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Investment in Affiliates and Other Assets | 12 Months Ended
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Dec. 31, 2013
Investment in Affiliates and Other Assets | Note 7—Investment in affiliates and other assets:
| December 31, |
| 2012 |  |  | 2013 |
| (In millions) |
Investment in affiliates: |  |  |  |  |  |  |
Ti0 2 manufacturing joint venture | $ | 109.9 |  |  | $ | 102.3 |
BMI and Landwell |  | 16.2 |  |  |  | — |
Total | $ | 126.1 |  |  | $ | 102.3 |
Other assets: |  |  |  |  |  |  |
Land held for development | $ | — |  |  | $ | 158.1 |
Waste disposal site operating permits, net |  | 65.7 |  |  |  | 59.5 |
Restricted cash |  | 20.9 |  |  |  | 33.3 |
IBNR receivables |  | 6.7 |  |  |  | 6.9 |
Capital lease deposit |  | 6.2 |  |  |  | 6.2 |
Intangible assets |  | .2 |  |  |  | 5.2 |
Deferred financing costs |  | 7.0 |  |  |  | 2.6 |
Assets held for sale |  | 2.6 |  |  |  | 1.1 |
Other |  | 46.7 |  |  |  | 63.8 |
Total | $ | 156.0 |  |  | $ | 336.7 |
Investment in TiO 2 manufacturing joint venture. Our Chemicals Segment and another Ti0 2 producer, Tioxide Americas LLC (“Tioxide”), are equal owners of a manufacturing joint venture (Louisiana Pigment Company, L.P., or “LPC”) that owns and operates a TiO 2 plant in Louisiana. Tioxide is a wholly-owned subsidiary of Huntsman Corporation. We and Tioxide are both required to purchase one-half of the TiO 2 produced by LPC, unless we and Tioxide agree otherwise (such as in 2012, when we purchased approximately 52% of the production from the plant). LPC operates on a break-even basis and, accordingly, we report no equity in earnings of LPC. Each owner’s acquisition transfer price for its share of the TiO 2 produced is equal to its share of the joint venture’s production costs and interest expense, if any. Our share of net cost is reported as cost of sales as the related TiO 2 acquired from LPC is sold. We report distributions we receive from LPC, which generally relate to excess cash generated by LPC from its non-cash production costs, and contributions we make to LPC, which generally relate to cash required by LPC when it builds working capital, as part of our cash flows from operating activities in our Consolidated Statements of Cash Flows. The components of our net distributions (contributions) from LPC are shown in the table below.
| Years ended December 31, |
| 2011 |  |  | 2012 |  |  | 2013 |
| (In millions) |
Distributions from LPC | $ | 29.7 |  |  | $ | 79.5 |  |  | $ | 70.7 |
Contributions to LPC |  | (25.9 | ) |  |  | (100.2 | ) |  |  | (59.8 | )
Net distributions (contributions) | $ | 3.8 |  |  | $ | (20.7 | ) |  | $ | 10.9 |
Summary balance sheets of LPC are shown below:
| December 31, |
| 2012 |  |  | 2013 |
| (In millions) |
ASSETS |  |  |  |  |  |  |
Current assets | $ | 139.8 |  |  | $ | 127.2 |
Property and equipment, net |  | 126.0 |  |  |  | 114.1 |
Total assets | $ | 265.8 |  |  | $ | 241.3 |
LIABILITIES AND PARTNERS’ EQUITY |  |  |  |  |  |  |
Other liabilities, primarily current | $ | 43.2 |  |  | $ | 33.9 |
Partners’ equity |  | 222.6 |  |  |  | 207.4 |
Total liabilities and partners’ equity | $ | 265.8 |  |  | $ | 241.3 |
Summary income statements of LPC are shown below:
| Years ended December 31, |
| 2011 |  |  | 2012 |  |  | 2013 |
| (In millions) |
Revenues and other income: |  |  |  |  |  |  |  |  |  |  |
Kronos | $ | 144.8 |  |  | $ | 250.2 |  |  | $ | 224.5 |
Tioxide |  | 145.7 |  |  |  | 227.5 |  |  |  | 224.6 |
Total |  | 290.5 |  |  |  | 477.7 |  |  |  | 449.1 |
Cost and expenses: |  |  |  |  |  |  |  |  |  |  |
Cost of sales |  | 290.1 |  |  |  | 477.3 |  |  |  | 448.7 |
General and administrative |  | .4 |  |  |  | .4 |  |  |  | .4 |
Total |  | 290.5 |  |  |  | 477.7 |  |  |  | 449.1 |
Net income | $ | — |  |  | $ | — |  |  | $ | — |
Investment in Basic Management and Landwell. As discussed in Note 3, prior to December 2013 we owned a 32% interest in BMI and a 12% interest in Landwell. BMI owns an additional 50% interest in Landwell, and we accounted for our ownership interests in BMI and Landwell by the equity method of accounting. In December 2013, we acquired a controlling interest in BMI and Landwell, and we ceased to account for BMI and Landwell by the equity method and began to account for BMI and Landwell as a consolidated subsidiary. For federal income tax purposes Landwell is treated as a partnership, and accordingly the combined results of operations of BMI and Landwell include a provision for income taxes on Landwell’s earnings only to the extent that such earnings accrue to BMI. We previously recorded our equity in earnings of BMI and Landwell on a one-quarter lag because their financial statements were generally not available to us on a timely basis. Upon gaining control of BMI and Landwell in December 2013, we eliminated the one-quarter lag by recognizing, in the fourth quarter of 2013, equity in earnings of BMI and Landwell attributable to the six-month period ended December 31, 2013. The effect of this one-quarter lag, as well as the effect of us recognizing five quarters of equity in earnings of BMI and Landwell in 2013, is not material to any period presented. Certain selected combined financial information of BMI and Landwell is summarized below. In addition, the combined revenues, income before income taxes and net income of BMI and Landwell for the three months ended December 31, 2013 is $15.9 million, $6.9 million and $5.3 million, respectively.
