Investment in Kronos Worldwide, Inc.

9 Months Ended

Sep. 30, 2023

Investment in Kronos Worldwide, Inc.

Investment in Kronos Worldwide, Inc.

Note 5 – Investment in Kronos Worldwide, Inc.:

At December 31, 2022 and September 30, 2023, we owned approximately 35.2 million shares of Kronos common stock. At September 30, 2023, the quoted market price of Kronos’ common stock was $7.75 per share, or an aggregate market value of $272.9 million. At December 31, 2022, the quoted market price was $9.40 per share, or an aggregate market value of $331.1 million.

The change in the carrying value of our investment in Kronos during the first nine months of 2023 is summarized below.

	Amount
	(In millions)
Balance at the beginning of the period	$	292.2
Equity in losses of Kronos		(13.4)
Dividends received from Kronos		(20.1)
Equity in Kronos' other comprehensive income (loss):
Currency translation		(4.3)
Defined benefit pension plans		.7
Other		.1
Balance at the end of the period	$	255.2

Selected financial information of Kronos is summarized below:

	December 31,		September 30,
	2022		2023
	(In millions)
Current assets	$	1,242.2	$	999.7
Property and equipment, net		484.5		476.7
Investment in TiO2 joint venture		112.9		115.7
Other noncurrent assets		94.8		123.8
Total assets	$	1,934.4	$	1,715.9
Current liabilities	$	326.7	$	256.2
Long-term debt		424.1		422.5
Accrued pension costs		128.6		122.3
Other noncurrent liabilities		97.8		81.7
Stockholders’ equity		957.2		833.2
Total liabilities and stockholders’ equity	$	1,934.4	$	1,715.9

	Three months ended				Nine months ended
	September 30,				September 30,
	2022		2023		2022		2023
	(In millions)
Net sales	$	459.6	$	396.9	$	1,587.8	$	1,266.4
Cost of sales		375.6		362.5		1,234.0		1,157.1
Income (loss) from operations		30.8		(25.3)		179.3		(50.3)
Income tax expense (benefit)		1.2		(8.7)		34.3		(19.7)
Net income (loss)		21.0		(20.4)		124.4		(43.8)