lead pigment litigation Our former operations included the manufacture of lead pigments for use in paint and lead-based paint. We, other former manufacturers of lead pigments for use in paint and lead-based paint (together, the “former pigment manufacturers”), and the Lead Industries Association (LIA), which discontinued business operations in 2002, have been named as defendants in various legal proceedings seeking damages for personal injury, property damage and governmental expenditures allegedly caused by the use of lead-based paints. Certain of these actions have been filed by or on behalf of states, counties, cities or their public housing authorities and school districts, and certain others have been asserted as class actions. These lawsuits seek recovery under a variety of theories, including public and private nuisance, negligent product design, negligent failure to warn, strict liability, breach of warranty, conspiracy/concert of action, aiding and abetting, enterprise liability, market share or risk contribution liability, intentional tort, fraud and misrepresentation, violations of state consumer protection statutes, supplier negligence and similar claims. The plaintiffs in these actions generally seek to impose on the defendants responsibility for lead paint abatement and health concerns associated with the use of lead-based paints, including damages for personal injury, contribution and/or indemnification for medical expenses, medical monitoring expenses and costs for educational programs. To the extent the plaintiffs seek compensatory or punitive damages in these actions, such damages are generally unspecified. In some cases, the damages are unspecified pursuant to the requirements of applicable state law. A number of cases are inactive or have been dismissed or withdrawn. Most of the remaining cases are in various pre-trial stages. Some are on appeal following dismissal or summary judgment rulings or a trial verdict in favor of either the defendants or the plaintiffs. We believe that these actions are without merit, and we intend to continue to deny all allegations of wrongdoing and liability and to defend against all actions vigorously. Other than with respect to the Santa Clara 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: • we have 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 (subject to the final outcome of the Santa Clara case discussed below), • 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 • we have 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 Under such remand ordered by the appellate court, the trial court would, 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 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 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, 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) 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. 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 appellate court has discretion whether to hear such appeal, and the time for the appellate court to determine if it will hear such appeal has not yet run. There can be no assurance that the appellate court will agree to hear such appeal, or if it agrees to hear such appeal, that it would rule in favor of us and approve the settlement agreement. We continue to believe the settlement agreement satisfies the standards for a “good faith” settlement under applicable California law. The Santa Clara case is unusual in that this is the second time that an adverse verdict in the lead pigment litigation has been entered against 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 have concluded that the likelihood of a loss in this case has reached a standard of “probable” as contemplated by ASC 450. 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 annun. 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 as deposit with the trial court by one of our former insurance carriers 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. See Notes 2, 7 and 10. Although, we and the plaintiffs believed the settlement met all requirements of applicable California law, the trial court denied our motion for approval of a good faith settlement, and there can be no assurance that appellate court will reverse that decision and approve the terms of this or any other settlement agreement between us and the plaintiffs. 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 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. 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 some 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. New cases may continue to be filed against us. We cannot assure you that we will not incur liability in the future in respect of any of the pending or possible litigation in view of the inherent uncertainties involved in court and jury rulings. In the future, if new information regarding such matters becomes available to us (such as a final, non-appealable adverse verdict against us or otherwise ultimately being found liable with respect to such matters), at that time we would consider such information in evaluating any remaining cases then-pending against us as to whether it might then have become probable we have incurred liability with respect to these matters, and whether such liability, if any, could have become reasonably estimable. The resolution of any of these cases could result in the recognition of a loss contingency accrual that could have a material adverse impact on our net income for the interim or annual period during which such liability is recognized and a material adverse impact on our consolidated financial condition and liquidity. Environmental matters and litigation Our operations are governed by various environmental laws and regulations. Certain of our businesses are and have been engaged in the handling, manufacture or use of substances or compounds that may be considered toxic or hazardous within the meaning of applicable environmental laws and regulations. As with other companies engaged in similar businesses, certain of our past and current operations and products have the potential to cause environmental or other damage. We have implemented and continue to implement various policies and programs in an effort to minimize these risks. Our policy is to maintain compliance