Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2013

Defined Benefit Pension Plans

Schedule of Defined Benefit Plan Expected Future Payments

We expect to contribute the equivalent of $27.4 million to all of our defined benefit pension plans during 2014. Benefit payments to plan participants out of plan assets are expected to be the equivalent of:

2014	$	29.2 million
2015		29.2 million
2016		29.0 million
2017		29.8 million
2018		30.4 million
Next 5 years		168.3 million

Schedule of Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss)

The amounts shown for all of our defined benefit plans for unrecognized actuarial losses, prior service cost and net transition obligations at December 31, 2012 and 2013 have not been recognized as components of our periodic defined benefit pension cost as of those dates. These amounts will be recognized as components of our periodic defined benefit cost in future years. These amounts, net of deferred income taxes and noncontrolling interest, are recognized in our accumulated other comprehensive income (loss) at December 31, 2012 and 2013. We expect approximately $11.4 million, $.5 million and $.1 million of the unrecognized actuarial losses, prior service cost and net transition obligations, respectively, will be recognized as components of our periodic defined benefit pension cost in 2014. The table below details the changes in other comprehensive income (loss) during 2011, 2012 and 2013.

	Years ended December 31,
	2011			2012			2013
	(In millions)
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
Net actuarial gain (loss)	$	(30.1	)	$	(66.7	)	$	19.8
Plan curtailment		—			—			7.1
Amortization of unrecognized:
Prior service cost		1.2			1.1			1.1
Net transition obligations		.5			.4			.4
Net actuarial gain		8.2			9.7			14.2
Total	$	(20.2	)	$	(55.5	)	$	42.6

Composition of Pension Plan Assets

The composition of our December 31, 2012 and 2013 pension plan assets by fair value level is shown in the table below. The amounts shown for plan assets invested in the CMRT include a nominal amount of cash held by our U.S. pension plan which is not part of the plan’s investment in the CMRT.

	Fair Value Measurements at December 31, 2012
	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In millions)
Germany	$	224.8	$	—	$	—	$	224.8
Canada:
Local currency equities		22.4		22.4		—		—
Foreign currency equities		30.3		30.3		—		—
Local currency fixed income		38.0		38.0		—		—
Global mutual fund		5.6		5.6		—		—
Cash and other		2.1		2.1		—		—
Norway:
Local currency equities		3.2		3.2		—		—
Foreign currency equities		5.2		5.2		—		—
Local currency fixed income		40.9		40.9		—		—
Foreign currency fixed income		4.8		4.8		—		—
Real estate		5.5		—		—		5.5
Cash and other		7.6		7.0		—		.6
U.S.—CMRT		50.7		—		50.7		—
Other		19.5		12.3		—		7.2
Total	$	460.6	$	171.8	$	50.7	$	238.1

	Fair Value Measurements at December 31, 2013
	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In millions)
Germany	$	247.5	$	—	$	—	$	247.5
Canada:
Local currency equities		24.0		24.0		—		—
Foreign currency equities		33.0		33.0		—		—
Local currency fixed income		44.7		44.7		—		—
Global mutual fund		6.1		6.1		—		—
Cash and other		.5		.5		—		—
Norway:
Local currency equities		2.0		2.0		—		—
Foreign currency equities		5.2		5.2		—		—
Local currency fixed income		35.0		35.0		—		—
Foreign currency fixed income		3.6		3.6		—		—
Real estate		4.8		—		—		4.8
Cash and other		13.2		12.4		—		.8
U.S.—CMRT		55.0		—		55.0		—
Other		22.0		13.6		—		8.4
Total	$	496.6	$	180.1	$	55.0	$	261.5

Schedule of Rollforward of Change in Fair Value of Level 3 Assets

A rollforward of the change in fair value of Level 3 assets follows.

	Years ended December 31,
	2012			2013
	(In millions)
Fair value at beginning of year	$	200.6		$	238.1
Gain on assets held at end of year		33.0			11.2
Gain on assets sold during the year		.1
Assets purchased		15.1			16.1
Assets sold		(14.3	)		(14.6	)
Transfers out		(1.0	)
Currency exchange rate fluctuations		4.6			10.7
Fair value at end of year	$	238.1		$	261.5

U.S. Defined Benefit Pension Plans

Schedule of Funded Status

The funded status of our U.S. defined benefit pension plans is presented in the table below.

