Marketable Securities

9 Months Ended

Sep. 30, 2018

Investments Debt And Equity Securities [Abstract]

Marketable securities

Note 4 – Marketable securities:

Our marketable securities consist of investments in the publicly-traded shares of our immediate parent company Valhi, Inc. Prior to 2018, any unrealized gains or losses on the securities were recognized through other comprehensive income, net of deferred income taxes.  Beginning on January 1, 2018 with the adoption of Accounting Standards Update (“ASU”) 2016-01, our marketable equity securities will continue to be carried at fair value as noted below, but any unrealized gains or losses on the securities are now recognized as a component of other income included in Marketable equity securities on our Condensed Consolidated Statements of Operations. See Note 16.  

	Fair value measurement level	Market value		Cost basis		Unrealized gain
		(In thousands)
December 31, 2017
Valhi common stock	1	$	88,681	$	24,347	$	64,334
September 30, 2018
Valhi common stock	1	$	32,770	$	24,347	$	8,423

At December 31, 2017 and September 30, 2018, we held approximately 14.4 million shares of common stock of Valhi.  See Note 1.  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, 2017 and September 30, 2018, the quoted per share market price of Valhi common stock was $6.17 and $2.28, respectively.  During the first nine months of 2018 we recognized a pre-tax loss of $55.9 million related to the aggregate net change in market value of our marketable equity securities during such period.

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.