Business Segment Information

6 Months Ended

Jun. 30, 2012

Business segment information[Abstract]

Business segment information

Note 2 – Business segment information:

Business segment	Entity	% controlled at June 30, 2012
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.

	Three months ended June  30,						Six months ended June 30,
	2011			2012			2011			2012
	(In millions)
Net sales:
Chemicals	$	537.6		$	545.3		$	958.0		$	1,106.6
Component products		35.2			37.6			70.0			73.1
Waste management		.3			.9			.8			2.0
Total net sales	$	573.1		$	583.8		$	1,028.8		$	1,181.7
Cost of sales:
Chemicals	$	341.2		$	382.6		$	615.8		$	683.0
Component products		25.4			27.6			51.5			53.6
Waste management		5.8			8.1			11.9			15.7
Total cost of sales	$	372.4		$	418.3		$	679.2		$	752.3
Gross margin:
Chemicals	$	196.4		$	162.7		$	342.2		$	423.6
Component products		9.8			10.0			18.5			19.5
Waste management		(5.5	)		(7.2	)		(11.1	)		(13.7	)
Total gross margin	$	200.7		$	165.5		$	349.6		$	429.4
Operating income (loss):
Chemicals	$	145.9		$	112.4		$	249.4		$	323.7
Component products		3.1			3.9			11.9			6.8
Waste management		(9.2	)		(11.3	)		(18.2	)		(20.9	)
Total operating income		139.8			105.0			243.1			309.6
Equity in earnings of investee		(.1	)		(.1	)		(.2	)		—
General corporate items:
Securities earnings		7.4			7.1			14.8			14.2
Insurance recoveries		.1			.3			.5			1.4
Litigation settlement gain		—			14.7			—			14.7
General expenses, net		(16.8	)		(9.2	)		(23.4	)		(29.5	)
Loss on prepayment of debt		—			(7.2	)		(3.3	)		(7.2	)
Interest expense		(15.9	)		(14.4	)		(33.1	)		(27.9	)
Income before income taxes	$	114.5		$	96.2		$	198.4		$	275.3

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 the way we define operating income. Intersegment sales are not material. We received approximately $7.5 million for a patent litigation settlement in the first quarter of 2011, which is included in the determination of Component Products operating income, see Note 11.