10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended March 31, 2015

Commission file number 1-640

NL INDUSTRIES, INC.

(Exact name of Registrant as specified in its charter)

New Jersey	13-5267260
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

5430 LBJ Freeway, Suite 1700

Dallas, Texas 75240-2697

(Address of principal executive offices)

Registrant’s telephone number, including area code: (972) 233-1700

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No   ¨

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934).    Large accelerated filer  ¨    Accelerated filer  x    Non-accelerated filer  ¨    Smaller reporting company  ¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  ¨    No  x

Number of shares of the Registrant’s common stock outstanding on April 30, 2015: 48,682,884.

NL INDUSTRIES, INC. AND SUBSIDIARIES

INDEX

		Page number
Part I.	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets - December 31, 2014;  March 31, 2015 (unaudited)	3
	Condensed Consolidated Statements of Income  (unaudited) - Three months ended March  31, 2014 and 2015	5
	Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - Three months ended March 31, 2014 and 2015	6
	Condensed Consolidated Statement of  Equity (unaudited) - Three months ended March 31, 2015	7
	Condensed Consolidated Statements of Cash Flows (unaudited) -  Three months ended March 31, 2014 and 2015	8
	Notes to Condensed Consolidated Financial Statements (unaudited)	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosure About Market Risk	36
Item 4.	Controls and Procedures	37
Part II.	OTHER INFORMATION
Item 1.	Legal Proceedings	37
Item 1A.	Risk Factors	38
Item 6.	Exhibits	38

Items 2, 3, 4 and 5 of Part II are omitted because there is no information to report.

2

NL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

	December 31,		March 31,
	2014		2015
			(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	72,560	$	73,202
Restricted cash and cash equivalents		3,995		3,420
Accounts and other receivables, net		9,256		12,441
Inventories, net		16,863		16,824
Prepaid expenses and other		792		824
Deferred income taxes		4,567		4,567
Total current assets		108,033		111,278
Other assets:
Marketable securities		92,131		89,544
Investment in Kronos Worldwide, Inc.		237,719		218,695
Goodwill		27,156		27,156
Other assets, net		2,143		2,145
Deferred income taxes		20		20
Total other assets		359,169		337,560
Property and equipment:
Land		5,138		5,138
Buildings		21,176		21,176
Equipment		62,264		62,832
Construction in progress		909		1,140
		89,487		90,286
Less accumulated depreciation		55,931		56,811
Net property and equipment		33,556		33,475
Total assets	$	500,758	$	482,313

3

NL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(In thousands)

	December 31,			March 31,
	2014			2015
				(unaudited)
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	6,115		$	5,270
Accrued and other current liabilities		11,521			7,825
Accrued environmental remediation and related costs		6,984			7,044
Income taxes		7			14
Total current liabilities		24,627			20,153
Noncurrent liabilities:
Accrued pension cost		12,242			11,760
Accrued postretirement benefits (OPEB) costs		3,341			3,210
Accrued environmental remediation and related costs		103,031			102,791
Deferred income taxes		87,725			83,145
Other		18,342			13,676
Total noncurrent liabilities		224,681			214,582
Equity:
NL stockholders' equity:
Common stock		6,085			6,085
Additional paid-in capital		300,388			300,388
Retained earnings		112,588			122,630
Accumulated other comprehensive loss		(182,039	)		(196,186	)
Total NL stockholders' equity		237,022			232,917
Noncontrolling interest in subsidiary		14,428			14,661
Total equity		251,450			247,578
Total liabilities and equity	$	500,758		$	482,313

Commitments and contingencies (Notes 12 and 13)

See accompanying notes to Condensed Consolidated Financial Statements.

4

NL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

	Three months ended
	March 31,
	2014			2015
	(unaudited)
Net sales	$	25,781		$	27,891
Cost of sales		18,032			19,325
Gross margin		7,749			8,566
Selling, general and administrative expense		4,461			4,866
Other operating income (expense):
Insurance recoveries		787			3,134
Other income		131			-
Corporate expense		(4,270	)		(3,830	)
Income (loss) from operations		(64	)		3,004
Equity in earnings of Kronos Worldwide, Inc.		4,343			5,605
Other income:
Interest and dividend income		725			302
Income before income taxes		5,004			8,911
Income tax expense  (benefit)		970			(1,446	)
Net income		4,034			10,357
Noncontrolling interest in net income of subsidiary		279			315
Net income attributable to NL stockholders	$	3,755		$	10,042
Amounts attributable to NL stockholders:
Basic and diluted net income per share	$	.08		$	.21
Weighted average shares used in the calculation of net income per share		48,674			48,683

See accompanying notes to Condensed Consolidated Financial Statements.

5

NL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

	Three months ended
	March 31,
	2014			2015
	(unaudited)
Net income	$	4,034		$	10,357
Other comprehensive income (loss), net of tax:
Marketable securities		(83,931	)		(1,786	)
Currency translation		(514	)		(12,959	)
Defined benefit pension plans		537			734
Other postretirement benefit plans		(157	)		(136	)
Total other comprehensive loss, net		(84,065	)		(14,147	)
Comprehensive loss		(80,031	)		(3,790	)
Comprehensive income attributable to noncontrolling interest		279			315
Comprehensive loss attributable to NL stockholders	$	(80,310	)	$	(4,105	)

See accompanying notes to Condensed Consolidated Financial Statements.

6

NL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF EQUITY

Three months ended March 31, 2015

(In thousands)

							Accumulated
			Additional				other			Noncontrolling
	Common		paid-in		Retained		comprehensive			interest in			Total
	stock		capital		earnings		loss			subsidiary			equity
	(unaudited)
Balance at December 31, 2014	$	6,085	$	300,388	$	112,588	$	(182,039	)	$	14,428		$	251,450
Net income		-		-		10,042		-			315			10,357
Other comprehensive loss, net of tax		-		-		-		(14,147	)		-			(14,147	)
Dividends		-		-		-		-			(82	)		(82	)
Balance at March 31, 2015	$	6,085	$	300,388	$	122,630	$	(196,186	)	$	14,661		$	247,578

See accompanying notes to Condensed Consolidated Financial Statements.

7

NL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Three months ended
	March 31,
	2014			2015
	(unaudited)
Cash flows from operating activities:
Net income	$	4,034		$	10,357
Depreciation and amortization		895			902
Deferred income taxes		369			3,039
Equity in earnings of Kronos Worldwide, Inc.		(4,343	)		(5,605	)
Dividends received from Kronos Worldwide, Inc.		5,283			5,283
Cash funding of benefit plans in excess of net benefit plan expense		(168	)		(452	)
Other, net		85			82
Change in assets and liabilities:
Accounts and other receivables, net		(2,628	)		(3,191	)
Inventories, net		(1,970	)		(34	)
Prepaid expenses and other		111			(31	)
Accounts payable and accrued liabilities		(703	)		(4,134	)
Income taxes		8			7
Accounts with affiliates		706			(430	)
Accrued environmental remediation and related costs		(409	)		(180	)
Other noncurrent assets and liabilities, net		(571	)		(4,672	)
Net cash provided by operating activities		699			941
Cash flows from investing activities:
Capital expenditures		(752	)		(796	)
Change in restricted cash equivalents, net		99			575
Proceeds from the sale of marketable securities		-			255
Purchase of marketable securities		-			(251	)
Net cash used in investing activities		(653	)		(217	)

8

NL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

(In thousands)

	Three months ended
	March 31,
	2014			2015
	(unaudited)
Cash flows from financing activities -
distributions to noncontrolling interests in subsidiary	$	(82	)	$	(82	)
Cash and cash equivalents - net change from:
Operating, investing and financing activities		(36	)		642
Cash and cash equivalents at beginning of period		52,609			72,560
Cash and cash equivalents at end of period	$	52,573		$	73,202
Supplemental disclosures:
Cash paid for:
Income taxes, net	$	(53	)	$	584

See accompanying notes to Condensed Consolidated Financial Statements.

9

NL INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2015

(unaudited)

Note 1 - Organization and basis of presentation:

Organization - At March 31, 2015, Valhi, Inc.  (NYSE: VHI) held approximately 83% of our outstanding common stock and a wholly-owned subsidiary of Contran Corporation held approximately 93% of Valhi’s outstanding common stock. Substantially all of Contran’s outstanding voting stock is held by family trusts established for the benefit of Lisa K. Simmons and Serena Simmons Connelly, daughters of Harold C. Simmons, and their children (for which Ms. Lisa Simmons and Ms. Connelly are co-trustees) or is held directly by Ms. Lisa Simmons and Ms. Connelly or persons or entities related to them, including their step-mother Annette C. Simmons, the widow of Mr. Simmons.  Prior to his death in December 2013, Mr. Simmons served as sole trustee of the family trusts.  Under a voting agreement entered into by all of the voting stockholders of Contran, effective in February 2014 and as amended, the size of the board of directors of Contran was fixed at five members, Ms. Lisa Simmons, Ms. Connelly and Ms. Annette Simmons (and in the event of their death, their heirs) each has the right to designate one of the five members of the Contran board and the remaining two members of the Contran board must consist of members of Contran management. Ms. Lisa Simmons, Ms. Connelly, and Ms. Annette Simmons each serve as members of the Contran board.  The voting agreement expires in February 2017 (unless Ms. Lisa Simmons, Ms. Connelly and Ms. Annette Simmons otherwise unanimously agree), and the ability of Ms. Lisa Simmons, Ms. Connelly, and Ms. Annette Simmons to each designate one member of the Contran board is dependent upon each of their continued beneficial ownership of at least 5% of the combined voting stock of Contran.  Consequently, Ms. Lisa Simmons, Ms. Connelly and Ms. Annette Simmons may be deemed to control Contran, Valhi and us.

Basis of presentation - Consolidated in this Quarterly Report are the results of our majority-owned subsidiary, CompX International Inc.  We also own 30% of Kronos Worldwide, Inc. (Kronos).  CompX (NYSE MKT: CIX) and Kronos (NYSE: KRO); each file periodic reports with the Securities and Exchange Commission (SEC).

The unaudited Condensed Consolidated Financial Statements contained in this Quarterly Report have been prepared on the same basis as the audited Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2014 that we filed with the SEC on March 12, 2015 (the 2014 Annual Report).  In our opinion, we have made all necessary adjustments (which include only normal recurring adjustments) in order to state fairly, in all material respects, our consolidated financial position, results of operations and cash flows as of the dates and for the periods presented.  We have condensed the Consolidated Balance Sheet and Statement of Stockholders’ Equity at December 31, 2014 contained in this Quarterly Report as compared to our audited Consolidated Financial Statements at that date, and we have omitted certain information and footnote disclosures (including those related to the Consolidated Balance Sheet at December 31, 2014) normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP).  Our results of operations for the interim period ended March 31, 2015 may not be indicative of our operating results for the full year.  The Condensed Consolidated Financial Statements contained in this Quarterly Report should be read in conjunction with our 2014 Consolidated Financial Statements contained in our 2014 Annual Report.

Unless otherwise indicated, references in this report to “NL,” “we,” “us” or “our” refer to NL Industries, Inc. and its subsidiaries and affiliate, Kronos, taken as a whole.

10

Note 2 - Accounts and other receivables, net:

	December 31,			March 31,
	2014			2015
	(In thousands)
Trade receivables - CompX	$	8,825		$	12,253
Accrued insurance recoveries		346			216
Other receivables		163			58
Allowance for doubtful accounts		(78	)		(86	)
Total	$	9,256		$	12,441

Accrued insurance recoveries are discussed in Note 13.

Note 3 - Inventories, net:

	December 31,		March 31,
	2014		2015
	(In thousands)
Raw materials	$	3,393	$	3,318
Work in process		10,271		10,729
Finished products		3,199		2,777
Total	$	16,863	$	16,824

Note 4 - Marketable securities:

	Fair value measurement level	Market value		Cost basis		Unrealized gain
		(In thousands)
December 31, 2014
Valhi common stock	1	$	92,131	$	24,347	$	67,784
March 31, 2015
Valhi common stock	1	$	89,544	$	24,347	$	65,197

At December 31, 2014 and March 31, 2015, we held approximately 14.4 million shares of common stock of our immediate parent company, Valhi.  See Note 1.  We account for our investment in Valhi common stock as available-for-sale marketable equity securities and any unrealized gains or losses on the securities are recognized through other comprehensive income, net of deferred income taxes.  Our shares of Valhi common stock are carried at fair value based on quoted market prices, representing a Level 1 input within the fair value hierarchy.  At December 31, 2014 and March 31, 2015, the quoted per share market price of Valhi common stock was $6.41 and $6.23, respectively.

The Valhi common stock we own is subject to the restrictions on resale pursuant to certain provisions of the SEC Rule 144.  In addition, as a majority-owned subsidiary of Valhi, we cannot vote our shares of Valhi common stock under Delaware General Corporation Law, but we do receive dividends from Valhi on these shares, when declared and paid.

11

Note 5 - Investment in Kronos Worldwide, Inc.:

At December 31, 2014 and March 31, 2015, we owned approximately 35.2 million shares of Kronos common stock.  At March 31, 2015, the quoted market price of Kronos’ common stock was $12.65  per share, or an aggregate market value of $445.5 million.  At December 31, 2014, the quoted market price was $13.02 per share, or an aggregate market value of $458.6 million.

The change in the carrying value of our investment in Kronos during the first three months of 2015 is summarized below.  

	Amount
	(In millions)
Balance at the beginning of the period	$	237.7
Equity in earnings of Kronos		5.6
Dividends received from Kronos		(5.3	)
Equity in Kronos' other comprehensive income:
Marketable securities		(.2	)
Currency translation		(19.9	)
Defined benefit pension plans		.8
Balance at the end of the period	$	218.7

Selected financial information of Kronos is summarized below:

	December 31,		March 31,
	2014		2015
	(In millions)
Current assets	$	886.2	$	817.1
Property and equipment, net		479.7		430.1
Investment in TiO2 joint venture		89.0		77.8
Other noncurrent assets		187.6		179.5
Total assets	$	1,642.5	$	1,504.5
Current liabilities	$	237.9	$	193.8
Long-term debt		344.7		344.7
Accrued pension and postretirement benefits		245.2		216.3
Other noncurrent liabilities		33.6		31.2
Stockholders' equity		781.1		718.5
Total liabilities and stockholders' equity	$	1,642.5	$	1,504.5

12

	Three months ended
	March 31,
	2014		2015
	(In millions)
Net sales	$	420.1	$	365.1
Cost of sales		339.6		287.7
Income from operations		26.0		32.2
Net income		14.3		18.4

Note 6 - Other noncurrent assets, net:

	December 31,		March 31,
	2014		2015
	(In thousands)
Restricted cash	$	1,420	$	1,420
Assets held for sale		590		590
Other		133		135
Total	$	2,143	$	2,145

Note 7 - Accrued and other current liabilities:

	December 31,		March 31,
	2014		2015
	(In thousands)
Employee benefits	$	8,278	$	4,517
Professional fees		951		1,379
Payables to affiliates		659		229
Other		1,633		1,700
Total	$	11,521	$	7,825

Note 8 - Long-term debt:

During the first three months of 2015, we had no borrowings under our promissory note with Valhi, and at March 31, 2015, the full $40 million was available for borrowing under this facility.  The amount of any such loan Valhi would make to us is at Valhi’s discretion.

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Note 9 - Other noncurrent liabilities:

	December 31,		March 31,
	2014		2015
	(In thousands)
Reserve for uncertain tax positions	$	16,832	$	12,186
Insurance claims and expenses		589		604
Other		921		886
Total	$	18,342	$	13,676

Our reserve for uncertain tax positions is discussed in Note 12.

Note 10 - Employee benefit plans:

Defined benefit plans - The components of net periodic defined benefit pension cost (income) are presented in the table below.

	Three months ended
	March 31,
	2014			2015
	(In thousands)
Interest cost	$	628		$	569
Expected return on plan assets		(852	)		(801	)
Recognized actuarial losses		232			326
Total	$	8		$	94

Postretirement benefits - The components of net periodic postretirement benefits other than pension (OPEB) income are presented in the table below.

	Three months ended
	March 31,
	2014			2015
	(In thousands)
Interest cost	$	29		$	27
Amortization of prior service credit		(161	)		(155	)
Recognized actuarial gain		(44	)		(25	)
Total	$	(176	)	$	(153	)

Contributions - We currently expect our 2015 contributions to our defined benefit pension plans and other postretirement plans to be approximately $1.3 million.

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Note 11 - Other comprehensive income (loss):

Changes in accumulated other comprehensive loss attributable to NL stockholders for the three months ended March 31, 2015 are presented in the table below.