	Years ended December 31,
	2012			2013
	(In millions)
Change in projected benefit obligations (“PBO”):
Balance at beginning of the year	$	65.3		$	69.1
Interest cost		2.7			2.4
Actuarial loss (gain)		4.9			(5.6	)
Benefits paid		(3.8	)		(3.9	)
Balance at end of the year	$	69.1		$	62.0
Change in plan assets:
Fair value at beginning of the year	$	45.4		$	50.7
Actual return on plan assets		6.9			7.0
Employer contributions		2.2			1.1
Benefits paid		(3.8	)		(3.9	)
Fair value at end of year	$	50.7		$	54.9
Funded status	$	(18.4	)	$	(7.1	)
Amounts recognized in the Consolidated Balance Sheets:
Accrued pension costs:
Current	$	(.3	)	$	(.3	)
Noncurrent		(18.1	)		(6.8	)
Total		(18.4	)		(7.1	)
Accumulated other comprehensive loss—Actuarial loss		38.1			28.9
Total	$	19.7		$	21.8
Accumulated benefit obligations (“ABO”)	$	69.1		$	62.0

Components of Net Periodic Defined Benefit Cost (Credit)

The components of our net periodic defined benefit pension benefit cost (credit) for U.S. plans are presented in the table below. The amounts shown below for the amortization of unrecognized actuarial losses for 2011, 2012 and 2013 were recognized as components of our accumulated other comprehensive income (loss) at December 31, 2010, 2011 and 2012, respectively, net of deferred income taxes and noncontrolling interest.

	Years ended December 31,
	2011			2012			2013
	(In millions)
Net periodic pension benefit cost (credit) for U.S. plans:
Interest cost	$	2.9		$	2.7		$	2.4
Expected return on plan assets		(4.8	)		(4.5	)		(4.9	)
Amortization of unrecognized net actuarial loss		1.0			1.6			1.6
Total	$	(.9	)	$	(.2	)	$	(.9	)

Schedule of Plans for which Accumulated Benefit Obligations Exceeds Plan Assets

Certain information concerning our U.S. defined benefit pension plans is presented in the table below.

	December 31,
	2012		2013
	(In millions)
Plans for which the ABO exceeds plan assets:
Projected benefit obligations	$	69.1	$	62.0
Accumulated benefit obligations		69.1		62.0
Fair value of plan assets		50.7		54.9

Summary of Actuarial Assumptions Used to Determine the Benefit Obligation and Net Benefit Cost

The weighted-average rate assumptions used in determining the net periodic pension cost for our U.S. defined benefit pension plans for 2011, 2012 and 2013 are presented in the table below. The impact of assumed increases in future compensation levels does not have an effect on the periodic pension cost as the plans are frozen with regards to compensation.

	Years ended December 31,
Rate	2011	2012	2013
Discount rate	5.1%	4.2%	3.6%
Long-term return on plan assets	10.0%	10.0%	10.0%

Foreign Pension Plan Defined Benefit

Schedule of Funded Status

The funded status of our foreign defined benefit pension plans is presented in the table below.

	Years ended December 31,
	2012			2013
	(In millions)
Change in PBO:
Balance at beginning of the year	$	469.7		$	591.5
Service cost		10.4			13.1
Interest cost		22.8			21.6
Participants’ contributions		1.8			1.9
Actuarial loss (gain)		95.9			(2.5	)
Change in currency exchange rates		15.3			4.6
Benefits paid		(24.4	)		(25.3	)
Balance at end of the year	$	591.5		$	604.9
Change in plan assets:
Fair value at beginning of the year	$	343.7		$	409.9
Actual return on plan assets		49.0			28.5
Employer contributions		28.2			27.3
Participants’ contributions		1.8			1.9
Change in currency exchange rates		11.6			(.7	)
Benefits paid		(24.4	)		(25.3	)
Fair value at end of year	$	409.9		$	441.6
Funded status	$	(181.6	)	$	(163.3	)
Amounts recognized in the Consolidated Balance Sheets:
Pension asset	$	5.1		$	.6
Accrued pension costs:
Current		(1.9	)		(1.4	)
Noncurrent		(184.8	)		(162.5	)
Total		(181.6	)		(163.3	)
Accumulated other comprehensive loss:
Actuarial loss		190.8			160.8
Prior service cost		5.4			2.8
Net transition obligations		1.3			—
Total		197.5			163.6
Total	$	15.9		$	.3
ABO	$	545.9		$	560.0

