Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2017

Defined Benefit Pension Plans

Schedule of Defined Benefit Plan Expected Future Payments

Benefit payments to plan participants out of plan assets are expected to be the equivalent of:

2018	$	25.9 million
2019		26.5 million
2020		27.7 million
2021		27.8 million
2022		29.0 million
Next 5 years		157.3 million

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

The table below details the changes in other comprehensive income (loss) during 2015, 2016 and 2017.

	Years ended December 31,
	2015		2016			2017
	(In millions)
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
Net actuarial gain (loss)	$	.3	$	(38.0	)	$	4.0
Amortization of unrecognized:
Prior service cost		.4		.3			.3
Net actuarial losses		15.4		13.3			15.2
Total	$	16.1	$	(24.4	)	$	19.5

Composition of Pension Plan Assets

The composition of our December 31, 2016 and 2017 pension plan assets by asset category and 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, 2016
	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In millions)
Germany	$	217.0	$	—	$	—	$	217.0
Canada:
Local currency equities		14.8		14.8		—		—
Foreign currency equities		19.7		19.7		—		—
Local currency fixed income		59.5		59.5		—		—
Cash and other		.4		.4		—		—
Norway:
Local currency equities		1.6		1.6		—		—
Foreign currency equities		4.1		4.1		—		—
Local currency fixed income		23.2		23.2		—		—
Foreign currency fixed income		5.4		5.4		—		—
Real estate		4.2		—		—		4.2
Cash and other		9.9		8.8				1.1
US —  CMRT		45.6		—		45.6		—
Other		22.0		13.8		—		8.2
Total	$	427.4	$	151.3	$	45.6	$	230.5

	Fair Value Measurements at December 31, 2017
	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In millions)
Germany	$	257.9	$	—	$	—	$	257.9
Canada:
Local currency equities		8.4		8.4		—		—
Foreign currency equities		16.4		16.4		—		—
Local currency fixed income		81.8		81.8		—		—
Cash and other		.3		.3		—		—
Norway:
Local currency equities		1.8		1.8		—		—
Foreign currency equities		4.6		4.6		—		—
Local currency fixed income		21.0		21.0		—		—
Foreign currency fixed income		6.8		6.8		—		—
Real estate		4.7		—		—		4.7
Cash and other		15.4		14.5		—		.9
US —  CMRT		46.5		—		46.5		—
Other		26.1		16.0		—		10.1
Total	$	491.7	$	171.6	$	46.5	$	273.6

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,
	2016			2017
	(In millions)
Fair value at beginning of year	$	236.2		$	230.5
Gain on assets held at end of year		4.1			11.0
Gain on assets sold during the year		—			.2
Assets purchased		13.1			13.4
Assets sold		(13.4	)		(13.8	)
Currency exchange rate fluctuations		(9.5	)		32.3
Fair value at end of year	$	230.5		$	273.6

Defined Benefit Pension Plans | U.S.

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,
	2016			2017
	(In millions)
Change in projected benefit obligations (“PBO”):
Balance at beginning of the year	$	66.6		$	62.8
Interest cost		2.7			2.5
Actuarial  losses (gains)		(2.3	)		1.9
Benefits paid		(4.2	)		(4.2	)
Balance at end of the year	$	62.8		$	63.0
Change in plan assets:
Fair value at beginning of the year	$	47.6		$	45.6
Actual return on plan assets		2.1			4.0
Employer contributions		.1			1.1
Benefits paid		(4.2	)		(4.2	)
Fair value at end of year	$	45.6		$	46.5
Funded status	$	(17.2	)	$	(16.5	)
Amounts recognized in the Consolidated Balance Sheets:
Accrued pension costs:
Current	$	(.2	)	$	(.3	)
Noncurrent		(17.0	)		(16.2	)
Total		(17.2	)		(16.5	)
Accumulated other comprehensive loss—
Actuarial loss		39.3			37.2
Total	$	22.1		$	20.7
Accumulated benefit obligations (“ABO”)	$	62.8		$	63.0

Components of Net Periodic Defined Benefit Cost (Credit)

The components of our net periodic defined benefit pension benefit cost for U.S. plans are presented in the table below. The amounts shown below for the amortization of unrecognized actuarial losses for 2015, 2016 and 2017 were recognized as components of our accumulated other comprehensive income (loss) at December 31, 2014, 2015 and 2016, respectively, net of deferred income taxes and noncontrolling interest.