	Three months ended
	March 31,
	2014			2015
	(In thousands)
Accumulated other comprehensive loss, net of tax:
Marketable securities:
Balance at beginning of period	$	154,169		$	47,112
Other comprehensive loss -
unrealized losses arising during the year		(83,931	)		(1,786	)
Balance at end of period	$	70,238		$	45,326
Currency translation:
Balance at beginning of period	$	(133,816	)	$	(154,173	)
Other comprehensive loss		(514	)		(12,959	)
Balance at end of period	$	(134,330	)	$	(167,132	)
Defined benefit pension plans:
Balance at beginning of period	$	(56,644	)	$	(75,260	)
Other comprehensive income -
amortization of net losses
included in net periodic pension cost		537			734
Balance at end of period	$	(56,107	)	$	(74,526	)
OPEB plans:
Balance at beginning of period	$	1,275		$	282
Other comprehensive loss -
amortization of prior service credit and net gains
included in net periodic OPEB cost		(157	)		(136	)
Balance at end of period	$	1,118		$	146
Total accumulated other comprehensive loss:
Balance at beginning of period	$	(35,016	)	$	(182,039	)
Other comprehensive loss		(84,065	)		(14,147	)
Balance at end of period	$	(119,081	)	$	(196,186	)

See Note 10 for amounts related to our defined benefit pension plans and OPEB plans.

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Note 12 - Income taxes:

	Three months ended
	March 31,
	2014			2015
	(In millions)
Expected tax expense, at U.S. federal statutory income tax rate of 35%	$	1.8		$	3.1
Incremental U.S. tax and rate differences on equity in earnings		(1.0	)		(1.5	)
Adjustment to the reserve for uncertain tax positions, net		-			(3.0	)
Nontaxable income		(.3	)		(.1	)
U.S. state income taxes and other, net		.5			.1
Total	$	1.0		$	(1.4	)

	Three months ended
	March 31,
	2014			2015
	(In millions)
Comprehensive provision (benefit) for income taxes allocable to:
Net income (loss)	$	1.0		$	(1.4	)
Other comprehensive income (loss):
Marketable securities		(45.2	)		(1.0	)
Currency translation		(.3	)		(7.0	)
Pension plans		.3			.4
OPEB plans		(.1	)		(.1	)
Total	$	(44.3	)	$	(9.1	)

Tax authorities are examining certain of our U.S. and non-U.S. tax returns, including those of Kronos, and tax authorities have or may propose tax deficiencies, including penalties and interest.  We cannot guarantee these tax matters will be resolved in our favor due to the inherent uncertainties involved in settlement initiatives and court and tax proceedings.  We believe 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.

In the first quarter of 2015, we recognized a non-cash income tax benefit of $3.0 million related to the release of a portion of our reserve for uncertain tax positions due to the expiration of the applicable statute of limitations. We currently estimate that our unrecognized tax benefits will not change materially during the next twelve months.  

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Note 13 - Commitments and contingencies:

Lead pigment litigation

Our former operations included the manufacture of lead pigments for use in paint and lead-based paint.  We, other former manufacturers of lead pigments for use in paint and lead-based paint (together, the “former pigment manufacturers”), and the Lead Industries Association (LIA), which discontinued business operations in 2002, have been named as defendants in various legal proceedings seeking damages for personal injury, property damage and governmental expenditures allegedly caused by the use of lead-based paints.  Certain of these actions have been filed by or on behalf of states, counties, cities or their public housing authorities and school districts, and certain others have been asserted as class actions.  These lawsuits seek recovery under a variety of theories, including public and private nuisance, negligent product design, negligent failure to warn, strict liability, breach of warranty, conspiracy/concert of action, aiding and abetting, enterprise liability, market share or risk contribution liability, intentional tort, fraud and misrepresentation, violations of state consumer protection statutes, supplier negligence and similar claims.

The plaintiffs in these actions generally seek to impose on the defendants responsibility for lead paint abatement and health concerns associated with the use of lead-based paints, including damages for personal injury, contribution and/or indemnification for medical expenses, medical monitoring expenses and costs for educational programs.  To the extent the plaintiffs seek compensatory or punitive damages in these actions, such damages are generally unspecified.  In some cases, the damages are unspecified pursuant to the requirements of applicable state law.  A number of cases are inactive or have been dismissed or withdrawn.  Most of the remaining cases are in various pre-trial stages.  Some are on appeal following dismissal or summary judgment rulings or a trial verdict in favor of either the defendants or the plaintiffs.  

We believe that these actions are without merit, and we intend to continue to deny all allegations of wrongdoing and liability and to defend against all actions vigorously.  We do not believe it is probable that we have incurred any liability with respect to all of the lead pigment litigation cases to which we are a party, and liability to us that may result, if any, in this regard cannot be reasonably estimated, because:

● we have never settled any of the market share, intentional tort, fraud, nuisance, supplier negligence, breach of warranty, conspiracy, misrepresentation, aiding and abetting, enterprise liability, or statutory cases,

● no final, non-appealable adverse verdicts have ever been entered against us, and

● we have never ultimately been found liable with respect to any such litigation matters, including over 100 cases over a twenty-year period for which we were previously a party and for which we have been dismissed without any finding of liability.

Accordingly, we have not accrued any amounts for any of the pending lead pigment and lead-based paint litigation cases filed by or on behalf of states, counties, cities or their public housing authorities and school districts, or those asserted as class actions. In addition, we have determined that liability to us which may result, if any, cannot be reasonably estimated because there is no prior history of a loss of this nature on which an estimate could be made and there is no substantive information available upon which an estimate could be based.

17

In one of these lead pigment cases, in April 2000 we were served with a complaint in County of Santa Clara v. Atlantic Richfield Company, et al. (Superior Court of the State of California, County of Santa Clara, Case No. 1-00-CV-788657) brought by a number of California government entities against the former pigment manufacturers, the LIA and certain paint manufacturers.  The County of Santa Clara sought to recover compensatory damages for funds the plaintiffs have expended or will in the future expend for medical treatment, educational expenses, abatement or other costs due to exposure to, or potential exposure to, lead paint, disgorgement of profit, and punitive damages.  In July 2003, the trial judge granted defendants’ motion to dismiss all remaining claims.  Plaintiffs appealed and the intermediate appellate court reinstated public nuisance, negligence, strict liability, and fraud claims in March 2006.  A fourth amended complaint was filed in March 2011 on behalf of The People of California by the County Attorneys of Alameda, Ventura, Solano, San Mateo, Los Angeles and Santa Clara, and the City Attorneys of San Francisco, San Diego and Oakland.  That complaint alleged that the presence of lead paint created a public nuisance in each of the prosecuting jurisdictions and seeks its abatement.  In July and August 2013, the case was tried.  In January 2014, the Judge issued a judgment finding us, The Sherwin Williams Company and ConAgra Grocery Products Company jointly and severally liable for the abatement of lead paint in pre-1980 homes, and ordered the defendants to pay an aggregate $1.15 billion to the State of California to fund such abatement.  In February 2014, we filed a motion for a new trial, and in March 2014 the court denied the motion.  Subsequently in March 2014, we filed a notice of appeal with the Sixth District Court of Appeal for the State of California and the appeal is proceeding with the appellate court.  NL believes that this judgment is inconsistent with California law and is unsupported by the evidence, and we will defend vigorously against all claims.

The Santa Clara case is unusual in that this is the second time that an adverse verdict in the lead pigment litigation has been entered against NL (the first adverse verdict against NL was ultimately overturned on appeal). We have concluded that the likelihood of a loss in this case has not reached a standard of “probable” as contemplated by ASC 450, given (i) the substantive, substantial and meritorious grounds on which the adverse verdict in the Santa Clara case will be appealed, (ii) the uniqueness of the Santa Clara verdict (i.e. no final, non-appealable verdicts have ever been rendered against us, or any of the other former lead pigment manufacturers, based on the public nuisance theory of liability or otherwise), and (iii) the rejection of the public nuisance theory of liability as it relates to lead pigment matters in many other jurisdictions (no jurisdiction in which a plaintiff has asserted a public nuisance theory of liability has ever successfully been upheld).  In addition, liability that may result, if any, cannot be reasonably estimated, as NL continues to have no basis on which an estimate of liability could be made, as discussed above. However, as with any legal proceeding, there is no assurance that any appeal would be successful, and it is reasonably possible, based on the outcome of the appeals process, that NL may in the future incur some liability resulting in the recognition of a loss contingency accrual that could have a material adverse impact on our results of operations, financial position and liquidity.

New cases may continue to be filed against us.  We cannot assure you that we will not incur liability in the future in respect of any of the pending or possible litigation in view of the inherent uncertainties involved in court and jury rulings.  In the future, if new information regarding such matters becomes available to us (such as a final, non-appealable adverse verdict against us or otherwise ultimately being found liable with respect to such matters), at that time we would consider such information in evaluating any remaining cases then-pending against us as to whether it might then have become probable we have incurred liability with respect to these matters, and whether such liability, if any, could have become reasonably estimable.  The resolution of any of these cases could result in the recognition of a loss contingency accrual that could have a material adverse impact on our net income for the interim or annual period during which such liability is recognized and a material adverse impact on our consolidated financial condition and liquidity.

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Environmental matters and litigation

Our operations are governed by various environmental laws and regulations.  Certain of our businesses are and have been engaged in the handling, manufacture or use of substances or compounds that may be considered toxic or hazardous within the meaning of applicable environmental laws and regulations.  As with other companies engaged in similar businesses, certain of our past and current operations and products have the potential to cause environmental or other damage.  We have implemented and continue to implement various policies and programs in an effort to minimize these risks.  Our policy is to maintain compliance with applicable environmental laws and regulations at all of our plants and to strive to improve environmental performance.  From time to time, we may be subject to environmental regulatory enforcement under U.S. and non-U.S. statutes, the resolution of which typically involves the establishment of compliance programs.  It is possible that future developments, such as stricter requirements of environmental laws and enforcement policies, could adversely affect our production, handling, use, storage, transportation, sale or disposal of such substances.  We believe that all of our facilities are in substantial compliance with applicable environmental laws.

Certain properties and facilities used in our former operations, including divested primary and secondary lead smelters and former mining locations, are the subject of civil litigation, administrative proceedings or investigations arising under federal and state environmental laws and common law.  Additionally, in connection with past operating practices, we are currently involved as a defendant, potentially responsible party (PRP) or both, pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, as amended by the Superfund Amendments and Reauthorization Act (CERCLA), and similar state laws in various governmental and private actions associated with waste disposal sites, mining locations, and facilities that we or our predecessors, our subsidiaries or their predecessors currently or previously owned, operated or used, certain of which are on the United States Environmental Protection Agency’s (EPA) Superfund National Priorities List or similar state lists.  These proceedings seek cleanup costs, damages for personal injury or property damage and/or damages for injury to natural resources.  Certain of these proceedings involve claims for substantial amounts.  Although we may be jointly and severally liable for these costs, in most cases we are only one of a number of PRPs who may also be jointly and severally liable, and among whom costs may be shared or allocated.  In addition, we are occasionally named as a party in a number of personal injury lawsuits filed in various jurisdictions alleging claims related to environmental conditions alleged to have resulted from our operations.

Obligations associated with environmental remediation and related matters are difficult to assess and estimate for numerous reasons including the:

● complexity and differing interpretations of governmental regulations,

● number of PRPs and their ability or willingness to fund such allocation of costs,

● financial capabilities of the PRPs and the allocation of costs among them,

● solvency of other PRPs,

● multiplicity of possible solutions,

● number of years of investigatory, remedial and monitoring activity required,

● uncertainty over the extent, if any, to which our former operations might have contributed to the conditions allegedly giving rise to such personal injury, property damage, natural resource and related claims, and

● number of years between former operations and notice of claims and lack of information and documents about the former operations.

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In addition, the imposition of more stringent standards or requirements under environmental laws or regulations, new developments or changes regarding site cleanup costs or the allocation of costs among PRPs, solvency of other PRPs, the results of future testing and analysis undertaken with respect to certain sites or a determination that we are potentially responsible for the release of hazardous substances at other sites, could cause our expenditures to exceed our current estimates.  We cannot assure you that actual costs will not exceed accrued amounts or the upper end of the range for sites for which estimates have been made, and we cannot assure you that costs will not be incurred for sites where no estimates presently can be made.  Further, additional environmental and related matters may arise in the future.  If we were to incur any future liability, this could have a material adverse effect on our consolidated financial statements, results of operations and liquidity.

We record liabilities related to environmental remediation and related matters when estimated future expenditures are probable and reasonably estimable.  We adjust such accruals as further information becomes available to us or as circumstances change.  Unless the amounts and timing of such estimated future expenditures are fixed and reasonably determinable, we generally do not discount estimated future expenditures to their present value due to the uncertainty of the timing of the payout.  We recognize recoveries of costs from other parties, if any, as assets when their receipt is deemed probable.  At December 31, 2014 and March 31, 2015, we have not recognized any receivables for recoveries.

We do not know and cannot estimate the exact time frame over which we will make payments for our accrued environmental and related costs.  The timing of payments depends upon a number of factors, including but not limited to the timing of the actual remediation process; which in turn depends on factors outside of our control.  At each balance sheet date, we estimate the amount of our accrued environmental and related costs which we expect to pay within the next twelve months, and we classify this estimate as a current liability.  We classify the remaining accrued environmental costs as a noncurrent liability.

Changes in the accrued environmental remediation and related costs during the first three months of 2015 are as follows:

	Amount
	(In thousands)
Balance at the beginning of the period	$	110,015
Additions charged to expense, net		123
Payments, net		(303	)
Balance at the end of the period	$	109,835
Amounts recognized in the Condensed Consolidated
Balance Sheet at the end of the period:
Current liability	$	7,044
Noncurrent liability		102,791
Balance at the end of the period	$	109,835

On a quarterly basis, we evaluate the potential range of our liability for environmental remediation and related costs at sites where we have been named as a PRP or defendant, including sites for which our wholly-owned environmental management subsidiary, NL Environmental Management Services, Inc. (EMS), has contractually assumed our obligations.  At March 31, 2015, we had accrued approximately $110 million related to approximately 47 sites associated with remediation and related matters that we believe are at the present time and/or in their current phase reasonably estimable.  The upper end of the range of reasonably possible costs to us for remediation and related matters for which we believe it is possible to estimate costs is approximately $149 million, including the amount currently accrued.

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We believe that it is not reasonably possible to estimate the range of costs for certain sites.  At March 31, 2015, there were approximately 5 sites for which we are not currently able to reasonably estimate a range of costs.  For these sites, generally the investigation is in the early stages, and we are unable to determine whether or not we actually had any association with the site, the nature of our responsibility, if any, for the contamination at the site and the extent of contamination at and cost to remediate the site. The timing and availability of information on these sites is dependent on events outside of our control, such as when the party alleging liability provides information to us.  At certain of these previously inactive sites, we have received general and special notices of liability from the EPA and/or state agencies alleging that we, sometimes with other PRPs, are liable for past and future costs of remediating environmental contamination allegedly caused by former operations.  These notifications may assert that we, along with any other alleged PRPs, are liable for past and/or future clean-up costs.  As further information becomes available to us for any of these sites, which would allow us to estimate a range of costs, we would at that time adjust our accruals.  Any such adjustment could result in the recognition of an accrual that would have a material effect on our consolidated financial statements, results of operations and liquidity.

Insurance coverage claims

We are involved in certain legal proceedings with a number of our former insurance carriers regarding the nature and extent of the carriers’ obligations to us under insurance policies with respect to certain lead pigment and asbestos lawsuits.  The issue of whether insurance coverage for defense costs or indemnity or both will be found to exist for our lead pigment and asbestos litigation depends upon a variety of factors and we cannot assure you that such insurance coverage will be available.

We have agreements with certain of our former insurance carriers pursuant to which the carriers reimburse us for a portion of our future lead pigment litigation defense costs, and one such carrier reimburses us for a portion of our future asbestos litigation defense costs. We are not able to determine how much we will ultimately recover from these carriers for defense costs incurred by us because of certain issues that arise regarding which defense costs qualify for reimbursement.  While we continue to seek additional insurance recoveries, we do not know if we will be successful in obtaining reimbursement for either defense costs or indemnity.  Accordingly, we recognize insurance recoveries in income only when receipt of the recovery is probable and we are able to reasonably estimate the amount of the recovery.

For a complete discussion of certain litigation involving us and certain of our former insurance carriers, refer to our 2014 Annual Report.

Other litigation

We have been named as a defendant in various lawsuits in several jurisdictions, alleging personal injuries as a result of occupational exposure primarily to products manufactured by our former operations containing asbestos, silica and/or mixed dust. In addition, some plaintiffs allege exposure to asbestos from working in various facilities previously owned and/or operated by us.  There are 166 of these types of cases pending, involving a total of approximately 712 plaintiffs. In addition, the claims of approximately 8,692 plaintiffs have been administratively dismissed or placed on the inactive docket in Ohio, Indiana and Texas state courts.  We do not expect these claims will be re-opened unless the plaintiffs meet the courts’ medical criteria for asbestos-related claims.  We have not accrued any amounts for this litigation because of the uncertainty of liability and inability to reasonably estimate the liability, if any.  To date, we have not been adjudicated liable in any of these matters. Based on information available to us, including:

· facts concerning historical operations,

· the rate of new claims,

· the number of claims from which we have been dismissed, and

· our prior experience in the defense of these matters.