| September 30, |
| 2012 |
| (In millions)
ASSETS |  |  |
Current assets | $ | 25.7 |
Prepaid costs and other |  | 11.6 |
Property and equipment, net |  | 6.4 |
Investment in undeveloped land and water rights |  | 42.0 |
Land and development costs |  | 12.7 |
Total assets | $ | 98.4 |
LIABILITIES AND EQUITY |  |  |
Current liabilities | $ | 14.2 |
Long-term debt |  | 14.3 |
Deferred income taxes |  | 6.0 |
Other noncurrent liabilities |  | 3.4 |
Equity |  | 60.5 |
Total liabilities and equity | $ | 98.4 |
| Twelve months ended September 30, |
| 2011 |  |  | 2012 |  |  | 2013 |
| (In millions) |
Total revenues | $ | 10.0 |  |  | $ | 10.4 |  |  | $ | 9.5 |
Loss before income taxes |  | (2.7 | ) |  |  | (1.2 | ) |  |  | (3.9 | )
Net loss |  | (2.1 | ) |  |  | (1.4 | ) |  |  | (3.7 | )
Land held for development. The land held for development relates to BMI and Landwell and is discussed in Notes 1 and 3. Capitalized permit costs. We obtained our byproducts disposal license in 2008 and began amortizing such license when the byproduct disposal facility began operations in October 2009. We obtained our low-level radioactive waste (“LLRW”) license in September 2009. Our LLRW facilities commenced operations in 2012, at which time we began amortizing such license. Amortization of capitalized operating permit costs was $1.3 million in 2011, $4.9 million in 2012 and $6.5 million in 2013. Our estimated aggregate amortization expense for all our of capitalized permit costs as of December 31, 2013 is approximately $6.7 million in each of 2014 through 2018. Capitalized permit costs are stated net of accumulated amortization of $11.8 million at December 31, 2012 and $18.8 million at December 31, 2013. The components of net capitalized permit costs are presented in the table below.
| December 31, |
| 2012 |  |  | 2013 |
| (In millions) |
Net permit costs for: |  |  |  |  |  |  |
Pending renewals of prior permits | $ | .2 |  |  | $ | — |
Issued permits which are being amortized: |  |  |
LLRW license (expires in 2024) |  | 58.3 |  |  |  | 54.0 |
Byproduct license (expires in 2018) |  | 5.6 |  |  |  | 4.6 |
Other (expires 2014 - 2024) |  | 1.6 |  |  |  | .9 |
Total pending renewals and issued permits which are being amortized | $ | 65.7 |  |  | $ | 59.5 |
Assets held for sale. Prior to 2012, our assets held for sale consisted primarily of two facilities (land, building, and building improvements) and certain unimproved land, all of which were formerly used in Component Products Segment’s operations. These assets were classified as “assets held for sale” when they ceased to be used in our operations and met all of the applicable criteria under GAAP. During 2012 we obtained updated independent appraisals of the significant assets. Based on these appraisals, we recognized write-downs in the third quarter aggregating $.4 million to reduce the carrying value of the assets to their estimated fair value less cost to sell. Subsequently we sold the one of the facilities in December 2012 for net proceeds of $3.6 million, which net proceeds were less than the carrying amount of the assets and we therefore recognized a loss on the sale of the facility of approximately $.8 million during the fourth quarter of 2012. In 2013 CompX sold its remaining facility for net proceeds of $1.6 million which approximated the carrying value of the assets as of the date of the sale. We also recognized asset held for sale write-down s aggregating $1.1 million in 2011 related to these properties, associated with obtaining updated appraisals on the properties. These appraisals represent a Level 2 input as defined by ASC 820-10-35. Other. We have certain related party transactions with LPC and Basic Management, as more fully described in Note 16. The IBNR receivables relate to certain insurance liabilities, the risk of which we have reinsured with certain third party insurance carriers. We report the insurance liabilities related to these IBNR receivables which have been reinsured as part of noncurrent accrued insurance claims and expenses. Certain of our insurance liabilities are classified as current liabilities and the related IBNR receivables are classified with other current assets. See Notes 10 and 16. Restricted cash relates primarily relates to our Chemicals (see Notes 9 and 12) and Waste Management Segments (see Note 17). The capital lease deposit relates to certain indebtedness of our Waste Management Segment and is discussed in Note 9.

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- Definition The entire disclosure for other assets. This disclosure includes other current assets and other noncurrent assets. + References No definition available. + Details
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