with applicable environmental laws and regulations at all of our plants and to strive to improve environmental performance. From time to time, we may be subject to environmental regulatory enforcement under U.S. and non-U.S. statutes, the resolution of which typically involves the establishment of compliance programs. It is possible that future developments, such as stricter requirements of environmental laws and enforcement policies, could adversely affect our production, handling, use, storage, transportation, sale or disposal of such substances. We believe that all of our facilities are in substantial compliance with applicable environmental laws. Certain properties and facilities used in our former operations, including divested primary and secondary lead smelters and former mining locations, are the subject of civil litigation, administrative proceedings or investigations arising under federal and state environmental laws and common law. Additionally, in connection with past operating practices, we are currently involved as a defendant, potentially responsible party (PRP) or both, pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, as amended by the Superfund Amendments and Reauthorization Act (CERCLA), and similar state laws in various governmental and private actions associated with waste disposal sites, mining locations, and facilities that we or our predecessors, our subsidiaries or their predecessors currently or previously owned, operated or used, certain of which are on the United States Environmental Protection Agency’s (EPA) Superfund National Priorities List or similar state lists. These proceedings seek cleanup costs, damages for personal injury or property damage and/or damages for injury to natural resources. Certain of these proceedings involve claims for substantial amounts. Although we may be jointly and severally liable for these costs, in most cases we are only one of a number of PRPs who may also be jointly and severally liable, and among whom costs may be shared or allocated. In addition, we are occasionally named as a party in a number of personal injury lawsuits filed in various jurisdictions alleging claims related to environmental conditions alleged to have resulted from our operations. Obligations associated with environmental remediation and related matters are difficult to assess and estimate for numerous reasons including the: • 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. We recognize recoveries of costs from other parties, if any, as assets when their receipt is deemed probable. At December 31, 2017 we had not recognized any receivables for recoveries and at September 30, 2018, we have recognized $15.0 million of receivables for recoveries related to the lead pigment litigation in California 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. Changes in the accrued environmental remediation and related costs during the first nine months of 2018 are as follows: Amount (In thousands) Balance at the beginning of the period $ 111,909 Additions charged to expense, net 2,671 Payments, net (3,098 ) Balance at the end of the period $ 111,482 Amounts recognized in the Condensed Consolidated Balance Sheet at the end of the period: Current liability $ 17,762 Noncurrent liability 93,720 Balance at the end of the period $ 111,482 On a quarterly basis, we evaluate the potential range of our liability for environmental remediation and related costs at sites where we have been named as a PRP or defendant, including sites for which our wholly-owned environmental management subsidiary, NL Environmental Management Services, Inc. (EMS), has contractually assumed our obligations. At September 30, 2018, we had accrued approximately $111 million related to approximately 37 sites associated with remediation and related matters that we believe are at the present time and/or in their current phase reasonably estimable. The upper end of the range of reasonably possible costs to us for remediation and related matters for which we believe it is possible to estimate costs is approximately $130 million, including the amount currently accrued. These accruals have not been discounted to present value. We believe that it is not reasonably possible to estimate the range of costs for certain sites. At September 30, 2018, there were approximately 5 sites for which we are not currently able to reasonably estimate a range of costs. For these sites, generally the investigation is in the early stages, and we are unable to determine whether or not we actually had any association with the site, the nature of our responsibility for the contamination at the site, if any, and the extent of contamination at and cost to remediate the site. The timing and availability of information on these sites is dependent on events outside of our control, such as when the party alleging liability provides information to us. At certain of these previously inactive sites, we have received general and special notices of liability from the EPA and/or state agencies alleging that we, sometimes with other PRPs, are liable for past and future costs of remediating environmental contamination allegedly caused by former operations. These notifications may assert that we, along with any other alleged PRPs, are liable for past and/or future clean-up costs. As further information becomes available to us for any of these sites, which would allow us to estimate a range of costs, we would at that time adjust our accruals. Any such adjustment could result in the recognition of an accrual that would have a material effect on our consolidated financial statements, results of operations and liquidity. Insurance coverage claims We are involved in certain legal proceedings with a number of our former insurance carriers regarding the nature and extent of the carriers’ obligations to us under insurance policies with respect to certain lead pigment and asbestos lawsuits. The issue of whether insurance coverage for defense costs or indemnity or both will be found to exist for our lead pigment and asbestos litigation depends upon a variety of factors and we cannot assure you that such insurance coverage will be available. We have agreements with certain of our former insurance carriers pursuant to which the carriers reimburse