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We believe that the range of reasonably possible outcomes of these matters will be consistent with our historical costs (which are not material).  Furthermore, we do not expect any reasonably possible outcome would involve amounts material to our consolidated financial position, results of operations or liquidity.  We have sought and will continue to vigorously seek, dismissal and/or a finding of no liability from each claim. In addition, from time to time, we have received notices regarding asbestos or silica claims purporting to be brought against former subsidiaries, including notices provided to insurers with which we have entered into settlements extinguishing certain insurance policies.  These insurers may seek indemnification from us. For a discussion of other legal proceedings to which we are a party, refer to our 2014 Annual Report.

In addition to the litigation described above, we and our affiliate are also involved in various other environmental, contractual, product liability, patent (or intellectual property), employment and other claims and disputes incidental to present and former businesses.  In certain cases, we have insurance coverage for these items, although we do not expect additional material insurance coverage for environmental matters.

We currently believe the disposition of all of these various other claims and disputes, individually and in the aggregate, should not have a material adverse effect on our consolidated financial position, results of operations or liquidity beyond the accruals already provided.

Note 14 - Financial instruments and fair value measurements:

See Note 4 for information on how we determine fair value of our marketable securities.

The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure at December 31, 2014 and March 31, 2015:

	December 31, 2014				March 31, 2015
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
	(In thousands)
Cash, cash equivalents and restricted cash	$	77,975	$	77,975	$	78,042	$	78,042
Noncontrolling interest in CompX common stock		14,428		19,936		14,661		18,733
NL stockholders' equity		237,022		418,673		232,917		377,292

The fair value of our noncontrolling interest in CompX and NL stockholder’s equity is based upon quoted market prices at each balance sheet date, which represent Level 1.  Due to their near-term maturities, the carrying amounts of accounts receivable and accounts payable are considered equivalent to fair value.

Note 15 – Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606).  This standard replaces existing revenue recognition guidance, which in many cases was tailored for specific industries, with a uniform accounting standard applicable to all industries and transactions.  The new standard is effective for us beginning in the first quarter of 2017.  Entities may elect to adopt ASU No. 2014-09 retrospectively for all periods for all contracts and transactions which occurred during the period (with a few exceptions for practical expediency) or retrospectively with a cumulative effect recognized as of the date of adoption.  ASU No. 2014-09 is a fundamental rewriting of existing GAAP with respect to revenue recognition, and we are still evaluating the effect the standard will have on our Consolidated Financial Statements.  In addition, we have not yet determined the method we will use to adopt the standard.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS:

Business overview

We are primarily a holding company. We operate in the component products industry through our majority-owned subsidiary, CompX International Inc.  We also own a non-controlling interest in Kronos Worldwide, Inc.  Both CompX (NYSE MKT: CIX) and Kronos (NYSE: KRO) file periodic reports with the Securities and Exchange Commission (SEC).

CompX is a leading manufacturer of engineered components utilized in a variety of applications and industries.  Through its Security Products operations, CompX manufactures mechanical and electronic cabinet locks and other locking mechanisms used in recreational transportation, postal, office and institutional furniture, cabinetry, tool storage and healthcare applications.  CompX also manufactures stainless steel exhaust systems, gauges and throttle controls for the recreational marine and other industries through its Marine Components operations.  

We account for our 30% non-controlling interest in Kronos by the equity method.  Kronos is a leading global producer and marketer of value-added titanium dioxide pigments (TiO₂).  TiO₂ is used for a variety of manufacturing applications including coatings, plastics, paper and other industrial and specialty products.

Forward-looking information

This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended.  Statements in this Quarterly Report on Form 10-Q that are not historical facts are forward-looking in nature and represent management’s beliefs and assumptions based on currently available information.  Statements in this report including, but not limited to, statements found in Item 2 - “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” are forward-looking statements that represent our management’s beliefs and assumptions based on currently available information.  In some cases you can identify forward-looking statements by the use of words such as “believes,” “intends,” “may,” “should,” “could,” “anticipates,” “expects” or comparable terminology, or by discussions of strategies or trends.  Although we believe the expectations reflected in forward-looking statements are reasonable, we do not know if these expectations will be correct.  Such statements by their nature involve substantial risks and uncertainties that could significantly impact expected results.  Actual future results could differ materially from those predicted.  The factors that could cause our actual future results to differ materially from those described herein are the risks and uncertainties discussed in this Quarterly Report and those described from time to time in our other filings with the SEC including, but are not limited to, the following:

· Future supply and demand for our products

· The extent of the dependence of certain of our businesses on certain market sectors

· The cyclicality of our businesses (such as Kronos’ TiO₂ operations)

· Customer and producer inventory levels

· Unexpected or earlier-than-expected industry capacity expansion (such as the TiO₂ industry)

· Changes in raw material and other operating costs (such as energy, ore, zinc and brass costs) and our ability to pass those costs on to our customers or offset them with reductions in other operating costs

· Changes in the availability of raw material (such as ore)

· General global economic and political conditions (such as changes in the level of gross domestic product in various regions of the world and the impact of such changes on demand for, among other things, TiO₂ and component products)

· Competitive products and substitute products

· Price and product competition from low-cost manufacturing sources (such as China)

· Customer and competitor strategies

· Potential consolidation of Kronos’ competitors

· Potential consolidation of  Kronos’ customers

· The impact of pricing and production decisions

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· Competitive technology positions

· Potential difficulties in integrating future acquisitions

· Potential difficulties in upgrading or implementing new manufacturing and accounting software systems

· The introduction of trade barriers

· Possible disruption of Kronos’ or CompX’s business, or increases in our  cost of doing business resulting from terrorist activities or global conflicts

· The impact of current or future government regulations (including employee healthcare benefit related regulations)

· Fluctuations in currency exchange rates (such as changes in the exchange rate between the U.S. dollar and each of the euro, the Norwegian krone and the Canadian dollar), or possible disruptions to our business resulting from potential instability resulting from uncertainties associated with the euro

· Operating interruptions (including, but not limited to, labor disputes, leaks, natural disasters, fires, explosions, unscheduled or unplanned downtime, transportation interruptions and cyber attacks)

· Decisions to sell operating assets other than in the ordinary course of business

· Kronos’ ability to renew or refinance debt

· Our ability to maintain sufficient liquidity

· The timing and amounts of insurance recoveries

· The extent to which our subsidiaries or affiliates were to become unable to pay us dividends

· The ultimate outcome of income tax audits, tax settlement initiatives or other tax matters

· Uncertainties associated with CompX’s development of new product features

· Our ability to utilize income tax attributes or changes in income tax rates related to such attributes, the benefits of which have been recognized under the more-likely-than-not recognition criteria

· Environmental matters (such as those requiring compliance with emission and discharge standards for existing and new facilities or new developments regarding environmental remediation at sites related to our former operations)

· Government laws and regulations and possible changes therein (such as changes in government regulations which might impose various obligations on former manufacturers of lead pigment and lead-based paint, including us, with respect to asserted health concerns associated with the use of such products)

· The ultimate resolution of pending litigation (such as our lead pigment and environmental matters)

· Possible future litigation.  

Should one or more of these risks materialize (or if the consequences of such a development worsen), or should the underlying assumptions prove incorrect, actual results could differ materially from those currently forecasted or expected.  We disclaim any intention or obligation to update or revise any forward-looking statement whether as a result of changes in information, future events or otherwise.

Results of operations

Net income overview

Quarter ended March 31, 2015 compared to the quarter ended March 31, 2014

Our net income attributable to NL stockholders was $10.0 million, or $.21 per share, in the first quarter of 2015 compared to $3.8 million, or $.08 per share, in the first quarter of 2014.  As more fully described below, the increase in our net income attributable to NL stockholders from 2014 to 2015 is primarily due to:

· a non-cash income tax benefit in 2015 related to a net reduction in our reserve for uncertain tax positions of $3.0 million,

· higher insurance recoveries in 2015 of $2.3 million primarily related to an insurance recovery settlement for certain past lead pigment litigation defense costs,

· higher equity in earnings from Kronos in 2015 of $1.3 million, and

· higher income from operations attributable to CompX in 2015 of $.4 million.

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Our 2015 net income attributable to NL stockholders includes the following:

· income of $.06 per share related to a net reduction of our reserve for uncertain tax positions, and

· income of $.04 per share, net of income taxes, related to insurance recoveries we recognized.

Our 2014 net income attributable to NL stockholders includes income of $.01 per share, net of income taxes, related to insurance recoveries we recognized.

Income (loss) from operations

The following table shows the components of our income (loss) from operations.

	Three months ended March 31,						%
	2014			2015			Change
	(in millions)
CompX	$	3.3		$	3.7			13		%
Insurance recoveries		.8			3.1			298
Other income, net		.1			-			n.m.
Corporate expense		(4.3	)		(3.8	)		(10	)
Income (loss) from operations	$	(.1	)	$	3.0			n.m.

____________________________________

n.m. – not meaningful

Amounts attributable to CompX relate to its components products business, while the other amounts generally relate to NL. Each of these items is further discussed below.

The following table shows the components of our income before income taxes exclusive of our income (loss) from operations.

	Three months ended March 31,				%
	2014		2015		Change
	(in millions)
Equity in earnings of Kronos	$	4.3	$	5.6		29		%
Interest and dividend income		.7		.3		(58	)

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CompX International Inc.

	Three months ended March 31,						%
	2014			2015			Change
	(in thousands)
Net sales	$	25,781		$	27,891			8	%
Cost of sales		18,032			19,325			7
Gross margin		7,749			8,566			11
Operating costs and expenses		4,461			4,866			9
Income from operations	$	3,288		$	3,700			13
Percentage of net sales:
Cost of sales		70	%		69	%
Gross margin		30			31
Operating costs and expenses		17			17
Income from operations		13			13

Net sales - Net sales increased $2.1 million in the first quarter of 2015 compared to the same period in 2014, led by strong demand within CompX’s Security Products business for an existing government customer and to a lesser extent increased demand for fuel security products as well as increased sales to the office equipment market.  Sales from CompX’s Marine Components business also contributed to the increase in sales primarily as a result of  improved demand for products sold to the waterski/wakeboard boat market. Relative changes in selling prices did not have a material impact on net sales comparisons.

Cost of sales and gross margin - As a percentage of net sales, cost of sales decreased by less than 1% in the first quarter of 2015 compared to the same period in 2014. As a result, gross margin as a percentage of net sales increased over the same period. Gross margin dollars increased due to sales growth in both CompX’s Security Products and Marine Components businesses.  The increase in gross margin percentage is attributable to Marine Components, which achieved improvement in manufacturing efficiencies as well as increased leverage of fixed manufacturing costs over increased production volumes.

Operating costs and expenses - Operating costs and expenses consist primarily of sales and administrative related personnel costs, sales commissions and advertising expenses, as well as gains and losses on plant, property and equipment.  Operating costs and expenses increased in the first quarter of 2015 as compared to the same period in 2014 primarily due to increased administrative personnel costs to support the growth in volume for CompX’s Security Products business.

Income from operations - As a percentage of net sales, income from operations for the first quarter of 2015 increased slightly compared to the same period in 2014 and was primarily impacted by the factors impacting gross margin percentage and operating costs and expenses above.

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Results by reporting unit

The key performance indicator for CompX’s reporting units is the level of their income from operations (see discussion below).

	Three months ended March 31,								%
	2014				2015				Change
	(in thousands)
Net sales:
Security Products	$	22,964			$	24,658				7		%
Marine Components		2,817				3,233				15
Total net sales	$	25,781			$	27,891				8
Gross margin:
Security Products	$	7,254			$	7,771				7
Marine Components		495				795				61
Total gross margin	$	7,749			$	8,566				11
Income (loss) from operations:
Security Products	$	4,699			$	4,946				5
Marine Components		(16	)			259				n.m.
Corporate operating expenses		(1,395	)			(1,505	)			(8	)
Total income from operations	$	3,288			$	3,700				13
Gross margin:
Security Products		32		%		32		%
Marine Components		18				25
Total gross margin		30				31
Income (loss) from operations margin:
Security Products		20		%		20		%
Marine Components		(1	)			8
Total income from operations margin		13				13

__________________________________

  n.m. – not meaningful

SecurityProducts - Security Products net sales increased 7% in the first quarter of 2015 compared to the same period last year.  The increase in sales for the first quarter period is primarily due to an increase of approximately $1.2 million in sales of new products for existing government customers, as well as increased demand of $.2 million for fuel security products and increased sales of $.2 million to existing office equipment customers.  Gross margin as a percentage of sales in 2015 was comparable to the same period in 2014.  Income from operations as a percentage of net sales in the first quarter of 2015 was slightly lower than the first quarter of 2014 due to increased operating costs and expenses, including increased administrative personnel and benefits costs of approximately $.2 million.  

MarineComponents - Marine Components net sales increased 15% in the first quarter of 2015 as compared to the same period last year. The increase in sales is primarily due to improved demand for products sold to the waterski/wakeboard boat market. Gross margin and income from operations as a percentage of net sales improved in the first quarter of 2015 compared to the first quarter of 2014 due to improved manufacturing efficiencies and increased leverage of fixed costs as a result of higher volumes.

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Outlook - First quarter sales reflect continued strong demand for our products. The primary driver continues to be existing original equipment manufacturer (“OEM”) customers, including requirements for certain government security applications. While demand has been particularly strong in certain markets, including electronic locks, office furniture and marine components, we have not experienced the consistently strong demand from our small business customers that we might expect in a broader economic upturn. We continue to experience the benefits of diversification in our product offerings and ongoing innovation to serve new markets. We anticipate continued strong demand for our products throughout 2015, though we expect security product demand for government security applications to decrease in the second half of the year.

As in prior periods, we will continue to monitor general economic conditions and sales order rates and respond to fluctuations in customer demand through continuous evaluation in staffing levels and consistent execution of our lean manufacturing and cost improvement initiatives. Additionally, we continue to seek opportunities to gain market share in markets we currently serve, to expand into new markets and to develop new product features in order to mitigate the impact of changes in demand as well as broaden our sales base.

General corporate and other items

Insurance recoveries - We have agreements with certain insurance carriers pursuant to which the carriers reimburse us for a portion of our past lead pigment and asbestos litigation defense costs.  Insurance recoveries include amounts we received from these insurance carriers.  Substantially all of the $3.1 million insurance recoveries we recognized in the first quarter of 2015 relate to a settlement we reached with one of our insurance carriers in which they agreed to reimburse us for a portion of our past litigation defense costs.

The agreements with certain of our insurance carriers also include reimbursement for a portion of our future litigation defense costs.  We are not able to determine how much we will ultimately recover from these carriers for defense costs incurred by us because of certain issues that arise regarding which defense costs qualify for reimbursement.  Accordingly, these insurance recoveries are recognized when the receipt is probable and the amount is determinable.  See Note 13 to our Condensed Consolidated Financial Statements.  

Corporate expense - Corporate expenses were $3.8 million in the first quarter of 2015, $.4 million lower than in the first quarter of 2014 primarily due to lower litigation and related costs in 2015.Included in corporate expense in the first quarter of 2014 and 2015 are:

· litigation and related costs of $1.8 million in 2015 compared to $2.1 million in 2014, and

· environmental remediation and related costs of $.1 million in each of the first quarter of 2015 and 2014.

The level of our litigation and related costs varies from period to period depending upon, among other things, the number of cases in which we are currently involved, the nature of such cases and the current stage of such cases (e.g. discovery, pre-trial motions, trial or appeal, if applicable).  See Note 13 to our Condensed Consolidated Financial Statements.  If our current expectations regarding the number of cases in which we expect to be involved during 2015 or the nature of such cases were to change, our corporate expenses could be higher than we currently estimate.

Obligations for environmental remediation costs are difficult to assess and estimate and it is possible that actual costs for environmental remediation will exceed accrued amounts or that costs will be incurred in the future for sites in which we cannot currently estimate our liability.  If these events were to occur in 2015, our corporate expenses would be higher than we currently estimate.  In addition, we adjust our environmental accruals as further information becomes available to us or as circumstances change.  Such further information or changed circumstances could result in an increase in our accrued environmental costs.  See Note 13 to our Condensed Consolidated Financial Statements.

Overall, we expect that our general corporate expenses for all of 2015 will be lower than 2014 primarily due to lower expected environmental remediation and related costs and lower litigation and related costs.  If our current expectations regarding the number of cases or sites in which we expect to be involved during 2015, or if the nature of such cases or sites were to change, our corporate expenses could be higher than we currently estimate and involve amounts that are material.

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Income tax expense - We recognized an income tax benefit of $1.4 million in the first quarter of 2015 compared to an income tax expense of $1.0 million in the first quarter of 2014.  Our income tax benefit in the first quarter of 2015 includes a non-cash income tax benefit of $3.0 million related to the release of a portion of our reserve for uncertain tax positions due to the expiration of the applicable statute of limitations.  See Note 12 to our Condensed Consolidated Financial Statements for more information about our 2015 income tax items, including a tabular reconciliation of our statutory tax expense (benefit) to our actual expense (benefit).

