Business Segment Information

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Business Segment Information

Note 2—Business segment information:

Business segment	Entity	% controlled at March 31, 2015
Chemicals	Kronos	80	%
Component products	CompX	87	%
Waste management	WCS	100	%
Real estate management and development	BMI and LandWell	63% - 77	%

Our control of Kronos includes 50% we hold directly and 30% held directly by NL. We own 83% of NL. Our control of CompX is through NL. We own 63% of BMI.  Our control of LandWell includes the 27% we hold directly and 50% held by BMI.  

	Three months ended March 31,
		2014			2015
	(unaudited)
Net sales:
Chemicals	$	420.1		$	365.1
Component products		25.8			27.9
Waste management		7.0			15.0
Real estate management and development		9.5			8.1
Total net sales	$	462.4		$	416.1
Cost of sales:
Chemicals	$	340.2		$	288.2
Component products		18.0			19.3
Waste management		10.7			12.1
Real estate management and development		7.7			7.2
Total cost of sales	$	376.6		$	326.8
Gross margin:
Chemicals	$	79.9		$	76.9
Component products		7.8			8.6
Waste management		(3.7	)		2.9
Real estate management and development		1.8			.9
Total gross margin	$	85.8		$	89.3
Operating income (loss):
Chemicals	$	27.6		$	34.0
Component products		3.3			3.7
Waste management		(8.5	)		(2.9	)
Real estate management and development		.4			(.2	)
Total operating income		22.8			34.6
General corporate items:
Securities earnings		6.8			6.7
Insurance recoveries		.8			3.1
General expenses, net		(8.3	)		(8.2	)
Interest expense		(13.7	)		(14.6	)
Income before income taxes	$	8.4		$	21.6

Segment results we report may differ from amounts separately reported by our various subsidiaries and affiliates due to purchase accounting adjustments and related amortization or differences in the way we define operating income. Intersegment sales are not material.