us for a portion of our future lead pigment litigation defense costs, and one such carrier reimburses us for a portion of our future asbestos litigation defense costs. We are not able to determine how much we will ultimately recover from these carriers for defense costs incurred by us because of certain issues that arise regarding which defense costs qualify for reimbursement. While we continue to seek additional insurance recoveries, we do not know if we will be successful in obtaining reimbursement for either defense costs or indemnity. Accordingly, we recognize insurance recoveries in income only when receipt of the recovery is probable and we are able to reasonably estimate the amount of the recovery. For a complete discussion of certain litigation involving us and certain of our former insurance carriers, refer to our 2017 Annual Report. Other litigation We have been named as a defendant in various lawsuits in several jurisdictions, alleging personal injuries as a result of occupational exposure primarily to products manufactured by our former operations containing asbestos, silica and/or mixed dust. In addition, some plaintiffs allege exposure to asbestos from working in various facilities previously owned and/or operated by us. There are 109 of these types of cases pending, involving a total of approximately 582 plaintiffs. In addition, the claims of approximately 8,676 plaintiffs have been administratively dismissed or placed on the inactive docket in Ohio state court. We do not expect these claims will be re-opened unless the plaintiffs meet the courts’ medical criteria for asbestos-related claims. We have not accrued any amounts for this litigation because of the uncertainty of liability and inability to reasonably estimate the liability, if any. To date, we have not been adjudicated liable in any of these matters. Based on information available to us, including: • facts concerning historical operations, • the rate of new claims, • the number of claims from which we have been dismissed, and • our prior experience in the defense of these matters, we believe that the range of reasonably possible outcomes of these matters will be consistent with our historical costs (which are not material). Furthermore, we do not expect any reasonably possible outcome would involve amounts material to our consolidated financial position, results of operations or liquidity. We have sought and will continue to vigorously seek, dismissal and/or a finding of no liability from each claim. In addition, from time to time, we have received notices regarding asbestos or silica claims purporting to be brought against former subsidiaries, including notices provided to insurers with which we have entered into settlements extinguishing certain insurance policies. These insurers may seek indemnification from us. For a discussion of other legal proceedings to which we are a party, refer to our 2017 Annual Report. In addition to the litigation described above, we and our affiliates are also involved in various other environmental, contractual, product liability, patent (or intellectual property), employment and other claims and disputes incidental to present and former businesses. In certain cases, we have insurance coverage for these items, although we do not expect additional material insurance coverage for environmental matters. We currently believe the disposition of all of these various other claims and disputes, individually and in the aggregate, should not have a material adverse effect on our consolidated financial position, results of operations or liquidity beyond the accruals already provided. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial instruments and fair value measurements | Note 15 – Financial instruments and fair value measurements: See Note 4 for information on how we determine fair value of our marketable securities. The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure: December 31, 2017 September 30, 2018 Carrying Fair Carrying Fair amount value amount value (In thousands) Cash, cash equivalents and restricted cash $ 102,941 $ 102,941 $ 128,371 $ 128,371 Noncontrolling interest in CompX common stock 17,756 22,224 19,177 22,854 The fair value of our noncontrolling interest in CompX stockholders’ equity is based upon its quoted market price at each balance sheet date, which represents a Level 1 input. Due to their near-term maturities, the carrying amounts of accounts receivable and accounts payable are considered equivalent to fair value. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent accounting pronouncements | Note 16 – Adopted On January 1, 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) On January 1, 2018, we adopted ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In March 2017, the FASB issued ASU 2017-07, Compensation— Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost Pending adoption In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | Organization – At September 30, 2018, Valhi, Inc. (NYSE: VHI) held approximately 83% of our outstanding common stock and a wholly-owned subsidiary of Contran Corporation held approximately 92% of Valhi’s outstanding common stock. 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, Valhi and us. |
Basis of presentation | Basis of presentation – Consolidated in this Quarterly Report are the results of our majority-owned subsidiary, CompX International Inc. We also own 30% of Kronos Worldwide, Inc. (Kronos). CompX (NYSE American: CIX) and Kronos (NYSE: KRO); each file periodic reports with the Securities and Exchange Commission (SEC). The unaudited Condensed Consolidated Financial Statements contained in this Quarterly Report have been prepared on the same basis as the audited Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2017 that we filed with the SEC on March 12, 2018 (the 2017 Annual Report). In our opinion, we have made all necessary adjustments (which include only normal recurring adjustments) in order to state fairly, in all material respects, our consolidated financial position, results of operations and cash flows as of the dates and for the periods presented. We have condensed the Consolidated Balance Sheet at December 31, 2017 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, 2017) normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Our results of operations for the interim periods ended September 30, 2018 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 2017 Consolidated Financial Statements contained in our 2017 Annual Report. Unless otherwise indicated, references in this report to “NL,” “we,” “us” or “our” refer to NL Industries, Inc. and its subsidiaries and affiliate, Kronos, taken as a whole. |
