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Business And Geographic Segments | 12 Months Ended
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Dec. 31, 2011
Business And Geographic Segments [Abstract] |
Business And Geographic Segments | Note 2—Business and geographic segments:
Business segment |  | Entity |  | % controlled at December 31, 2011 |
Chemicals |  | Kronos |  |  | 80 | %
Component products |  | CompX |  |  | 87 | %
Waste management |  | WCS |  |  | 100 | %
Our control of Kronos includes 50% we hold directly and 30% held directly by NL. We own 83% of NL. Our control of CompX is through NL. See Note 3. We are organized based upon our operating subsidiaries. Our operating segments are defined as components of our consolidated operations about which separate financial information is available that is regularly evaluated by our chief operating decision maker in determining how to allocate resources and in assessing performance. Each operating segment is separately managed, and each operating segment represents a strategic business unit offering different products. We have the following three consolidated reportable operating segments.
| • |  | Chemicals—Our chemicals segment is operated through our majority control of Kronos. Kronos is a leading global producer and marketer of value-added titanium dioxide pigments ("TiO 2"), a base industrial product used in a diverse range of customer applications and end-use markets, including coatings, plastics, paper, food, cosmetics, inks, textile fibers, rubber, pharmaceuticals, glass, ceramics and other industrial and consumer markets. See Note 7.
| • |  | Component Products—We operate in the component products industry through our majority control of CompX. CompX is a leading manufacturer of engineered components utilized in a variety of applications and industries. CompX manufactures engineered components that are sold to a variety of industries including office furniture, recreational transportation (including boats), mailboxes, toolboxes, home appliances, banking equipment, vending equipment and computer related equipment. CompX has production facilities in North America and Asia.
| • |  | Waste Management—WCS is our subsidiary which operates a West Texas facility for the processing, treatment, storage and disposal of a broad range of low-level radioactive, hazardous, toxic and other wastes. WCS obtained a byproduct disposal license in 2008 and began disposal operations at this facility in October 2009. In January 2009 WCS received a LLRW disposal license, which was signed in September 2009. Construction of the Compact and Federal LLRW disposal facilities began in January 2011. Construction of the Compact LLRW disposal facility was substantially complete in November 2011, and the Federal LLRW disposal facility was substantially complete in February 2012. We currently expect the Compact LLRW disposal facility will be fully certified and operational by the end of March 2012, with the Federal LLRW disposal facility fully certified and operational later in 2012.
We evaluate segment performance based on segment operating income, which we define as income before income taxes and interest expense, exclusive of certain non-recurring items (such as gains or losses on disposition of business units and other long-lived assets outside the ordinary course of business and certain legal settlements) and certain general corporate income and expense items (including securities transactions gains and losses and interest and dividend income), which are not attributable to the operations of the reportable operating segments. The accounting policies of our reportable operating segments are the same as those described in Note 1. Segment results we report may differ from amounts separately reported by our various subsidiaries and affiliates due to purchase accounting adjustments and related amortization or differences in how we define operating income. Intersegment sales are not material. Interest income included in the calculation of segment operating income is not material in 2009, 2010 or 2011. Capital expenditures include additions to property and equipment but exclude amounts we paid for business units acquired in business combinations. Depreciation and amortization related to each reportable operating segment includes amortization of any intangible assets attributable to the segment. Amortization of deferred financing costs and any premium or discount associated with the issuance of indebtedness is included in interest expense. Segment assets are comprised of all assets attributable to each reportable operating segment, including goodwill and other intangible assets. Our investment in the TiO 2 manufacturing joint venture (see Note 7) is included in the Chemicals Segment assets. Corporate assets are not attributable to any operating segment and consist principally of cash and cash equivalents, restricted cash equivalents, marketable securities and loans to third parties. At December 31, 2011, approximately 22% of corporate assets were held by NL (in 2010 the percentage was 18%), with substantially all of the remainder held directly by Valhi.
