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v3.22.2

Business Segment Information | 6 Months Ended
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Jun. 30, 2022
Segment Reporting [Abstract] |
Business Segment Information | Note 2 – Business segment information: ​
​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | % controlled at |
Business segment | ​ | Entity | ​ | June 30, 2022 |
Chemicals |  | Kronos |  | 81% | ​
Component products |  | CompX |  | 87% | ​
Real estate management and development |  | BMI and LandWell |  | 63% - 77% | ​
​ ​ Our control of Kronos includes approximately 50% we hold directly and approximately 31% held directly by NL. We own approximately 83% of NL. Our control of CompX is through NL. We own approximately 63% of BMI. Our control of LandWell includes the approximately 27% we hold directly and 50% held by BMI. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three months ended | ​ | Six months ended
​ | ​ | June 30, | ​ | June 30,
​ |  | 2021 |  | 2022 |  | 2021 |  | 2022
​ | ​ | (In millions)
Net sales: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Chemicals | ​ | $ | 478.6 | ​ | $ | 565.3 | ​ | $ | 943.6 | ​ | $ | 1,128.2
Component products | ​ |  | 36.3 | ​ |  | 41.6 | ​ |  | 72.2 | ​ |  | 83.7
Real estate management and development | ​ |  | 10.4 | ​ |  | 27.7 | ​ |  | 18.5 | ​ |  | 51.7
Total net sales | ​ | $ | 525.3 | ​ | $ | 634.6 | ​ | $ | 1,034.3 | ​ | $ | 1,263.6
Cost of sales: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Chemicals | ​ | $ | 369.9 | ​ | $ | 445.1 | ​ | $ | 739.6 | ​ | $ | 859.0
Component products | ​ |  | 24.9 | ​ |  | 28.0 | ​ |  | 49.8 | ​ |  | 58.0
Real estate management and development | ​ |  | 5.9 | ​ |  | 14.8 | ​ |  | 11.0 | ​ |  | 29.2
Total cost of sales | ​ | $ | 400.7 | ​ | $ | 487.9 | ​ | $ | 800.4 | ​ | $ | 946.2
Gross margin: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Chemicals | ​ | $ | 108.7 | ​ | $ | 120.2 | ​ | $ | 204.0 | ​ | $ | 269.2
Component products | ​ |  | 11.4 | ​ |  | 13.6 | ​ |  | 22.4 | ​ |  | 25.7
Real estate management and development | ​ |  | 4.5 | ​ |  | 12.9 | ​ |  | 7.5 | ​ |  | 22.5
Total gross margin | ​ | $ | 124.6 | ​ | $ | 146.7 | ​ | $ | 233.9 | ​ | $ | 317.4
Operating income (loss): | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Chemicals | ​ | $ | 47.4 | ​ | $ | 69.2 | ​ | $ | 85.1 | ​ | $ | 155.6
Component products | ​ |  | 5.8 | ​ |  | 7.7 | ​ |  | 11.6 | ​ |  | 14.0
Real estate management and development | ​ |  | 2.4 | ​ |  | (5.0) | ​ |  | 10.2 | ​ |  | 3.0
Total operating income | ​ |  | 55.6 | ​ |  | 71.9 | ​ |  | 106.9 | ​ |  | 172.6
General corporate items: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Interest income and other | ​ |  | 1.1 | ​ |  | 1.4 | ​ |  | 2.0 | ​ |  | 2.3
Gain on land and related sales | ​ | ​ | 5.6 | ​ | ​ | — | ​ | ​ | 5.6 | ​ | ​ | —
Changes in market value of Valhi common stock held by subsidiaries | ​ |  | .9 | ​ |  | 3.9 | ​ |  | 2.2 | ​ |  | 4.0
Other components of net periodic pension and OPEB expense | ​ |  | (4.6) | ​ |  | (3.3) | ​ |  | (8.9) | ​ |  | (6.6)
General expenses, net | ​ |  | (9.3) | ​ |  | (10.5) | ​ |  | (17.4) | ​ |  | (18.7)
Interest expense | ​ |  | (8.7) | ​ |  | (7.0) | ​ |  | (17.3) | ​ |  | (13.9)
Income before income taxes | ​ | $ | 40.6 | ​ | $ | 56.4 | ​ | $ | 73.1 | ​ | $ | 139.7
​ Segment results we report may differ from amounts separately reported by our various subsidiaries due to purchase accounting adjustments and related amortization or differences in the way we define operating income. Intersegment sales are not material. Infrastructure reimbursement is included in the determination of Real Estate Management and Development operating income. See Note 11. The fixed asset impairment of $16.0 million recognized during the second quarter of 2022 discussed below is also included in the determination of the Real Estate Management and Development operating income. ​ BMI provides utility services, among other things, to an industrial park located in Henderson, Nevada and is responsible for the delivery of water to the City of Henderson and various other users under long-term contracts through a water delivery system owned and operated by Basic Water Company (“BWC”), a wholly-owned subsidiary of BMI. BWC’s water delivery system operates on Lake Mead in Nevada. Due to the Western drought, water levels in Lake Mead have been declining for much of the last twenty years. As a result of water release curtailments upstream of Lake Mead which began late in the second quarter, Lake Mead water levels have dropped precipitously to historically low levels. On June 30, 2022 BWC was no longer able to pump water without the risk of damaging the system and consequently ceased operations at its water intake facility to best preserve the system. In the period since BWC stopped pumping water, lake levels have continued to fall, and current estimates of Lake Mead water levels do not indicate BWC will be able to resume pumping water for the foreseeable future. We considered BWC’s inability to pump water from Lake Mead to be a triggering event under the ASC 360 Property, Plant, and Equipment, which caused us to evaluate the water system fixed assets for impairment. Because BWC is unable to deliver water under its current contracts and therefore unable to generate revenue, we determined the water system’s assets were fully impaired except to the extent certain equipment had alternative use outside of BWC’s operations, in which case those assets were written down to estimated salvage value. The $16.0 million impairment charge recognized in the second quarter of 2022 represents the write down of the book value to the estimated salvage value of the assets. At June 30, 2022 a nominal amount was recognized in property, plant, and equipment for the water system fixed assets.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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