Accounts and Other Receivable_2
Accounts and Other Receivables, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts Notes Loans and Financing Receivable | December 31, September 30, 2017 2018 (In thousands) Trade receivables - CompX $ 10,516 $ 13,416 Accrued insurance recoveries 145 15,427 Other receivables 79 96 Allowance for doubtful accounts (70 ) (70 ) Total $ 10,670 $ 28,869 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | December 31, September 30, 2017 2018 (In thousands) Raw materials $ 2,730 $ 3,001 Work in process 9,836 10,864 Finished products 2,816 3,294 Total $ 15,382 $ 17,159 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Marketable Securities | Fair value measurement level Market value Cost basis Unrealized gain (In thousands) December 31, 2017 Valhi common stock 1 $ 88,681 $ 24,347 $ 64,334 September 30, 2018 Valhi common stock 1 $ 32,770 $ 24,347 $ 8,423 |
Investment in Kronos Worldwid_2
Investment in Kronos Worldwide, Inc. (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Changes in Carrying Value of Investment | The change in the carrying value of our investment in Kronos during the first nine months of 2018 is summarized below. Amount (In millions) Balance at the beginning of the period $ 229.5 Equity in earnings of Kronos 55.0 Dividends received from Kronos (17.9 ) Equity in Kronos' other comprehensive income: Currency translation (3.0 ) Defined benefit pension plans 2.2 Balance at the end of the period $ 265.8 |
Selected Financial Information of Kronos Balance Sheet | Selected financial information of Kronos is summarized below: December 31, September 30, 2017 2018 (In millions) Current assets $ 1,062.5 $ 1,238.4 Property and equipment, net 506.4 491.9 Investment in TiO 2 86.5 79.7 Other noncurrent assets 169.0 124.9 Total assets $ 1,824.4 $ 1,934.9 Current liabilities $ 231.5 $ 249.6 Long-term debt 473.8 465.2 Accrued pension and postretirement benefits 261.9 255.0 Other noncurrent liabilities 102.9 91.7 Stockholders' equity 754.3 873.4 Total liabilities and stockholders' equity $ 1,824.4 $ 1,934.9 |
Selected Financial Information of Kronos Income Statement | Three months ended Nine months ended September 30, September 30, 2017 2018 2017 2018 (In millions) Net sales $ 464.5 $ 410.3 $ 1,275.7 $ 1,312.5 Cost of sales 309.5 291.2 882.3 846.8 Income from operations 96.1 58.1 226.8 285.5 Income tax expense (benefit) 6.1 14.1 (114.0 ) 75.5 Net income 73.8 32.6 307.1 181.0 |
Other Noncurrent Assets, Net (T
Other Noncurrent Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Summary of Other Noncurrent Assets | December 31, September 30, 2017 2018 (In thousands) Restricted cash $ 1,255 $ 1,089 Pension asset 2,593 2,847 Other 995 1,201 Total $ 4,843 $ 5,137 |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued and Other Current Liabilities | December 31, September 30, 2017 2018 (In thousands) Employee benefits $ 8,269 $ 7,955 Litigation settlement - 60,000 Other 1,438 2,095 Total $ 9,707 $ 70,050 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Defined Benefit Pension Plans | |
Components of Net Periodic Defined Benefit Cost (Income) | The components of net periodic defined benefit pension cost are presented in the table below. Three months ended Nine months ended September 30, September 30, 2017 2018 2017 2018 (In thousands) Interest cost $ 506 $ 372 $ 1,518 $ 1,116 Expected return on plan assets (689 ) (590 ) (2,067 ) (1,770 ) Recognized actuarial losses 394 365 1,182 1,095 Total $ 211 $ 147 $ 633 $ 441 |
OPEB | |
Components of Net Periodic Defined Benefit Cost (Income) | The components of net periodic postretirement benefits other than pension (OPEB) income are presented in the table below. Three months ended Nine months ended September 30, September 30, 2017 2018 2017 2018 (In thousands) Interest cost $ 20 $ 15 $ 60 $ 45 Recognized actuarial gains (54 ) (63 ) (162 ) (189 ) Total $ (34 ) $ (48 ) $ (102 ) $ (144 ) |
Other Noncurrent Liabilities (T
Other Noncurrent Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Noncurrent Liabilities | December 31, September 30, 2017 2018 (In thousands) Reserve for uncertain tax positions $ 7,312 $ 7,312 Insurance claims and expenses 620 674 Litigation settlement - 17,000 Other 560 410 Total $ 8,492 $ 25,396 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Disaggregates Net Sales By Reporting Unit | The following table disaggregates our net sales by reporting unit, which are the categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors (as required by ASC 606). Three months ended Nine months ended September 30, September 30, 2017 2018 2017 2018 (In thousands) Net Sales: Security Products $ 22,854 $ 24,541 $ 74,903 $ 75,845 Marine Components 4,139 5,488 12,040 14,982 Total $ 26,993 $ 30,029 $ 86,943 $ 90,827 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Component of Income Taxes | Three months ended Nine months ended September 30, September 30, 2017 2018 2017 2018 (In millions) Expected tax expense (benefit), at U.S. federal statutory income tax rate of 35% in 2017 and 21% in 2018 $ 8.5 $ (4.4 ) $ 34.0 $ (12.1 ) Rate differences on equity in earnings of Kronos (2.1 ) (1.9 ) (5.0 ) (4.3 ) Nontaxable income (.1 ) - (.3 ) (.2 ) U.S. state income taxes and other, net .2 .2 .2 1.2 Income tax expense (benefit) $ 6.5 $ (6.1 ) $ 28.9 $ (15.4 ) Comprehensive provision for income taxes (benefit) allocable to: Net income (loss) $ 6.5 $ (6.1 ) $ 28.9 $ (15.4 ) Other comprehensive income (loss): Marketable securities (2.8 ) - (5.3 ) - Currency translation 3.1 .3 5.7 (.6 ) Interest rate swap .2 - .2 - Pension plans .4 .3 1.1 .8 OPEB plans (.1 ) (.1 ) (.1 ) (.1 ) Total $ 7.3 $ (5.6 ) $ 30.5 $ (15.3 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders Equity Note [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) attributable to NL stockholders, including amounts resulting from our investment