Quarterly Results of Operations

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results of Operations

Note 21 - Quarterly results of operations (unaudited):

	Quarter ended
	March 31			June 30			Sept. 30			Dec. 31
	(In thousands, except per share data)
Year ended December 31, 2013
Net sales	$	21,453		$	24,039		$	24,209		$	22,344
Gross margin		6,020			7,610			7,514			6,430
Net income (loss)		(1,998	)		(14,018	)		(5,684	)		(32,843	)
Net loss attributable to NL stockholders		(2,118	)		(14,255	)		(5,940	)		(33,020	)
Loss per common share attributable to NL stockholders	$	(0.04	)	$	(0.29	)	$	(0.12	)	$	(0.68	)
Year ended December 31, 2014
Net sales	$	25,781		$	26,848		$	26,473		$	24,744
Gross margin		7,749			8,613			8,142			7,744
Net income (loss)		4,034			5,806			14,180			5,610
Net loss attributable to NL stockholders		3,755			5,472			13,889			5,383
Loss per common share attributable to NL stockholders	$	0.08		$	0.11		$	0.29		$	0.11

We recognized the following amounts during 2013:

· aggregate pre-tax income of $9.4 million ($.6 million, $.9 million, $2.2 million, and $5.7 million in the first, second, third, and fourth quarter, respectively), related to insurance recoveries, see Note 18,

· $6.8 million ($4.5 million net of tax) charge included in our equity in net loss of Kronos related to Kronos’ third quarter litigation settlement charge.

· an aggregate charge of $1.8 million ($1.1 million net of tax) included in our equity in net loss of Kronos related to Kronos’ voluntary prepayments of its term loan ($290 million principal amount in the first quarter and the remaining $100 million outstanding in the third quarter) consisting of the write-off of original issue discount costs and deferred financing costs associated with such prepayments.

· An aggregate charge of $6.3 million ($4.1 million net of tax) included in our equity in net loss of Kronos related to Kronos’ unabsorbed fixed production and other costs as a result of its Canadian plant lockout in the third and fourth quarters as well as a pension curtailment charge and severance and other back-to-work expenses associated with reaching terms of the new Canadian collective bargaining agreement.  Approximately $1.6 ($1.1 million net of tax) million of the costs (primarily related to unabsorbed fixed production costs) related to the third quarter of 2013 with the remaining costs recognized in the fourth quarter of 2013.

We recognized the following amounts during 2014:

· aggregate pre-tax income of $10.4 million ($.8 million, $.4 million, $8.8 million, and $.4 million in the first, second, third, and fourth quarter, respectively), related to insurance recoveries, see Note 18,

· income of $.02 per share, net of income taxes, included in our equity in Kronos related to a net reduction of Kronos’ reserve for uncertain tax positions recognized in the second quarter of 2014.

The sum of the quarterly per share amounts may not equal the annual per share amounts due to relative changes in the weighted average number of shares used in the per share computations.