	Years ended December 31,
	2015			2016			2017
	(In millions)
Net periodic pension benefit cost (credit) for U.S. plans:
Interest cost	$	2.7		$	2.7		$	2.5
Expected return on plan assets		(3.9	)		(3.4	)		(3.3	)
Amortization of unrecognized net actuarial loss		1.7			1.9			2.0
Total	$	.5		$	1.2		$	1.2

Schedule of Plans for which Accumulated Benefit Obligations Exceeds Plan Assets

Information concerning certain of our U.S. defined benefit pension plans (for which the ABO exceeds the fair value of plan assets as of the indicated date) is presented in the table below.

	December 31,
	2016		2017
	(In millions)
Plans for which the ABO exceeds plan assets:
Projected benefit obligations	$	62.8	$	63.0
Accumulated benefit obligations		62.8		63.0
Fair value of plan assets		45.6		46.5

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 2015, 2016 and 2017 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	2015			2016			2017
Discount rate		3.8	%		4.1	%		3.9	%
Long-term return on plan assets		7.5	%		7.5	%		7.5	%

Defined Benefit Pension Plans | Foreign

Schedule of Funded Status

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

	Years ended December 31,
	2016			2017
	(In millions)
Change in PBO:
Balance at beginning of the year	$	578.9		$	603.4
Service cost		9.9			11.4
Interest cost		15.1			13.4
Participants’ contributions		1.5			1.5
Actuarial loss		35.6			9.3
Plan settlement		—			(.3	)
Change in currency exchange rates		(16.8	)		73.7
Benefits paid		(20.8	)		(21.2	)
Balance at end of the year	$	603.4		$	691.2
Change in plan assets:
Fair value at beginning of the year	$	382.5		$	381.8
Actual return on plan assets		12.2			24.1
Employer contributions		15.3			16.0
Participants’ contributions		1.5			1.5
Change in currency exchange rates		(8.9	)		43.0
Benefits paid		(20.8	)		(21.2	)
Fair value at end of year	$	381.8		$	445.2
Funded status	$	(221.6	)	$	(246.0	)
Amounts recognized in the Consolidated Balance Sheets:
Pension asset	$	1.6		$	4.2
Accrued pension costs:
Noncurrent		(223.2	)		(250.2	)
Total		(221.6	)		(246.0	)
Accumulated other comprehensive loss:
Actuarial loss		261.2			242.8
Prior service cost		1.7			1.5
Total		262.9			244.3
Total	$	41.3		$	(1.7	)
ABO	$	578.8		$	664.7

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.

	Years ended December 31,
	2015			2016			2017
	(In millions)
Net periodic pension cost for foreign plans:
Service cost	$	11.2		$	9.9		$	11.4
Interest cost		15.1			15.1			13.4
Settlement loss		—			—			.1
Expected return on plan assets		(17.3	)		(14.9	)		(9.7	)
Amortization of unrecognized:
Prior service cost		.4			.2			.3
Net actuarial loss		13.8			11.4			13.2
Total	$	23.2		$	21.7		$	28.7

Schedule of Plans for which Accumulated Benefit Obligations Exceeds Plan Assets

Information concerning certain of our non-U.S. defined benefit pension plans (for which the ABO exceeds the fair value of plan assets as of the indicated date) is presented in the table below.

	December 31,
	2016		2017
	(In millions)
Plans for which the ABO exceeds plan assets:
Projected benefit obligations	$	541.5	$	625.1
Accumulated benefit obligations		521.8		603.8
Fair value of plan assets		319.5		375.0

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, 2016 and 2017 was:

	December 31,
Rate	2016			2017
Discount rate		2.1	%		2.1	%
Increase in future compensation levels		2.6	%		2.6	%

A summary of our key actuarial assumptions used to determine foreign net periodic benefit cost for 2015, 2016 and 2017 are as follows:

	Years ended December 31,
Rate	2015			2016			2017
Discount rate		2.5	%		2.6	%		2.1	%
Increase in future compensation levels		2.6	%		2.9	%		2.6	%
Long-term return on plan assets		4.6	%		3.9	%		2.5	%