in Kronos Worldwide (see Note 5), are presented in the table below. Three months ended Nine months ended September 30, September 30, 2017 2018 2017 2018 (In thousands) Accumulated other comprehensive loss, net of tax: Marketable securities: Balance at beginning of period $ 15,882 $ - $ 20,473 $ 46,069 Change in accounting principle - - - (46,069 ) Balance at beginning of period, as adjusted $ 15,882 $ - $ 20,473 $ - Other comprehensive loss - unrealized losses arising during the year (5,260 ) - (9,851 ) - Balance at end of period $ 10,622 $ - $ 10,622 $ - Currency translation: Balance at beginning of period $ (171,163 ) $ (167,984 ) $ (175,859 ) $ (164,467 ) Other comprehensive income (loss) 5,908 1,103 10,604 (2,414 ) Balance at end of period $ (165,255 ) $ (166,881 ) $ (165,255 ) $ (166,881 ) Interest rate swap: Balance at beginning of period $ (362 ) $ - $ (390 ) $ - Other comprehensive income (loss): Unrealized losses arising during the year (119 ) - (296 ) - Less reclassification adjustment for amounts included in interest expense 481 - 686 - Balance at end of period $ - $ - $ - $ - Defined benefit pension plans: Balance at beginning of period $ (75,450 ) $ (70,994 ) $ (76,710 ) $ (72,951 ) Other comprehensive income - amortization of net losses included in net periodic pension cost 738 959 1,998 2,916 Balance at end of period $ (74,712 ) $ (70,035 ) $ (74,712 ) $ (70,035 ) OPEB plans: Balance at beginning of period $ (456 ) $ (526 ) $ (360 ) $ (388 ) Other comprehensive loss - amortization of net gains included in net periodic OPEB cost (49 ) (65 ) (145 ) (203 ) Balance at end of period $ (505 ) $ (591 ) $ (505 ) $ (591 ) Total accumulated other comprehensive loss: Balance at beginning of period $ (231,549 ) $ (239,504 ) $ (232,846 ) $ (191,737 ) Change in accounting principle - - - (46,069 ) Balance at beginning of period, as adjusted $ (231,549 ) $ (239,504 ) $ (232,846 ) $ (237,806 ) Other comprehensive income 1,699 1,997 2,996 299 Balance at end of period $ (229,850 ) $ (237,507 ) $ (229,850 ) $ (237,507 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Changes in Accrued Environmental Remediation and Related Costs | Changes in the accrued environmental remediation and related costs during the first nine months of 2018 are as follows: Amount (In thousands) Balance at the beginning of the period $ 111,909 Additions charged to expense, net 2,671 Payments, net (3,098 ) Balance at the end of the period $ 111,482 Amounts recognized in the Condensed Consolidated Balance Sheet at the end of the period: Current liability $ 17,762 Noncurrent liability 93,720 Balance at the end of the period $ 111,482 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of 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, 2017 September 30, 2018 Carrying Fair Carrying Fair amount value amount value (In thousands) Cash, cash equivalents and restricted cash $ 102,941 $ 102,941 $ 128,371 $ 128,371 Noncontrolling interest in CompX common stock 17,756 22,224 19,177 22,854 |
Organization and Basis of Pre_3
Organization and Basis of Presentation - Additional Information (Detail) | Sep. 30, 2018 |
Kronos | |
Organization And Basis Of Presentation [Line Items] | |
Parent company ownership interest | 30.00% |
Valhi Inc | |
Organization And Basis Of Presentation [Line Items] | |
Parent company ownership interest | 83.00% |
Valhi Inc | Contran Corporation | |
Organization And Basis Of Presentation [Line Items] | |
Parent company ownership interest | 92.00% |
Accounts and Other Receivable_3
Accounts and Other Receivables, Net - Schedule of Accounts Notes Loans and Financing Receivable (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Accrued insurance recoveries | $ 15,427 | $ 145 |
Other receivables | 96 | 79 |
Total | 28,869 | 10,670 |
CompX | ||
Receivables [Abstract] | ||
Trade receivables | 13,416 | 10,516 |
Allowance for doubtful accounts | $ (70) | $ (70) |
Inventories, Net - Schedule of
Inventories, Net - Schedule of Inventories, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 3,001 | $ 2,730 |
Work in process | 10,864 | 9,836 |
Finished products | 3,294 | 2,816 |
Total | $ 17,159 | $ 15,382 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Marketable Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Market value | $ 32,770 | $ 88,681 |
Level 1 | Valhi Inc | Common stock | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Market value | 32,770 | 88,681 |
Cost basis | 24,347 | 24,347 |
Unrealized gain | $ 8,423 | $ 64,334 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Recognized pre-tax loss related to aggregate net change in market value | $ (35,645) | $ (55,911) | |
Valhi Inc | Common stock | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Number of shares owned | 14.4 | 14.4 | 14.4 |
Quoted marked price per share | $ 2.28 | $ 2.28 | $ 6.17 |
Recognized pre-tax loss related to aggregate net change in market value | $ 55,900 |
Investment in Kronos Worldwid_3
Investment in Kronos Worldwide, Inc. - Additional Information (Detail) - Kronos - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule Of Equity Method Investments [Line Items] | ||
Number of shares owned | 35.2 | 35.2 |
Aggregate market value | $ 572.3 | $ 907.6 |
Quoted market price per share | $ 16.25 | $ 25.77 |
Investment in Kronos Worldwid_4
Investment in Kronos Worldwide, Inc. - Changes in Carrying Value of Investment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Balance at the beginning of the period | $ 229,543 | |||
Equity in earnings of Kronos | $ 9,905 | $ 22,437 | 55,029 | $ 93,357 |
Dividends received from Kronos | (17,961) | $ (15,849) | ||
Equity in Kronos' other comprehensive income: | ||||
Balance at the end of the period | 265,776 | 265,776 | ||
Kronos | ||||
Balance at the beginning of the period | 229,500 | |||
Equity in earnings of Kronos | 55,000 | |||
Dividends received from Kronos | (17,900) | |||
Equity in Kronos' other comprehensive income: | ||||
Currency translation | (3,000) | |||
Balance at the end of the period | $ 265,800 | 265,800 | ||
Kronos | Defined Benefit Pension Plans | ||||
Equity in Kronos' other comprehensive income: | ||||
Defined benefit pension plans | $ 2,200 |
Investment in Kronos Worldwid_5