|  | Years ended December 31, |
|  | 2009 |  |  | 2010 |  |  | 2011 |
|  | (In millions) |
Net sales: |  |  |  |  |  |  |  |  |  |  |  |
Chemicals |  | $ | 1,142.0 |  |  | $ | 1,449.7 |  |  | $ | 1,943.3 |
Component products |  |  | 116.1 |  |  |  | 135.3 |  |  |  | 138.8 |
Waste management |  |  | 14.0 |  |  |  | 7.7 |  |  |  | 2.0 |
Total net sales |  | $ | 1,272.1 |  |  | $ | 1,592.7 |  |  | $ | 2,084.1 |
Cost of sales: |  |  |  |  |  |  |  |  |  |  |  |
Chemicals |  | $ | 1,014.0 |  |  | $ | 1,106.7 |  |  | $ | 1,197.5 |
Component products |  |  | 92.3 |  |  |  | 99.3 |  |  |  | 103.6 |
Waste management |  |  | 29.4 |  |  |  | 23.9 |  |  |  | 25.3 |
Total cost of sales |  | $ | 1,135.7 |  |  | $ | 1,229.9 |  |  | $ | 1,326.4 |
Gross margin: |  |  |  |  |  |  |  |  |  |  |  |
Chemicals |  | $ | 128.0 |  |  | $ | 343.0 |  |  | $ | 745.8 |
Component products |  |  | 23.8 |  |  |  | 36.0 |  |  |  | 35.2 |
Waste management |  |  | (15.4 | ) |  |  | (16.2 | ) |  |  | (23.3 | )
Total gross margin |  | $ | 136.4 |  |  | $ | 362.8 |  |  | $ | 757.7 |
Operating income (loss): |  |  |  |  |  |  |  |  |  |  |  |
Chemicals |  | $ | (10.6 | ) |  | $ | 183.2 |  |  | $ | 553.0 |
Component products |  |  | (4.0 | ) |  |  | 9.4 |  |  |  | 15.5 |
Waste management |  |  | (27.0 | ) |  |  | (30.8 | ) |  |  | (38.0 | )
Total operating income (loss) |  |  | (41.6 | ) |  |  | 161.8 |  |  |  | 530.5 |
Equity in earnings of joint venture |  |  | (1.1 | ) |  |  | (.4 | ) |  |  | (.5 | )
General corporate items: |  |  |  |  |  |  |  |  |  |  |  |
Securities earnings |  |  | 26.6 |  |  |  | 26.3 |  |  |  | 28.6 |
Insurance recoveries |  |  | 4.6 |  |  |  | 18.8 |  |  |  | 16.9 |
Litigation settlement gains |  |  | 23.1 |  |  |  | 6.3 |  |  |  | — |
Litigation settlement expense |  |  | — |  |  |  | (32.2 | ) |  |  | — |
Gain on sale of business |  |  | 6.3 |  |  |  | — |  |  |  | — |
General expenses, net |  |  | (40.1 | ) |  |  | (29.9 | ) |  |  | (40.6 | )
Loss on prepayment of debt, net |  |  | — |  |  |  | — |  |  |  | (3.1 | )
Interest expense |  |  | (66.7 | ) |  |  | (68.4 | ) |  |  | (61.9 | )
Income (loss) before income taxes |  | $ | (88.9 | ) |  | $ | 82.3 |  |  | $ | 469.9 |
|  | Years ended December 31, |
|  | 2009 |  |  | 2010 |  |  | 2011 |
|  | (In millions) |
Depreciation and amortization: |  |  |  |  |  |  |  |  |  |  |  |
Chemicals |  | $ | 49.5 |  |  | $ | 47.4 |  |  | $ | 50.2 |
Component products |  |  | 8.2 |  |  |  | 7.7 |  |  |  | 6.8 |
Waste management |  |  | 9.6 |  |  |  | 7.0 |  |  |  | 6.8 |
Corporate |  |  | .1 |  |  |  | — |  |  |  | — |
Total |  | $ | 67.4 |  |  | $ | 62.1 |  |  | $ | 63.8 |
Capital expenditures: |  |  |  |  |  |  |  |  |  |  |  |
Chemicals |  | $ | 23.6 |  |  | $ | 37.7 |  |  | $ | 68.6 |
Component products |  |  | 2.3 |  |  |  | 2.1 |  |  |  | 3.2 |
