Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2013

Change in Accrued Environmental Remediation and Related Costs

The table below presents a summary of the activity in our accrued environmental costs during the past three years. The amount charged to expense is included in corporate expense on our Consolidated Statements of Operations.

	Years ended December 31,
	2011			2012			2013
	(In millions)
Balance at the beginning of the year	$	42.3		$	43.2		$	50.2
Additions charged to expense, net		11.3			15.0			69.0
Acquired		—			—			7.0
Payments, net		(10.4	)		(8.1	)		(3.4	)
Changes in currency exchange rates		—			.1			(.1	)
Balance at the end of the year	$	43.2		$	50.2		$	122.7
Amounts recognized in our Consolidated Balance Sheet at the end of the year:
Current liabilities	$	8.6		$	7.6		$	9.1
Noncurrent liabilities		34.6			42.6			113.6
Total	$	43.2		$	50.2		$	122.7

Approximate Percentage of TiO2 Sales by Volume for Segments

Concentrations of credit risk—Sales of TiO₂ accounted for approximately 92% of our Chemicals Segment’s sales in 2011, and 90% in each of 2012 and 2013. The remaining sales result from the mining and sale of ilmenite ore (a raw material used in the sulfate pigment production process), and the manufacture and sale of iron-based water treatment chemicals and certain titanium chemical products (derived from co-products of the TiO₂ production processes). TiO₂ is generally sold to the paint, plastics and paper industries. Such markets are generally considered “quality-of-life” markets whose demand for TiO₂ is influenced by the relative economic well-being of the various geographic regions. Our Chemicals Segment sells TiO₂ to over 4,000 customers, with the top ten customers approximating 30% of net sales in 2011, 34% in each of 2012 and 2013. We did not have sales to a single customer comprising 10% or more of our net sales in 2011. In each of 2012 and 2013, one customer, Behr Process Corporation, accounted for approximately 10% of our Chemicals Segment’s net sales. The table below shows the approximate percentage of our TiO₂ sales by volume for our significant markets, Europe and North America, for the last three years.

	2011	2012	2013
Europe	53%	47%	49%
North America	32%	35%	33%

Future Minimum Payments Under Noncancellable Operating Leases

We also lease various other manufacturing facilities and equipment. Some of the leases contain purchase and/or various term renewal options at fair market and fair rental values, respectively. In most cases we expect that, in the normal course of business, such leases will be renewed or replaced by other leases. Net rent expense attributable to continuing operations approximated $13.3 million in 2011, $16.3 million in 2012 and $15.8 million in 2013. At December 31, 2013, future minimum payments under non-cancellable operating leases having an initial or remaining term of more than one year were as follows:

Years ending December 31,	Amount
	(In millions)
2014	$	12.5
2015		10.4
2016		5.1
2017		3.6
2018		3.2
2019 and thereafter		23.4
Total(1)	$	58.2

⁽¹⁾ Approximately $18 million of the $58.2 million aggregate future minimum rental commitments at December 31, 2013 relates to Kronos’ Leverkusen facility lease discussed above. The minimum commitment amounts for such lease included in the table above for each year through the 2050 expiration of the lease are based upon the current annual rental rate as of December 31, 2013. As discussed above, any change in the rent is based solely on negotiations between Bayer and Kronos, and any such change in the rent is deemed “contingent rentals” under GAAP which is excluded from the future minimum lease payments disclosed above.