Investment in Kronos Worldwide, Inc. - Selected Financial Information of Kronos Balance Sheet (Detail) - Kronos - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule Of Equity Method Investments [Line Items] | ||
Current assets | $ 1,238.4 | $ 1,062.5 |
Property and equipment, net | 491.9 | 506.4 |
Investment in TiO2 joint venture | 79.7 | 86.5 |
Other noncurrent assets | 124.9 | 169 |
Total assets | 1,934.9 | 1,824.4 |
Current liabilities | 249.6 | 231.5 |
Long-term debt | 465.2 | 473.8 |
Accrued pension and postretirement benefits | 255 | 261.9 |
Other noncurrent liabilities | 91.7 | 102.9 |
Stockholders' equity | 873.4 | 754.3 |
Total liabilities and stockholders' equity | $ 1,934.9 | $ 1,824.4 |
Investment in Kronos Worldwid_6
Investment in Kronos Worldwide, Inc. - Selected Financial Information of Kronos Income Statement (Detail) - Kronos - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule Of Equity Method Investments [Line Items] | ||||
Net sales | $ 410.3 | $ 464.5 | $ 1,312.5 | $ 1,275.7 |
Cost of sales | 291.2 | 309.5 | 846.8 | 882.3 |
Income from operations | 58.1 | 96.1 | 285.5 | 226.8 |
Income tax expense (benefit) | 14.1 | 6.1 | 75.5 | (114) |
Net income | $ 32.6 | $ 73.8 | $ 181 | $ 307.1 |
Other Noncurrent Assets, Net -
Other Noncurrent Assets, Net - Summary of Other Noncurrent Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Restricted cash | $ 1,089 | $ 1,255 |
Pension asset | 2,847 | 2,593 |
Other | 1,201 | 995 |
Total | $ 5,137 | $ 4,843 |
Accrued and Other Current Lia_3
Accrued and Other Current Liabilities - Schedule of Accrued and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Payables And Accruals [Abstract] | ||
Employee benefits | $ 7,955 | $ 8,269 |
Litigation settlement | 60,000 | |
Other | 2,095 | 1,438 |
Total | $ 70,050 | $ 9,707 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - NLKW Holding, LLC - Valhi - Valhi Credit Facility | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Debt Instrument [Line Items] | |
Maximum borrowing under credit facility | $ 50,000,000 |
Borrowings or repayments under revolving credit facility | 0 |
Outstanding borrowing | 500,000 |
Remaining future borrowing under revolving credit facility | $ 49,500,000 |
Debt instrument, description of variable rate basis | prime rate |
Variable rate basis spread above reference rate | 1.875% |
Debt instrument average interest rate | 7.125% |
Debt instrument average interest rate, during period | 6.64% |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Defined Benefit Cost (Income) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 372 | $ 506 | $ 1,116 | $ 1,518 |
Expected return on plan assets | (590) | (689) | (1,770) | (2,067) |
Recognized actuarial (gains) losses | 365 | 394 | 1,095 | 1,182 |
Total | 147 | 211 | 441 | 633 |
OPEB | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 15 | 20 | 45 | 60 |
Recognized actuarial (gains) losses | (63) | (54) | (189) | (162) |
Total | $ (48) | $ (34) | $ (144) | $ (102) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) $ in Millions | Sep. 30, 2018USD ($) |
Defined Benefit Pension Plans and Other Postretirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution during 2017 | $ 3.4 |
Other Noncurrent Liabilities -
Other Noncurrent Liabilities - Summary of Other Noncurrent Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Reserve for uncertain tax positions | $ 7,312 | $ 7,312 |
Insurance claims and expenses | 674 | 620 |
Litigation settlement | 17,000 | |
Other | 410 | 560 |
Total | $ 25,396 | $ 8,492 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregates Net Sales By Reporting Unit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | $ 30,029 | $ 26,993 | $ 90,827 | $ 86,943 |
Security Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 24,541 | 22,854 | 75,845 | 74,903 |
Marine Components | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | $ 5,488 | $ 4,139 | $ 14,982 | $ 12,040 |
Income Taxes - Component of Inc
Income Taxes - Component of Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Expected tax expense (benefit), at U.S. federal statutory income tax rate of 35% in 2017 and 21% in 2018 | $ (4,400) | $ 8,500 | $ (12,100) | $ 34,000 |
Rate differences on equity in earnings of Kronos | (1,900) | (2,100) | (4,300) | (5,000) |
Nontaxable income | (100) | (200) | (300) | |
U.S. state income taxes and other, net | 200 | 200 | 1,200 | 200 |
Income tax expense (benefit) | $ (6,158) | $ 6,466 | $ (15,416) | $ 28,923 |
Income Taxes - Components of Co
Income Taxes - Components of Comprehensive Provision for Income Taxes Allocation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Comprehensive provision for income taxes (benefit) allocable to: | ||||
Net income (loss) | $ (6,158) | $ 6,466 | $ (15,416) | $ 28,923 |
Other comprehensive income (loss): | ||||
Marketable securities | (2,800) | (5,300) | ||
Currency translation | 300 | 3,100 | (600) | 5,700 |
Interest rate swap | 200 | 200 | ||
Total | (5,600) | 7,300 | (15,300) | 30,500 |
Defined Benefit Pension Plans | ||||
Other comprehensive income (loss): | ||||
Defined benefit plans | 300 | 400 | 800 | 1,100 |
OPEB | ||||
Other comprehensive income (loss): | ||||
Defined benefit plans | $ (100) | $ (100) | $ (100) | $ (100) |
Income Taxes - Component of I_2
Income Taxes - Component of Income Taxes (Parenthetical) (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
U.S. federal statutory income tax rate | 21.00% | 35.00% | 21.00% | 35.00% | 35.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Apr. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2017 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Income Tax Disclosure [Line Items] | |||||||||||||
Dividends received from Kronos Worldwide, Inc. | $ 17,961 | $ 15,849 | |||||||||||
U.S. federal corporate income tax rate | 21.00% | 35.00% | 21.00% | 35.00% | 35.00% | ||||||||
Deferred income tax benefit from change in enacted tax rate | $ (37,500) | ||||||||||||
Income tax expense (benefit) | $ (6,158) | $ 6,466 | $ (15,416) | $ 28,923 | |||||||||
Current payable to affiliate | 1,600 | $ 429 | $ 429 | 1,600 | 429 | ||||||||
Kronos | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Dividends received from Kronos Worldwide, Inc. | 18,000 | $ 15,800 | |||||||||||
