VALHI INC DE

In addition to the matters discussed below, refer to Note 16 to our Condensed Consolidated Financial Statements, our June 30, 2024 Quarterly Report on Form 10-Q and our 2023 Annual Report for descriptions of certain legal proceedings.* *

Gowanus Canal Superfund Site.In October 2024, NL was served inBrooklyn Union Gas Co. v. Consolidated Edison Co*. of New York,* et al. (United States District Court for the Eastern District of New York, Case No. 1:24-cv-06993). This complaint asserts claims under CERCLA and New York law against NL and a number of other private parties, federal and state agencies, and agencies of the City of New York. The plaintiff, a former gas manufacturer, seeks to recover a portion of investigation and remediation costs it allegedly incurred to address contamination at the Gowanus Canal Superfund Site. NL intends to deny liability and will vigorously defend against all claims.

Raritan Bay Slag Superfund Site.On September 4, 2024, the United States of America, on behalf of several agencies of the United States, joined by the New Jersey Department of Environmental Protection (“NJDEP”), the Commissioner of the NJDEP, and the Administrator of the New Jersey Spill Compensation Fund, filed a complaint and concurrently lodged a proposed consent decree with the United States District Court for the District of New Jersey in a lawsuit captionedUnited States of America, et al. v. NL Industries, Inc., et al.(Civil Action No. 3:24-cv-08946). The proposed consent decree requires the United States Army Corps of Engineers (and other federal agencies), the State of New Jersey, the Township of Old Bridge, NL, and twenty-two other private companies to pay a total of $151.1 million, plus interest, to resolve all federal and state law claims for past and future response costs under CERCLA and the NJ Spill Act, including natural resource damages, contribution, and indemnification, relating to the Raritan Bay Slag Superfund Site (“the RBS Site”). If approved by the court, the proposed consent decree will be a global settlement of all such claims relating to the RBS Site, including all the claims asserted by NL and other settling parties inNL Industries, Inc. v. Old Bridge Township, et al. (United States District Court for the District of New Jersey, Civil Action No. 3:13-cv-03943). Under the terms of the proposed consent decree, NL has agreed to pay $56.1 million, plus interest, toward the global settlement. NL has agreed to a structured settlement with $35 million, plus interest, due within 7 business days of judicial approval of the consent decree. Two additional payments of $10.55 million each, plus interest, will be due 6 months and 12 months, respectively, after the date of the initial payment. Of NL’s $56.1 million payment obligation, NL expects to recover $9.57 million from the twenty-two other private companies as part of the global settlement. All monetary obligations of NL in the proposed consent decree have previously been accrued. The consent decree is contingent upon judicial approval, which may be provided following notice and public comment.