Marketable Securities

3 Months Ended

Mar. 31, 2016

Investments Debt And Equity Securities [Abstract]

Marketable Securities

Note 4 – Marketable securities:

	Fair value measurement level	Market value		Cost basis		Unrealized loss
		(In thousands)
December 31, 2015
Valhi common stock	1	$	19,260	$	24,347	$	(5,087	)
March 31, 2016
Valhi common stock	1	$	16,960	$	24,347	$	(7,387	)

At December 31, 2015 and March 31, 2016, we held approximately 14.4 million shares of common stock 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, 2015 and March 31, 2016, the quoted per share market price of Valhi common stock was $1.34 and $1.18, respectively.

With respect to our investment in Valhi stock, our cost basis had exceeded its market value since December 2015, but we consider such decline in market price to be temporary at March 31, 2016.  As of April 19, 2016, the aggregate market value of our investment in Valhi stock exceeded our cost basis.

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 General Corporation Law, but we do receive dividends from Valhi on these shares, when declared and paid.