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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income taxes | ​ ​ Note 14 - Income taxes: The provision for income taxes and the difference between such provision for income taxes and the amount that would be expected using the U.S. federal statutory income tax rate are presented below. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Years ended December 31,
​ |  | 2019 |  | 2020 |  | 2021
​ | ​ | (In millions)
Expected tax expense, at U.S. federal statutory income tax rate of 21% | ​ | $ | 6.0 | ​ | $ | 2.9 | ​ | $ | 12.8
Non-taxable dividends received from Kronos | ​ |  | (5.3) | ​ |  | (5.3) | ​ |  | (5.3)
U.S. state income taxes and other, net | ​ |  | (.1) | ​ |  | (.1) | ​ |  | —
Income tax expense (benefit) | ​ | $ | .6 | ​ | $ | (2.5) | ​ | $ | 7.5
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Components of income tax expense (benefit): | ​ |  |  | ​ |  |  | ​ |  |
Currently payable | ​ | $ | .2 | ​ | $ | — | ​ | $ | —
Deferred income tax expense (benefit) | ​ |  | .4 | ​ |  | (2.5) | ​ |  | 7.5
Income tax expense (benefit) | ​ | $ | .6 | ​ | $ | (2.5) | ​ | $ | 7.5
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Comprehensive provision (benefit) for income taxes allocable to: | ​ |  |  | ​ |  |  | ​ |  |
Net income (loss) | ​ | $ | .6 | ​ | $ | (2.5) | ​ | $ | 7.5
Additional paid-in capital | ​ |  | (.2) | ​ |  | (.1) | ​ |  | —
Other comprehensive income (loss): | ​ |  |  | ​ |  |  | ​ |  |
Currency translation | ​ |  | (.1) | ​ |  | .9 | ​ |  | (.4)
Pension plans | ​ |  | (.8) | ​ |  | (.7) | ​ |  | 3.2
OPEB plans | ​ |  | — | ​ |  | (.1) | ​ |  | —
Total | ​ | $ | (.5) | ​ | $ | (2.5) | ​ | $ | 10.3
​ 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 $25.4 million in each of 2019, 2020 and 2021. See Note 6. The components of the net deferred tax liability at December 31, 2020 and 2021 are summarized in the following table. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31,
​ | ​ | 2020 | ​ | 2021
​ |  | Assets |  | Liabilities |  | Assets |  | Liabilities
​ | ​ | (In millions)
Tax effect of temporary differences related to: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Inventories | ​ | $ | .4 | ​ | $ | — | ​ | $ | .5 | ​ | $ | —
Marketable securities | ​ |  | — | ​ |  | (3.6) | ​ |  | — | ​ |  | (7.0)
Property and equipment | ​ |  | — | ​ |  | (2.6) | ​ |  | — | ​ |  | (2.7)
Accrued OPEB costs | ​ |  | .3 | ​ |  | — | ​ |  | .2 | ​ |  | —
Accrued pension costs | ​ |  | .5 | ​ |  | — | ​ |  | .5 | ​ |  | —
Accrued employee benefits | ​ |  | 1.1 | ​ |  | — | ​ |  | 1.3 | ​ |  | —
Accrued environmental liabilities | ​ |  | 29.1 | ​ |  | — | ​ |  | 26.7 | ​ |  | —
Goodwill | ​ |  | — | ​ |  | (1.7) | ​ |  | — | ​ |  | (1.7)
Other accrued liabilities and deductible differences | ​ |  | — | ​ |  | — | ​ |  | .2 | ​ |  | —
Other taxable differences | ​ |  | — | ​ |  | (2.3) | ​ |  | — | ​ |  | (2.3)
Investment in Kronos Worldwide, Inc. | ​ |  | — | ​ |  | (55.0) | ​ |  | — | ​ |  | (59.8)
Adjusted gross deferred tax assets (liabilities) | ​ |  | 31.4 | ​ |  | (65.2) | ​ |  | 29.4 | ​ |  | (73.5)
Netting of items by tax jurisdiction | ​ |  | (31.4) | ​ |  | 31.4 | ​ |  | (29.4) | ​ |  | 29.4
Net noncurrent deferred tax liability | ​ | $ | — | ​ | $ | (33.8) | ​ | $ | — | ​ | $ | (44.1)
​ At December 31, 2021, we had NOL carryforwards for federal income tax purposes of approximately $26.6 million all of which have an indefinite carryforward period subject to an 80% annual usage limitation. Our deferred tax asset for such NOL carryforward is net of a portion of our uncertain tax positions as discussed below. We believe that we have adequate accruals for additional taxes and related interest expense which could ultimately result from tax examinations. We believe the ultimate disposition of tax examinations should not have a material adverse effect on our consolidated financial position, results of operations or liquidity. At December 31, 2019, 2020, and 2021, the gross amount of our uncertain tax positions (exclusive of the effect of interest and penalties) was $7.3 million, and there was no change in such amount during the past three years. Previously, we made certain pro-rata distributions to our stockholders in the form of Kronos common stock and we recognized a taxable gain related to such distributions. Our uncertain tax positions are attributable to such prior period distribution of Kronos common stock. As discussed in Note 1, we are part of the Contran Tax Group and we have not paid this liability because Contran has not paid the liability to the applicable tax authority. This liability would be payable by Contran to the applicable tax authority only if the shares of Kronos common stock were to be sold or otherwise disposed outside of the Contran Tax Group. At December 31, 2021, $5.6 million of our uncertain tax position is classified as a component of our noncurrent deferred tax liability. If our uncertain tax position at December 31, 2021 was recognized, a benefit of $7.3 million would affect our effective income tax rate. We currently estimate that our unrecognized tax benefits will not change materially during the next twelve months. We and Contran file income tax returns in U.S. federal and