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 any time based on the most recent value and (ii) observable inputs from Level 1 or Level 2 (or assets not subject to classification in the fair value hierarchy) were used to value approximately 92% and 93% of the assets of the CMRT at December 31, 2016 and 2017, respectively, as noted below.  CMRT assets not subject to classification in the fair value hierarchy consist principally of certain investments measured at net asset value per share in accordance with ASC 820-10.  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,
	2016				2017
	(In millions)
CMRT asset value	$	637.8		$	672.4
CMRT assets comprised of:
Assets not subject to fair value hierarchy		30	%		31	%
Assets subject to fair value hierarchy:
Level 1		54			54
Level 2		8			8
Level 3		8			7
		100	%		100	%
CMRT asset mix:
Domestic equities, principally publicly traded		31	%		33	%
International equities, principally publicly traded		22			25
Fixed income securities, principally publicly traded		36			31
Privately managed limited partnerships		5			4
Hedge funds		5			5
Other, primarily cash		1			2
		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 Canadian and U.S. retired employees. Certain of our Canadian employees may become eligible for such postretirement health care and life insurance benefits if they reach retirement age while working for us.  In the U.S., employees who retired after 1998 are not entitled to any such benefits.  The majority of all retirees are required to contribute a portion of the cost of their benefits and certain current and future retirees are eligible for reduced health care benefits at age 65.  We have no OPEB plan assets, rather, we fund medical claims as they are paid. At December 31, 2017, we expect to contribute the equivalent of approximately $1.0 million to all of our OPEB plans during 2018. Benefit payments to OPEB plan participants are expected to be the equivalent of:

2018	$	1.0 million
2019		.9 million
2020		.9 million
2021		.8 million
2022		.8 million
Next 5 years		3.4 million

Schedule of Funded Status

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

	Years ended December 31,
	2016			2017
	(In millions)
Actuarial present value of accumulated OPEB obligations:
Obligations at beginning of the year	$	12.9		$	12.2
Service cost		.1			.1
Interest cost		.5			.4
Actuarial  gain		(.5	)		—
Change in currency exchange rates		.2			.5
Benefits paid from employer contributions		(1.0	)		(.9	)
Obligations at end of the year		12.2		$	12.3
Fair value of plan assets		—			—
Funded status	$	(12.2	)	$	(12.3	)
Accrued OPEB costs recognized in the Consolidated Balance Sheets:
Current	$	(1.1	)	$	(1.0	)
Noncurrent		(11.1	)		(11.3	)
Total		(12.2	)		(12.3	)
Accumulated other comprehensive (income) loss:
Net actuarial losses		1.9			2.2
Prior service credit		(6.8	)		(5.7	)
Total		(4.9	)		(3.5	)
Total	$	(17.1	)	$	(15.8	)

Components of Net Periodic Defined Benefit Cost (Credit)

The components of our periodic OPEB costs are presented in the table below.  The amounts shown below for amortization of prior service credit and recognized actuarial gains for 2015, 2016 and 2017 were recognized as components of our accumulated other comprehensive income (loss) at December 31, 2014, 2015 and 2016, respectively, net of deferred income taxes and noncontrolling interest.  

	Years ended December 31,
	2015			2016			2017
	(In millions)
Net periodic OPEB cost (credit):
Service cost	$	.1		$	.1		$	.1
Interest cost		.5			.5			.4
Amortization of prior service credit		(1.9	)		(1.8	)		(1.1	)
Recognized net actuarial gain		—			(.1	)		(.2	)
Total	$	(1.3	)	$	(1.3	)	$	(.8	)

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, 2016 and 2017 follows:

	December 31,
	2016			2017
Healthcare inflation:
Initial rate		7.0	%		6.25 – 6.5	%
Ultimate rate		5.0	%		5.0	%
Year of ultimate rate achievement		2021			2021
Discount rate		3.4	%		3.1	%

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

The table below details the changes in other comprehensive income (loss) during 2015, 2016 and 2017.  

	Years ended December 31,
	2015			2016			2017
	(In millions)
Changes in benefit obligations recognized in other comprehensive income (loss):
Net actuarial losses (gains) arising during the year	$	.8		$	.5		$	(.2	)
Plan amendments/curtailment		—			(.1	)		—
Amortization of unrecognized prior service credit		(1.9	)		(1.8	)		(1.1	)
Total	$	(1.1	)	$	(1.4	)	$	(1.3	)