Investment in Kronos Worldwide, Inc.

6 Months Ended

Jun. 30, 2022

Investment in Kronos Worldwide, Inc.

Investment in Kronos Worldwide, Inc.

Note 5 – Investment in Kronos Worldwide, Inc.:

At December 31, 2021 and June 30, 2022, we owned approximately 35.2 million shares of Kronos common stock. At June 30, 2022, the quoted market price of Kronos’ common stock was $18.40 per share, or an aggregate market value of $648.0 million. At December 31, 2021, the quoted market price was $15.01 per share, or an aggregate market value of $528.6 million.

The change in the carrying value of our investment in Kronos during the first six months of 2022 is summarized below.

	Amount
	(In millions)
Balance at the beginning of the period	$	264.8
Equity in earnings of Kronos		31.5
Dividends received from Kronos		(13.4)
Equity in Kronos' other comprehensive income:
Currency translation		(9.0)
Defined benefit pension plans		1.4
Other		.6
Balance at the end of the period	$	275.9

Selected financial information of Kronos is summarized below:

	December 31,		June 30,
	2021		2022
	(In millions)
Current assets	$	1,258.0	$	1,247.9
Property and equipment, net		503.4		472.0
Investment in TiO2 joint venture		101.9		106.0
Other noncurrent assets		149.5		137.6
Total assets	$	2,012.8	$	1,963.5
Current liabilities	$	288.8	$	281.5
Long-term debt		449.8		415.8
Accrued pension costs		287.4		263.6
Other noncurrent liabilities		116.6		99.0
Stockholders’ equity		870.2		903.6
Total liabilities and stockholders’ equity	$	2,012.8	$	1,963.5

	Three months ended				Six months ended
	June 30,				June 30,
	2021		2022		2021		2022
	(In millions)
Net sales	$	478.6	$	565.3	$	943.6	$	1,128.2
Cost of sales		369.6		444.8		738.9		858.4
Income from operations		43.8		65.2		77.8		148.5
Income tax expense		9.2		14.8		15.2		33.1
Net income		25.7		45.9		45.3		103.4