Noncontrolling interest - Noncontrolling interest in net income of CompX is consistent in the first quarter periods of 2014 and 2015.  The noncontrolling interest we recognize in each period is directly related to the level of earnings at CompX for the period.  

Equity in earnings of Kronos Worldwide, Inc.

	Three months ended March 31,								%
	2014				2015				Change
	(in millions)
Net sales	$	420.1			$	365.1				(13	)	%
Cost of sales		339.6				287.7				(15	)	%
Gross margin	$	80.5			$	77.4
Income from operations	$	26.0			$	32.2				24		%
Other, net		.2				.2
Interest expense		(4.0	)			(4.6	)
Income before income taxes		22.2				27.8
Income tax expense		7.9				9.4
Net income	$	14.3			$	18.4
Percentage of net sales:
Cost of sales		81		%		79		%
Income from operations		6		%		9		%
Equity in earnings of Kronos Worldwide, Inc.	$	4.3			$	5.6
TiO2 operating statistics:
Sales volumes*		122				131				7		%
Production volumes*		120				125				4		%
Change in TiO2 net sales:
TiO2 product pricing										(11	)	%
TiO2 sales volumes										7		%
TiO2 product mix										(1	)	%
Changes in currency exchange rates										(8	)	%
Total										(13	)	%
*  Thousands of metric tons

The key performance indicators for Kronos are TiO₂ average selling prices, its level of TiO₂ sales and production volumes and the cost of third-party feedstock ore.

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Current industry conditions- Due to competitive pressures, Kronos’ average selling prices decreased throughout 2014 and the first quarter of 2015.  Kronos’ average selling prices at the end of the first quarter of 2015 were 7% lower than at the end of 2014, with lower prices in all major markets.  Kronos experienced higher sales volumes in all major markets, particularly in European and export markets, in the first quarter of 2015 as compared to the first quarter of 2014 as demand has generally been stable.

Kronos operated its production facilities at overall average capacity utilization rates of 93% in the first quarter of 2015 compared to approximately 90% in the first quarter of 2014.  Kronos’ production capacity utilization rates in the first quarter of 2014 were impacted by a union labor lockout at its Canadian production facility that ended in December 2013, as restart of production at the facility did not begin until February 2014.  Kronos’ production rates in the first quarter of 2015 were impacted by the implementation of certain productivity-enhancing improvement projects at certain facilities, as well as necessary improvements to ensure continued compliance with its permit regulations, which resulted in longer-than-normal maintenance shutdowns in some instances.

Kronos continued to experience moderation in the cost of TiO₂ feedstock ore procured from third parties in 2014 and continuing into the first quarter of 2015.  Given the time lag between when such third-party feedstock ore is procured and when the TiO₂ product produced with such ore is sold and recognized in Kronos’ cost of sales, its cost of sales per metric ton of TiO₂ sold declined throughout 2014 and into the first quarter of 2015.  Consequently, Kronos’ cost of sales per metric ton of TiO₂ sold in the first quarter of 2015 was slightly lower than its cost of sales per metric ton of TiO₂ sold in the first quarter of 2014 (excluding the effect of changes in currency exchange rates).

Net sales – Kronos’ net sales in the first quarter of 2015 decreased 13%, or $55.0 million, compared to the first quarter of 2014 primarily due to the net effects of an 11% decrease in average TiO₂ selling prices (which decreased net sales by approximately $46 million) and a 7% increase in sales volumes (which increased net sales by approximately $29 million).  TiO₂ selling prices will increase or decrease generally as a result of competitive market pressures, changes in the relative level of supply and demand as well as changes in raw material and other manufacturing costs.

Kronos’ sales volumes increased 7% in the first quarter of 2015 as compared to the first quarter of 2014 due to higher sales in all major markets, particularly in certain export and European markets.  Kronos estimates that changes in currency exchange rates (primarily the euro) decreased its net sales by approximately $33 million as compared to the first quarter of 2014.

Cost of sales – Cost of sales decreased $51.9 million or 15% in the first quarter of 2015 compared to 2014 due to the net impact of lower raw materials and other production costs of approximately $21 million (primarily caused by lower third-party feedstock ore costs), a 7% increase in sales volumes, a 4% increase in TiO₂ production volumes and currency fluctuations (primarily the euro).  Kronos’ cost of sales as a percentage of net sales decreased to 79% in the first quarter of 2015 compared to 81% in the same period of 2014, as the favorable effect of lower raw material costs and efficiencies related to higher production volumes more than offset the unfavorable impact of lower average selling prices, as discussed above.

Gross margin and income from operations – Kronos’ income from operations increased by $6.2 million, from $26.0 million in the first quarter of 2014 to $32.2 million in the first quarter of 2015.  Income from operations as a percentage of net sales increased to 9% in the first quarter of 2015 from 6% in the same period of 2014.  This increase was driven by the increase in gross margin percentage, which increased to 21% for the first quarter of 2015 compared to 19% for the first quarter of 2014.  As discussed and quantified above, Kronos’ gross margin percentage increased primarily due to the net effect of lower manufacturing costs (primarily raw materials), higher production volumes, higher sales volumes and lower selling prices.  While Kronos’ gross margin percentage was higher in the first quarter of 2015 compared to the first quarter of 2014, its gross margin dollars were lower, as the favorable impact of higher sales and production volumes, lower manufacturing costs and the effect of changes in currency exchange rates was more than offset by the unfavorable impact of lower average selling prices.  Kronos estimates that changes in currency exchange rates increased income from operations by approximately $14 million in the first quarter of 2015 as compared to the same period in 2014, as discussed below.

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Other non-operating income (expense) – Kronos’ interest expense increased $.6 million from $4.0 million in the first quarter of 2014 to $4.6 million in the first quarter of 2015 primarily due to higher average debt levels in the first quarter of 2015.  Kronos currently expects its interest expense for all of 2015 will be comparable to 2014, due to expected comparable annual average debt levels resulting from the term loan it issued in February 2014.

Income tax expense- Kronos recognized income tax expense of $9.4 million in the first quarter of 2015 compared to $7.9 million in the same period last year.  Kronos’ increase in income tax expense in the first quarter of 2015 is primarily due to increased earnings.  For interim financial reporting purposes, Kronos applies an effective tax rate methodology in determining the provision for income taxes.  Generally, Kronos expects the effective tax rate associated with its non-US earnings to be lower than its U.S. statutory rate of 35%.  The decrease in its effective tax rate in the first quarter of 2015 is primarily due to the relative impact of the domestic production tax credit and the non-US earnings, in each case as a percentage of the reported amount of its pre-tax income in the periods presented.

Kronos has substantial net operating loss carryforwards in Germany (the equivalent of $738 million and $94 million for German corporate and trade tax purposes, respectively, at December 31, 2014) and in Belgium (the equivalent of $87 million for Belgian corporate tax purposes at December 31, 201).  At March 31, 2015, 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) it has utilized a portion of such German carryforwards during the most recent three-year period and (iii) it currently expects to utilize the remainder of such carryforwards over the long term.  However, prior to the complete utilization of such carryforwards, particularly if Kronos were to generate losses in its German and 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 it would be required to recognize a valuation allowance against some or all of the then-remaining tax benefit associated with the carryforwards.

Effects of Currency Exchange Rates

Kronos has substantial operations and assets located outside the United States (primarily in Germany, Belgium, Norway and Canada).  The majority of its sales from non-U.S. operations are denominated in currencies other than the U.S. dollar, principally the euro, other major European currencies and the Canadian dollar.  A portion of Kronos’ sales generated from its non-U.S. operations is denominated in the U.S. dollar (and consequently its non-U.S. operations will generally hold U.S. dollars from time to time).  Certain raw materials used worldwide, primarily titanium-containing feedstocks, are purchased in U.S. dollars, while labor and other production and administrative costs are incurred primarily in local currencies.  Consequently, the translated U.S. dollar value of Kronos’ non-U.S. sales and operating results are subject to currency exchange rate fluctuations which may favorably or unfavorably impact reported earnings and may affect the comparability of period-to-period operating results.  In addition to the impact of the translation of sales and expenses over time, Kronos’ non-U.S. operations also generate currency transaction gains and losses which primarily relate to (i) the difference between the currency exchange rates in effect when non-local currency sales or operating costs (primarily U.S. dollar denominated) are initially accrued and when such amounts are settled with the non-local currency, (ii) changes in currency exchange rates during time periods when its non-U.S. operations are holding non-local currency (primarily U.S. dollars), and (iii)  relative changes in the aggregate fair value of currency forward contracts held from time to time.  Kronos periodically uses currency forward contracts to manage a portion of its currency exchange risk, and relative changes in the aggregate fair value of any currency forward contracts Kronos holds from time to time serves in part to mitigate the currency transaction gains or losses it would otherwise recognize from the first two items described above. Overall, Kronos estimates that fluctuations in currency exchange rates had the following effects on its sales and income from operations for the periods indicated.

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Impact of changes in currency exchange rates

three months ended March 31, 2015 vs. March 31, 2014

	Transaction gain/(loss) recognized						Translation gain - impact of rate changes		Total currency impact 2015 vs. 2014
	2014		2015		Change
	(In millions)
Impact on:
Net sales	$	-	$	-	$	-	$	(33)	$	(33)
Income from operations		(3)		2		5		9		14

The $33 million reduction in net sales (translation loss) was caused primarily by a strengthening of the U.S. dollar relative to the euro, as Kronos’ euro-denominated sales were translated into fewer U.S. dollars in 2015 as compared to 2014.  The strengthening of the U.S. dollar relative to the Canadian dollar and the Norwegian kroner in 2015 did not have a significant effect on the reported amount of Kronos’ net sales, as a substantial portion of the sales generated by its Canadian and Norwegian operations are denominated in the U.S. dollar.

The $14 million increase in income from operations was comprised of the following:

· approximately $5 million from net currency transaction gains caused primarily by a strengthening of the U.S. dollar relative to the euro, the Norwegian kroner and the Canadian dollar, as U.S. dollar-denominated receivables and U.S. dollar currency held by Kronos’ non-U.S. operations became equivalent to a greater amount of local currency in 2015 as compared to 2014, and

· approximately $9 million from net currency translation gains caused primarily by a strengthening of the U.S. dollar relative to the Canadian dollar and the Norwegian kroner, as their local currency-denominated operating costs were translated into fewer U.S. dollars in 2015 as compared to 2014.  Overall, the strengthening of the U.S. dollar relative to the euro in 2015 did not have a significant translational impact on Kronos’ income from operations, as the reduction in net sales caused by such strengthening was substantially offset by the effect of its euro-denominated operating costs being translated into fewer U.S. dollars in 2015.

Outlook

During the first quarter of 2015 Kronos operated its production facilities at 93% of practical capacity.  While Kronos expects its production volumes to be higher in 2015 as compared to 2014, it expects to continue to operate below full production capacity in 2015, due principally to completing the implementation of certain productivity-enhancing capital improvement projects at certain facilities which will result in longer-than-normal maintenance shutdowns in some instances.  Assuming economic conditions do not deteriorate in the various regions of the world, Kronos expects its sales volumes to be higher in 2015 as compared to 2014.  Kronos will continue to monitor current and anticipated near-term customer demand levels and align its production and inventories accordingly.

Kronos continued to experience moderation in the cost of TiO₂ feedstock ore procured from third parties in 2014 continuing into 2015.  Given the time lag between when such third-party feedstock ore is procured and when the TiO₂ product produced with such ore is sold and recognized in Kronos’ cost of sales, its cost of sales per metric ton of TiO₂ sold in the first quarter of 2015 was slightly lower than its cost of sales per metric ton of TiO₂ sold in the first quarter of 2014 (excluding the effect of changes in currency exchange rates).  While Kronos expects its cost of sales per metric ton of TiO₂ sold for the remainder of 2015 will be comparable to such per-metric ton cost in the first quarter of 2015, such per-metric ton cost for the remainder of 2015 is expected to continue to be slightly lower as compared to the same periods in 2014 (excluding the effect of changes in currency exchange rates).  

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Kronos started 2015 with selling prices 9% lower than the beginning of 2014, and prices declined by an additional 7% in the first quarter of 2015.  Industry data indicates that overall TiO₂ inventory held by producers has been significantly decreased.  In addition, Kronos believes most customers hold very low inventories of TiO₂ with many operating on a just-in-time basis.  With the strong sales volumes experienced in the first quarter of 2015, Kronos continues to see evidence of improvement in demand for its TiO₂ products in certain of its primary markets.  The extent to which Kronos will be able to achieve any price increases in the near term will depend on market conditions.  

Overall, Kronos currently expects that income from operations in 2015 will be comparable to 2014, as the favorable effect of higher sales volumes and moderating raw material costs will be mostly offset by the effects of lower anticipated average selling prices (since its average selling prices at the beginning of 2015 were 9% lower than the beginning of 2014).

Due to the constraints of high capital costs and extended lead time associated with adding significant new TiO₂ production capacity, especially for premium grades of TiO₂ products produced from the chloride process, Kronos believes increased and sustained profit margins will be necessary to financially justify major expansions of TiO₂ production capacity required to meet expected future growth in demand.  As a result of customer decisions over the last year and the resulting adverse effect on global TiO₂ pricing, some industry projects to increase TiO₂ production capacity have been cancelled or deferred indefinitely, and announcements have been made regarding the closure of certain facilities.  Given the lead time required for such production capacity expansions, a shortage of TiO₂ products could occur if economic conditions improve and global demand levels for TiO₂ increase sufficiently.

LIQUIDITY AND CAPITAL RESOURCES

Consolidated cash flows

Operating activities  

Trends in cash flows from operating activities, excluding the impact of deferred taxes and relative changes in assets and liabilities, are generally similar to trends in our income from operations.  Changes in working capital are primarily related to changes in receivables and inventories (as discussed below) and payables and accrued liabilities.  

Net cash provided by operating activities was $.9 million in the first three months of 2015 compared to $.7 million in the first three months of 2014.  The $.2 million net increase in cash provided by operating activities includes the net effects of:

· higher income from operations attributable to CompX of $.4 million,

· higher amount of net cash used for relative changes in receivables (excluding insurance recoveries), inventories, payables and accrued liabilities in 2015 of $.6 million, and

· higher cash received for insurance recoveries in 2015 of $.8 million.

We do not have complete access to CompX’s cash flows in part because we do not own 100% of CompX.  A detail of our consolidated cash flows from operating activities is presented in the table below.  Intercompany dividends have been eliminated.  The reference to NL Parent in the table below is a reference to NL Industries, Inc., as the parent company of CompX and our wholly-owned subsidiaries.

	Three months ended March 31,
	2014			2015
	(in millions)
Net cash provided by (used in) operating activities:
CompX	$	(2.3	)	$	(3.0	)
NL Parent and wholly-owned subsidiaries		3.5			4.4
Eliminations		(.5	)		(.5	)
Total	$	.7		$	.9

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Relative changes in working capital can have a significant effect on cash flows from operating activities. Generally, we expect our average days sales outstanding to increase from December to March as the result of a seasonal increase in sales during the first quarter as compared to the fourth quarter.  Overall, our March 31, 2015 days sales outstanding compared to December 31, 2014 is in line with our expectations. As shown below, our total average number of days in inventory relative to sales decreased from December 31, 2014 to March 31, 2015 primarily as a result of intentional 2014 fourth quarter inventory build up to prepare for first quarter 2015 sales. For comparative purposes, we have provided information for December 31, 2013 and March 31, 2014 below.

	December 31,	March 31,	December 31,	March 31,
	2013	2014	2014	2015
Days sales outstanding	35 days	45 days	32 days	40 days
Days in inventory	76 days	76 days	90 days	79 days

Investing and financing activities

In the first three months of 2015, we spent $.8 million in capital expenditures, substantially all of which related to CompX.  Cash flows from financing activities in the first three months of 2015 consist of CompX dividends paid to its stockholders other than us.

Outstanding debt obligations

At March 31, 2015, NL and CompX did not have any outstanding debt obligations.

Kronos’ North American and European revolvers and its term loan contain a number of covenants and restrictions which, among other things, restrict its ability to incur additional debt, incur liens, pay dividends or merge or consolidate with, or sell or transfer substantially all of our assets to, another entity, and contains other provisions and restrictive covenants customary in lending transactions of this type.  Certain of Kronos credit agreements contain provisions which could result in the acceleration of indebtedness prior to their stated maturity for reasons other than defaults for failure to comply with typical financial or payment covenants.  For example, certain credit agreements allow the lender to accelerate the maturity of the indebtedness upon a change of control (as defined in the agreement) of the borrower.  In addition, certain credit agreements could result in the acceleration of all or a portion of the indebtedness following a sale of assets outside the ordinary course of business.Kronos’ European revolving credit facility also requires the maintenance of certain financial ratios, and one of such requirements is based on the ratio of net debt to the last twelve months EBITDA of the borrowers.  Kronos is in compliance with all of its debt covenants at March 31, 2015.  Kronos believes that it will be able to continue to comply with the financial covenants contained in its credit facilities through their maturity.

