Investment in Kronos Worldwide, Inc.

3 Months Ended

Mar. 31, 2024

Investment in Kronos Worldwide, Inc.

Investment in Kronos Worldwide, Inc.

Note 5 – Investment in Kronos Worldwide, Inc.:

At December 31, 2023 and March 31, 2024, we owned approximately 35.2 million shares of Kronos common stock. At March 31, 2024, the quoted market price of Kronos’ common stock was $11.80 per share, or an aggregate market value of $415.6 million. At December 31, 2023, the quoted market price was $9.94 per share, or an aggregate market value of $350.1 million.

The change in the carrying value of our investment in Kronos during the first three months of 2024 is summarized below.

	Amount
	(In millions)
Balance at the beginning of the period	$	247.6
Equity in earnings of Kronos		2.5
Dividends received from Kronos		(6.7)
Equity in Kronos' other comprehensive income (loss):
Currency translation		(6.3)
Defined benefit pension plans		.1
Balance at the end of the period	$	237.2

Selected financial information of Kronos is summarized below:

	December 31,		March 31,
	2023		2024
	(In millions)
Current assets	$	1,117.4	$	984.7
Property and equipment, net		482.9		461.6
Investment in TiO2 joint venture		111.0		108.7
Other noncurrent assets		126.7		124.4
Total assets	$	1,838.0	$	1,679.4
Current liabilities	$	370.8	$	267.9
Long-term debt		440.9		426.9
Accrued pension costs		150.0		143.6
Other noncurrent liabilities		68.0		66.6
Stockholders’ equity		808.3		774.4
Total liabilities and stockholders’ equity	$	1,838.0	$	1,679.4

	Three months ended
	March 31,
	2023		2024
	(In millions)
Net sales	$	426.3	$	478.8
Cost of sales		395.5		407.3
Income (loss) from operations		(18.3)		19.5
Income tax expense (benefit)		(6.9)		3.5
Net income (loss)		(15.2)		8.1