UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 1-31763

KRONOS WORLDWIDE, INC.

(Exact name of registrant as specified in its charter)


DELAWARE		76-0294959
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

5430 LBJ Freeway, Suite 1700

Dallas, Texas 75240-2620

(Address of principal executive offices)

Registrant’s telephone number, including area code: (972) 233-1700

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock	KRO	NYSE

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

Number of shares of the registrant’s common stock, $.01 par value per share, outstanding on April 29, 2022: 115,461,627.

Table of Contents

KRONOS WORLDWIDE, INC. AND SUBSIDIARIES

INDEX


		Page number
Part I.	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets - December 31, 2021; March 31, 2022 (unaudited)	3
	Condensed Consolidated Statements of Income (unaudited) - Three months ended March 31, 2021 and 2022	5
	Condensed Consolidated Statements of Comprehensive Income (unaudited) - Three months ended March 31, 2021 and 2022	6
	Condensed Consolidated Statements of Stockholders’ Equity (unaudited) - Three months ended March 31, 2021 and 2022	7
	Condensed Consolidated Statements of Cash Flows (unaudited) - Three months ended March 31, 2021 and 2022	8
	Notes to Condensed Consolidated Financial Statements (unaudited)	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		16
Item 3.	Quantitative and Qualitative Disclosure About Market Risk		24
Item 4.	Controls and Procedures		24
Part II.	OTHER INFORMATION
Item 1A.	Risk Factors		25
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		25
Item 6.	Exhibits	26
Items 3 and 4 of Part II are omitted because there is no information to report.

Table of Contents

KRONOS WORLDWIDE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)


ASSETS	December 31,		March 31,
	2021		2022
				(unaudited)
Current assets:
Cash and cash equivalents	$	406.0	$	350.0
Restricted cash		2.1		1.8
Accounts and other receivables, net		379.1		416.4
Inventories, net		432.3		464.2
Prepaid expenses and other		38.5		47.1

Total current assets		1,258.0		1,279.5

Other assets:
Investment in TiO₂ manufacturing joint venture		101.9		105.7
Restricted cash		4.5		4.4
Marketable securities		4.2		4.3
Operating lease right-of-use assets		19.9		21.5
Deferred income taxes		106.8		101.4
Other		14.1		14.7

Total other assets		251.4		252.0

Property and equipment:
Land		43.9		43.8
Buildings		222.2		221.8
Equipment		1,122.1		1,119.8
Mining properties		129.6		133.5
Construction in progress		72.7		80.4
		1,590.5		1,599.3
Less accumulated depreciation and amortization		1,087.1		1,095.5

Net property and equipment		503.4		503.8

Total assets	$	2,012.8	$	2,035.3

Table of Contents

KRONOS WORLDWIDE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(In millions)


LIABILITIES AND STOCKHOLDERS’ EQUITY	December 31,		March 31,
	2021		2022
				(unaudited)
Current liabilities:
Current maturities of long-term debt	$	1.4	$	1.4
Accounts payable and accrued liabilities		275.1		261.0
Income taxes		12.3		18.7

Total current liabilities		288.8		281.1

Noncurrent liabilities:
Long-term debt		449.8		443.8
Accrued pension costs		287.4		282.3
Payable to affiliate - income taxes		44.7		44.7
Operating lease liabilities		15.8		17.2
Deferred income taxes		28.1		26.3
Other		28.0		26.3

Total noncurrent liabilities		853.8		840.6

SEC Form 10-Q filed by Kronos Worldwide Inc