Future cash requirements

Liquidity

Our primary source of liquidity on an ongoing basis is our cash flow from operating activities and credit facilities with affiliates and banks as further discussed below.  We generally use these amounts to fund capital expenditures (substantially all of which relate to CompX), pay ongoing environmental remediation and litigation costs and provide for the payment of dividends (if declared).

At March 31, 2015, we had aggregate cash, cash equivalents and restricted cash of $78.0 million, substantially all of which was held in the U.S.  A detail by entity is presented in the table below.  

	Amount
	(in millions)
CompX	$	41.2
NL Parent and wholly-owned subsidiaries		36.8
Total	$	78.0

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In addition, at March 31, 2015 we owned 14.4 million shares of Valhi common stock with an aggregate market value of $89.5 million.  See Note 4 to our Condensed Consolidated Financial Statements.  We also owned 35.2 million shares of Kronos common stock at March 31, 2015 with an aggregate market value of $445.5 million.  See Note 5 to our Condensed Consolidated Financial Statements.  

We routinely compare our liquidity requirements and alternative uses of capital against the estimated future cash flows we expect to receive from our subsidiaries and affiliates.  As a result of this process, we have in the past and may in the future seek to raise additional capital, incur debt, repurchase indebtedness in the market or otherwise, modify our dividend policies, consider the sale of our interests in our subsidiaries, affiliates, business, marketable securities or other assets, or take a combination of these and other steps, to increase liquidity, reduce indebtedness and fund future activities.  Such activities have in the past and may in the future involve related companies.

We periodically evaluate acquisitions of interests in or combinations with companies (including related companies) perceived by management to be undervalued in the marketplace.  These companies may or may not be engaged in businesses related to our current businesses.  We intend to consider such acquisition activities in the future and, in connection with this activity, may consider issuing additional equity securities and increasing indebtedness.  From time to time, we also evaluate the restructuring of ownership interests among our respective subsidiaries and related companies.

Based upon our expectations of our operating performance, and the anticipated demands on our cash resources we expect to have sufficient liquidity to meet our short-term obligations (defined as the twelve-month period ending March 31, 2016).  If actual developments differ materially from our expectations, our liquidity could be adversely affected.  In this regard, Valhi has agreed to loan us up to $40 million on a revolving basis.  At March 31, 2015, we had no outstanding borrowings under this facility, and the full $40 million was available for future borrowing.  The amount of any such outstanding loan Valhi would make to us is at Valhi’s discretion.  We currently do not expect to be required to borrow any amounts from Valhi during the remainder of 2015 under this facility.

Capital Expenditures

Firm purchase commitments for capital projects in process at March 31, 2015 approximated $1.6 million.  CompX’s 2015 capital investments are limited to those expenditures required to meet expected customer demand and those required to properly maintain our facilities and technology infrastructure.

Dividends

Because our operations are conducted primarily through subsidiaries and affiliates, our long-term ability to meet parent company-level corporate obligations is largely dependent on the receipt of dividends or other distributions from our subsidiaries and affiliates.  A detail of annual dividends we expect to receive from our subsidiaries and affiliates in 2015, based on the number of shares of common stock of these affiliates we own as of March 31, 2015 and their current regular quarterly dividend rate, is presented in the table below.  

	Shares held at March 31, 2015		CurrentQuarterlyDividend Rate		Annual Expected Dividend
	(in millions)				(in millions)
Kronos		35.2	$	.15	$	21.1
CompX		10.8		.05		2.2
Valhi		14.4		.02		1.1
Total expected annual dividends					$	24.4

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Investments in our subsidiaries and affiliates and other acquisitions

We have in the past and may in the future, purchase the securities of our subsidiaries and affiliates or third-parties in market or privately-negotiated transactions.  We base our purchase decisions on a variety of factors, including an analysis of the optimal use of our capital, taking into account the market value of the securities and the relative value of expected returns on alternative investments. In connection with these activities, we may consider issuing additional equity securities or increasing our indebtedness.  We may also evaluate the restructuring of ownership interests of our businesses among our subsidiaries and related companies.

Off-balance sheet financing arrangements

Other than operating lease commitments discussed in our 2014 Annual Report, we are not party to any material off-balance sheet financing arrangements.

Commitments and contingencies

There have been no material changes in our contractual obligations since we filed our 2014 Annual Report and we refer you to that report for a complete description of these commitments.

We are subject to certain commitments and contingencies, as more fully described to our 2014 Annual Report, or in Note 13 to our Condensed Consolidated Financial Statements or in Part II, Item 1 of this report, including certain legal proceedings. In addition to such legal proceedings, various legislation and administrative regulations have, from time to time, been proposed that seek to (i) impose various obligations on present and former manufacturers of lead pigment and lead-based paint (including us) with respect to asserted health concerns associated with the use of such products and (ii) effectively overturn court decisions in which we and other pigment manufacturers have been successful.  Examples of such proposed legislation include bills which would permit civil liability for damages on the basis of market share, rather than requiring plaintiffs to prove that the defendant’s product caused the alleged damage and bills which would revive actions barred by the statute of limitations.  While no legislation or regulations have been enacted to date that are expected to have a material adverse effect on our consolidated financial position, results of operations or liquidity, enactment of such legislation could have such an effect.

Recent accounting pronouncements

See Note 15 to our Condensed Consolidated Financial Statements.

Critical accounting policies and estimates

For a discussion of our critical accounting policies, refer to Part I, - “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2014 Annual Report.  There have been no changes in our critical accounting policies during the first three months of 2015.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

We are exposed to market risk, including currency exchange rates, interest rates and security prices. There have been no material changes in these market risks since we filed our 2014 Annual Report, and we refer you to Part I, Item 7A. –“Quantitative and Qualitative Disclosure about Market Risk” in our 2014 Annual Report. See also Note 14 to our Condensed Consolidated Financial Statements.

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ITEM 4. CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures - We maintain disclosure controls and procedures which, as defined in Exchange Act Rule 13a-15(e), means controls and other procedures that are designed to ensure that information required to be disclosed in the reports that we file or submit to the SEC under the Securities Exchange Act of 1934, as amended (the Act), is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms.  Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information we are required to disclose in the reports we file or submit to the SEC under the Act is accumulated and communicated to our management, including our principal executive officer and our principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions to be made regarding required disclosure.  Each of Robert D. Graham, our Vice Chairman of the Board, President and Chief Executive Officer and Gregory M. Swalwell, our Executive Vice President and Chief Financial Officer, have evaluated the design and effectiveness of our disclosure controls and procedures as of March 31, 2015.  Based upon their evaluation, these executive officers have concluded that our disclosure controls and procedures are effective as of the date of this evaluation.

Internal control over financial reporting - Our management is responsible for establishing and maintaining adequate internal control over financial reporting which, as defined by Exchange Act Rule 13a-15(f) means a process designed by, or under the supervision of, our principal executive and principal financial officers, or persons performing similar functions, and effected by the board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles, and includes those policies and procedures that:

· pertain to the maintenance of records that in reasonable detail accurately and fairly reflect transactions and dispositions of our assets,

· provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures are made only in accordance with authorizations of our management and directors, and

· provide reasonable assurance regarding prevention or timely detection of an unauthorized acquisition, use or disposition of assets that could have a material effect on our Condensed Consolidated Financial Statements.

As permitted by the SEC, our assessment of internal control over financial reporting excludes (i) internal control over financial reporting of equity method investees and (ii) internal control over the preparation of any financial statement schedules which would be required by Article 12 of Regulation S-X.  However, our assessment of internal control over financial reporting with respect to equity method investees did include controls over the recording of amounts related to our investment that are recorded in the consolidated financial statements, including controls over the selection of accounting methods for our investments, the recognition of equity method earnings and losses and the determination, valuation and recording of our investment account balances.  

Changes in internal control over financial reporting – There have been no changes to our internal control over financial reporting during the quarter ended March 31, 2015 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

In addition to the matters discussed below, refer to Note 13 to our Condensed Consolidated Financial Statements and to our 2014 Annual Report for descriptions of certain legal proceedings.

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ASARCO LLC v.  NL Industries, Inc., et al.  (United States District Court, Western District of Missouri, Case No.  4:11-cv-00138-DGK).  In March 2015, the 8th Circuit Court of Appeals denied Asarco’s request for an interlocutory appeal of the stay order.  The trial court’s indefinite stay thus remains in place.

Lewis, et al. v. Lead Industries Association, et al. (Circuit Court of Cook County, Illinois, County Department, Chancery Division, Case No. 00CH09800).  In April 2015, a class was certified consisting of parents or legal guardians of children who lived in certain “high risk” areas in Illinois between August 18, 1995 and February 19, 2008, and incurred an expense or liability for having their children’s blood lead levels tested. 

Item  1A. Risk Factors

For a discussion of the risk factors related to our businesses, refer to Part I, Item 1A., “Risk Factors,” in our 2014 Annual Report.  

Item 6. Exhibits

31.1	Certification
31.2	Certification
32.1	Certification
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

NL INDUSTRIES, INC.

(Registrant)

Date:  May 7, 2015	/s/ Gregory M. Swalwell
	Gregory M. Swalwell
	(Executive Vice President and Chief Financial Officer, Principal Financial Officer)
Date:  May 7, 2015	/s/ Tim C. Hafer
	Tim C. Hafer
	(Vice President and Controller, Principal Accounting Officer)

38

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Robert D. Graham, certify that:

1) I have reviewed this quarterly report on Form 10-Q of NL Industries, Inc.;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  May 7, 2015

/s/ Robert D. Graham

Robert D. Graham

Vice Chairman of the Board,

President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Gregory M. Swalwell, certify that:

1) I have reviewed this quarterly report on Form 10-Q of NL Industries, Inc.;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  May 7, 2015

/s/ Gregory M. Swalwell

Gregory M. Swalwell

Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of NL Industries, Inc. (the Company) on Form 10-Q for the quarter ended March 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Robert D. Graham, Chief Executive Officer of the Company, and I, Gregory M. Swalwell, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Robert D. Graham

Robert D. Graham

Vice Chairman of the Board,  

President and Chief Executive Officer

/s/ Gregory M. Swalwell

Gregory M. Swalwell

Executive Vice President and Chief Financial Officer

May 7, 2015

Note: The certification the registrant furnished in this exhibit is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. Registration Statements or other documents filed with the Securities and Exchange Commission shall not incorporate this exhibit by reference, except as otherwise expressly stated in such filing.

XML

Marketable Securities - Additional Information (Detail) (Valhi Inc, Affiliated Entity, Common stock, USD $) In Millions, except Per Share data, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Valhi Inc | Affiliated Entity | Common stock
Schedule Of Available For Sale Securities [Line Items]
Outstanding common stock, shares	14.4	14.4
Common stock quoted market price per share	$ 6.23	$ 6.41

XML

Income Taxes - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Income tax expense (benefit) adjustment	$ (3.0)

XML

Employee Benefit Plans - Components of Net Periodic Defined Benefit Cost (Income) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Defined Benefit Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Interest cost	$ 569	$ 628
Expected return on plan assets	(801)	(852)
Recognized actuarial (gain) losses	326	232
Total	94	8
OPEB
Defined Benefit Plan Disclosure [Line Items]
Interest cost	27	29
Amortization of prior service credit	(155)	(161)
Recognized actuarial (gain) losses	(25)	(44)
Total	$ (153)	$ (176)

XML

Commitments and Contingencies - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015 Plaintiff Cases site	Dec. 31, 2014
Loss Contingencies [Line Items]
Number of cases administratively dismissed or inactive	100
Liable periods	twenty-year
Litigation settlement amount	$ 1,150,000,000
Accrued environmental obligations approximately	109,835,000	110,015,000
Sites associated with remediation	47
Remediation and related matters possible to estimate costs	$ 149,000,000
Currently not able to estimate a range of costs to sites	5
Number of cases pending	166
Number of Plaintiffs Involved in Pending Cases	712
Other Litigation
Loss Contingencies [Line Items]
Number of cases administratively dismissed or inactive	8,692

XML

Long-Term Debt - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015
Debt Instrument [Line Items]
Borrowing under credit facility	$ 0
NL
Debt Instrument [Line Items]
Borrowing under credit facility	$ 40

XML

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2015

Commitments And Contingencies Disclosure [Abstract]

Changes in Accrued Environmental Remediation and Related Costs

Changes in the accrued environmental remediation and related costs during the first three months of 2015 are as follows:

	Amount
	(In thousands)
Balance at the beginning of the period	$	110,015
Additions charged to expense, net		123
Payments, net		(303	)
Balance at the end of the period	$	109,835
Amounts recognized in the Condensed Consolidated
Balance Sheet at the end of the period:
Current liability	$	7,044
Noncurrent liability		102,791
Balance at the end of the period	$	109,835

XML

Financial Instruments and Fair Value Measurements - Summary of Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Noncontrolling interest in CompX common stock	$ 14,661	$ 14,428
NL stockholders' equity	232,917	237,022
Carrying Amount
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Cash, cash equivalents and restricted cash	78,042	77,975
Noncontrolling interest in CompX common stock	14,661	14,428
NL stockholders' equity	232,917	237,022
Fair Value
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Cash, cash equivalents and restricted cash	78,042	77,975
Noncontrolling interest in CompX common stock	18,733	19,936
NL stockholders' equity	$ 377,292	$ 418,673

XML

Marketable Securities (Tables)

3 Months Ended

Mar. 31, 2015

Investments Debt And Equity Securities [Abstract]

Schedule of Marketable Securities

	Fair value measurement level	Market value		Cost basis		Unrealized gain
		(In thousands)
December 31, 2014
Valhi common stock	1	$	92,131	$	24,347	$	67,784
March 31, 2015
Valhi common stock	1	$	89,544	$	24,347	$	65,197

XML

Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Other Comprehensive Loss (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Components Of Other Comprehensive Income Loss [Line Items]
Marketable securities, Balance at beginning of period	$ 47,112	$ 154,169
Other comprehensive loss - unrealized losses arising during the year	(1,786)	(83,931)
Marketable securities, Balance at end of period	45,326	70,238
Currency translation, Balance at beginning of period	(154,173)	(133,816)
Other comprehensive loss	(12,959)	(514)
Currency translation, Balance at end of period	(167,132)	(134,330)
Balance at beginning of period	(182,039)	(35,016)
Other comprehensive loss	(14,147)	(84,065)
Balance at end of period	(196,186)	(119,081)
Defined Benefit Pension Plans
Components Of Other Comprehensive Income Loss [Line Items]
Balance at beginning of period	(75,260)	(56,644)
Amortization of prior service credit and net losses (gains) included in net periodic pension cost	734	537
Balance at end of period	(74,526)	(56,107)
OPEB
Components Of Other Comprehensive Income Loss [Line Items]
Balance at beginning of period	282	1,275
Amortization of prior service credit and net losses (gains) included in net periodic pension cost	(136)	(157)
Balance at end of period	$ 146	$ 1,118

XML

Investment in Kronos Worldwide, Inc. - Selected Financial Information of Kronos Balance Sheet (Detail) (Kronos, USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Kronos
Schedule Of Equity Method Investments [Line Items]
Current assets	$ 817.1	$ 886.2
Property and equipment, net	430.1	479.7
Investment in TiO2 joint venture	77.8	89.0
Other noncurrent assets	179.5	187.6
Total assets	1,504.5	1,642.5
Current liabilities	193.8	237.9
Long-term debt	344.7	344.7
Accrued pension and postretirement benefits	216.3	245.2
Other noncurrent liabilities	31.2	33.6
Stockholders' equity	718.5	781.1
Total liabilities and stockholders' equity	$ 1,504.5	$ 1,642.5

XML

Inventories, Net - Schedule of Inventories, Net (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 3,318	$ 3,393
Work in process	10,729	10,271
Finished products	2,777	3,199
Total	$ 16,824	$ 16,863

XML

Income Taxes - Component of Income Taxes (Parenthetical) (Detail)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Tax Disclosure [Abstract]
U.S. federal statutory income tax rate	35.00%	35.00%

XML

Other Noncurrent Liabilities - Summary of Other Noncurrent Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Other Liabilities Disclosure [Abstract]
Reserve for uncertain tax positions	$ 12,186	$ 16,832
Insurance claims and expenses	604	589
Other	886	921
Total	$ 13,676	$ 18,342

XML

Inventories, Net

3 Months Ended

Mar. 31, 2015

Inventory Disclosure [Abstract]

Inventories, Net

Note 3 - Inventories, net:

	December 31,		March 31,
	2014		2015
	(In thousands)
Raw materials	$	3,393	$	3,318
Work in process		10,271		10,729
Finished products		3,199		2,777
Total	$	16,863	$	16,824

XML

Investment in Kronos Worldwide, Inc. - Selected Financial Information of Kronos Income Statement (Detail) (Kronos, USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Kronos
Schedule Of Equity Method Investments [Line Items]
Net sales	$ 365.1	$ 420.1
Cost of sales	287.7	339.6
Income from operations	32.2	26.0
Net income	$ 18.4	$ 14.3

XML

Other Noncurrent Liabilities (Tables)

3 Months Ended

Mar. 31, 2015

Other Liabilities Disclosure [Abstract]

Summary of Other Noncurrent Liabilities

	December 31,		March 31,
	2014		2015
	(In thousands)
Reserve for uncertain tax positions	$	16,832	$	12,186
Insurance claims and expenses		589		604
Other		921		886
Total	$	18,342	$	13,676

XML

Accrued and Other Current Liabilities (Tables)

3 Months Ended

Mar. 31, 2015

Payables And Accruals [Abstract]

Schedule of Accrued and Other Current Liabilities

	December 31,		March 31,
	2014		2015
	(In thousands)
Employee benefits	$	8,278	$	4,517
Professional fees		951		1,379
Payables to affiliates		659		229
Other		1,633		1,700
Total	$	11,521	$	7,825

XML

Commitments and Contingencies - Changes in Accrued Environmental Remediation and Related Costs (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Commitments And Contingencies Disclosure [Abstract]
Balance at the beginning of the period	$ 110,015
Additions charged to expense, net	123
Payments, net	(303)
Balance at the end of the period	109,835
Amounts recognized in the Condensed Consolidated Balance Sheet at the end of the period:
Current liability	7,044	6,984
Noncurrent liability	102,791	103,031
Balance at the end of the period	$ 109,835

XML

Other Noncurrent Assets, Net - Summary of Other Noncurrent Assets (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]
Restricted cash	$ 1,420	$ 1,420
Assets held for sale	590	590
Other	135	133
Total	$ 2,145	$ 2,143

XML

Employee Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2015

Defined Benefit Pension Plans

Components of Net Periodic Defined Benefit Cost (Income)

Defined benefit plans - The components of net periodic defined benefit pension cost (income) are presented in the table below.

