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Business Segment Information
9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Business Segment Information

Note 2—Business segment information:

 

Business segment

  

Entity

  

% controlled at
September 30, 2019

 

Chemicals

  

Kronos

  

80 

Component products

  

CompX

  

86 

Real estate management and development

 

BMI and LandWell

 

63 – 77

%

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. We own 63% of BMI.  Our control of LandWell includes the 27% we hold directly and 50% held by BMI.  

 

 

 

Three months ended

 

 

Nine months ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2018

 

 

2019

 

 

2018

 

 

2019

 

 

 

(unaudited)

 

 

 

(In millions)

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chemicals

 

$

410.3

 

 

$

437.4

 

 

$

1,312.5

 

 

$

1,358.4

 

Component products

 

 

30.0

 

 

 

29.7

 

 

 

90.8

 

 

 

94.6

 

Real estate management and development

 

 

14.9

 

 

 

8.1

 

 

 

28.1

 

 

 

30.5

 

Total net sales

 

$

455.2

 

 

$

475.2

 

 

$

1,431.4

 

 

$

1,483.5

 

Cost of sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chemicals

 

$

291.7

 

 

$

350.3

 

 

$

848.3

 

 

$

1,053.4

 

Component products

 

 

20.4

 

 

 

20.2

 

 

 

60.5

 

 

 

64.6

 

Real estate management and development

 

 

10.4

 

 

 

6.3

 

 

 

20.6

 

 

 

22.0

 

Total cost of sales

 

$

322.5

 

 

$

376.8

 

 

$

929.4

 

 

$

1,140.0

 

Gross margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chemicals

 

$

118.6

 

 

$

87.1

 

 

$

464.2

 

 

$

305.0

 

Component products

 

 

9.6

 

 

 

9.5

 

 

 

30.3

 

 

 

30.0

 

Real estate management and development

 

 

4.5

 

 

 

1.8

 

 

 

7.5

 

 

 

8.5

 

Total gross margin

 

$

132.7

 

 

$

98.4

 

 

$

502.0

 

 

$

343.5

 

Operating income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chemicals

 

$

61.0

 

 

$

36.3

 

 

$

295.2

 

 

$

139.6

 

Component products

 

 

4.5

 

 

 

4.3

 

 

 

14.9

 

 

 

14.3

 

Real estate management and development

 

 

3.7

 

 

 

.8

 

 

 

7.9

 

 

 

13.7

 

Total operating income

 

 

69.2

 

 

 

41.4

 

 

 

318.0

 

 

 

167.6

 

General corporate items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities earnings

 

 

19.3

 

 

 

2.6

 

 

 

36.1

 

 

 

9.0

 

Insurance recoveries

 

 

.5

 

 

 

.2

 

 

 

.9

 

 

 

5.2

 

Gain on land sales

 

 

-

 

 

 

4.4

 

 

 

12.5

 

 

 

4.4

 

Changes in market value of Valhi common stock

  held by subsidiaries

 

 

(7.1

)

 

 

(3.1

)

 

 

(11.2

)

 

 

(.1

)

Other components of net periodic pension and

  OPEB expense

 

 

(3.7

)

 

 

(4.1

)

 

 

(11.2

)

 

 

(12.3

)

Litigation settlement expense

 

 

-

 

 

 

.3

 

 

 

(62.0

)

 

 

(19.3

)

General expenses, net

 

 

(7.3

)

 

 

(9.5

)

 

 

(32.4

)

 

 

(28.2

)

Interest expense

 

 

(14.0

)

 

 

(10.3

)

 

 

(45.4

)

 

 

(30.7

)

Income from continuing operations before

  income taxes

 

$

56.9

 

 

$

21.9

 

 

$

205.3

 

 

$

95.6

 

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 income is included in the determination of Real Estate Management and Development operating income. See Note 12.