Kronos | Expected Future Periods Net Operating Loss Utilization | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Increase (decrease) in non-cash deferred income tax asset valuation allowance | $ (149,900) | ||||||||||||
Kronos | Effect of Currency Exchange Rates | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Increase (decrease) in non-cash deferred income tax asset valuation allowance | 13,700 | ||||||||||||
Kronos | German | Expected Future Periods Net Operating Loss Utilization | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Increase (decrease) in non-cash deferred income tax asset valuation allowance | (141,900) | ||||||||||||
Kronos | German | Corporate Tax Purposes | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Net operating loss carryforwards | 652,000 | 652,000 | 652,000 | ||||||||||
Kronos | German | Trade Tax Purposes | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Net operating loss carryforwards | 500 | 500 | 500 | ||||||||||
Kronos | Belgium | Expected Future Periods Net Operating Loss Utilization | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Increase (decrease) in non-cash deferred income tax asset valuation allowance | $ (8,000) | ||||||||||||
Kronos | Belgium | Corporate Tax Purposes | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Net operating loss carryforwards | 50,000 | 50,000 | 50,000 | ||||||||||
Kronos | Non-US | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Increase (decrease) in non-cash deferred income tax asset valuation allowance | $ (186,700) | ||||||||||||
Kronos | Non-US | Current Periods Net Operating Loss Utilization | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Increase (decrease) in non-cash deferred income tax asset valuation allowance | (7,800) | $ (7,700) | $ (24,100) | $ (12,700) | |||||||||
Kronos | European and Candadian Subsidiaries | Undistributed Earnings Previously Considered to be Permanently Reinvested | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Aggregate provisional non-cash deferred income tax expense (benefit) | 4,500 | $ 2,500 | |||||||||||
Kronos European Subsidiaries | Valhi | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Income tax liability payable period | 8 years | ||||||||||||
Kronos European Subsidiaries | Valhi | Income Tax Payable | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Payable to affiliate | 63,800 | $ 63,800 | |||||||||||
Noncurrent payable to affiliate | 58,100 | 58,100 | |||||||||||
Current payable to affiliate | 5,700 | 5,700 | |||||||||||
Kronos European Subsidiaries | Transition Tax | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Currently payable (receivable) | $ 76,200 | ||||||||||||
Current income tax expense payment period | 8 years | ||||||||||||
Income tax expense (benefit) | 1,700 | ||||||||||||
Prior tax installments payments | 10,700 | $ 10,700 | |||||||||||
Kronos European Subsidiaries | Transition Tax | 2017 Tax Year | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Current income tax expense payable in next fiscal year | $ 6,100 | ||||||||||||
Kronos European Subsidiaries | Transition Tax | 2018 Tax Year | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Current income tax expense payable in next fiscal year | $ 4,600 | $ 4,600 | |||||||||||
Kronos Canadian Subsidiary | Canada-Germany APA | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Non-cash income tax benefit | $ 8,100 | ||||||||||||
Kronos Canadian Subsidiary | Earliest Tax Year | Canada-Germany APA | Canada Revenue Agency | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Effective tax year | 2,005 | ||||||||||||
Kronos Canadian Subsidiary | Latest Tax Year | Canada-Germany APA | Canada Revenue Agency | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Effective tax year | 2,017 | ||||||||||||
Kronos Canadian Subsidiary | German | Canada-Germany APA | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Non-cash income tax benefit | $ 2,600 | ||||||||||||
Cash tax refund | $ 600 | ||||||||||||
Kronos German Subsidiary | Earliest Tax Year | Germany- Canada APA | Germany Revenue Agency | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Effective tax year | 2,005 | ||||||||||||
Kronos German Subsidiary | Latest Tax Year | Germany- Canada APA | Germany Revenue Agency | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Effective tax year | 2,017 | ||||||||||||
Kronos Canadian And German Subsidiaries | Germany- Canada APA | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Non-cash income tax benefit | $ 1,400 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | $ 335,322 | |||
Other comprehensive income (loss) | $ 1,997 | $ 1,699 | 299 | $ 2,996 |
Balance at end of period | 292,143 | 292,143 | ||
Marketable Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | 15,882 | 46,069 | 20,473 | |
Change in accounting principle - ASU 2016-01 | (46,069) | |||
Balance at beginning of period, as adjusted | 15,882 | 20,473 | ||
Other comprehensive loss - unrealized losses arising during the year | (5,260) | (9,851) | ||
Balance at end of period | 10,622 | 10,622 | ||
Currency Translation | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | (167,984) | (171,163) | (164,467) | (175,859) |
Other comprehensive income (loss) | 1,103 | 5,908 | (2,414) | 10,604 |
Balance at end of period | (166,881) | (165,255) | (166,881) | (165,255) |
Interest Rate Swap | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | (362) | (390) | ||
Unrealized gains (losses) arisingduring the year | (119) | (296) | ||
Less reclassification adjustment foramounts included in interest expense | 481 | 686 | ||
Accumulated Defined Benefit Plans Adjustment | Defined Benefit Pension Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | (70,994) | (75,450) | (72,951) | (76,710) |
Other comprehensive income (loss) | 959 | 738 | 2,916 | 1,998 |
Balance at end of period | (70,035) | (74,712) | (70,035) | (74,712) |
Accumulated Defined Benefit Plans Adjustment | OPEB | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | (526) | (456) | (388) | (360) |
Other comprehensive income (loss) | (65) | (49) | (203) | (145) |
Balance at end of period | (591) | (505) | (591) | (505) |
Accumulated other comprehensive income (loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | (239,504) | (231,549) | (191,737) | (232,846) |
Change in accounting principle - ASU 2016-01 | (46,069) | |||
