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Business Segment Information
 6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Business Segment Information

Note 2—Business segment information:

 

Business segment

  

Entity

  

% controlled at
June 30, 2018

 

Chemicals

  

Kronos

  

 80

% 

Component products

  

CompX

  

 87

% 

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
June 30,

 

 

Six months ended
June 30,

 

 

2017

 

 

2018

 

 

2017

 

 

2018

 

 

(unaudited)

 

 

(In millions)

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chemicals

$

441.4

 

 

$

471.8

 

 

$

811.2

 

 

$

902.2

 

Component products

 

30.1

 

 

 

32.4

 

 

 

60.0

 

 

 

60.8

 

Real estate management and development

 

10.3

 

 

 

6.0

 

 

 

15.9

 

 

 

13.2

 

Total net sales

$

481.8

 

 

$

510.2

 

 

$

887.1

 

 

$

976.2

 

Cost of sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chemicals

$

309.6

 

 

$

300.5

 

 

$

573.8

 

 

$

556.6

 

Component products

 

20.5

 

 

 

21.2

 

 

 

40.8

 

 

 

40.1

 

Real estate management and development

 

7.9

 

 

 

4.5

 

 

 

12.1

 

 

 

10.2

 

Total cost of sales

$

338.0

 

 

$

326.2

 

 

$

626.7

 

 

$

606.9

 

Gross margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chemicals

$

131.8

 

 

$

171.3

 

 

$

237.4

 

 

$

345.6

 

Component products

 

9.6

 

 

 

11.2

 

 

 

19.2

 

 

 

20.7

 

Real estate management and development

 

2.4

 

 

 

1.5

 

 

 

3.8

 

 

 

3.0

 

Total gross margin

$

143.8

 

 

$

184.0

 

 

$

260.4

 

 

$

369.3

 

Operating income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chemicals

$

77.2

 

 

$

123.6

 

 

$

136.3

 

 

$

234.2

 

Component products

 

4.6

 

 

 

6.0

 

 

 

9.1

 

 

 

10.4

 

Real estate management and development

 

1.3

 

 

 

.4

 

 

 

1.8

 

 

 

4.2

 

Total operating income

 

83.1

 

 

 

130.0

 

 

 

147.2

 

 

 

248.8

 

General corporate items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities earnings

 

7.1

 

 

 

8.5

 

 

 

14.1

 

 

 

16.8

 

Insurance recoveries

 

—

 

 

 

.2

 

 

 

.1

 

 

 

.4

 

Gain on land sales

 

—

 

 

 

—

 

 

 

—

 

 

 

12.5

 

Other components of net periodic pension and OPEB expense

 

 

(4.3

 

)

 

 

 

(3.8

 

)

 

 

 

(8.4

 

)

 

 

 

(7.5

 

)

Litigation settlement expense

 

—

 

 

 

(62.0

)

 

 

—

 

 

 

(62.0

)

General expenses, net

 

(8.7

)

 

 

(14.9

)

 

 

(19.2

)

 

 

(29.2

)

Interest expense

 

(14.7

)

 

 

(16.0

)

 

 

(29.2

)

 

 

(31.4

)

Income from continuing operations before income taxes

 

$

 

62.5

 

 

 

$

 

42.0

 

 

 

$

 

104.6

 

 

 

$

 

148.4

 

 

 

 

 

 

 

 

 

 

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