	Three months ended
	March 31,
	2014			2015
	(In thousands)
Interest cost	$	628		$	569
Expected return on plan assets		(852	)		(801	)
Recognized actuarial losses		232			326
Total	$	8		$	94

OPEB

Components of Net Periodic Defined Benefit Cost (Income)

Postretirement benefits - The components of net periodic postretirement benefits other than pension (OPEB) income are presented in the table below.

	Three months ended
	March 31,
	2014			2015
	(In thousands)
Interest cost	$	29		$	27
Amortization of prior service credit		(161	)		(155	)
Recognized actuarial gain		(44	)		(25	)
Total	$	(176	)	$	(153	)

XML

Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2015

Other Comprehensive Income Loss Tax [Abstract]

Schedule of Changes in Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive loss attributable to NL stockholders for the three months ended March 31, 2015 are presented in the table below.

	Three months ended
	March 31,
	2014			2015
	(In thousands)
Accumulated other comprehensive loss, net of tax:
Marketable securities:
Balance at beginning of period	$	154,169		$	47,112
Other comprehensive loss -
unrealized losses arising during the year		(83,931	)		(1,786	)
Balance at end of period	$	70,238		$	45,326
Currency translation:
Balance at beginning of period	$	(133,816	)	$	(154,173	)
Other comprehensive loss		(514	)		(12,959	)
Balance at end of period	$	(134,330	)	$	(167,132	)
Defined benefit pension plans:
Balance at beginning of period	$	(56,644	)	$	(75,260	)
Other comprehensive income -
amortization of net losses
included in net periodic pension cost		537			734
Balance at end of period	$	(56,107	)	$	(74,526	)
OPEB plans:
Balance at beginning of period	$	1,275		$	282
Other comprehensive loss -
amortization of prior service credit and net gains
included in net periodic OPEB cost		(157	)		(136	)
Balance at end of period	$	1,118		$	146
Total accumulated other comprehensive loss:
Balance at beginning of period	$	(35,016	)	$	(182,039	)
Other comprehensive loss		(84,065	)		(14,147	)
Balance at end of period	$	(119,081	)	$	(196,186	)

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Accounts and Other Receivables, Net

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Accounts and Other Receivables, Net

Note 2 - Accounts and other receivables, net:

	December 31,			March 31,
	2014			2015
	(In thousands)
Trade receivables - CompX	$	8,825		$	12,253
Accrued insurance recoveries		346			216
Other receivables		163			58
Allowance for doubtful accounts		(78	)		(86	)
Total	$	9,256		$	12,441

Accrued insurance recoveries are discussed in Note 13.

XML

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2015

Income Tax Disclosure [Abstract]

Component of Income Taxes

	Three months ended
	March 31,
	2014			2015
	(In millions)
Expected tax expense, at U.S. federal statutory income tax rate of 35%	$	1.8		$	3.1
Incremental U.S. tax and rate differences on equity in earnings		(1.0	)		(1.5	)
Adjustment to the reserve for uncertain tax positions, net		-			(3.0	)
Nontaxable income		(.3	)		(.1	)
U.S. state income taxes and other, net		.5			.1
Total	$	1.0		$	(1.4	)

Components of Comprehensive Provision for Income Taxes Allocation

	Three months ended
	March 31,
	2014			2015
	(In millions)
Comprehensive provision (benefit) for income taxes allocable to:
Net income (loss)	$	1.0		$	(1.4	)
Other comprehensive income (loss):
Marketable securities		(45.2	)		(1.0	)
Currency translation		(.3	)		(7.0	)
Pension plans		.3			.4
OPEB plans		(.1	)		(.1	)
Total	$	(44.3	)	$	(9.1	)

XML

Investment in Kronos Worldwide, Inc. - Additional Information (Detail) (Kronos, USD $) In Millions, except Per Share data, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Kronos
Schedule Of Change In Carrying Value Of Equity Investment [Line Items]
Outstanding common stock, shares	35.2	35.2
Aggregate market value	$ 445.5	$ 458.6
Quoted market price per share	$ 12.65	$ 13.02

XML

Income Taxes - Components of Comprehensive Provision for Income Taxes Allocation (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Comprehensive provision (benefit) for income taxes allocable to:
Net income (loss)	$ (1,446,000)	$ 970,000
Other comprehensive income (loss):
Currency translation	(7,000,000)	(300,000)
Total	(9,100,000)	(44,300,000)
Valhi Inc
Other comprehensive income (loss):
Marketable securities	(1,000,000)	(45,200,000)
Defined Benefit Pension Plans
Other comprehensive income (loss):
Defined benefit plans	400,000	300,000
OPEB
Other comprehensive income (loss):
Defined benefit plans	$ (100,000)	$ (100,000)

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 73,202	$ 72,560
Restricted cash and cash equivalents	3,420	3,995
Accounts and other receivables, net	12,441	9,256
Inventories, net	16,824	16,863
Prepaid expenses and other	824	792
Deferred income taxes	4,567	4,567
Total current assets	111,278	108,033
Other assets:
Marketable securities	89,544	92,131
Investment in Kronos Worldwide, Inc.	218,695	237,719
Goodwill	27,156	27,156
Other assets, net	2,145	2,143
Deferred income taxes	20	20
Total other assets	337,560	359,169
Property and equipment:
Land	5,138	5,138
Buildings	21,176	21,176
Equipment	62,832	62,264
Construction in progress	1,140	909
Property and equipment, gross	90,286	89,487
Less accumulated depreciation	56,811	55,931
Net property and equipment	33,475	33,556
Total assets	482,313	500,758
Current liabilities:
Accounts payable	5,270	6,115
Accrued and other current liabilities	7,825	11,521
Accrued environmental remediation and related costs	7,044	6,984
Income taxes	14	7
Total current liabilities	20,153	24,627
Noncurrent liabilities:
Accrued pension cost	11,760	12,242
Accrued postretirement benefits (OPEB) costs	3,210	3,341
Accrued environmental remediation and related costs	102,791	103,031
Deferred income taxes	83,145	87,725
Other	13,676	18,342
Total noncurrent liabilities	214,582	224,681
NL stockholders' equity:
Common stock	6,085	6,085
Additional paid-in capital	300,388	300,388
Retained earnings	122,630	112,588
Accumulated other comprehensive loss	(196,186)	(182,039)
Total NL stockholders' equity	232,917	237,022
Noncontrolling interest in subsidiary	14,661	14,428
Total equity	247,578	251,450
Total liabilities and equity	482,313	500,758
Commitments and contingencies (Notes 12 and 13)

XML

Accrued and Other Current Liabilities - Schedule of Accrued and Other Current Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Payables And Accruals [Abstract]
Employee benefits	$ 4,517	$ 8,278
Professional fees	1,379	951
Payables to affiliates	229	659
Other	1,700	1,633
Total	$ 7,825	$ 11,521

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net income	$ 10,357	$ 4,034
Depreciation and amortization	902	895
Deferred income taxes	3,039	369
Equity in earnings of Kronos Worldwide, Inc.	(5,605)	(4,343)
Dividends received from Kronos Worldwide, Inc.	5,283	5,283
Cash funding of benefit plans in excess of net benefit plan expense	(452)	(168)
Other, net	82	85
Change in assets and liabilities:
Accounts and other receivables, net	(3,191)	(2,628)
Inventories, net	(34)	(1,970)
Prepaid expenses and other	(31)	111
Accounts payable and accrued liabilities	(4,134)	(703)
Income taxes	7	8
Accounts with affiliates	(430)	706
Accrued environmental remediation and related costs	(180)	(409)
Other noncurrent assets and liabilities, net	(4,672)	(571)
Net cash provided by operating activities	941	699
Cash flows from investing activities:
Capital expenditures	(796)	(752)
Change in restricted cash equivalents, net	575	99
Proceeds from the sale of marketable securities	255
Purchase of marketable securities	(251)
Net cash used in investing activities	(217)	(653)
Cash flows from financing activities -
distributions to noncontrolling interests in subsidiary	(82)	(82)
Cash and cash equivalents - net change from:
Operating, investing and financing activities	642	(36)
Cash and cash equivalents at beginning of period	72,560	52,609
Cash and cash equivalents at end of period	73,202	52,573
Cash paid for:
Income taxes, net	$ 584	$ (53)

XML

Organization and Basis of Presentation - Additional Information (Detail)	Mar. 31, 2015
Organization And Basis Of Presentation [Line Items]
Equity method ownership percentage of Kronos Worldwide, Inc	30.00%
Valhi Inc
Organization And Basis Of Presentation [Line Items]
Equity method ownership percentage of Kronos Worldwide, Inc	83.00%
Contran Corporation
Organization And Basis Of Presentation [Line Items]
Equity method ownership percentage of Kronos Worldwide, Inc	93.00%
Minimum ownership required to designate board member	5.00%

XML

Organization and Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2015

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization

Organization - At March 31, 2015, Valhi, Inc.  (NYSE: VHI) held approximately 83% of our outstanding common stock and a wholly-owned subsidiary of Contran Corporation held approximately 93% of Valhi’s outstanding common stock. Substantially all of Contran’s outstanding voting stock is held by family trusts established for the benefit of Lisa K. Simmons and Serena Simmons Connelly, daughters of Harold C. Simmons, and their children (for which Ms. Lisa Simmons and Ms. Connelly are co-trustees) or is held directly by Ms. Lisa Simmons and Ms. Connelly or persons or entities related to them, including their step-mother Annette C. Simmons, the widow of Mr. Simmons.  Prior to his death in December 2013, Mr. Simmons served as sole trustee of the family trusts.  Under a voting agreement entered into by all of the voting stockholders of Contran, effective in February 2014 and as amended, the size of the board of directors of Contran was fixed at five members, Ms. Lisa Simmons, Ms. Connelly and Ms. Annette Simmons (and in the event of their death, their heirs) each has the right to designate one of the five members of the Contran board and the remaining two members of the Contran board must consist of members of Contran management. Ms. Lisa Simmons, Ms. Connelly, and Ms. Annette Simmons each serve as members of the Contran board.  The voting agreement expires in February 2017 (unless Ms. Lisa Simmons, Ms. Connelly and Ms. Annette Simmons otherwise unanimously agree), and the ability of Ms. Lisa Simmons, Ms. Connelly, and Ms. Annette Simmons to each designate one member of the Contran board is dependent upon each of their continued beneficial ownership of at least 5% of the combined voting stock of Contran.  Consequently, Ms. Lisa Simmons, Ms. Connelly and Ms. Annette Simmons may be deemed to control Contran, Valhi and us.

Basis of Presentation

Basis of presentation - Consolidated in this Quarterly Report are the results of our majority-owned subsidiary, CompX International Inc.  We also own 30% of Kronos Worldwide, Inc. (Kronos).  CompX (NYSE MKT: CIX) and Kronos (NYSE: KRO); each file periodic reports with the Securities and Exchange Commission (SEC).

The unaudited Condensed Consolidated Financial Statements contained in this Quarterly Report have been prepared on the same basis as the audited Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2014 that we filed with the SEC on March 12, 2015 (the 2014 Annual Report).  In our opinion, we have made all necessary adjustments (which include only normal recurring adjustments) in order to state fairly, in all material respects, our consolidated financial position, results of operations and cash flows as of the dates and for the periods presented.  We have condensed the Consolidated Balance Sheet and Statement of Stockholders’ Equity at December 31, 2014 contained in this Quarterly Report as compared to our audited Consolidated Financial Statements at that date, and we have omitted certain information and footnote disclosures (including those related to the Consolidated Balance Sheet at December 31, 2014) normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP).  Our results of operations for the interim period ended March 31, 2015 may not be indicative of our operating results for the full year.  The Condensed Consolidated Financial Statements contained in this Quarterly Report should be read in conjunction with our 2014 Consolidated Financial Statements contained in our 2014 Annual Report.

Unless otherwise indicated, references in this report to “NL,” “we,” “us” or “our” refer to NL Industries, Inc. and its subsidiaries and affiliate, Kronos, taken as a whole.

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Accounts and Other Receivables, Net - Schedule of Accounts Notes Loans and Financing Receivable (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Receivables [Abstract]
Accrued insurance recoveries	$ 216	$ 346
Other receivables	58	163
Total	12,441	9,256
CompX
Receivables [Abstract]
Trade receivables	12,253	8,825
Allowance for doubtful accounts	$ (86)	$ (78)

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Inventories, Net (Tables)

3 Months Ended

Mar. 31, 2015

Inventory Disclosure [Abstract]

Schedule of Inventories, Net

	December 31,		March 31,
	2014		2015
	(In thousands)
Raw materials	$	3,393	$	3,318
Work in process		10,271		10,729
Finished products		3,199		2,777
Total	$	16,863	$	16,824

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Organization and Basis of Presentation

3 Months Ended

Mar. 31, 2015

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Basis of Presentation

Note 1 - Organization and basis of presentation:

Organization - At March 31, 2015, Valhi, Inc.  (NYSE: VHI) held approximately 83% of our outstanding common stock and a wholly-owned subsidiary of Contran Corporation held approximately 93% of Valhi’s outstanding common stock. Substantially all of Contran’s outstanding voting stock is held by family trusts established for the benefit of Lisa K. Simmons and Serena Simmons Connelly, daughters of Harold C. Simmons, and their children (for which Ms. Lisa Simmons and Ms. Connelly are co-trustees) or is held directly by Ms. Lisa Simmons and Ms. Connelly or persons or entities related to them, including their step-mother Annette C. Simmons, the widow of Mr. Simmons.  Prior to his death in December 2013, Mr. Simmons served as sole trustee of the family trusts.  Under a voting agreement entered into by all of the voting stockholders of Contran, effective in February 2014 and as amended, the size of the board of directors of Contran was fixed at five members, Ms. Lisa Simmons, Ms. Connelly and Ms. Annette Simmons (and in the event of their death, their heirs) each has the right to designate one of the five members of the Contran board and the remaining two members of the Contran board must consist of members of Contran management. Ms. Lisa Simmons, Ms. Connelly, and Ms. Annette Simmons each serve as members of the Contran board.  The voting agreement expires in February 2017 (unless Ms. Lisa Simmons, Ms. Connelly and Ms. Annette Simmons otherwise unanimously agree), and the ability of Ms. Lisa Simmons, Ms. Connelly, and Ms. Annette Simmons to each designate one member of the Contran board is dependent upon each of their continued beneficial ownership of at least 5% of the combined voting stock of Contran.  Consequently, Ms. Lisa Simmons, Ms. Connelly and Ms. Annette Simmons may be deemed to control Contran, Valhi and us.

Basis of presentation - Consolidated in this Quarterly Report are the results of our majority-owned subsidiary, CompX International Inc.  We also own 30% of Kronos Worldwide, Inc. (Kronos).  CompX (NYSE MKT: CIX) and Kronos (NYSE: KRO); each file periodic reports with the Securities and Exchange Commission (SEC).

