Marketable Securities

9 Months Ended

Sep. 30, 2018

Investments Debt And Equity Securities [Abstract]

Note 4 - Marketable securities:

Our marketable securities consist of investments in the publicly-traded shares of related parties: Valhi, NL and CompX International Inc. NL owns the majority of CompX’s outstanding common stock. All of our marketable securities are accounted for as available-for-sale securities, which are carried at fair value using quoted market prices in active markets for each marketable security. Prior to 2018, any unrealized gains or losses on the securities were recognized through other comprehensive income, net of deferred income taxes. Beginning on January 1, 2018 with the adoption of Accounting Standards Update (“ASU”) 2016-01, all of our marketable equity securities will continue to be carried at fair value as noted above, but any unrealized gains or losses on the securities are now recognized in Marketable equity securities on our Condensed Consolidated Statements of Income. The fair value of our equity securities represent a Level 1 input within the fair value hierarchy. See Note 14.

	Fair value
	measurement	Market		Cost
Marketable security	level	value		basis		Unrealized gain
		(In millions)
December 31, 2017:
Valhi common stock	1	$	10.6	$	3.2	$	7.4
NL and CompX common stocks	1		.1		.1		-
Total		$	10.7	$	3.3	$	7.4

September 30, 2018:
Valhi common stock	1	$	3.9	$	3.2	$	.7
NL and CompX common stocks	1		.1		.1		-
Total		$	4.0	$	3.3	$	.7

At December 31, 2017 and September 30, 2018, we held approximately 1.7 million shares of Valhi’s common stock. We also held a nominal number of shares of CompX and NL common stocks. At December 31, 2017 and September 30, 2018, the quoted per share market price of Valhi’s common stock was $6.17 and $2.28, respectively. During the first nine months of 2018 we recognized a loss of $6.7 million related to the aggregate net change in market value of our marketable equity securities during such period.

The Valhi, CompX and NL common stocks we own are subject to the restrictions on resale pursuant to certain provisions of 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.