Quarterly Results of Operations

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

Quarterly results of operations

Note 20 - Quarterly results of operations (unaudited):

	Quarter ended
	March 31		June 30			Sept. 30			Dec. 31
	(In millions, except per share data)
Year ended December 31, 2017
Net sales	$	29.9	$	30.0		$	27.0		$	25.1
Gross margin		9.7		9.5			8.2			7.4
Net income		8.8		41.6			17.8			49.6
Amounts attributable to NL stockholders:
Net income		8.3		41.2			17.5			49.1
Income per common share	$	.17	$	.85		$	.36		$	1.00
Year ended December 31, 2018
Net sales	$	28.4	$	32.4		$	30.0		$	27.4
Gross margin		9.5		11.2			9.6			7.9
Net income (loss)		14.7		(42.0	)		(14.9	)		3.1
Amounts attributable to NL stockholders:
Net income (loss)		14.2		(42.6	)		(15.4	)		2.8
Income (loss) per common share	$	.29	$	(.87	)	$	(.32	)	$	.06

 We recognized the following amounts during 2017:

• income of $37.5 million in the fourth quarter related to a non-cash deferred income tax benefit related to the revaluation of our net deferred income tax liability resulting from the reduction in the U.S. federal corporate income tax rate enacted into law on December 22, 2017 (see Note 14),

• income of $1.0 million in the first quarter, $31.1 million in the second quarter, $1.5 million in the third quarter, and $3.2 million in the fourth quarter, each net of income taxes, included in our equity in earnings of Kronos related to a non-cash deferred income tax benefit recognized as the result of the reversal of Kronos’ deferred income tax asset valuation allowance associated with its German and Belgian operations (see Note 14),

• loss of $15.1 million in the fourth quarter, net of income taxes, included in our equity in earnings of Kronos related to Kronos’ current income tax expense recognized as the result of change in the 2017 Tax Act enacted on December 22, 2017 for the one-time repatriation tax imposed on the post-1986 undistributed earnings of Kronos’ non-U.S. subsidiaries (see Note 14),

• income of $3.7 million in the fourth quarter, net of income taxes, included in our equity in earnings of Kronos related to Kronos’ non-cash deferred income tax benefit recognized as the result of the reversal of Kronos’ deferred income tax asset valuation allowance related to certain U.S. deferred income tax assets of one of Kronos’ non-U.S. subsidiaries (which subsidiary is treated as a dual resident for U.S. income tax purposes) (see Note 14),

• income of $2.2 million in the third quarter, net of income taxes, included in our equity in earnings of Kronos related to the execution and finalization of an Advanced Pricing Agreement between Canada and Germany, mostly in the third quarter (see Note 14),

• loss of $.9 million in the fourth quarter, net of income taxes, included in our equity in earnings of Kronos related to Kronos’ non-cash deferred income tax expense as a result of a change in its conclusions regarding Kronos’ permanent reinvestment assertion with respect to the post-1986 undistributed earnings of its European subsidiaries (see Note 14), and

• loss of $.9 million in the third quarter, net of income taxes, included in our equity in earnings of Kronos related to Kronos’ loss on prepayment of debt.  

We recognized the following amounts during 2018:

• loss of $49.0 million, net of income taxes, in the second quarter related to the litigation settlement expense (see Note 17);  and

• loss of $.9 million in the fourth quarter, net of income taxes, included in our equity in earnings of Kronos related to Kronos’ current income tax expense on global intangible low-tax income.

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.