various state and local jurisdictions. Our U.S. income tax returns prior to 2018 are generally considered closed to examination by applicable tax authorities. Income tax matters related to Kronos Kronos has substantial net operating loss (NOL) carryforwards in Germany (the equivalent of $451 million for German corporate tax purposes at December 31, 2021) and in Belgium (the equivalent of $19 million for Belgian corporate tax purposes at December 31, 2021). At December 31, 2021, Kronos has concluded that no deferred income tax asset valuation allowance is required to be recognized with respect to such carryforwards, principally because (i) such carryforwards have an indefinite carryforward period, (ii) Kronos has utilized a portion of such carryforwards during the most recent three-year period and (iii) Kronos currently expects to utilize the remainder of such carryforwards over the long term. However, prior to the complete utilization of such carryforwards, if Kronos were to generate additional losses in its German or Belgian operations for an extended period of time, or if applicable law were to change such that the carryforward period was no longer indefinite, it is possible that Kronos might conclude the benefit of such carryforwards would no longer meet the more-likely-than-not recognition criteria, at which point Kronos would be required to recognize a valuation allowance against some or all of the then-remaining tax benefit associated with the carryforwards. 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 one-time repatriation tax (Transition Tax) provisions of the 2017 Tax Act which imposed a one-time repatriation tax on post-1986 undistributed earnings, Kronos recognized current income tax expense of $74.5 million and elected to pay such tax over an eight year period beginning in 2018. At December 31, 2021 the balance of its unpaid Transition Tax is $50.6 million, which will be paid in annual installments over the remainder of the eight year period. Of such $50.6 million, $44.7 million is recorded as a noncurrent payable to affiliate (income taxes payable to Valhi) classified as a noncurrent liability in its Consolidated Balance Sheet at December 31, 2021, and $5.9 million is included with its current payable to affiliate (income taxes payable to Valhi) classified as a current liability (a portion of its noncurrent income tax payable to affiliate was reclassified to its current payable to affiliate for the portion of its 2021 Transition Tax installment due within the next twelve months). In the fourth quarter of 2019, Kronos recognized an income tax benefit of $3.0 million primarily related to the favorable settlement of a prior year tax matter in Germany, with $1.5 million recognized as a current cash tax benefit and $1.5 million recognized as a non-cash deferred income tax benefit related to an increase to its German net operating loss carryforward. In addition, Kronos recognized a non-cash deferred income tax expense of $5.5 million primarily related to the revaluation of its net deferred income tax asset in Germany resulting from a decrease in the German trade tax rate. Tax authorities are examining certain of Kronos’ U.S. and non-U.S. tax returns and may propose tax deficiencies, including penalties and interest. Because of the inherent uncertainties involved in settlement initiatives and court and tax proceedings, Kronos cannot guarantee that these tax matters, if any, will be resolved in Kronos’ favor, and therefore its potential exposure, if any, is also uncertain. Kronos believes it has adequate accruals for additional taxes and related interest expense which could ultimately result from tax examinations. Kronos believes the ultimate disposition of tax examinations should not have a material adverse effect on its consolidated financial position, results of operations or liquidity. On March 27, 2020, the “Coronavirus Aid, Relief and Economic Security (CARES) Act” was signed into law in response to the COVID-19 pandemic. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, modifications to the limitation of business interest for tax years beginning in 2019 and 2020 and technical corrections to tax depreciation methods for qualified improvement property. Under the CARES Act, the modification to the business interest provisions increases the business interest limitation from 30% of adjusted taxable income to 50% of adjusted taxable income which increases Kronos’ allowable interest expense deduction for 2019 and 2020. Consequently, in the first quarter of 2020 Kronos recognized a cash tax benefit of $.5 million related to the reversal of the valuation allowance recognized in 2019 for the portion of the disallowed interest expense Kronos did not expect to fully utilize at December 31, 2019 and Kronos has considered such modifications in its 2020 provision for income taxes. With the expiration of these CARES Act provisions at the end of 2020, Kronos recognized an increase in disallowed interest expense and an increase in the valuation allowance of $2.8 million for the portion of the carryforward Kronos believes does not meet the more-likely-than-not measurement criteria in 2021.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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