Fair value measurements and financial instruments

12 Months Ended

Dec. 31, 2025

Fair value measurements and financial instruments

Fair value measurements and financial instruments

Note 19 – Fair value measurements and financial instruments:

See Note 6 for information on how we determine the fair value of our marketable securities.

See Note 3 for additional details related to the acquisition earn-out liability.

Currency forward contract - In order to manage currency exchange rate risk associated with our €75 million 3.75% Senior Secured Notes that matured in September 2025, during the first quarter of 2025 Kronos entered into a euro currency forward contract to purchase €25 million at an exchange rate of €1.05 per U.S. dollar. The contract was settled in August 2025 resulting in cash proceeds of $2.8 million and a currency transaction gain of $2.8 million in 2025 included in our Consolidated Statements of Operations. At December 31, 2025, Kronos had no currency forward contracts outstanding.

The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure as of December 31, 2024 and 2025:

	December 31, 2024				December 31, 2025
	Carrying		Fair		Carrying		Fair
	amount		value		amount		value
	(In millions)
Cash, cash equivalents and restricted cash equivalents	$	378.6	$	378.6	$	228.7	$	228.7
Long-term debt:
Kronos 9.50% Senior Secured Notes due 2029		365.4		403.4		503.7		469.9
Kronos 3.75% Senior Secured Notes due 2025		78.3		77.9		—		—
Kronos revolving credit facility		10.0		10.0		—		—
LandWell bank note payable		11.4		11.4		10.7		10.7

At December 31, 2025, the estimated market price of Kronos’ 9.50% Senior Secured Notes due 2029 was €937 per €1,000 principal amount. The fair value of Kronos’ 9.50% Senior Secured Notes due 2029 was based on quoted market prices; however, the quoted market price represented Level 2 inputs because the market in which the 9.50% Senior Secured Notes due 2029 trade was not active. Due to the variable interest rate, the carrying amount of Kronos’ revolving credit facility is deemed to approximate fair value. The fair value of other fixed-rate debt, which represents Level 2 inputs, is deemed to approximate carrying value. In addition, at December 31, 2025, Kronos has a $53.7 million subordinated, unsecured term loan payable to a related party, Contran, due September 2029, and Valhi has $23.6 million outstanding on an unsecured revolving credit facility with Contran. See Note 9. Due to their near-term maturities, the carrying amounts of accounts receivable and accounts payable are considered equivalent to fair value. See Notes 4 and 10.