Financial instruments

12 Months Ended

Dec. 31, 2024

Financial instruments

Financial instruments

Note 19 – Financial instruments:

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

See Note 3 for information on how we determine fair value of our earn-out liability related to the LPC acquisition. The fair value measurement is based on significant inputs not observable in the market and therefore represents a Level 3 measurement as defined in ASC 820. Accretion of the earn-out liability was not material in 2024. There has been no other activity subsequent to Acquisition Date impacting the fair value of the acquisition earn-out liability. The fair value of the acquisition earn-out liability is included in other noncurrent liabilities on the Consolidated Balance Sheet.  

The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure as of December 31, 2023 and 2024:

	December 31, 2023				December 31, 2024
	Carrying		Fair		Carrying		Fair
	amount		value		amount		value
	(In millions)
Cash, cash equivalents and restricted cash equivalents	$	462.0	$	462.0	$	378.6	$	378.6
Long-term debt:
Kronos 9.50% Senior Secured Notes due 2029		—		—		365.4		403.4
Kronos 3.75% Senior Secured Notes due 2025		440.9		424.5		78.3		77.9
Kronos revolving credit facility		—		—		10.0		10.0
LandWell bank note payable		12.2		12.2		11.4		11.4

At December 31, 2024, the estimated market price of Kronos’ 3.75% Senior Secured Notes due 2025 was €996 per €1,000 principal amount, and the estimated market price of Kronos’ 9.50% Senior Secured Notes due 2029 was €1,101 per €1,000 principal amount. The fair values of Kronos’ 3.75% Senior Secured Notes due 2025 and Kronos’ 9.50% Senior Secured Notes due 2029 were based on quoted market prices; however, these quoted market prices represented Level 2 inputs because the markets in which the 3.75% Senior Secured Notes due 2025 and the 9.50% Senior Secured Notes due 2029 trade were 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, 2024, Kronos has a $53.7 million subordinated, unsecured term loan payable to a related party, Contran, due September 2029, and Valhi has $44.6 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.