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Marketable Securities
 9 Months Ended
Sep. 30, 2013
Marketable securities

Note 5 - Marketable securities:

 

 

 

Fair value
measurement
level

  

Market
value

 

  

Cost
basis

 

  

Unrealized
gains

 

 

 

  

(In thousands)

 

December 31, 2012:

 

  

 

 

 

  

 

 

 

  

 

 

 

Noncurrent assets

 

  

 

 

 

  

 

 

 

  

 

 

 

Valhi common stock

  1

  

$

  179,662

  

  

$

  24,347

  

  

$

  155,315

  

 

 

  

 

 

 

  

 

 

 

  

 

 

 

September 30, 2013:

 

  

 

 

 

  

 

 

 

  

 

 

 

Noncurrent assets

 

  

 

 

 

  

 

 

 

  

 

 

 

Valhi common stock

  1

  

$

  286,884

  

  

$

  24,347

  

  

$

  262,537

  

At December 31, 2012 and September 30, 2013, we held approximately 14.4 million shares of Valhi’s common stock with a market price of $12.50 and $19.96 per share, respectively. Contran, Mr. Harold Simmons and persons and other entities related to Mr. Simmons own a majority of Valhi’s outstanding common stock. We account for our investment in Valhi common stock as available-for-sale marketable equity securities and any unrealized gains or losses on the securities are recognized through other comprehensive income, net of deferred income taxes. Our shares of Valhi common stock are carried at fair value based on quoted market prices, representing a Level 1 input within the fair value hierarchy.

The Valhi common stock we own is subject to the restrictions on resale pursuant to certain provisions of the SEC Rule 144. In addition, as a majority-owned subsidiary of Valhi, we cannot vote our shares of Valhi common stock under Delaware Corporation Law, but we do receive dividends from Valhi on these shares, when declared and paid.