2 unchanged sentences
Interest Rates – We are exposed to market risk from changes in interest rates, primarily related to our indebtedness and or investment in marketable debt securities.
−Removed: At December 31, 2024, our aggregate indebtedness was comprised primarily of Kronos’ fixed-rate, euro-denominated KII 9.50% Senior Secured Notes due 2029 and KII 3.75% Senior Secured Notes due 2025.
+Added: At December 31, 2025, our aggregate indebtedness was comprised primarily of Kronos’ fixed-rate, euro-denominated KII 9.50% Senior Secured Notes due 2029.
The fixed-rate debt instruments minimize earnings volatility that would result from changes in interest rates.
−Removed: The Kronos Global Revolver is a variable-rate instrument.
+Added: The Kronos Global Revolver is a variable-rate instrument, and Kronos had no borrowings outstanding at December 31, 2025.
The following table presents principal amounts and weighted average interest rates for our aggregate outstanding indebtedness at December 31, 2025.
−Removed: Information shown below for Kronos’ euro-denominated 9.50% and 3.75% Senior Secured Notes due 2029 and 2025, respectively, is presented in its U.S.
+Added: Information shown below for Kronos’ euro-denominated 9.50% Senior Secured Notes due 2029 is presented in its U.S.
dollar equivalent at December 31, 2025 (net of unamortized debt issuance costs of $6.9 million, in addition to an unamortized bond premium of $9.0 million) using an exchange rate of U.S.
1 unchanged sentence
In addition, at December 31, 2025, Kronos has a $53.7 million subordinated, unsecured term loan payable to a related party, Contran, due September 2029, and Valhi has $23.6 million outstanding on an unsecured revolving credit facility with Contran.
−Removed: See Note 9 to our Consolidated Financial Statements.
+Added: See Notes 9 and 19 to our Consolidated Financial Statements.
Indebtedness Amount
2 unchanged sentences
Kronos fixed-rate 9.50% Senior Secured Notes due 2029
−Removed: Kronos fixed-rate 3.75% Senior Secured Notes due 2025
LandWell bank note payable
Total fixed-rate indebtedness
−Removed: Variable-rate indebtedness - Kronos revolving credit facility
Currency Exchange Rates – We are exposed to market risk arising from changes in currency exchange rates as a result of manufacturing and selling our products worldwide.
−Removed: Earnings are primarily affected by fluctuations in the value of the U.S.
+Added: Earnings are primarily affected by fluctuations in the value
dollar relative to the euro, the Canadian dollar, the Norwegian krone and, to a lesser extent, the United Kingdom pound sterling and the value of the euro relative to the Norwegian krone.
8 unchanged sentences
Certain raw materials used worldwide, primarily titanium-containing feedstocks, are purchased primarily in U.S.
−Removed: dollars, while labor and other production and administrative costs are purchased primarily in local
+Added: dollars, while labor and other production and administrative costs are purchased primarily in local currencies.
Consequently, the translated U.S.
5 unchanged sentences
operations are holding non-local currency (primarily U.S.
+Added: dollars), and (iii) relative changes in the aggregate fair value of currency forward contracts held from time to time.
We periodically use currency forward contracts to manage a very nominal portion of currency exchange rate risk associated with trade receivables denominated in a currency other than the holder’s functional currency or similar exchange rate risk associated with future sales.
1 unchanged sentence
However, we may enter into such contracts in the future to manage our currency exchange rate risk.
−Removed: We are not party to any currency forward contracts at December 31, 2024.
−Removed: Also, we are subject to currency exchange rate risk associated with Kronos’ Senior Secured Notes due 2025 and 2029, as such indebtedness is denominated in euros.
−Removed: At December 31, 2024, we had the equivalent of $365.4 million outstanding under Kronos’ euro-denominated KII 9.5% Senior Secured Notes due 2029 (exclusive of unamortized bond premium and debt issuance costs) and $78.3 million outstanding under Kronos’ euro-dominated KII 3.75% Senior Secured Notes due 2025 (exclusive of unamortized debt issuance costs).
+Added: In the first quarter of 2025, Kronos entered into a currency forward contract in order to manage currency exchange rate risk associated with the maturity in September 2025 of its €75 million 3.75% Senior Secured Notes due 2025.
+Added: The contract was settled in August 2025, resulting in an overall transaction gain of $2.8 million.
+Added: See Note 19 to our Consolidated Financial Statements.
+Added: At December 31, 2025, we had no currency forward contracts outstanding.
+Added: Also, we are subject to currency exchange rate risk associated with Kronos’ Senior Secured Notes due 2029, as such indebtedness is denominated in euros.
+Added: At December 31, 2025, we had the equivalent of $503.7 million outstanding under Kronos’ euro-denominated KII 9.5% Senior Secured Notes due 2029 (exclusive of unamortized bond premium and debt issuance costs).
The potential increase in the U.S.
3 unchanged sentences
As discussed in Item 1, we generally enter into long-term supply agreements for certain of our raw material requirements.
−Removed: Many of our raw material contracts contain fixed quantities we are required to purchase, or specify a range of quantities within which we are required to purchase.
+Added: Some of our raw material contracts contain fixed quantities we are required to purchase, or specify a range of quantities within which we are required to purchase.
Raw material pricing under these agreements is generally negotiated quarterly or semi-annually depending upon the suppliers.
15 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.