Investment in Kronos Worldwide, Inc.

9 Months Ended

Sep. 30, 2012

Investment in Kronos Worldwide, Inc.

Note 5—Investment in Kronos Worldwide, Inc.:

At December 31, 2011 and September 30, 2012, we owned approximately 35.2 million shares of Kronos common stock. At September 30, 2012, the quoted market price of Kronos’ common stock was $14.94 per share, or an aggregate market value of $526.2 million. At December 31, 2011, the quoted market price was $18.04 per share, or an aggregate market value of $635.3 million.

The change in the carrying value of our investment in Kronos during the first nine months of 2012 is summarized below:

	Amount
	(In millions)
Balance at the beginning of the period	$	281.3
Equity in earnings of Kronos		72.0
Dividends received from Kronos		(15.8	)
Other, principally equity in other comprehensive income items of Kronos		1.9
Balance at the end of the period	$	339.4

Selected financial information of Kronos is summarized below:

	December 31, 2011		September 30, 2012
	(In millions)
Current assets	$	865.0	$	1,054.6
Property and equipment, net		485.5		491.4
Investment in TiO2  joint venture		89.2		119.3
Other noncurrent assets		384.2		370.9
Total assets	$	1,823.9	$	2,036.2
Current liabilities	$	328.0	$	305.5
Long-term debt		362.9		416.1
Accrued pension and postretirement benefits		140.3		136.0
Other noncurrent liabilities		68.4		63.0
Stockholders’ equity		924.3		1,115.6
Total liabilities and stockholders’ equity	$	1,823.9	$	2,036.2

	Three months ended September 30,				Nine months ended September 30,
	2011		2012		2011		2012
	(In millions)				(In millions)
Net sales	$	548.0	$	472.9	$	1,505.9	$	1,579.5
Cost of sales		337.1		386.9		951.6		1,068.7
Income from operations		156.6		38.5		403.2		358.5
Net income		85.9		35.2		235.2		236.6