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Marketable Securities
 9 Months Ended
Sep. 30, 2016
Investments Debt And Equity Securities [Abstract]  
Marketable Securities

Note 4 - Marketable securities:

Our marketable securities consist of investments in the publicly-traded shares of related parties: Valhi, NL and CompX International Inc.  NL owns the majority of CompX’s outstanding common stock.  All of our marketable securities are accounted for as available-for-sale securities, which are carried at fair value using quoted market prices in active markets for each marketable security, and represent a Level 1 input within the fair value hierarchy.  See Note 13.  Because we have classified all of our marketable securities as available-for-sale, any unrealized gains or losses on the securities are recognized through other comprehensive income, net of deferred income taxes.

 

 

 

Fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

measurement

 

Market

 

 

Cost

 

 

Unrealized

 

Marketable security

 

level

 

value

 

 

basis

 

 

gain (loss)

 

 

 

 

 

(In millions)

 

December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valhi common stock

 

1

 

$

2.3

 

 

$

3.2

 

 

$

(.9

)

NL and CompX common stocks

 

1

 

 

.1

 

 

 

.1

 

 

 

-

 

Total

 

 

 

$

2.4

 

 

$

3.3

 

 

$

(.9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valhi common stock

 

1

 

$

3.9

 

 

$

3.2

 

 

$

.7

 

NL and CompX common stocks

 

1

 

 

.1

 

 

 

.1

 

 

 

-

 

Total

 

 

 

$

4.0

 

 

$

3.3

 

 

$

.7

 

At December 31, 2015 and September 30, 2016, we held approximately 1.7 million shares of Valhi’s common stock.  We also held a nominal number of shares of CompX and NL common stocks.  At December 31, 2015 and September 30, 2016, the quoted per share market price of Valhi’s common stock was $1.34 and $2.30, respectively.

The Valhi, CompX and NL common stocks we own are subject to the restrictions on resale pursuant to certain provisions of 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.