Waste management |  |  | 31.6 |  |  |  | 4.9 |  |  |  | 74.3 |
Corporate |  |  | — |  |  |  | — |  |  |  | .1 |
Total |  | $ | 57.5 |  |  | $ | 44.7 |  |  | $ | 146.2 |
|  | December 31, |
|  | 2009 |  |  | 2010 |  |  | 2011 |
|  | (In millions) |
Total assets: |  |  |  |  |  |  |  |  |  |  |  |
Operating segments: |  |  |  |  |  |  |  |  |  |  |  |
Chemicals |  | $ | 1,726.4 |  |  | $ | 2,101.4 |  |  | $ | 2,189.7 |
Component products |  |  | 149.2 |  |  |  | 141.5 |  |  |  | 141.4 |
Waste management |  |  | 129.7 |  |  |  | 166.4 |  |  |  | 223.4 |
Joint venture accounted for by the equity method |  |  | 17.4 |  |  |  | 17.0 |  |  |  | 16.5 |
Corporate and eliminations |  |  | 387.6 |  |  |  | 288.0 |  |  |  | 267.0 |
Total |  | $ | 2,410.3 |  |  | $ | 2,714.3 |  |  | $ | 2,838.0 |
Geographic information. We attribute net sales to the place of manufacture (point-of-origin) and the location of the customer (point-of-destination); we attribute property and equipment to their physical location. At December 31, 2011 the net assets of our non-U.S. subsidiaries included in consolidated net assets approximated $726 million (in 2010 the total was $558 million).
|  | Years ended December 31, |
|  | 2009 |  |  | 2010 |  |  | 2011 |
|  | (In millions) |
Net sales—point of origin: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 521.4 |  |  | $ | 668.4 |  |  | $ | 837.0 |
Germany |  |  | 616.5 |  |  |  | 714.2 |  |  |  | 1,039.7 |
Canada |  |  | 206.3 |  |  |  | 281.5 |  |  |  | 353.2 |
Norway |  |  | 139.5 |  |  |  | 188.3 |  |  |  | 245.1 |
Belgium |  |  | 164.4 |  |  |  | 209.1 |  |  |  | 301.8 |
Taiwan |  |  | 5.8 |  |  |  | 8.8 |  |  |  | 9.3 |
Eliminations |  |  | (381.8 | ) |  |  | (477.6 | ) |  |  | (702.0 | )
Total |  | $ | 1,272.1 |  |  | $ | 1,592.7 |  |  | $ | 2,084.1 |
Net sales—point of destination: |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 444.3 |  |  | $ | 550.2 |  |  | $ | 629.9 |
Europe |  |  | 671.0 |  |  |  | 822.2 |  |  |  | 1,141.3 |
Asia and other |  |  | 156.8 |  |  |  | 220.3 |  |  |  | 312.9 |
Total |  | $ | 1,272.1 |  |  | $ | 1,592.7 |  |  | $ | 2,084.1 |
|  | December 31, |
|  | 2009 |  |  | 2010 |  |  | 2011 |
|  | (In millions) |
Net property and equipment: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 122.3 |  |  | $ | 120.1 |  |  | $ | 189.0 |
Germany |  |  | 299.7 |  |  |  | 267.8 |  |  |  | 259.6 |
Canada |  |  | 77.9 |  |  |  | 80.4 |  |  |  | 80.0 |
Norway |  |  | 107.0 |  |  |  | 100.5 |  |  |  | 101.5 |
Belgium |  |  | 66.4 |  |  |  | 69.4 |  |  |  | 86.0 |
Taiwan |  |  | 7.3 |  |  |  | 7.9 |  |  |  | 7.7 |
Total |  | $ | 680.6 |  |  | $ | 646.1 |  |  | $ | 723.8 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 + Details
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