The unaudited Condensed Consolidated Financial Statements contained in this Quarterly Report have been prepared on the same basis as the audited Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2014 that we filed with the SEC on March 12, 2015 (the 2014 Annual Report).  In our opinion, we have made all necessary adjustments (which include only normal recurring adjustments) in order to state fairly, in all material respects, our consolidated financial position, results of operations and cash flows as of the dates and for the periods presented.  We have condensed the Consolidated Balance Sheet and Statement of Stockholders’ Equity at December 31, 2014 contained in this Quarterly Report as compared to our audited Consolidated Financial Statements at that date, and we have omitted certain information and footnote disclosures (including those related to the Consolidated Balance Sheet at December 31, 2014) normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP).  Our results of operations for the interim period ended March 31, 2015 may not be indicative of our operating results for the full year.  The Condensed Consolidated Financial Statements contained in this Quarterly Report should be read in conjunction with our 2014 Consolidated Financial Statements contained in our 2014 Annual Report.

Unless otherwise indicated, references in this report to “NL,” “we,” “us” or “our” refer to NL Industries, Inc. and its subsidiaries and affiliate, Kronos, taken as a whole.

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
Net sales	$ 27,891	$ 25,781
Cost of sales	19,325	18,032
Gross margin	8,566	7,749
Selling, general and administrative expense	4,866	4,461
Other operating income (expense):
Insurance recoveries	3,134	787
Other income		131
Corporate expense	(3,830)	(4,270)
Income (loss) from operations	3,004	(64)
Equity in earnings of Kronos Worldwide, Inc.	5,605	4,343
Other income:
Interest and dividend income	302	725
Income before income taxes	8,911	5,004
Income tax expense (benefit)	(1,446)	970
Net income	10,357	4,034
Noncontrolling interest in net income of subsidiary	315	279
Net income attributable to NL stockholders	$ 10,042	$ 3,755
Amounts attributable to NL stockholders:
Basic and diluted net income per share	$ 0.21	$ 0.08
Weighted average shares used in the calculation of net income per share	48,683	48,674

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Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2015

Other Comprehensive Income Loss Tax [Abstract]

Other Comprehensive Income (Loss)

Note 11 - Other comprehensive income (loss):

Changes in accumulated other comprehensive loss attributable to NL stockholders for the three months ended March 31, 2015 are presented in the table below.

	Three months ended
	March 31,
	2014			2015
	(In thousands)
Accumulated other comprehensive loss, net of tax:
Marketable securities:
Balance at beginning of period	$	154,169		$	47,112
Other comprehensive loss -
unrealized losses arising during the year		(83,931	)		(1,786	)
Balance at end of period	$	70,238		$	45,326
Currency translation:
Balance at beginning of period	$	(133,816	)	$	(154,173	)
Other comprehensive loss		(514	)		(12,959	)
Balance at end of period	$	(134,330	)	$	(167,132	)
Defined benefit pension plans:
Balance at beginning of period	$	(56,644	)	$	(75,260	)
Other comprehensive income -
amortization of net losses
included in net periodic pension cost		537			734
Balance at end of period	$	(56,107	)	$	(74,526	)
OPEB plans:
Balance at beginning of period	$	1,275		$	282
Other comprehensive loss -
amortization of prior service credit and net gains
included in net periodic OPEB cost		(157	)		(136	)
Balance at end of period	$	1,118		$	146
Total accumulated other comprehensive loss:
Balance at beginning of period	$	(35,016	)	$	(182,039	)
Other comprehensive loss		(84,065	)		(14,147	)
Balance at end of period	$	(119,081	)	$	(196,186	)

See Note 10 for amounts related to our defined benefit pension plans and OPEB plans.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 30, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Trading Symbol	NL
Entity Registrant Name	NL INDUSTRIES INC
Entity Central Index Key	0000072162
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		48,682,884

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Income Taxes

3 Months Ended

Mar. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Note 12 - Income taxes:

	Three months ended
	March 31,
	2014			2015
	(In millions)
Expected tax expense, at U.S. federal statutory income tax rate of 35%	$	1.8		$	3.1
Incremental U.S. tax and rate differences on equity in earnings		(1.0	)		(1.5	)
Adjustment to the reserve for uncertain tax positions, net		-			(3.0	)
Nontaxable income		(.3	)		(.1	)
U.S. state income taxes and other, net		.5			.1
Total	$	1.0		$	(1.4	)

	Three months ended
	March 31,
	2014			2015
	(In millions)
Comprehensive provision (benefit) for income taxes allocable to:
Net income (loss)	$	1.0		$	(1.4	)
Other comprehensive income (loss):
Marketable securities		(45.2	)		(1.0	)
Currency translation		(.3	)		(7.0	)
Pension plans		.3			.4
OPEB plans		(.1	)		(.1	)
Total	$	(44.3	)	$	(9.1	)

Tax authorities are examining certain of our U.S. and non-U.S. tax returns, including those of Kronos, and tax authorities have or may propose tax deficiencies, including penalties and interest.  We cannot guarantee these tax matters will be resolved in our favor due to the inherent uncertainties involved in settlement initiatives and court and tax proceedings.  We believe 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.

In the first quarter of 2015, we recognized a non-cash income tax benefit of $3.0 million related to the release of a portion of our reserve for uncertain tax positions due to the expiration of the applicable statute of limitations. We currently estimate that our unrecognized tax benefits will not change materially during the next twelve months.  

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Net income	$ 10,357	$ 4,034
Other comprehensive income (loss), net of tax:
Marketable securities	(1,786)	(83,931)
Currency translation	(12,959)	(514)
Total other comprehensive loss, net	(14,147)	(84,065)
Comprehensive loss	(3,790)	(80,031)
Comprehensive income attributable to noncontrolling interest	315	279
Comprehensive loss attributable to NL stockholders	(4,105)	(80,310)
Defined Benefit Pension Plans
Other comprehensive income (loss), net of tax:
Defined benefit pension plans/ Other postretirement benefit plans	734	537
OPEB
Other comprehensive income (loss), net of tax:
Defined benefit pension plans/ Other postretirement benefit plans	$ (136)	$ (157)

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Other Noncurrent Assets, Net

3 Months Ended

Mar. 31, 2015

Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]

Other Noncurrent Assets, Net

Note 6 - Other noncurrent assets, net:

	December 31,		March 31,
	2014		2015
	(In thousands)
Restricted cash	$	1,420	$	1,420
Assets held for sale		590		590
Other		133		135
Total	$	2,143	$	2,145

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Investment in Kronos Worldwide, Inc.

3 Months Ended

Mar. 31, 2015

Equity Method Investments And Joint Ventures [Abstract]

Investment in Kronos Worldwide, Inc.

Note 5 - Investment in Kronos Worldwide, Inc.:

At December 31, 2014 and March 31, 2015, we owned approximately 35.2 million shares of Kronos common stock.  At March 31, 2015, the quoted market price of Kronos’ common stock was $12.65 per share, or an aggregate market value of $445.5 million.  At December 31, 2014, the quoted market price was $13.02 per share, or an aggregate market value of $458.6 million.

The change in the carrying value of our investment in Kronos during the first three months of 2015 is summarized below.  

	Amount
	(In millions)
Balance at the beginning of the period	$	237.7
Equity in earnings of Kronos		5.6
Dividends received from Kronos		(5.3	)
Equity in Kronos' other comprehensive income:
Marketable securities		(.2	)
Currency translation		(19.9	)
Defined benefit pension plans		.8
Balance at the end of the period	$	218.7

Selected financial information of Kronos is summarized below:

	December 31,		March 31,
	2014		2015
	(In millions)
Current assets	$	886.2	$	817.1
Property and equipment, net		479.7		430.1
Investment in TiO2 joint venture		89.0		77.8
Other noncurrent assets		187.6		179.5
Total assets	$	1,642.5	$	1,504.5
Current liabilities	$	237.9	$	193.8
Long-term debt		344.7		344.7
Accrued pension and postretirement benefits		245.2		216.3
Other noncurrent liabilities		33.6		31.2
Stockholders' equity		781.1		718.5
Total liabilities and stockholders' equity	$	1,642.5	$	1,504.5

	Three months ended
	March 31,
	2014		2015
	(In millions)
Net sales	$	420.1	$	365.1
Cost of sales		339.6		287.7
Income from operations		26.0		32.2
Net income		14.3		18.4

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Accounts and Other Receivables, Net (Tables)

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Schedule of Accounts Notes Loans and Financing Receivable

	December 31,			March 31,
	2014			2015
	(In thousands)
Trade receivables - CompX	$	8,825		$	12,253
Accrued insurance recoveries		346			216
Other receivables		163			58
Allowance for doubtful accounts		(78	)		(86	)
Total	$	9,256		$	12,441

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2015

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 13 - Commitments and contingencies:

Lead pigment litigation

Our former operations included the manufacture of lead pigments for use in paint and lead-based paint.  We, other former manufacturers of lead pigments for use in paint and lead-based paint (together, the “former pigment manufacturers”), and the Lead Industries Association (LIA), which discontinued business operations in 2002, have been named as defendants in various legal proceedings seeking damages for personal injury, property damage and governmental expenditures allegedly caused by the use of lead-based paints.  Certain of these actions have been filed by or on behalf of states, counties, cities or their public housing authorities and school districts, and certain others have been asserted as class actions.  These lawsuits seek recovery under a variety of theories, including public and private nuisance, negligent product design, negligent failure to warn, strict liability, breach of warranty, conspiracy/concert of action, aiding and abetting, enterprise liability, market share or risk contribution liability, intentional tort, fraud and misrepresentation, violations of state consumer protection statutes, supplier negligence and similar claims.

The plaintiffs in these actions generally seek to impose on the defendants responsibility for lead paint abatement and health concerns associated with the use of lead-based paints, including damages for personal injury, contribution and/or indemnification for medical expenses, medical monitoring expenses and costs for educational programs.  To the extent the plaintiffs seek compensatory or punitive damages in these actions, such damages are generally unspecified.  In some cases, the damages are unspecified pursuant to the requirements of applicable state law.  A number of cases are inactive or have been dismissed or withdrawn.  Most of the remaining cases are in various pre-trial stages.  Some are on appeal following dismissal or summary judgment rulings or a trial verdict in favor of either the defendants or the plaintiffs.  

We believe that these actions are without merit, and we intend to continue to deny all allegations of wrongdoing and liability and to defend against all actions vigorously.  We do not believe it is probable that we have incurred any liability with respect to all of the lead pigment litigation cases to which we are a party, and liability to us that may result, if any, in this regard cannot be reasonably estimated, because:

— we have never settled any of the market share, intentional tort, fraud, nuisance, supplier negligence, breach of warranty, conspiracy, misrepresentation, aiding and abetting, enterprise liability, or statutory cases,

— no final, non-appealable adverse verdicts have ever been entered against us, and

— we have never ultimately been found liable with respect to any such litigation matters, including over 100 cases over a twenty-year period for which we were previously a party and for which we have been dismissed without any finding of liability.

Accordingly, we have not accrued any amounts for any of the pending lead pigment and lead-based paint litigation cases filed by or on behalf of states, counties, cities or their public housing authorities and school districts, or those asserted as class actions. In addition, we have determined that liability to us which may result, if any, cannot be reasonably estimated because there is no prior history of a loss of this nature on which an estimate could be made and there is no substantive information available upon which an estimate could be based.

In one of these lead pigment cases, in April 2000 we were served with a complaint in County of Santa Clara v. Atlantic Richfield Company, et al. (Superior Court of the State of California, County of Santa Clara, Case No. 1-00-CV-788657) brought by a number of California government entities against the former pigment manufacturers, the LIA and certain paint manufacturers.  The County of Santa Clara sought to recover compensatory damages for funds the plaintiffs have expended or will in the future expend for medical treatment, educational expenses, abatement or other costs due to exposure to, or potential exposure to, lead paint, disgorgement of profit, and punitive damages.  In July 2003, the trial judge granted defendants’ motion to dismiss all remaining claims.  Plaintiffs appealed and the intermediate appellate court reinstated public nuisance, negligence, strict liability, and fraud claims in March 2006.  A fourth amended complaint was filed in March 2011 on behalf of The People of California by the County Attorneys of Alameda, Ventura, Solano, San Mateo, Los Angeles and Santa Clara, and the City Attorneys of San Francisco, San Diego and Oakland.  That complaint alleged that the presence of lead paint created a public nuisance in each of the prosecuting jurisdictions and seeks its abatement.  In July and August 2013, the case was tried.  In January 2014, the Judge issued a judgment finding us, The Sherwin Williams Company and ConAgra Grocery Products Company jointly and severally liable for the abatement of lead paint in pre-1980 homes, and ordered the defendants to pay an aggregate $1.15 billion to the State of California to fund such abatement.  In February 2014, we filed a motion for a new trial, and in March 2014 the court denied the motion.  Subsequently in March 2014, we filed a notice of appeal with the Sixth District Court of Appeal for the State of California and the appeal is proceeding with the appellate court.  NL believes that this judgment is inconsistent with California law and is unsupported by the evidence, and we will defend vigorously against all claims.

The Santa Clara case is unusual in that this is the second time that an adverse verdict in the lead pigment litigation has been entered against NL (the first adverse verdict against NL was ultimately overturned on appeal). We have concluded that the likelihood of a loss in this case has not reached a standard of “probable” as contemplated by ASC 450, given (i) the substantive, substantial and meritorious grounds on which the adverse verdict in the Santa Clara case will be appealed, (ii) the uniqueness of the Santa Clara verdict (i.e. no final, non-appealable verdicts have ever been rendered against us, or any of the other former lead pigment manufacturers, based on the public nuisance theory of liability or otherwise), and (iii) the rejection of the public nuisance theory of liability as it relates to lead pigment matters in many other jurisdictions (no jurisdiction in which a plaintiff has asserted a public nuisance theory of liability has ever successfully been upheld).  In addition, liability that may result, if any, cannot be reasonably estimated, as NL continues to have no basis on which an estimate of liability could be made, as discussed above. However, as with any legal proceeding, there is no assurance that any appeal would be successful, and it is reasonably possible, based on the outcome of the appeals process, that NL may in the future incur some liability resulting in the recognition of a loss contingency accrual that could have a material adverse impact on our results of operations, financial position and liquidity.

New cases may continue to be filed against us.  We cannot assure you that we will not incur liability in the future in respect of any of the pending or possible litigation in view of the inherent uncertainties involved in court and jury rulings.  In the future, if new information regarding such matters becomes available to us (such as a final, non-appealable adverse verdict against us or otherwise ultimately being found liable with respect to such matters), at that time we would consider such information in evaluating any remaining cases then-pending against us as to whether it might then have become probable we have incurred liability with respect to these matters, and whether such liability, if any, could have become reasonably estimable.  The resolution of any of these cases could result in the recognition of a loss contingency accrual that could have a material adverse impact on our net income for the interim or annual period during which such liability is recognized and a material adverse impact on our consolidated financial condition and liquidity.

Environmental matters and litigation

Our operations are governed by various environmental laws and regulations.  Certain of our businesses are and have been engaged in the handling, manufacture or use of substances or compounds that may be considered toxic or hazardous within the meaning of applicable environmental laws and regulations.  As with other companies engaged in similar businesses, certain of our past and current operations and products have the potential to cause environmental or other damage.  We have implemented and continue to implement various policies and programs in an effort to minimize these risks.  Our policy is to maintain compliance with applicable environmental laws and regulations at all of our plants and to strive to improve environmental performance.  From time to time, we may be subject to environmental regulatory enforcement under U.S. and non-U.S. statutes, the resolution of which typically involves the establishment of compliance programs.  It is possible that future developments, such as stricter requirements of environmental laws and enforcement policies, could adversely affect our production, handling, use, storage, transportation, sale or disposal of such substances.  We believe that all of our facilities are in substantial compliance with applicable environmental laws.

Certain properties and facilities used in our former operations, including divested primary and secondary lead smelters and former mining locations, are the subject of civil litigation, administrative proceedings or investigations arising under federal and state environmental laws and common law.  Additionally, in connection with past operating practices, we are currently involved as a defendant, potentially responsible party (PRP) or both, pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, as amended by the Superfund Amendments and Reauthorization Act (CERCLA), and similar state laws in various governmental and private actions associated with waste disposal sites, mining locations, and facilities that we or our predecessors, our subsidiaries or their predecessors currently or previously owned, operated or used, certain of which are on the United States Environmental Protection Agency’s (EPA) Superfund National Priorities List or similar state lists.  These proceedings seek cleanup costs, damages for personal injury or property damage and/or damages for injury to natural resources.  Certain of these proceedings involve claims for substantial amounts.  Although we may be jointly and severally liable for these costs, in most cases we are only one of a number of PRPs who may also be jointly and severally liable, and among whom costs may be shared or allocated.  In addition, we are occasionally named as a party in a number of personal injury lawsuits filed in various jurisdictions alleging claims related to environmental conditions alleged to have resulted from our operations.

Obligations associated with environmental remediation and related matters are difficult to assess and estimate for numerous reasons including the:

— complexity and differing interpretations of governmental regulations,

— number of PRPs and their ability or willingness to fund such allocation of costs,

— financial capabilities of the PRPs and the allocation of costs among them,

— solvency of other PRPs,

— multiplicity of possible solutions,

— number of years of investigatory, remedial and monitoring activity required,

— uncertainty over the extent, if any, to which our former operations might have contributed to the conditions allegedly giving rise to such personal injury, property damage, natural resource and related claims, and

— number of years between former operations and notice of claims and lack of information and documents about the former operations.