Balance at beginning of period, as adjusted | (239,504) | (231,549) | (237,806) | (232,846) |
Other comprehensive income (loss) | 1,997 | 1,699 | 299 | 2,996 |
Balance at end of period | $ (237,507) | $ (229,850) | $ (237,507) | $ (229,850) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($)CasesInstallmentsite | May 31, 2018USD ($)Installment | Jan. 31, 2014USD ($) | Jun. 30, 2018USD ($)Installment | Sep. 30, 2018USD ($)CasesInstallmentsitePlaintiff | Dec. 31, 2017USD ($) | |
Commitments and Contingent Liabilities [Line Items] | ||||||
Court approved abatement fund amount for defendant appeal | $ 409,000,000 | |||||
Litigation settlement | 60,000,000 | $ 60,000,000 | ||||
Litigation settlement net present value | 17,000,000 | 17,000,000 | ||||
Accrued insurance recoveries | 15,427,000 | 15,427,000 | $ 145,000 | |||
Accrual for reasonably estimable environmental remediation and related matters | 111,482,000 | 111,482,000 | 111,909,000 | |||
Environmental Remediation Sites NL Named As PRP Or Defendant | ||||||
Commitments and Contingent Liabilities [Line Items] | ||||||
Accrual for reasonably estimable environmental remediation and related matters | $ 111,000,000 | $ 111,000,000 | ||||
Number of sites associated with remediation and related costs | site | 37 | 37 | ||||
Number of sites currently not able to reasonably estimate a range of costs | site | 5 | 5 | ||||
Environmental Remediation Litigation | ||||||
Commitments and Contingent Liabilities [Line Items] | ||||||
Recoveries receivable | $ 15,000,000 | $ 15,000,000 | $ 0 | |||
Maximum | ||||||
Commitments and Contingent Liabilities [Line Items] | ||||||
Proposed abatement fund amount by defendant | 409,000,000 | |||||
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 | 130,000,000 | $ 130,000,000 | ||||
Lead Pigment Litigation | ||||||
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 | |||||
Description of defendants | We and the other two defendants are jointly and severally liable for the abatement, 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) among the three defendants has not yet been determined. | |||||
Percentage of defendants responsible for cost of abatement | 100.00% | |||||
Litigation settlement | $ 65,000,000 | $ 62,000,000 | ||||
Litigation settlement charge upon approval of settlement terms | 45,000,000 | 45,000,000 | 45,000,000 | $ 45,000,000 | ||
Remaining litigation settlement charge | $ 20,000,000 | $ 20,000,000 | $ 20,000,000 | $ 20,000,000 | ||
Number of annual installments | Installment | 5 | 5 | 5 | 5 | ||
Litigation settlement installments payment beginning term from approval | 4 years | 4 years | 4 years | |||
Remaining litigation settlement charge due in first installment | $ 6,000,000 | |||||
Remaining litigation settlement charge due in second installment | 5,000,000 | |||||
Remaining litigation settlement charge due in third installment | 3,000,000 | |||||
Remaining litigation settlement charge due in fourth installment | 3,000,000 | |||||
Remaining litigation settlement charge due in fifth installment | $ 3,000,000 | |||||
Discounted rate for estimated present value of remaining litigation amount | 3.00% | |||||
Litigation settlement net present value | $ 17,000,000 | $ 17,000,000 | $ 17,000,000 | $ 17,000,000 | ||
Accrued insurance recoveries | $ 15,000,000 | 15,000,000 | ||||
Litigation settlement, current | 80,000,000 | |||||
California Lead Paint Litigation | ||||||
Commitments and Contingent Liabilities [Line Items] | ||||||
Amount awarded to the plaintiff | $ 1,150,000,000 | |||||
Minimum required period of abatement funds unspent to return to defendants | 4 years | |||||
Proposed abatement fund amount by plaintiff | $ 730,000,000 | |||||
Percentage of assumed homeowners participation | 100.00% | |||||
Percentage of actual likely homeowners participation rates | 100.00% | |||||
Product Liability And Occupational Exposure Litigation Claims | ||||||
Commitments and Contingent Liabilities [Line Items] | ||||||
Number of cases pending | Cases | 109 | 109 | ||||
Product Liability And Occupational Exposure Litigation Claims | Administratively Dismissed Claims | ||||||
Commitments and Contingent Liabilities [Line Items] | ||||||
Number of plaintiffs involved | Plaintiff | 8,676 | |||||
Product Liability And Occupational Exposure Litigation Claims | Pending Claims | ||||||
Commitments and Contingent Liabilities [Line Items] | ||||||
Number of plaintiffs involved | Plaintiff | 582 |
Commitments and Contingencies_2
Commitments and Contingencies - Changes in Accrued Environmental Remediation and Related Costs (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Balance at the beginning of the period | $ 111,909 | ||
Additions charged to expense, net | 2,671 | ||
Payments, net | (3,098) | ||
Balance at the end of the period | 111,482 | ||
Amounts recognized in the Condensed Consolidated Balance Sheet at the end of the period: | |||
Current liability | $ 17,762 | $ 5,302 | |
Noncurrent liability | 93,720 | 106,607 | |
Balance at the end of the period | $ 111,909 | $ 111,482 | $ 111,909 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Summary of Financial Instruments Not Carried at Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash, cash equivalents and restricted cash, Fair value | $ 128,371 | $ 102,941 |
Noncontrolling interest in subsidiary | 19,177 | 17,756 |
Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash, cash equivalents and restricted cash, Carrying amount | 128,371 | 102,941 |
Carrying Amount | CompX | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Noncontrolling interest in subsidiary | 19,177 | 17,756 |
Fair Value | CompX | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Noncontrolling interest in subsidiary | $ 22,854 | $ 22,224 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Reclassifisction of cororate expense to other components of net periodic pension and OPEB cost | $ 99 | $ 177 | $ 297 | $ 531 |
ASU 2016-01 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Reclassification of accumulated other comprehensive income related to marketable securities into beginning retained earnings | $ 46,100 | |||
ASU 2017-07 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Reclassifisction of cororate expense to other components of net periodic pension and OPEB cost | $ 200 | $ 500 |