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Marketable Securities
 12 Months Ended
Dec. 31, 2013
Marketable securities

Note 6 - 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

 

 

December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncurrent assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valhi common stock

 

1

  

 

$

252,677

 

 

$

24,347

 

 

$

228,330

 

At December 31, 2012 and 2013, we held approximately 14.4 million shares of our immediate parent company, Valhi. See Note 1.  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. At December 31, 2012 and 2013, the quoted market prices of Valhi common stock were $12.50 and $17.58 per share, respectively.  

Prior to December 2012, we held approximately 1.4 million shares, or .8%, of Titanium Metals Corporation’s (TIMET) outstanding common stock.  TIMET was also an affiliate of ours, as Contran, Mr.  Harold Simmons and persons and other entities related to Mr.  Simmons (including us) owned a majority of TIMET’s outstanding common stock.  In December 2012, we sold all of our shares of TIMET common stock for $23.9 million ($16.50 per share) pursuant to a cash tender offer by a third party, and all of our affiliates also sold their shares of TIMET common stock for the same price.  Securities transactions in 2012 consist of a $16.6 million pre-tax gain we recognized on the sale of these TIMET shares.  

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.