Investment in Kronos Worldwide, Inc.

9 Months Ended

Sep. 30, 2022

Investment in Kronos Worldwide, Inc.

Investment in Kronos Worldwide, Inc.

Note 5 – Investment in Kronos Worldwide, Inc.:

At December 31, 2021 and September 30, 2022, we owned approximately 35.2 million shares of Kronos common stock. At September 30, 2022, the quoted market price of Kronos’ common stock was $9.34 per share, or an aggregate market value of $328.9 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 nine months of 2022 is summarized below.

	Amount
	(In millions)
Balance at the beginning of the period	$	264.8
Equity in earnings of Kronos		37.9
Dividends received from Kronos		(20.1)
Equity in Kronos' other comprehensive income (loss):
Currency translation		(16.9)
Defined benefit pension plans		2.0
Other		.6
Balance at the end of the period	$	268.3

Selected financial information of Kronos is summarized below:

	December 31,		September 30,
	2021		2022
	(In millions)
Current assets	$	1,258.0	$	1,256.8
Property and equipment, net		503.4		444.7
Investment in TiO2 joint venture		101.9		110.4
Other noncurrent assets		149.5		131.0
Total assets	$	2,012.8	$	1,942.9
Current liabilities	$	288.8	$	330.2
Long-term debt		449.8		390.9
Accrued pension costs		287.4		245.7
Other noncurrent liabilities		116.6		97.2
Stockholders’ equity		870.2		878.9
Total liabilities and stockholders’ equity	$	2,012.8	$	1,942.9

	Three months ended				Nine months ended
	September 30,				September 30,
	2021		2022		2021		2022
	(In millions)
Net sales	$	499.8	$	459.6	$	1,443.4	$	1,587.8
Cost of sales		376.8		375.6		1,115.7		1,234.0
Income from operations		57.3		30.8		135.1		179.3
Income tax expense		12.1		1.2		27.3		34.3
Net income		36.0		21.0		81.3		124.4