Business Segment Information

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Business Segment Information

Note 2—Business segment information:

Business segment	Entity	% controlled at March 31, 2021
Chemicals	Kronos	80	%
Component products	CompX	87	%
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
	March 31,
	2020			2021
	(In millions)
Net sales:
Chemicals	$	421.0		$	465.0
Component products		32.3			35.9
Real estate management and development		6.0			8.1
Total net sales	$	459.3		$	509.0
Cost of sales:
Chemicals	$	333.3		$	369.7
Component products		21.9			24.9
Real estate management and development		4.4			5.1
Total cost of sales	$	359.6		$	399.7
Gross margin:
Chemicals	$	87.7		$	95.3
Component products		10.4			11.0
Real estate management and development		1.6			3.0
Total gross margin	$	99.7		$	109.3
Operating income:
Chemicals	$	46.8		$	37.7
Component products		5.0			5.8
Real estate management and development		19.2			7.8
Total operating income		71.0			51.3
General corporate items:
Securities earnings		1.6			.9
Insurance recoveries		1.6			-
Changes in market value of Valhi common stock held by subsidiaries		(2.4	)		1.3
Other components of net periodic pension and OPEB expense		(4.7	)		(4.3	)
General expenses, net		(8.1	)		(8.1	)
Interest expense		(9.7	)		(8.6	)
Income before income taxes	$	49.3		$	32.5

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