Components of Net Periodic Defined Benefit Cost (Credit)

The components of our net periodic defined benefit pension benefit cost for our foreign plans are presented in the table below. The amounts shown below for the amortization of unrecognized prior service cost, net transition obligations and actuarial losses for 2011, 2012 and 2013 were recognized as components of our accumulated other comprehensive income (loss) at December 31, 2010, 2011 and 2012, respectively, net of deferred income taxes and noncontrolling interest. During 2011, certain eligible participants elected to take lump sum distributions upon their retirement, resulting in a nominal settlement charge in 2011. In December 2013, we amended one of our Canadian plans in which participation with respect to hourly workers was closed to new participants in December 2013, resulting in a $7.1 million curtailment charge for recognition of previously unamortized prior service cost and transition obligation and $.2 million for special termination benefits.

	Years ended December 31,
	2011			2012			2013
	(In millions)
Net periodic pension cost for foreign plans:
Service cost	$	11.2		$	10.4		$	13.1
Interest cost		24.1			22.8			21.6
Settlement loss		.5			—			—
Curtailment loss		—			—			7.3
Expected return on plan assets		(18.0	)		(17.4	)		(18.9	)
Amortization of unrecognized:
Prior service cost		1.2			1.1			1.1
Net transition obligations		.5			.4			.4
Net actuarial loss		6.8			8.0			12.5
Total	$	26.3		$	25.3		$	37.1

Schedule of Plans for which Accumulated Benefit Obligations Exceeds Plan Assets

Certain information concerning our foreign defined benefit pension plans is presented in the table below.

	December 31,
	2012		2013
	(In millions)
Plans for which the ABO exceeds plan assets:
Projected benefit obligations	$	529.4	$	527.0
Accumulated benefit obligations		491.5		489.5
Fair value of plan assets		342.7		364.2

Summary of Actuarial Assumptions Used to Determine the Benefit Obligation and Net Benefit Cost

A summary of our key actuarial assumptions used to determine foreign benefit obligations as of December 31, 2012 and 2013 was:

	December 31,
Rate	2012	2013
Discount rate	3.7%	3.8%
Increase in future compensation levels	3.1%	2.7%

Foreign Pension Plans, Defined Benefit, Foreign Net Periodic

Summary of Actuarial Assumptions Used to Determine the Benefit Obligation and Net Benefit Cost

A summary of our key actuarial assumptions used to determine foreign net periodic benefit cost for 2011, 2012 and 2013 are as follows:

	Years ended December 31,
Rate	2011	2012	2013
Discount rate	5.1%	4.9%	3.7%
Increase in future compensation levels	3.0%	3.1%	3.1%
Long-term return on plan assets	5.5%	5.2%	5.0%

CMRT

Composition of Pension Plan Assets

The CMRT unit value is determined semi-monthly, and the plans have the ability to redeem all or any portion of their investment in the CMRT at any time based on the most recent semi-monthly valuation. However, the plans do not have the right to individual assets held by the CMRT and the CMRT has the sole discretion in determining how to meet any redemption request. For purposes of our plan asset disclosure, we consider the investment in the CMRT as a Level 2 input because (i) the CMRT value is established semi-monthly and the plans have the right to redeem their investment in the CMRT, in part or in whole, at anytime based on the most recent value and (ii) observable inputs from Level 1 or Level 2 were used to value approximately 83% of the assets of the CMRT at each of December 31, 2012 and 2013, as noted below. The aggregate fair value of all of the CMRT assets, including funds of Contran and its other affiliates that also invest in the CMRT, and supplemental asset mix details of the CMRT are as follows:

	December 31,
	2012			2013
	(In millions)
CMRT asset value	$	726.4		$	722.8
CMRT fair value input:
Level 1		82	%		79	%
Level 2		1			4
Level 3		17			17
		100	%		100	%
CMRT asset mix:
Domestic equities, principally publicly traded		43	%		53	%
International equities, publicly traded		2			—
Fixed income securities, publicly traded		12			35
Privately managed limited partnerships		8			11
Other, primarily cash		35			1
		100	%		100	%

