Fair value measurements and financial instruments

3 Months Ended

Mar. 31, 2025

Financial instruments

Financial instruments

Note 17 – Fair value measurements and financial instruments:

The following table summarizes the valuation of our financial instruments recorded on a fair value basis as of December 31, 2024 and March 31, 2025:

	Fair Value Measurements
				Quoted		Significant
				prices in		other		Significant
				active		observable		unobservable
				markets		input		inputs
		Total		(Level 1)		(Level 2)		(Level 3)
	(In millions)
Asset (liability)
December 31, 2024:
Current marketable securities	$	1.9	$	—	$	1.9	$	—
Noncurrent marketable securities		5.7		2.6		3.1		—
Earn-out liability (See Note 18)		(4.3)		—		—		(4.3)
March 31, 2025:
Current marketable securities	$	1.9	$	—	$	1.9	$	—
Noncurrent marketable securities		5.2		2.5		2.7		—
Currency forward contract		.9		.9		—		—
Earn-out liability (See Note 18)		(4.4)		—		—		(4.4)

See Note 5 for amounts related to our marketable securities.

Currency forward contract –  In order to manage currency exchange rate risk associated with the maturity in September 2025 of Kronos’ €75 million 3.75% Senior Secured Notes due 2025, in 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 matures in September 2025. The fair value of the currency forward contract is determined using Level 1 inputs based on the currency forward rates quoted by banks or currency dealers. The estimated fair value of the currency forward contract at March 31, 2025 was $.9 million, which is recognized in accounts and other receivables, net in our Condensed Consolidated Balance Sheet with a corresponding $.9 million currency transaction gain recognized in our Condensed Consolidated Statement of Income for the three months ended March 31, 2025.

The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure:

	December 31, 2024				March 31, 2025
	Carrying		Fair		Carrying		Fair
	amount		value		amount		value
	(In millions)
Cash, cash equivalents and restricted cash equivalents	$	378.6	$	378.6	$	231.5	$	231.5
Long-term debt:
Kronos fixed rate 9.50% Senior Secured Notes due 2029		365.4		403.4		379.1		412.2
Kronos fixed rate 3.75% Senior Secured Notes due 2025		78.3		77.9		81.2		80.7
Kronos revolving credit facility		10.0		10.0		43.2		43.2
LandWell bank note payable		11.4		11.4		11.4		11.4

At March 31, 2025, the estimated market price of Kronos’ 9.50% Senior Secured Notes due 2029 was €1,085 per €1,000 principal amount, and the estimated market price of Kronos’ 3.75% Senior Secured Notes due 2025 was €994 per €1,000 principal amount. The fair values of Kronos’ Senior Secured Notes were based on quoted market prices; however, these quoted market prices represented Level 2 inputs because the markets in which the Senior Secured Notes 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. See Note 7. Due to their near-term maturities, the carrying amounts of accounts receivable and accounts payable are considered equivalent to fair value. See Notes 3 and 8.