Business Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Business Segment Information

Note 2—Business segment information:

Business segment	Entity	% controlled at September 30, 2020
Chemicals	Kronos	80	%
Component products	CompX	86	%
Real estate management and development	BMI and LandWell	63 - 77	%

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

	Three months ended						Nine months ended
	September 30,						September 30,
	2019			2020			2019			2020
	(In millions)
Net sales:
Chemicals	$	437.4		$	416.9		$	1,358.4		$	1,223.9
Component products		29.7			28.4			94.6			84.5
Real estate management and development		8.1			13.3			30.5			24.5
Total net sales	$	475.2		$	458.6		$	1,483.5		$	1,332.9
Cost of sales:
Chemicals	$	350.3		$	337.3		$	1,053.4		$	961.8
Component products		20.2			21.1			64.6			59.4
Real estate management and development		6.3			10.5			22.0			18.3
Total cost of sales	$	376.8		$	368.9		$	1,140.0		$	1,039.5
Gross margin:
Chemicals	$	87.1		$	79.6		$	305.0		$	262.1
Component products		9.5			7.3			30.0			25.1
Real estate management and development		1.8			2.8			8.5			6.2
Total gross margin	$	98.4		$	89.7		$	343.5		$	293.4
Operating income:
Chemicals	$	36.3		$	21.6		$	139.6		$	104.3
Component products		4.3			2.1			14.3			9.5
Real estate management and development		.8			5.2			13.7			25.4
Total operating income		41.4			28.9			167.6			139.2
General corporate items:
Securities earnings		2.6			.9			9.0			3.5
Insurance recoveries		.2			-			5.2			1.6
Gain on land sales		4.4			-			4.4			-
Changes in market value of Valhi common stock held by subsidiaries		(3.1	)		.7			(.1	)		(2.2	)
Other components of net periodic pension expense		(4.1	)		(5.2	)		(12.3	)		(14.9	)
Litigation settlement expense, net		.3			-			(19.3	)		-
General expenses, net		(9.5	)		(8.4	)		(28.2	)		(25.5	)
Interest expense		(10.3	)		(8.9	)		(30.7	)		(27.4	)
Income before income taxes	$	21.9		$	8.0		$	95.6		$	74.3

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. Infrastructure reimbursement and land related income is included in the determination of Real Estate Management and Development operating income. See Note 11.