OPEB

Schedule of Defined Benefit Plan Expected Future Payments

Postretirement benefits other than pensions (OPEB). NL, Kronos and Tremont provide certain health care and life insurance benefits for their eligible retired employees. We have no OPEB plan assets, rather, we fund benefit payments as they are paid. At December 31, 2013, we expect to contribute the equivalent of approximately $1.5 million to all of our OPEB plans during 2014. Benefit payments to OPEB plan participants are expected to be the equivalent of:

2014	$	1.5 million
2015		1.4 million
2016		1.3 million
2017		1.2 million
2018		1.1 million
Next 5 years		4.9 million

Schedule of Funded Status

The funded status of our OPEB plans is presented in the table below.

	Years ended December 31,
	2012			2013
	(In millions)
Actuarial present value of accumulated OPEB obligations:
Balance at beginning of the year	$	22.1		$	22.7
Service cost		.3			.3
Interest cost		.8			.7
Actuarial loss (gain)		.4			(2.2	)
Plan amendment		—			(4.4	)
Curtailment		—			(.1	)
Change in currency exchange rates		.3			(.8	)
Benefits paid from employer contributions		(1.2	)		(1.1	)
Balance at end of the year	$	22.7		$	15.1
Fair value of plan assets		—			—
Funded status	$	(22.7	)	$	(15.1	)
Accrued OPEB costs recognized in the Consolidated Balance Sheets:
Current	$	(1.5	)	$	(1.4	)
Noncurrent		(21.2	)		(13.7	)
Total		(22.7	)		(15.1	)
Accumulated other comprehensive income (loss):
Net actuarial loss		3.8			1.6
Prior service credit		(10.5	)		(12.6	)
Total		(6.7	)		(11.0	)
Total	$	(29.4	)	$	(26.1	)

Components of Net Periodic Defined Benefit Cost (Credit)

The components of our periodic OPEB cost are presented in the table below. The amounts shown below for the amortization of unrecognized actuarial loss and prior service credit for 2011, 2012 and 2013 were recognized as components of our accumulated other comprehensive income (loss) at December 31, 2011, 2012 and 2013, respectively, net of deferred income taxes and noncontrolling interest.

	Years ended December 31,
	2011			2012			2013
	(In millions)
Net periodic OPEB cost (credit):
Service cost	$	.2		$	.3		$	.3
Interest cost		1.0			.8			.7
Curtailment gain		—			—			(.6	)
Amortization of unrecognized prior service credit		(2.3	)		(1.8	)		(1.8	)
Total	$	(1.1	)	$	(.7	)	$	(1.4	)

Summary of Actuarial Assumptions Used to Determine the Benefit Obligation and Net Benefit Cost

A summary of our key actuarial assumptions used to determine the net benefit obligations as of December 31, 2012 and 2013 follows:

	December 31,
	2012	2013
Healthcare inflation:
Initial rate	7.0%	7.0%
Ultimate rate	5.0%	5.0%
Year of ultimate rate achievement	2018	2020
Discount rate	3.47%	4.0%

Schedule of Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss)

The amounts shown in the table above for unrecognized actuarial losses and prior service credit at December 31, 2012 and 2013 have not been recognized as components of our periodic OPEB cost as of those dates. These amounts will be recognized as components of our periodic OPEB cost in future years. These amounts, net of deferred income taxes and noncontrolling interest, are now recognized in our accumulated other comprehensive income (loss) at December 31, 2012 and 2013. We expect to recognize approximately $2.1 million of prior service credit as a component of our periodic OPEB cost in 2014. The table below details the changes in other comprehensive income (loss) during 2011, 2012 and 2013.  In the fourth quarter of 2013, we amended the benefit formula for most Canadian participants of our plans effective January 1, 2014, resulting in a curtailment gain as of December 31, 2013.  Key assumptions including the service cost and benefit duration at December 31, 2013 now reflect these plan revisions to the benefit formula.

	Years ended December 31,
	2011			2012			2013
	(In millions)
Changes in benefit obligations recognized in other  comprehensive income (loss):
Net actuarial gain (loss) arising during the year	$	(.9	)	$	(.4	)	$	2.2
Plan amendments/curtailment		—			—			4.5
Amortization of unrecognized prior service credit		(2.3	)		(1.8	)		(2.4	)
Total	$	(3.2	)	$	(2.2	)	$	4.3