In addition, the imposition of more stringent standards or requirements under environmental laws or regulations, new developments or changes regarding site cleanup costs or the allocation of costs among PRPs, solvency of other PRPs, the results of future testing and analysis undertaken with respect to certain sites or a determination that we are potentially responsible for the release of hazardous substances at other sites, could cause our expenditures to exceed our current estimates.  We cannot assure you that actual costs will not exceed accrued amounts or the upper end of the range for sites for which estimates have been made, and we cannot assure you that costs will not be incurred for sites where no estimates presently can be made.  Further, additional environmental and related matters may arise in the future.  If we were to incur any future liability, this could have a material adverse effect on our consolidated financial statements, results of operations and liquidity.

We record liabilities related to environmental remediation and related matters when estimated future expenditures are probable and reasonably estimable.  We adjust such accruals as further information becomes available to us or as circumstances change.  Unless the amounts and timing of such estimated future expenditures are fixed and reasonably determinable, we generally do not discount estimated future expenditures to their present value due to the uncertainty of the timing of the payout.  We recognize recoveries of costs from other parties, if any, as assets when their receipt is deemed probable.  At December 31, 2014 and March 31, 2015, we have not recognized any receivables for recoveries.

We do not know and cannot estimate the exact time frame over which we will make payments for our accrued environmental and related costs.  The timing of payments depends upon a number of factors, including but not limited to the timing of the actual remediation process; which in turn depends on factors outside of our control.  At each balance sheet date, we estimate the amount of our accrued environmental and related costs which we expect to pay within the next twelve months, and we classify this estimate as a current liability.  We classify the remaining accrued environmental costs as a noncurrent liability.

Changes in the accrued environmental remediation and related costs during the first three months of 2015 are as follows:

	Amount
	(In thousands)
Balance at the beginning of the period	$	110,015
Additions charged to expense, net		123
Payments, net		(303	)
Balance at the end of the period	$	109,835
Amounts recognized in the Condensed Consolidated
Balance Sheet at the end of the period:
Current liability	$	7,044
Noncurrent liability		102,791
Balance at the end of the period	$	109,835

On a quarterly basis, we evaluate the potential range of our liability for environmental remediation and related costs at sites where we have been named as a PRP or defendant, including sites for which our wholly-owned environmental management subsidiary, NL Environmental Management Services, Inc. (EMS), has contractually assumed our obligations.  At March 31, 2015, we had accrued approximately $110 million related to approximately 47 sites associated with remediation and related matters that we believe are at the present time and/or in their current phase reasonably estimable.  The upper end of the range of reasonably possible costs to us for remediation and related matters for which we believe it is possible to estimate costs is approximately $149 million, including the amount currently accrued.

We believe that it is not reasonably possible to estimate the range of costs for certain sites.  At March 31, 2015, there were approximately 5 sites for which we are not currently able to reasonably estimate a range of costs.  For these sites, generally the investigation is in the early stages, and we are unable to determine whether or not we actually had any association with the site, the nature of our responsibility, if any, for the contamination at the site and the extent of contamination at and cost to remediate the site. The timing and availability of information on these sites is dependent on events outside of our control, such as when the party alleging liability provides information to us.  At certain of these previously inactive sites, we have received general and special notices of liability from the EPA and/or state agencies alleging that we, sometimes with other PRPs, are liable for past and future costs of remediating environmental contamination allegedly caused by former operations.  These notifications may assert that we, along with any other alleged PRPs, are liable for past and/or future clean-up costs.  As further information becomes available to us for any of these sites, which would allow us to estimate a range of costs, we would at that time adjust our accruals.  Any such adjustment could result in the recognition of an accrual that would have a material effect on our consolidated financial statements, results of operations and liquidity.

Insurance coverage claims

We are involved in certain legal proceedings with a number of our former insurance carriers regarding the nature and extent of the carriers’ obligations to us under insurance policies with respect to certain lead pigment and asbestos lawsuits.  The issue of whether insurance coverage for defense costs or indemnity or both will be found to exist for our lead pigment and asbestos litigation depends upon a variety of factors and we cannot assure you that such insurance coverage will be available.

We have agreements with certain of our former insurance carriers pursuant to which the carriers reimburse us for a portion of our future lead pigment litigation defense costs, and one such carrier reimburses us for a portion of our future asbestos litigation defense costs. We are not able to determine how much we will ultimately recover from these carriers for defense costs incurred by us because of certain issues that arise regarding which defense costs qualify for reimbursement.  While we continue to seek additional insurance recoveries, we do not know if we will be successful in obtaining reimbursement for either defense costs or indemnity.  Accordingly, we recognize insurance recoveries in income only when receipt of the recovery is probable and we are able to reasonably estimate the amount of the recovery.

For a complete discussion of certain litigation involving us and certain of our former insurance carriers, refer to our 2014 Annual Report.

Other litigation

We have been named as a defendant in various lawsuits in several jurisdictions, alleging personal injuries as a result of occupational exposure primarily to products manufactured by our former operations containing asbestos, silica and/or mixed dust. In addition, some plaintiffs allege exposure to asbestos from working in various facilities previously owned and/or operated by us.  There are 166 of these types of cases pending, involving a total of approximately 712 plaintiffs. In addition, the claims of approximately 8,692 plaintiffs have been administratively dismissed or placed on the inactive docket in Ohio, Indiana and Texas state courts.  We do not expect these claims will be re-opened unless the plaintiffs meet the courts’ medical criteria for asbestos-related claims.  We have not accrued any amounts for this litigation because of the uncertainty of liability and inability to reasonably estimate the liability, if any.  To date, we have not been adjudicated liable in any of these matters. Based on information available to us, including:

· facts concerning historical operations,

· the rate of new claims,

· the number of claims from which we have been dismissed, and

· our prior experience in the defense of these matters.

We believe that the range of reasonably possible outcomes of these matters will be consistent with our historical costs (which are not material).  Furthermore, we do not expect any reasonably possible outcome would involve amounts material to our consolidated financial position, results of operations or liquidity.  We have sought and will continue to vigorously seek, dismissal and/or a finding of no liability from each claim. In addition, from time to time, we have received notices regarding asbestos or silica claims purporting to be brought against former subsidiaries, including notices provided to insurers with which we have entered into settlements extinguishing certain insurance policies.  These insurers may seek indemnification from us. For a discussion of other legal proceedings to which we are a party, refer to our 2014 Annual Report.

In addition to the litigation described above, we and our affiliate are also involved in various other environmental, contractual, product liability, patent (or intellectual property), employment and other claims and disputes incidental to present and former businesses.  In certain cases, we have insurance coverage for these items, although we do not expect additional material insurance coverage for environmental matters.

We currently believe the disposition of all of these various other claims and disputes, individually and in the aggregate, should not have a material adverse effect on our consolidated financial position, results of operations or liquidity beyond the accruals already provided.

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Other Noncurrent Liabilities

3 Months Ended

Mar. 31, 2015

Other Liabilities Disclosure [Abstract]

Other Noncurrent Liabilities

Note 9 - Other noncurrent liabilities:

	December 31,		March 31,
	2014		2015
	(In thousands)
Reserve for uncertain tax positions	$	16,832	$	12,186
Insurance claims and expenses		589		604
Other		921		886
Total	$	18,342	$	13,676

Our reserve for uncertain tax positions is discussed in Note 12.

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Accrued and Other Current Liabilities

3 Months Ended

Mar. 31, 2015

Payables And Accruals [Abstract]

Accrued and Other Current Liabilities

Note 7 - Accrued and other current liabilities:

	December 31,		March 31,
	2014		2015
	(In thousands)
Employee benefits	$	8,278	$	4,517
Professional fees		951		1,379
Payables to affiliates		659		229
Other		1,633		1,700
Total	$	11,521	$	7,825

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Long-Term Debt

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Long-Term debt

Note 8 - Long-term debt:

During the first three months of 2015, we had no borrowings under our promissory note with Valhi, and at March 31, 2015, the full $40 million was available for borrowing under this facility.  The amount of any such loan Valhi would make to us is at Valhi’s discretion.

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Employee Benefit Plans

3 Months Ended

Mar. 31, 2015

Compensation And Retirement Disclosure [Abstract]

Employee Benefit Plans

Note 10 - Employee benefit plans:

Defined benefit plans - The components of net periodic defined benefit pension cost (income) are presented in the table below.

	Three months ended
	March 31,
	2014			2015
	(In thousands)
Interest cost	$	628		$	569
Expected return on plan assets		(852	)		(801	)
Recognized actuarial losses		232			326
Total	$	8		$	94

Postretirement benefits - The components of net periodic postretirement benefits other than pension (OPEB) income are presented in the table below.

	Three months ended
	March 31,
	2014			2015
	(In thousands)
Interest cost	$	29		$	27
Amortization of prior service credit		(161	)		(155	)
Recognized actuarial gain		(44	)		(25	)
Total	$	(176	)	$	(153	)

Contributions - We currently expect our 2015 contributions to our defined benefit pension plans and other postretirement plans to be approximately $1.3 million.

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Financial Instruments and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Summary of Financial Instruments

The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure at December 31, 2014 and March 31, 2015:

	December 31, 2014				March 31, 2015
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
	(In thousands)
Cash, cash equivalents and restricted cash	$	77,975	$	77,975	$	78,042	$	78,042
Noncontrolling interest in CompX common stock		14,428		19,936		14,661		18,733
NL stockholders' equity		237,022		418,673		232,917		377,292

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Income Taxes - Component of Income Taxes (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Tax Disclosure [Abstract]
Expected tax expense, at U.S. federal statutory income tax rate of 35%	$ 3,100,000	$ 1,800,000
Incremental U.S. tax and rate differences on equity in earnings	(1,500,000)	(1,000,000)
Adjustment to the reserve for uncertain tax positions, net	(3,000,000)
Nontaxable income	(100,000)	(300,000)
U.S. state income taxes and other, net	100,000	500,000
Total	$ (1,446,000)	$ 970,000

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Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2015

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Pronouncements

Note 15 – Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606).  This standard replaces existing revenue recognition guidance, which in many cases was tailored for specific industries, with a uniform accounting standard applicable to all industries and transactions.  The new standard is effective for us beginning in the first quarter of 2017.  Entities may elect to adopt ASU No. 2014-09 retrospectively for all periods for all contracts and transactions which occurred during the period (with a few exceptions for practical expediency) or retrospectively with a cumulative effect recognized as of the date of adoption.  ASU No. 2014-09 is a fundamental rewriting of existing GAAP with respect to revenue recognition, and we are still evaluating the effect the standard will have on our Consolidated Financial Statements.  In addition, we have not yet determined the method we will use to adopt the standard.

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Investment in Kronos Worldwide, Inc. (Tables)

3 Months Ended

Mar. 31, 2015

Equity Method Investments And Joint Ventures [Abstract]

Changes in Carrying Value of Investment

The change in the carrying value of our investment in Kronos during the first three months of 2015 is summarized below.  

	Amount
	(In millions)
Balance at the beginning of the period	$	237.7
Equity in earnings of Kronos		5.6
Dividends received from Kronos		(5.3	)
Equity in Kronos' other comprehensive income:
Marketable securities		(.2	)
Currency translation		(19.9	)
Defined benefit pension plans		.8
Balance at the end of the period	$	218.7

Selected Financial Information of Kronos Balance Sheet

Selected financial information of Kronos is summarized below:

	December 31,		March 31,
	2014		2015
	(In millions)
Current assets	$	886.2	$	817.1
Property and equipment, net		479.7		430.1
Investment in TiO2 joint venture		89.0		77.8
Other noncurrent assets		187.6		179.5
Total assets	$	1,642.5	$	1,504.5
Current liabilities	$	237.9	$	193.8
Long-term debt		344.7		344.7
Accrued pension and postretirement benefits		245.2		216.3
Other noncurrent liabilities		33.6		31.2
Stockholders' equity		781.1		718.5
Total liabilities and stockholders' equity	$	1,642.5	$	1,504.5

Selected Financial Information of Kronos Income Statement

	Three months ended
	March 31,
	2014		2015
	(In millions)
Net sales	$	420.1	$	365.1
Cost of sales		339.6		287.7
Income from operations		26.0		32.2
Net income		14.3		18.4

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Employee Benefit Plans - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Compensation And Retirement Disclosure [Abstract]
Expected contribution for defined benefit plans and other postretirement plans in current fiscal year	$ 1.3

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Investment in Kronos Worldwide, Inc. - Changes in Carrying Value of Investment (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014	Dec. 31, 2013
Balance at the beginning of the period	$ 237,719
Equity in earnings of Kronos	5,605	4,343
Dividends received from Kronos	(5,283)	(5,283)
Other comprehensive income (loss), net of tax:
Marketable securities	45,326	70,238	47,112	154,169
Currency translation	(12,959)	(514)
Balance at the end of the period	218,695
Defined Benefit Pension Plans
Other comprehensive income (loss), net of tax:
Defined benefit pension plans/ Other postretirement benefit plans	734	537
Kronos
Balance at the beginning of the period	237,700
Equity in earnings of Kronos	5,600
Dividends received from Kronos	(5,300)
Other comprehensive income (loss), net of tax:
Marketable securities	(200)
Currency translation	(19,900)
Balance at the end of the period	218,700
Kronos | Defined Benefit Pension Plans
Other comprehensive income (loss), net of tax:
Defined benefit pension plans/ Other postretirement benefit plans	$ 800

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CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (USD $) In Thousands	Total	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive loss	Noncontrolling interest in subsidiary
Beginning Balance at Dec. 31, 2014	$ 251,450	$ 6,085	$ 300,388	$ 112,588	$ (182,039)	$ 14,428
Net income	10,357			10,042		315
Other comprehensive loss, net of tax	(14,147)				(14,147)
Dividends	(82)					(82)
Ending Balance at Mar. 31, 2015	$ 247,578	$ 6,085	$ 300,388	$ 122,630	$ (196,186)	$ 14,661

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Marketable Securities

3 Months Ended

Mar. 31, 2015

Investments Debt And Equity Securities [Abstract]

Marketable Securities

Note 4 - Marketable securities:

	Fair value measurement level	Market value		Cost basis		Unrealized gain
		(In thousands)
December 31, 2014
Valhi common stock	1	$	92,131	$	24,347	$	67,784
March 31, 2015
Valhi common stock	1	$	89,544	$	24,347	$	65,197

At December 31, 2014 and March 31, 2015, we held approximately 14.4 million shares of common stock of our immediate parent company, Valhi.  See Note 1.  We account for our investment in Valhi common stock as available-for-sale marketable equity securities and any unrealized gains or losses on the securities are recognized through other comprehensive income, net of deferred income taxes.  Our shares of Valhi common stock are carried at fair value based on quoted market prices, representing a Level 1 input within the fair value hierarchy.  At December 31, 2014 and March 31, 2015, the quoted per share market price of Valhi common stock was $6.41 and $6.23, respectively.

The Valhi common stock we own is subject to the restrictions on resale pursuant to certain provisions of the SEC Rule 144.  In addition, as a majority-owned subsidiary of Valhi, we cannot vote our shares of Valhi common stock under Delaware General Corporation Law, but we do receive dividends from Valhi on these shares, when declared and paid.

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Other Noncurrent Assets, Net (Tables)

3 Months Ended

Mar. 31, 2015

Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]

Summary of Other Noncurrent Assets

	December 31,		March 31,
	2014		2015
	(In thousands)
Restricted cash	$	1,420	$	1,420
Assets held for sale		590		590
Other		133		135
Total	$	2,143	$	2,145

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Marketable Securities - Schedule of Marketable Securities (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Schedule Of Available For Sale Securities [Line Items]
Market value	$ 89,544	$ 92,131
Level 1 | Valhi Inc | Affiliated Entity | Common stock
Schedule Of Available For Sale Securities [Line Items]
Market value	89,544	92,131
Cost basis	24,347	24,347
Unrealized gain	$ 65,197	$ 67,784

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Financial Instruments and Fair Value Measurements

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Financial Instruments and Fair Value Measurements

Note 14 - Financial instruments and fair value measurements:

See Note 4 for information on how we determine fair value of our marketable securities.

The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure at December 31, 2014 and March 31, 2015:

	December 31, 2014				March 31, 2015
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
	(In thousands)
Cash, cash equivalents and restricted cash	$	77,975	$	77,975	$	78,042	$	78,042
Noncontrolling interest in CompX common stock		14,428		19,936		14,661		18,733
NL stockholders' equity		237,022		418,673		232,917		377,292

The fair value of our noncontrolling interest in CompX and NL stockholder’s equity is based upon quoted market prices at each balance sheet date, which represent Level 1.  Due to their near-term maturities, the carrying amounts of accounts receivable and accounts payable are considered equivalent to fair value.