Note 12 - Long-term debt:

	December 31,
	2012		2013
	(In thousands)
Subsidiary debt:
CompX note payable to TIMET Finance Management Company	$	18,480	$	-
Less current maturities		1,000		-
Total long-term debt	$	17,480	$	-

NL - We have a revolving promissory note with Valhi that, as amended, allows us to borrow up to $40 million. Our borrowings from Valhi under this revolving note are unsecured bear interest at prime rate plus 2.75% with all principal due on demand, but in any event no earlier than March 31, 2015 and no later than December 31, 2015. The amount of the outstanding borrowings at any time is solely at the discretion of Valhi. See Note 16.

CompX - Prior to 2011, CompX purchased and/or cancelled certain shares of its Class A common stock from Timet Finance Management Company (TFMC) a former affiliate. We paid for the shares acquired in the form of a promissory note which, as amended, bore interest at LIBOR plus 1% and provided for quarterly principal repayments of $.3 million, with the balance due at maturity in September 2014. The promissory note was prepayable, in whole or in part, at any time at our option without penalty. In July of 2013, we prepaid the remaining outstanding principal amount of the note, plus accrued interest, without penalty. We had net repayments on the note payable of $20 million in 2011 (including $15.0 million of repayments using cash we received upon collection of our promissory note receivable discussed in Note 18), $3.8 million in 2012 and $18.5 million in 2013 (including the amount paid upon final payment). The average interest rate on the promissory note payable was 1.3% in 2011, 1.5% in 2012 and 1.3% for the year-to-date period ended July 18, 2013 (the pay-off date). We recognized interest expense of approximately $.5 million in 2011, $.3 million in 2012, and $.1 million in 2013 on this promissory note.